(Sec. 102) Provides that the presumption of abuse may be rebutted only with detailed documentation of special circumstances requiring additional expenses or adjustment of current monthly total income. Includes within the calculation of debtor's monthly expenses: (1) those expenses incurred to maintain the safety of the debtor and the debtor's family from family violence as identified under the Family Violence Prevention and Services Act or other applicable Federal law; and (2) continuation of actual expenses paid by the debtor for the care and support of an elderly, chronically ill, or disabled household or non-dependent immediate family member.
Requires the debtor's counsel to: (1) reimburse the bankruptcy trustee for legal fees in prosecuting a dismissal or conversion motion if the court finds that counsel's filing under Chapter 7 was either not substantially justified, or frivolous; and (2) pay a civil penalty for the violation of certain bankruptcy rules.
Requires the court, upon motion by the victim of a crime of violence or a drug trafficking crime (or at the request of a party in interest), to dismiss a voluntary case filed by an individual debtor convicted of that crime (unless the debtor establishes that filing of the case is necessary to satisfy a claim for a domestic support obligation).
(Sec. 103) Directs the Secretary of the Treasury to report to certain congressional committees regarding the utilization of Internal Revenue standards for determining specified monthly expenses of a debtor and the impact of such standards upon debtors and the bankruptcy courts.
(Sec. 104) Revises procedural guidelines to mandate written notice to the individual consumer debtor before commencement of a case that credit counseling services approved by the United States Trustee are available.
(Sec. 105) Instructs the Director of the Executive Office for U.S. Trustees to: (1) develop a financial management training curriculum and materials to educate individual debtors on how to better manage their finances; and (2) test, evaluate, and report to the Congress on the curriculum's effectiveness.
(Sec. 106) Precludes an individual debtor from filing under Federal bankruptcy law unless the individual has received a briefing from an approved nonprofit credit counseling service prior to filing a bankruptcy petition, unless the U.S. trustee or bankruptcy administrator determines that the service for the district in which the debtor lives is not reasonably able to provide adequate services to the additional individuals who would otherwise seek credit counseling because of such requirement.
Conditions a Chapter 7 or Chapter 13 discharge in bankruptcy upon the debtor's completion of an approved instructional course concerning personal financial management.
Prohibits such counseling service from informing a credit reporting agency whether an individual debtor has received or sought personal financial management instruction. Establishes civil penalties for noncompliance.
Title II: Enhanced Consumer Protection - Subtitle A: Penalties for Abusive Creditor Practices - Cites circumstances under which the court may reduce by up to 20 percent a claim based in whole upon unsecured consumer debts if the debtor can show by clear and convincing evidence that the claim was filed by a creditor who unreasonably refused to negotiate a reasonable alternative repayment schedule proposed by an approved credit counseling agency acting on the debtor's behalf.
(Sec. 202) Modifies guidelines governing the discharge of a debtor's liability, as well as the automatic stay, to entitle an individual who is injured by the willful failure of a creditor to credit payments received to bring an action for actual damages and legal fees.
(Sec. 203) Modifies debt reaffirmation guidelines governing wholly unsecured consumer debts to mandate specified detailed disclosures and explanations to the debtor for dischargeable debt agreements.
Amends Federal criminal law to instruct the Attorney General to designate U.S. attorneys and agents of the Federal Bureau of Investigation to implement enforcement activities in addressing: (1) abusive reaffirmations of debt; and (2) materially fraudulent statements in bankruptcy schedules that are intentionally false or misleading. Directs the bankruptcy court to establish procedures for referring those cases to such U.S. attorneys and agents of the Federal Bureau of Investigation.
Subtitle B: Priority Child Support - Revises Chapter 7 priority payment guidelines to place within the first priority claim category certain claims for domestic support obligations, on the condition that funds received by a governmental unit be applied in a prescribed order.
(Sec. 213) Conditions court confirmation of a debt repayment plan under Chapters 12 (Debts of a Family Farmer) and 13 (and the subsequent discharge of debts) upon certification of debtor's full payment of all adjudicated domestic support obligations that are due after the petition filing date.
(Sec. 214) Excepts from an automatic stay specified choses-in-action pertaining to domestic support obligations proceedings including: (1) child custody or visitation; (2) dissolution of marriage; (3) domestic violence; (4) withholding of income that is property of the bankrupt estate for payment of domestic support obligations; (5) suspension of drivers' licenses and professional licenses; (6) reporting of overdue support owed by a parent to certain consumer reporting agencies; (7) interception of specified tax refunds; and (8) enforcement of medical obligations under title IV, part D (Child Support and Establishment of Paternity) of the Social Security Act.
(Sec. 215) Revamps guidelines governing the nondischargeability of certain debts for alimony, maintenance, and support to repeal the exceptions granted the debtor under specified conditions.
(Sec. 216) Modifies guidelines governing property exempt from the bankruptcy estate to declare such property liable for fraud or defalcation while acting in a fiduciary capacity, embezzlement, or larceny. Repeals the liability of such property for domestic support obligations.
(Sec. 217) Precludes the bankruptcy trustee from avoiding a transfer that is a bona fide payment of a debt for a domestic support obligation.
(Sec. 218) Redefines "disposable income" received by certain debtors to include income not reasonably expected to be expended for a child support, foster care, or disability payment for a dependent child made in accordance with nonbankruptcy law.
(Sec. 219) Sets forth the duties of the bankruptcy trustee under chapters 7, 11, 12, and 13 regarding a claim against an individual debtor for the collection of child support, including notifying the claim holder and the appropriate State child support agency of the debtor's location.
(Sec. 220) Expands the exceptions to nondischargeable debts to include certain qualified educational loans which, if not discharged, would impose an undue hardship upon either the debtor or the debtor's dependent.
Subtitle C: Other Consumer Protections - Modifies guidelines governing nonattorney bankruptcy petition preparers to mandate that as a prerequisite to any collection of fees for services: (1) such preparers officially disclose to debtors that they cannot practice law or give legal advice; and (2) such disclosure be signed by the debtor and filed with the requisite court documents. Prescribes enforcement and penalty guidelines for preparer noncompliance.
(Sec. 222) Expresses the sense of the Congress that States should develop curricula relating to the subject of personal finance, designed for use in elementary and secondary schools.
(Sec. 223) Places in the tenth order of prioritized claims against the bankrupt estate any death or personal injury claims resulting from the unlawful operation of a motor vehicle or vessel because the debtor was drug or alcohol-impaired.
(Sec. 224) Permits an individual debtor to exempt from the property of the bankrupt estate certain tax-exempt retirement funds that have not been obligated in connection with any extension of credit.
Exempts from either an automatic stay or a discharge in bankruptcy specified income withheld from the debtor pursuant to pension or profit sharing plans sponsored by such debtor's employer to pay certain loans from such plans.
(Sec. 225) Sets forth criteria for excluding certain education individual retirement accounts from the property of the bankruptcy estate if the designated beneficiary is a child or grandchild of the debtor.
Title III: Discouraging Bankruptcy Abuse - Modifies exceptions to a discharge in bankruptcy to prohibit discharge of a filing fee imposed by any court upon a prisoner.
(Sec. 302) Terminates the automatic stay 30 days after filing of a petition if a chapter 7, 11, or 13 petition was pending and dismissed the previous year, unless the subsequent filing is in good faith. Delineates conditions under which a history of previous petitions in bankruptcy give rise to a rebuttable presumption that the case is not filed in good faith.
(Sec. 303) Directs the court to grant relief from the automatic stay upon request of a party in interest with respect to certain real property actions if the court finds that filing the bankruptcy petition was part of a scheme to delay, hinder, and defraud creditors. Denies automatic stay protections regarding certain creditors' enforcement actions against real property for a specified period following a prior order in bankruptcy which forbade the debtor from being a debtor in another bankruptcy case.
(Sec. 304) Modifies debtor's duties to mandate specified affirmative actions to be taken by a chapter 7 debtor, including reaffirmation of the debt, or redemption of the property within 45 days, in order to retain possession of personal property. Allows a creditor to take action with respect to such property under nonbankruptcy law if the debtor fails to act within 45 days, unless the court determines upon trustee motion that such property is of consequential value or benefit to the estate.
(Sec. 305) Declares that the automatic stay is terminated regarding property of the debtor's estate securing a claim or subject to an unexpired lease, if the debtor fails to complete an intended surrender of consumer debt collateral within a revised, accelerated time frame (unless the court determines upon trustee motion that such property is of consequential value or benefit to the estate).
(Sec. 306) Instructs the bankruptcy court to confirm a chapter 13 plan if it provides that the holder of a secured allowed claim shall retain the attendant lien until payment or discharge of all debts.
Provides that if a chapter 13 proceeding is dismissed or converted without completion of the plan, the holder shall retain such lien to the extent recognized by applicable nonbankruptcy law.
Provides that statutory guidelines to determine the secured status of a creditor's claim do not apply if the underlying debt was incurred within the five-year period preceding the filing of the bankruptcy petition and the collateral for that debt consists of a motor vehicle acquired for the debtor's personal use (or if the collateral consists of any other thing of value if the debt was incurred during the six-month period preceding such filing).
(Sec. 307) Increases from 180 to 730 days the length of a debtor's location of domicile for purposes of determining which State law governs the debtor's selection of property exempt from the bankrupt estate.
(Sec. 308) Reduces the value of the homestead exemption and debtor's burial plot to the extent it is attributable to any portion of any property that is disposed by the debtor within the 730-day period ending on the bankruptcy petition filing date with the intent to obstruct or defraud a creditor, and that the debtor could not exempt.
(Sec. 309) Revises requirements governing the effects of conversion from chapter 13 to another chapter. Declares that: (1) valuations of property and of allowed secured claims in a chapter 13 case shall not apply in a case converted to chapter 7; and (2) with respect to cases converted from chapter 13, the claim of any creditor holding security as of the date of the petition shall continue to be secured by that security unless the full amount of that claim, as determined under applicable nonbankruptcy law, has been paid in full as of the date of conversion. States that a prebankruptcy default shall have the effect given under applicable nonbankruptcy law unless it has been fully cured pursuant to the plan at the time of conversion.
Provides for a chapter 7 debtor's assumption of executory contracts and unexpired leases of personal property. Declares that in a chapter 11 case in which the debtor is an individual, and in a chapter 13 case, if the lease is not assumed in the plan, it is rejected (and no longer subject to an automatic stay) as of the plan's confirmation date.
Delineates a cash payment plan for chapter 13 debtors for payments to any lessor of personal property and to any creditor holding a claim secured by personal property to ensure adequate protection to the claim holder during the payment period.
(Sec. 310) Reduces from the threshold amounts of luxury goods and consumer credit cash advances presumed nondischargeable in bankruptcy, if acquired within 90 days and 70 days, respectively (currently 60 days) before an order for relief is issued.
(Sec. 311) Prohibits an automatic stay of any eviction, unlawful detainer action, or similar proceeding by a lessor against a debtor involving residential real property in which: (1) the debtor resides and has not paid rent after the commencement and during the course of the case; (2) the rental agreement has terminated; (3) the debtor has previously filed within the last year and failed to pay post-petition rent during the course of that case; or (4) eviction actions are based upon endangerment to property or person or the use of illegal drugs.
(Sec. 312) Extends the period between chapter 7 discharges to eight years, and between chapter 13 discharges to five years.
(Sec. 314) Declares nondischargeable in bankruptcy: (1) debts intentionally incurred to pay a nondischargeable debt with the intent to discharge the newly-created debt; and (2) all debts incurred to pay nondischargeable debts, without regard to intent, if incurred within 70 days of the filing of the petition.
Treats a debt incurred to pay child or spousal support as a dischargeable debt (in order to preclude such support from having to compete with the nondischargeable debt).
Revamps Chapter 13 debt discharge guidelines. Prohibits discharge from a debt for restitution or damages awarded in a civil action against the debtor for willful or malicious injury that caused personal injury or death of an individual.
(Sec. 315) Prescribes notice procedures for chapter 7 and chapter 13 creditors.
Expands debtor's duties to require filing with the bankruptcy court of: (1) all tax returns; (2) evidence of payments received; (3) monthly net income projections; and (4) anticipated debt or expenditure increases. Permits a chapter 7 or chapter 13 creditor to request the debtor's petition, schedules, and statement of affairs, including the debt adjustment plan filed by the debtor. Mandates debtor compliance within five days of such request.
Mandates that, at the time of filing with the taxing authority, a chapter 7 or 13 debtor file with the bankruptcy court specified tax documentation pertaining to the period from case commencement until case termination.
Requires a chapter 13 debtor to file with the court a statement of income and expenditures in the preceding tax year, and monthly net income, showing how calculated.
Makes debtor's mandatory documentation available for inspection and copying to certain bankruptcy officers and any party in interest. Requires debtors to furnish driver's license, passport, or other photograph-containing documentation establishing debtor identification.
(Sec. 316) Provides for automatic dismissal if a chapter 7 debtor fails to furnish all mandatory information, or fails to timely file the requisite schedules. Requires the court to order dismissal within five days of a request by a party in interest for the debtor's failure to timely submit requisite documentation.
(Sec. 317) Requires a Chapter 13 confirmation hearing to be held not later than 45 days after the first meeting of creditors.
Mandates filing of a Chapter 13 debt readjustment plan within 90 days of the order for relief.
(Sec. 318) Prohibits such plan (with certain exceptions) from providing for payments over a period that is longer than three years.
(Sec. 319) Expresses the sense of the Congress that rule 9011 of the Federal Rules of Bankruptcy Procedure should include a requirement that all debtors' documents be submitted to the court only after debtors have made reasonable inquiry to verify that all information therein is well grounded in fact, and warranted by existing law or a good faith argument for extension, modification or reversal of existing law.
(Sec. 320) Revises automatic stay guidelines to provide that in the case of an individual filing under chapters 7, 11, or 13, the automatic stay shall terminate 60 days after a request for its release by a party in interest, unless the court orders or the parties agree to a longer time.
(Sec. 321) Revamps guidelines governing a Chapter 11 business reorganization case filed by an individual to: (1) identify the property of the estate in bankruptcy; and (2) revise the contents, confirmation, and modification of a reorganization plan.
(Sec. 322) Excludes employee benefit plan participant contributions from the property of the bankruptcy estate.
(Sec. 324) Prohibits a debtor from exempting from the estate in bankruptcy any amount of interest that exceeds in the aggregate $100,000 in value in: (1) real or personal property used as a residence; (2) a cooperative that owns property used as a residency by the debtor or debtor's dependent; or (3) a burial plot for the debtor or debtor's dependent.
(Sec. 325) Amends the Federal judiciary code to: (1) grant the district court presiding over a title 11 case exclusive jurisdiction over property of the debtor and of the estate, as well as to claims relating to employment or disclosure of bankruptcy professionals; and (2) increase bankruptcy fees and the amounts deposited as offsetting collections to both the United States Trustee Systems Fund, and to a special fund of the Treasury available to offset funds appropriated for court operation and maintenance.
(Sec. 328) Amends Federal bankruptcy law to exclude from a discharge in bankruptcy any debt arising from actions: (1) to protect access to reproductive health service facilities; or (2) that result from debtor's intimidation of or interference with a person's obtaining or providing such health services, or from damage or destruction of health care facility property.
Title IV: General and Small Business Bankruptcy Provisions - Subtitle A: General Business Bankruptcy Provisions - Revises circumstances under which enforcement of rights and remedies of a secured party in either rolling stock equipment, or aircraft equipment and vessels, is subject to the automatic stay.
(Sec. 402) Denies a debtor an automatic stay of the commencement of an investigation or action by a securities self-regulatory organization to enforce compliance with its regulations, or of the enforcement of any order or decision obtained by such an organization, other than for monetary sanctions.
(Sec. 403) Authorizes the bankruptcy court, upon request of a party in interest, to order that the U.S. trustee not convene a meeting of creditors or equity security holders if the debtor has filed a plan for which acceptances have been solicited before commencement of the case.
(Sec. 405) Amends guidelines for rejection and surrender of executory contracts and unexpired leases.
(Sec. 406) Authorizes a chapter 11 court to increase the membership of a committee of creditors and equity security holders to include a creditor that is a small business concern following a determination that such creditor holds claims of the kind represented by the committee, the aggregate amount of which is disproportionately large in comparison to the creditor's annual gross revenue. Requires such committee to provide access to information to certain creditors who are not committee members.
(Sec. 407) Prohibits the bankruptcy trustee from avoiding a warehouseman's lien for costs incidental to the storage and handling of certain goods.
(Sec. 409) Directs the bankruptcy court to treat the compensation awarded a trustee as a commission based on the results achieved.
(Sec. 410) States that acceptance or rejection of a chapter 11 plan may be solicited from a holder of a claim or interest if: (1) the solicitation complies with applicable nonbankruptcy law; and (2) it was made before commencement of the case in a manner complying with applicable nonbankruptcy law.
(Sec. 411) Prohibits the bankruptcy trustee from avoiding a transfer if, in a case filed by a debtor whose debts are not primarily consumer debts, the aggregate value of all property that constitutes or is affected by such transfer is less than $5,000.
(Sec. 413) Limits the extensions of time permitted for filing a chapter 11 reorganization plan.
(Sec. 414) Denies a discharge in bankruptcy for a debt for a fee or assessment arising from a debtor's interest in a lot in a homeowners association for as long as the debtor retains specified interests in such lot.
(Sec. 415) Authorizes a creditor holding a consumer debt to participate in a meeting of creditors in a chapter 7 or 13 case, either alone or in conjunction with an attorney.
(Sec. 416) Removes investment bankers from the definition of "disinterested person."
(Sec. 420) Amends the Federal judicial code to authorize the district court or bankruptcy court to waive the Chapter 7 filing fee and other attendant fees for certain chapter 7 debtors the court has determined to be unable to pay fees in installments.
(Sec. 421) Directs the Advisory Committee on Bankruptcy Rules of the Judicial Conference of the United States to propose amended Federal Rules of Bankruptcy Procedure and Official Bankruptcy Forms directing chapter 11 debtors to disclose information relating to the value, operations, and profitability of any closely held corporation, partnership, or other entity in which the debtor holds a substantial or controlling interest.
Subtitle B: Small Business Bankruptcy Provisions - Sets forth mandatory factors for court consideration in determining whether the disclosure statement regarding a small business reorganization plan provides adequate information.
(Sec. 432) Defines a small business debtor, generally, as a person (including a debtor affiliate) with not more than $3 million in aggregate non-contingent, liquidated secured and unsecured debts as of the date of the petition or the order for relief (excluding debts owed to one or more affiliates or insiders).
(Sec. 433) Directs the Advisory Committee on Bankruptcy Rules of the Judicial Conference (Advisory Committee) to propose for adoption standardized disclosure statements and plans of reorganization for small business debtors.
(Sec. 434) Sets forth uniform national reporting requirements for small business debtors.
(Sec. 435) Directs the Advisory Committee to propose for adoption revisions to the Federal Rules of Bankruptcy Procedure and Official Bankruptcy Forms enabling small business debtors to comply with such uniform national reporting requirements.
(Sec. 436) Sets forth duties and administrative procedures in small business reorganization cases, including serial filer provisions and expanded grounds for dismissal or conversion and appointment of a trustee.
(Sec. 443) Directs the Small Business Administration to study and report to the Congress on: (1) the factors that cause small businesses to become debtors in bankruptcy; and (2) how Federal bankruptcy laws can be made more efficient in assisting small businesses to retain their viability.
(Sec. 444) Revises the circumstance where a debtor has commenced monthly payments to each secured interest creditor to allow the debtor, in the debtor's sole discretion, to make such payments from rents or other income generated before or after the commencement of the case by or from the property. Requires such payments in an amount equal to the interest on the value of the creditor's interest in the real estate, determined at the then-applicable contract rate of interest (currently, at the fair market rate).
Title V: Municipal Bankruptcy Provisions - Makes technical amendments to requirements for a municipal bankruptcy petition.
Title VI: Improved Bankruptcy Statistics and Data - Amends the Federal judicial code to require each U.S. trustee to report to the Attorney General on audit results in bankruptcy cases. Requires the Attorney General to establish random audits of individual cases.
(Sec. 602) Amends the Federal judicial code to require the clerk of each district to compile bankruptcy statistics for individual debtors with primarily consumer debts seeking relief under chapters 7, 11, and 13. Directs the Administrative Office of the United States Courts (Administrative Office) to make such statistics public and to report them annually to the Congress.
(Sec. 603) Instructs the Attorney General to promulgate requirements for uniform forms for: (1) final reports by trustees in cases under chapters 7, 12, and 13; and (2) periodic reports by chapter 11 debtors or trustees in possession. Prescribes report contents.
(Sec. 604) Expresses the sense of the Congress that: (1) the national policy should be that all public record data held in electronic form by bankruptcy clerks should be released in electronic form in bulk to the public subject to appropriate privacy concerns and safeguards as the Judicial Conference of the United States may determine; and (2) a bankruptcy data system should be established in which a single set of data definitions is used to collect data nationwide, and in which all data for any particular bankruptcy case are aggregated in the same electronic record.
Title VII: Bankruptcy Tax Provisions - Amends the bankruptcy code to modify the treatment of certain tax liens.
(Sec. 702) Provides that a claim for debtor's liability for fuel tax which is filed by the base jurisdiction designated under the International Fuel Tax Agreement shall be allowed as a single claim.
(Sec. 703) Mandates that the clerk of each district maintain a listing under which a governmental entity responsible for the collection of taxes within such district may designate an address for service of requests and describe where further information for filing such requests may be found.
(Sec. 704) Prescribes the rate of interest to be paid on mandatory interest payments on tax claims.
(Sec. 705) Revises the specifications for income tax claims receiving eighth priority (allowed unsecured claims of governmental units). Provides for tolling of the time periods covering such tax claims for stays of proceedings in a prior bankruptcy case, and the pendency or effect of offers in compromise or installment agreements.
(Sec. 708) States that confirmation of a bankruptcy plan does not discharge a corporate debtor from any debt for a tax or customs duty with respect to which the debtor made a fraudulent return or willfully attempted to evade or defeat such tax.
(Sec. 709) Amends the automatic stay of U.S. Tax Court proceedings concerning the debtor to restrict such stay to tax liability for a taxable period ending before the order for relief.
(Sec. 710) Includes among the requirements for court confirmation of a chapter 11 bankruptcy plan which includes tax claims, that the debtor, at the minimum, make regular cash installment payments over a period ending not later than five years after the date of entry of the order for relief, and in a manner not less favorable than the most favored nonpriority unsecured claim provided for in the plan.
(Sec. 711) Prohibits the avoidance of statutory tax liens by certain purchasers.
(Sec. 712) Amends the Federal judicial code to require officers and agents conducting any business under court authority to pay all Federal, State and local taxes when due in the course of the business, unless it is a property tax secured by a lien against estate property which is abandoned by the bankruptcy trustee, or payment of the tax is excused under a specific bankruptcy law. Cites circumstances in which payment of such taxes may be deferred in a case pending under chapter 7 until final distribution is made.
Entitles to administrative expense priority payment certain secured and postpetition unsecured taxes incurred by the bankruptcy estate, including ad valorem property taxes.
Declares that a governmental unit shall not be required to file a request for the payment of administrative expenses relating to a tax liability or tax penalty.
Allows a trustee to recover from property securing a claim for the payment of all ad valorem property taxes relating to such property.
(Sec. 713) Requires as a condition for payment of tardily filed priority tax claims that they be filed either before the trustee commences distribution or ten days following the mailing to creditors of the summary of the trustee's final report, whichever is earlier (currently, before the trustee commences distribution of the estate).
(Sec. 714) Makes nondischargeable any obligations based on income tax returns or equivalent reports or notices prepared by tax authorities.
(Sec. 715) Declares that an estate's liability for unpaid tax is discharged upon payment of such tax according to certain requirements.
(Sec. 716) Conditions court confirmation of a chapter 13 bankruptcy plan upon filing by the debtor: (1) of all prepetition tax returns; and (2) before the day on which the first meeting of the creditors is convened, of all tax returns for taxable periods ending in the four-year period that ends on the date of the filing of the petition. Authorizes the court to dismiss a plan or convert it to chapter 7, whichever is in the best interests of the creditors and the estate, if a chapter 13 debtor fails to comply with such time frame.
Expresses the sense of the Congress that the Advisory Committee on Bankruptcy Rules of the Judicial Conference should propose for adoption amended Federal Rules of Bankruptcy Procedure pertaining to objections to tax returns and to plan confirmation.
(Sec. 717) Redefines "adequate disclosure," for postpetition disclosure and solicitation purposes, to include full discussion of the potential material Federal and State tax consequences of the plan to the debtor and to a hypothetical investor domiciled in the State in which the debtor resides or has its principal place of business typical of the holders of claims or interests in the case.
(Sec. 718) Denies an automatic stay (unless specified conditions are met) to the setoff of an income tax refund for a taxable period which ended before the order for relief against an income tax liability for a taxable period which also ended before the order for relief.
(Sec. 719) Revises special provisions related to the treatment of State and local taxes, including the creation of a separate taxable estate when such is done for Federal tax purposes.
(Sec. 720) Provides that if the debtor fails to timely file a tax return or obtain an extension, a taxing authority may petition the court to convert or dismiss a case, whichever is in the best interests of creditors and the estate.
Title VIII: Ancillary and Other Cross-Border Cases - Expands the scope of bankruptcy law to incorporate the Model Law on Cross-Border Insolvency, and to establish a statutory mechanism for: (1) dealing with cases of cross-border insolvency; and (2) cooperation between U.S. courts, trustees, and debtors and their foreign counterparts. Prescribes guidelines for: (1) access of foreign representatives and creditors to Federal and State courts; (2) recognition of a foreign proceeding and relief; (3) cooperation and direct communication with foreign courts and representatives; and (4) concurrent proceedings and the coordination of foreign and domestic proceedings.
Title IX: Financial Contract Provisions - Amends Federal bankruptcy law to: (1) deny an automatic stay to set-offs under certain swap agreements and netting agreements; and (2) restrict the avoidance power of the bankruptcy trustee regarding certain master netting agreement transfers to those transfers that are fraudulent in nature.
(Sec. 901) Sets forth guidelines for: (1) the termination or acceleration of designated contracts and agreements; and (2) commodity broker and stockbroker liquidation with respect to the priority of unsecured claims, or customer property or distributions.
(Sec. 902) Specifies the date for the measure of damages in connection with: (1) rejection by the bankruptcy trustee of swap agreements, securities contracts, forward contracts, commodity contracts, repurchase agreements, or master netting agreements; or (2) their liquidation, acceleration, or termination by a forward contract merchant, stockbroker, financial institution, securities clearing agency, repo participant, financial participant, master netting agreement participant, or swap participant.
(Sec. 903) Declares that property of the bankrupt estate does not include any eligible asset (or its proceeds) to the extent that it was transferred by the debtor before commencement of the case to an eligible entity in connection with an asset-backed securitization (except to the extent that such asset, or its proceeds or value, may be recovered through avoidance by the bankruptcy trustee).
Title X: Protection of Family Farmers And Family Fishermen - Amends the Federal bankruptcy code to: (1) reenact Chapter 12, Adjustment of Debts of a Family Farmer with Regular Annual Income (thereby reinstating family farmer bankruptcy relief); (2) define a family farmer as one more than 50 percent of whose gross income was received from a farming operation during at least one of the three taxable years (instead of the single taxable year) preceding the taxable year in which the bankruptcy petition was filed; and (3) cite circumstances under which the claim of a governmental unit that arises as a result of the disposition of a farm asset used in the debtor's farming operation shall be treated as an unsecured claim not entitled to priority.
(Sec. 1005) Cites circumstances under which the court shall confirm a family farmer bankruptcy plan notwithstanding the objection of the trustee or holder of an allowed unsecured claim. Prohibits any post-confirmation modification of a bankruptcy plan that would increase the amount of payments that were due before such modification. Provides that, unless the debtor proposes the modification, a modified plan may not: (1) require payments to unsecured creditors in any particular month greater than debtor's disposable income for that month based on an increase in debtor's disposable income; and (2) require in its last year, payments that would leave the debtor with insufficient funds after plan completion to carry on the farming operation.
(Sec. 1006) Establishes "family fisherman" within the category of debtors entitled to bankruptcy law protection.
Title XI: Health Care and Employee Benefits - Amends bankruptcy provisions to prescribe guidelines for disposal of the patient records of a health care business (not including a health maintenance organization) that commences a proceeding for debtor relief and the trustee does not have sufficient funds to pay for the storage of patient records as required by law.
(Sec. 1103) Allows an administrative expense claim for the costs of closing a health care business, including disposal of patient records and transfer of patients to another health care business.
(Sec. 1104) Requires the bankruptcy court to appoint an ombudsman to represent the interests of the patients of a health care business within 30 days after commencement of a case under chapter 7 (Liquidation), 9 (Adjustment of Debts of a Municipality), or 11 (Reorganization).
(Sec. 1105) Requires the bankruptcy trustee to use all reasonable and best efforts to transfer patients from the health care business in the process of being closed to an appropriate substitute.
(Sec. 1106) Instructs the Attorney General to establish a policy and protocols for coordinating a response to bankruptcies of health care businesses, including time frame assessment for disposal of patient records.
(Sec. 1107) Denies an automatic stay to a debtor's exclusion by the Secretary of Health and Human Services from participation in the Medicare program or any other Federal health care program (thus precluding the debtor's continuation or reinstatement in such a program).
Title XII: Technical Amendments - Makes technical corrections to Federal bankruptcy, judicial, and criminal law.
(Sec. 1201) Redefines single asset real estate to exclude family farms and to repeal the $4 million ceiling on the amount of noncontingent, liquidated secured debts on such property. Defines the term "transfer" to include: (1) creation of a lien; (2) retention of title as a security interest; (3) foreclosure of the debtor's equity of redemption; and (4) every mode of disposing of property or parting with an interest in property.
(Sec. 1202) Requires triennial adjustment of: (1) the $5,000 value of certain implements, professional books, tools of the trade, farm animals, and crops which a debtor may exempt from the property of the estate (protecting them from creditors' liens); and (2) the national median household income calculated monthly.
(Sec. 1206) Provides that a trustee or a creditors' and equity security holders' committee may pay a professional person they employ on a fixed or percentage fee basis, as well as on other bases already permitted.
(Sec. 1208) Excludes from compensable professional services any expenses incurred by an individual member of a creditors' and equity security holders' committee.
(Sec. 1209) Declares nondischargeable in bankruptcy a debt for death or personal injury caused by the debtor's operation of a watercraft or aircraft while intoxicated from alcohol, a drug, or other substance. Limits the nondischargeability of fees imposed by a court to fees so imposed on a prisoner.
(Sec. 1213) Revises guidelines governing preferences to provide that, if the trustee avoids a security interest given between 90 days and one year before the date of the filing of the petition, by the debtor to a non-insider for the benefit of a creditor that is an insider, then such security interest shall be considered to be avoided only with respect to the insider creditor.
(Sec. 1222) Permits the bankruptcy trustee to sell, use, or lease property in accordance with nonbankruptcy law governing the transfer of property by nonprofit charitable corporations, if doing so is not inconsistent with certain relief granted under the automatic stay.
(Sec. 1223) Extends from 20 to 30 days the length of time after a debtor receives possession of property for perfection of a security interest in such property created by a transfer which the trustee may not avoid.
(Sec. 1225) Bankruptcy Judgeship Act of 2000- Amends the Federal judicial code to mandate appointments for additional temporary bankruptcy judgeships in California, Florida, Maryland, Michigan, Mississippi, New Jersey, New York, Pennsylvania, Tennessee, and Virginia. Provides that the first vacancy occurring in such district five years or more after a judge is appointed under this Act shall not be filled.
Extends temporary bankruptcy judgeship positions authorized for the northern district of Alabama, the eastern district of Tennessee, and the districts of Delaware, Puerto Rico, and South Carolina.
(Sec. 1226) Defines family fishermen debtors for bankruptcy purposes.
(Sec. 1227) Prescribes compensation guidelines for the services and expenses of a trustee who has successfully petitioned the court to convert or dismiss a chapter 7 case.
(Sec. 1229) Amends the Truth in Lending Act (TILA) to mandate inclusion of an electronic version of or link to a Federal Trade Commission pamphlet on choosing and using credit cards in any electronic transaction or transmission concerning a credit card account under an open end consumer credit plan.
(Sec. 1230) Amends the bankruptcy code to: (1) prohibit a political committee subject to Federal Election Commission (FEC) jurisdiction from filing for bankruptcy; and (2) include among nondischargeable debts any fines or penalties imposed under Federal election law.
(Sec. 1232) Amends TILA to prohibit certain retroactive finance charges to a credit card account under an open end credit plan for payments made during a grace period applicable to any new extension of credit under the account.
(Sec. 1233) Instructs the Board of Governors of the Federal Reserve System to report to certain congressional committees as to whether and how financial institutions consider the residential location of a credit card applicant in deciding whether an applicant should be granted such credit card.
(Sec. 1234) Requires the Director of the Administrative Office of the U.S. Courts to develop materials and conduct training useful to courts in implementing this Act.
(Sec. 1235) Amends Federal bankruptcy law to modify the right of the seller of goods to the debtor to reclaim such goods if the debtor received such goods while insolvent. Limits the period of receipt to 45 days before commencement of the case, and the time during which the seller may demand reclamation to 45 days after receipt, or before 20 days after commencement of the bankruptcy case.
(Sec. 1236) Prohibits a court from granting a discharge in a chapter 7 case, or from confirming a reorganization plan in a chapter 11 or 13 case, unless requested tax documents are filed with or otherwise provided to the court.
(Sec. 1238) Expresses the sense of Congress that: (1) consumer credit may sometimes be offered indiscriminately without lender action to ensure consumer repayment capacity, and in a manner which may encourage additional debt accumulation; and (2) resulting consumer debt may increasingly be a major contributing factor to consumer insolvency.
Instructs the Board of Governors of the Federal Reserve System to study indiscriminate solicitation and extension of credit by the credit industry. Authorizes the Board to: (1) promulgate regulations requiring additional disclosures to consumers; and (2) take measures to ensure responsible industrywide practices and prevent resulting consumer debt and insolvency.
(Sec. 1239) Cites circumstances in which property of the estate in bankruptcy does not include tangible personal property pledged or sold by the debtor as collateral for a loan or money advance, and the pledgee or transferee possesses such property.
(Sec. 1240) Amends TILA to require a creditor that maintains a toll-free telephone number informing customers of the actual number of months needed to repay an outstanding balance to declare on each billing statement: "Making only the minimum payment will increase the interest and the time to repay the balance. For more information, call this toll-free number."
Title XIII: General Effective Date; Application of Amendments - Sets forth the effective date of this Act and the application of its amendments.
Title XIV: Financial Institutions Insolvency Improvement - Financial Institutions Insolvency Improvement Act of 2000 - Amends the Federal Deposit Insurance Act (FDIA) to redefine specified contracts, agreements, and transfers entered into with an insolvent insured depository institution before the appointment of a conservator or receiver.
(Sec. 1402) Declares that no person shall be stayed or prohibited from exercising any right to cause the acceleration of any qualified financial contract with an insured depository institution which arises upon the appointment of the Federal Deposit Insurance Corporation (FDIC) as receiver at any time after such appointment.
(Sec. 1403) Declares that no provision of law shall be construed as limiting the right or power of the FDIC, or authorizing any court or agency to limit or delay, in any manner, the FDIC's right or power to transfer, disaffirm, or repudiate any qualified financial contract of a failed institution.
Prohibits enforcement of a walkaway clause in a qualified financial contract of a failed insured depository institution (a clause that either does not create a payment obligation of a party, or extinguishes it solely because of such party's status as a nondefaulting party).
(Sec. 1404) Revises guidelines governing transfers of qualified financial contracts of an insolvent institution to include: (1) transfers to a foreign bank or foreign financial institution (including its branch or agency) (but only when the contractual rights of the parties to such qualified financial contracts are enforceable substantially to the same extent as permitted under such Act); and (2) transfers of contracts subject to the rules of a clearing organization. Defines financial institution to include a broker or dealer, a depository institution, a futures commission merchant, or any other institution as determined by FDIC regulation.
Suspends certain termination rights of counterparties to a qualified financial contract with an insolvent insured depository institution until after the receiver's appointment, or after receipt of notice that the contract has been transferred.
Declares that none of the following institutions shall be considered a financial institution for which a conservator, receiver, trustee in bankruptcy, or other legal custodian has been appointed or which is otherwise the subject of a bankruptcy or insolvency proceeding: (1) a bridge bank; or (2) an FDIC-organized depository institution for which a conservator is appointed either immediately upon organization, or at the time of a purchase and assumption transaction between such institution and the FDIC as receiver for a depository institution in default.
(Sec. 1405) Prescribes guidelines for: (1) the disaffirmance or repudiation of qualified financial contracts by the conservator or receiver for a failed depository institution; and (2) the treatment of a master agreement as a single agreement and as a single qualified financial contract.
(Sec. 1407) Amends the Federal Deposit Insurance Corporation Improvement Act of 1991 to make conforming amendments with respect to: (1) bilateral netting contracts; (2) security agreements; (3) clearing organization netting contracts; (4) contracts with uninsured national banks; and (5) contracts with uninsured Federal branches or agencies.
(Sec. 1408) Amends the FDIA to authorize the FDIC to prescribe more detailed recordkeeping requirements for qualified financial contracts (including market valuations) by insured depository institutions.
(Sec. 1409) Exempts specified collateralization agreements from the contemporaneous execution requirement that renders invalid certain agreements against FDIC interests in certain asset acquisitions.
(Sec. 1410) Amends the Securities Investor Protection Act of 1970 to provide that neither the filing of a protective decree by the Securities Investor Protection Corporation, nor any court protective order, shall operate as a stay of a creditor's contractual rights to liquidate, terminate, or accelerate designated contracts and agreements. Allows such application, order, or decree, however, to operate as a stay of foreclosure on securities collateral pledged by the debtor, whether or not with respect to one or more of such contracts, agreements, or securities sold by the debtor under a repurchase agreement.
(Sec. 1411) Amends the Federal Reserve Act to increase the types of acceptances eligible to meet Federal Reserve collateral requirements.
Title XV: Methamphetamine and Other Controlled Substances - Methamphetamine Anti-Proliferation Act of 2000 - Subtitle A: Methamphetamine Production, Trafficking, and Abuse - Chapter 1: Criminal Penalties - Directs the United States Sentencing Commission (the Commission) to amend the Federal sentencing guidelines with respect to any offense relating to the manufacture, importation, exportation, or trafficking in amphetamine (including an attempt or conspiracy to do any of the foregoing) in violation of the Controlled Substances Act (CSA), the Controlled Substances Import and Export Act (CSIEA), or the Maritime Drug Law Enforcement Act (MDLEA), by reviewing and amending its guidelines to provide for increased penalties such that those penalties are comparable to the base offense level for methamphetamine.
(Sec. 1511) Directs the Commission to: (1) ensure that the sentencing guidelines for offenders of such offenses reflect the heinous nature of such offenses, the need for aggressive law enforcement, and the extreme dangers associated with unlawful activity involving amphetamines; and (2) promulgate amendments pursuant to this Act in accordance with the procedure set forth in the Sentencing Act of 1987, as though the (emergency) authority of that Act had not expired.
(Sec. 1512) Directs the Commission to: (1) amend the guidelines to increase the base offense level, with respect to any offense relating to the manufacture, attempt to manufacture, or conspiracy to manufacture amphetamine or methamphetamine in violation of the CSA, the CSIEA, or the MDLEA, by specified amounts if the offense created a substantial risk of harm to human life or the environment, or to the life of a minor or incompetent; and (2) promulgate amendments pursuant to this Act in accordance with the procedure set forth in the Sentencing Act of 1987, as though the authority of that Act had not expired.
(Sec. 1513) Provides for mandatory (currently discretionary) restitution for CSA and CSIEA violations. Expands provisions regarding restitution for cleanup of clandestine laboratory sites to cover offenses involving, and reimbursement for costs incurred for the cleanup associated with, the manufacture of amphetamine (currently limited to methamphetamine), and to include reimbursement to States and local governments, as well as to the United States. Amends the Federal judicial code to provide for the deposit of certain sums from a reimbursement order into the Department of Justice (DOJ) Assets Forfeiture Fund. Makes mandatory restitution provisions applicable to the prohibition against the establishment of manufacturing operations with respect to controlled substances. Treats illicit substance manufacturing operations as crimes against property.
(Sec. 1514) Amends CSA to include items primarily intended or designed for use in introducing methamphetamine into the body within the definition of "drug paraphernalia."
Chapter 2: Enhanced Law Enforcement - Amends the judicial code to make sums in the DOJ Assets Forfeiture Fund available for payment for costs incurred by or on behalf of: (1) DOJ in connection with the removal, for purposes of Federal forfeiture and disposition, of any hazardous substance or pollutant or contaminant associated with the illegal manufacture of amphetamine or methamphetamine; and (2) a State or local government in connection with such removal in any case in which such State or local government has assisted in a Federal prosecution relating to amphetamine or methamphetamine, to the extent such costs exceed equitable sharing payments made to such State or local government in such case.
(Sec. 1521) Amends the Omnibus Crime Control and Safe Streets Act of 1968 to make funds under the drug control and system improvement (Byrne) grant program available to remove any hazardous substance or pollutant or contaminant associated with the illegal manufacture of amphetamine or methamphetamine. Requires that any sums made available from the DOJ Assets Forfeiture Fund for purposes of this section in a fiscal year supplement and not supplant any other amounts made available to DOJ in such fiscal year from other sources.
(Sec. 1522) Amends CSA to modify the definition of "regulated transaction" to reduce the retail sales transaction threshold for non-safe harbor products containing pseudoephedrine or phenylpropanolamine.
(Sec. 1523) Directs the Administrator of the Drug Enforcement Administration (DEA) to carry out specified programs (advanced mobile clandestine laboratory training teams, basic clandestine laboratory certification training, and clandestine laboratory recertification and awareness training) with respect to the law enforcement personnel of States and localities determined by the Administrator to have significant levels of methamphetamine- or amphetamine-related crime or projected by the Administrator to have the potential for such levels of crime in the future. Limits the duration of any such program to three years. Authorizes appropriations.
(Sec. 1524) Requires the Director of National Drug Control Policy to: (1) use amounts available under this section to combat the trafficking of methamphetamine and amphetamine in areas designated as high intensity drug trafficking areas; and (2) provide funds for employing additional Federal law enforcement personnel, or facilitating the employment of additional State and local law enforcement personnel. Authorizes appropriations. Requires the Director to apportion amounts appropriated for a fiscal year pursuant to such authorization of appropriations for activities under this section among and within areas designated by the Director as high intensity drug trafficking areas based on: (1) the number of methamphetamine and amphetamine manufacturing facilities discovered by Federal, State, or local law enforcement officials in the previous fiscal year; (2) the number of methamphetamine and amphetamine prosecutions in Federal, State, or local courts in the previous fiscal year; (3) the number of methamphetamine and amphetamine arrests by Federal, State, or local courts in the previous fiscal year; (4) the amounts of methamphetamine, amphetamine, or listed chemicals seized by Federal, State, or local law enforcement officials in the previous fiscal year; and (5) intelligence and predictive data from the DEA and the Department of Health and Human Services (HHS) showing patterns and trends in abuse, trafficking, and transportation in methamphetamine, amphetamine, and listed chemicals. Requires the Director, before apportioning any funds under this section to a high intensity drug trafficking area, to certify that the law enforcement entities responsible for clandestine methamphetamine and amphetamine laboratory seizures in that area are providing laboratory seizure data to the national clandestine laboratory database at the El Paso Intelligence Center. Sets limits on administrative costs.
(Sec. 1525) Authorizes the Administrator of the DEA to: (1) assist State and local law enforcement in small and mid-sized communities in all phases of investigations related to such manufacturing and trafficking; (2) staff additional regional enforcement and mobile enforcement teams related to such manufacturing and trafficking; (3) establish additional resident offices and posts of duty to assist State and local law enforcement in rural areas in combating such manufacturing and trafficking; (4) provide the Special Operations Division of DEA with additional agents and staff for specified purposes; (5) enhance the investigative and related functions of DEA's Chemical Control Program; (6) design an effective means of requiring an accurate accounting of the import and export of list I chemicals and coordinate investigations relating to their diversion; (7) develop a computer infrastructure sufficient to receive, process, analyze, and redistribute time-sensitive enforcement information from suspicious order reporting to DEA field offices and other law enforcement and regulatory agencies; and (8) establish an education, training, and communication process to alert the industry to current trends and emerging patterns in illegal amphetamine and methamphetamine manufacturing. Authorizes the Administrator to establish in DEA, and appoint personnel, for not more than: (1) 50 full-time positions, including up to 31 special agent positions; and (2) 15-full time additional positions, including up to ten diversion investigator positions, with respect to activities specified in paragraphs five through eight in the previous paragraph. Authorizes appropriations.
Chapter 3: Abuse Prevention and Treatment - Amends the Public Health Service Act (PHSA) to authorize the Director of the National Institute on Drug Abuse to make grants to enter into cooperative agreements to expand the current and on-going interdisciplinary research and clinical trials with treatment centers of the National Drug Abuse Treatment Clinical Trials Network relating to methamphetamine abuse and addiction and other biomedical, behavioral, and social issues related to methamphetamine abuse and addiction. Sets forth provisions regarding permissible uses of grant funds and dissemination of research results. Authorizes appropriations.
(Sec. 1532) Amends PHSA to authorize the Director of the Center for Substance Abuse Treatment to make grants to States and Indian tribes recognized by the United States that have a high rate, or have had a rapid increase, in methamphetamine or amphetamine abuse or addiction to permit such States and tribes to expand activities in connection with treatment in specific geographical areas. Sets forth grant requirements and responsibilities of the Director. Authorizes appropriations.
(Sec. 1533) Amends PHSA to authorize the Administrator of the Substance Abuse and Mental Health Services Administration to make grants to and enter into contracts and cooperative agreements with public and nonprofit private entities to carry out: (1) school-based programs concerning the dangers of abuse of and addiction to methamphetamine and other illicit drugs, using methods that are effective and science-based, including initiatives that give students the responsibility to create their own anti-drug abuse education programs for their schools; and (2) community-based abuse and addiction prevention programs relating to methamphetamine and other illicit drugs that are effective and science-based. Sets forth provisions regarding permissible grant uses, priorities in making grants, program evaluation, and reporting requirements. Authorizes appropriations for expansion of abuse prevention efforts and for practitioner registration requirements.
(Sec. 1534) Directs the Secretary of HHS to: (1) conduct a study on the development of medications for the treatment of addiction to amphetamine and methamphetamine; and (2) report to the Senate and House Judiciary Committees. Authorizes appropriations.
Chapter 4: Reports - Directs the Secretary to include in each National Household Survey on Drug Abuse appropriate prevalence data and information on the consumption of methamphetamine and other illicit drugs in rural areas, metropolitan areas, and consolidated metropolitan areas.
(Sec. 1542) Directs the Attorney General to: (1) conduct a study of the use of ordinary, over-the-counter pseudoephedrine and phenylpropanolamine products in the clandestine production of illicit drugs; and (2) report to Congress the findings and any recommendations on the need to establish additional measures to prevent diversion.
Subtitle B: Controlled Substances Generally - Chapter 1: Criminal Matters - Directs the Sentencing Commission to amend the sentencing guidelines to provide for enhanced penalties for CSA and CSIEA violations involving: (1) ephedrine, phenylpropanolamine, and pseudoephedrine; and (2) other list I chemicals to reflect the dangerous nature of such offenses, the need for aggressive law enforcement action to fight such offenses, and the extreme dangers associated with unlawful activity involving methamphetamine and amphetamine.
(Sec. 1551) Directs the Commission to promulgate amendments pursuant to this Act in accordance with the procedure set forth in the Sentencing Act of 1987, as though the authority of that Act had not expired.
(Sec. 1552) Revises CSA mail order provisions to: (1) require that each regulated person who engages in an export transaction (currently, limited to each regulated person who engages in a transaction with a non-regulated person) submit a monthly report of each such transaction to the Attorney General; and (2) make specified exemptions from such reporting requirement, such as for certain distributions of sample packages of drug products and distributions of drug products pursuant to a valid prescription. Authorizes the Attorney General to revoke any such exemptions if drug products distributed by the regulated person are being used in violation of CSA requirements, subject to specified notification and right to an expedited hearing.
(Sec. 1553) Amends CSA to increase the minimum sentences: (1) from one year to three years for a first offense of distributing controlled substances to persons under age 21, and from one to five years for a second offense; and (2) from one year to three years for a first offense of distributing them in or near a school, and from three to five years for a second offense.
(Sec. 1555) Amends CSA to prohibit advertisements for the sale of drug paraphernalia and of schedule I controlled substances.
(Sec. 1556) Amends CSA to prohibit and set penalties for the theft of anhydrous ammonia, or the transportation of stolen anhydrous ammonia across State lines, knowing, intending, or having reasonable cause to believe that such ammonia will be used to manufacture a controlled substance in violation of the Act. Requires the DEA Administrator to seek to enter into an agreement with Iowa State University to permit the University to expand its current research into the development of inert agents that, when added to anhydrous ammonia, eliminate its usefulness as an ingredient in methamphetamine production. Authorizes such agreement to provide $500,000, on a reimbursable basis, for such activities. Authorizes appropriations.
(Sec. 1557) Amends the Federal criminal code to prohibit, and set penalties for, teaching or demonstrating: (1) the manufacture of a controlled substance, or distributing by any means information pertaining to, the manufacture of a controlled substance, with the intent that the teaching, demonstration, or information be used for, or in furtherance of, an activity that constitutes a Federal crime; or (2) to any person the manufacture of a controlled substance, or to distribute to any person, by any means, information pertaining to, such manufacture, knowing that such person intends to use the teaching, demonstration, or information for, or in furtherance of, an activity that constitutes a Federal crime.
Chapter 2: Other Matters - Amends CSA to waive the requirement that practitioners who dispense narcotic drugs to individuals for maintenance or detoxification treatment annually obtain a separate registration for that purpose, and that the Attorney General register an applicant to dispense narcotic drugs to individuals for such treatment, in the case of the dispensing by a practitioner of narcotic drugs in schedule III, IV, or V, or combinations of such drugs (schedule III-V drugs) if the practitioner and the drugs meet specified conditions. Requires that: (1) the practitioner, before dispensing schedule III-V drugs to patients for maintenance or detoxification treatment, submit to the Secretary of HHS and the Attorney General a notification of intent to begin dispensing such drugs for that purpose, including certifications that the practitioner is licensed under State law and has the ability to treat and manage opiate-dependent patients, has the capacity to refer the patients for appropriate counseling and other appropriate ancillary services, and meets other specified requirements; and (2) the schedule III-V drugs have been approved for use in maintenance or detoxification treatment and have not been the subject of an "adverse determination" (i.e., requires additional standards regarding the qualifications of practitioners to provide such treatment, or requires standards regarding the quantities of the drugs that may be provided for unsupervised use).
(Sec. 1561) Authorizes the Secretary to issue regulations through notice and comment rulemaking or practice guidelines to address the following: (1) approval of additional credentialing bodies and the responsibilities of additional credentialing bodies; and (2) additional exemptions from the requirements and any regulations under this section. Directs the Secretary to issue a Treatment Improvement Protocol containing best practice guidelines for the treatment and maintenance of opiate-dependent patients. Sets forth: (1) provisions regarding physician training and experience for purposes of the regulations or practice guidelines; and (2) procedural waiver requirements. Requires the Secretary to notify the physician and the Attorney General upon determining that a physician meets specified conditions. Directs the Attorney General, upon receiving such notice, to assign the physician an identification number for inclusion with the physician's current registration to prescribe narcotics. Specifies that an identification number assigned a physician shall be appropriate to preserve the confidentiality of a patient prescribed narcotic drugs by the physician. Requires the Secretary and the Attorney General, during the three-year period beginning on the date of this Act's enactment, to make determinations regarding whether: (1) treatments provided under such waivers have been effective forms of maintenance and detoxification treatment in clinical settings; (2) such waivers have significantly increased the availability of such treatment; and (3) such waivers have adverse public health consequences. Authorizes the Secretary to collect data from the practitioners for whom waivers are in effect. Sets forth further requirements with respect to the Secretary and the Attorney General, and further procedural requirements. Prohibits a State, during the three-year period, from precluding a practitioner from dispensing schedule III-V drugs to patients for maintenance or detoxification treatment in accordance with this Act unless, before the expiration of such period, the State enacts a law prohibiting a practitioner from dispensing such drugs. Authorizes appropriations.
Subtitle C: Cocaine Powder - Powder Cocaine Sentencing Act of 2000 - Amends CSA and the Controlled Substances Import and Export Act to reduce the threshold amount of cocaine powder that constitutes a felonious possession and subject to mandatory criminal penalties.
(Sec. 1572) Instructs the Sentencing Commission to amend Federal sentencing guidelines to reflect the amendments made by this Act.
Subtitle D: Education Matters - Amends the Elementary and Secondary Education Act of 1965 (the Act) to redesignate the Gun-Free Schools Act of 1994 as the Safe Schools Act of 1999.
(Sec. 1581) Revises the minimum one-year expulsion requirement for weapon possession on school property to include as an expellable offense possession of felonious quantities of an illegal drug on school property under the jurisdiction of, or in a vehicle operated by an employee or agent of, a local educational agency in that State. Revises compliance reporting datelines.
(Sec. 1582) Authorizes a local educational agency to use certain Federal education program funds to pay the supplementary costs of attending another school (including a religious school) for any public elementary or secondary school student victim of a violent criminal offense committed on school grounds.
Subtitle E: Miscellaneous - Modifies Federal criminal code provisions regarding additional grounds for issuing a warrant to specify that any notice required to be given may be delayed, pursuant to specified standards, terms, and conditions set forth elsewhere in the code, unless otherwise expressly provided by statute.
(Sec. 1592) Directs the Federal Bureau of Investigation to study and report to Congress on specified issues regarding the Fuerzas Armadas de Liberacion Nacional Puertorriquena (FALN) and Los Macheteros terrorist organizations.
(Sec. 1593) Requires the head of each Federal department, agency, and establishment to place anti-drug messages on appropriate Internet websites controlled by such department, agency, or establishment, an electronic hyperlink to the Internet website, if any, of the Office of National Drug Control Policy.
(Sec. 1594) (This section and Sec. 1595 repeat Secs. 1581 and 1582) Amends the Elementary and Secondary Education Act of 1965 (the Act) to redesignate the Gun-Free Schools Act of 1994 as the Safe Schools Act of 1999.
Revises the minimum one-year expulsion requirement for weapon possession on school property to include as an expellable offense possession of felonious quantities of an illegal drug on school property under the jurisdiction of, or in a vehicle operated by an employee or agent of, a local educational agency in that State. Revises compliance reporting datelines.
(Sec. 1595) Authorizes a local educational agency to use certain Federal education program funds to pay the supplementary costs of attending another school (including a religious school) for any public elementary or secondary school student victim of a violent criminal offense committed on school grounds.
(Sec. 1597) (Repeats Secs. 1553 and 1554) Amends CSA to increase the minimum sentences: (1) from one year to three years for a first offense of distributing controlled substances to persons under age 21, and from one to five years for a second offense; and (2) from one year to three years for a first offense of distributing them in or near a school, and from three to five years for a second offense.
Title XVI: Protection From the Impact of Bankruptcy of Certain Electric Utilities - Emergency Imported Electric Power Price Reduction Act of 2000 - Declares that the Firm Power and Energy Contract with Hydro-Quebec dated December 4, 1987, as it exists on the date of enactment of this Act, shall be void 180 days after such date.
(Sec. 1603) States that the parties to such contract are not precluded from amending it, or entering into a new contract after the date of enactment of this Act in a manner that is consistent with specified findings and purposes of this Act.
(Sec. 1604) Grants only the Attorney General of a State in which electric power is provided under such contract standing to bring a civil enforcement action in U.S. district court.
Title XVII: Consumer Credit Disclosure - Amends the Truth in Lending Act to require: (1) specified minimum payment warnings governing an open end credit plan on which finance charges are accruing; and (2) disclosure of a toll-free number to call for an estimate of the time required to repay the balance making only minimum payments. Requires the Federal Trade Commission (FTC) to establish a toll-free number for the same purpose in the case of a creditor with respect to which the FTC is enforcing compliance with such Act. Directs the Board of Governors of the Federal Reserve System (the Board) to promulgate implementing regulations.
(Sec. 17101) Authorizes the Board to study and report to Congress on whether consumers have adequate information regarding borrowing activities that may result in financial problems.
(Sec. 1702) Mandates additional disclosures where credit extensions secured by a dwelling exceed the dwelling's fair market value, stating that the interest on the excess portion of such extension is not tax deductible for Federal income tax purposes.
(Sec. 1703) Requires specified additional disclosures for: (1) introductory rates and temporary annual percentage rates of interest; (2) Internet-based credit card solicitations; and (3) late payment deadlines and penalties.
(Sec. 1706) Prohibits a creditor from terminating an open end consumer credit account before its expiration date solely because finance charges have not been incurred on such account.
(Sec. 1707) Authorizes the Board to study and report to Congress on certain consumer protections limiting consumer liability for unauthorized use of a debit card or similar access device.
(Sec. 1708) Instructs the Comptroller General to study and report to Congress on the impact that credit extensions to dependent students have upon the rate of bankruptcy cases filed under Federal law.
[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 3046 Placed on Calendar Senate (PCS)]
Calendar No. 807
106th CONGRESS
2d Session
S. 3046
To amend title 11 of the United States Code, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 14, 2000
Mr. Lott introduced the following bill; which was read the first time
September 15, 2000
Read the second time and placed on the calendar
_______________________________________________________________________
A BILL
To amend title 11 of the United States Code, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Bankruptcy Reform
Act of 2000''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--NEEDS-BASED BANKRUPTCY
Sec. 101. Conversion.
Sec. 102. Dismissal or conversion.
Sec. 103. Findings and study.
Sec. 104. Notice of alternatives.
Sec. 105. Debtor financial management training test program.
Sec. 106. Credit counseling.
TITLE II--ENHANCED CONSUMER PROTECTION
Subtitle A--Penalties for Abusive Creditor Practices
Sec. 201. Promotion of alternative dispute resolution.
Sec. 202. Effect of discharge.
Sec. 203. Discouraging abuse of reaffirmation practices.
Subtitle B--Priority Child Support
Sec. 211. Definition of domestic support obligation.
Sec. 212. Priorities for claims for domestic support obligations.
Sec. 213. Requirements to obtain confirmation and discharge in cases
involving domestic support obligations.
Sec. 214. Exceptions to automatic stay in domestic support obligation
proceedings.
Sec. 215. Nondischargeability of certain debts for alimony,
maintenance, and support.
Sec. 216. Continued liability of property.
Sec. 217. Protection of domestic support claims against preferential
transfer motions.
Sec. 218. Disposable income defined.
Sec. 219. Collection of child support.
Sec. 220. Nondischargeability of certain educational benefits and
loans.
Subtitle C--Other Consumer Protections
Sec. 221. Amendments to discourage abusive bankruptcy filings.
Sec. 222. Sense of Congress.
Sec. 223. Additional amendments to title 11, United States Code.
Sec. 224. Protection of retirement savings in bankruptcy.
Sec. 225. Protection of education savings.
TITLE III--DISCOURAGING BANKRUPTCY ABUSE
Sec. 301. Reinforcement of the fresh start.
Sec. 302. Discouraging bad faith repeat filings.
Sec. 303. Curbing abusive filings.
Sec. 304. Debtor retention of personal property security.
Sec. 305. Relief from the automatic stay when the debtor does not
complete intended surrender of consumer
debt collateral.
Sec. 306. Giving secured creditors fair treatment in chapter 13.
Sec. 307. Exemptions.
Sec. 308. Residency requirement for homestead exemption.
Sec. 309. Protecting secured creditors in chapter 13 cases.
Sec. 310. Limitation on luxury goods.
Sec. 311. Automatic stay.
Sec. 312. Extension of period between bankruptcy discharges.
Sec. 313. Definition of household goods and antiques.
Sec. 314. Debt incurred to pay nondischargeable debts.
Sec. 315. Giving creditors fair notice in chapters 7 and 13 cases.
Sec. 316. Dismissal for failure to timely file schedules or provide
required information.
Sec. 317. Adequate time to prepare for hearing on confirmation of the
plan.
Sec. 318. Chapter 13 plans to have a 5-year duration in certain cases.
Sec. 319. Sense of the Congress regarding expansion of rule 9011 of the
Federal Rules of Bankruptcy Procedure.
Sec. 320. Prompt relief from stay in individual cases.
Sec. 321. Chapter 11 cases filed by individuals.
Sec. 322. Excluding employee benefit plan participant contributions and
other property from the estate.
Sec. 323. Clarification of postpetition wages and benefits.
Sec. 324. Limitation.
Sec. 325. Exclusive jurisdiction in matters involving bankruptcy
professionals.
Sec. 326. United States trustee program filing fee increase.
Sec. 327. Compensation of trustees in certain cases under chapter 7 of
title 11, United States Code.
Sec. 328. Nondischargeability of debts incurred through the commission
of violence at clinics.
TITLE IV--GENERAL AND SMALL BUSINESS BANKRUPTCY PROVISIONS
Subtitle A--General Business Bankruptcy Provisions
Sec. 401. Rolling stock equipment.
Sec. 402. Adequate protection for investors.
Sec. 403. Meetings of creditors and equity security holders.
Sec. 404. Protection of refinance of security interest.
Sec. 405. Executory contracts and unexpired leases.
Sec. 406. Creditors and equity security holders committees.
Sec. 407. Amendment to section 546 of title 11, United States Code.
Sec. 408. Limitation.
Sec. 409. Amendment to section 330(a) of title 11, United States Code.
Sec. 410. Postpetition disclosure and solicitation.
Sec. 411. Preferences.
Sec. 412. Venue of certain proceedings.
Sec. 413. Period for filing plan under chapter 11.
Sec. 414. Fees arising from certain ownership interests.
Sec. 415. Creditor representation at first meeting of creditors.
Sec. 416. Definition of disinterested person.
Sec. 417. Factors for compensation of professional persons.
Sec. 418. Appointment of elected trustee.
Sec. 419. Utility service.
Sec. 420. Bankruptcy fees.
Sec. 421. More complete information regarding assets of the estate.
Subtitle B--Small Business Bankruptcy Provisions
Sec. 431. Flexible rules for disclosure statement and plan.
Sec. 432. Definitions; effect of discharge.
Sec. 433. Standard form disclosure statement and plan.
Sec. 434. Uniform national reporting requirements.
Sec. 435. Uniform reporting rules and forms for small business cases.
Sec. 436. Duties in small business cases.
Sec. 437. Plan filing and confirmation deadlines.
Sec. 438. Plan confirmation deadline.
Sec. 439. Duties of the United States trustee.
Sec. 440. Scheduling conferences.
Sec. 441. Serial filer provisions.
Sec. 442. Expanded grounds for dismissal or conversion and appointment
of trustee.
Sec. 443. Study of operation of title 11, United States Code, with
respect to small businesses.
Sec. 444. Payment of interest.
Sec. 445. Technical correction.
TITLE V--MUNICIPAL BANKRUPTCY PROVISIONS
Sec. 501. Petition and proceedings related to petition.
Sec. 502. Applicability of other sections to chapter 9.
TITLE VI--IMPROVED BANKRUPTCY STATISTICS AND DATA
Sec. 601. Audit procedures.
Sec. 602. Improved bankruptcy statistics.
Sec. 603. Uniform rules for the collection of bankruptcy data.
Sec. 604. Sense of Congress regarding availability of bankruptcy data.
TITLE VII--BANKRUPTCY TAX PROVISIONS
Sec. 701. Treatment of certain liens.
Sec. 702. Treatment of fuel tax claims.
Sec. 703. Notice of request for a determination of taxes.
Sec. 704. Rate of interest on tax claims.
Sec. 705. Priority of tax claims.
Sec. 706. Priority property taxes incurred.
Sec. 707. No discharge of fraudulent taxes in chapter 13.
Sec. 708. No discharge of fraudulent taxes in chapter 11.
Sec. 709. Stay of tax proceedings limited to prepetition taxes.
Sec. 710. Periodic payment of taxes in chapter 11 cases.
Sec. 711. Avoidance of statutory tax liens prohibited.
Sec. 712. Payment of taxes in the conduct of business.
Sec. 713. Tardily filed priority tax claims.
Sec. 714. Income tax returns prepared by tax authorities.
Sec. 715. Discharge of the estate's liability for unpaid taxes.
Sec. 716. Requirement to file tax returns to confirm chapter 13 plans.
Sec. 717. Standards for tax disclosure.
Sec. 718. Setoff of tax refunds.
Sec. 719. Special provisions related to the treatment of State and
local taxes.
Sec. 720. Dismissal for failure to timely file tax returns.
TITLE VIII--ANCILLARY AND OTHER CROSS-BORDER CASES
Sec. 801. Amendment to add chapter 15 to title 11, United States Code.
Sec. 802. Amendments to other chapters in title 11, United States Code.
Sec. 803. Claims relating to insurance deposits in cases ancillary to
foreign proceedings.
TITLE IX--FINANCIAL CONTRACT PROVISIONS
Sec. 901. Bankruptcy Code amendments.
Sec. 902. Damage measure.
Sec. 903. Asset-backed securitizations.
Sec. 904. Effective date; application of amendments.
TITLE X--PROTECTION OF FAMILY FARMERS AND FAMILY FISHERMEN
Sec. 1001. Reenactment of chapter 12.
Sec. 1002. Debt limit increase.
Sec. 1003. Elimination of requirement that family farmer and spouse
receive over 50 percent of income from
farming operation in year prior to
bankruptcy.
Sec. 1004. Certain claims owed to governmental units.
Sec. 1005. Prohibition of retroactive assessment of disposable income.
Sec. 1006. Family fishermen.
TITLE XI--HEALTH CARE AND EMPLOYEE BENEFITS
Sec. 1101. Definitions.
Sec. 1102. Disposal of patient records.
Sec. 1103. Administrative expense claim for costs of closing a health
care business.
Sec. 1104. Appointment of ombudsman to act as patient advocate.
Sec. 1105. Debtor in possession; duty of trustee to transfer patients.
Sec. 1106. Establishment of policy and protocols relating to
bankruptcies of health care businesses.
Sec. 1107. Exclusion from program participation not subject to
automatic stay.
TITLE XII--TECHNICAL AMENDMENTS
Sec. 1201. Definitions.
Sec. 1202. Adjustment of dollar amounts.
Sec. 1203. Extension of time.
Sec. 1204. Technical amendments.
Sec. 1205. Penalty for persons who negligently or fraudulently prepare
bankruptcy petitions.
Sec. 1206. Limitation on compensation of professional persons.
Sec. 1207. Effect of conversion.
Sec. 1208. Allowance of administrative expenses.
Sec. 1209. Exceptions to discharge.
Sec. 1210. Effect of discharge.
Sec. 1211. Protection against discriminatory treatment.
Sec. 1212. Property of the estate.
Sec. 1213. Preferences.
Sec. 1214. Postpetition transactions.
Sec. 1215. Disposition of property of the estate.
Sec. 1216. General provisions.
Sec. 1217. Abandonment of railroad line.
Sec. 1218. Contents of plan.
Sec. 1219. Discharge under chapter 12.
Sec. 1220. Bankruptcy cases and proceedings.
Sec. 1221. Knowing disregard of bankruptcy law or rule.
Sec. 1222. Transfers made by nonprofit charitable corporations.
Sec. 1223. Protection of valid purchase money security interests.
Sec. 1224. Extensions.
Sec. 1225. Bankruptcy judgeships.
Sec. 1226. Family fishermen.
Sec. 1227. Compensating trustees.
Sec. 1228. Amendment to section 362 of title 11, United States Code.
Sec. 1229. Provision of electronic FTC pamphlet with electronic credit
card applications and solicitations.
Sec. 1230. No bankruptcy for insolvent political committees.
Sec. 1231. Federal election law fines and penalties as nondischargeable
debt.
Sec. 1232. Prohibition on certain retroactive finance charges.
Sec. 1233. Sense of Senate concerning credit worthiness.
Sec. 1234. Judicial education.
Sec. 1235. United States trustee program filing fee increase.
Sec. 1236. Providing requested tax documents to the court.
Sec. 1237. Definition of family farmer.
Sec. 1238. Encouraging creditworthiness.
Sec. 1239. Property no longer subject to redemption.
Sec. 1240. Availability of toll-free access to information.
TITLE XIII--GENERAL EFFECTIVE DATE; APPLICATION OF AMENDMENTS
Sec. 1301. Effective date; application of amendments.
TITLE XIV--FINANCIAL INSTITUTIONS INSOLVENCY IMPROVEMENT
Sec. 1401. Short title.
Sec. 1402. Treatment of certain agreements by conservators or receivers
of insured depository institutions.
Sec. 1403. Authority of the corporation with respect to failed and
failing institutions.
Sec. 1404. Amendments relating to transfers of qualified financial
contracts.
Sec. 1405. Amendments relating to disaffirmance or repudiation of
qualified financial contracts.
Sec. 1406. Clarifying amendment relating to master agreements.
Sec. 1407. Federal Deposit Insurance Corporation Improvement Act of
1991.
Sec. 1408. Recordkeeping requirements.
Sec. 1409. Exemptions from contemporaneous execution requirement.
Sec. 1410. SIPC stay.
Sec. 1411. Federal Reserve collateral requirements.
Sec. 1412. Effective date; application of amendments.
TITLE XV--METHAMPHETAMINE AND OTHER CONTROLLED SUBSTANCES
Sec. 1501. Short title.
Subtitle A--Methamphetamine Production, Trafficking, and Abuse
Chapter 1--Criminal Penalties
Sec. 1511. Enhanced punishment of amphetamine laboratory operations.
Sec. 1512. Enhanced punishment of amphetamine or methamphetamine
laboratory operators.
Sec. 1513. Mandatory restitution for violations of Controlled
Substances Act and Controlled Substances
Import and Export Act relating to
amphetamine and methamphetamine.
Sec. 1514. Methamphetamine paraphernalia.
Chapter 2--Enhanced Law Enforcement
Sec. 1521. Environmental hazards associated with illegal manufacture of
amphetamine and methamphetamine.
Sec. 1522. Reduction in retail sales transaction threshold for non-safe
harbor products containing pseudoephedrine
or phenlypropanolamine.
Sec. 1523. Training for Drug Enforcement Administration and State and
local law enforcement personnel relating to
clandestine laboratories.
Sec. 1524. Combating methamphetamine and amphetamine in high intensity
drug trafficking areas.
Sec. 1525. Combating amphetamine and methamphetamine manufacturing and
trafficking.
Chapter 3--Abuse Prevention and Treatment
Sec. 1531. Expansion of methamphetamine research.
Sec. 1532. Methamphetamine and amphetamine treatment initiative by
Center for Substance Abuse Treatment.
Sec. 1533. Expansion of methamphetamine abuse prevention efforts.
Sec. 1534. Study of methamphetamine treatment.
Chapter 4--Reports
Sec. 1541. Reports on consumption of methamphetamine and other illicit
drugs in rural areas, metropolitan areas,
and consolidated metropolitan areas.
Sec. 1542. Report on diversion of ordinary over-the-counter
pseudoephedrine and phenylpropanolamine
products.
Subtitle B--Controlled Substances Generally
Chapter 1--Criminal Matters
Sec. 1551. Enhanced punishment for trafficking in list I chemicals.
Sec. 1552. Mail order requirements.
Sec. 1553. Increased penalties for distributing drugs to minors.
Sec. 1554. Increased penalty for drug trafficking in or near a school
or other protected location.
Sec. 1555. Advertisments for drug paraphernalia and schedule I
controlled substances.
Sec. 1556. Theft and transportation of anhydrous ammonia for purposes
of illicit production of controlled
substances.
Sec. 1557. Criminal prohibition on distribution of certain information
relating to the manufacture of controlled
substances.
Chapter 2--Other Matters
Sec. 1561. Waiver authority for physicians who dispense or prescribe
certain narcotic drugs for maintenance
treatment or detoxification treatment.
Subtitle C--Cocaine Powder
Sec. 1571. Short title.
Sec. 1572. Sentencing for violations involving cocaine powder.
Subtitle D--Education Matters
Sec. 1581. Safe schools.
Sec. 1582. Student safety and family school choice.
Sec. 1583. Transfer of revenues.
Subtitle E--Miscellaneous
Sec. 1591. Notice; clarification.
Sec. 1592. Domestic terrorism assessment and recovery.
Sec. 1593. Antidrug messages on Federal Government Internet websites.
Sec. 1594. State schools.
Sec. 1595. Student safety and family school choice.
Sec. 1596. Transfer of revenues.
Sec. 1597. Increased penalties for distributing drugs to minors.
Sec. 1598. Increased penalty for drug trafficking in or near a school
or other protected location.
Sec. 1599. Severability.
TITLE XVI--PROTECTION FROM THE IMPACT OF BANKRUPTCY OF CERTAIN ELECTRIC
UTILITIES
Sec. 1601. Short title.
Sec. 1602. Findings and purposes.
Sec. 1603. Unlawful contract and amended contract.
Sec. 1604. Exclusive enforcement.
TITLE VII--CONSUMER CREDIT DISCLOSURE
Sec. 1701. Enhanced disclosures under an open end credit plan.
Sec. 1702. Enhanced disclosure for credit extensions secured by a
dwelling.
Sec. 1703. Disclosures related to ``introductory rates''.
Sec. 1704. Internet-based credit card solicitations.
Sec. 1705. Disclosures related to late payment deadlines and penalties.
Sec. 1706. Prohibition on certain actions for failure to incur finance
charges.
Sec. 1707. Dual use debit card.
Sec. 1708. Study of bankruptcy impact of credit extended to dependent
students.
TITLE I--NEEDS-BASED BANKRUPTCY
SEC. 101. CONVERSION.
Section 706(c) of title 11, United States Code, is amended by
inserting ``or consents to'' after ``requests''.
SEC. 102. DISMISSAL OR CONVERSION.
(a) In General.--Section 707 of title 11, United States Code, is
amended--
(1) by striking the section heading and inserting the
following:
``Sec. 707. Dismissal of a case or conversion to a case under chapter
11 or 13'';
and
(2) in subsection (b)--
(A) by inserting ``(1)'' after ``(b)'';
(B) in paragraph (1), as redesignated by
subparagraph (A) of this paragraph--
(i) in the first sentence--
(I) by striking ``but not at the
request or suggestion'' and inserting
``, panel trustee or'';
(II) by inserting ``, or, with the
debtor's consent, convert such a case
to a case under chapter 11 or 13 of
this title,'' after ``consumer debts'';
and
(III) by striking ``substantial
abuse'' and inserting ``abuse''; and
(ii) by striking the next to last sentence;
and
(C) by adding at the end the following:
``(2)(A)(i) In considering under paragraph (1) whether the granting
of relief would be an abuse of the provisions of this chapter, the
court shall presume abuse exists if the debtor's current monthly income
reduced by the amounts determined under clauses (ii), (iii), and (iv),
and multiplied by 60 is not less than the lesser of--
``(I) 25 percent of the debtor's nonpriority unsecured
claims in the case; or
``(II) $15,000.
``(ii)(I) The debtor's monthly expenses shall be the applicable
monthly (excluding payments for debts) expenses under standards issued
by the Internal Revenue Service for the area in which the debtor
resides, as in effect on the date of the entry of the order for relief,
for the debtor, the dependents of the debtor, and the spouse of the
debtor in a joint case, if the spouse is not otherwise a dependent. In
addition, the debtor's monthly expenses shall include the debtor's
reasonably necessary expenses incurred to maintain the safety of the
debtor and the family of the debtor from family violence as identified
under section 309 of the Family Violence Prevention and Services Act
(42 U.S.C. 10408), or other applicable Federal law. The expenses
included in the debtor's monthly expenses described in the preceding
sentence shall be kept confidential by the court.
``(II) In addition, the debtor's monthly expenses may include, if
applicable, the continuation of actual expenses paid by the debtor that
are reasonable and necessary for care and support of an elderly,
chronically ill, or disabled household member or member of the debtor's
immediate family (including parents, grandparents, and siblings of the
debtor, the dependents of the debtor, and the spouse of the debtor in a
joint case) who is not a dependent and who is unable to pay for such
reasonable and necessary expenses.
``(iii) The debtor's average monthly payments on account of secured
debts shall be calculated as--
``(I) the sum of--
``(aa) the total of all amounts scheduled as
contractually due to secured creditors in each month of
the 60 months following the date of the petition; and
``(bb) any additional payments to secured creditors
necessary for the debtor, in filing a plan under
chapter 13 of this title, to maintain possession of the
debtor's primary residence, motor vehicle, or other
property necessary for the support of the debtor and
the debtor's dependents, that serves as collateral for
secured debts; divided by
``(II) 60.
``(iv) The debtor's expenses for payment of all priority claims
(including priority child support and alimony claims) shall be
calculated as--
``(I) the total amount of debts entitled to priority;
divided by
``(II) 60.
``(B)(i) In any proceeding brought under this subsection, the
presumption of abuse may be rebutted by demonstrating special
circumstances that justify additional expenses or adjustments of
current monthly total income. In order to establish special
circumstances, the debtor shall be required to--
``(I) itemize each additional expense or adjustment of
income; and
``(II) provide--
``(aa) documentation for such expenses; and
``(bb) a detailed explanation of the special
circumstances that make such expenses necessary and
reasonable.
``(ii) The debtor, and the attorney for the debtor if the debtor
has an attorney, shall attest under oath to the accuracy of any
information provided to demonstrate that additional expenses or
adjustments to income are required.
``(iii) The presumption of abuse may be rebutted if the additional
expenses or adjustments to income referred to in clause (i) cause the
product of the debtor's current monthly income reduced by the amounts
determined under clauses (ii), (iii), and (iv) of subparagraph (A)
multiplied by 60 to be less than the lesser of--
``(I) 25 percent of the debtor's nonpriority unsecured
claims; or
``(II) $15,000.
``(C)(i) As part of the schedule of current income and expenditures
required under section 521, the debtor shall include a statement of the
debtor's current monthly income, and the calculations that determine
whether a presumption arises under subparagraph (A)(i), that shows how
each such amount is calculated.
``(ii) The Supreme Court shall promulgate rules under section 2075
of title 28, that prescribe a form for a statement under clause (i) and
may provide general rules on the content of the statement.
``(3) In considering under paragraph (1) whether the granting of
relief would be an abuse of the provisions of this chapter in a case in
which the presumption in subparagraph (A)(i) of such paragraph does not
apply or has been rebutted, the court shall consider--
``(A) whether the debtor filed the petition in bad faith;
or
``(B) the totality of the circumstances (including whether
the debtor seeks to reject a personal services contract and the
financial need for such rejection as sought by the debtor) of
the debtor's financial situation demonstrates abuse.''.
(b) Definition.--Title 11, United States Code, is amended--
(1) in section 101, by inserting after paragraph (10) the
following:
``(10A) `current monthly income'--
``(A) means the average monthly income from all
sources which the debtor, or in a joint case, the
debtor and the debtor's spouse, receive without regard
to whether the income is taxable income, derived during
the 180-day period preceding the date of determination;
and
``(B) includes any amount paid by any entity other
than the debtor (or, in a joint case, the debtor and
the debtor's spouse), on a regular basis to the
household expenses of the debtor or the debtor's
dependents (and, in a joint case, the debtor's spouse
if not otherwise a dependent), but excludes benefits
received under the Social Security Act;''; and
(2) in section 704--
(A) by inserting ``(a)'' before ``The trustee
shall--''; and
(B) by adding at the end the following:
``(b)(1) With respect to an individual debtor under this chapter--
``(A) the United States trustee or bankruptcy administrator
shall review all materials filed by the debtor and, not later
than 10 days before the first meeting of creditors, file with
the court a statement as to whether the debtor's case would be
presumed to be an abuse under section 707(b); and
``(B) not later than 5 days after receiving a statement
under subparagraph (A), the court shall provide a copy of the
statement to all creditors.
``(2) The United States trustee or bankruptcy administrator shall
not later than 30 days after receiving a statement filed under
paragraph (1) file a motion to dismiss or convert under section 707(b),
or file a statement setting forth the reasons the United States trustee
or bankruptcy administrator does not believe that such a motion would
be appropriate, if based on the filing of such statement with the
court, the United States trustee or bankruptcy administrator determines
that the debtor's case should be presumed to be an abuse under section
707(b) and the product of the debtor's current monthly income,
multiplied by 12 is not less than--
``(A) the highest national or applicable State median
family income reported for a family of equal or lesser size,
whichever is greater; or
``(B) in the case of a household of 1 person, the national
or applicable State median household income for 1 earner,
whichever is greater.
``(3) In any case in which a motion to dismiss or convert, or a
statement is required to be filed by this subsection, the United States
trustee or bankruptcy administrator may decline to file a motion to
dismiss or convert pursuant to section 704(b)(2) or if the product of
the debtor's current monthly income multiplied by 12--
``(A)(i) exceeds 100 percent, but does not exceed 150
percent of the national or applicable State median household
income reported for a household of equal size, whichever is
greater; or
``(ii) in the case of a household of 1 person, exceeds 100
percent but does not exceed 150 percent of the national or
applicable State median household income reported for 1 earner,
whichever is greater; and
``(B) the product of the debtor's current monthly income
(reduced by the amounts determined under section
707(b)(2)(A)(ii)) (except for the amount calculated under the
other necessary expenses standard issued by the Internal
Revenue Service and section 707(b)(2)(A) (iii) and (iv))
multiplied by 60 is less than the greater of--
``(i) 25 percent of the debtor's nonpriority
unsecured claims in the case; or
``(ii) $15,000.
``(4)(A) The court shall order the counsel for the debtor to
reimburse the panel trustee for all reasonable costs in prosecuting a
motion brought under section 707(b), including reasonable attorneys'
fees, if--
``(i) a panel trustee appointed under section 586(a)(1) of
title 28 brings a motion for dismissal or conversion under this
subsection; and
``(ii) the court--
``(I) grants that motion; and
``(II) finds that the action of the counsel for the
debtor in filing under this chapter was frivolous.
``(B) If the court finds that the attorney for the debtor violated
Rule 9011, at a minimum, the court shall order--
``(i) the assessment of an appropriate civil penalty
against the counsel for the debtor; and
``(ii) the payment of the civil penalty to the panel
trustee or the United States trustee.
``(C) In the case of a petition referred to in subparagraph (B),
the signature of an attorney shall constitute a certificate that the
attorney has--
``(i) performed a reasonable investigation into the
circumstances that gave rise to the petition; and
``(ii) determined that the petition--
``(I) is well grounded in fact; and
``(II) is warranted by existing law or a good faith
argument for the extension, modification, or reversal
of existing law and does not constitute an abuse under
paragraph (1).
``(5)(A) Except as provided in subparagraph (B) and subject to
paragraph (6), the court may award a debtor all reasonable costs in
contesting a motion brought by a party in interest (other than a panel
trustee or United States trustee) under this subsection (including
reasonable attorneys' fees) if--
``(i) the court does not grant the motion; and
``(ii) the court finds that--
``(I) the position of the party that brought the
motion was not substantially justified; or
``(II) the party brought the motion solely for the
purpose of coercing a debtor into waiving a right
guaranteed to the debtor under this title.
``(B) A party in interest that has a claim of an aggregate amount
less than $1,000 shall not be subject to subparagraph (A).
``(6)(A) Only the judge, United States trustee, bankruptcy
administrator, or panel trustee may bring a motion under section
707(b), if the current monthly income of the debtor, or in a joint
case, the debtor and the debtor's spouse, as of the date of the order
for relief, when multiplied by 12, is equal to or less than--
``(i) the national or applicable State median family income
reported for a family of equal or lesser size, whichever is
greater; or
``(ii) in the case of a household of 1 person, the national
or applicable State median household income last reported by
the Bureau of the Census for 1 earner, whichever is greater.
``(B) Notwithstanding subparagraph (A), the national or applicable
State median family income for a family of more than 4 individuals
shall be the national or applicable State median family income last
reported by the Bureau of the Census for a family of 4 individuals,
whichever is greater, plus $583 for each additional member of that
family.''.
(c) Nonlimitation of Information.--Nothing in this title shall
limit the ability of a creditor to provide information to a judge,
United States trustee, bankruptcy administrator or panel trustee.
(d) Dismissal for Certain Crimes.--Section 707 of title 11, United
States Code, as amended by subsection (a) of this section, is amended
by adding at the end the following:
``(c)(1) In this subsection--
``(A) the term `crime of violence' has the meaning given
that term in section 16 of title 18; and
``(B) the term `drug trafficking crime' has the meaning
given that term in section 924(c)(2) of title 18.
``(2) Except as provided in paragraph (3), after notice and a
hearing, the court, on a motion by the victim of a crime of violence or
a drug trafficking crime, or at the request of a party in interest,
shall dismiss a voluntary case filed by an individual debtor under this
chapter if that individual was convicted of that crime.
``(3) The court may not dismiss a case under paragraph (2) if the
debtor establishes by a preponderance of the evidence that the filing
of a case under this chapter is necessary to satisfy a claim for a
domestic support obligation.''.
(e) Clerical Amendment.--The table of sections for chapter 7 of
title 11, United States Code, is amended by striking the item relating
to section 707 and inserting the following:
``707. Dismissal of a case or conversion to a case under chapter 11 or
13.''.
SEC. 103. FINDINGS AND STUDY.
(a) Findings.--Congress finds that the Secretary of the Treasury
has the inherent authority to alter the Internal Revenue Service
standards established to set guidelines for repayment plans as needed
to accommodate their use under section 707(b) of title 11, United
States Code.
(b) Study.--
(1) In general.--Not later than 3 years after the date of
enactment of this Act, the Secretary of the Treasury, in
consultation with the Director of the Executive Office of
United States Trustees, shall submit a report to the Committee
on the Judiciary of the Senate and the Committee on the
Judiciary of the House of Representatives containing the
findings of the Secretary concerning the utilization of
Internal Revenue Service standards for determining--
(A) the current monthly expenses of a debtor under
section 707(b) of title 11, United States Code; and
(B) the impact that the application of those
standards has had on debtors and on the bankruptcy
courts.
(2) Recommendation.--The report under paragraph (1) may
include recommendations for amendments to title 11, United
States Code, that are consistent with the findings of the
Secretary of the Treasury under paragraph (1).
SEC. 104. NOTICE OF ALTERNATIVES.
Section 342(b) of title 11, United States Code, is amended to read
as follows:
``(b)(1) Before the commencement of a case under this title by an
individual whose debts are primarily consumer debts, that individual
shall be given or obtain (as required in section 521(a)(1), as part of
the certification process under subchapter I of chapter 5) a written
notice prescribed by the United States trustee for the district in
which the petition is filed under section 586 of title 28.
``(2) The notice shall contain the following:
``(A) A brief description of chapters 7, 11, 12, and 13 and
the general purpose, benefits, and costs of proceeding under
each of those chapters.
``(B) A brief description of services that may be available
to that individual from a nonprofit budget and credit
counseling agency that is approved by the United States trustee
for that district.''.
SEC. 105. DEBTOR FINANCIAL MANAGEMENT TRAINING TEST PROGRAM.
(a) Development of Financial Management and Training Curriculum and
Materials.--The Director of the Executive Office for United States
Trustees (in this section referred to as the ``Director'') shall--
(1) consult with a wide range of individuals who are
experts in the field of debtor education, including trustees
who are appointed under chapter 13 of title 11, United States
Code, and who operate financial management education programs
for debtors; and
(2) develop a financial management training curriculum and
materials that may be used to educate individual debtors
concerning how to better manage their finances.
(b) Test.--
(1) In general.--The Director shall select 3 judicial
districts of the United States in which to test the
effectiveness of the financial management training curriculum
and materials developed under subsection (a).
(2) Availability of curriculum and materials.--For a 1-year
period beginning not later than 270 days after the date of
enactment of this Act, the curriculum and materials referred to
in paragraph (1) shall be made available by the Director,
directly or indirectly, on request to individual debtors in
cases filed during that 1-year period under chapter 7 or 13 of
title 11, United States Code.
(c) Evaluation.--
(1) In general.--During the 1-year period referred to in
subsection (b), the Director shall evaluate the effectiveness
of--
(A) the financial management training curriculum
and materials developed under subsection (a); and
(B) a sample of existing consumer education
programs such as those described in the report of the
National Bankruptcy Review Commission issued on October
20, 1997, that are representative of consumer education
programs carried out by--
(i) the credit industry;
(ii) trustees serving under chapter 13 of
title 11, United States Code; and
(iii) consumer counseling groups.
(2) Report.--Not later than 3 months after concluding the
evaluation under paragraph (1), the Director shall submit a
report to the Speaker of the House of Representatives and the
President pro tempore of the Senate, for referral to the
appropriate committees of Congress, containing the findings of
the Director regarding the effectiveness of such curriculum,
such materials, and such programs.
SEC. 106. CREDIT COUNSELING.
(a) Who May Be a Debtor.--Section 109 of title 11, United States
Code, is amended by adding at the end the following:
``(h)(1) Subject to paragraphs (2) and (3), and notwithstanding any
other provision of this section, an individual may not be a debtor
under this title unless that individual has, during the 180-day period
preceding the date of filing of the petition of that individual,
received from an approved nonprofit budget and credit counseling agency
described in section 111(a) an individual or group briefing (including
a briefing conducted by telephone or on the Internet) that outlined the
opportunities for available credit counseling and assisted that
individual in performing a related budget analysis.
``(2)(A) Paragraph (1) shall not apply with respect to a debtor who
resides in a district for which the United States trustee or bankruptcy
administrator of the bankruptcy court of that district determines that
the approved nonprofit budget and credit counseling agency for that
district is not reasonably able to provide adequate services to the
additional individuals who would otherwise seek credit counseling from
that agency by reason of the requirements of paragraph (1).
``(B) Each United States trustee or bankruptcy administrator that
makes a determination described in subparagraph (A) shall review that
determination not later than 1 year after the date of that
determination, and not less frequently than every year thereafter.
Notwithstanding the preceding sentence, a nonprofit budget and credit
counseling service may be disapproved by the United States trustee or
bankruptcy administrator at any time.
``(3)(A) Subject to subparagraph (B), the requirements of paragraph
(1) shall not apply with respect to a debtor who submits to the court a
certification that--
``(i) describes exigent circumstances that merit a waiver
of the requirements of paragraph (1);
``(ii) states that the debtor requested credit counseling
services from an approved nonprofit budget and credit
counseling agency, but was unable to obtain the services
referred to in paragraph (1) during the 5-day period beginning
on the date on which the debtor made that request; and
``(iii) is satisfactory to the court.
``(B) With respect to a debtor, an exemption under subparagraph (A)
shall cease to apply to that debtor on the date on which the debtor
meets the requirements of paragraph (1), but in no case may the
exemption apply to that debtor after the date that is 30 days after the
debtor files a petition, except that the court, for cause, may order an
additional 15 days.''.
(b) Chapter 7 Discharge.--Section 727(a) of title 11, United States
Code, is amended--
(1) in paragraph (9), by striking ``or'' at the end;
(2) in paragraph (10), by striking the period and inserting
``; or''; and
(3) by adding at the end the following:
``(11) after the filing of the petition, the debtor failed
to complete an instructional course concerning personal
financial management described in section 111.''.
(c) Chapter 13 Discharge.--Section 1328 of title 11, United States
Code, is amended by adding at the end the following:
``(g) The court shall not grant a discharge under this section to a
debtor, unless after filing a petition the debtor has completed an
instructional course concerning personal financial management described
in section 111.
``(h) Subsection (g) shall not apply with respect to a debtor who
resides in a district for which the United States trustee or bankruptcy
administrator of the bankruptcy court of that district determines that
the approved instructional courses are not adequate to service the
additional individuals who would be required to complete the
instructional course by reason of the requirements of this section.
``(i) Each United States trustee or bankruptcy administrator that
makes a determination described in subsection (h) shall review that
determination not later than 1 year after the date of that
determination, and not less frequently than every year thereafter.''.
(d) Debtor's Duties.--Section 521 of title 11, United States Code,
is amended--
(1) by inserting ``(a)'' before ``The debtor shall--''; and
(2) by adding at the end the following:
``(b) In addition to the requirements under subsection (a), an
individual debtor shall file with the court--
``(1) a certificate from the approved nonprofit budget and
credit counseling agency that provided the debtor services
under section 109(h); and
``(2) a copy of the debt repayment plan, if any, developed
under section 109(h) through the approved nonprofit budget and
credit counseling agency referred to in paragraph (1).''.
(e) General Provisions.--
(1) In general.--Chapter 1 of title 11, United States Code,
is amended by adding at the end the following:
``Sec. 111. Nonprofit budget and credit counseling agencies; financial
management instructional courses
``(a) The clerk of each district shall maintain a list of nonprofit
budget and credit counseling ageancies that provide 1 or more programs
described in section 109(h) and a list of instructional courses
concerning personal financial management that have been approved by--
``(1) the United States trustee; or
``(2) the bankruptcy administrator for the district.
``(b) For inclusion on the approved list under subsection (a), the
United States trustee or bankruptcy administrator shall require the
credit counseling service, at a minimum--
``(1) to be a nonprofit budget and credit counseling
agency, the majority of the board of directors of which--
``(A) are not employed by the agency; and
``(B) will not directly or indirectly benefit
financially from the outcome of a credit counseling
session;
``(2) if a fee is charged for counseling services, to
charge a reasonable fee, and to provide services without regard
to ability to pay the fee;
``(3) to provide for safekeeping and payment of client
funds, including an annual audit of the trust accounts and
appropriate employee bonding;
``(4) to provide full disclosures to clients, including
funding sources, counselor qualifications, and possible impact
on credit reports;
``(5) to provide adequate counseling with respect to client
credit problems that includes an analysis of their current
situation, what brought them to that financial status, and how
they can develop a plan to handle the problem without incurring
negative amortization of their debts; and
``(6) to provide trained counselors who receive no
commissions or bonuses based on the counseling session outcome.
``(c)(1) No credit counseling service may provide to a credit
reporting agency information concerning whether an individual debtor
has received or sought instruction concerning personal financial
management from the credit counseling service.
``(2) A credit counseling service that willfully or negligently
fails to comply with any requirement under this title with respect to a
debtor shall be liable for damages in an amount equal to the sum of--
``(A) any actual damages sustained by the debtor as a
result of the violation; and
``(B) any court costs or reasonable attorneys' fees (as
determined by the court) incurred in an action to recover those
damages.''.
(2) Clerical amendment.--The table of sections for chapter
1 of title 11, United States Code, is amended by adding at the
end the following:
``111. Nonprofit budget and credit counseling agencies; financial
management instructional courses.''.
(f) Limitation.--Section 362 of title 11, United States Code, is
amended by adding at the end the following:
``(i) If a case commenced under chapter 7, 11, or 13 is dismissed
due to the creation of a debt repayment plan, for purposes of
subsection (c)(3), any subsequent case commenced by the debtor under
any such chapter shall not be presumed to be filed not in good
faith.''.
TITLE II--ENHANCED CONSUMER PROTECTION
Subtitle A--Penalties for Abusive Creditor Practices
SEC. 201. PROMOTION OF ALTERNATIVE DISPUTE RESOLUTION.
(a) Reduction of Claim.--Section 502 of title 11, United States
Code, is amended by adding at the end the following:
``(k)(1) The court, on the motion of the debtor and after a
hearing, may reduce a claim filed under this section based in whole on
unsecured consumer debts by not more than 20 percent of the claim, if--
``(A) the claim was filed by a creditor who unreasonably
refused to negotiate a reasonable alternative repayment
schedule proposed by an approved credit counseling agency
acting on behalf of the debtor;
``(B) the offer of the debtor under subparagraph (A)--
``(i) was made at least 60 days before the filing
of the petition; and
``(ii) provided for payment of at least 60 percent
of the amount of the debt over a period not to exceed
the repayment period of the loan, or a reasonable
extension thereof; and
``(C) no part of the debt under the alternative repayment
schedule is nondischargeable.
``(2) The debtor shall have the burden of proving, by clear and
convincing evidence, that--
``(A) the creditor unreasonably refused to consider the
debtor's proposal; and
``(B) the proposed alternative repayment schedule was made
in the 60-day period specified in paragraph (1)(B)(i).''.
(b) Limitation on Avoidability.--Section 547 of title 11, United
States Code, is amended by adding at the end the following:
``(h) The trustee may not avoid a transfer if such transfer was
made as a part of an alternative repayment plan between the debtor and
any creditor of the debtor created by an approved credit counseling
agency.''.
SEC. 202. EFFECT OF DISCHARGE.
Section 524 of title 11, United States Code, is amended by adding
at the end the following:
``(i) The willful failure of a creditor to credit payments received
under a plan confirmed under this title (including a plan of
reorganization confirmed under chapter 11 of this title) in the manner
required by the plan (including crediting the amounts required under
the plan) shall constitute a violation of an injunction under
subsection (a)(2).''.
SEC. 203. DISCOURAGING ABUSE OF REAFFIRMATION PRACTICES.
(a) In General.--Section 524 of title 11, United States Code, as
amended by section 202 of this Act, is amended--
(1) in subsection (c) by striking paragraph (2) and
inserting the following:
``(2) the debtor received the disclosures described in
subsection (i) at or before the time the debtor signed the
agreement.'';
(2) by inserting at the end of the section the following:
``(i)(1) The disclosures required under subsection (c) paragraph
(2) of this section shall consist of the disclosure statement described
in paragraph (3), completed as required in that paragraph, together
with the agreement, statement, declaration, motion and order described,
respectively, in paragraphs (4) through (8) of this subsection, and
shall be the only disclosures required in connection with the
reaffirmation.
``(2) Disclosures made under this paragraph shall be made clearly
and conspicuously and in writing. The terms `Amount Reaffirmed' and
`Annual Percentage Rate' shall be disclosed more conspicuously than
other terms, data or information provided in connection with this
disclosure, except that the phrases `Before agreeing to reaffirm a
debt, review these important disclosures' and `Summary of Reaffirmation
Agreement' may be equally conspicuous. Disclosures may be made in a
different order and may use terminology different from that set forth
in paragraphs (2) through (8), except that the terms `Amount
Reaffirmed' and `Annual Percentage Rate' must be used where indicated.
``(3) The disclosure statement required under this paragraph shall
consist of the following:
``(A) The statement: `Part A: Before agreeing to reaffirm a
debt, review these important disclosures:';
``(B) Under the heading `Summary of Reaffirmation
Agreement', the statement: `This Summary is made pursuant to
the requirements of the Bankruptcy Code';
``(C) The `Amount Reaffirmed', using that term, which shall
be--
``(i) the total amount which the debtor agrees to
reaffirm, and
``(ii) the total of any other fees or cost accrued
as of the date of the disclosure statement.
``(D) In conjunction with the disclosure of the `Amount
Reaffirmed', the statements--
``(i) `The amount of debt you have agreed to
reaffirm'; and
``(ii) `Your credit agreement may obligate you to
pay additional amounts which may come due after the
date of this disclosure. Consult your credit
agreement.'.
``(E) The `Annual Percentage Rate', using that term, which
shall be disclosed as--
``(i) if, at the time the petition is filed, the
debt is open end credit as defined pursuant to the
Truth in Lending Act, title 15, United States Code,
section 1601 et. seq., then--
``(I) the annual percentage rate determined
pursuant to title 15, United States Code,
section 1637(b) (5) and (6), as applicable, as
disclosed to the debtor in the most recent
periodic statement prior to the agreement or,
if no such periodic statement has been provided
the debtor during the prior six months, the
annual percentage rate as it would have been so
disclosed at the time the disclosure statement
is given the debtor, or to the extent this
annual percentage rate is not readily available
or not applicable, then
``(II) the simple interest rate applicable
to the amount reaffirmed as of the date the
disclosure statement is given to the debtor, or
if different simple interest rates apply to
different balances, the simple interest rate
applicable to each such balance, identifying
the amount of each such balance included in the
amount reaffirmed, or
``(III) if the entity making the disclosure
elects, to disclose the annual percentage rate
under (I) and the simple interest rate under
(II);
``(ii) if, at the time the petition is filed, the
debt is closed end credit as defined pursuant to the
Truth in Lending Act, title 15, United States Code,
section 1601 et seq., then--
``(I) the annual percentage rate pursuant
to title 15, United States Code, section
1638(a)(4) as disclosed to the debtor in the
most recent disclosure statement given the
debtor prior to the reaffirmation agreement
with respect to the debt, or, if no such
disclosure statement was provided the debtor,
the annual percentage rate as it would have
been so disclosed at the time the disclosure
statement is given the debtor, or to the extent
this annual percentage rate is not readily
available or not applicable, then
``(II) the simple interest rate applicable
to the amount reaffirmed as of the date the
disclosure statement is given the debtor, or if
different simple interest rates apply to
different balances, the simple interest rate
applicable to each such balance, identifying
the amount of such balance included in the
amount reaffirmed, or
``(III) if the entity making the disclosure
elects, to disclose the annual percentage rate
under (I) and the simple interest rate under
(II).
``(F) If the underlying debt transaction was disclosed as a
variable rate transaction on the most recent disclosure given
pursuant to the Truth in Lending Act, title 15, United States
Code, section 1601 et seq., by stating `The interest rate on
your loan may be a variable interest rate which changes from
time to time, so that the annual percentage rate disclosed here
may be higher or lower.'.
``(G) If the debt is secured by a security interest which
has not been waived in whole or in part or determined to be
void by a final order of the court at the time of the
disclosure, by disclosing that a security interest or lien in
goods or property is asserted over some or all of the
obligations you are reaffirming and listing the items and their
original purchase price that are subject to the asserted
security interest, or if not a purchase-money security interest
then listing by items or types and the original amount of the
loan.
``(H) At the election of the creditor, a statement of the
repayment schedule using one or a combination of the
following--
``(i) by making the statement: `Your first payment
in the amount $______ is due on ______ but the future
payment amount may be different. Consult your
reaffirmation or credit agreement, as applicable.', and
stating the amount of the first payment and the due
date of that payment in the places provided;
``(ii) by making the statement: `Your payment
schedule will be:', and describing the repayment
schedule with the number, amount and due dates or
period of payments scheduled to repay the obligations
reaffirmed to the extent then known by the disclosing
party; or
``(iii) by describing the debtor's repayment
obligations with reasonable specificity to the extent
then known by the disclosing party.
``(I) The following statement: `Note: When this disclosure
talks about what a creditor ``may'' do, it does not use the
word ``may'' to give the creditor specific permission. The word
``may'' is used to tell you what might occur if the law permits
the creditor to take the action. If you have questions about
your reaffirmation or what the law requires, talk to the
attorney who helped you negotiate this agreement. If you don't
have an attorney helping you, the judge will explain the effect
of your reaffirmation when the reaffirmation hearing is held.'.
``(J) The following additional statements:
```Reaffirming a debt is a serious financial decision. The law
requires you to take certain steps to make sure the decision is in your
best interest. If these steps are not completed, the reaffirmation
agreement is not effective, even though you have signed it.
```1. Read the disclosures in this Part A carefully.
Consider the decision to reaffirm carefully. Then, if you want
to reaffirm, sign the reaffirmation agreement in Part B (or you
may use a separate agreement you and your creditor agree on).
```2. Complete and sign Part D and be sure you can afford
to make the payments you are agreeing to make and have received
a copy of the disclosure statement and a completed and signed
reaffirmation agreement.
```3. If you were represented by an attorney during the
negotiation of the reaffirmation agreement, the attorney must
have signed the certification in Part C.
```4. If you were not represented by an attorney during the
negotiation of the reaffirmation agreement, you must have
completed and signed Part E.
```5. The original of this disclosure must be filed with
the court by you or your creditor. If a separate reaffirmation
agreement (other than the one in Part B) has been signed, it
must be attached.
```6. If you were represented by an attorney during the
negotiation of the reaffirmation agreement, your reaffirmation
agreement becomes effective upon filing with the court unless
the reaffirmation is presumed to be an undue hardship as
explained in Part D.
```7. If you were not represented by an attorney during the
negotiation of the reaffirmation agreement, it will not be
effective unless the court approves it. The court will notify
you of the hearing on your reaffirmation agreement. You must
attend this hearing in bankruptcy court where the judge will
review your agreement. The bankruptcy court must approve the
agreement as consistent with your best interests, except that
no court approval is required if the agreement is for a
consumer debt secured by a mortgage, deed of trust, security
deed or other lien on your real property, like your home.
```Your right to rescind a reaffirmation. You may rescind (cancel)
your reaffirmation at any time before the bankruptcy court enters a
discharge order or within 60 days after the agreement is filed with the
court, whichever is longer. To rescind or cancel, you must notify the
creditor that the agreement is canceled.
```What are your obligations if you reaffirm the debt? A reaffirmed
debt remains your personal legal obligation. It is not discharged in
your bankruptcy. That means that if you default on your reaffirmed debt
after your bankruptcy is over, your creditor may be able to take your
property or your wages. Otherwise, your obligations will be determined
by the reaffirmation agreement which may have changed the terms of the
original agreement. For example, if you are reaffirming an open end
credit agreement, the creditor may be permitted by that agreement and/
or applicable law to change the terms of the agreement in the future
under certain conditions.
```Are you required to enter into a reaffirmation agreement by any
law? No, you are not required to reaffirm a debt by any law. Only agree
to reaffirm a debt if it is in your best interest. Be sure you can
afford the payments you agree to make.
```What if your creditor has a security interest or lien? Your
bankruptcy discharge does not eliminate any lien on your property. A
``lien'' is often referred to as a security interest, deed of trust,
mortgage or security deed. Even if you do not reaffirm and your
personal liability on the debt is discharged, because of the lien your
creditor may still have the right to take the security property if you
do not pay the debt or default on it. If the lien is on an item of
personal property that is exempt under your State's law or that the
trustee has abandoned, you may be able to redeem the item rather than
reaffirm the debt. To redeem, you make a single payment to the creditor
equal to the current value of the security property, as agreed by the
parties or determined by the court.'.
``(4) The form of reaffirmation agreement required under this
paragraph shall consist of the following:
```Part B: Reaffirmation Agreement. I/we agree to reaffirm the
obligations arising under the credit agreement described below.
```Brief description of credit agreement:
```Description of any changes to the credit agreement made as part
of this reaffirmation agreement:
```Signature: Date:
```Borrower:
```Co-borrower, if also reaffirming:
```Accepted by creditor:
```Date of creditor acceptance:'.
``(5)(A) The declaration shall consist of the following:
```Part C: Certification by Debtor's Attorney (If Any).
```I hereby certify that (1) this agreement represents a fully
informed and voluntary agreement by the debtor(s); (2) this agreement
does not impose an undue hardship on the debtor or any dependent of the
debtor; and (3) I have fully advised the debtor of the legal effect and
consequences of this agreement and any default under this agreement.
```Signature of Debtor's Attorney: Date:'.
``(B) In the case of reaffirmations in which a presumption of undue
hardship has been established, the certification shall state that in
the opinion of the attorney, the debtor is able to make the payment.
``(6) The statement in support of reaffirmation agreement, which
the debtor shall sign and date prior to filing with the court, shall
consist of the following:
```Part D: Debtor's Statement in Support of Reaffirmation
Agreement.
```1. I believe this agreement will not impose an undue hardship on
my dependents or me. I can afford to make the payments on the
reaffirmed debt because my monthly income (take home pay plus any other
income received) is $______, and my actual current monthly expenses
including monthly payments on post-bankruptcy debt and other
reaffirmation agreements total $______, leaving $______ to make the
required payments on this reaffirmed debt. I understand that if my
income less my monthly expenses does not leave enough to make the
payments, this reaffirmation agreement is presumed to be an undue
hardship on me and must be reviewed by the court. However, this
presumption may be overcome if I explain to the satisfaction of the
court how I can afford to make the payments here: ______.
```2. I received a copy of the Reaffirmation Disclosure Statement
in Part A and a completed and signed reaffirmation agreement.'.
``(7) The motion, which may be used if approval of the agreement by
the court is required in order for it to be effective and shall be
signed and dated by the moving party, shall consist of the following:
```Part E: Motion for Court Approval (To be completed only where
debtor is not represented by an attorney.). I (we), the debtor, affirm
the following to be true and correct:
```I am not represented by an attorney in connection with this
reaffirmation agreement.
```I believe this agreement is in my best interest based on the
income and expenses I have disclosed in my Statement in Support of this
reaffirmation agreement above, and because (provide any additional
relevant reasons the court should consider):
```Therefore, I ask the court for an order approving this
reaffirmation agreement.'.
``(8) The court order, which may be used to approve a
reaffirmation, shall consist of the following:
```Court Order: The court grants the debtor's motion and approves
the reaffirmation agreement described above.'.
``(j) Notwithstanding any other provision of this title:
``(1) A creditor may accept payments from a debtor before
and after the filing of a reaffirmation agreement with the
court.
``(2) A creditor may accept payments from a debtor under a
reaffirmation agreement which the creditor believes in good
faith to be effective.
``(3) The requirements of subsections (c)(2) and (i) shall
be satisfied if disclosures required under those subsections
are given in good faith.
``(k) Until 60 days after a reaffirmation agreement is filed with
the court (or such additional period as the court, after notice and
hearing and for cause, orders before the expiration of such period), it
shall be presumed that the reaffirmation agreement is an undue hardship
on the debtor if the debtor's monthly income less the debtor's monthly
expenses as shown on the debtor's completed and signed statement in
support of the reaffirmation agreement required under subsection (i)(6)
of this section is less than the scheduled payments on the reaffirmed
debt. This presumption must be reviewed by the court. The presumption
may be rebutted in writing by the debtor if the statement includes an
explanation which identifies additional sources of funds to make the
payments as agreed upon under the terms of the reaffirmation agreement.
If the presumption is not rebutted to the satisfaction of the court,
the court may disapprove the agreement. However, no agreement shall be
disapproved without notice and hearing to the debtor and creditor and
such hearing must be concluded before the entry of the debtor's
discharge.''.
(b) Law Enforcement.--
(1) In general.--Chapter 9 of title 18, United States Code,
is amended by adding at the end the following:
``Sec. 158. Designation of United States attorneys and agents of the
Federal Bureau of Investigation to address abusive
reaffirmations of debt and materially fraudulent
statements in bankruptcy schedules
``(a) In General.--The Attorney General of the United States shall
designate the individuals described in subsection (b) to have primary
responsibility in carrying out enforcement activities in addressing
violations of section 152 or 157 relating to abusive reaffirmations of
debt. In addition to addressing the violations referred to in the
preceding sentence, the individuals described under subsection (b)
shall address violations of section 152 or 157 relating to materially
fraudulent statements in bankruptcy schedules that are intentionally
false or intentionally misleading.
``(b) United States District Attorneys and Agents of the Federal
Bureau of Investigation--The individuals referred to in subsection (a)
are--
``(1) a United States attorney for each judicial district
of the United States; and
``(2) an agent of the Federal Bureau of Investigation
(within the meaning of section 3107) for each field office of
the Federal Bureau of Investigation.
``(c) Bankruptcy Investigations.--Each United States attorney
designated under this section shall have primary responsibility for
carrying out the duties of a United States attorney under section 3057.
``(d) Bankruptcy Procedures.--The bankruptcy courts shall establish
procedures for referring any case which may contain a materially
fraudulent statement in a bankruptcy schedule to the individuals
designated under this section.''.
(2) Clerical amendment.--The analysis for chapter 9 of
title 18, United States Code, is amended by adding at the end
the following:
``158. Designation of United States attorneys and agents of the Federal
Bureau of Investigation to address abusive
reaffirmations of debt and materially
fraudulent statements in bankruptcy
schedules.''.
Subtitle B--Priority Child Support
SEC. 211. DEFINITION OF DOMESTIC SUPPORT OBLIGATION.
Section 101 of title 11, United States Code, is amended--
(1) by striking paragraph (12A); and
(2) by inserting after paragraph (14) the following:
``(14A) `domestic support obligation' means a debt that
accrues before or after the entry of an order for relief under
this title, including interest that accrues on that debt as
provided under applicable nonbankruptcy law notwithstanding any
other provision of this title, that is--
``(A) owed to or recoverable by--
``(i) a spouse, former spouse, or child of
the debtor or such child's parent, legal
guardian, or responsible relative; or
``(ii) a governmental unit;
``(B) in the nature of alimony, maintenance, or
support (including assistance provided by a
governmental unit) of such spouse, former spouse, or
child of the debtor or such child's parent, without
regard to whether such debt is expressly so designated;
``(C) established or subject to establishment
before or after entry of an order for relief under this
title, by reason of applicable provisions of--
``(i) a separation agreement, divorce
decree, or property settlement agreement;
``(ii) an order of a court of record; or
``(iii) a determination made in accordance
with applicable nonbankruptcy law by a
governmental unit; and
``(D) not assigned to a nongovernmental entity,
unless that obligation is assigned voluntarily by the
spouse, former spouse, child, or parent, legal
guardian, or responsible relative of the child for the
purpose of collecting the debt.''.
SEC. 212. PRIORITIES FOR CLAIMS FOR DOMESTIC SUPPORT OBLIGATIONS.
Section 507(a) of title 11, United States Code, is amended--
(1) by striking paragraph (7);
(2) by redesignating paragraphs (1) through (6) as
paragraphs (2) through (7), respectively;
(3) in paragraph (2), as redesignated, by striking
``First'' and inserting ``Second'';
(4) in paragraph (3), as redesignated, by striking
``Second'' and inserting ``Third'';
(5) in paragraph (4), as redesignated, by striking
``Third'' and inserting ``Fourth'';
(6) in paragraph (5), as redesignated, by striking
``Fourth'' and inserting ``Fifth'';
(7) in paragraph (6), as redesignated, by striking
``Fifth'' and inserting ``Sixth'';
(8) in paragraph (7), as redesignated, by striking
``Sixth'' and inserting ``Seventh''; and
(9) by inserting before paragraph (2), as redesignated, the
following:
``(1) First:
``(A) Allowed unsecured claims for domestic support
obligations that, as of the date of the filing of the
petition, are owed to or recoverable by a spouse,
former spouse, or child of the debtor, or the parent,
legal guardian, or responsible relative of such child,
without regard to whether the claim is filed by such
person or is filed by a governmental unit on behalf of
that person, on the condition that funds received under
this paragraph by a governmental unit under this title
after the date of filing of the petition shall be
applied and distributed in accordance with applicable
nonbankruptcy law.
``(B) Subject to claims under subparagraph (A),
allowed unsecured claims for domestic support
obligations that, as of the date the petition was filed
are assigned by a spouse, former spouse, child of the
debtor, or such child's parent, legal guardian, or
responsible relative to a governmental unit (unless
such obligation is assigned voluntarily by the spouse,
former spouse, child, parent, legal guardian, or
responsible relative of the child for the purpose of
collecting the debt) or are owed directly to or
recoverable by a government unit under applicable
nonbankruptcy law, on the condition that funds received
under this paragraph by a governmental unit under this
title after the date of filing of the petition be
applied and distributed in accordance with applicable
nonbankruptcy law.''.
SEC. 213. REQUIREMENTS TO OBTAIN CONFIRMATION AND DISCHARGE IN CASES
INVOLVING DOMESTIC SUPPORT OBLIGATIONS.
Title 11, United States Code, is amended--
(1) in section 1129(a), by adding at the end the following:
``(14) If the debtor is required by a judicial or
administrative order or statute to pay a domestic support
obligation, the debtor has paid all amounts payable under such
order or statute for such obligation that first become payable
after the date on which the petition is filed.'';
(2) in section 1208(c)--
(A) in paragraph (8), by striking ``or'' at the
end;
(B) in paragraph (9), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(10) failure of the debtor to pay any domestic support
obligation that first becomes payable after the date on which
the petition is filed.'';
(3) in section 1222(a)--
(A) in paragraph (2), by striking ``and'' at the
end;
(B) in paragraph (3), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(4) notwithstanding any other provision of this section,
a plan may provide for less than full payment of all amounts
owed for a claim entitled to priority under section
507(a)(1)(B) only if the plan provides that all of the debtor's
projected disposable income for a 5-year period, beginning on
the date that the first payment is due under the plan, will be
applied to make payments under the plan.'';
(4) in section 1222(b)--
(A) by redesignating paragraph (10) as paragraph
(11); and
(B) by inserting after paragraph (9) the following:
``(10) provide for the payment of interest accruing after
the date of the filing of the petition on unsecured claims that
are nondischargeable under section 1328(a), except that such
interest may be paid only to the extent that the debtor has
disposable income available to pay such interest after making
provision for full payment of all allowed claims;'';
(5) in section 1225(a)--
(A) in paragraph (5), by striking ``and'' at the
end;
(B) in paragraph (6), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(7) if the debtor is required by a judicial or
administrative order or statute to pay a domestic support
obligation, the debtor has paid all amounts payable under such
order for such obligation that first become payable after the
date on which the petition is filed.'';
(6) in section 1228(a), in the matter preceding paragraph
(1), by inserting ``, and in the case of a debtor who is
required by a judicial or administrative order to pay a
domestic support obligation, after such debtor certifies that
all amounts payable under such order or statute that are due on
or before the date of the certification (including amounts due
before the petition was filed, but only to the extent provided
for in the plan) have been paid'' after ``completion by the
debtor of all payments under the plan'';
(7) in section 1307(c)--
(A) in paragraph (9), by striking ``or'' at the
end;
(B) in paragraph (10), by striking the period at
the end and inserting ``; or''; and
(C) by adding at the end the following:
``(11) failure of the debtor to pay any domestic support
obligation that first becomes payable after the date on which
the petition is filed.'';
(8) in section 1322(a)--
(A) in paragraph (2), by striking ``and'' at the
end;
(B) in paragraph (3), by striking the period at the
end and inserting ``; and''; and
(C) by adding in the end the following:
``(4) notwithstanding any other provision of this section,
a plan may provide for less than full payment of all amounts
owed for a claim entitled to priority under section
507(a)(1)(B) only if the plan provides that all of the debtor's
projected disposable income for a 5-year period beginning on
the date that the first payment is due under the plan will be
applied to make payments under the plan.'';
(9) in section 1322(b)--
(A) in paragraph (9), by striking ``; and'' and
inserting a semicolon;
(B) by redesignating paragraph (10) as paragraph
(11); and
(C) inserting after paragraph (9) the following:
``(10) provide for the payment of interest accruing after
the date of the filing of the petition on unsecured claims that
are nondischargeable under section 1328(a), except that such
interest may be paid only to the extent that the debtor has
disposable income available to pay such interest after making
provision for full payment of all allowed claims; and'';
(10) in section 1325(a)--
(A) in paragraph (5), by striking ``and'' at the
end;
(B) in paragraph (6), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(7) if the debtor is required by a judicial or
administrative order or statute to pay a domestic support
obligation, the debtor has paid amounts payable after the date
on which the petition is filed.''; and
(11) in section 1328(a), in the matter preceding paragraph
(1), by inserting ``, and in the case of a debtor who is
required by a judicial or administrative order to pay a
domestic support obligation, after such debtor certifies that
all amounts payable under such order or statute that are due on
or before the date of the certification (including amounts due
before the petition was filed, but only to the extent provided
for in the plan) have been paid'' after ``completion by the
debtor of all payments under the plan''.
SEC. 214. EXCEPTIONS TO AUTOMATIC STAY IN DOMESTIC SUPPORT OBLIGATION
PROCEEDINGS.
Section 362(b) of title 11, United States Code, is amended by
striking paragraph (2) and inserting the following:
``(2) under subsection (a)--
``(A) of the commencement or continuation of a
civil action or proceeding--
``(i) for the establishment of paternity;
``(ii) for the establishment or
modification of an order for domestic support
obligations;
``(iii) concerning child custody or
visitation;
``(iv) for the dissolution of a marriage
except to the extent that such a proceeding
seeks to determine the division of property
which is property of the estate; or
``(v) regarding domestic violence;
``(B) the collection of a domestic support
obligation from property that is not property of the
estate;
``(C) with respect to the withholding of income
that is property of the estate or property of the
debtor for payment of a domestic support obligation
pursuant to a judicial or administrative order;
``(D) the withholding, suspension, or restriction
of drivers' licenses, professional and occupational
licenses, and recreational licenses under State law, as
specified in section 466(a)(16) of the Social Security
Act (42 U.S.C. 666(a)(16));
``(E) the reporting of overdue support owed by a
parent to any consumer reporting agency as specified in
section 466(a)(7) of the Social Security Act (42 U.S.C.
666(a)(7));
``(F) the interception of tax refunds, as specified
in sections 464 and 466(a)(3) of the Social Security
Act (42 U.S.C. 664 and 666(a)(3)) or under an analogous
State law; or
``(G) the enforcement of medical obligations as
specified under title IV of the Social Security Act (42
U.S.C. 601 et seq.).'';
SEC. 215. NONDISCHARGEABILITY OF CERTAIN DEBTS FOR ALIMONY,
MAINTENANCE, AND SUPPORT.
Section 523 of title 11, United States Code, is amended--
(1) in subsection (a)--
(A) by striking paragraph (5) and inserting the
following:
``(5) for a domestic support obligation;'';
(B) in paragraph (15)--
(i) by inserting ``to a spouse, former
spouse, or child of the debtor and'' before
``not of the kind'';
(ii) by inserting ``or'' after ``court of
record''; and
(iii) by striking ``unless--'' and all that
follows through the end of the paragraph and
inserting a semicolon; and
(C) by striking paragraph (18); and
(2) in subsection (c), by striking ``(6), or (15)'' and
inserting ``or (6)''.
SEC. 216. CONTINUED LIABILITY OF PROPERTY.
Section 522 of title 11, United States Code, is amended--
(1) in subsection (c), by striking paragraph (1) and
inserting the following:
``(1) a debt of a kind specified in paragraph (1) or (4) of
section 523(a) (in which case, notwithstanding any provision of
applicable nonbankruptcy law to the contrary, such property
shall be liable for a debt of a kind specified in section
523(a)(4));''; and
(2) in subsection (f)(1)(A), by striking the dash and all
that follows through the end of the subparagraph and inserting
``of a kind that is specified in section 523(a)(4); or''.
SEC. 217. PROTECTION OF DOMESTIC SUPPORT CLAIMS AGAINST PREFERENTIAL
TRANSFER MOTIONS.
Section 547(c)(7) of title 11, United States Code, is amended to
read as follows:
``(7) to the extent such transfer was a bona fide payment
of a debt for a domestic support obligation; or''.
SEC. 218. DISPOSABLE INCOME DEFINED.
(a) Confirmation of Plan Under Chapter 12.--Section 1225(b)(2)(A)
of title 11, United States Code, is amended by inserting ``or for a
domestic support obligation that first becomes payable after the date
on which the petition is filed'' after ``dependent of the debtor''.
(b) Confirmation of Plan Under Chapter 13.--Section 1325(b)(2)(A)
of title 11, United States Code, is amended by inserting ``or for a
domestic support obligation that first becomes payable after the date
on which the petition is filed'' after ``dependent of the debtor''.
SEC. 219. COLLECTION OF CHILD SUPPORT.
(a) Duties of Trustee Under Chapter 7.--Section 704 of title 11,
United States Code, as amended by section 102(b) of this Act, is
amended--
(1) in subsection (a)--
(A) in paragraph (8), by striking ``and'' at the
end;
(B) in paragraph (9), by striking the period and
inserting ``; and''; and
(C) by adding at the end the following:
``(10) if, with respect to an individual debtor, there is a
claim for a domestic support obligation, provide the applicable
notification specified in subsection (c).''; and
(2) by adding at the end the following:
``(c)(1) In any case described in subsection (a)(10), the trustee
shall--
``(A)(i) notify in writing the holder of the claim of the
right of that holder to use the services of a State child
support enforcement agency established under sections 464 and
466 of the Social Security Act (42 U.S.C. 664 and 666,
respectively) for the State in which the holder resides for
assistance in collecting child support during and after the
bankruptcy procedures;
``(ii) include in the notice under this paragraph the
address and telephone number of the child support enforcement
agency; and
``(iii) include in the notice an explanation of the rights
of the holder of the claim to payment of the claim under this
chapter; and
``(B)(i) notify in writing the State child support agency
of the State in which the holder of the claim resides of the
claim;
``(ii) include in the notice under this paragraph the name,
address, and telephone number of the holder of the claim; and
``(iii) at such time as the debtor is granted a discharge
under section 727, notify the holder of that claim and the
State child support agency of the State in which that holder
resides of--
``(I) the granting of the discharge;
``(II) the last recent known address of the debtor;
``(III) the last recent known name and address of
the debtor's employer; and
``(IV) with respect to the debtor's case, the name
of each creditor that holds a claim that--
``(aa) is not discharged under paragraph
(2), (4), or (14A) of section 523(a); or
``(bb) was reaffirmed by the debtor under
section 524(c).
``(2)(A) A holder of a claim or a State child support agency may
request from a creditor described in paragraph (1)(B)(iii)(IV) the last
known address of the debtor.
``(B) Notwithstanding any other provision of law, a creditor that
makes a disclosure of a last known address of a debtor in connection
with a request made under subparagraph (A) shall not be liable to the
debtor or any other person by reason of making that disclosure.''.
(b) Duties of Trustee Under Chapter 11.--Section 1106 of title 11,
United States Code, is amended--
(1) in subsection (a)--
(A) in paragraph (6), by striking ``and'' at the
end;
(B) in paragraph (7), by striking the period and
inserting ``; and''; and
(C) by adding at the end the following:
``(8) if, with respect to an individual debtor, there is a
claim for a domestic support obligation, provide the applicable
notification specified in subsection (c).''; and
(2) by adding at the end the following:
``(c)(1) In any case described in subsection (a)(7), the trustee
shall--
``(A)(i) notify in writing the holder of the claim of the
right of that holder to use the services of a State child
support enforcement agency established under sections 464 and
466 of the Social Security Act (42 U.S.C. 664 and 666) for the
State in which the holder resides; and
``(ii) include in the notice under this paragraph the
address and telephone number of the child support enforcement
agency; and
``(B)(i) notify, in writing, the State child support agency
(of the State in which the holder of the claim resides) of the
claim;
``(ii) include in the notice under this paragraph the name,
address, and telephone number of the holder of the claim; and
``(iii) at such time as the debtor is granted a discharge
under section 1141, notify the holder of the claim and the
State child support agency of the State in which that holder
resides of--
``(I) the granting of the discharge;
``(II) the last recent known address of the debtor;
``(III) the last recent known name and address of
the debtor's employer; and
``(IV) with respect to the debtor's case, the name
of each creditor that holds a claim that--
``(aa) is not discharged under paragraph
(2), (3), or (14) of section 523(a); or
``(bb) was reaffirmed by the debtor under
section 524(c).
``(2)(A) A holder of a claim or a State child support agency may
request from a creditor described in paragraph (1)(B)(iii)(IV) the last
known address of the debtor.
``(B) Notwithstanding any other provision of law, a creditor that
makes a disclosure of a last known address of a debtor in connection
with a request made under subparagraph (A) shall not be liable to the
debtor or any other person by reason of making that disclosure.''.
(c) Duties of Trustee Under Chapter 12.--Section 1202 of title 11,
United States Code, is amended--
(1) in subsection (b)--
(A) in paragraph (4), by striking ``and'' at the
end;
(B) in paragraph (5), by striking the period and
inserting ``; and''; and
(C) by adding at the end the following:
``(6) if, with respect to an individual debtor, there is a
claim for a domestic support obligation, provide the applicable
notification specified in subsection (c).''; and
(2) by adding at the end the following:
``(c)(1) In any case described in subsection (b)(6), the trustee
shall--
``(A)(i) notify in writing the holder of the claim of the
right of that holder to use the services of a State child
support enforcement agency established under sections 464 and
466 of the Social Security Act (42 U.S.C. 664 and 666) for the
State in which the holder resides; and
``(ii) include in the notice under this paragraph the
address and telephone number of the child support enforcement
agency; and
``(B)(i) notify, in writing, the State child support agency
(of the State in which the holder of the claim resides) of the
claim;
``(ii) include in the notice under this paragraph the name,
address, and telephone number of the holder of the claim; and
``(iii) at such time as the debtor is granted a discharge
under section 1228, notify the holder of the claim and the
State child support agency of the State in which that holder
resides of--
``(I) the granting of the discharge;
``(II) the last recent known address of the debtor;
``(III) the last recent known name and address of
the debtor's employer; and
``(IV) with respect to the debtor's case, the name
of each creditor that holds a claim that--
``(aa) is not discharged under paragraph
(2), (3), or (14) of section 523(a); or
``(bb) was reaffirmed by the debtor under
section 524(c).
``(2)(A) A holder of a claim or a State child support agency may
request from a creditor described in paragraph (1)(B)(iii)(IV) the last
known address of the debtor.
``(B) Notwithstanding any other provision of law, a creditor that
makes a disclosure of a last known address of a debtor in connection
with a request made under subparagraph (A) shall not be liable to the
debtor or any other person by reason of making that disclosure.''.
(d) Duties of Trustee Under Chapter 13.--Section 1302 of title 11,
United States Code, is amended--
(1) in subsection (b)--
(A) in paragraph (4), by striking ``and'' at the
end;
(B) in paragraph (5), by striking the period and
inserting ``; and''; and
(C) by adding at the end the following:
``(6) if, with respect to an individual debtor, there is a
claim for a domestic support obligation, provide the applicable
notification specified in subsection (d); and
``(7) provide information relating to the administration of
cases that is practical to any not-for-profit entity which
shall provide information to parties in interest in a timely
and convenient manner, including telephonic and Internet
access, at no cost or a nominal cost.
An entity described in paragraph (7) shall provide parties in
interest with reasonable information about each case on behalf
of the trustee of that case, including the status of the
debtor's payments to the plan, the unpaid balance payable to
each creditor treated by the plan, and the amount and date of
payments made under the plan. The trustee shall have no duty to
provide information under paragraph (7) if no such entity has
been established.''; and
(2) by adding at the end the following:
``(d)(1) In any case described in subsection (b)(6), the trustee
shall--
``(A)(i) notify in writing the holder of the claim of the
right of that holder to use the services of a State child
support enforcement agency established under sections 464 and
466 of the Social Security Act (42 U.S.C. 664 and 666,
respectively) for the State in which the holder resides; and
``(ii) include in the notice under this paragraph the
address and telephone number of the child support enforcement
agency; and
``(B)(i) notify in writing the State child support agency
of the State in which the holder of the claim resides of the
claim;
``(ii) include in the notice under this paragraph the name,
address, and telephone number of the holder of the claim; and
``(iii) at such time as the debtor is granted a discharge
under section 1328, notify the holder of the claim and the
State child support agency of the State in which that holder
resides of--
``(I) the granting of the discharge;
``(II) the last recent known address of the debtor;
``(III) the last recent known name and address of
the debtor's employer; and
``(IV) with respect to the debtor's case, the name
of each creditor that holds a claim that--
``(aa) is not discharged under paragraph
(2), (3), or (14) of section 523(a); or
``(bb) was reaffirmed by the debtor under
section 524(c).
``(2)(A) A holder of a claim or a State child support agency may
request from a creditor described in paragraph (1)(B)(iii)(IV) the last
known address of the debtor.
``(B) Notwithstanding any other provision of law, a creditor that
makes a disclosure of a last known address of a debtor in connection
with a request made under subparagraph (A) shall not be liable to the
debtor or any other person by reason of making that disclosure.''.
SEC. 220. NONDISCHARGEABILITY OF CERTAIN EDUCATIONAL BENEFITS AND
LOANS.
Section 523(a) of title 11, United States Code, is amended by
striking paragraph (8) and inserting the following:
``(8) unless excepting such debt from discharge under this
paragraph would impose an undue hardship on the debtor and the
debtor's dependents, for--
``(A)(i) an educational benefit overpayment or loan
made, insured, or guaranteed by a governmental unit, or
made under any program funded in whole or in part by a
governmental unit or nonprofit institution; or
``(ii) an obligation to repay funds received as an
educational benefit, scholarship, or stipend; or
``(B) any other educational loan that is a
qualified education loan, as that term is defined in
section 221(e)(1) of the Internal Revenue Code of 1986,
incurred by an individual debtor;''.
Subtitle C--Other Consumer Protections
SEC. 221. AMENDMENTS TO DISCOURAGE ABUSIVE BANKRUPTCY FILINGS.
Section 110 of title 11, United States Code, is amended--
(1) in subsection (a)(1), by inserting ``, under the direct
supervision of an attorney,'' after ``who'';
(2) in subsection (b)--
(A) in paragraph (1), by adding at the end the
following: ``If a bankruptcy petition preparer is not
an individual, then an officer, principal, responsible
person, or partner of the preparer shall be required
to--
``(A) sign the document for filing; and
``(B) print on the document the name and address of that
officer, principal, responsible person or partner.'';
(B) by striking paragraph (2) and inserting the
following:
``(2)(A) Before preparing any document for filing or accepting any
fees from a debtor, the bankruptcy petition preparer shall provide to
the debtor a written notice to debtors concerning bankruptcy petition
preparers, which shall be on an official form issued by the Judicial
Conference of the United States.
``(B) The notice under subparagraph (A)--
``(i) shall inform the debtor in simple language that a
bankruptcy petition preparer is not an attorney and may not
practice law or give legal advice;
``(ii) may contain a description of examples of legal
advice that a bankruptcy petition preparer is not authorized to
give, in addition to any advice that the preparer may not give
by reason of subsection (e)(2); and
``(iii) shall--
``(I) be signed by--
``(aa) the debtor; and
``(bb) the bankruptcy petition preparer,
under penalty of perjury; and
``(II) be filed with any document for filing.'';
(3) in subsection (c)--
(A) in paragraph (2)--
(i) by striking ``(2) For purposes'' and
inserting ``(2)(A) Subject to subparagraph (B),
for purposes''; and
(ii) by adding at the end the following:
``(B) If a bankruptcy petition preparer is not an individual, the
identifying number of the bankruptcy petition preparer shall be the
Social Security account number of the officer, principal, responsible
person, or partner of the preparer.''; and
(B) by striking paragraph (3);
(4) in subsection (d)--
(A) by striking ``(d)(1)'' and inserting ``(d)'';
and
(B) by striking paragraph (2);
(5) in subsection (e)--
(A) by striking paragraph (2); and
(B) by adding at the end the following:
``(2)(A) A bankruptcy petition preparer may not offer a potential
bankruptcy debtor any legal advice, including any legal advice
described in subparagraph (B).
``(B) The legal advice referred to in subparagraph (A) includes
advising the debtor--
``(i) whether--
``(I) to file a petition under this title; or
``(II) commencing a case under chapter 7, 11, 12,
or 13 is appropriate;
``(ii) whether the debtor's debts will be eliminated or
discharged in a case under this title;
``(iii) whether the debtor will be able to retain the
debtor's home, car, or other property after commencing a case
under this title;
``(iv) concerning--
``(I) the tax consequences of a case brought under
this title; or
``(II) the dischargeability of tax claims;
``(v) whether the debtor may or should promise to repay
debts to a creditor or enter into a reaffirmation agreement
with a creditor to reaffirm a debt;
``(vi) concerning how to characterize the nature of the
debtor's interests in property or the debtor's debts; or
``(vii) concerning bankruptcy procedures and rights.'';
(6) in subsection (f)--
(A) by striking ``(f)(1)'' and inserting ``(f)'';
and
(B) by striking paragraph (2);
(7) in subsection (g)--
(A) by striking ``(g)(1)'' and inserting ``(g)'';
and
(B) by striking paragraph (2);
(8) in subsection (h)--
(A) by redesignating paragraphs (1) through (4) as
paragraphs (2) through (5), respectively;
(B) by inserting before paragraph (2), as so
redesignated, the following:
``(h)(1) The Supreme Court may promulgate rules under section 2075
of title 28, or the Judicial Conference of the United States may
prescribe guidelines, for setting a maximum allowable fee chargeable by
a bankruptcy petition preparer. A bankruptcy petition preparer shall
notify the debtor of any such maximum amount before preparing any
document for filing for a debtor or accepting any fee from the
debtor.'';
(C) in paragraph (2), as redesignated by
subparagraph (A) of this paragraph--
(i) by striking ``Within 10 days after the
date of filing a petition, a bankruptcy
petition preparer shall file a'' and inserting
``A'';
(ii) by inserting ``by the bankruptcy
petition preparer shall be filed together with
the petition,'' after ``perjury''; and
(iii) by adding at the end the following:
``If rules or guidelines setting a maximum fee
for services have been promulgated or
prescribed under paragraph (1), the declaration
under this paragraph shall include a
certification that the bankruptcy petition
preparer complied with the notification
requirement under paragraph (1).'';
(D) by striking paragraph (3), as redesignated by
subparagraph (A) of this paragraph, and inserting the
following:
``(3)(A) The court shall disallow and order the immediate
turnover to the bankruptcy trustee any fee referred to in
paragraph (2) found to be in excess of the value of any
services--
``(i) rendered by the preparer during the 12-month
period immediately preceding the date of filing of the
petition; or
``(ii) found to be in violation of any rule or
guideline promulgated or prescribed under paragraph
(1).
``(B) All fees charged by a bankruptcy petition preparer
may be forfeited in any case in which the bankruptcy petition
preparer fails to comply with this subsection or subsection
(b), (c), (d), (e), (f), or (g).
``(C) An individual may exempt any funds recovered under
this paragraph under section 522(b).''; and
(E) in paragraph (4), as redesignated by
subparagraph (A) of this paragraph, by striking ``or
the United States trustee'' and inserting ``the United
States trustee, or the court, on the initiative of the
court,'';
(9) in subsection (i)(1), by striking the matter preceding
subparagraph (A) and inserting the following:
``(i) If a bankruptcy petition preparer violates this section or
commits any act that the court finds to be fraudulent, unfair, or
deceptive, on motion of the debtor, trustee, or United States trustee,
and after the court holds a hearing with respect to that violation or
act, the court shall order the bankruptcy petition preparer to pay to
the debtor--'';
(10) in subsection (j)--
(A) in paragraph (2)--
(i) in subparagraph (A)(i)(I), by striking
``a violation of which subjects a person to
criminal penalty'';
(ii) in subparagraph (B)--
(I) by striking ``or has not paid a
penalty'' and inserting ``has not paid
a penalty''; and
(II) by inserting ``or failed to
disgorge all fees ordered by the
court'' after ``a penalty imposed under
this section,'';
(B) by redesignating paragraph (3) as paragraph
(4); and
(C) by inserting after paragraph (2) the following:
``(3) The court, as part of its contempt power, may enjoin a
bankruptcy petition preparer that has failed to comply with a previous
order issued under this section. The injunction under this paragraph
may be issued upon motion of the court, the trustee, or the United
States trustee.''; and
(11) by adding at the end the following:
``(l)(1) A bankruptcy petition preparer who fails to comply with
any provision of subsection (b), (c), (d), (e), (f), (g), or (h) may be
fined not more than $500 for each such failure.
``(2) The court shall triple the amount of a fine assessed under
paragraph (1) in any case in which the court finds that a bankruptcy
petition preparer--
``(A) advised the debtor to exclude assets or income that
should have been included on applicable schedules;
``(B) advised the debtor to use a false Social Security
account number;
``(C) failed to inform the debtor that the debtor was
filing for relief under this title; or
``(D) prepared a document for filing in a manner that
failed to disclose the identity of the preparer.
``(3) The debtor, the trustee, a creditor, or the United States
trustee may file a motion for an order imposing a fine on the
bankruptcy petition preparer for each violation of this section.
``(4) All fines imposed under this section shall be paid to the
United States trustee, who shall deposit an amount equal to such fines
in a special account of the United States Trustee System Fund referred
to in section 586(e)(2) of title 28. Amounts deposited under this
paragraph shall be available to fund the enforcement of this section on
a national basis.''.
SEC. 222. SENSE OF CONGRESS.
It is the sense of Congress that States should develop curricula
relating to the subject of personal finance, designed for use in
elementary and secondary schools.
SEC. 223. ADDITIONAL AMENDMENTS TO TITLE 11, UNITED STATES CODE.
(a) In General.--Section 507(a) of title 11, United States Code, as
amended by section 212 of this Act, is amended by inserting after
paragraph (9) the following:
``(10) Tenth, allowed claims for death or personal injuries
resulting from the operation of a motor vehicle or vessel if
such operation was unlawful because the debtor was intoxicated
from using alcohol, a drug, or another substance.''.
(b) Vessels.--Section 523(a)(8) of title 11, United States Code, is
amended by inserting ``or vessel'' after ``vehicle''.
SEC. 224. PROTECTION OF RETIREMENT SAVINGS IN BANKRUPTCY.
(a) In General.--Section 522 of title 11, United States Code, as
amended by section 215 of this Act, is amended--
(1) in subsection (b)--
(A) in paragraph (2)--
(i) by striking ``(2)(A) any property'' and
inserting:
``(3) Property listed in this paragraph is--
``(A) any property'';
(ii) in subparagraph (A), by striking
``and'' at the end;
(iii) in subparagraph (B), by striking the
period at the end and inserting ``; and''; and
(iv) by adding at the end the following:
``(C) retirement funds to the extent that those funds are
in a fund or account that is exempt from taxation under section
401, 403, 408, 408A, 414, 457, or 501(a) of the Internal
Revenue Code of 1986.'';
(B) by striking paragraph (1) and inserting:
``(2) Property listed in this paragraph is property that is
specified under subsection (d), unless the State law that is applicable
to the debtor under paragraph (3)(A) specifically does not so
authorize.'';
(C) in the matter preceding paragraph (2)--
(i) by striking ``(b)'' and inserting
``(b)(1)'';
(ii) by striking ``paragraph (2)'' both
places it appears and inserting ``paragraph
(3)'';
(iii) by striking ``paragraph (1)'' each
place it appears and inserting ``paragraph
(2)''; and
(iv) by striking ``Such property is--'';
and
(D) by adding at the end of the subsection the
following:
``(4) For purposes of paragraph (3)(C) and subsection (d)(12), the
following shall apply:
``(A) If the retirement funds are in a retirement fund that
has received a favorable determination pursuant to section 7805
of the Internal Revenue Code of 1986, and that determination is
in effect as of the date of the commencement of the case under
section 301, 302, or 303 of this title, those funds shall be
presumed to be exempt from the estate.
``(B) If the retirement funds are in a retirement fund that
has not received a favorable determination pursuant to such
section 7805, those funds are exempt from the estate if the
debtor demonstrates that--
``(i) no prior determination to the contrary has
been made by a court or the Internal Revenue Service;
and
``(ii)(I) the retirement fund is in substantial
compliance with the applicable requirements of the
Internal Revenue Code of 1986; or
``(II) the retirement fund fails to be in
substantial compliance with the applicable requirements
of the Internal Revenue Code of 1986 and the debtor is
not materially responsible for that failure.
``(C) A direct transfer of retirement funds from 1 fund or
account that is exempt from taxation under section 401, 403,
408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of
1986, pursuant to section 401(a)(31) of the Internal Revenue
Code of 1986, or otherwise, shall not cease to qualify for
exemption under paragraph (3)(C) or subsection (d)(12) by
reason of that direct transfer.
``(D)(i) Any distribution that qualifies as an eligible
rollover distribution within the meaning of section 402(c) of
the Internal Revenue Code of 1986 or that is described in
clause (ii) shall not cease to qualify for exemption under
paragraph (3)(C) or subsection (d)(12) by reason of that
distribution.
``(ii) A distribution described in this clause is an amount
that--
``(I) has been distributed from a fund or account
that is exempt from taxation under section 401, 403,
408, 408A, 414, 457, or 501(a) of the Internal Revenue
Code of 1986; and
``(II) to the extent allowed by law, is deposited
in such a fund or account not later than 60 days after
the distribution of that amount.''; and
(2) in subsection (d)--
(A) in the matter preceding paragraph (1), by
striking ``subsection (b)(1)'' and inserting
``subsection (b)(2)''; and
(B) by adding at the end the following:
``(12) Retirement funds to the extent that those funds are in a
fund or account that is exempt from taxation under section 401, 403,
408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986.''.
(b) Automatic Stay.--Section 362(b) of title 11, United States
Code, as amended by section 214 of this Act, is amended--
(1) in paragraph (18), by striking ``or'' at the end;
(2) in paragraph (19), by striking the period and inserting
``; or'';
(3) by inserting after paragraph (19) the following:
``(20) under subsection (a), of withholding of income from
a debtor's wages and collection of amounts withheld, pursuant
to the debtor's agreement authorizing that withholding and
collection for the benefit of a pension, profit-sharing, stock
bonus, or other plan established under section 401, 403, 408,
408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986
that is sponsored by the employer of the debtor, or an
affiliate, successor, or predecessor of such employer--
``(A) to the extent that the amounts withheld and
collected are used solely for payments relating to a
loan from a plan that satisfies the requirements of
section 408(b)(1) of the Employee Retirement Income
Security Act of 1974 or is subject to section 72(p) of
the Internal Revenue Code of 1986; or
``(B) in the case of a loan from a thrift savings
plan described in subchapter III of title 5, that
satisfies the requirements of section 8433(g) of such
title;''; and
(4) by adding at the end of the flush material at the end
of the subsection, the following: ``Nothing in paragraph (20)
may be construed to provide that any loan made under a
governmental plan under section 414(d), or a contract or
account under section 403(b), of the Internal Revenue Code of
1986 constitutes a claim or a debt under this title.''.
(c) Exceptions to Discharge.--Section 523(a) of title 11, United
States Code, is amended by adding at the end the following:
``(18) owed to a pension, profit-sharing, stock bonus, or
other plan established under section 401, 403, 408, 408A, 414,
457, or 501(c) of the Internal Revenue Code of 1986, pursuant
to--
``(A) a loan permitted under section 408(b)(1) of
the Employee Retirement Income Security Act of 1974, or
subject to section 72(p) of the Internal Revenue Code
of 1986; or
``(B) a loan from the thrift savings plan described
in subchapter III of title 5, that satisfies the
requirements of section 8433(g) of such title.
Nothing in paragraph (19) may be construed to provide that any
loan made under a governmental plan under section 414(d), or a
contract or account under section 403(b), of the Internal
Revenue Code of 1986 constitutes a claim or a debt under this
title.''
(d) Plan Contents.--Section 1322 of title 11, United States Code,
is amended by adding at the end the following:
``(f) A plan may not materially alter the terms of a loan described
in section 362(b)(20).''.
SEC. 225. PROTECTION OF EDUCATION SAVINGS.
(a) Exclusions.--Section 541 of title 11, United States Code, as
amended by section 903, is amended--
(1) in subsection (b)--
(A) by redesignating paragraph (6) as paragraph
(8); and
(B) by inserting after paragraph (5) the following:
``(6) funds placed in an education individual retirement
account (as defined in section 530(b)(1) of the Internal
Revenue Code of 1986) not later than 365 days before the date
of filing of the petition, but--
``(A) only if the designated beneficiary of such
account was a son, daughter, stepson, stepdaughter,
grandchild, or step-grandchild of the debtor for the
taxable year for which funds were placed in such
account;
``(B) only to the extent that such funds--
``(i) are not pledged or promised to any
entity in connection with any extension of
credit; and
``(ii) are not excess contributions (as
described in section 4973(e) of the Internal
Revenue Code of 1986); and
``(C) in the case of funds placed in all such
accounts having the same designated beneficiary not
earlier than 720 days nor later than 365 days before
such date, only so much of such funds as does not
exceed $5,000;
``(7) funds used to purchase a tuition credit or
certificate or contributed to an account in accordance with
section 529(b)(1)(A) of the Internal Revenue Code of 1986 under
a qualified State tuition program (as defined in section
529(b)(1) of such Code) not later than 365 days before the date
of filing of the petition, but--
``(A) only if the designated beneficiary of the
amounts paid or contributed to such tuition program was
a son, daughter, stepson, stepdaughter, grandchild, or
step-grandchild of the debtor for the taxable year for
which funds were paid or contributed;
``(B) with respect to the aggregate amount paid or
contributed to such program having the same designated
beneficiary, only so much of such amount as does not
exceed the total contributions permitted under section
529(b)(7) of such Code with respect to such
beneficiary, as adjusted beginning on the date of the
filing of the petition by the annual increase or
decrease (rounded to the nearest tenth of 1 percent) in
the education expenditure category of the Consumer
Price Index prepared by the Department of Labor; and
``(C) in the case of funds paid or contributed to
such program having the same designated beneficiary not
earlier than 720 days nor later than 365 days before
such date, only so much of such funds as does not
exceed $5,000; or''; and
(2) by adding at the end the following:
``(g) In determining whether any of the relationships specified in
paragraph (6)(A) or (7)(A) of subsection (b) exists, a legally adopted
child of an individual (and a child who is a member of an individual's
household, if placed with such individual by an authorized placement
agency for legal adoption by such individual), or a foster child of an
individual (if such child has as the child's principal place of abode
the home of the debtor and is a member of the debtor's household) shall
be treated as a child of such individual by blood.''.
(b) Debtor's Duties.--Section 521 of title 11, United States Code,
as amended by sections 105(d), 304(c)(1), 305(2), 315(b), and 316 of
this Act, is amended by adding at the end the following:
``(k) In addition to meeting the requirements under subsection (a),
a debtor shall file with the court a record of any interest that a
debtor has in an education individual retirement account (as defined in
section 530(b)(1) of the Internal Revenue Code of 1986) or under a
qualified State tuition program (as defined in section 529(b)(1) of
such Code).''.
TITLE III--DISCOURAGING BANKRUPTCY ABUSE
SEC. 301. REINFORCEMENT OF THE FRESH START.
Section 523(a)(17) of title 11, United States Code, is amended--
(1) by striking ``by a court'' and inserting ``on a
prisoner by any court'',
(2) by striking ``section 1915(b) or (f)'' and inserting
``subsection (b) or (f)(2) of section 1915'', and
(3) by inserting ``(or a similar non-Federal law)'' after
``title 28'' each place it appears.
SEC. 302. DISCOURAGING BAD FAITH REPEAT FILINGS.
Section 362(c) of title 11, United States Code, is amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) in paragraph (2), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(3) if a single or joint case is filed by or against an
individual debtor under chapter 7, 11, or 13, and if a single
or joint case of the debtor was pending within the preceding 1-
year period but was dismissed, other than a case refiled under
a chapter other than chapter 7 after dismissal under section
707(b)--
``(A) the stay under subsection (a) with respect to
any action taken with respect to a debt or property
securing such debt or with respect to any lease will
terminate with respect to the debtor on the 30th day
after the filing of the later case;
``(B) upon motion by a party in interest for
continuation of the automatic stay and upon notice and
a hearing, the court may extend the stay in particular
cases as to any or all creditors (subject to such
conditions or limitations as the court may then impose)
after notice and a hearing completed before the
expiration of the 30-day period only if the party in
interest demonstrates that the filing of the later case
is in good faith as to the creditors to be stayed; and
``(C) for purposes of subparagraph (B), a case is
presumptively filed not in good faith (but such
presumption may be rebutted by clear and convincing
evidence to the contrary)--
``(i) as to all creditors, if--
``(I) more than 1 previous case
under any of chapter 7, 11, or 13 in
which the individual was a debtor was
pending within the preceding 1-year
period;
``(II) a previous case under any of
chapter 7, 11, or 13 in which the
individual was a debtor was dismissed
within such 1-year period, after the
debtor failed to--
``(aa) file or amend the
petition or other documents as
required by this title or the
court without substantial
excuse (but mere inadvertence
or negligence shall not be a
substantial excuse unless the
dismissal was caused by the
negligence of the debtor's
attorney);
``(bb) provide adequate
protection as ordered by the
court; or
``(cc) perform the terms of
a plan confirmed by the court;
or
``(III) there has not been a
substantial change in the financial or
personal affairs of the debtor since
the dismissal of the next most previous
case under chapter 7, 11, or 13 or any
other reason to conclude that the later
case will be concluded--
``(aa) if a case under
chapter 7, with a discharge; or
``(bb) if a case under
chapter 11 or 13, with a
confirmed plan which will be
fully performed; and
``(ii) as to any creditor that commenced an
action under subsection (d) in a previous case
in which the individual was a debtor if, as of
the date of dismissal of such case, that action
was still pending or had been resolved by
terminating, conditioning, or limiting the stay
as to actions of such creditor; and
``(4)(A)(i) if a single or joint case is filed by or
against an individual debtor under this title, and if 2 or more
single or joint cases of the debtor were pending within the
previous year but were dismissed, other than a case refiled
under section 707(b), the stay under subsection (a) shall not
go into effect upon the filing of the later case; and
``(ii) on request of a party in interest, the court shall
promptly enter an order confirming that no stay is in effect;
``(B) if, within 30 days after the filing of the later
case, a party in interest requests the court may order the stay
to take effect in the case as to any or all creditors (subject
to such conditions or limitations as the court may impose),
after notice and hearing, only if the party in interest
demonstrates that the filing of the later case is in good faith
as to the creditors to be stayed;
``(C) a stay imposed under subparagraph (B) shall be
effective on the date of entry of the order allowing the stay
to go into effect; and
``(D) for purposes of subparagraph (B), a case is
presumptively not filed in good faith (but such presumption may
be rebutted by clear and convincing evidence to the contrary)--
``(i) as to all creditors if--
``(I) 2 or more previous cases under this
title in which the individual was a debtor were
pending within the 1-year period;
``(II) a previous case under this title in
which the individual was a debtor was dismissed
within the time period stated in this paragraph
after the debtor failed to file or amend the
petition or other documents as required by this
title or the court without substantial excuse
(but mere inadvertence or negligence shall not
be substantial excuse unless the dismissal was
caused by the negligence of the debtor's
attorney), failed to pay adequate protection as
ordered by the court, or failed to perform the
terms of a plan confirmed by the court; or
``(III) there has not been a substantial
change in the financial or personal affairs of
the debtor since the dismissal of the next most
previous case under this title, or any other
reason to conclude that the later case will not
be concluded, if a case under chapter 7, with a
discharge, and if a case under chapter 11 or
13, with a confirmed plan that will be fully
performed; or
``(ii) as to any creditor that commenced an action
under subsection (d) in a previous case in which the
individual was a debtor if, as of the date of dismissal
of such case, such action was still pending or had been
resolved by terminating, conditioning, or limiting the
stay as to action of such creditor.''.
SEC. 303. CURBING ABUSIVE FILINGS.
(a) In General.--Section 362(d) of title 11, United States Code, is
amended--
(1) in paragraph (2), by striking ``or'' at the end;
(2) in paragraph (3), by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following:
``(4) with respect to a stay of an act against real
property under subsection (a), by a creditor whose claim is
secured by an interest in such real estate, if the court finds
that the filing of the bankruptcy petition was part of a scheme
to delay, hinder, and defraud creditors that involved either--
``(A) transfer of all or part ownership of, or
other interest in, the real property without the
consent of the secured creditor or court approval; or
``(B) multiple bankruptcy filings affecting the
real property.
If recorded in compliance with applicable State laws governing notices
of interests or liens in real property, an order entered under this
subsection shall be binding in any other case under this title
purporting to affect the real property filed not later than 2 years
after that recording, except that a debtor in a subsequent case may
move for relief from such order based upon changed circumstances or for
good cause shown, after notice and a hearing.''.
(b) Automatic Stay.--Section 362(b) of title 11, United States
Code, as amended by section 224 of this Act, is amended--
(1) in paragraph (19), by striking ``or'' at the end;
(2) in paragraph (20), by striking the period at the end;
and
(3) by inserting after paragraph (20) the following:
``(21) under subsection (a), of any act to enforce any lien
against or security interest in real property following the
entry of an order under section 362(d)(4) as to that property
in any prior bankruptcy case for a period of 2 years after
entry of such an order, except that the debtor, in a subsequent
case, may move the court for relief from such order based upon
changed circumstances or for other good cause shown, after
notice and a hearing; or
``(22) under subsection (a), of any act to enforce any lien
against or security interest in real property--
``(A) if the debtor is ineligible under section
109(g) to be a debtor in a bankruptcy case; or
``(B) if the bankruptcy case was filed in violation
of a bankruptcy court order in a prior bankruptcy case
prohibiting the debtor from being a debtor in another
bankruptcy case.''.
(c) Modification of a Restriction Relating to Waivers.--Section
522(e) of title 11, United States Code, is amended--
(1) in the first sentence, by striking ``subsection (b) of
this section'' and inserting ``subsection (b), other than under
paragraph (3)(C) of that subsection''; and
(2) in the second sentence--
(A) by inserting ``(other than property described
in subsection (b)(3)(C))'' after ``property'' each
place it appears; and
(B) by inserting ``(other than a transfer of
property described in subsection (b)(3)(C))'' after
``transfer'' each place it appears.
SEC. 304. DEBTOR RETENTION OF PERSONAL PROPERTY SECURITY.
Title 11, United States Code, is amended--
(1) in section 521(a), as so redesignated by section 106(d)
of this Act--
(A) in paragraph (4), by striking ``and'' at the
end;
(B) in paragraph (5), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(6) in an individual case under chapter 7, not retain
possession of personal property as to which a creditor has an
allowed claim for the purchase price secured in whole or in
part by an interest in that personal property unless, in the
case of an individual debtor, the debtor within 45 days after
the first meeting of creditors under section 341(a)--
``(A) enters into an agreement with the creditor
under section 524(c) with respect to the claim secured
by such property; or
``(B) redeems such property from the security
interest under section 722.''; and
(D) by adding at the end the following:
``(c) For purposes of subsection (a)(6), if the debtor fails to so
act within the 45-day period specified in subsection (a)(6), the
personal property affected shall no longer be property of the estate,
and the creditor may take whatever action as to such property as is
permitted by applicable nonbankruptcy law, unless the court determines
on the motion of the trustee, and after notice and a hearing, that such
property is of consequential value or benefit to the estate.''; and
(2) in section 722, by inserting ``in full at the time of
redemption'' before the period at the end.
SEC. 305. RELIEF FROM THE AUTOMATIC STAY WHEN THE DEBTOR DOES NOT
COMPLETE INTENDED SURRENDER OF CONSUMER DEBT COLLATERAL.
Title 11, United States Code, is amended--
(1) in section 362--
(A) in subsection (c), by striking ``(e), and (f)''
and inserting ``(e), (f), and (h)''; and
(B) by redesignating subsection (h), as amended by
section 227 of this Act, as subsection (j) and by
inserting after subsection (g) the following:
``(h)(1) Subject to paragraph (2), in an individual case under
chapter 7, 11, or 13 the stay provided by subsection (a) is terminated
with respect to property of the estate securing in whole or in part a
claim, or subject to an unexpired lease, if the debtor fails within the
applicable period of time set by section 521(a)(2) to--
``(A) file timely any statement of intention required under
section 521(a)(2) with respect to that property or to indicate
therein that the debtor--
``(i) will either surrender the property or retain
the property; and
``(ii) if retaining the property, will, as
applicable--
``(I) redeem the property under section
722;
``(II) reaffirm the debt the property
secures under section 524(c); or
``(III) assume the unexpired lease under
section 365(p) if the trustee does not do so;
or
``(B) take timely the action specified in that statement of
intention, as the statement may be amended before expiration of
the period for taking action, unless the statement of intention
specifies reaffirmation and the creditor refuses to reaffirm on
the original contract terms.
``(2) Paragraph (1) shall not apply if the court determines on the
motion of the trustee, and after notice and a hearing, that such
property is of consequential value or benefit to the estate.''; and
(2) in section 521, as amended by section 304 of this Act--
(A) in subsection (a)(2), as redesignated by
section 106(d) of this Act--
(i) by striking ``consumer'';
(ii) in subparagraph (B)--
(I) by striking ``forty-five days
after the filing of a notice of intent
under this section'' and inserting ``30
days after the first date set for the
meeting of creditors under section
341(a)''; and
(II) by striking ``forty-five day
period'' and inserting ``30-day
period''; and
(iii) in subparagraph (C), by inserting
``except as provided in section 362(h)'' before
the semicolon; and
(B) by adding at the end the following:
``(d) If the debtor fails timely to take the action specified in
subsection (a)(6), or in paragraph (1) or (2) of section 362(h), with
respect to property which a lessor or bailor owns and has leased,
rented, or bailed to the debtor or as to which a creditor holds a
security interest not otherwise voidable under section 522(f), 544,
545, 547, 548, or 549, nothing in this title shall prevent or limit the
operation of a provision in the underlying lease or agreement that has
the effect of placing the debtor in default under that lease or
agreement by reason of the occurrence, pendency, or existence of a
proceeding under this title or the insolvency of the debtor. Nothing in
this subsection shall be deemed to justify limiting such a provision in
any other circumstance.''.
SEC. 306. GIVING SECURED CREDITORS FAIR TREATMENT IN CHAPTER 13.
(a) In General.--Section 1325(a)(5)(B)(i) of title 11, United
States Code, is amended to read as follows:
``(i) the plan provides that--
``(I) the holder of such claim retain the
lien securing such claim until the earlier of--
``(aa) the payment of the
underlying debt determined under
nonbankruptcy law; or
``(bb) discharge under section
1328; and
``(II) if the case under this chapter is
dismissed or converted without completion of
the plan, such lien shall also be retained by
such holder to the extent recognized by
applicable nonbankruptcy law; and''.
(b) Restoring the Foundation for Secured Credit.--Section 1325(a)
of title 11, United States Code, is amended by adding at the end the
following flush sentence:
``For purposes of paragraph (5), section 506 shall not apply to a claim
described in that paragraph if the debt that is the subject of the
claim was incurred within the 5-year period preceding the filing of the
petition and the collateral for that debt consists of a motor vehicle
(as defined in section 30102 of title 49) acquired for the personal use
of the debtor, or if collateral for that debt consists of any other
thing of value, if the debt was incurred during the 6-month period
preceding that filing.''.
(c) Definitions.--Section 101 of title 11, United States Code, as
amended by section 211 of this Act, is amended--
(1) by inserting after paragraph (13) the following:
``(13A) `debtor's principal residence'--
``(A) means a residential structure, including
incidental property, without regard to whether that
structure is attached to real property; and
``(B) includes an individual condominium or
cooperative unit;''; and
(2) by inserting after paragraph (27), the following:
``(27A) `incidental property' means, with respect to a
debtor's principal residence--
``(A) property commonly conveyed with a principal
residence in the area where the real estate is located;
``(B) all easements, rights, appurtenances,
fixtures, rents, royalties, mineral rights, oil or gas
rights or profits, water rights, escrow funds, or
insurance proceeds; and
``(C) all replacements or additions;''.
SEC. 307. EXEMPTIONS.
Section 522(b)(3)(A) of title 11, United States Code, as so
designated by section 224 of this Act, is amended--
(1) by striking ``180'' and inserting ``730''; and
(2) by striking ``, or for a longer portion of such 180-day
period than in any other place''.
SEC. 308. RESIDENCY REQUIREMENT FOR HOMESTEAD EXEMPTION.
Section 522 of title 11, United States Code, as amended by section
307 of this Act, is amended--
(1) in subsection (b)(3)(A), by inserting ``subject to
subsection (n),'' before ``any property''; and
(2) by adding at the end the following:
``(n) For purposes of subsection (b)(3)(A), and notwithstanding
subsection (a), the value of an interest in--
``(1) real or personal property that the debtor or a
dependent of the debtor uses as a residence;
``(2) a cooperative that owns property that the debtor or a
dependent of the debtor uses as a residence; or
``(3) a burial plot for the debtor or a dependent of the
debtor;
shall be reduced to the extent such value is attributable to any
portion of any property that the debtor disposed of in the 730-day
period ending on the date of the filing of the petition, with the
intent to hinder, delay, or defraud a creditor and that the debtor
could not exempt, or that portion that the debtor could not exempt,
under subsection (b) if on such date the debtor had held the property
so disposed of.''.
SEC. 309. PROTECTING SECURED CREDITORS IN CHAPTER 13 CASES.
(a) Stopping Abusive Conversions From Chapter 13.--Section
348(f)(1) of title 11, United States Code, is amended--
(1) in subparagraph (A), by striking ``and'' at the end;
(2) in subparagraph (B)--
(A) by striking ``in the converted case, with
allowed secured claims'' and inserting ``only in a case
converted to chapter 11 or 12 but not in a case
converted to chapter 7, with allowed secured claims in
cases under chapters 11 and 12''; and
(B) by striking the period and inserting ``; and'';
and
(3) by adding at the end the following:
``(C) with respect to cases converted from chapter 13--
``(i) the claim of any creditor holding security as
of the date of the petition shall continue to be
secured by that security unless the full amount of such
claim determined under applicable nonbankruptcy law has
been paid in full as of the date of conversion,
notwithstanding any valuation or determination of the
amount of an allowed secured claim made for the
purposes of the chapter 13 proceeding; and
``(ii) unless a prebankruptcy default has been
fully cured under the plan at the time of conversion,
in any proceeding under this title or otherwise, the
default shall have the effect given under applicable
nonbankruptcy law.''.
(b) Giving Debtors the Ability To Keep Leased Personal Property by
Assumption.--Section 365 of title 11, United States Code, is amended by
adding at the end the following:
``(p)(1) If a lease of personal property is rejected or not timely
assumed by the trustee under subsection (d), the leased property is no
longer property of the estate and the stay under section 362(a) is
automatically terminated.
``(2)(A) In the case of an individual under chapter 7, the debtor
may notify the creditor in writing that the debtor desires to assume
the lease. Upon being so notified, the creditor may, at its option,
notify the debtor that it is willing to have the lease assumed by the
debtor and may condition such assumption on cure of any outstanding
default on terms set by the contract.
``(B) If within 30 days after notice is provided under subparagraph
(A), the debtor notifies the lessor in writing that the lease is
assumed, the liability under the lease will be assumed by the debtor
and not by the estate.
``(C) The stay under section 362 and the injunction under section
524(a)(2) shall not be violated by notification of the debtor and
negotiation of cure under this subsection.
``(3) In a case under chapter 11 in which the debtor is an
individual and in a case under chapter 13, if the debtor is the lessee
with respect to personal property and the lease is not assumed in the
plan confirmed by the court, the lease is deemed rejected as of the
conclusion of the hearing on confirmation. If the lease is rejected,
the stay under section 362 and any stay under section 1301 is
automatically terminated with respect to the property subject to the
lease.''.
(c) Adequate Protection of Lessors and Purchase Money Secured
Creditors.--
(1) Confirmation of plan.--Section 1325(a)(5)(B) of title
11, United States Code, is amended--
(A) in clause (i), by striking ``and'' at the end;
(B) in clause (ii), by striking ``or'' at the end
and inserting ``and''; and
(C) by adding at the end the following:
``(iii) if--
``(I) property to be distributed
pursuant to this subsection is in the
form of periodic payments, such
payments shall be in equal monthly
amounts; and
``(II) the holder of the claim is
secured by personal property the amount
of such payments shall not be less than
an amount sufficient to provide to the
holder of such claim adequate
protection during the period of the
plan; or''.
(2) Payments.--Section 1326(a) of title 11, United States
Code, is amended to read as follows:
``(a)(1) Unless the court orders otherwise, the debtor shall--
``(A) commence making the payments proposed by a plan
within 30 days after the plan is filed; or
``(B) if no plan is filed then as specified in the proof of
claim, within 30 days after the order for relief or within 15
days after the plan is filed, whichever is earlier.
``(2) A payment made under this section shall be retained by the
trustee until confirmation, denial of confirmation, or paid by the
trustee as adequate protection payments in accordance with paragraph
(3). If a plan is confirmed, the trustee shall distribute any such
payment in accordance with the plan as soon as is practicable. If a
plan is not confirmed, the trustee shall return any such payments not
previously paid and not yet due and owing to creditors pursuant to
paragraph (3) to the debtor, after deducting any unpaid claim allowed
under section 503(b).
``(3)(A) As soon as is practicable, and not later than 40 days
after the filing of the case, the trustee shall--
``(i) pay from payments made under this section the
adequate protection payments proposed in the plan; or
``(ii) if no plan is filed then, according to the terms of
the proof of claim.
``(B) The court may, upon notice and a hearing, modify, increase,
or reduce the payments required under this paragraph pending
confirmation of a plan.''.
SEC. 310. LIMITATION ON LUXURY GOODS.
Section 523(a)(2)(C) of title 11, United States Code, is amended to
read as follows:
``(C)(i) for purposes of subparagraph (A)--
``(I) consumer debts owed to a single creditor and
aggregating more than $250 for luxury goods or services
incurred by an individual debtor on or within 90 days
before the order for relief under this title are
presumed to be nondischargeable; and
``(II) cash advances aggregating more than $750
that are extensions of consumer credit under an open
end credit plan obtained by an individual debtor on or
within 70 days before the order for relief under this
title, are presumed to be nondischargeable; and
``(ii) for purposes of this subparagraph--
``(I) the term `extension of credit under an open
end credit plan' means an extension of credit under an
open end credit plan, within the meaning of the
Consumer Credit Protection Act (15 U.S.C. 1601 et
seq.);
``(II) the term `open end credit plan' has the
meaning given that term under section 103 of Consumer
Credit Protection Act (15 U.S.C. 1602); and
``(III) the term `luxury goods or services' does
not include goods or services reasonably necessary for
the support or maintenance of the debtor or a dependent
of the debtor.''.
SEC. 311. AUTOMATIC STAY.
Section 362(b) of title 11, United States Code, as amended by
section 303(b) of this Act, is amended--
(1) in paragraph (21), by striking ``or'' at the end;
(2) in paragraph (22), by striking the period at the end
and inserting a semicolon; and
(3) by inserting after paragraph (22) the following:
``(23) under subsection (a)(3), of the continuation of any
eviction, unlawful detainer action, or similar proceeding by a
lessor against a debtor involving residential real property in
which the debtor resides as a tenant under a rental agreement;
``(24) under subsection (a)(3), of the commencement of any
eviction, unlawful detainer action, or similar proceeding by a
lessor against a debtor involving residential real property in
which the debtor resides as a tenant under a rental agreement
that has terminated under the lease agreement or applicable
State law; or
``(25) under subsection (a)(3), of eviction actions based
on endangerment to property or person or the use of illegal
drugs.''.
SEC. 312. EXTENSION OF PERIOD BETWEEN BANKRUPTCY DISCHARGES.
Title 11, United States Code, is amended--
(1) in section 727(a)(8), by striking ``six'' and inserting
``8''; and
(2) in section 1328, by inserting after subsection (e) the
following:
``(f) Notwithstanding subsections (a) and (b), the court shall not
grant a discharge of all debts provided for by the plan or disallowed
under section 502 if the debtor has received a discharge in any case
filed under this title within 5 years before the order for relief under
this chapter.''.
SEC. 313. DEFINITION OF HOUSEHOLD GOODS AND ANTIQUES.
Section 522(f) of title 11, United States Code, is amended by
adding at the end the following:
``(4)(A) Subject to subparagraph (B), for purposes of
paragraph (1)(B), the term `household goods' means--
``(i) clothing;
``(ii) furniture;
``(iii) appliances;
``(iv) 1 radio;
``(v) 1 television;
``(vi) 1 VCR;
``(vii) linens;
``(viii) china;
``(ix) crockery;
``(x) kitchenware;
``(xi) educational materials and educational
equipment primarily for the use of minor dependent
children of the debtor, but only 1 personal computer
only if used primarily for the education or
entertainment of such minor children;
``(xii) medical equipment and supplies;
``(xiii) furniture exclusively for the use of minor
children, or elderly or disabled dependents of the
debtor; and
``(xiv) personal effects (including wedding rings
and the toys and hobby equipment of minor dependent
children) of the debtor and the dependents of the
debtor.
``(B) The term `household goods' does not include--
``(i) works of art (unless by or of the debtor or
the dependents of the debtor);
``(ii) electronic entertainment equipment (except 1
television, 1 radio, and 1 VCR);
``(iii) items acquired as antiques;
``(iv) jewelry (except wedding rings); and
``(v) a computer (except as otherwise provided for
in this section), motor vehicle (including a tractor or
lawn tractor), boat, or a motorized recreational
device, conveyance, vehicle, watercraft, or
aircraft.''.
SEC. 314. DEBT INCURRED TO PAY NONDISCHARGEABLE DEBTS.
(a) In General.--Section 523(a) of title 11, United States Code, is
amended by inserting after paragraph (14) the following:
``(14A)(A) incurred to pay a debt that is nondischargeable
by reason of section 727, 1141, 1228(a), 1228(b), or 1328(b),
or any other provision of this subsection, if the debtor
incurred the debt to pay such a nondischargeable debt with the
intent to discharge in bankruptcy the newly created debt;
except that
``(B) all debts incurred to pay nondischargeable debts
shall be presumed to be nondischargeable debts if incurred
within 70 days before the filing of the petition (except that,
in any case in which there is an allowed claim under section
502 for child support or spousal support entitled to priority
under section 507(a)(1) and that was filed in a timely manner,
debts that would otherwise be presumed to be nondischargeable
debts by reason of this subparagraph shall be treated as
dischargeable debts);''.
(b) Discharge Under Chapter 13.--Section 1328(a) of title 11,
United States Code, is amended by striking paragraphs (1) through (3)
and inserting the following:
``(1) provided for under section 1322(b)(5);
``(2) of the kind specified in paragraph (2), (3), (4),
(7), or (8), of section 523(a);
``(3) for restitution, or a criminal fine, included in a
sentence on the debtor's conviction of a crime; or
``(4) for restitution, or damages, awarded in a civil
action against the debtor as a result of willful or malicious
injury by the debtor that caused personal injury to an
individual or the death of an individual.''.
SEC. 315. GIVING CREDITORS FAIR NOTICE IN CHAPTERS 7 AND 13 CASES.
(a) Notice.--Section 342 of title 11, United States Code, is
amended--
(1) in subsection (c)--
(A) by inserting ``(1)'' after ``(c)''; and
(B) by striking ``, but the failure of such notice
to contain such information shall not invalidate the
legal effect of such notice''; and
(2) by adding at the end the following:
``(d) At any time, a creditor, in a case of an individual debtor
under chapter 7 or 13, may file with the court and serve on the debtor
a notice of the address to be used to notify the creditor in that case.
Five days after receipt of such notice, if the court or the debtor is
required to give the creditor notice, such notice shall be given at
that address.
``(e) An entity may file with the court a notice stating its
address for notice in cases under chapters 7 and 13. After 30 days
following the filing of such notice, any notice in any case filed under
chapter 7 or 13 given by the court shall be to that address unless
specific notice is given under subsection (d) with respect to a
particular case.
``(f)(1) Notice given to a creditor other than as provided in this
section shall not be effective notice until that notice has been
brought to the attention of the creditor. If the creditor designates a
person or department to be responsible for receiving notices concerning
bankruptcy cases and establishes reasonable procedures so that
bankruptcy notices received by the creditor are to be delivered to such
department or person, notice shall not be considered to have been
brought to the attention of the creditor until received by such person
or department.
``(2) No sanction under section 362(h) or any other sanction that a
court may impose on account of violations of the stay under section
362(a) or failure to comply with section 542 or 543 may be imposed on
any action of the creditor unless the action takes place after the
creditor has received notice of the commencement of the case effective
under this section.''.
(b) Debtor's Duties.--Section 521 of title 11, United States Code,
as amended by section 305 of this Act, is amended--
(1) in subsection (a), by striking paragraph (1) and
inserting the following:
``(1) file--
``(A) a list of creditors; and
``(B) unless the court orders otherwise--
``(i) a schedule of assets and liabilities;
``(ii) a schedule of current income and
current expenditures;
``(iii) a statement of the debtor's
financial affairs and, if applicable, a
certificate--
``(I) of an attorney whose name is
on the petition as the attorney for the
debtor or any bankruptcy petition
preparer signing the petition under
section 110(b)(1) indicating that such
attorney or bankruptcy petition
preparer delivered to the debtor any
notice required by section 342(b); or
``(II) if no attorney for the
debtor is indicated and no bankruptcy
petition preparer signed the petition,
of the debtor that such notice was
obtained and read by the debtor;
``(iv) copies of all payment advices or
other evidence of payment, if any, received by
the debtor from any employer of the debtor in
the period 60 days before the filing of the
petition;
``(v) a statement of the amount of
projected monthly net income, itemized to show
how the amount is calculated; and
``(vi) a statement disclosing any
reasonably anticipated increase in income or
expenditures over the 12-month period following
the date of filing''; and
(2) by adding at the end the following:
``(e)(1) At any time, a creditor, in the case of an individual
under chapter 7 or 13, may file with the court notice that the creditor
requests the petition, schedules, and a statement of affairs filed by
the debtor in the case and the court shall make those documents
available to the creditor who request those documents.
``(2)(A) At any time, a creditor in a case under chapter 13 may
file with the court notice that the creditor requests the plan filed by
the debtor in the case.
``(B) The court shall make such plan available to the creditor who
request such plan--
``(i) at a reasonable cost; and
``(ii) not later than 5 days after such request.
``(f) An individual debtor in a case under chapter 7, 11, or 13
shall file with the court at the request of any party in interest--
``(1) at the time filed with the taxing authority, all tax
returns required under applicable law, including any schedules
or attachments, with respect to the period from the
commencement of the case until such time as the case is closed;
``(2) at the time filed with the taxing authority, all tax
returns required under applicable law, including any schedules
or attachments, that were not filed with the taxing authority
when the schedules under subsection (a)(1) were filed with
respect to the period that is 3 years before the order of
relief;
``(3) any amendments to any of the tax returns, including
schedules or attachments, described in paragraph (1) or (2);
and
``(4) in a case under chapter 13, a statement subject to
the penalties of perjury by the debtor of the debtor's income
and expenditures in the preceding tax year and monthly income,
that shows how the amounts are calculated--
``(A) beginning on the date that is the later of 90
days after the close of the debtor's tax year or 1 year
after the order for relief, unless a plan has been
confirmed; and
``(B) thereafter, on or before the date that is 45
days before each anniversary of the confirmation of the
plan until the case is closed.
``(g)(1) A statement referred to in subsection (f)(4) shall
disclose--
``(A) the amount and sources of income of the debtor;
``(B) the identity of any person responsible with the
debtor for the support of any dependent of the debtor; and
``(C) the identity of any person who contributed, and the
amount contributed, to the household in which the debtor
resides.
``(2) The tax returns, amendments, and statement of income and
expenditures described in paragraph (1) shall be available to the
United States trustee, any bankruptcy administrator, any trustee, and
any party in interest for inspection and copying, subject to the
requirements of subsection (h).
``(h)(1) Not later than 30 days after the date of enactment of the
Bankruptcy Reform Act of 2000, the Director of the Administrative
Office of the United States Courts shall establish procedures for
safeguarding the confidentiality of any tax information required to be
provided under this section.
``(2) The procedures under paragraph (1) shall include restrictions
on creditor access to tax information that is required to be provided
under this section.
``(3) Not later than 1 year after the date of enactment of the
Bankruptcy Reform Act of 2000, the Director of the Administrative
Office of the United States Courts shall prepare and submit to Congress
a report that--
``(A) assesses the effectiveness of the procedures under
paragraph (1); and
``(B) if appropriate, includes proposed legislation to--
``(i) further protect the confidentiality of tax
information; and
``(ii) provide penalties for the improper use by
any person of the tax information required to be
provided under this section.
``(i) If requested by the United States trustee or a trustee
serving in the case, the debtor shall provide--
``(1) a document that establishes the identity of the
debtor, including a driver's license, passport, or other
document that contains a photograph of the debtor; and
``(2) such other personal identifying information relating
to the debtor that establishes the identity of the debtor.''.
SEC. 316. DISMISSAL FOR FAILURE TO TIMELY FILE SCHEDULES OR PROVIDE
REQUIRED INFORMATION.
Section 521 of title 11, United States Code, as amended by section
315 of this Act, is amended by adding at the end the following:
``(j)(1) Notwithstanding section 707(a), and subject to paragraph
(2), if an individual debtor in a voluntary case under chapter 7 or 13
fails to file all of the information required under subsection (a)(1)
within 45 days after the filing of the petition commencing the case,
the case shall be automatically dismissed effective on the 46th day
after the filing of the petition.
``(2) With respect to a case described in paragraph (1), any party
in interest may request the court to enter an order dismissing the
case. If requested, the court shall enter an order of dismissal not
later than 5 days after such request.
``(3) Upon request of the debtor made within 45 days after the
filing of the petition commencing a case described in paragraph (1),
the court may allow the debtor an additional period of not to exceed 45
days to file the information required under subsection (a)(1) if the
court finds justification for extending the period for the filing.''.
SEC. 317. ADEQUATE TIME TO PREPARE FOR HEARING ON CONFIRMATION OF THE
PLAN.
(a) Hearing.--Section 1324 of title 11, United States Code, is
amended--
(1) by striking ``After'' and inserting the following:
``(a) Except as provided in subsection (b) and after''; and
(2) by adding at the end the following:
``(b) The hearing on confirmation of the plan may be held not later
than 45 days after the meeting of creditors under section 341(a).''.
(b) Filing of Plan.--Section 1321 of title 11, United States Code,
is amended to read as follows:
``Sec. 1321. Filing of plan
``Not later than 90 days after the order for relief under this
chapter, the debtor shall file a plan, except that the court may extend
such period if the need for an extension is attributable to
circumstances for which the debtor should not justly be held
accountable.''.
SEC. 318. CHAPTER 13 PLANS TO HAVE A 5-YEAR DURATION IN CERTAIN CASES.
Section 1322(d) of title 11, United States Code, is amended to read
as follows:
``(d)(1) Except as provided in paragraph (2), the plan may not
provide for payments over a period that is longer than 3 years.
``(2) The plan may provide for payments over a period that is
longer than 3 years if--
``(A) the plan is for a case that was converted to a case
under this chapter from a case under chapter 7, or the plan is
for a debtor who has been dismissed from chapter 7 by reason of
section 707(b), in which case the plan shall provide for
payments over a period of 5 years; or
``(B) the plan is for a case that is not described in
subparagraph (A), and the court, for cause, approves a period
longer than 3 years, but not to exceed 5 years.''.
SEC. 319. SENSE OF THE CONGRESS REGARDING EXPANSION OF RULE 9011 OF THE
FEDERAL RULES OF BANKRUPTCY PROCEDURE.
It is the sense of Congress that Rule 9011 of the Federal Rules of
Bankruptcy Procedure (11 U.S.C. App.) should be modified to include a
requirement that all documents (including schedules), signed and
unsigned, submitted to the court or to a trustee by debtors who
represent themselves and debtors who are represented by an attorney be
submitted only after the debtor or the debtor's attorney has made
reasonable inquiry to verify that the information contained in such
documents is--
(1) well grounded in fact; and
(2) warranted by existing law or a good-faith argument for
the extension, modification, or reversal of existing law.
SEC. 320. PROMPT RELIEF FROM STAY IN INDIVIDUAL CASES.
Section 362(e) of title 11, United States Code, is amended--
(1) by inserting ``(1)'' after ``(e)''; and
(2) by adding at the end the following:
``(2) Notwithstanding paragraph (1), in the case of an individual
filing under chapter 7, 11, or 13, the stay under subsection (a) shall
terminate on the date that is 60 days after a request is made by a
party in interest under subsection (d), unless--
``(A) a final decision is rendered by the court during the
60-day period beginning on the date of the request; or
``(B) that 60-day period is extended--
``(i) by agreement of all parties in interest; or
``(ii) by the court for such specific period of
time as the court finds is required for good cause, as
described in findings made by the court.''.
SEC. 321. CHAPTER 11 CASES FILED BY INDIVIDUALS.
(a) Property of the Estate.--
(1) In general.--Subchapter I of chapter 11 of title 11,
United States Code, is amended by adding at the end the
following:
``Sec. 1115. Property of the estate
``In a case concerning an individual, property of the estate
includes, in addition to the property specified in section 541--
``(1) all property of the kind specified in section 541
that the debtor acquires after the commencement of the case but
before the case is closed, dismissed, or converted to a case
under chapter 7, 12, or 13, whichever occurs first; and
``(2) earnings from services performed by the debtor after
the commencement of the case but before the case is closed,
dismissed, or converted to a case under chapter 7, 12, or 13,
whichever occurs first.''.
(2) Clerical amendment.--The table of sections for chapter
11 of title 11, United States Code, is amended by adding at the
end of the matter relating to subchapter I the following:
``1115. Property of the estate.''.
(b) Contents of Plan.--Section 1123(a) of title 11, United States
Code, is amended--
(1) in paragraph (6), by striking ``and'' at the end;
(2) in paragraph (7), by striking the period and inserting
``; and''; and
(3) by adding at the end the following:
``(8) in a case concerning an individual, provide for the
payment to creditors through the plan of all or such portion of
earnings from personal services performed by the debtor after
the commencement of the case or other future income of the
debtor as is necessary for the execution of the plan.''.
(c) Confirmation of Plan.--
(1) Requirements relating to value of property.--Section
1129(a) of title 11, United States Code, is amended by adding
at the end the following:
``(14) In a case concerning an individual in which the
holder of an allowed unsecured claim objects to the
confirmation of the plan--
``(A) the value of the property to be distributed
under the plan on account of such claim is, as of the
effective date of the plan, not less than the amount of
such claim; or
``(B) the value of the property to be distributed
under the plan is not less than the debtor's projected
disposable income (as that term is defined in section
1325(b)(2)) to be received during the 3-year period
beginning on the date that the first payment is due
under the plan, or during the term of the plan,
whichever is longer.''.
(2) Requirement relating to interests in property.--Section
1129(b)(2)(B)(ii) of title 11, United States Code, is amended
by inserting before the period at the end the following: ``,
except that in a case concerning an individual, the debtor may
retain property included in the estate under section 1115,
subject to the requirements of subsection (a)(14)''.
(d) Effect of Confirmation--Section 1141(d) of title 11, United
States Code, is amended--
(1) in paragraph (2), by striking ``The confirmation of a
plan does not discharge an individual debtor'' and inserting
``A discharge under this chapter does not discharge a debtor'';
and
(2) by adding at the end the following:
``(5) In a case concerning an individual--
``(A) except as otherwise ordered for cause shown, the
discharge is not effective until completion of all payment
under the plan; and
``(B) at any time after the confirmation of the plan and
after notice and a hearing, the court may grant a discharge to
a debtor that has not completed payments under the plan only
if--
``(i) for each allowed unsecured claim, the value
as of the effective date of the plan, of property
actually distributed under the plan on account of that
claim is not less than the amount that would have been
paid on such claim if the estate of the debtor had been
liquidated under chapter 7 of this title on such date;
and
``(ii) modification of the plan under 1127 of this
title is not practicable.''.
(e) Modification of Plan.--Section 1127 of title 11, United States
Code, is amended by adding at the end the following:
``(e) In a case concerning an individual, the plan may be modified
at any time after confirmation of the plan but before the completion of
payments under the plan, whether or not the plan has been substantially
consummated, upon request of the debtor, the trustee, the United States
trustee, or the holder of an allowed unsecured claim, to--
``(1) increase or reduce the amount of payments on claims
of a particular class provided for by the plan;
``(2) extend or reduce the time period for such payments;
or
``(3) alter the amount of the distribution to a creditor
whose claim is provided for by the plan to the extent necessary
to take account of any payment of such claim made other than
under the plan.
``(f)(1) Sections 1121 through 1128 of this title and the
requirements of section 1129 of this title apply to any modification
under subsection (a).
``(2) The plan, as modified, shall become the plan only after there
has been disclosure under section 1125, as the court may direct, notice
and a hearing, and such modification is approved.''.
SEC. 322. EXCLUDING EMPLOYEE BENEFIT PLAN PARTICIPANT CONTRIBUTIONS AND
OTHER PROPERTY FROM THE ESTATE.
(a) In General.--Section 541(b) of title 11, United States Code, as
amended by section 903 of this Act, is amended--
(1) by striking ``or'' at the end of paragraph (5);
(2) by redesignating paragraph (6) as paragraph (7); and
(3) by inserting after paragraph (5) the following:
``(6) any amount--
``(A) withheld by an employer from the wages of
employees for payment as contributions to--
``(i) an employee benefit plan subject to
title I of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1001 et seq.);
or
``(ii) a health insurance plan regulated by
State law whether or not subject to such title;
or
``(B) received by the employer from employees for
payment as contributions to--
``(i) an employee benefit plan subject to
title I of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1001 et seq.);
or
``(ii) a health insurance plan regulated by
State law whether or not subject to such
title;''.
(b) Application of Amendment.--The amendment made by this section
shall not apply to cases commenced under title 11, United States Code,
before the expiration of the 180-day period beginning on the date of
the enactment of this Act.
SEC. 323. CLARIFICATION OF POSTPETITION WAGES AND BENEFITS.
Section 503(b)(1)(A) of title 11, United States Code, is amended to
read as follows:
``(A) the actual, necessary costs and expenses of
preserving the estate, including wages, salaries, or
commissions for services rendered after the commencement of the
case, and wages and benefits awarded as back pay attributable
to any period of time after commencement of the case as a
result of the debtor's violation of Federal or State law,
without regard to when the original unlawful act occurred or to
whether any services were rendered;''.
SEC. 324. LIMITATION.
(a) Exemptions.--Section 522 of title 11, United States Code, as
amended by sections 224 and 307 of this Act, is amended--
(1) in subsection (b)(3)(A), by inserting ``subject to
subsection (n),'' before ``any property''; and
(2) by adding at the end the following:
``(n)(1) Except as provided in paragraph (2), as a result of
electing under subsection (b)(3)(A) to exempt property under State or
local law, a debtor may not exempt any amount of interest that exceeds
in the aggregate $100,000 in value in--
``(A) real or personal property that the debtor or a
dependent of the debtor uses as a residence;
``(B) a cooperative that owns property that the debtor or a
dependent of the debtor uses as a residence; or
``(C) a burial plot for the debtor or a dependent of the
debtor.
``(2) The limitation under paragraph (1) shall not apply to an
exemption claimed under subsection (b)(3)(A) by a family farmer for the
principal residence of that farmer.''.
(b) Adjustment of Dollar Amounts.--Section 104(b) of title 11,
United States Code, is amended--
(1) in paragraph (1), by striking ``522(d),'' and inserting
``522 (d) or (n),''; and
(2) in paragraph (3), by striking ``522(d),'' and inserting
``522 (d) or (n),''.
SEC. 325. EXCLUSIVE JURISDICTION IN MATTERS INVOLVING BANKRUPTCY
PROFESSIONALS.
Section 1334 of title 28, United States Code, is amended--
(1) in subsection (b) by striking ``Notwithstanding'' and
inserting ``Except as provided in subsection (e)(2), and
notwithstanding''; and
(2) amending subsection (e) to read as follows:
``(e) The district court in which a case under title 11 is
commenced or is pending shall have exclusive jurisdiction--
``(1) of all the property, wherever located, of the debtor
as of the commencement of such case, and of property of the
estate; and
``(2) over all claims or causes of action that involve
construction of section 327 of title 11, United States Code, or
rules relating to disclosure requirements under section 327.''.
SEC. 326. UNITED STATES TRUSTEE PROGRAM FILING FEE INCREASE.
(a) Actions under chapter 7 or 13 of title 11, United States
Code.--Section 1930(a) of title 28, United States Code, is amended by
striking paragraph (1) and inserting the following:
``(1) For a case commenced--
``(A) under chapter 7 of title 11, $160; or
``(B) under chapter 13 of title 11, $150.''.
(b) United States Trustee System Fund.--Section 589a(b) of title
28, United States Code, is amended--
(1) by striking paragraph (1) and inserting the following:
``(1)(A) 40.63 percent of the fees collected under section
1930(a)(1)(A) of this title in cases commenced under chapter 7
of title 11; and
``(B) 70.00 percent of the fees collected under section
1930(a)(1)(B) of this title in cases commenced under chapter 13
of title 11;'';
(2) in paragraph (2) by striking ``one-half'' and inserting
``three-fourths''; and
(3) in paragraph (4) by striking ``one-half'' and inserting
``100 percent''.
(c) Collection and Deposit of Miscellaneous Bankruptcy Fees.--
Section 406(b) of the Judiciary Appropriations Act, 1990 (28 U.S.C.
1931 note) is amended by striking ``pursuant to 28 U.S.C. section
1930(b) and 30.76 per centum of the fees hereafter collected under 28
U.S.C. section 1930(a)(1) and 25 percent of the fees hereafter
collected under 28 U.S.C. section 1930(a)(3) shall be deposited as
offsetting receipts to the fund established under 28 U.S.C. section
1931'' and inserting ``under section 1930(b) of title 28, United States
Code, and 31.25 percent of the fees collected under section
1930(a)(1)(A) of that title, 30.00 percent of the fees collected under
section 1930(a)(1)(B) of that title, and 25 percent of the fees
collected under section 1930(a)(3) of that title shall be deposited as
offsetting receipts to the fund established under section 1931 of that
title''.
SEC. 327. COMPENSATION OF TRUSTEES IN CERTAIN CASES UNDER CHAPTER 7 OF
TITLE 11, UNITED STATES CODE.
Section 326 of title 11, United States Code, is amended by adding
at the end the following:
``(e) In a case that has been converted under section 706, or after
a case has been converted or dismissed under section 707 or the debtor
has been denied a discharge under section 727--
``(1) the court may allow reasonable compensation under
section 330 for the trustee's services rendered, payable after
the trustee renders services; and
``(2) any allowance made by a court under paragraph (1)
shall not be subject to the limitations under subsection
(a).''.
SEC. 328. NONDISCHARGEABILITY OF DEBTS INCURRED THROUGH THE COMMISSION
OF VIOLENCE AT CLINICS.
Section 523(a) of title 11, United States Code, as amended by
section 224 of this Act, is amended--
(1) in paragraph (18), by striking ``or'' at the end;
(2) in paragraph (19)(B), by striking the period and
inserting ``; or''; and
(3) by adding at the end the following:
``(20) that results from any judgment, order, consent
order, or decree entered in any Federal or State court, or
contained in any settlement agreement entered into by the
debtor, including any damages, fine, penalty, citation, or
attorney fee or cost owed by the debtor, arising from--
``(A) an actual or potential action under section
248 of title 18;
``(B) an actual or potential action under any
Federal, State, or local law, the purpose of which is
to protect--
``(i) access to a health care facility,
including a facility providing reproductive
health services, as defined in section 248(e)
of title 18 (referred to in this paragraph as a
`health care facility'); or
``(ii) the provision of health services,
including reproductive health services
(referred to in this paragraph as `health
services');
``(C) an actual or potential action alleging the
violation of any Federal, State, or local statutory or
common law, including chapter 96 of title 18 and the
Federal civil rights laws (including sections 1977
through 1980 of the Revised Statutes) that results from
the debtor's actual, attempted, or alleged--
``(i) harassment of, intimidation of,
interference with, obstruction of, injury to,
threat to, or violence against any person--
``(I) because that person provides
or has provided health services;
``(II) because that person is or
has been obtaining health services; or
``(III) to deter that person, any
other person, or a class of persons
from obtaining or providing health
services; or
``(ii) damage or destruction of property of
a health care facility; or
``(D) an actual or alleged violation of a court
order or injunction that protects access to a health
care facility or the provision of health services.''.
TITLE IV--GENERAL AND SMALL BUSINESS BANKRUPTCY PROVISIONS
Subtitle A--General Business Bankruptcy Provisions
SEC. 401. ROLLING STOCK EQUIPMENT.
(a) In General.--Section 1168 of title 11, United States Code, is
amended to read as follows:
``Sec. 1168. Rolling stock equipment
``(a)(1) The right of a secured party with a security interest in
or of a lessor or conditional vendor of equipment described in
paragraph (2) to take possession of such equipment in compliance with
an equipment security agreement, lease, or conditional sale contract,
and to enforce any of its other rights or remedies under such security
agreement, lease, or conditional sale contract, to sell, lease, or
otherwise retain or dispose of such equipment, is not limited or
otherwise affected by any other provision of this title or by any power
of the court, except that the right to take possession and enforce
those other rights and remedies shall be subject to section 362, if--
``(A) before the date that is 60 days after the date of
commencement of a case under this chapter, the trustee, subject
to the court's approval, agrees to perform all obligations of
the debtor under such security agreement, lease, or conditional
sale contract; and
``(B) any default, other than a default of a kind described
in section 365(b)(2), under such security agreement, lease, or
conditional sale contract that--
``(i) occurs before the date of commencement of the
case and is an event of default therewith is cured
before the expiration of such 60-day period;
``(ii) occurs or becomes an event of default after
the date of commencement of the case and before the
expiration of such 60-day period is cured before the
later of--
``(I) the date that is 30 days after the
date of the default or event of the default; or
``(II) the expiration of such 60-day
period; and
``(iii) occurs on or after the expiration of such
60-day period is cured in accordance with the terms of
such security agreement, lease, or conditional sale
contract, if cure is permitted under that agreement,
lease, or conditional sale contract.
``(2) The equipment described in this paragraph--
``(A) is rolling stock equipment or accessories used on
rolling stock equipment, including superstructures or racks,
that is subject to a security interest granted by, leased to,
or conditionally sold to a debtor; and
``(B) includes all records and documents relating to such
equipment that are required, under the terms of the security
agreement, lease, or conditional sale contract, to be
surrendered or returned by the debtor in connection with the
surrender or return of such equipment.
``(3) Paragraph (1) applies to a secured party, lessor, or
conditional vendor acting in its own behalf or acting as trustee or
otherwise in behalf of another party.
``(b) The trustee and the secured party, lessor, or conditional
vendor whose right to take possession is protected under subsection (a)
may agree, subject to the court's approval, to extend the 60-day period
specified in subsection (a)(1).
``(c)(1) In any case under this chapter, the trustee shall
immediately surrender and return to a secured party, lessor, or
conditional vendor, described in subsection (a)(1), equipment described
in subsection (a)(2), if at any time after the date of commencement of
the case under this chapter such secured party, lessor, or conditional
vendor is entitled under subsection (a)(1) to take possession of such
equipment and makes a written demand for such possession of the
trustee.
``(2) At such time as the trustee is required under paragraph (1)
to surrender and return equipment described in subsection (a)(2), any
lease of such equipment, and any security agreement or conditional sale
contract relating to such equipment, if such security agreement or
conditional sale contract is an executory contract, shall be deemed
rejected.
``(d) With respect to equipment first placed in service on or
before October 22, 1994, for purposes of this section--
``(1) the term `lease' includes any written agreement with
respect to which the lessor and the debtor, as lessee, have
expressed in the agreement or in a substantially
contemporaneous writing that the agreement is to be treated as
a lease for Federal income tax purposes; and
``(2) the term `security interest' means a purchase-money
equipment security interest.
``(e) With respect to equipment first placed in service after
October 22, 1994, for purposes of this section, the term `rolling stock
equipment' includes rolling stock equipment that is substantially
rebuilt and accessories used on such equipment.''.
(b) Aircraft Equipment and Vessels.--Section 1110 of title 11,
United States Code, is amended to read as follows:
``Sec. 1110. Aircraft equipment and vessels
``(a)(1) Except as provided in paragraph (2) and subject to
subsection (b), the right of a secured party with a security interest
in equipment described in paragraph (3), or of a lessor or conditional
vendor of such equipment, to take possession of such equipment in
compliance with a security agreement, lease, or conditional sale
contract, and to enforce any of its other rights or remedies, under
such security agreement, lease, or conditional sale contract, to sell,
lease, or otherwise retain or dispose of such equipment, is not limited
or otherwise affected by any other provision of this title or by any
power of the court.
``(2) The right to take possession and to enforce the other rights
and remedies described in paragraph (1) shall be subject to section 362
if--
``(A) before the date that is 60 days after the date of the
order for relief under this chapter, the trustee, subject to
the approval of the court, agrees to perform all obligations of
the debtor under such security agreement, lease, or conditional
sale contract; and
``(B) any default, other than a default of a kind specified
in section 365(b)(2), under such security agreement, lease, or
conditional sale contract that occurs--
``(i) before the date of the order is cured before
the expiration of such 60-day period;
``(ii) after the date of the order and before the
expiration of such 60-day period is cured before the
later of--
``(I) the date that is 30 days after the
date of the default; or
``(II) the expiration of such 60-day
period; and
``(iii) on or after the expiration of such 60-day
period is cured in compliance with the terms of such
security agreement, lease, or conditional sale
contract, if a cure is permitted under that agreement,
lease, or contract.
``(3) The equipment described in this paragraph--
``(A) is--
``(i) an aircraft, aircraft engine, propeller,
appliance, or spare part (as defined in section 40102
of title 49) that is subject to a security interest
granted by, leased to, or conditionally sold to a
debtor that, at the time such transaction is entered
into, holds an air carrier operating certificate issued
under chapter 447 of title 49 for aircraft capable of
carrying 10 or more individuals or 6,000 pounds or more
of cargo; or
``(ii) a documented vessel (as defined in section
30101(1) of title 46) that is subject to a security
interest granted by, leased to, or conditionally sold
to a debtor that is a water carrier that, at the time
such transaction is entered into, holds a certificate
of public convenience and necessity or permit issued by
the Department of Transportation; and
``(B) includes all records and documents relating to such
equipment that are required, under the terms of the security
agreement, lease, or conditional sale contract, to be
surrendered or returned by the debtor in connection with the
surrender or return of such equipment.
``(4) Paragraph (1) applies to a secured party, lessor, or
conditional vendor acting in its own behalf or acting as trustee or
otherwise in behalf of another party.
``(b) The trustee and the secured party, lessor, or conditional
vendor whose right to take possession is protected under subsection (a)
may agree, subject to the approval of the court, to extend the 60-day
period specified in subsection (a)(1).
``(c)(1) In any case under this chapter, the trustee shall
immediately surrender and return to a secured party, lessor, or
conditional vendor, described in subsection (a)(1), equipment described
in subsection (a)(3), if at any time after the date of the order for
relief under this chapter such secured party, lessor, or conditional
vendor is entitled under subsection (a)(1) to take possession of such
equipment and makes a written demand for such possession to the
trustee.
``(2) At such time as the trustee is required under paragraph (1)
to surrender and return equipment described in subsection (a)(3), any
lease of such equipment, and any security agreement or conditional sale
contract relating to such equipment, if such security agreement or
conditional sale contract is an executory contract, shall be deemed
rejected.
``(d) With respect to equipment first placed in service on or
before October 22, 1994, for purposes of this section--
``(1) the term `lease' includes any written agreement with
respect to which the lessor and the debtor, as lessee, have
expressed in the agreement or in a substantially
contemporaneous writing that the agreement is to be treated as
a lease for Federal income tax purposes; and
``(2) the term `security interest' means a purchase-money
equipment security interest.''.
SEC. 402. ADEQUATE PROTECTION FOR INVESTORS.
(a) Definition.--Section 101 of title 11, United States Code, as
amended by section 306(c) of this Act, is amended by inserting after
paragraph (48) the following:
``(48A) `securities self regulatory organization' means
either a securities association registered with the Securities
and Exchange Commission under section 15A of the Securities
Exchange Act of 1934 (15 U.S.C. 78o-3) or a national securities
exchange registered with the Securities and Exchange Commission
under section 6 of the Securities Exchange Act of 1934 (15
U.S.C. 78f);''.
(b) Automatic Stay.--Section 362(b) of title 11, United States
Code, as amended by section 311 of this Act, is amended--
(1) in paragraph (24), by striking ``or'' at the end;
(2) in paragraph (25), by striking the period at the end
and inserting ``; or''; and
(3) by inserting after paragraph (25) the following:
``(26) under subsection (a), of--
``(A) the commencement or continuation of an
investigation or action by a securities self regulatory
organization to enforce such organization's regulatory
power;
``(B) the enforcement of an order or decision,
other than for monetary sanctions, obtained in an
action by the securities self regulatory organization
to enforce such organization's regulatory power; or
``(C) any act taken by the securities self
regulatory organization to delist, delete, or refuse to
permit quotation of any stock that does not meet
applicable regulatory requirements.''.
SEC. 403. MEETINGS OF CREDITORS AND EQUITY SECURITY HOLDERS.
Section 341 of title 11, United States Code, is amended by adding
at the end the following:
``(e) Notwithstanding subsections (a) and (b), the court, on the
request of a party in interest and after notice and a hearing, for
cause may order that the United States trustee not convene a meeting of
creditors or equity security holders if the debtor has filed a plan as
to which the debtor solicited acceptances prior to the commencement of
the case.''.
SEC. 404. PROTECTION OF REFINANCE OF SECURITY INTEREST.
Subparagraphs (A), (B), and (C) of section 547(e)(2) of title 11,
United States Code, are each amended by striking ``10'' each place it
appears and inserting ``30''.
SEC. 405. EXECUTORY CONTRACTS AND UNEXPIRED LEASES.
Section 365(d)(4) of title 11, United States Code, is amended to
read as follows:
``(4)(A) Subject to subparagraph (B), in any case under any chapter
of this title, an unexpired lease of nonresidential real property under
which the debtor is the lessee shall be deemed rejected and the trustee
shall immediately surrender that nonresidential real property to the
lessor if the trustee does not assume or reject the unexpired lease by
the earlier of--
``(i) the date that is 120 days after the date of the order
for relief; or
``(ii) the date of the entry of an order confirming a plan.
``(B) The court may extend the period determined under subparagraph
(A) only upon a motion of the lessor.''.
SEC. 406. CREDITORS AND EQUITY SECURITY HOLDERS COMMITTEES.
(a) Appointment.--Section 1102(a)(2) of title 11, United States
Code, is amended by inserting before the first sentence the following:
``On its own motion or on request of a party in interest, and after
notice and hearing, the court may order a change in the membership of a
committee appointed under this subsection, if the court determines that
the change is necessary to ensure adequate representation of creditors
or equity security holders. The court may increase the number of
members of a committee to include a creditor that is a small business
concern (as described in section 3(a)(1) of the Small Business Act (15
U.S.C. 632(a)(1))), if the court determines that the creditor holds
claims (of the kind represented by the committee) the aggregate amount
of which, in comparison to the annual gross revenue of that creditor,
is disproportionately large.''.
(b) Information.--Section 1102(b) of title 11, United States Code,
is amended by adding at the end the following:
``(3) A committee appointed under subsection (a) shall--
``(A) provide access to information for creditors who--
``(i) hold claims of the kind represented by that
committee; and
``(ii) are not appointed to the committee;
``(B) solicit and receive comments from the creditors
described in subparagraph (A); and
``(C) be subject to a court order that compels any
additional report or disclosure to be made to the creditors
described in subparagraph (A).''.
SEC. 407. AMENDMENT TO SECTION 546 OF TITLE 11, UNITED STATES CODE.
Section 546 of title 11, United States Code, is amended--
(1) by redesignating the second subsection designated as
subsection (g) (as added by section 222(a) of Public Law 103-
394) as subsection (i); and
(2) by adding at the end the following:
``(j)(1) Notwithstanding section 545 (2) and (3), the trustee may
not avoid a warehouseman's lien for storage, transportation or other
costs incidental to the storage and handling of goods.
``(2) The prohibition under paragraph (1) shall be applied in a
manner consistent with any applicable State statute that is similar to
section 7-209 of the Uniform Commercial Code.''.
SEC. 408. LIMITATION.
Section 546(c)(1)(B) of title 11, United States Code, is amended by
striking ``20'' and inserting ``45''.
SEC. 409. AMENDMENT TO SECTION 330(A) OF TITLE 11, UNITED STATES CODE.
Section 330(a)(3) of title 11, United States Code, is amended--
(1) by striking ``(A) the; and inserting ``(i) the'';
(2) by striking ``(B)'' and inserting ``(ii)'';
(3) by striking ``(C)'' and inserting ``(iii)'';
(4) by striking ``(D)'' and inserting ``(iv)'';
(5) by striking ``(E)'' and inserting ``(v)'';
(6) in subparagraph (A), by inserting ``to an examiner,
trustee under chapter 11, or professional person'' after
``awarded''; and
(7) by adding at the end the following:
``(B) In determining the amount of reasonable compensation to be
awarded a trustee, the court shall treat such compensation as a
commission based on the results achieved.''.
SEC. 410. POSTPETITION DISCLOSURE AND SOLICITATION.
Section 1125 of title 11, United States Code, is amended by adding
at the end the following:
``(g) Notwithstanding subsection (b), an acceptance or rejection of
the plan may be solicited from a holder of a claim or interest if such
solicitation complies with applicable nonbankruptcy law and if such
holder was solicited before the commencement of the case in a manner
complying with applicable nonbankruptcy law.''.
SEC. 411. PREFERENCES.
Section 547(c) of title 11, United States Code, is amended--
(1) by striking paragraph (2) and inserting the following:
``(2) to the extent that such transfer was in payment of a
debt incurred by the debtor in the ordinary course of business
or financial affairs of the debtor and the transferee, and such
transfer was--
``(A) made in the ordinary course of business or
financial affairs of the debtor and the transferee; or
``(B) made according to ordinary business terms;'';
(2) in paragraph (7) by striking ``or'' at the end;
(3) in paragraph (8) by striking the period at the end and
inserting ``; or''; and
(4) by adding at the end the following:
``(9) if, in a case filed by a debtor whose debts are not
primarily consumer debts, the aggregate value of all property
that constitutes or is affected by such transfer is less than
$5,000.''.
SEC. 412. VENUE OF CERTAIN PROCEEDINGS.
Section 1409(b) of title 28, United States Code, is amended by
inserting ``, or a nonconsumer debt against a noninsider of less than
$10,000,'' after ``$5,000''.
SEC. 413. PERIOD FOR FILING PLAN UNDER CHAPTER 11.
Section 1121(d) of title 11, United States Code, is amended--
(1) by striking ``On'' and inserting ``(1) Subject to
paragraph (1), on''; and
(2) by adding at the end the following:
``(2)(A) The 120-day period specified in paragraph (1) may not be
extended beyond a date that is 18 months after the date of the order
for relief under this chapter.
``(B) The 180-day period specified in paragraph (1) may not be
extended beyond a date that is 20 months after the date of the order
for relief under this chapter.''.
SEC. 414. FEES ARISING FROM CERTAIN OWNERSHIP INTERESTS.
Section 523(a)(16) of title 11, United States Code, is amended--
(1) by striking ``dwelling'' the first place it appears;
(2) by striking ``ownership or'' and inserting
``ownership,'';
(3) by striking ``housing'' the first place it appears; and
(4) by striking ``but only'' and all that follows through
``but nothing in this paragraph'' and inserting ``or a lot in a
homeowners association, for as long as the debtor or the
trustee has a legal, equitable, or possessory ownership
interest in such unit, such corporation, or such lot, and until
such time as the debtor or trustee has surrendered any legal,
equitable or possessory interest in such unit, such
corporation, or such lot, but nothing in this paragraph''.
SEC. 415. CREDITOR REPRESENTATION AT FIRST MEETING OF CREDITORS.
Section 341(c) of title 11, United States Code, is amended by
inserting after the first sentence the following: ``Notwithstanding any
local court rule, provision of a State constitution, any other Federal
or State law that is not a bankruptcy law, or other requirement that
representation at the meeting of creditors under subsection (a) be by
an attorney, a creditor holding a consumer debt or any representative
of the creditor (which may include an entity or an employee of an
entity and may be a representative for more than 1 creditor) shall be
permitted to appear at and participate in the meeting of creditors in a
case under chapter 7 or 13, either alone or in conjunction with an
attorney for the creditor. Nothing in this subsection shall be
construed to require any creditor to be represented by an attorney at
any meeting of creditors.''.
SEC. 416. DEFINITION OF DISINTERESTED PERSON.
Section 101(14) of title 11, United States Code, is amended to read
as follows:
``(14) `disinterested person' means a person that--
``(A) is not a creditor, an equity security holder,
or an insider;
``(B) is not and was not, within 2 years before the
date of the filing of the petition, a director,
officer, or employee of the debtor; and
``(C) does not have an interest materially adverse
to the interest of the estate or of any class of
creditors or equity security holders, by reason of any
direct or indirect relationship to, connection with, or
interest in, the debtor, or for any other reason;''.
SEC. 417. FACTORS FOR COMPENSATION OF PROFESSIONAL PERSONS.
Section 330(a)(3)(A) of title 11, United States Code, as amended by
section 409 of this Act, is amended--
(1) in clause (i), by striking ``and'' at the end;
(2) by redesignating clause (v) as clause (vi); and
(3) by inserting after clause (iv) the following:
``(v) with respect to a professional person, whether the
person is board certified or otherwise has demonstrated skill
and experience in the bankruptcy field;''.
SEC. 418. APPOINTMENT OF ELECTED TRUSTEE.
Section 1104(b) of title 11, United States Code, is amended--
(1) by inserting ``(1)'' after ``(b)''; and
(2) by adding at the end the following:
``(2)(A) If an eligible, disinterested trustee is elected at a
meeting of creditors under paragraph (1), the United States trustee
shall file a report certifying that election.
``(B) Upon the filing of a report under subparagraph (A)--
``(i) the trustee elected under paragraph (1) shall be
considered to have been selected and appointed for purposes of
this section; and
``(ii) the service of any trustee appointed under
subsection (d) shall terminate.
``(C) In the case of any dispute arising out of an election
described in subparagraph (A), the court shall resolve the dispute.''.
SEC. 419. UTILITY SERVICE.
Section 366 of title 11, United States Code, is amended--
(1) in subsection (a), by striking ``subsection (b)'' and
inserting ``subsections (b) and (c)''; and
(2) by adding at the end the following:
``(c)(1)(A) For purposes of this subsection, the term `assurance of
payment' means--
``(i) a cash deposit;
``(ii) a letter of credit;
``(iii) a certificate of deposit;
``(iv) a surety bond;
``(v) a prepayment of utility consumption; or
``(vi) another form of security that is mutually agreed on
between the utility and the debtor or the trustee.
``(B) For purposes of this subsection an administrative expense
priority shall not constitute an assurance of payment.
``(2) Subject to paragraphs (3) through (5), with respect to a case
filed under chapter 11, a utility referred to in subsection (a) may
alter, refuse, or discontinue utility service, if during the 20-day
period beginning on the date of filing of the petition, the utility
does not receive from the debtor or the trustee adequate assurance of
payment for utility service that is satisfactory to the utility.
``(3)(A) On request of a party in interest and after notice and a
hearing, the court may order modification of the amount of an assurance
of payment under paragraph (2).
``(B) In making a determination under this paragraph whether an
assurance of payment is adequate, the court may not consider--
``(i) the absence of security before the date of filing of
the petition;
``(ii) the payment by the debtor of charges for utility
service in a timely manner before the date of filing of the
petition; or
``(iii) the availability of an administrative expense
priority.
``(4) Notwithstanding any other provision of law, with respect to a
case subject to this subsection, a utility may recover or set off
against a security deposit provided to the utility by the debtor before
the date of filing of the petition without notice or order of the
court.''.
SEC. 420. BANKRUPTCY FEES.
Section 1930 of title 28, United States Code, is amended--
(1) in subsection (a), by striking ``Notwithstanding
section 1915 of this title, the parties'' and inserting
``Subject to subsection (f), the parties''; and
(2) by adding at the end the following:
``(f)(1) The Judicial Conference of the United States shall
prescribe procedures for waiving fees under this subsection.
``(2) Under the procedures described in paragraph (1), the district
court or the bankruptcy court may waive a filing fee described in
paragraph (3) for a case commenced under chapter 7 of title 11 if the
court determines that an individual debtor whose income is less than
125 percent of the income official poverty line (as defined by the
Office of Management and Budget, and revised annually in accordance
with section 673(2) of the Omnibus Budget Reconciliation Act of 1981)
applicable to a family of the size involved is unable to pay that fee
in installments.
``(3) A filing fee referred to in paragraph (2) is--
``(A) a filing fee under subsection (a)(1); or
``(B) any other fee prescribed by the Judicial Conference
of the United States under subsection (b) that is payable to
the clerk of the district court or the clerk of the bankruptcy
court upon the commencement of a case under chapter 7 of title
11.
``(4) In addition to waiving a fee under paragraph (2), the
district court or the bankruptcy court may waive any other fee
prescribed under subsection (b) or (c) if the court determines that the
individual with an income at a level described in paragraph (2) is
unable to pay that fee in installments.''.
SEC. 421. MORE COMPLETE INFORMATION REGARDING ASSETS OF THE ESTATE.
(a) In General.--
(1) Disclosure.--The Advisory Committee on Bankruptcy Rules
of the Judicial Conference of the United States, after
consideration of the views of the Director of the Executive
Office for the United States Trustees, shall propose for
adoption amended Federal Rules of Bankruptcy Procedure and
Official Bankruptcy Forms directing debtors under chapter 11 of
title 11, United States Code, to disclose the information
described in paragraph (2) by filing and serving periodic
financial and other reports designed to provide such
information.
(2) Information.--The information referred to in paragraph
(1) is the value, operations, and profitability of any closely
held corporation, partnership, or of any other entity in which
the debtor holds a substantial or controlling interest.
(b) Purpose.--The purpose of the rules and reports under subsection
(a) shall be to assist parties in interest taking steps to ensure that
the debtor's interest in any entity referred to in subsection (a)(2) is
used for the payment of allowed claims against debtor.
Subtitle B--Small Business Bankruptcy Provisions
SEC. 431. FLEXIBLE RULES FOR DISCLOSURE STATEMENT AND PLAN.
Section 1125 of title 11, United States Code, is amended by
striking subsection (f) and inserting the following:
``(f) Notwithstanding subsection (b), in a small business case--
``(1) in determining whether a disclosure statement
provides adequate information, the court shall consider the
complexity of the case, the benefit of additional information
to creditors and other parties in interest, and the cost of
providing additional information;
``(2) the court may determine that the plan itself provides
adequate information and that a separate disclosure statement
is not necessary;
``(3) the court may approve a disclosure statement
submitted on standard forms approved by the court or adopted
under section 2075 of title 28; and
``(4)(A) the court may conditionally approve a disclosure
statement subject to final approval after notice and a hearing;
``(B) acceptances and rejections of a plan may be solicited
based on a conditionally approved disclosure statement if the
debtor provides adequate information to each holder of a claim
or interest that is solicited, but a conditionally approved
disclosure statement shall be mailed not later than 20 days
before the date of the hearing on confirmation of the plan; and
``(C) the hearing on the disclosure statement may be
combined with the hearing on confirmation of a plan.''.
SEC. 432. DEFINITIONS; EFFECT OF DISCHARGE.
(a) Definitions.--Section 101 of title 11, United States Code, as
amended by section 402 of this Act, is amended by striking paragraph
(51C) and inserting the following:
``(51C) `small business case' means a case filed under
chapter 11 of this title in which the debtor is a small
business debtor;
``(51D) `small business debtor'--
``(A) subject to subparagraph (B), means a person
(including any affiliate of such person that is also a
debtor under this title and excluding a person whose
primary activity is the business of owning and
operating real property and activities incidental
thereto) that has aggregate noncontingent, liquidated
secured and unsecured debts as of the date of the
petition or the order for relief in an amount not more
than $3,000,000 (excluding debts owed to 1 or more
affiliates or insiders) for a case in which the United
States trustee has appointed under section 1102(a)(1) a
committee of unsecured creditors that the court has
determined is sufficiently active and representative to
provide effective oversight of the debtor; and
``(B) does not include any member of a group of
affiliated debtors that has aggregate noncontingent
liquidated secured and unsecured debts in an amount
greater than $4,000,000 (excluding debt owed to 1 or
more affiliates or insiders);''.
(b) Conforming Amendment.--Section 1102(a)(3) of title 11, United
States Code, is amended by inserting ``debtor'' after ``small
business''.
SEC. 433. STANDARD FORM DISCLOSURE STATEMENT AND PLAN.
Within a reasonable period of time after the date of the enactment
of this Act, the Advisory Committee on Bankruptcy Rules of the Judicial
Conference of the United States shall propose for adoption standard
form disclosure statements and plans of reorganization for small
business debtors (as defined in section 101 of title 11, United States
Code, as amended by this Act), designed to achieve a practical balance
between--
(1) the reasonable needs of the courts, the United States
trustee, creditors, and other parties in interest for
reasonably complete information; and
(2) economy and simplicity for debtors.
SEC. 434. UNIFORM NATIONAL REPORTING REQUIREMENTS.
(a) Reporting Required.--
(1) In general.--Chapter 3 of title 11, United States Code,
is amended by inserting after section 307 the following:
``Sec. 308. Debtor reporting requirements
``(1) For purposes of this section, the term `profitability' means,
with respect to a debtor, the amount of money that the debtor has
earned or lost during current and recent fiscal periods.
``(2) A small business debtor shall file periodic financial and
other reports containing information including--
``(A) the debtor's profitability;
``(B) reasonable approximations of the debtor's projected
cash receipts and cash disbursements over a reasonable period;
``(C) comparisons of actual cash receipts and disbursements
with projections in prior reports;
``(D)(i) whether the debtor is--
``(I) in compliance in all material respects with
postpetition requirements imposed by this title and the
Federal Rules of Bankruptcy Procedure; and
``(II) timely filing tax returns and other required
government filings and paying taxes and other
administrative claims when due; and
``(ii) if the debtor is not in compliance with the
requirements referred to in clause (i)(I) or filing tax returns
and other required government filings and making the payments
referred to in clause (i)(II), what the failures are and how,
at what cost, and when the debtor intends to remedy such
failures; and
``(iii) such other matters as are in the best interests of
the debtor and creditors, and in the public interest in fair
and efficient procedures under chapter 11 of this title.''.
(2) Clerical amendment.--The table of sections for chapter
3 of title 11, United States Code, is amended by inserting
after the item relating to section 307 the following:
``308. Debtor reporting requirements.''.
(b) Effective Date.--The amendments made by subsection (a) shall
take effect 60 days after the date on which rules are prescribed under
section 2075 of title 28, United States Code, to establish forms to be
used to comply with section 308 of title 11, United States Code, as
added by subsection (a).
SEC. 435. UNIFORM REPORTING RULES AND FORMS FOR SMALL BUSINESS CASES.
(a) Proposal of Rules and Forms.--The Advisory Committee on
Bankruptcy Rules of the Judicial Conference of the United States shall
propose for adoption amended Federal Rules of Bankruptcy Procedure and
Official Bankruptcy Forms to be used by small business debtors to file
periodic financial and other reports containing information, including
information relating to--
(1) the debtor's profitability;
(2) the debtor's cash receipts and disbursements; and
(3) whether the debtor is timely filing tax returns and
paying taxes and other administrative claims when due.
(b) Purpose.--The rules and forms proposed under subsection (a)
shall be designed to achieve a practical balance among--
(1) the reasonable needs of the bankruptcy court, the
United States trustee, creditors, and other parties in interest
for reasonably complete information;
(2) the small business debtor's interest that required
reports be easy and inexpensive to complete; and
(3) the interest of all parties that the required reports
help the small business debtor to understand the small business
debtor's financial condition and plan the small business
debtor's future.
SEC. 436. DUTIES IN SMALL BUSINESS CASES.
(a) Duties in Chapter 11 Cases.--Subchapter I of title 11, United
States Code, as amended by section 321 of this Act, is amended by
adding at the end the following:
``Sec. 1116. Duties of trustee or debtor in possession in small
business cases
``In a small business case, a trustee or the debtor in possession,
in addition to the duties provided in this title and as otherwise
required by law, shall--
``(1) append to the voluntary petition or, in an
involuntary case, file within 7 days after the date of the
order for relief--
``(A) its most recent balance sheet, statement of
operations, cash-flow statement, Federal income tax
return; or
``(B) a statement made under penalty of perjury
that no balance sheet, statement of operations, or
cash-flow statement has been prepared and no Federal
tax return has been filed;
``(2) attend, through its senior management personnel and
counsel, meetings scheduled by the court or the United States
trustee, including initial debtor interviews, scheduling
conferences, and meetings of creditors convened under section
341 unless the court waives that requirement after notice and
hearing, upon a finding of extraordinary and compelling
circumstances;
``(3) timely file all schedules and statements of financial
affairs, unless the court, after notice and a hearing, grants
an extension, which shall not extend such time period to a date
later than 30 days after the date of the order for relief,
absent extraordinary and compelling circumstances;
``(4) file all postpetition financial and other reports
required by the Federal Rules of Bankruptcy Procedure or by
local rule of the district court;
``(5) subject to section 363(c)(2), maintain insurance
customary and appropriate to the industry;
``(6)(A) timely file tax returns and other required
government filings; and
``(B) subject to section 363(c)(2), timely pay all
administrative expense tax claims, except those being contested
by appropriate proceedings being diligently prosecuted; and
``(7) allow the United States trustee, or a designated
representative of the United States trustee, to inspect the
debtor's business premises, books, and records at reasonable
times, after reasonable prior written notice, unless notice is
waived by the debtor.''.
(b) Clerical Amendment.--The table of sections for chapter 11 of
title 11, United States Code, is amended by adding at the end of the
matter relating to subchapter I the following:
``1116. Duties of trustee or debtor in possession in small business
cases.''.
SEC. 437. PLAN FILING AND CONFIRMATION DEADLINES.
Section 1121 of title 11, United States Code, is amended by
striking subsection (e) and inserting the following:
``(e) In a small business case--
``(1) only the debtor may file a plan until after 180 days
after the date of the order for relief, unless that period is--
``(A) extended as provided by this subsection,
after notice and hearing; or
``(B) the court, for cause, orders otherwise;
``(2) the plan, and any necessary disclosure statement,
shall be filed not later than 300 days after the date of the
order for relief; and
``(3) the time periods specified in paragraphs (1) and (2),
and the time fixed in section 1129(e), within which the plan
shall be confirmed, may be extended only if--
``(A) the debtor, after providing notice to parties
in interest (including the United States trustee),
demonstrates by a preponderance of the evidence that it
is more likely than not that the court will confirm a
plan within a reasonable period of time;
``(B) a new deadline is imposed at the time the
extension is granted; and
``(C) the order extending time is signed before the
existing deadline has expired.''.
SEC. 438. PLAN CONFIRMATION DEADLINE.
Section 1129 of title 11, United States Code, is amended by adding
at the end the following:
``(e) In a small business case, the plan shall be confirmed not
later than 175 days after the date of the order for relief, unless such
175-day period is extended as provided in section 1121(e)(3).''.
SEC. 439. DUTIES OF THE UNITED STATES TRUSTEE.
Section 586(a) of title 28, United States Code, is amended--
(1) in paragraph (3)--
(A) in subparagraph (G), by striking ``and'' at the
end;
(B) by redesignating subparagraph (H) as
subparagraph (I); and
(C) by inserting after subparagraph (G) the
following:
``(H) in small business cases (as defined in
section 101 of title 11), performing the additional
duties specified in title 11 pertaining to such
cases;'';
(2) in paragraph (5), by striking ``and'' at the end;
(3) in paragraph (6), by striking the period at the end and
inserting ``; and''; and
(4) by inserting after paragraph (6) the following:
``(7) in each of such small business cases--
``(A) conduct an initial debtor interview as soon
as practicable after the entry of order for relief but
before the first meeting scheduled under section 341(a)
of title 11, at which time the United States trustee
shall--
``(i) begin to investigate the debtor's
viability;
``(ii) inquire about the debtor's business
plan;
``(iii) explain the debtor's obligations to
file monthly operating reports and other
required reports;
``(iv) attempt to develop an agreed
scheduling order; and
``(v) inform the debtor of other
obligations;
``(B) if determined to be appropriate and
advisable, visit the appropriate business premises of
the debtor and ascertain the state of the debtor's
books and records and verify that the debtor has filed
its tax returns; and
``(C) review and monitor diligently the debtor's
activities, to identify as promptly as possible whether
the debtor will be unable to confirm a plan; and
``(8) in any case in which the United States trustee finds
material grounds for any relief under section 1112 of title 11,
the United States trustee shall apply promptly after making
that finding to the court for relief.''.
SEC. 440. SCHEDULING CONFERENCES.
Section 105(d) of title 11, United States Code, is amended--
(1) in the matter preceding paragraph (1), by striking
``, may'';
(2) by striking paragraph (1) and inserting the following:
``(1) shall hold such status conferences as are necessary
to further the expeditious and economical resolution of the
case; and''; and
(3) in paragraph (2), by striking ``unless inconsistent
with another provision of this title or with applicable Federal
Rules of Bankruptcy Procedure,''.
SEC. 441. SERIAL FILER PROVISIONS.
Section 362 of title 11, United States Code, is amended--
(1) in subsection (j), as redesignated by section 305(1) of
this Act--
(A) by striking ``An'' and inserting ``(1) Except
as provided in paragraph (2), an''; and
(B) by adding at the end the following:
``(2) If such violation is based on an action taken by an entity in
the good faith belief that subsection (h) applies to the debtor, the
recovery under paragraph (1) against such entity shall be limited to
actual damages.''; and
(2) by inserting after subsection (j) the following:
``(k)(1) Except as provided in paragraph (2), the filing of a
petition under chapter 11 operates as a stay of the acts described in
subsection (a) only in an involuntary case involving no collusion by
the debtor with creditors and in which the debtor--
``(A) is a debtor in a small business case pending at the
time the petition is filed;
``(B) was a debtor in a small business case that was
dismissed for any reason by an order that became final in the
2-year period ending on the date of the order for relief
entered with respect to the petition;
``(C) was a debtor in a small business case in which a plan
was confirmed in the 2-year period ending on the date of the
order for relief entered with respect to the petition; or
``(D) is an entity that has succeeded to substantially all
of the assets or business of a small business debtor described
in subparagraph (A), (B), or (C).
``(2) Paragraph (1) does not apply to the filing of a petition if
the debtor proves by a preponderance of the evidence that--
``(A) the filing of that petition resulted from
circumstances beyond the control of the debtor not foreseeable
at the time the case then pending was filed; and
``(B) it is more likely than not that the court will
confirm a feasible plan, but not a liquidating plan, within a
reasonable period of time.''.
SEC. 442. EXPANDED GROUNDS FOR DISMISSAL OR CONVERSION AND APPOINTMENT
OF TRUSTEE.
(a) Expanded Grounds for Dismissal or Conversion.--Section 1112 of
title 11, United States Code, is amended by striking subsection (b) and
inserting the following:
``(b)(1) Except as provided in paragraph (2), in subsection (c),
and section 1104(a)(3), on request of a party in interest, and after
notice and a hearing, the court shall convert a case under this chapter
to a case under chapter 7 or dismiss a case under this chapter,
whichever is in the best interest of creditors and the estate, if the
movant establishes cause.
``(2) The relief provided in paragraph (1) shall not be granted if
the debtor or another party in interest objects and establishes by a
preponderance of the evidence that--
``(A) a plan with a reasonable possibility of being
confirmed will be filed within a reasonable period of time; and
``(B) if the grounds include an act or omission of the
debtor--
``(i) for which there exists a reasonable
justification for the act or omission; and
``(ii) which will be cured within a reasonable
period of time fixed by the court.
``(3) The court shall commence the hearing on any motion under this
subsection not later than 30 days after filing of the motion, and shall
decide the motion within 15 days after commencement of the hearing,
unless the movant expressly consents to a continuance for a specific
period of time or compelling circumstances prevent the court from
meeting the time limits established by this paragraph.
``(4) For purposes of this subsection, cause includes--
``(A) substantial or continuing loss to or diminution of
the estate;
``(B) gross mismanagement of the estate;
``(C) failure to maintain appropriate insurance that poses
a risk to the estate or to the public;
``(D) unauthorized use of cash collateral harmful to 1 or
more creditors;
``(E) failure to comply with an order of the court;
``(F) repeated failure timely to satisfy any filing or
reporting requirement established by this title or by any rule
applicable to a case under this chapter;
``(G) failure to attend the meeting of creditors convened
under section 341(a) or an examination ordered under Rule 2004
of the Federal Rules of Bankruptcy Procedure;
``(H) failure timely to provide information or attend
meetings reasonably requested by the United States trustee;
``(I) failure timely to pay taxes due after the date of the
order for relief or to file tax returns due after the order for
relief;
``(J) failure to file a disclosure statement, or to file or
confirm a plan, within the time fixed by this title or by order
of the court;
``(K) failure to pay any fees or charges required under
chapter 123 of title 28;
``(L) revocation of an order of confirmation under section
1144;
``(M) inability to effectuate substantial consummation of a
confirmed plan;
``(N) material default by the debtor with respect to a
confirmed plan;
``(O) termination of a confirmed plan by reason of the
occurrence of a condition specified in the plan; and
``(P) failure of the debtor to pay any domestic support
obligation that first becomes payable after the date on which
the petition is filed.
``(5) The court shall commence the hearing on any motion under this
subsection not later than 30 days after filing of the motion, and shall
decide the motion within 15 days after commencement of the hearing,
unless the movant expressly consents to a continuance for a specific
period of time or compelling circumstances prevent the court from
meeting the time limits established by this paragraph.''.
(b) Additional Grounds for Appointment of Trustee.--Section 1104(a)
of title 11, United States Code, is amended--
(1) in paragraph (1), by striking ``or'' at the end;
(2) in paragraph (2), by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following:
``(3) if grounds exist to convert or dismiss the case under
section 1112, but the court determines that the appointment of
a trustee or an examiner is in the best interests of creditors
and the estate.''.
SEC. 443. STUDY OF OPERATION OF TITLE 11, UNITED STATES CODE, WITH
RESPECT TO SMALL BUSINESSES.
Not later than 2 years after the date of the enactment of this Act,
the Administrator of the Small Business Administration, in consultation
with the Attorney General of the United States, the Director of the
Administrative Office of United States Trustees, and the Director of
the Administrative Office of the United States Courts, shall--
(1) conduct a study to determine--
(A) the internal and external factors that cause
small businesses, especially sole proprietorships, to
become debtors in cases under title 11, United States
Code, and that cause certain small businesses to
successfully complete cases under chapter 11 of such
title; and
(B) how Federal laws relating to bankruptcy may be
made more effective and efficient in assisting small
businesses to remain viable; and
(2) submit to the President pro tempore of the Senate and
the Speaker of the House of Representatives a report
summarizing that study.
SEC. 444. PAYMENT OF INTEREST.
Section 362(d)(3) of title 11, United States Code, is amended--
(1) by inserting ``or 30 days after the court determines
that the debtor is subject to this paragraph, whichever is
later'' after ``90-day period)''; and
(2) by striking subparagraph (B) and inserting the
following:
``(B) the debtor has commenced monthly payments
that--
``(i) may, in the debtor's sole discretion,
notwithstanding section 363(c)(2), be made from
rents or other income generated before or after
the commencement of the case by or from the
property to each creditor whose claim is
secured by such real estate (other than a claim
secured by a judgment lien or by an unmatured
statutory lien); and
``(ii) are in an amount equal to interest
at the then applicable nondefault contract rate
of interest on the value of the creditor's
interest in the real estate; or''.
SEC. 445. TECHNICAL CORRECTION.
Section 365(b)(2)(D) of title 11, United States Code, is amended by
striking ``penalty rate or provision'' and inserting ``penalty rate or
penalty provision''.
TITLE V--MUNICIPAL BANKRUPTCY PROVISIONS
SEC. 501. PETITION AND PROCEEDINGS RELATED TO PETITION.
(a) Technical Amendment Relating to Municipalities.--Section 921(d)
of title 11, United States Code, is amended by inserting ``,
notwithstanding section 301(b)'' before the period at the end.
(b) Conforming Amendment.--Section 301 of title 11, United States
Code, is amended--
(1) by inserting ``(a)'' before ``A voluntary'';
(2) by striking the last sentence; and
(3) by adding at the end the following:
``(b) The commencement of a voluntary case under a chapter of this
title constitutes an order for relief under such chapter.''.
SEC. 502. APPLICABILITY OF OTHER SECTIONS TO CHAPTER 9.
Section 901(a) of title 11, United States Code, is amended--
(1) by inserting ``555, 556,'' after ``553,''; and
(2) by inserting ``559, 560,'' after ``557,''.
TITLE VI--IMPROVED BANKRUPTCY STATISTICS AND DATA
SEC. 601. AUDIT PROCEDURES.
(a) Amendments.--Section 586 of title 28, United States Code, is
amended--
(1) in subsection (a), by striking paragraph (6) and
inserting the following:
``(6) make such reports as the Attorney General directs,
including the results of audits performed under subsection (f);
and''; and
(2) by adding at the end the following:
``(f)(1)(A) The Attorney General shall establish procedures to
determine the accuracy, veracity, and completeness of petitions,
schedules, and other information which the debtor is required to
provide under sections 521 and 1322 of title 11, and, if applicable,
section 111 of title 11, in individual cases filed under chapter 7 or
13 of such title.
``(B) Those procedures shall--
``(i) establish a method of selecting appropriate qualified
persons to contract to perform those audits;
``(ii) establish a method of randomly selecting cases to be
audited, except that not less than 1 out of every 250 cases in
each Federal judicial district shall be selected for audit;
``(iii) require audits for schedules of income and expenses
which reflect greater than average variances from the
statistical norm of the district in which the schedules were
filed if those variances occur by reason of higher income or
higher expenses than the statistical norm of the district in
which the schedules were filed; and
``(iv) include procedures for providing, not less
frequently than annually, public information concerning the
aggregate results of the audits referred to in this
subparagraph, including the percentage of cases, by district,
in which a material misstatement of income or expenditures is
reported.
``(2) The United States trustee for each district may contract with
auditors to perform audits in cases designated by the United States
trustee according to the procedures established under paragraph (1).
``(3)(A) The report of each audit conducted under this subsection
shall be filed with the court and transmitted to the United States
trustee. Each report shall clearly and conspicuously specify any
material misstatement of income or expenditures or of assets identified
by the person performing the audit. In any case where a material
misstatement of income or expenditures or of assets has been reported,
the clerk of the bankruptcy court shall give notice of the misstatement
to the creditors in the case.
``(B) If a material misstatement of income or expenditures or of
assets is reported, the United States trustee shall--
``(i) report the material misstatement, if appropriate, to
the United States Attorney under section 3057 of title 18; and
``(ii) if advisable, take appropriate action, including
commencing an adversary proceeding to revoke the debtor's
discharge under section 727(d) of title 11.''.
(b) Amendments to Section 521 of Title 11, United States Code.--
Paragraphs (3) and (4) of section 521(a) of title 11, United States
Code, as amended by section 315 of this Act, are each amended by
inserting ``or an auditor appointed under section 586 of title 28''
after ``serving in the case'' each place that term appears.
(c) Amendments to Section 727 of Title 11, United States Code.--
Section 727(d) of title 11, United States Code, is amended--
(1) in paragraph (2), by striking ``or'' at the end;
(2) in paragraph (3), by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following:
``(4) the debtor has failed to explain satisfactorily--
``(A) a material misstatement in an audit performed
under section 586(f) of title 28; or
``(B) a failure to make available for inspection
all necessary accounts, papers, documents, financial
records, files, and any other papers, things, or
property belonging to the debtor that are requested for
an audit conducted under section 586(f).''.
(d) Effective Date.--The amendments made by this section shall take
effect 18 months after the date of enactment of this Act.
SEC. 602. IMPROVED BANKRUPTCY STATISTICS.
(a) Amendment.--Chapter 6 of title 28, United States Code, is
amended by adding at the end the following:
``Sec. 159. Bankruptcy statistics
``(a) The clerk of each district court shall compile statistics
regarding individual debtors with primarily consumer debts seeking
relief under chapters 7, 11, and 13 of title 11. Those statistics shall
be in a form prescribed by the Director of the Administrative Office of
the United States Courts (referred to in this section as the `Office').
``(b) The Director shall--
``(1) compile the statistics referred to in subsection (a);
``(2) make the statistics available to the public; and
``(3) not later than October 31, 1999, and annually
thereafter, prepare, and submit to Congress a report concerning
the information collected under subsection (a) that contains an
analysis of the information.
``(c) The compilation required under subsection (b) shall--
``(1) be itemized, by chapter, with respect to title 11;
``(2) be presented in the aggregate and for each district;
and
``(3) include information concerning--
``(A) the total assets and total liabilities of the
debtors described in subsection (a), and in each
category of assets and liabilities, as reported in the
schedules prescribed under section 2075 and filed by
those debtors;
``(B) the total current monthly income, projected
monthly net income, and average income, and average
expenses of those debtors as reported on the schedules
and statements that each such debtor files under
sections 111, 521, and 1322 of title 11;
``(C) the aggregate amount of debt discharged in
the reporting period, determined as the difference
between the total amount of debt and obligations of a
debtor reported on the schedules and the amount of such
debt reported in categories which are predominantly
nondischargeable;
``(D) the average period of time between the filing
of the petition and the closing of the case;
``(E) for the reporting period--
``(i) the number of cases in which a
reaffirmation was filed; and
``(ii)(I) the total number of
reaffirmations filed;
``(II) of those cases in which a
reaffirmation was filed, the number in which
the debtor was not represented by an attorney;
and
``(III) of the cases under each of
subclauses (I) and (II), the number of cases in
which the reaffirmation was approved by the
court;
``(F) with respect to cases filed under chapter 13
of title 11, for the reporting period--
``(i)(I) the number of cases in which a
final order was entered determining the value
of property securing a claim in an amount less
than the amount of the claim; and
``(II) the number of final orders
determining the value of property securing a
claim issued;
``(ii) the number of cases dismissed for
failure to make payments under the plan; and
``(iii) the number of cases in which the
debtor filed another case during the 6-year
period preceding the date of filing;
``(G) the number of cases in which creditors were
fined for misconduct and any amount of punitive damages
awarded by the court for creditor misconduct; and
``(H) the number of cases in which sanctions under
Rule 9011 of the Federal Rules of Bankruptcy Procedure
were imposed against debtor's counsel and damages
awarded under such rule.''.
(b) Clerical Amendment.--The table of sections for chapter 6 of
title 28, United States Code, is amended by adding at the end the
following:
``159. Bankruptcy statistics.''.
(c) Effective Date.--The amendments made by this section shall take
effect 18 months after the date of enactment of this Act.
SEC. 603. UNIFORM RULES FOR THE COLLECTION OF BANKRUPTCY DATA.
(a) Amendment.--Chapter 39 of title 28, United States Code, is
amended by inserting after section 589a the following:
``Sec. 589b. Bankruptcy data
``(a) Within a reasonable period of time after the effective date
of this section, the Attorney General of the United States shall issue
rules requiring uniform forms for (and from time to time thereafter to
appropriately modify and approve)--
``(1) final reports by trustees in cases under chapters 7,
12, and 13 of title 11; and
``(2) periodic reports by debtors in possession or
trustees, as the case may be, in cases under chapter 11 of
title 11.
``(b) Each report referred to in subsection (a) shall be designed
(and the requirements as to place and manner of filing shall be
established) so as to facilitate compilation of data and maximum
practicable access of the public, by--
``(1) physical inspection at 1 or more central filing
locations; and
``(2) electronic access through the Internet or other
appropriate media.
``(c)(1) The information required to be filed in the reports
referred to in subsection (b) shall be information that is--
``(A) in the best interests of debtors and creditors, and
in the public interest; and
``(B) reasonable and adequate information to evaluate the
efficiency and practicality of the Federal bankruptcy system.
``(2) In issuing rules proposing the forms referred to in
subsection (a), the Attorney General shall strike the best achievable
practical balance between--
``(A) the reasonable needs of the public for information
about the operational results of the Federal bankruptcy system;
and
``(B) economy, simplicity, and lack of undue burden on
persons with a duty to file reports.
``(d)(1) Final reports proposed for adoption by trustees under
chapters 7, 12, and 13 of title 11 shall include with respect to a case
under such title, by appropriate category--
``(A) information about the length of time the case was
pending;
``(B) assets abandoned;
``(C) assets exempted;
``(D) receipts and disbursements of the estate;
``(E) expenses of administration;
``(F) claims asserted;
``(G) claims allowed; and
``(H) distributions to claimants and claims discharged
without payment.
``(2) In cases under chapters 12 and 13 of title 11, final reports
proposed for adoption by trustees shall include--
``(A) the date of confirmation of the plan;
``(B) each modification to the plan; and
``(C) defaults by the debtor in performance under the plan.
``(3) The information described in paragraphs (1) and (2) shall be
in addition to such other matters as are required by law for a final
report or as the Attorney General, in the discretion of the Attorney
General, may propose for a final report.
``(e)(1) Periodic reports proposed for adoption by trustees or
debtors in possession under chapter 11 of title 11 shall include--
``(A) information about the standard industry
classification, published by the Department of Commerce, for
the businesses conducted by the debtor;
``(B) the length of time the case has been pending;
``(C) the number of full-time employees--
``(i) as of the date of the order for relief; and
``(ii) at the end of each reporting period since
the case was filed;
``(D) cash receipts, cash disbursements, and profitability
of the debtor for the most recent period and cumulatively since
the date of the order for relief;
``(E) compliance with title 11, whether or not tax returns
and tax payments since the date of the order for relief have
been timely filed and made;
``(F) all professional fees approved by the court in the
case for the most recent period and cumulatively since the date
of the order for relief (separately reported, for the
professional fees incurred by or on behalf of the debtor,
between those that would have been incurred absent a bankruptcy
case and those that would not have been so incurred); and
``(G) plans of reorganization filed and confirmed and, with
respect thereto, by class, the recoveries of the holders,
expressed in aggregate dollar values and, in the case of
claims, as a percentage of total claims of the class allowed.
``(2) The information described in paragraph (1) shall be in
addition to such other matters as are required by law for a periodic
report or as the Attorney General, in the discretion of the Attorney
General, may propose for a periodic report.''.
(b) Technical Amendment.--The table of sections for chapter 39 of
title 28, United States Code, is amended by adding at the end the
following:
``589b. Bankruptcy data.''.
SEC. 604. SENSE OF CONGRESS REGARDING AVAILABILITY OF BANKRUPTCY DATA.
It is the sense of Congress that--
(1) it should be the national policy of the United States
that all data held by bankruptcy clerks in electronic form, to
the extent such data reflects only public records (as defined
in section 107 of title 11, United States Code), should be
released in a usable electronic form in bulk to the public
subject to such appropriate privacy concerns and safeguards as
the Judicial Conference of the United States may determine; and
(2) there should be established a bankruptcy data system in
which--
(A) a single set of data definitions and forms are
used to collect data nationwide; and
(B) data for any particular bankruptcy case are
aggregated in the same electronic record.
TITLE VII--BANKRUPTCY TAX PROVISIONS
SEC. 701. TREATMENT OF CERTAIN LIENS.
(a) Treatment of Certain Liens.--Section 724 of title 11, United
States Code, is amended--
(1) in subsection (b), in the matter preceding paragraph
(1), by inserting ``(other than to the extent that there is a
properly perfected unavoidable tax lien arising in connection
with an ad valorem tax on real or personal property of the
estate)'' after ``under this title'';
(2) in subsection (b)(2), by inserting ``(except that such
expenses, other than claims for wages, salaries, or commissions
which arise after the filing of a petition, shall be limited to
expenses incurred under chapter 7 of this title and shall not
include expenses incurred under chapter 11 of this title)''
after ``507(a)(1)''; and
(3) by adding at the end the following:
``(e) Before subordinating a tax lien on real or personal property
of the estate, the trustee shall--
``(1) exhaust the unencumbered assets of the estate; and
``(2) in a manner consistent with section 506(c), recover
from property securing an allowed secured claim the reasonable,
necessary costs and expenses of preserving or disposing of that
property.
``(f) Notwithstanding the exclusion of ad valorem tax liens under
this section and subject to the requirements of subsection (e), the
following may be paid from property of the estate which secures a tax
lien, or the proceeds of such property:
``(1) Claims for wages, salaries, and commissions that are
entitled to priority under section 507(a)(4).
``(2) Claims for contributions to an employee benefit plan
entitled to priority under section 507(a)(5).''.
(b) Determination of Tax Liability.--Section 505(a)(2) of title 11,
United States Code, is amended--
(1) in subparagraph (A), by striking ``or'' at the end;
(2) in subparagraph (B), by striking the period at the end
and inserting ``; or''; and
(3) by adding at the end the following:
``(C) the amount or legality of any amount arising in
connection with an ad valorem tax on real or personal property
of the estate, if the applicable period for contesting or
redetermining that amount under any law (other than a
bankruptcy law) has expired.''.
SEC. 702. TREATMENT OF FUEL TAX CLAIMS.
Section 501 of title 11, United States Code, is amended by adding
at the end the following:
``(e) A claim arising from the liability of a debtor for fuel use
tax assessed consistent with the requirements of section 31705 of title
49 may be filed by the base jurisdiction designated pursuant to the
International Fuel Tax Agreement and, if so filed, shall be allowed as
a single claim.''.
SEC. 703. NOTICE OF REQUEST FOR A DETERMINATION OF TAXES.
Section 505(b) of title 11, United States Code, is amended--
(1) in the first sentence, by inserting ``at the address
and in the manner designated in paragraph (1)'' after
``determination of such tax'';
(2) by striking ``(1) upon payment'' and inserting ``(2)(A)
upon payment'';
(3) by striking ``(A) such governmental unit'' and
inserting ``(i) such governmental unit'';
(4) by striking ``(B) such governmental unit'' and
inserting ``(ii) such governmental unit'';
(5) by striking ``(2) upon payment'' and inserting ``(B)
upon payment'';
(6) by striking ``(3) upon payment'' and inserting ``(C)
upon payment'';
(7) by striking ``(b)'' and inserting ``(2)''; and
(8) by inserting before paragraph (2), as so designated,
the following:
``(b)(1)(A) The clerk of each district shall maintain a listing
under which a Federal, State, or local governmental unit responsible
for the collection of taxes within the district may--
``(i) designate an address for service of requests under
this subsection; and
``(ii) describe where further information concerning
additional requirements for filing such requests may be found.
``(B) If a governmental unit referred to in subparagraph (A) does
not designate an address and provide that address to the clerk under
that subparagraph, any request made under this subsection may be served
at the address for the filing of a tax return or protest with the
appropriate taxing authority of that governmental unit.''.
SEC. 704. RATE OF INTEREST ON TAX CLAIMS.
(a) In General.--Subchapter I of chapter 5 of title 11, United
States Code, is amended by adding at the end the following:
``Sec. 511. Rate of interest on tax claims
``(a) If any provision of this title requires the payment of
interest on a tax claim or the payment of interest to enable a creditor
to receive the present value of the allowed amount of a tax claim, the
rate of interest shall be the rate shall be determined under applicable
nonbankruptcy law.
``(b) In the case of taxes paid under a confirmed plan under this
title, the rate of interest shall be determined as of the calendar
month in which the plan is confirmed.''.
(b) Clerical Amendment.--The table of sections for chapter 5 of
title 11, United States Code, is amended by inserting after the item
relating to section 510 the following:
``511. Rate of interest on tax claims.''.
SEC. 705. PRIORITY OF TAX CLAIMS.
Section 507(a)(8) of title 11, United States Code, is amended--
(1) in subparagraph (A)--
(A) in the matter preceding clause (i), by
inserting ``for a taxable year ending on or before the
date of filing of the petition'' after ``gross
receipts'';
(B) in clause (i)--
(i) by striking ``for a taxable year ending
on or before the date of filing of the
petition''; and
(ii) by inserting before the semicolon at
the end, the following: ``, plus any time
during which the stay of proceedings was in
effect in a prior case under this title or
during which collection was precluded by the
existence of 1 or more confirmed plans under
this title, plus 90 days''; and
(C) by striking clause (ii) and inserting the
following:
``(ii) assessed within 240 days before the
date of the filing of the petition, exclusive
of--
``(I) any time during which an
offer in compromise with respect to
that tax was pending or in effect
during that 240-day period, plus 30
days; and
``(II) any time during which a stay
of proceedings against collections was
in effect in a prior case under this
title during that 240-day period; plus
90 days.''; and
(2) by adding at the end the following:
``(H) An otherwise applicable time period specified
in this paragraph shall be suspended for--
``(i) any period during which a
governmental unit is prohibited under
applicable nonbankruptcy law from collecting a
tax as a result of a request by the debtor for
a hearing and an appeal of any collection
action taken or proposed against the debtor;
plus
``(ii) 90 days.''.
SEC. 706. PRIORITY PROPERTY TAXES INCURRED.
Section 507(a)(9)(B) of title 11, United States Code, is amended by
striking ``assessed'' and inserting ``incurred''.
SEC. 707. NO DISCHARGE OF FRAUDULENT TAXES IN CHAPTER 13.
Section 1328(a)(2) of title 11, United States Code, as amended by
sections 105, 213, and 314 of this Act, is amended--
(1) by inserting ``(1)(B), (1)(C),'' after ``paragraph'';
and
(2) by inserting ``and in section 507(a)(8)(C)'' after
``section 523(a)''.
SEC. 708. NO DISCHARGE OF FRAUDULENT TAXES IN CHAPTER 11.
Section 1141(d) of title 11, United States Code, is amended by
adding at the end the following:
``(5) Notwithstanding paragraph (1), the confirmation of a plan
does not discharge a debtor that is a corporation from any debt for a
tax or customs duty with respect to which the debtor--
``(A) made a fraudulent return; or
``(B) willfully attempted in any manner to evade or defeat
that tax or duty.''.
SEC. 709. STAY OF TAX PROCEEDINGS LIMITED TO PREPETITION TAXES.
Section 362(a)(8) of title 11, United States Code, is amended by
inserting ``, with respect to a tax liability for a taxable period
ending before the order for relief under this title'' before the
semicolon at the end.
SEC. 710. PERIODIC PAYMENT OF TAXES IN CHAPTER 11 CASES.
Section 1129(a)(9) of title 11, United States Code, is amended--
(1) in subparagraph (B), by striking ``and'' at the end;
(2) in subparagraph (C), by striking ``deferred cash
payments, over a period not exceeding six years after the date
of assessment of such claim,'' and all that follows through the
end of the subparagraph, and inserting ``regular installment
payments in cash--
``(i) of a total value, as of the effective
date of the plan, equal to the allowed amount
of such claim;
``(ii) with interest thereon calculated at
the rate provided in section 6621(a)(2) of the
Internal Revenue Code of 1986;
``(iii) over a period ending not later than
5 years after the date of the entry of the
order for relief under section 301, 302, or
303; and
``(iv) in a manner not less favorable than
the most favored nonpriority unsecured claim
provided for in the plan (other than cash
payments made to a class of creditors under
section 1122(b)); and''; and
(3) by adding at the end the following:
``(D) with respect to a secured claim which would
otherwise meet the description of an unsecured claim of
a governmental unit under section 507(a)(8), but for
the secured status of that claim, the holder of that
claim will receive on account of that claim, cash
payments, in the same manner and over the same period,
as prescribed in subparagraph (C).''.
SEC. 711. AVOIDANCE OF STATUTORY TAX LIENS PROHIBITED.
Section 545(2) of title 11, United States Code, is amended by
striking the semicolon at the end and inserting ``, except in any case
in which a purchaser is a purchaser described in section 6323 of the
Internal Revenue Code of 1986, or in any other similar provision of
State or local law;''.
SEC. 712. PAYMENT OF TAXES IN THE CONDUCT OF BUSINESS.
(a) Payment of Taxes Required.--Section 960 of title 28, United
States Code, is amended--
(1) by inserting ``(a)'' before ``Any''; and
(2) by adding at the end the following:
``(b) A tax under subsection (a) shall be paid on or before the due
date of the tax under applicable nonbankruptcy law, unless--
``(1) the tax is a property tax secured by a lien against
property that is abandoned within a reasonable period of time
after the lien attaches by the trustee of a bankruptcy estate
under section 554 of title 11; or
``(2) payment of the tax is excused under a specific
provision of title 11.
``(c) In a case pending under chapter 7 of title 11, payment of a
tax may be deferred until final distribution is made under section 726
of title 11, if--
``(1) the tax was not incurred by a trustee duly appointed
under chapter 7 of title 11; or
``(2) before the due date of the tax, an order of the court
makes a finding of probable insufficiency of funds of the
estate to pay in full the administrative expenses allowed under
section 503(b) of title 11 that have the same priority in
distribution under section 726(b) of title 11 as the priority
of that tax.''.
(b) Payment of Ad Valorem Taxes Required.--Section 503(b)(1)(B)(i)
of title 11, United States Code, is amended by inserting ``whether
secured or unsecured, including property taxes for which liability is
in rem, in personam, or both,'' before ``except''.
(c) Request for Payment of Administrative Expense Taxes
Eliminated.--Section 503(b)(1) of title 11, United States Code, is
amended--
(1) in subparagraph (B), by striking ``and'' at the end;
(2) in subparagraph (C), by adding ``and'' at the end; and
(3) by adding at the end the following:
``(D) notwithstanding the requirements of subsection (a), a
governmental unit shall not be required to file a request for
the payment of an expense described in subparagraph (B) or (C),
as a condition of its being an allowed administrative
expense;''.
(d) Payment of Taxes and Fees as Secured Claims.--Section 506 of
title 11, United States Code, is amended--
(1) in subsection (b), by inserting ``or State statute''
after ``agreement''; and
(2) in subsection (c), by inserting ``, including the
payment of all ad valorem property taxes with respect to the
property'' before the period at the end.
SEC. 713. TARDILY FILED PRIORITY TAX CLAIMS.
Section 726(a)(1) of title 11, United States Code, is amended by
striking ``before the date on which the trustee commences distribution
under this section;'' and inserting the following: ``on or before the
earlier of--
``(A) the date that is 10 days after the mailing to
creditors of the summary of the trustee's final report;
or
``(B) the date on which the trustee commences final
distribution under this section;''.
SEC. 714. INCOME TAX RETURNS PREPARED BY TAX AUTHORITIES.
Section 523(a) of title 11, United States Code, is amended--
(1) in paragraph (1)(B)--
(A) in the matter preceding clause (i), by
inserting ``or equivalent report or notice,'' after ``a
return,'';
(B) in clause (i)--
(i) by inserting ``or given'' after
``filed''; and
(ii) by striking ``or'' at the end; and
(C) in clause (ii)--
(i) by inserting ``or given'' after
``filed''; and
(ii) by inserting ``, report, or notice''
after ``return''; and
(2) by adding at the end the following flush sentences:
``For purposes of this subsection, the term `return' means a return
that satisfies the requirements of applicable nonbankruptcy law
(including applicable filing requirements). Such term includes a return
prepared pursuant to section 6020(a) of the Internal Revenue Code of
1986, or similar State or local law, or a written stipulation to a
judgment or a final order entered by a nonbankruptcy tribunal, but does
not include a return made pursuant to section 6020(b) of the Internal
Revenue Code of 1986, or a similar State or local law.''.
SEC. 715. DISCHARGE OF THE ESTATE'S LIABILITY FOR UNPAID TAXES.
The second sentence of section 505(b) of title 11, United States
Code, as amended by section 703 of this Act, is amended by inserting
``the estate,'' after ``misrepresentation,''.
SEC. 716. REQUIREMENT TO FILE TAX RETURNS TO CONFIRM CHAPTER 13 PLANS.
(a) Filing of Prepetition Tax Returns Required for Plan
Confirmation.--Section 1325(a) of title 11, United States Code, as
amended by section 213 of this Act, is amended--
(1) in paragraph (6), by striking ``and'' at the end;
(2) in paragraph (7), by striking the period at the end and
inserting ``; and''; and
(3) by inserting after paragraph (7) the following:
``(8) if the debtor has filed all applicable Federal,
State, and local tax returns as required by section 1308.''.
(b) Additional Time Permitted for Filing Tax Returns.--
(1) In general.--Chapter 13 of title 11, United States
Code, is amended by adding at the end the following:
``Sec. 1308. Filing of prepetition tax returns
``(a) Not later than the day before the date on which the meeting
of the creditors is first scheduled to be held under section 341(a),
the debtor shall file with appropriate tax authorities all tax returns
for all taxable periods ending during the 4-year period ending on the
date of the filing of the petition.
``(b)(1) Subject to paragraph (2), if the tax returns required by
subsection (a) have not been filed by the date on which the meeting of
creditors is first scheduled to be held under section 341(a), the
trustee may hold open that meeting for a reasonable period of time to
allow the debtor an additional period of time to file any unfiled
returns, but such additional period of time shall not extend beyond--
``(A) for any return that is past due as of the date of the
filing of the petition, the date that is 120 days after the
date of that meeting; or
``(B) for any return that is not past due as of the date of
the filing of the petition, the later of--
``(i) the date that is 120 days after the date of
that meeting; or
``(ii) the date on which the return is due under
the last automatic extension of time for filing that
return to which the debtor is entitled, and for which
request is timely made, in accordance with applicable
nonbankruptcy law.
``(2) Upon notice and hearing, and order entered before the tolling
of any applicable filing period determined under this subsection, if
the debtor demonstrates by clear and convincing evidence that the
failure to file a return as required under this subsection is
attributable to circumstances beyond the control of the debtor, the
court may extend the filing period established by the trustee under
this subsection for--
``(A) a period of not more than 30 days for returns
described in paragraph (1); and
``(B) a period not to extend after the applicable extended
due date for a return described in paragraph (2).
``(c) For purposes of this section, the term `return' includes a
return prepared pursuant to section 6020 (a) or (b) of the Internal
Revenue Code of 1986, or a similar State or local law, or a written
stipulation to a judgment or a final order entered by a nonbankruptcy
tribunal.''.
(2) Conforming amendment.--The table of sections for
chapter 13 of title 11, United States Code, is amended by
inserting after the item relating to section 1307 the
following:
``1308. Filing of prepetition tax returns.''.
(c) Dismissal or Conversion on Failure To Comply.--Section 1307 of
title 11, United States Code, is amended--
(1) by redesignating subsections (e) and (f) as subsections
(f) and (g), respectively; and
(2) by inserting after subsection (d), the following:
``(e) Upon the failure of the debtor to file a tax return under
section 1308, on request of a party in interest or the United States
trustee and after notice and a hearing, the court shall dismiss a case
or convert a case under this chapter to a case under chapter 7 of this
title, whichever is in the best interest of the creditors and the
estate.''.
(d) Timely Filed Claims.--Section 502(b)(9) of title 11, United
States Code, is amended by inserting before the period at the end the
following ``, and except that in a case under chapter 13, a claim of a
governmental unit for a tax with respect to a return filed under
section 1308 shall be timely if the claim is filed on or before the
date that is 60 days after the date on which such return was filed as
required''.
(e) Rules for Objections to Claims and to Confirmation.--It is the
sense of Congress that the Advisory Committee on Bankruptcy Rules of
the Judicial Conference should, as soon as practicable after the date
of enactment of this Act, propose for adoption amended Federal Rules of
Bankruptcy Procedure which provide that--
(1) notwithstanding the provisions of Rule 3015(f), in
cases under chapter 13 of title 11, United States Code, an
objection to the confirmation of a plan filed by a governmental
unit on or before the date that is 60 days after the date on
which the debtor files all tax returns required under sections
1308 and 1325(a)(7) of title 11, United States Code, shall be
treated for all purposes as if such objection had been timely
filed before such confirmation; and
(2) in addition to the provisions of Rule 3007, in a case
under chapter 13 of title 11, United States Code, no objection
to a tax with respect to which a return is required to be filed
under section 1308 of title 11, United States Code, shall be
filed until such return has been filed as required.
SEC. 717. STANDARDS FOR TAX DISCLOSURE.
Section 1125(a)(1) of title 11, United States Code, is amended--
(1) by inserting ``including a discussion of the potential
material Federal tax consequences of the plan to the debtor,
any successor to the debtor, and a hypothetical investor
typical of the holders of claims or interests in the case,''
after ``records''; and
(2) by striking ``a hypothetical reasonable investor
typical of holders of claims or interests'' and inserting
``such a hypothetical investor''.
SEC. 718. SETOFF OF TAX REFUNDS.
Section 362(b) of title 11, United States Code, as amended by
section 402 of this Act, is amended--
(1) in paragraph (25), by striking ``or'' at the end;
(2) in paragraph (26), by striking the period at the end
and inserting ``; or''; and
(3) by inserting after paragraph (26) the following:
``(27) under subsection (a), of the setoff under applicable
nonbankruptcy law of an income tax refund, by a governmental
unit, with respect to a taxable period that ended before the
order for relief against an income tax liability for a taxable
period that also ended before the order for relief, except that
in any case in which the setoff of an income tax refund is not
permitted under applicable nonbankruptcy law because of a
pending action to determine the amount or legality of a tax
liability, the governmental unit may hold the refund pending
the resolution of the action, unless the court, upon motion of
the trustee and after notice and hearing, grants the taxing
authority adequate protection (within the meaning of section
361) for the secured claim of that authority in the setoff
under section 506(a).''.
SEC. 719. SPECIAL PROVISIONS RELATED TO THE TREATMENT OF STATE AND
LOCAL TAXES.
(a) In General.--Section 346 of title 11, United States Code, is
amended to read as follows:
``SEC. 346. SPECIAL PROVISIONS RELATED TO THE TREATMENT OF STATE AND
LOCAL TAXES.
``(a) Whenever the Internal Revenue Code of 1986 provides that a
separate taxable estate or entity is created in a case concerning a
debtor under this title, and the income, gain, loss, deductions, and
credits of such estate shall be taxed to or claimed by the estate, a
separate taxable estate is also created for purposes of any State and
local law imposing a tax on or measured by income and such income,
gain, loss, deductions, and credits shall be taxed to or claimed by the
estate and may not be taxed to or claimed by the debtor. The preceding
sentence shall not apply if the case is dismissed. The trustee shall
make tax returns of income required under any such State or local law.
``(b) Whenever the Internal Revenue Code of 1986 provides that no
separate taxable estate shall be created in a case concerning a debtor
under this title, and the income, gain, loss, deductions, and credits
of an estate shall be taxed to or claimed by the debtor, such income,
gain, loss, deductions, and credits shall be taxed to or claimed by the
debtor under a State or local law imposing a tax on or measured by
income and may not be taxed to or claimed by the estate. The trustee
shall make such tax returns of income of corporations and of
partnerships as are required under any State or local law, but with
respect to partnerships, shall make said returns only to the extent
such returns are also required to be made under such Code. The estate
shall be liable for any tax imposed on such corporation or partnership,
but not for any tax imposed on partners or members.
``(c) With respect to a partnership or any entity treated as a
partnership under a State or local law imposing a tax on or measured by
income that is a debtor in a case under this title, any gain or loss
resulting from a distribution of property from such partnership, or any
distributive share of any income, gain, loss, deduction, or credit of a
partner or member that is distributed, or considered distributed, from
such partnership, after the commencement of the case, is gain, loss,
income, deduction, or credit, as the case may be, of the partner or
member, and if such partner or member is a debtor in a case under this
title, shall be subject to tax in accordance with subsection (a) or
(b).
``(d) For purposes of any State or local law imposing a tax on or
measured by income, the taxable period of a debtor in a case under this
title shall terminate only if and to the extent that the taxable period
of such debtor terminates under the Internal Revenue Code of 1986.
``(e) The estate in any case described in subsection (a) shall use
the same accounting method as the debtor used immediately before the
commencement of the case, if such method of accounting complies with
applicable nonbankruptcy tax law.
``(f) For purposes of any State or local law imposing a tax on or
measured by income, a transfer of property from the debtor to the
estate or from the estate to the debtor shall not be treated as a
disposition for purposes of any provision assigning tax consequences to
a disposition, except to the extent that such transfer is treated as a
disposition under the Internal Revenue Code of 1986.
``(g) Whenever a tax is imposed pursuant to a State or local law
imposing a tax on or measured by income pursuant to subsection (a) or
(b), such tax shall be imposed at rates generally applicable to the
same types of entities under such State or local law.
``(h) The trustee shall withhold from any payment of claims for
wages, salaries, commissions, dividends, interest, or other payments,
or collect, any amount required to be withheld or collected under
applicable State or local tax law, and shall pay such withheld or
collected amount to the appropriate governmental unit at the time and
in the manner required by such tax law, and with the same priority as
the claim from which such amount was withheld or collected was paid.
``(i)(1) To the extent that any State or local law imposing a tax
on or measured by income provides for the carryover of any tax
attribute from one taxable period to a subsequent taxable period, the
estate shall succeed to such tax attribute in any case in which such
estate is subject to tax under subsection (a).
``(2) After such a case is closed or dismissed, the debtor shall
succeed to any tax attribute to which the estate succeeded under
paragraph (1) to the extent consistent with the Internal Revenue Code
of 1986.
``(3) The estate may carry back any loss or tax attribute to a
taxable period of the debtor that ended before the order for relief
under this title to the extent that--
``(A) applicable State or local tax law provides for a
carryback in the case of the debtor; and
``(B) the same or a similar tax attribute may be carried
back by the estate to such a taxable period of the debtor under
the Internal Revenue Code of 1986.
``(j)(1) For purposes of any State or local law imposing a tax on
or measured by income, income is not realized by the estate, the
debtor, or a successor to the debtor by reason of discharge of
indebtedness in a case under this title, except to the extent, if any,
that such income is subject to tax under the Internal Revenue Code of
1986.
``(2) Whenever the Internal Revenue Code of 1986 provides that the
amount excluded from gross income in respect of the discharge of
indebtedness in a case under this title shall be applied to reduce the
tax attributes of the debtor or the estate, a similar reduction shall
be made under any State or local law imposing a tax on or measured by
income to the extent such State or local law recognizes such
attributes. Such State or local law may also provide for the reduction
of other attributes to the extent that the full amount of income from
the discharge of indebtedness has not been applied.
``(k)(1) Except as provided in this section and section 505, the
time and manner of filing tax returns and the items of income, gain,
loss, deduction, and credit of any taxpayer shall be determined under
applicable nonbankruptcy law.
``(2) For Federal tax purposes, the provisions of this section are
subject to the Internal Revenue Code of 1986 and other applicable
Federal nonbankruptcy law.''.
(b) Conforming Amendments.--
(1) Section 728 of title 11, United States Code, is
repealed.
(2) Section 1146 of title 11, United States Code, is
amended by striking subsections (a) and (b) and by
redesignating subsections (c) and (d) as subsections (a) and
(b), respectively.
(3) Section 1231 of title 11, United States Code, is
amended by striking subsections (a) and (b) and by
redesignating subsections (c) and (d) as subsections (a) and
(b), respectively.
SEC. 720. DISMISSAL FOR FAILURE TO TIMELY FILE TAX RETURNS.
Section 521 of title 11, United States Code, as amended by this
Act, is amended by adding at the end the following:
``(k)(1) Notwithstanding any other provision of this title, if the
debtor fails to file a tax return that becomes due after the
commencement of the case or to properly obtain an extension of the due
date for filing such return, the taxing authority may request that the
court enter an order converting or dismissing the case.
``(2) If the debtor does not file the required return or obtain the
extension referred to in paragraph (1) within 90 days after a request
is filed by the taxing authority under that paragraph, the court shall
convert or dismiss the case, whichever is in the best interests of
creditors and the estate.''.
TITLE VIII--ANCILLARY AND OTHER CROSS-BORDER CASES
SEC. 801. AMENDMENT TO ADD CHAPTER 15 TO TITLE 11, UNITED STATES CODE.
(a) In General.--Title 11, United States Code, is amended by
inserting after chapter 13 the following:
``CHAPTER 15--ANCILLARY AND OTHER CROSS-BORDER CASES
``Sec.
``1501. Purpose and scope of application.
``SUBCHAPTER I--GENERAL PROVISIONS
``1502. Definitions.
``1503. International obligations of the United States.
``1504. Commencement of ancillary case.
``1505. Authorization to act in a foreign country.
``1506. Public policy exception.
``1507. Additional assistance.
``1508. Interpretation.
``SUBCHAPTER II--ACCESS OF FOREIGN REPRESENTATIVES AND CREDITORS TO THE
COURT
``1509. Right of direct access.
``1510. Limited jurisdiction.
``1511. Commencement of case under section 301 or 303.
``1512. Participation of a foreign representative in a case under this
title.
``1513. Access of foreign creditors to a case under this title.
``1514. Notification to foreign creditors concerning a case under this
title.
``SUBCHAPTER III--RECOGNITION OF A FOREIGN PROCEEDING AND RELIEF
``1515. Application for recognition of a foreign proceeding.
``1516. Presumptions concerning recognition.
``1517. Order recognizing a foreign proceeding.
``1518. Subsequent information.
``1519. Relief that may be granted upon petition for recognition of a
foreign proceeding.
``1520. Effects of recognition of a foreign main proceeding.
``1521. Relief that may be granted upon recognition of a foreign
proceeding.
``1522. Protection of creditors and other interested persons.
``1523. Actions to avoid acts detrimental to creditors.
``1524. Intervention by a foreign representative.
``SUBCHAPTER IV--COOPERATION WITH FOREIGN COURTS AND FOREIGN
REPRESENTATIVES
``1525. Cooperation and direct communication between the court and
foreign courts or foreign representatives.
``1526. Cooperation and direct communication between the trustee and
foreign courts or foreign representatives.
``1527. Forms of cooperation.
``SUBCHAPTER V--CONCURRENT PROCEEDINGS
``1528. Commencement of a case under this title after recognition of a
foreign main proceeding.
``1529. Coordination of a case under this title and a foreign
proceeding.
``1530. Coordination of more than 1 foreign proceeding.
``1531. Presumption of insolvency based on recognition of a foreign
main proceeding.
``1532. Rule of payment in concurrent proceedings.
``Sec. 1501. Purpose and scope of application
``(a) The purpose of this chapter is to incorporate the Model Law
on Cross-Border Insolvency so as to provide effective mechanisms for
dealing with cases of cross-border insolvency with the objectives of--
``(1) cooperation between--
``(A) United States courts, United States Trustees,
trustees, examiners, debtors, and debtors in
possession; and
``(B) the courts and other competent authorities of
foreign countries involved in cross-border insolvency
cases;
``(2) greater legal certainty for trade and investment;
``(3) fair and efficient administration of cross-border
insolvencies that protects the interests of all creditors, and
other interested entities, including the debtor;
``(4) protection and maximization of the value of the
debtor's assets; and
``(5) facilitation of the rescue of financially troubled
businesses, thereby protecting investment and preserving
employment.
``(b) This chapter applies if--
``(1) assistance is sought in the United States by a
foreign court or a foreign representative in connection with a
foreign proceeding;
``(2) assistance is sought in a foreign country in
connection with a case under this title;
``(3) a foreign proceeding and a case under this title with
respect to the same debtor are taking place concurrently; or
``(4) creditors or other interested persons in a foreign
country have an interest in requesting the commencement of, or
participating in, a case or proceeding under this title.
``(c) This chapter does not apply to--
``(1) a proceeding concerning an entity identified by
exclusion in subsection 109(b);
``(2) an individual, or to an individual and such
individual's spouse, who have debts within the limits specified
in section 109(e) and who are citizens of the United States or
aliens lawfully admitted for permanent residence in the United
States; or
``(3) an entity subject to a proceeding under the
Securities Investor Protection Act of 1970 (84 Stat. 1636 et
seq.), a stockbroker subject to subchapter III of chapter 7 of
this title, or a commodity broker subject to subchapter IV of
chapter 7 of this title.
``SUBCHAPTER I--GENERAL PROVISIONS
``Sec. 1502. Definitions
``For the purposes of this chapter, the term--
``(1) `debtor' means an entity that is the subject of a
foreign proceeding;
``(2) `establishment' means any place of operations where
the debtor carries out a nontransitory economic activity;
``(3) `foreign court' means a judicial or other authority
competent to control or supervise a foreign proceeding;
``(4) `foreign main proceeding' means a foreign proceeding
taking place in the country where the debtor has the center of
its main interests;
``(5) `foreign nonmain proceeding' means a foreign
proceeding, other than a foreign main proceeding, taking place
in a country where the debtor has an establishment;
``(6) `trustee' includes a trustee, a debtor in possession
in a case under any chapter of this title, or a debtor under
chapter 9 of this title; and
``(7) `within the territorial jurisdiction of the United
States' when used with reference to property of a debtor refers
to tangible property located within the territory of the United
States and intangible property deemed under applicable
nonbankruptcy law to be located within that territory,
including any property subject to attachment or garnishment
that may properly be seized or garnished by an action in a
Federal or State court in the United States.
``Sec. 1503. International obligations of the United States
``To the extent that this chapter conflicts with an obligation of
the United States arising out of any treaty or other form of agreement
to which it is a party with 1 or more other countries, the requirements
of the treaty or agreement prevail.
``Sec. 1504. Commencement of ancillary case
``A case under this chapter is commenced by the filing of a
petition for recognition of a foreign proceeding under section 1515.
``Sec. 1505. Authorization to act in a foreign country
``A trustee or another entity, including an examiner, may be
authorized by the court to act in a foreign country on behalf of an
estate created under section 541. An entity authorized to act under
this section may act in any way permitted by the applicable foreign
law.
``Sec. 1506. Public policy exception
``Nothing in this chapter prevents the court from refusing to take
an action governed by this chapter if the action would be manifestly
contrary to the public policy of the United States.
``Sec. 1507. Additional assistance
``(a) Subject to the specific limitations under other provisions of
this chapter, the court, upon recognition of a foreign proceeding, may
provide additional assistance to a foreign representative under this
title or under other laws of the United States.
``(b) In determining whether to provide additional assistance under
this title or under other laws of the United States, the court shall
consider whether such additional assistance, consistent with the
principles of comity, will reasonably assure--
``(1) just treatment of all holders of claims against or
interests in the debtor's property;
``(2) protection of claim holders in the United States
against prejudice and inconvenience in the processing of claims
in such foreign proceeding;
``(3) prevention of preferential or fraudulent dispositions
of property of the debtor;
``(4) distribution of proceeds of the debtor's property
substantially in accordance with the order prescribed by this
title; and
``(5) if appropriate, the provision of an opportunity for a
fresh start for the individual that such foreign proceeding
concerns.
``Sec. 1508. Interpretation
``In interpreting this chapter, the court shall consider its
international origin, and the need to promote an application of this
chapter that is consistent with the application of similar statutes
adopted by foreign jurisdictions.
``SUBCHAPTER II--ACCESS OF FOREIGN REPRESENTATIVES AND CREDITORS TO THE
COURT
``Sec. 1509. Right of direct access
``(a) A foreign representative is entitled to commence a case under
section 1504 by filing a petition for recognition under section 1515,
and upon recognition, to apply directly to other Federal and State
courts for appropriate relief in those courts.
``(b) Upon recognition, and subject to section 1510, a foreign
representative shall have the capacity to sue and be sued, and shall be
subject to the laws of the United States of general applicability.
``(c) Subject to section 1510, a foreign representative is subject
to laws of general application.
``(d) Recognition under this chapter is prerequisite to the
granting of comity or cooperation to a foreign representative in any
Federal or State court in the United States. Any request for comity or
cooperation by a foreign representative in any court shall be
accompanied by a sworn statement setting forth whether recognition
under section 1515 has been sought and the status of any such petition.
``(e) Upon denial of recognition under this chapter, the court may
issue appropriate orders necessary to prevent an attempt to obtain
comity or cooperation from courts in the United States without such
recognition.
``Sec. 1510. Limited jurisdiction
``The sole fact that a foreign representative files a petition
under section 1515 does not subject the foreign representative to the
jurisdiction of any court in the United States for any other purpose.
``Sec. 1511. Commencement of case under section 301 or 303
``(a) Upon recognition, a foreign representative may commence--
``(1) an involuntary case under section 303; or
``(2) a voluntary case under section 301 or 302, if the
foreign proceeding is a foreign main proceeding.
``(b) The petition commencing a case under subsection (a) must be
accompanied by a statement describing the petition for recognition and
its current status. The court where the petition for recognition has
been filed must be advised of the foreign representative's intent to
commence a case under subsection (a) prior to such commencement.
``Sec. 1512. Participation of a foreign representative in a case under
this title
``Upon recognition of a foreign proceeding, the foreign
representative in that proceeding is entitled to participate as a party
in interest in a case regarding the debtor under this title.
``Sec. 1513. Access of foreign creditors to a case under this title
``(a) Foreign creditors have the same rights regarding the
commencement of, and participation in, a case under this title as
domestic creditors.
``(b)(1) Subsection (a) does not change or codify law in effect on
the date of enactment of this chapter as to the priority of claims
under section 507 or 726, except that the claim of a foreign creditor
under section 507 or 726 shall not be given a lower priority than that
of general unsecured claims without priority solely because the holder
of such claim is a foreign creditor.
``(2)(A) Subsection (a) and paragraph (1) do not change or codify
law in effect on the date of enactment of this chapter as to the
allowability of foreign revenue claims or other foreign public law
claims in a proceeding under this title.
``(B) Allowance and priority as to a foreign tax claim or other
foreign public law claim shall be governed by any applicable tax treaty
of the United States, under the conditions and circumstances specified
therein.
``Sec. 1514. Notification to foreign creditors concerning a case under
this title
``(a) Whenever in a case under this title notice is to be given to
creditors generally or to any class or category of creditors, such
notice shall also be given to the known creditors generally, or to
creditors in the notified class or category, that do not have addresses
in the United States. The court may order that appropriate steps be
taken with a view to notifying any creditor whose address is not yet
known.
``(b) Such notification to creditors with foreign addresses
described in subsection (a) shall be given individually, unless the
court considers that, under the circumstances, some other form of
notification would be more appropriate. No letters rogatory or other
similar formality is required.
``(c) When a notification of commencement of a case is to be given
to foreign creditors, the notification shall--
``(1) indicate the time period for filing proofs of claim
and specify the place for their filing;
``(2) indicate whether secured creditors need to file their
proofs of claim; and
``(3) contain any other information required to be included
in such a notification to creditors pursuant to this title and
the orders of the court.
``(d) Any rule of procedure or order of the court as to notice or
the filing of a claim shall provide such additional time to creditors
with foreign addresses as is reasonable under the circumstances.
``SUBCHAPTER III--RECOGNITION OF A FOREIGN PROCEEDING AND RELIEF
``Sec. 1515. Application for recognition of a foreign proceeding
``(a) A foreign representative applies to the court for recognition
of the foreign proceeding in which the foreign representative has been
appointed by filing a petition for recognition.
``(b) A petition for recognition shall be accompanied by--
``(1) a certified copy of the decision commencing the
foreign proceeding and appointing the foreign representative;
``(2) a certificate from the foreign court affirming the
existence of the foreign proceeding and of the appointment of
the foreign representative; or
``(3) in the absence of evidence referred to in paragraphs
(1) and (2), any other evidence acceptable to the court of the
existence of the foreign proceeding and of the appointment of
the foreign representative.
``(c) A petition for recognition shall also be accompanied by a
statement identifying all foreign proceedings with respect to the
debtor that are known to the foreign representative.
``(d) The documents referred to in paragraphs (1) and (2) of
subsection (b) must be translated into English. The court may require a
translation into English of additional documents.
``Sec. 1516. Presumptions concerning recognition
``(a) If the decision or certificate referred to in section 1515(b)
indicates that the foreign proceeding is a foreign proceeding as
defined in section 101 and that the person or body is a foreign
representative as defined in section 101, the court is entitled to so
presume.
``(b) The court is entitled to presume that documents submitted in
support of the petition for recognition are authentic, whether or not
they have been legalized.
``(c) In the absence of evidence to the contrary, the debtor's
registered office, or habitual residence in the case of an individual,
is presumed to be the center of the debtor's main interests.
``Sec. 1517. Order recognizing a foreign proceeding
``(a) Subject to section 1506, after notice and a hearing an order
recognizing a foreign proceeding shall be entered if--
``(1) the foreign proceeding is a foreign main proceeding
or foreign nonmain proceeding within the meaning of section
1502;
``(2) the foreign representative applying for recognition
is a person or body as defined in section 101; and
``(3) the petition meets the requirements of section 1515.
``(b) The foreign proceeding shall be recognized--
``(1) as a foreign main proceeding if it is taking place in
the country where the debtor has the center of its main
interests; or
``(2) as a foreign nonmain proceeding if the debtor has an
establishment within the meaning of section 1502 in the foreign
country where the proceeding is pending.
``(c) A petition for recognition of a foreign proceeding shall be
decided upon at the earliest possible time. Entry of an order
recognizing a foreign proceeding shall constitute recognition under
this chapter.
``(d) The provisions of this subchapter do not prevent modification
or termination of recognition if it is shown that the grounds for
granting it were fully or partially lacking or have ceased to exist,
but in considering such action the court shall give due weight to
possible prejudice to parties that have relied upon the granting of
recognition. The case under this chapter may be closed in the manner
prescribed for a case under section 350.
``Sec. 1518. Subsequent information
``After the petition for recognition of the foreign proceeding is
filed, the foreign representative shall file with the court promptly a
notice of change of status concerning--
``(1) any substantial change in the status of the foreign
proceeding or the status of the foreign representative's
appointment; and
``(2) any other foreign proceeding regarding the debtor
that becomes known to the foreign representative.
``Sec. 1519. Relief that may be granted upon petition for recognition
of a foreign proceeding
``(a) Beginning on the date on which a petition for recognition is
filed and ending on the date on which the petition is decided upon, the
court may, at the request of the foreign representative, where relief
is urgently needed to protect the assets of the debtor or the interests
of the creditors, grant relief of a provisional nature, including--
``(1) staying execution against the debtor's assets;
``(2) entrusting the administration or realization of all
or part of the debtor's assets located in the United States to
the foreign representative or another person authorized by the
court, including an examiner, in order to protect and preserve
the value of assets that, by their nature or because of other
circumstances, are perishable, susceptible to devaluation, or
otherwise in jeopardy; and
``(3) any relief referred to in paragraph (3), (4), or (7)
of section 1521(a).
``(b) Unless extended under section 1521(a)(6), the relief granted
under this section terminates when the petition for recognition is
decided upon.
``(c) It is a ground for denial of relief under this section that
such relief would interfere with the administration of a foreign main
proceeding.
``(d) The court may not enjoin a police or regulatory act of a
governmental unit, including a criminal action or proceeding, under
this section.
``(e) The standards, procedures, and limitations applicable to an
injunction shall apply to relief under this section.
``Sec. 1520. Effects of recognition of a foreign main proceeding
``(a) Upon recognition of a foreign proceeding that is a foreign
main proceeding--
``(1) section 362 applies with respect to the debtor and
that property of the debtor that is within the territorial
jurisdiction of the United States;
``(2) a transfer, an encumbrance, or any other disposition
of an interest of the debtor in property within the territorial
jurisdiction of the United States is restrained as and to the
extent that is provided for property of an estate under
sections 363, 549, and 552; and
``(3) unless the court orders otherwise, the foreign
representative may operate the debtor's business and may
exercise the powers of a trustee under section 549, subject to
sections 363 and 552.
``(b) The scope, and the modification or termination, of the stay
and restraints referred to in subsection (a) are subject to the
exceptions and limitations provided in subsections (b), (c), and (d) of
section 362, subsections (b) and (c) of section 363, and sections 552,
555 through 557, 559, and 560.
``(c) Subsection (a) does not affect the right to commence
individual actions or proceedings in a foreign country to the extent
necessary to preserve a claim against the debtor.
``(d) Subsection (a) does not affect the right of a foreign
representative or an entity to file a petition commencing a case under
this title or the right of any party to file claims or take other
proper actions in such a case.
``Sec. 1521. Relief that may be granted upon recognition of a foreign
proceeding
``(a) Upon recognition of a foreign proceeding, whether main or
nonmain, where necessary to effectuate the purpose of this chapter and
to protect the assets of the debtor or the interests of the creditors,
the court may, at the request of the foreign representative, grant any
appropriate relief, including--
``(1) staying the commencement or continuation of
individual actions or individual proceedings concerning the
debtor's assets, rights, obligations or liabilities to the
extent the actions or proceedings have not been stayed under
section 1520(a);
``(2) staying execution against the debtor's assets to the
extent the execution has not been stayed under section 1520(a);
``(3) suspending the right to transfer, encumber or
otherwise dispose of any assets of the debtor to the extent
that right has not been suspended under section 1520(a);
``(4) providing for the examination of witnesses, the
taking of evidence or the delivery of information concerning
the debtor's assets, affairs, rights, obligations or
liabilities;
``(5) entrusting the administration or realization of all
or part of the debtor's assets within the territorial
jurisdiction of the United States to the foreign representative
or another person, including an examiner, authorized by the
court;
``(6) extending relief granted under section 1519(a); and
``(7) granting any additional relief that may be available
to a trustee, except for relief available under sections 522,
544, 545, 547, 548, 550, and 724(a).
``(b) Upon recognition of a foreign proceeding, whether main or
nonmain, the court may, at the request of the foreign representative,
entrust the distribution of all or part of the debtor's assets located
in the United States to the foreign representative or another person,
including an examiner, authorized by the court, if the court is
satisfied that the interests of creditors in the United States are
sufficiently protected.
``(c) In granting relief under this section to a representative of
a foreign nonmain proceeding, the court must be satisfied that the
relief relates to assets that, under the law of the United States,
should be administered in the foreign nonmain proceeding or concerns
information required in that proceeding.
``(d) The court may not enjoin a police or regulatory act of a
governmental unit, including a criminal action or proceeding, under
this section.
``(e) The standards, procedures, and limitations applicable to an
injunction shall apply to relief under paragraphs (1), (2), (3), and
(6) of subsection (a).
``Sec. 1522. Protection of creditors and other interested persons
``(a) The court may grant relief under section 1519 or 1521, or may
modify or terminate relief under subsection (c), only if the interests
of the creditors and other interested entities, including the debtor,
are sufficiently protected.
``(b) The court may subject relief granted under section 1519 or
1521, or the operation of the debtor's business under section
1520(a)(2), to conditions that the court considers to be appropriate,
including the giving of security or the filing of a bond.
``(c) The court may, at the request of the foreign representative
or an entity affected by relief granted under section 1519 or 1521, or
at its own motion, modify or terminate the relief referred to in
subsection (b).
``(d) Section 1104(d) shall apply to the appointment of an examiner
under this chapter. Any examiner shall comply with the qualification
requirements imposed on a trustee by section 322.
``Sec. 1523. Actions to avoid acts detrimental to creditors
``(a) Upon recognition of a foreign proceeding, the foreign
representative has standing in a case concerning the debtor pending
under another chapter of this title to initiate actions under sections
522, 544, 545, 547, 548, 550, and 724(a).
``(b) In any case in which the foreign proceeding is a foreign
nonmain proceeding, the court must be satisfied that an action under
subsection (a) relates to assets that, under United States law, should
be administered in the foreign nonmain proceeding.
``Sec. 1524. Intervention by a foreign representative
``Upon recognition of a foreign proceeding, the foreign
representative may intervene in any proceedings in a State or Federal
court in the United States in which the debtor is a party.
``SUBCHAPTER IV--COOPERATION WITH FOREIGN COURTS AND FOREIGN
REPRESENTATIVES
``Sec. 1525. Cooperation and direct communication between the court and
foreign courts or foreign representatives
``(a) Consistent with section 1501, the court shall cooperate to
the maximum extent possible with foreign courts or foreign
representatives, either directly or through the trustee.
``(b) The court is entitled to communicate directly with, or to
request information or assistance directly from, foreign courts or
foreign representatives, subject to the rights of parties in interest
to notice and participation.
``Sec. 1526. Cooperation and direct communication between the trustee
and foreign courts or foreign representatives
``(a) Consistent with section 1501, the trustee or other person,
including an examiner, authorized by the court, shall, subject to the
supervision of the court, cooperate to the maximum extent possible with
foreign courts or foreign representatives.
``(b) The trustee or other person, including an examiner,
authorized by the court is entitled, subject to the supervision of the
court, to communicate directly with foreign courts or foreign
representatives.
``Sec. 1527. Forms of cooperation
``Cooperation referred to in sections 1525 and 1526 may be
implemented by any appropriate means, including--
``(1) appointment of a person or body, including an
examiner, to act at the direction of the court;
``(2) communication of information by any means considered
appropriate by the court;
``(3) coordination of the administration and supervision of
the debtor's assets and affairs;
``(4) approval or implementation of agreements concerning
the coordination of proceedings; and
``(5) coordination of concurrent proceedings regarding the
same debtor.
``SUBCHAPTER V--CONCURRENT PROCEEDINGS
``Sec. 1528. Commencement of a case under this title after recognition
of a foreign main proceeding
``After recognition of a foreign main proceeding, a case under
another chapter of this title may be commenced only if the debtor has
assets in the United States. The effects of such case shall be
restricted to the assets of the debtor that are within the territorial
jurisdiction of the United States and, to the extent necessary to
implement cooperation and coordination under sections 1525, 1526, and
1527, to other assets of the debtor that are within the jurisdiction of
the court under sections 541(a), and 1334(e) of title 28, to the extent
that such other assets are not subject to the jurisdiction and control
of a foreign proceeding that has been recognized under this chapter.
``Sec. 1529. Coordination of a case under this title and a foreign
proceeding
``In any case in which a foreign proceeding and a case under
another chapter of this title are taking place concurrently regarding
the same debtor, the court shall seek cooperation and coordination
under sections 1525, 1526, and 1527, and the following shall apply:
``(1) If the case in the United States is taking place at
the time the petition for recognition of the foreign proceeding
is filed--
``(A) any relief granted under sections 1519 or
1521 must be consistent with the relief granted in the
case in the United States; and
``(B) even if the foreign proceeding is recognized
as a foreign main proceeding, section 1520 does not
apply.
``(2) If a case in the United States under this title
commences after recognition, or after the filing of the
petition for recognition, of the foreign proceeding--
``(A) any relief in effect under sections 1519 or
1521 shall be reviewed by the court and shall be
modified or terminated if inconsistent with the case in
the United States; and
``(B) if the foreign proceeding is a foreign main
proceeding, the stay and suspension referred to in
section 1520(a) shall be modified or terminated if
inconsistent with the relief granted in the case in the
United States.
``(3) In granting, extending, or modifying relief granted
to a representative of a foreign nonmain proceeding, the court
must be satisfied that the relief relates to assets that, under
the law of the United States, should be administered in the
foreign nonmain proceeding or concerns information required in
that proceeding.
``(4) In achieving cooperation and coordination under
sections 1528 and 1529, the court may grant any of the relief
authorized under section 305.
``Sec. 1530. Coordination of more than 1 foreign proceeding
``In matters referred to in section 1501, with respect to more than
1 foreign proceeding regarding the debtor, the court shall seek
cooperation and coordination under sections 1525, 1526, and 1527, and
the following shall apply:
``(1) Any relief granted under section 1519 or 1521 to a
representative of a foreign nonmain proceeding after
recognition of a foreign main proceeding must be consistent
with the foreign main proceeding.
``(2) If a foreign main proceeding is recognized after
recognition, or after the filing of a petition for recognition,
of a foreign nonmain proceeding, any relief in effect under
section 1519 or 1521 shall be reviewed by the court and shall
be modified or terminated if inconsistent with the foreign main
proceeding.
``(3) If, after recognition of a foreign nonmain
proceeding, another foreign nonmain proceeding is recognized,
the court shall grant, modify, or terminate relief for the
purpose of facilitating coordination of the proceedings.
``Sec. 1531. Presumption of insolvency based on recognition of a
foreign main proceeding
``In the absence of evidence to the contrary, recognition of a
foreign main proceeding is for the purpose of commencing a proceeding
under section 303, proof that the debtor is generally not paying its
debts as such debts become due.
``Sec. 1532. Rule of payment in concurrent proceedings
``Without prejudice to secured claims or rights in rem, a creditor
who has received payment with respect to its claim in a foreign
proceeding pursuant to a law relating to insolvency may not receive a
payment for the same claim in a case under any other chapter of this
title regarding the debtor, so long as the payment to other creditors
of the same class is proportionately less than the payment the creditor
has already received.''.
(b) Clerical Amendment.--The table of chapters for title 11, United
States Code, is amended by inserting after the item relating to chapter
13 the following:
``15. Ancillary and Other Cross-Border Cases................ 1501''.
SEC. 802. AMENDMENTS TO OTHER CHAPTERS IN TITLE 11, UNITED STATES CODE.
(a) Applicability of Chapters.--Section 103 of title 11, United
States Code, is amended--
(1) in subsection (a), by inserting before the period the
following: ``, and this chapter, sections 307, 304, 555 through
557, 559, and 560 apply in a case under chapter 15''; and
(2) by adding at the end the following:
``(j) Chapter 15 applies only in a case under such chapter, except
that--
``(1) sections 1513 and 1514 apply in all cases under this
title; and
``(2) section 1505 applies to trustees and to any other
entity (including an examiner) authorized by the court under
chapter 7, 11, or 12, to debtors in possession under chapter 11
or 12, and to debtors under chapter 9 who are authorized to act
under section 1505.''.
(b) Definitions.--Paragraphs (23) and (24) of section 101 of title
11, United States Code, are amended to read as follows:
``(23) `foreign proceeding' means a collective judicial or
administrative proceeding in a foreign country, including an
interim proceeding, pursuant to a law relating to insolvency in
which proceeding the assets and affairs of the debtor are
subject to control or supervision by a foreign court, for the
purpose of reorganization or liquidation;
``(24) `foreign representative' means a person or body,
including a person or body appointed on an interim basis,
authorized in a foreign proceeding to administer the
reorganization or the liquidation of the debtor's assets or
affairs or to act as a representative of the foreign
proceeding;''.
(c) Amendments to Title 28, United States Code.--
(1) Procedures.--Section 157(b)(2) of title 28, United
States Code, is amended--
(A) in subparagraph (N), by striking ``and'' at the
end;
(B) in subparagraph (O), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(P) recognition of foreign proceedings and other matters
under chapter 15 of title 11.''.
(2) Bankruptcy cases and proceedings.--Section 1334(c)(1)
of title 28, United States Code, is amended by striking
``Nothing in'' and inserting ``Except with respect to a case
under chapter 15 of title 11, nothing in''.
(3) Duties of trustees.--Section 586(a)(3) of title 28,
United States Code, is amended by inserting ``15,'' after
``chapter''.
SEC. 803. CLAIMS RELATING TO INSURANCE DEPOSITS IN CASES ANCILLARY TO
FOREIGN PROCEEDINGS.
Section 304 of title 11, United States Code, is amended to read as
follows:
``Sec. 304. Cases ancillary to foreign proceedings
``(a) For purposes of this section--
``(1) the term `domestic insurance company' means a
domestic insurance company, as such term is used in section
109(b)(2);
``(2) the term `foreign insurance company' means a foreign
insurance company, as such term is used in section 109(b)(3);
``(3) the term `United States claimant' means a beneficiary
of any deposit referred to in subsection (b) or any
multibeneficiary trust referred to in subsection (b);
``(4) the term `United States creditor' means, with respect
to a foreign insurance company--
``(i) a United States claimant; or
``(ii) any business entity that operates in the
United States and that is a creditor; and
``(5) the term `United States policyholder' means a holder
of an insurance policy issued in the United States.
``(b) The court may not grant relief under chapter 15 of this title
with respect to any deposit, escrow, trust fund, or other security
required or permitted under any applicable State insurance law or
regulation for the benefit of claim holders in the United States.''.
TITLE IX--FINANCIAL CONTRACT PROVISIONS
SEC. 901. BANKRUPTCY CODE AMENDMENTS.
(a) Definitions of Forward Contract, Repurchase Agreement,
Securities Clearing Agency, Swap Agreement, Commodity Contract, and
Securities Contract.--Title 11, United States Code, is amended--
(1) in section 101--
(A) in paragraph (25)--
(i) by striking ``means a contract'' and
inserting ``means--
``(A) a contract'';
(ii) by striking ``, or any combination
thereof or option thereon;'' and inserting ``,
or any other similar agreement;''; and
(iii) by adding at the end the following:
``(B) a combination of agreements or transactions
referred to in subparagraphs (A) and (C);
``(C) an option to enter into an agreement or
transaction referred to in subparagraph (A) or (B);
``(D) a master netting agreement that provides for
an agreement or transaction referred to in subparagraph
(A), (B), or (C), together with all supplements to such
master netting agreement, without regard to whether
such master netting agreement provides for an agreement
or transaction that is not a forward contract under
this paragraph, except that such master netting
agreement shall be considered to be a forward contract
under this paragraph only with respect to each
agreement or transaction under such master netting
agreement that is referred to in subparagraph (A), (B)
or (C); or
``(E) a security agreement or arrangement, or other
credit enhancement, directly pertaining to a contract,
option, agreement, or transaction referred to in
subparagraph (A), (B), (C), or (D), but not to exceed
the actual value of such contract, option, agreement,
or transaction on the date of the filing of the
petition;'';
(B) by striking paragraph (47) and inserting the
following:
``(47) `repurchase agreement' and `reverse repurchase
agreement'--
``(A) mean--
``(i) an agreement, including related
terms, which provides for the transfer of--
``(I) a certificate of deposit,
mortgage related security (as defined
in section 3 of the Securities Exchange
Act of 1934), mortgage loan, interest
in a mortgage related security or
mortgage loan, eligible bankers'
acceptance, or qualified foreign
government security (defined for
purposes of this paragraph to mean a
security that is a direct obligation
of, or that is fully guaranteed by, the
central government of a member of the
Organization for Economic Cooperation
and Development); or
``(II) a security that is a direct
obligation of, or that is fully
guaranteed by, the United States or an
agency of the United States against the
transfer of funds by the transferee of
such certificate of deposit, eligible
bankers' acceptance, security, loan, or
interest;
with a simultaneous agreement by such
transferee to transfer to the transferor
thereof a certificate of deposit, eligible
bankers' acceptance, security, loan, or
interest of the kind described in subclause (I)
or (II), at a date certain that is not later
than 1 year after the date of the transferor's
transfer or on demand, against the transfer of
funds;
``(ii) a combination of agreements or
transactions referred to in clauses (i) and
(iii);
``(iii) an option to enter into an
agreement or transaction referred to in clause
(i) or (ii); or
``(iv) a master netting agreement that
provides for an agreement or transaction
referred to in clause (i), (ii), or (iii),
together with all supplements to such master
netting agreement, without regard to whether
such master netting agreement provides for an
agreement or transaction that is not a
repurchase agreement under this subparagraph,
except that such master netting agreement shall
be considered to be a repurchase agreement
under this subparagraph only with respect to
each agreement or transaction under such master
netting agreement that is referred to in clause
(i), (ii), or (iii); or
``(v) a security agreement or arrangement,
or other credit enhancement, directly
pertaining to a contract referred to in clause
(i), (ii), (iii), or (iv), but not to exceed
the actual value of such contract on the date
of the filing of the petition; and
``(B) do not include a repurchase obligation under
a participation in a commercial mortgage loan;'';
(C) in paragraph (48) by inserting ``, or exempt
from such registration under such section pursuant to
an order of the Securities and Exchange Commission''
after ``1934''; and
(D) by striking paragraph (53B) and inserting the
following:
``(53B) `swap agreement'--
``(A) means--
``(i) an agreement, including the terms and
conditions incorporated by reference in such
agreement, that is--
``(I) an interest rate swap,
option, future, or forward agreement,
including a rate floor, rate cap, rate
collar, cross-currency rate swap, and
basis swap;
``(II) a spot, same day-tomorrow,
tomorrow-next, forward, or other
foreign exchange or precious metals
agreement;
``(III) a currency swap, option,
future, or forward agreement;
``(IV) an equity index or an equity
swap, option, future, or forward
agreement;
``(V) a debt index or a debt swap,
option, future, or forward agreement;
``(VI) a credit spread or a credit
swap, option, future, or forward
agreement; or
``(VII) a commodity index or a
commodity swap, option, future, or
forward agreement;
``(ii) an agreement or transaction that is
similar to an agreement or transaction referred
to in clause (i) that--
``(I) is currently, or in the
future becomes, regularly entered into
in the swap market (including terms and
conditions incorporated by reference
therein); and
``(II) is a forward, swap, future,
or option on a rate, currency,
commodity, equity security, or other
equity instrument, on a debt security
or other debt instrument, or on an
economic index or measure of economic
risk or value;
``(iii) a combination of agreements or
transactions referred to in clauses (i) and
(ii);
``(iv) an option to enter into an agreement
or transaction referred to in this
subparagraph;
``(v) a master netting agreement that
provides for an agreement or transaction
referred to in clause (i), (ii), (iii), or
(iv), together with all supplements to such
master netting agreement and without regard to
whether such master netting agreement contains
an agreement or transaction described in any
such clause, but only with respect to each
agreement or transaction referred to in any
such clause that is under such master netting
agreement; except that
``(B) the definition under subparagraph (A) is
applicable for purposes of this title only, and shall
not be construed or applied so as to challenge or
affect the characterization, definition, or treatment
of any swap agreement under any other statute,
regulation, or rule, including the Securities Act of
1933, the Securities Exchange Act of 1934, the Public
Utility Holding Company Act of 1935, the Trust
Indenture Act of 1939, the Investment Company Act of
1940, the Investment Advisers Act of 1940, the
Securities Investor Protection Act of 1970, the
Commodity Exchange Act, and the regulations prescribed
by the Securities and Exchange Commission or the
Commodity Futures Trading Commission.'';
(2) in section 741, by striking paragraph (7) and inserting
the following:
``(7) `securities contract'--
``(A) means--
``(i) a contract for the purchase, sale, or
loan of a security, a mortgage loan or an
interest in a mortgage loan, a group or index
of securities, or mortgage loans or interests
therein (including an interest therein or based
on the value thereof), or option on any of the
foregoing, including an option to purchase or
sell any of the foregoing;
``(ii) an option entered into on a national
securities exchange relating to foreign
currencies;
``(iii) the guarantee by or to a securities
clearing agency of a settlement of cash,
securities, mortgage loans or interests
therein, group or index of securities, or
mortgage loans or interests therein (including
any interest therein or based on the value
thereof), or option on any of the foregoing,
including an option to purchase or sell any of
the foregoing;
``(iv) a margin loan;
``(v) any other agreement or transaction
that is similar to an agreement or transaction
referred to in this subparagraph;
``(vi) a combination of the agreements or
transactions referred to in this subparagraph;
``(vii) an option to enter into an
agreement or transaction referred to in this
subparagraph;
``(viii) a master netting agreement that
provides for an agreement or transaction
referred to in clause (i), (ii), (iii), (iv),
(v), (vi), or (vii), together with all
supplements to such master netting agreement,
without regard to whether such master netting
agreement provides for an agreement or
transaction that is not a securities contract
under this subparagraph, except that such
master netting agreement shall be considered to
be a securities contract under this
subparagraph only with respect to each
agreement or transaction under such master
netting agreement that is referred to in clause
(i), (ii), (iii), (iv), (v), (vi), or (vii); or
``(ix) a security agreement or arrangement,
or other credit enhancement, directly
pertaining to a contract referred to in this
subparagraph, but not to exceed the actual
value of such contract on the date of the
filing of the petition; and
``(B) does not include a purchase, sale, or
repurchase obligation under a participation in a
commercial mortgage loan;''; and
(3) in section 761(4)--
(A) by striking ``or'' at the end of subparagraph
(D); and
(B) by adding at the end the following:
``(F) any other agreement or transaction that is
similar to an agreement or transaction referred to in
this paragraph;
``(G) a combination of the agreements or
transactions referred to in this paragraph;
``(H) an option to enter into an agreement or
transaction referred to in this paragraph;
``(I) a master netting agreement that provides for
an agreement or transaction referred to in subparagraph
(A), (B), (C), (D), (E), (F), (G), or (H), together
with all supplements to such master netting agreement,
without regard to whether such master netting agreement
provides for an agreement or transaction that is not a
commodity contract under this paragraph, except that
such master netting agreement shall be considered to be
a commodity contract under this paragraph only with
respect to each agreement or transaction under such
master netting agreement that is referred to in
subparagraph (A), (B), (C), (D), (E), (F), (G), or (H);
or
``(J) a security agreement or arrangement, or other
credit enhancement, directly pertaining to a contract
referred to in this paragraph, but not to exceed the
actual value of such contract on the date of the filing
of the petition.''.
(b) Definitions of Financial Institution, Financial Participant,
and Forward Contract Merchant.--Section 101 of title 11, United States
Code, as amended by section 802(b) of this Act, is amended--
(1) by striking paragraph (22) and inserting the following:
``(22) `financial institution' means--
``(A)(i) a Federal reserve bank, or an entity that
is a commercial or savings bank, industrial savings
bank, savings and loan association, trust company, or
receiver or conservator for such entity; and
``(ii) if such Federal reserve bank, receiver, or
conservator or entity is acting as agent or custodian
for a customer in connection with a securities
contract, as defined in section 741, such customer; or
``(B) in connection with a securities contract, as
defined in section 741 of this title, an investment
company registered under the Investment Company Act of
1940;'';
(2) by inserting after paragraph (22) the following:
``(22A) `financial participant' means an entity that is a
party to a securities contract, commodity contract or forward
contract, or on the date of the filing of the petition, has a
commodity contract (as defined in section 761) with the debtor
or any other entity (other than an affiliate) of a total gross
dollar value of not less than $1,000,000,000 in notional or
actual principal amount outstanding on any day during the
previous 15-month period, or has gross mark-to-market positions
of not less than $100,000,000 (aggregated across
counterparties) in any such agreement or transaction with the
debtor or any other entity (other than an affiliate) on any day
during the previous 15-month period;''; and
(3) by striking paragraph (26) and inserting the following:
``(26) `forward contract merchant' means a Federal reserve
bank, or an entity, the business of which consists in whole or
in part of entering into forward contracts as or with merchants
or in a commodity, as defined or in section 761, or any similar
good, article, service, right, or interest that is presently or
in the future becomes the subject of dealing or in the forward
contract trade;''.
(c) Definition of Master Netting Agreement and Master Netting
Agreement Participant.--Section 101 of title 11, United States Code, as
amended by subsection (b) of this section, is amended by inserting
after paragraph (38) the following new paragraphs:
``(38A) the term `master netting agreement'--
``(A) means an agreement providing for the exercise
of rights, including rights of netting, setoff,
liquidation, termination, acceleration, or closeout,
under or in connection with 1 or more contracts that
are described in any 1 or more of paragraphs (1)
through (5) of section 561(a), or any security
agreement or arrangement or other credit enhancement
related to 1 or more of the foregoing; except that
``(B) if a master netting agreement contains
provisions relating to agreements or transactions that
are not contracts described in paragraphs (1) through
(5) of section 561(a), the master netting agreement
shall be deemed to be a master netting agreement only
with respect to those agreements or transactions that
are described in any 1 or more of the paragraphs (1)
through (5) of section 561(a);
``(38B) the term `master netting agreement participant'
means an entity that, at any time before the filing of the
petition, is a party to an outstanding master netting agreement
with the debtor;''.
(d) Swap Agreements, Securities Contracts, Commodity Contracts,
Forward Contracts, Repurchase Agreements, and Master Netting Agreements
Under the Automatic Stay.--
(1) In general.--Section 362(b) of title 11, United States
Code, as amended by section 718 of this Act, is amended--
(A) in paragraph (6), by inserting ``, pledged to,
and under the control of,'' after ``held by'';
(B) in paragraph (7), by inserting ``, pledged to,
and under the control of,'' after ``held by'';
(C) by striking paragraph (17) and inserting the
following:
``(17) under subsection (a), of the setoff by a swap
participant of a mutual debt and claim under or in connection
with a swap agreement that constitutes the setoff of a claim
against the debtor for a payment or transfer due from the
debtor under or in connection with a swap agreement against a
payment due to the debtor from the swap participant under or in
connection with a swap agreement or against cash, securities,
or other property held by, pledged to, and under the control
of, or due from such swap participant to guarantee, secure, or
settle a swap agreement;'';
(D) in paragraph (26), by striking ``or'' at the
end;
(E) in paragraph (27), by striking the period at
the end and inserting ``; or''; and
(F) by inserting after paragraph (27) the
following:
``(28) under subsection (a), of the setoff by a master
netting agreement participant of a mutual debt and claim under
or in connection with 1 or more master netting agreements or
any contract or agreement subject to such agreements that
constitutes the setoff of a claim against the debtor for any
payment or other transfer of property due from the debtor under
or in connection with such agreements or any contract or
agreement subject to such agreements against any payment due to
the debtor from such master netting agreement participant under
or in connection with such agreements or any contract or
agreement subject to such agreements or against cash,
securities, or other property held by, pledged or and under the
control of, or due from such master netting agreement
participant to margin, guarantee, secure, or settle such
agreements or any contract or agreement subject to such
agreements, to the extent such participant is eligible to
exercise such offset rights under paragraph (6), (7), or (17)
for each individual contract covered by the master netting
agreement in issue.''.
(2) Limitation.--Section 362 of title 11, United States
Code, as amended by section 441(2) of this Act, is amended by
adding at the end the following:
``(l) Limitation.--The exercise of rights not subject to the stay
arising under subsection (a) pursuant to paragraph (6), (7), or (17) of
subsection (b) shall not be stayed by an order of a court or
administrative agency in any proceeding under this title.''.
(e) Limitation of Avoidance Powers Under Master Netting
Agreement.--Section 546 of title 11, United States Code, is amended--
(1) in subsection (g) (as added by section 103 of Public
Law 101-311 (104 Stat. 267 et seq.))--
(A) by striking ``under a swap agreement''; and
(B) by striking ``in connection with a swap
agreement'' and inserting ``under or in connection with
any swap agreement''; and
(2) by inserting before subsection (i) (as redesignated by
section 407 of this Act) the following new subsection:
``(h) Notwithstanding sections 544, 545, 547, 548(a)(2)(B), and
548(b), the trustee may not avoid a transfer made by or to a master
netting agreement participant under or in connection with any master
netting agreement or any individual contract covered thereby that is
made before the commencement of the case, and except to the extent that
the trustee could otherwise avoid such a transfer made under an
individual contract covered by such master netting agreement (except
under section 548(a)(1)(A)).''.
(f) Fraudulent Transfers of Master Netting Agreements.--Section
548(d)(2) of title 11, United States Code, is amended--
(1) in subparagraph (C), by striking ``and'';
(2) in subparagraph (D), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(E) a master netting agreement participant that
receives a transfer in connection with a master netting
agreement or any individual contract covered thereby
takes for value to the extent of such transfer, except,
with respect to a transfer under any individual
contract covered thereby, to the extent that such
master netting agreement participant otherwise did not
take (or is otherwise not deemed to have taken) such
transfer for value.''.
(g) Termination or Acceleration of Securities Contracts.--Section
555 of title 11, United States Code, is amended--
(1) by striking the section heading and inserting the
following:
``Sec. 555. Contractual right to liquidate, terminate, or accelerate a
securities contract'';
and
(2) in the first sentence, by striking ``liquidation'' and
inserting ``liquidation, termination, or acceleration''.
(h) Termination or Acceleration of Commodities or Forward
Contracts.--Section 556 of title 11, United States Code, is amended--
(1) by striking the section heading and inserting the
following:
``Sec. 556. Contractual right to liquidate, terminate, or accelerate a
commodities contract or forward contract'';
and
(2) in the first sentence, by striking ``liquidation'' and
inserting ``liquidation, termination, or acceleration''.
(i) Termination or Acceleration of Repurchase Agreements.--Section
559 of title 11, United States Code, is amended--
(1) by striking the section heading and inserting the
following:
``Sec. 559. Contractual right to liquidate, terminate, or accelerate a
repurchase agreement'';
and
(2) in the first sentence, by striking ``liquidation'' and
inserting ``liquidation, termination, or acceleration''.
(j) Liquidation, Termination, or Acceleration of Swap Agreements.--
Section 560 of title 11, United States Code, is amended--
(1) by striking the section heading and inserting
following:
``Sec. 560. Contractual right to liquidate, terminate, or accelerate a
swap agreement'';
(2) in the first sentence, by striking ``termination of a
swap agreement'' and inserting ``liquidation, termination, or
acceleration of a swap agreement''; and
(3) by striking ``in connection with any swap agreement''
and inserting ``in connection with the termination,
liquidation, or acceleration of a swap agreement''.
(k) Liquidation, Termination, Acceleration, or Offset Under a
Master Netting Agreement and Across Contracts.--Title 11, United States
Code, is amended by inserting after section 560 the following:
``Sec. 561. Contractual right to terminate, liquidate, accelerate, or
offset under a master netting agreement and across
contracts
``(a) Subject to subsection (b), the exercise of any contractual
right, because of a condition of the kind specified in section
365(e)(1), to cause the termination, liquidation, or acceleration of or
to offset or net termination values, payment amounts or other transfer
obligations arising under or in connection with 1 or more (or the
termination, liquidation, or acceleration of 1 or more)--
``(1) securities contracts, as defined in section 741(7);
``(2) commodity contracts, as defined in section 761(4);
``(3) forward contracts;
``(4) repurchase agreements;
``(5) swap agreements; or
``(6) master netting agreements,
shall not be stayed, avoided, or otherwise limited by operation of any
provision of this title or by any order of a court or administrative
agency in any proceeding under this title.
``(b)(1) A party may exercise a contractual right described in
subsection (a) to terminate, liquidate, or accelerate only to the
extent that such party could exercise such a right under section 555,
556, 559, or 560 for each individual contract covered by the master
netting agreement in issue.
``(2) If a debtor is a commodity broker subject to subchapter IV of
chapter 7--
``(A) a party may not net or offset an obligation to the
debtor arising under, or in connection with, a commodity
contract against any claim arising under, or in connection
with, other instruments, contracts, or agreements listed in
subsection (a), except to the extent that the party has
positive net equity in the commodity accounts at the debtor, as
calculated under such subchapter IV; and
``(B) another commodity broker may not net or offset an
obligation to the debtor arising under, or in connection with,
a commodity contract entered into or held on behalf of a
customer of the debtor against any claim arising under, or in
connection with, other instruments, contracts, or agreements
referred to in subsection (a).
``(c) As used in this section, the term `contractual right'
includes a right set forth in a rule or bylaw of a national securities
exchange, a national securities association, or a securities clearing
agency, a right set forth in a bylaw of a clearing organization or
contract market or in a resolution of the governing board thereof, and
a right, whether or not evidenced in writing, arising under common law,
under law merchant, or by reason of normal business practice.''.
(l) Ancillary Proceedings.--Section 304 of title 11, United States
Code, is amended by adding at the end the following:
``(d) Any provisions of this title relating to securities
contracts, commodity contracts, forward contracts, repurchase
agreements, swap agreements, or master netting agreements shall apply
in a case ancillary to a foreign proceeding under this section or any
other section of this title, so that enforcement of contractual
provisions of such contracts and agreements in accordance with their
terms--
``(1) shall not be stayed or otherwise limited by--
``(A) operation of any provision of this title; or
``(B) order of a court in any case under this
title;
``(2) shall limit avoidance powers to the same extent as in
a proceeding under chapter 7 or 11; and
``(3) shall not be limited based on the presence or absence
of assets of the debtor in the United States.''.
(m) Commodity Broker Liquidations.--Title 11, United States Code,
is amended by inserting after section 766 the following:
``Sec. 767. Commodity broker liquidation and forward contract
merchants, commodity brokers, stockbrokers, financial
institutions, securities clearing agencies, swap
participants, repo participants, and master netting
agreement participants
``Notwithstanding any other provision of this title, the exercise
of rights by a forward contract merchant, commodity broker,
stockbroker, financial institution, securities clearing agency, swap
participant, repo participant, or master netting agreement participant
under this title shall not affect the priority of any unsecured claim
it may have after the exercise of such rights.''.
(n) Stockbroker Liquidations.--Title 11, United States Code, is
amended by inserting after section 752 the following:
``Sec. 753. Stockbroker liquidation and forward contract merchants,
commodity brokers, stockbrokers, financial institutions,
securities clearing agencies, swap participants, repo
participants, and master netting agreement participants
``Notwithstanding any other provision of this title, the exercise
of rights by a forward contract merchant, commodity broker,
stockbroker, financial institution, securities clearing agency, swap
participant, repo participant, financial participant, or master netting
agreement participant under this title shall not affect the priority of
any unsecured claim it may have after the exercise of such rights.''.
(o) Setoff.--Section 553 of title 11, United States Code, is
amended--
(1) in subsection (a)(3)(C), by inserting ``(except for a
setoff of a kind described in section 362(b)(6), 362(b)(7),
362(b)(17), 362(b)(28), 555, 556, 559, or 560)'' before the
period; and
(2) in subsection (b)(1), by striking ``362(b)(14),'' and
inserting ``362(b)(17), 362(b)(28), 555, 556, 559, 560,''.
(p) Securities Contracts, Commodity Contracts, and Forward
Contracts.--Title 11, United States Code, is amended--
(1) in section 362(b)(6), by striking ``financial
institutions,'' each place such term appears and inserting
``financial institution, financial participant'';
(2) in section 546(e), by inserting ``financial
participant'' after ``financial institution,'';
(3) in section 548(d)(2)(B), by inserting ``financial
participant'' after ``financial institution,'';
(4) in section 555--
(A) by inserting ``financial participant'' after
``financial institution,''; and
(B) by inserting before the period ``, a right set
forth in a bylaw of a clearing organization or contract
market or in a resolution of the governing board
thereof, and a right, whether or not in writing,
arising under common law, under law merchant, or by
reason of normal business practice''; and
(5) in section 556, by inserting ``, financial
participant'' after ``commodity broker''.
(q) Conforming Amendments.--Title 11, United States Code, is
amended--
(1) in the table of sections for chapter 5--
(A) by striking the items relating to sections 555
and 556 and inserting the following:
``555. Contractual right to liquidate, terminate, or accelerate a
securities contract.
``556. Contractual right to liquidate, terminate, or accelerate a
commodities contract or forward
contract.'';
(B) by striking the items relating to sections 559
and 560 and inserting the following:
``559. Contractual right to liquidate, terminate, or accelerate a
repurchase agreement.
``560. Contractual right to liquidate, terminate, or accelerate a swap
agreement.'';
and
(C) by adding after the item relating to section
560 the following:
``561. Contractual right to terminate, liquidate, accelerate, or offset
under a master netting agreement and across
contracts.'';
and
(2) in the table of sections for chapter 7--
(A) by inserting after the item relating to section
766 the following:
``767. Commodity broker liquidation and forward contract merchants,
commodity brokers, stockbrokers, financial
institutions, securities clearing agencies,
swap participants, repo participants, and
master netting agreement participants.'';
and
(B) by inserting after the item relating to section
752 the following:
``753. Stockbroker liquidation and forward contract merchants,
commodity brokers, stockbrokers, financial
institutions, securities clearing agencies,
swap participants, repo participants, and
master netting agreement participants.''.
SEC. 902. DAMAGE MEASURE.
(a) In General.--Title 11, United States Code, is amended--
(1) by inserting after section 561 the following:
``Sec. 562. Damage measure in connection with swap agreements,
securities contracts, forward contracts, commodity
contracts, repurchase agreements, or master netting
agreements
``If the trustee rejects a swap agreement, securities contract (as
defined in section 741), forward contract, commodity contract (as
defined in section 761) repurchase agreement, or master netting
agreement under section 365(a), or if a forward contract merchant,
stockbroker, financial institution, securities clearing agency, repo
participant, financial participant, master netting agreement
participant, or swap participant liquidates, terminates, or accelerates
such contract or agreement, damages shall be measured as of the earlier
of--
``(1) the date of such rejection; or
``(2) the date of such liquidation, termination, or
acceleration.''; and
(2) in the table of sections for chapter 5 by inserting
after the item relating to section 561 the following:
``562. Damage measure in connection with swap agreements, securities
contracts, forward contracts, commodity
contracts, repurchase agreements, or master
netting agreements.''.
(b) Claims Arising From Rejection.--Section 502(g) of title 11,
United States Code, is amended--
(1) by inserting ``(1)'' after ``(g)''; and
(2) by adding at the end the following:
``(2) A claim for damages calculated in accordance with section 561
shall be allowed under subsection (a), (b), or (c) of this section, or
disallowed under subsection (d) or (e) of this section, as if such
claim had arisen before the date of the filing of the petition.''.
SEC. 903. ASSET-BACKED SECURITIZATIONS.
Section 541 of title 11, United States Code, is amended--
(1) in subsection (b), by striking ``or'' at the end of
paragraph (4);
(2) by redesignating paragraph (5) of subsection (b) as
paragraph (6);
(3) by inserting after paragraph (4) of subsection (b) the
following new paragraph:
``(5) any eligible asset (or proceeds thereof), to the
extent that such eligible asset was transferred by the debtor,
before the date of commencement of the case, to an eligible
entity in connection with an asset-backed securitization,
except to the extent that such asset (or proceeds or value
thereof) may be recovered by the trustee under section 550 by
virtue of avoidance under section 548(a); or''; and
(4) by adding at the end the following:
``(e) For purposes of this section, the following definitions shall
apply:
``(1) The term `asset-backed securitization' means a
transaction in which eligible assets transferred to an eligible
entity are used as the source of payment on securities, the
most senior of which are rated investment grade by 1 or more
nationally recognized securities rating organizations, issued
by an issuer.
``(2) The term `eligible asset' means--
``(A) financial assets (including interests therein
and proceeds thereof), either fixed or revolving,
including residential and commercial mortgage loans,
consumer receivables, trade receivables, and lease
receivables, that, by their terms, convert into cash
within a finite time period, plus any rights or other
assets designed to assure the servicing or timely
distribution of proceeds to security holders;
``(B) cash; and
``(C) securities.
``(3) The term `eligible entity' means--
``(A) an issuer; or
``(B) a trust, corporation, partnership, or other
entity engaged exclusively in the business of acquiring
and transferring eligible assets directly or indirectly
to an issuer and taking actions ancillary thereto.
``(4) The term `issuer' means a trust, corporation,
partnership, or other entity engaged exclusively in the
business of acquiring and holding eligible assets, issuing
securities backed by eligible assets, and taking actions
ancillary thereto.
``(5) The term `transferred' means the debtor, under a
written agreement, represented and warranted that eligible
assets were sold, contributed, or otherwise conveyed with the
intention of removing them from the estate of the debtor
pursuant to subsection (b)(5), irrespective, without limitation
of--
``(A) whether the debtor directly or indirectly
obtained or held an interest in the issuer or in any
securities issued by the issuer;
``(B) whether the debtor had an obligation to
repurchase or to service or supervise the servicing of
all or any portion of such eligible assets; or
``(C) the characterization of such sale,
contribution, or other conveyance for tax, accounting,
regulatory reporting, or other purposes.''.
SEC. 904. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.
(a) Effective Date.--This title shall take effect on the date of
enactment of this Act.
(b) Application of Amendments.--The amendments made by this title
shall apply with respect to cases commenced or appointments made under
any Federal or State law after the date of enactment of this Act, but
shall not apply with respect to cases commenced or appointments made
under any Federal or State law before the date of enactment of this
Act.
TITLE X--PROTECTION OF FAMILY FARMERS AND FAMILY FISHERMEN
SEC. 1001. REENACTMENT OF CHAPTER 12.
(a) Reenactment.--
(1) In general.--Chapter 12 of title 11, United States
Code, as reenacted by section 149 of division C of the Omnibus
Consolidated and Emergency Supplemental Appropriations Act,
1999 (Public Law 105-277), and amended by this Act, is
reenacted.
(2) Effective date.--Subsection (a) shall take effect on
October 1, 1999.
(b) Conforming Amendment.--Section 302 of the Bankruptcy, Judges,
United States Trustees, and Family Farmer Bankruptcy Act of 1986 (28
U.S.C. 581 note) is amended by striking subsection (f).
SEC. 1002. DEBT LIMIT INCREASE.
Section 104(b) of title 11, United States Code, is amended by
adding at the end the following:
``(4) The dollar amount in section 101(18) shall be adjusted at the
same times and in the same manner as the dollar amounts in paragraph
(1) of this subsection, beginning with the adjustment to be made on
April 1, 2001.''.
SEC. 1003. ELIMINATION OF REQUIREMENT THAT FAMILY FARMER AND SPOUSE
RECEIVE OVER 50 PERCENT OF INCOME FROM FARMING OPERATION
IN YEAR PRIOR TO BANKRUPTCY.
Section 101(18)(A) of title 11, United States Code, is amended by
striking ``the taxable year preceding the taxable year'' and inserting
``at least 1 of the 3 calendar years preceding the year''.
SEC. 1004. CERTAIN CLAIMS OWED TO GOVERNMENTAL UNITS.
(a) Contents of Plan.--Section 1222(a)(2) of title 11, United
States Code, is amended to read as follows:
``(2) provide for the full payment, in deferred cash
payments, of all claims entitled to priority under section 507,
unless--
``(A) the claim is a claim owed to a governmental
unit that arises as a result of the sale, transfer,
exchange, or other disposition of any farm asset used
in the debtor's farming operation, in which case the
claim shall be treated as an unsecured claim that is
not entitled to priority under section 507, but the
debt shall be treated in such manner only if the debtor
receives a discharge; or
``(B) the holder of a particular claim agrees to a
different treatment of that claim; and''.
(b) Special Notice Provisions.--Section 1231(b) of title 11, United
States Code, is amended by striking ``a State or local governmental
unit'' and inserting ``any governmental unit''.
SEC. 1005. PROHIBITION OF RETROACTIVE ASSESSMENT OF DISPOSABLE INCOME.
(a) In General.--Section 1225(b) of title 11, United States Code,
is amended by adding at the end the following:
``(3) If the plan provides for specific amounts of property
to be distributed on account of allowed unsecured claims as
required by paragraph (1)(B), those amounts equal or exceed the
debtor's projected disposable income for that period, and the
plan meets the requirements for confirmation other than those
of this subsection, the plan shall be confirmed.''.
(b) Modification.--Section 1229 of title 11, United States Code, is
amended by adding at the end the following:
``(d)(1) A modification of the plan under this section may not
increase the amount of payments that were due prior to the date of the
order modifying the plan.
``(2) A modification of the plan under this section to increase
payments based on an increase in the debtor's disposable income may not
require payments to unsecured creditors in any particular month greater
than the debtor's disposable income for that month unless the debtor
proposes such a modification.
``(3) A modification of the plan in the last year of the plan shall
not require payments that would leave the debtor with insufficient
funds to carry on the farming operation after the plan is completed
unless the debtor proposes such a modification.''.
SEC. 1006. FAMILY FISHERMEN.
(a) Definitions.--Section 101 of title 11, United States Code, is
amended--
(1) by inserting after paragraph (7) the following:
``(7A) `commercial fishing operation' includes--
``(A) the catching or harvesting of fish, shrimp,
lobsters, urchins, seaweed, shellfish, or other aquatic
species or products; and
``(B) for purposes of section 109 and chapter 12,
aquaculture activities consisting of raising for market
any species or product described in subparagraph
(A);'';
``(7B) `commercial fishing vessel' means a vessel used by a
fisherman to carry out a commercial fishing operation;'';
(2) by inserting after paragraph (19) the following:
``(19A) `family fisherman' means--
``(A) an individual or individual and spouse
engaged in a commercial fishing operation (including
aquiculture for purposes of chapter 12)--
``(i) whose aggregate debts do not exceed
$1,500,000 and not less than 80 percent of
whose aggregate noncontingent, liquidated debts
(excluding a debt for the principal residence
of such individual or such individual and
spouse, unless such debt arises out of a
commercial fishing operation), on the date the
case is filed, arise out of a commercial
fishing operation owned or operated by such
individual or such individual and spouse; and
``(ii) who receive from such commercial
fishing operation more than 50 percent of such
individual's or such individual's and spouse's
gross income for the taxable year preceding the
taxable year in which the case concerning such
individual or such individual and spouse was
filed; or
``(B) a corporation or partnership--
``(i) in which more than 50 percent of the
outstanding stock or equity is held by--
``(I) 1 family that conducts the
commercial fishing operation; or
``(II) 1 family and the relatives
of the members of such family, and such
family or such relatives conduct the
commercial fishing operation; and
``(ii)(I) more than 80 percent of the value
of its assets consists of assets related to the
commercial fishing operation;
``(II) its aggregate debts do not exceed
$1,500,000 and not less than 80 percent of its
aggregate noncontingent, liquidated debts
(excluding a debt for 1 dwelling which is owned
by such corporation or partnership and which a
shareholder or partner maintains as a principal
residence, unless such debt arises out of a
commercial fishing operation), on the date the
case is filed, arise out of a commercial
fishing operation owned or operated by such
corporation or such partnership; and
``(III) if such corporation issues stock,
such stock is not publicly traded;''; and
(3) by inserting after paragraph (19A) the following:
``(19B) `family fisherman with regular annual income' means
a family fisherman whose annual income is sufficiently stable
and regular to enable such family fisherman to make payments
under a plan under chapter 12 of this title;''.
(b) Who May Be a Debtor.--Section 109(f) of title 11, United States
Code, is amended by inserting ``or family fisherman'' after ``family
farmer''.
(c) Chapter 12.--Chapter 12 of title 11, United States Code, is
amended--
(1) in the chapter heading, by inserting ``OR FISHERMAN''
after ``FAMILY FARMER'';
(2) in section 1201, by adding at the end the following:
``(e)(1) Notwithstanding any other provision of law, for purposes
of this subsection, a guarantor of a claim of a creditor under this
section shall be treated in the same manner as a creditor with respect
to the operation of a stay under this section.
``(2) For purposes of a claim that arises from the ownership or
operation of a commercial fishing operation, a co-maker of a loan made
by a creditor under this section shall be treated in the same manner as
a creditor with respect to the operation of a stay under this
section.'';
(3) in section 1203, by inserting ``or commercial fishing
operation'' after ``farm'';
(4) in section 1206, by striking ``if the property is
farmland or farm equipment'' and inserting ``if the property is
farmland, farm equipment, or property of a commercial fishing
operation (including a commercial fishing vessel)''; and
(5) by adding at the end the following:
``Sec. 1232. Additional provisions relating to family fishermen
``(a)(1) Notwithstanding any other provision of law, except as
provided in subsection (c), with respect to any commercial fishing
vessel of a family fisherman, the debts of that family fisherman shall
be treated in the manner prescribed in paragraph (2).
``(2)(A) For purposes of this chapter, a claim for a lien described
in subsection (b) for a commercial fishing vessel of a family fisherman
that could, but for this subsection, be subject to a lien under
otherwise applicable maritime law, shall be treated as an unsecured
claim.
``(B) Subparagraph (A) applies to a claim for a lien resulting from
a debt of a family fisherman incurred on or after the date of enactment
of this chapter.
``(b) A lien described in this subsection is--
``(1) a maritime lien under subchapter III of chapter 313
of title 46, United States Code, without regard to whether that
lien is recorded under section 31343 of title 46, United States
Code; or
``(2) a lien under applicable State law (or the law of a
political subdivision thereof).
``(c) Subsection (a) shall not apply to--
``(1) a claim made by a member of a crew or a seaman
including a claim made for--
``(A) wages, maintenance, or cure; or
``(B) personal injury; or
``(2) a preferred ship mortgage that has been perfected
under subchapter II of chapter 313 of title 46, United States
Code.
``(d) For purposes of this chapter, a mortgage described in
subsection (c)(2) shall be treated as a secured claim.''.
(d) Clerical Amendments.--
(1) Table of chapters.--In the table of chapters for title
11, United States Code, the item relating to chapter 12, is
amended to read as follows:
``12. Adjustments of Debts of a Family Farmer or Family 1201''.
Fisherman with Regular Annual
Income.
(2) Table of sections.--The table of sections for chapter
12 of title 11, United States Code, is amended by adding at the
end the following new item:
``1232. Additional provisions relating to family fishermen.''.
TITLE XI--HEALTH CARE AND EMPLOYEE BENEFITS
SEC. 1101. DEFINITIONS.
(a) Health Care Business Defined.--Section 101 of title 11, United
States Code, as amended by section 1003(a) of this Act, is amended--
(1) by redesignating paragraph (27A) as paragraph (27B);
and
(2) inserting after paragraph (27) the following:
``(27A) `health care business'--
``(A) means any public or private entity (without
regard to whether that entity is organized for profit
or not for profit) that is primarily engaged in
offering to the general public facilities and services
for--
``(i) the diagnosis or treatment of injury,
deformity, or disease; and
``(ii) surgical, drug treatment,
psychiatric or obstetric care; and
``(B) includes--
``(i) any--
``(I) general or specialized
hospital;
``(II) ancillary ambulatory,
emergency, or surgical treatment
facility;
``(III) hospice;
``(IV) home health agency; and
``(V) other health care institution
that is similar to an entity referred
to in subclause (I), (II), (III), or
(IV); and
``(ii) any long-term care facility,
including any--
``(I) skilled nursing facility;
``(II) intermediate care facility;
``(III) assisted living facility;
``(IV) home for the aged;
``(V) domiciliary care facility;
and
``(VI) health care institution that
is related to a facility referred to in
subclause (I), (II), (III), (IV), or
(V), if that institution is primarily
engaged in offering room, board,
laundry, or personal assistance with
activities of daily living and
incidentals to activities of daily
living;''.
(b) Patient Defined.--Section 101 of title 11, United States Code,
as amended by subsection (a) of this section, is amended by inserting
after paragraph (40) the following:
``(40A) `patient' means any person who obtains or receives
services from a health care business;''.
(c) Patient Records Defined.--Section 101 of title 11, United
States Code, as amended by subsection (b) of this section, is amended
by inserting after paragraph (40A) the following:
``(40B) `patient records' means any written document
relating to a patient or a record recorded in a magnetic,
optical, or other form of electronic medium;''.
(d) Rule of Construction.--The amendments made by subsection (a) of
this section shall not affect the interpretation of section 109(b) of
title 11, United States Code.
SEC. 1102. DISPOSAL OF PATIENT RECORDS.
(a) In General.--Subchapter III of chapter 3 of title 11, United
States Code, is amended by adding at the end the following:
``Sec. 351. Disposal of patient records
``If a health care business commences a case under chapter 7, 9, or
11, and the trustee does not have a sufficient amount of funds to pay
for the storage of patient records in the manner required under
applicable Federal or State law, the following requirements shall
apply:
``(1) The trustee shall--
``(A) publish notice, in 1 or more appropriate
newspapers, that if patient records are not claimed by
the patient or an insurance provider (if applicable law
permits the insurance provider to make that claim) by
the date that is 90 days after the date of that
notification, the trustee will destroy the patient
records; and
``(B) during the 90-day period described in
subparagraph (A), attempt to notify directly each
patient that is the subject of the patient records and
appropriate insurance carrier concerning the patient
records by mailing to the last known address of that
patient and appropriate insurance carrier an
appropriate notice regarding the claiming or disposing
of patient records.
``(2) If after providing the notification under paragraph
(1), patient records are not claimed during the 90-day period
described under that paragraph, the trustee shall mail, by
certified mail, at the end of such 90-day period a written
request to each appropriate Federal agency to request
permission from that agency to deposit the patient records with
that agency.
``(3) If, following the period in paragraph (2) and after
providing the notification under paragraph (1), patient records
are not claimed during the 90-day period described in paragraph
(1)(A) or in any case in which a notice is mailed under
paragraph (1)(B), during the 90-day period beginning on the
date on which the notice is mailed, by a patient or insurance
provider in accordance with that paragraph, the trustee shall
destroy those records by--
``(A) if the records are written, shredding or
burning the records; or
``(B) if the records are magnetic, optical, or
other electronic records, by otherwise destroying those
records so that those records cannot be retrieved.''.
(b) Clerical Amendment.--The chapter analysis for chapter 3 of
title 11, United States Code, is amended by inserting after the item
relating to section 350 the following:
``351. Disposal of patient records.''.
SEC. 1103. ADMINISTRATIVE EXPENSE CLAIM FOR COSTS OF CLOSING A HEALTH
CARE BUSINESS.
Section 503(b) of title 11, United States Code, is amended--
(1) in paragraph (5), by striking ``and'' at the end;
(2) in paragraph (6), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(7) the actual, necessary costs and expenses of closing a
health care business incurred by a trustee or by a Federal
agency (as that term is defined in section 551(1) of title 5)
or a department or agency of a State or political subdivision
thereof, including any cost or expense incurred--
``(A) in disposing of patient records in accordance
with section 351; or
``(B) in connection with transferring patients from
the health care business that is in the process of
being closed to another health care business.''.
SEC. 1104. APPOINTMENT OF OMBUDSMAN TO ACT AS PATIENT ADVOCATE.
(a) In General.--
(1) Appointment of ombudsman.--Subchapter II of chapter 3
of title 11, United States Code, is amended by inserting after
section 331 the following:
``Sec. 332. Appointment of ombudsman
``(a) Not later than 30 days after a case is commenced by a health
care business under chapter 7, 9, or 11, the court shall appoint an
ombudsman with appropriate expertise in monitoring the quality of
patient care to represent the interests of the patients of the health
care business. The court may appoint as an ombudsman a person who is
serving as a State Long-Term Care Ombudsman appointed under title III
or VII of the Older Americans Act of 1965 (42 U.S.C. 3021 et seq. and
3058 et seq.).
``(b) An ombudsman appointed under subsection (a) shall--
``(1) monitor the quality of patient care, to the extent
necessary under the circumstances, including interviewing
patients and physicians;
``(2) not later than 60 days after the date of appointment,
and not less frequently than every 60 days thereafter, report
to the court, at a hearing or in writing, regarding the quality
of patient care at the health care business involved; and
``(3) if the ombudsman determines that the quality of
patient care is declining significantly or is otherwise being
materially compromised, notify the court by motion or written
report, with notice to appropriate parties in interest,
immediately upon making that determination.
``(c) An ombudsman shall maintain any information obtained by the
ombudsman under this section that relates to patients (including
information relating to patient records) as confidential
information.''.
(2) Clerical amendment.--The chapter analysis for chapter 3
of title 11, United States Code, is amended by inserting after
the item relating to section 331 the following:
``332. Appointment of ombudsman.''.
(b) Compensation of Ombudsman.--Section 330(a)(1) of title 11,
United States Code, is amended--
(1) in the matter proceeding subparagraph (A), by inserting
``an ombudsman appointed under section 331, or'' before ``a
professional person''; and
(2) in subparagraph (A), by inserting ``ombudsman,'' before
``professional person''.
SEC. 1105. DEBTOR IN POSSESSION; DUTY OF TRUSTEE TO TRANSFER PATIENTS.
(a) In General.--Section 704(a) of title 11, United States Code, as
amended by section 219 of this Act, is amended--
(1) in paragraph (9), by striking ``and'' at the end;
(2) in paragraph (10), by striking the period and inserting
``; and''; and
(3) by adding at the end the following:
``(11) use all reasonable and best efforts to transfer
patients from a health care business that is in the process of
being closed to an appropriate health care business that--
``(A) is in the vicinity of the health care
business that is closing;
``(B) provides the patient with services that are
substantially similar to those provided by the health
care business that is in the process of being closed;
and
``(C) maintains a reasonable quality of care.''.
(b) Conforming Amendment.--Section 1106(a)(1) of title 11, United
States Code, is amended by striking ``704(2), 704(5), 704(7), 704(8),
and 704(9)'' and inserting ``704(a) (2), (5), (7), (8), (9), and
(11)''.
SEC. 1106. ESTABLISHMENT OF POLICY AND PROTOCOLS RELATING TO
BANKRUPTCIES OF HEALTH CARE BUSINESSES.
Not later than 30 days after the date of enactment of this Act, the
Attorney General of the United States, in consultation with the
Secretary of Health and Human Services and the National Association of
Attorneys General, shall establish a policy and protocols for
coordinating a response to bankruptcies of health care businesses (as
that term is defined in section 101 of title 11, United States Code),
including assessing the appropriate time frame for disposal of patient
records under section 1102 of this Act.
SEC. 1107. EXCLUSION FROM PROGRAM PARTICIPATION NOT SUBJECT TO
AUTOMATIC STAY.
Section 362(b) of title 11, United States Code, as amended by
section 901(d) of this Act, is amended--
(1) in paragraph (27), by striking ``or'' at the end;
(2) in paragraph (28), by striking the period at the end
and inserting ``; or''; and
(3) by inserting after paragraph (28) the following:
``(29) under subsection (a), of the exclusion by the
Secretary of Health and Human Services of the debtor from
participation in the medicare program or any other Federal
health care program (as defined in section 1128B(f) of the
Social Security Act (42 U.S.C. 1320a-7b(f)) pursuant to title
XI of such Act (42 U.S.C. 1301 et seq.) or title XVIII of such
Act (42 U.S.C. 1395 et seq.).''.
TITLE XII--TECHNICAL AMENDMENTS
SEC. 1201. DEFINITIONS.
Section 101 of title 11, United States Code, as amended by section
1003 of this Act, is amended--
(1) by striking ``In this title--'' and inserting ``In this
title:'';
(2) in each paragraph, by inserting ``The term'' after the
paragraph designation;
(3) in paragraph (35)(B), by striking ``paragraphs (21B)
and (33)(A)'' and inserting ``paragraphs (23) and (35)'';
(4) in each of paragraphs (35A) and (38), by striking ``;
and'' at the end and inserting a period;
(5) in paragraph (51B)--
(A) by inserting ``who is not a family farmer''
after ``debtor'' the first place it appears; and
(B) by striking ``thereto having aggregate'' and
all that follows through the end of the paragraph;
(6) by striking paragraph (54) and inserting the following:
``(54) The term `transfer' means--
``(A) the creation of a lien;
``(B) the retention of title as a security
interest;
``(C) the foreclosure of a debtor's equity of
redemption; or
``(D) each mode, direct or indirect, absolute or
conditional, voluntary or involuntary, of disposing of
or parting with--
``(i) property; or
``(ii) an interest in property;'';
(7) in each of paragraphs (1) through (35), in each of
paragraphs (36) and (37), and in each of paragraphs (40)
through (55) (including paragraph (54), as amended by paragraph
(6) of this section), by striking the semicolon at the end and
inserting a period; and
(8) by redesignating paragraphs (4) through (55), including
paragraph (54), as amended by paragraph (6) of this section, in
entirely numerical sequence.
SEC. 1202. ADJUSTMENT OF DOLLAR AMOUNTS.
Section 104 of title 11, United States Code, is amended by
inserting ``522(f)(3),'' after ``522(d),'' each place it appears.
SEC. 1203. EXTENSION OF TIME.
Section 108(c)(2) of title 11, United States Code, is amended by
striking ``922'' and all that follows through ``or'', and inserting
``922, 1201, or''.
SEC. 1204. TECHNICAL AMENDMENTS.
Title 11, United States Code, is amended--
(1) in section 109(b)(2), by striking ``subsection (c) or
(d) of''; and
(2) in section 552(b)(1), by striking ``product'' each
place it appears and inserting ``products''.
SEC. 1205. PENALTY FOR PERSONS WHO NEGLIGENTLY OR FRAUDULENTLY PREPARE
BANKRUPTCY PETITIONS.
Section 110(j)(3) of title 11, United States Code, is amended by
striking ``attorney's'' and inserting ``attorneys'''.
SEC. 1206. LIMITATION ON COMPENSATION OF PROFESSIONAL PERSONS.
Section 328(a) of title 11, United States Code, is amended by
inserting ``on a fixed or percentage fee basis,'' after ``hourly
basis,''.
SEC. 1207. EFFECT OF CONVERSION.
Section 348(f)(2) of title 11, United States Code, is amended by
inserting ``of the estate'' after ``property'' the first place it
appears.
SEC. 1208. ALLOWANCE OF ADMINISTRATIVE EXPENSES.
Section 503(b)(4) of title 11, United States Code, is amended by
inserting ``subparagraph (A), (B), (C), (D), or (E) of'' before
``paragraph (3)''.
SEC. 1209. EXCEPTIONS TO DISCHARGE.
Section 523 of title 11, United States Code, as amended by section
714 of this Act, is amended--
(1) as amended by section 304(e) of Public Law 103-394 (108
Stat. 4133), in paragraph (15), by transferring such paragraph
so as to insert such paragraph after paragraph (14) of
subsection (a);
(2) in subsection (a)(9), by striking ``motor vehicle or
vessel'' and inserting ``motor vehicle, vessel, or aircraft'';
and
(3) in subsection (e), by striking ``a insured'' and
inserting ``an insured''.
SEC. 1210. EFFECT OF DISCHARGE.
Section 524(a)(3) of title 11, United States Code, is amended by
striking ``section 523'' and all that follows through ``or that'' and
inserting ``section 523, 1228(a)(1), or 1328(a)(1), or that''.
SEC. 1211. PROTECTION AGAINST DISCRIMINATORY TREATMENT.
Section 525(c) of title 11, United States Code, is amended--
(1) in paragraph (1), by inserting ``student'' before
``grant'' the second place it appears; and
(2) in paragraph (2), by striking ``the program operated
under part B, D, or E of'' and inserting ``any program operated
under''.
SEC. 1212. PROPERTY OF THE ESTATE.
Section 541(b)(4)(B)(ii) of title 11, United States Code, is
amended by inserting ``365 or'' before ``542''.
SEC. 1213. PREFERENCES.
(a) In General.--Section 547 of title 11, United States Code, as
amended by section 201(b) of this Act, is amended--
(1) in subsection (b), by striking ``subsection (c)'' and
inserting ``subsections (c) and (i)''; and
(2) by adding at the end the following:
``(i) If the trustee avoids under subsection (b) a security
interest given between 90 days and 1 year before the date of the filing
of the petition, by the debtor to an entity that is not an insider for
the benefit of a creditor that is an insider, such security interest
shall be considered to be avoided under this section only with respect
to the creditor that is an insider.''.
(b) Applicability.--The amendments made by this section shall apply
to any case that pending or commenced on or after the date of enactment
of this Act.
SEC. 1214. POSTPETITION TRANSACTIONS.
Section 549(c) of title 11, United States Code, is amended--
(1) by inserting ``an interest in'' after ``transfer of'';
(2) by striking ``such property'' and inserting ``such real
property''; and
(3) by striking ``the interest'' and inserting ``such
interest''.
SEC. 1215. DISPOSITION OF PROPERTY OF THE ESTATE.
Section 726(b) of title 11, United States Code, is amended by
striking ``1009,''.
SEC. 1216. GENERAL PROVISIONS.
Section 901(a) of title 11, United States Code, as amended by
section 502 of this Act, is amended by inserting ``1123(d),'' after
``1123(b),''.
SEC. 1217. ABANDONMENT OF RAILROAD LINE.
Section 1170(e)(1) of title 11, United States Code, is amended by
striking ``section 11347'' and inserting ``section 11326(a)''.
SEC. 1218. CONTENTS OF PLAN.
Section 1172(c)(1) of title 11, United States Code, is amended by
striking ``section 11347'' and inserting ``section 11326(a)''.
SEC. 1219. DISCHARGE UNDER CHAPTER 12.
Subsections (a) and (c) of section 1228 of title 11, United States
Code, are amended by striking ``1222(b)(10)'' each place it appears and
inserting ``1222(b)(9)''.
SEC. 1220. BANKRUPTCY CASES AND PROCEEDINGS.
Section 1334(d) of title 28, United States Code, is amended--
(1) by striking ``made under this subsection'' and
inserting ``made under subsection (c)''; and
(2) by striking ``This subsection'' and inserting
``Subsection (c) and this subsection''.
SEC. 1221. KNOWING DISREGARD OF BANKRUPTCY LAW OR RULE.
Section 156(a) of title 18, United States Code, is amended--
(1) in the first undesignated paragraph--
(A) by inserting ``(1) the term'' before
```bankruptcy''; and
(B) by striking the period at the end and inserting
``; and''; and
(2) in the second undesignated paragraph--
(A) by inserting ``(2) the term'' before
```document''; and
(B) by striking ``this title'' and inserting
``title 11''.
SEC. 1222. TRANSFERS MADE BY NONPROFIT CHARITABLE CORPORATIONS.
(a) Sale of Property of Estate.--Section 363(d) of title 11, United
States Code, is amended by striking ``only'' and all that follows
through the end of the subsection and inserting ``only--
``(1) in accordance with applicable nonbankruptcy law that
governs the transfer of property by a corporation or trust that
is not a moneyed, business, or commercial corporation or trust;
and
``(2) to the extent not inconsistent with any relief
granted under subsection (c), (d), (e), or (f) of section
362.''.
(b) Confirmation of Plan for Reorganization.--Section 1129(a) of
title 11, United States Code, as amended by section 212 of this Act, is
amended by adding at the end the following:
``(15) All transfers of property of the plan shall be made
in accordance with any applicable provisions of nonbankruptcy
law that govern the transfer of property by a corporation or
trust that is not a moneyed, business, or commercial
corporation or trust.''.
(c) Transfer of Property.--Section 541 of title 11, United States
Code, is amended by adding at the end the following:
``(f) Notwithstanding any other provision of this title, property
that is held by a debtor that is a corporation described in section
501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax
under section 501(a) of such Code may be transferred to an entity that
is not such a corporation, but only under the same conditions as would
apply if the debtor had not filed a case under this title.''.
(d) Applicability.--The amendments made by this section shall apply
to a case pending under title 11, United States Code, on the date of
enactment of this Act, except that the court shall not confirm a plan
under chapter 11 of this title without considering whether this section
would substantially affect the rights of a party in interest who first
acquired rights with respect to the debtor after the date of the
petition. The parties who may appear and be heard in a proceeding under
this section include the attorney general of the State in which the
debtor is incorporated, was formed, or does business.
(e) Rule of Construction.--Nothing in this section shall be
construed to require the court in which a case under chapter 11 is
pending to remand or refer any proceeding, issue, or controversy to any
other court or to require the approval of any other court for the
transfer of property.
SEC. 1223. PROTECTION OF VALID PURCHASE MONEY SECURITY INTERESTS.
Section 547(c)(3)(B) of title 11, United States Code, is amended by
striking ``20'' and inserting ``30''.
SEC. 1224. EXTENSIONS.
Section 302(d)(3) of the Bankruptcy, Judges, United States
Trustees, and Family Farmer Bankruptcy Act of 1986 (28 U.S.C. 581 note)
is amended--
(1) in subparagraph (A), in the matter following clause
(ii), by striking ``or October 1, 2002, whichever occurs
first''; and
(2) in subparagraph (F)--
(A) in clause (i)--
(i) in subclause (II), by striking ``or
October 1, 2002, whichever occurs first''; and
(ii) in the matter following subclause
(II), by striking ``October 1, 2003, or''; and
(B) in clause (ii), in the matter following
subclause (II)--
(i) by striking ``before October 1, 2003,
or''; and
(ii) by striking ``, whichever occurs
first''.
SEC. 1225. BANKRUPTCY JUDGESHIPS.
(a) Short Title.--This section may be cited as the ``Bankruptcy
Judgeship Act of 2000''.
(b) Temporary Judgeships.--
(1) Appointments.--The following judgeship positions shall
be filled in the manner prescribed in section 152(a)(1) of
title 28, United States Code, for the appointment of bankruptcy
judges provided for in section 152(a)(2) of such title:
(A) One additional bankruptcy judgeship for the
eastern district of California.
(B) Four additional bankruptcy judgeships for the
central district of California.
(C) One additional bankruptcy judgeship for the
southern district of Florida.
(D) Two additional bankruptcy judgeships for the
district of Maryland.
(E) One additional bankruptcy judgeship for the
eastern district of Michigan.
(F) One additional bankruptcy judgeship for the
southern district of Mississippi.
(G) One additional bankruptcy judgeship for the
district of New Jersey.
(H) One additional bankruptcy judgeship for the
eastern district of New York.
(I) One additional bankruptcy judgeship for the
northern district of New York.
(J) One additional bankruptcy judgeship for the
southern district of New York.
(K) One additional bankruptcy judgeship for the
eastern district of Pennsylvania.
(L) One additional bankruptcy judgeship for the
middle district of Pennsylvania.
(M) One additional bankruptcy judgeship for the
western district of Tennessee.
(N) One additional bankruptcy judgeship for the
eastern district of Virginia.
(2) Vacancies.--The first vacancy occurring in the office
of a bankruptcy judge in each of the judicial districts set
forth in paragraph (1) that--
(A) results from the death, retirement,
resignation, or removal of a bankruptcy judge; and
(B) occurs 5 years or more after the appointment
date of a bankruptcy judge appointed under paragraph
(1);
shall not be filled.
(c) Extensions.--
(1) In general.--The temporary bankruptcy judgeship
positions authorized for the northern district of Alabama, the
district of Delaware, the district of Puerto Rico, the district
of South Carolina, and the eastern district of Tennessee under
section 3(a) (1), (3), (7), (8), and (9) of the Bankruptcy
Judgeship Act of 1992 (28 U.S.C. 152 note) are extended until
the first vacancy occurring in the office of a bankruptcy judge
in the applicable district resulting from the death,
retirement, resignation, or removal of a bankruptcy judge and
occurring--
(A) 8 years or more after November 8, 1993, with
respect to the northern district of Alabama;
(B) 10 years or more after October 28, 1993, with
respect to the district of Delaware;
(C) 8 years or more after August 29, 1994, with
respect to the district of Puerto Rico;
(D) 8 years or more after June 27, 1994, with
respect to the district of South Carolina; and
(E) 8 years or more after November 23, 1993, with
respect to the eastern district of Tennessee.
(2) Applicability of other provisions.--All other
provisions of section 3 of the Bankruptcy Judgeship Act of 1992
remain applicable to such temporary judgeship positions.
(d) Technical Amendment.--The first sentence of section 152(a)(1)
of title 28, United States Code, is amended to read as follows: ``Each
bankruptcy judge to be appointed for a judicial district as provided in
paragraph (2) shall be appointed by the United States court of appeals
for the circuit in which such district is located.''.
SEC. 1226. 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 1201''.
Fisherman with Regular Annual
Income.
(2) Table of sections.--The table of sections for chapter
12 of title 11, United States Code, is amended by adding at the
end the following new item:
``1232. Additional provisions relating to family fishermen.''.
(e) Magnuson-Stevens Fishery Conservation and Management Act.--
Nothing in this title is intended to change, affect, or amend the
Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C.
1801 et seq.).
SEC. 1227. COMPENSATING TRUSTEES.
Title 11, United States Code, is amended--
(1) in section 104(b)(1) in the matter preceding
subparagraph (A) by--
(A) striking ``and 523(a)(2)(C)''; and
(B) inserting ``523(a)(2)(C), and 1326(b)(3)''
before ``immediately'';
(2) in section 326, by inserting at the end the following:
``(e) Notwithstanding any other provision of this section, if a
trustee in a chapter 7 case commences a motion to dismiss or convert
under section 707(b) and such motion is granted, the court shall allow
reasonable compensation under section 330(a) of this title for the
services and expenses of the trustee and the trustee's counsel in
preparing and presenting such motion and any related appeals.''; and
(3) in section 1326(b)--
(A) in paragraph (1), by striking ``and'';
(B) in paragraph (2), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(3) if a chapter 7 trustee has been allowed compensation
under section 326(e) in a case converted to this chapter or in
a case dismissed under section 707(b) in which the debtor in
this case was a debtor--
``(A) the amount of such unpaid compensation which
shall be paid monthly by prorating such amount over the
remaining duration of the plan, but a monthly payment
shall not exceed the greater of--
``(i) $25; or
``(ii) the amount payable to unsecured
nonpriority creditors as provided by the plan
multiplied by 5 percent, and the result divided
by the number of months in the plan; and
``(B) notwithstanding any other provision of this
title--
``(i) such compensation is payable and may
be collected by the trustee under this
paragraph even if such amount has been
discharged in a prior proceeding under this
title; and
``(ii) such compensation is payable in a
case under this chapter only to the extent
permitted by this paragraph.''.
SEC. 1228. AMENDMENT TO SECTION 362 OF TITLE 11, UNITED STATES CODE.
Section 362(b)(18) of title 11, United States Code, is amended to
read as follows:
``(18) under subsection (a) of the creation or perfection
of a statutory lien for an ad valorem property tax, or a
special tax or special assessment on real property whether or
not ad valorem, imposed by a governmental unit, if such tax or
assessment comes due after the filing of the petition.''.
SEC. 1229. PROVISION OF ELECTRONIC FTC PAMPHLET WITH ELECTRONIC CREDIT
CARD APPLICATIONS AND SOLICITATIONS.
Section 127(c) of the Truth in Lending Act (15 U.S.C. 1637(c)) is
amended--
(1) by redesignating paragraph (5) as paragraph (6); and
(2) by inserting after paragraph (4) the following:
``(5) Inclusion of federal trade commission pamphlet.--
``(A) In general.--Any application to open a credit
card account for any person under an open end consumer
credit plan, or a solicitation or an advertisement to
open such an account without requiring an application,
that is electronically transmitted to or accessed by a
consumer shall be accompanied by an electronic version
(or an electronic link thereto) of the pamphlet
published by the Federal Trade Commission relating to
choosing and using credit cards.
``(B) Costs.--The card issuer with respect to an
account described in subparagraph (A) shall be
responsible for all costs associated with compliance
with that subparagraph.''.
SEC. 1230. NO BANKRUPTCY FOR INSOLVENT POLITICAL COMMITTEES.
Section 105 of title 11, United States Code, is amended by
inserting at the end the following:
``(e) A political committee subject to the jurisdiction of the
Federal Election Commission under Federal election laws may not file
for bankruptcy under this title.''.
SEC. 1231. FEDERAL ELECTION LAW FINES AND PENALTIES AS NONDISCHARGEABLE
DEBT.
Section 523(a) of title 11, United States Code, is amended by
inserting after paragraph (14A) the following:
``(14B) fines or penalties imposed under Federal election
law;''.
SEC. 1232. PROHIBITION ON CERTAIN RETROACTIVE FINANCE CHARGES.
Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is amended
by adding at the end the following:
``(h) Prohibition on Retroactive Finance Charges.--
``(1) In general.--In the case of any credit card account
under an open end credit plan, if the creditor provides a grace
period applicable to any new extension of credit under the
account, no finance charge may be imposed subsequent to the
grace period with regard to any amount that was paid on or
before the end of that grace period.
``(2) Definition.--For purposes of this subsection, the
term `grace period' means a period during which the extension
of credit may be repaid, in whole or in part, without incurring
a finance charge for the extension of credit.''.
SEC. 1233. SENSE OF SENATE CONCERNING CREDIT WORTHINESS.
The Board of Governors of the Federal Reserve System shall report
to the Senate Committee on Banking, Housing, and Urban Affairs and the
House of Representatives Committee on Banking and Financial Services
within 6 months of enactment of this Act as to whether and how the
location of the residence of an applicant for a credit card is
considered by financial institutions in deciding whether an applicant
should be granted such credit card.
SEC. 1234. JUDICIAL EDUCATION.
The Director of the Administrative Office of the United States
Courts, in consultation with the Director of the Executive Office for
United States Trustees, shall develop materials and conduct such
training as may be useful to courts in implementing this Act, including
the requirements relating to the 707(b) means test and reaffirmations.
SEC. 1235. UNITED STATES TRUSTEE PROGRAM FILING FEE INCREASE.
(a) Rights and Powers of the Trustee.--Section 546(c) of title 11,
United States Code, is amended to read as follows:
``(c)(1) Except as provided in subsection (d) of this
section, and except as provided in subsection (c) of section
507, the rights and powers of the trustee under sections
544(a), 545, 547, and 549 are subject to the right of a seller
of goods that has sold goods to the debtor, in the ordinary
course of the business of the seller, to reclaim such goods if
the debtor has received such goods within 45 days prior to the
commencement of a case under this title, but such seller may
not reclaim any such goods unless the seller demands in writing
the reclamation of such goods--
``(A) before 45 days after the date of receipt of
such goods by the debtor; or
``(B) if such 45-day period expires after the
commencement of the case, before 20 days after the date
of commencement of the case.
``(2) Notwithstanding the failure of the seller to provide
notice in a manner consistent with this subsection, the seller
shall be entitled to assert the rights established in section
503(b)(7) of this title.''.
(b) Administrative Expenses.--Section 503(b) of title 11, United
States Code, is amended--
(1) in paragraph (5), by striking ``and'' at the end;
(2) in paragraph (6), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(7) the invoice price of any goods received by the debtor
within 20 days of the date of filing of a case under this title
where the goods have been sold to the debtor in the ordinary
course of such seller's business.''.
SEC. 1236. PROVIDING REQUESTED TAX DOCUMENTS TO THE COURT.
In the case of an individual under chapter 7, the court shall not
grant a discharge unless requested tax documents have been provided to
the court. In the case of an individual under chapter 11 or 13, the
court shall not confirm a plan of reorganization unless requested tax
documents have been filed with the court.
SEC. 1237. DEFINITION OF FAMILY FARMER.
Section 101(18) of title 11, United States Code, is amended--
(1) in subparagraph (A) by--
(A) striking ``$1,500,000'' and inserting
``$3,000,000''; and
(B) striking ``80'' and inserting ``50''; and
(2) in subparagraph (B)(ii) by striking ``$1,500,000'' and
inserting ``$3,000,000''.
SEC. 1238. ENCOURAGING CREDITWORTHINESS.
(a) Sense of the Congress.--It is the sense of the Congress that--
(1) certain lenders may sometimes offer credit to consumers
indiscriminately, without taking steps to ensure that consumers
are capable of repaying the resulting debt, and in a manner
which may encourage certain consumers to accumulate additional
debt; and
(2) resulting consumer debt may increasingly be a major
contributing factor to consumer insolvency.
(b) Study Required.--The Board of Governors of the Federal Reserve
System (hereafter in this section referred to as the ``Board'') shall
conduct a study of--
(1) consumer credit industry practices of soliciting and
extending credit--
(A) indiscriminately;
(B) without taking steps to ensure that consumers
are capable of repaying the resulting debt; and
(C) in a manner that encourages consumers to
accumulate additional debt; and
(2) the effects of such practices on consumer debt and
insolvency.
(c) Report and Regulations.--Not later than 12 months after the
date of enactment of this Act, the Board--
(1) shall make public a report on its findings with respect
to the indiscriminate solicitation and extension of credit by
the credit industry;
(2) may issue regulations that would require additional
disclosures to consumers; and
(3) may take any other actions, consistent with its
existing statutory authority, that the Board finds necessary to
ensure responsible industrywide practices and to prevent
resulting consumer debt and insolvency.
SEC. 1239. PROPERTY NO LONGER SUBJECT TO REDEMPTION.
Section 541(b) of title 11 of the United States Code is amended by
adding at the end the following:
``(6) any interest of the debtor in property where the
debtor pledged or sold tangible personal property (other than
securities or written or printed evidences of indebtedness or
title) as collateral for a loan or advance of money, where--
``(A) the tangible personal property is in the
possession of the pledgee or transferee;
``(B) the debtor has no obligation to repay the
money, redeem the collateral, or buy back the property
at a stipulated price; and
``(C) neither the debtor nor the trustee have
exercised any right to redeem provided under the
contract or State law, in a timely manner as provided
under State law and section 108(b) of this title.''.
SEC. 1240. AVAILABILITY OF TOLL-FREE ACCESS TO INFORMATION.
Section 127(b)(11) of the Truth in Lending Act (15 U.S.C. 1637(b)),
as added by this Act, is amended by adding at the end the following:
``(K) A creditor that maintains a toll-free telephone
number for the purpose of providing customers with the actual
number of months that it will take to repay an outstanding
balance shall include the following statement on each billing
statement: `Making only the minimum payment will increase the
interest you pay and the time it takes to repay your balance.
For more information, call this toll-free number: ________.'.
''.
TITLE XIII--GENERAL EFFECTIVE DATE; APPLICATION OF AMENDMENTS
SEC. 1301. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.
(a) Effective Date.--Except as provided otherwise in this Act, this
Act and the amendments made by this Act shall take effect 180 days
after the date of enactment of this Act.
(b) Application of Amendments.--The amendments made by this Act
shall not apply with respect to cases commenced under title 11, United
States Code, before the effective date of this Act.
TITLE XIV--FINANCIAL INSTITUTIONS INSOLVENCY IMPROVEMENT
SEC. 1401. SHORT TITLE.
This title may be cited as the ``Financial Institutions Insolvency
Improvement Act of 2000''.
SEC. 1402. TREATMENT OF CERTAIN AGREEMENTS BY CONSERVATORS OR RECEIVERS
OF INSURED DEPOSITORY INSTITUTIONS.
(a) Definition of Qualified Financial Contract.--Section
11(e)(8)(D)(i) of the Federal Deposit Insurance Act (12 U.S.C.
1821(e)(8)(D)(i)) is amended by inserting ``, resolution, or order''
after ``any similar agreement that the Corporation determines by
regulation''.
(b) Definition of Securities Contract.--Section 11(e)(8)(D)(ii) of
the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(ii)) is
amended to read as follows:
``(ii) Securities contract.--The term
`securities contract'--
``(I) means a contract for the
purchase, sale, or loan of a security,
a certificate of deposit, a mortgage
loan, or any interest in a mortgage
loan, a group or index of securities,
certificates of deposit, or mortgage
loans or interests therein (including
any interest therein or based on the
value thereof) or any option on any of
the foregoing, including any option to
purchase or sell any such security,
certificate of deposit, loan, interest,
group or index, or option;
``(II) does not include any
purchase, sale, or repurchase
obligation under a participation in a
commercial mortgage loan unless the
Corporation determines by regulation,
resolution, or order to include any
such agreement within the meaning of
such term;
``(III) means any option entered
into on a national securities exchange
relating to foreign currencies;
``(IV) means the guarantee by or to
any securities clearing agency of any
settlement of cash, securities,
certificates of deposit, mortgage loans
or interests therein, group or index of
securities, certificates of deposit, or
mortgage loans or interests therein
(including any interest therein or
based on the value thereof) or option
on any of the foregoing, including any
option to purchase or sell any such
security, certificate of deposit, loan,
interest, group or index or option;
``(V) means any margin loan;
``(VI) means any other agreement or
transaction that is similar to any
agreement or transaction referred to in
this clause (other than subclause
(II));
``(VII) means any combination of
the agreements or transactions referred
to in this clause (other than subclause
(II));
``(VIII) means any option to enter
into any agreement or transaction
referred to in this clause (other than
subclause (II));
``(IX) means a master agreement
that provides for an agreement or
transaction referred to in subclause
(I), (III), (IV), (V), (VI), (VII), or
(VIII), together with all supplements
to any such master agreement, without
regard to whether the master agreement
provides for an agreement or
transaction that is not a securities
contract under this clause, except that
the master agreement shall be
considered to be a securities contract
under this clause only with respect to
each agreement or transaction under the
master agreement that is referred to in
subclause (I), (III), (IV), (V), (VI),
(VII), or (VIII); and
``(X) means any security agreement
or arrangement or other credit
enhancement related to any agreement or
transaction referred to in this clause
(other than subclause (II)).''.
(c) Definition of Commodity Contract.--Section 11(e)(8)(D)(iii) of
the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(iii)) is
amended to read as follows:
``(iii) Commodity contract.--The term
`commodity contract' means--
``(I) with respect to a futures
commission merchant, a contract for the
purchase or sale of a commodity for
future delivery on, or subject to the
rules of, a contract market or board of
trade;
``(II) with respect to a foreign
futures commission merchant, a foreign
future;
``(III) with respect to a leverage
transaction merchant, a leverage
transaction;
``(IV) with respect to a clearing
organization, a contract for the
purchase or sale of a commodity for
future delivery on, or subject to the
rules of, a contract market or board of
trade that is cleared by such clearing
organization, or commodity option
traded on, or subject to the rules of,
a contract market or board of trade
that is cleared by such clearing
organization;
``(V) with respect to a commodity
options dealer, a commodity option;
``(VI) any other agreement or
transaction that is similar to any
agreement or transaction referred to in
this clause;
``(VII) any combination of the
agreements or transactions referred to
in this clause;
``(VIII) any option to enter into
any agreement or transaction referred
to in this clause;
``(IX) a master agreement that
provides for an agreement or
transaction referred to in subclause
(I), (II), (III), (IV), (V), (VI),
(VII), or (VIII), together with all
supplements to any such master
agreement, without regard to whether
the master agreement provides for an
agreement or transaction that is not a
commodity contract under this clause,
except that the master agreement shall
be considered to be a commodity
contract under this clause only with
respect to each agreement or
transaction under the master agreement
that is referred to in subclause (I),
(II), (III), (IV), (V), (VI), (VII), or
(VIII); or
``(X) a security agreement or
arrangement or other credit enhancement
related to any agreement or transaction
referred to in this clause.''.
(d) Definition of Forward Contract.--Section 11(e)(8)(D)(iv) of the
Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(iv)) is amended
to read as follows:
``(iv) Forward contract.--The term `forward
contract' means--
``(I) a contract (other than a
commodity contract) for the purchase,
sale, or transfer of a commodity or any
similar good, article, service, right,
or interest which is presently or in
the future becomes the subject of
dealing in the forward contract trade,
or product or byproduct thereof, with a
maturity date that is more than 2 days
after the date on which the contract is
entered into, including a repurchase
agreement, reverse repurchase
agreement, consignment, lease, swap,
hedge transaction, deposit, loan,
option, allocated transaction,
unallocated transaction, or any other
similar agreement;
``(II) any combination of
agreements or transactions referred to
in subclauses (I) and (III);
``(III) any option to enter into
any agreement or transaction referred
to in subclause (I) or (II);
``(IV) a master agreement that
provides for an agreement or
transaction referred to in subclauses
(I), (II), or (III), together with all
supplements to any such master
agreement, without regard to whether
the master agreement provides for an
agreement or transaction that is not a
forward contract under this clause,
except that the master agreement shall
be considered to be a forward contract
under this clause only with respect to
each agreement or transaction under the
master agreement that is referred to in
subclause (I), (II), or (III); or
``(V) a security agreement or
arrangement or other credit enhancement
related to any agreement or transaction
referred to in subclause (I), (II),
(III), or (IV).''.
(e) Definition of Repurchase Agreement and Reverse Repurchase
Agreement.--Section 11(e)(8)(D)(v) of the Federal Deposit Insurance Act
(12 U.S.C. 1821(e)(8)(D)(v)) is amended to read as follows:
``(v) Repurchase agreement; reverse
repurchase agreement.--The terms `repurchase
agreement' and `reverse repurchase agreement'--
``(I) mean an agreement, including
related terms, which provides for the
transfer of 1 or more certificates of
deposit, mortgage-related securities
(as such term is defined in the
Securities Exchange Act of 1934),
mortgage loans, interests in mortgage-
related securities or mortgage loans,
eligible bankers' acceptances,
qualified foreign government securities
or securities that are direct
obligations of, or that are fully
guaranteed by, the United States or any
agency of the United States against the
transfer of funds by the transferee of
such certificates of deposit, eligible
bankers' acceptances, securities,
loans, or interests with a simultaneous
agreement by such transferee to
transfer to the transferor thereof
certificates of deposit, eligible
bankers' acceptances, securities,
loans, or interests as described in
this subclause, at a date certain that
is not later than 1 year after the date
of such transfers or on demand, against
the transfer of funds, or any other
similar agreement;
``(II) does not include any
repurchase obligation under a
participation in a commercial mortgage
loan unless the Corporation determines
by regulation, resolution, or order to
include any such participation within
the meaning of such term;
``(III) means any combination of
agreements or transactions referred to
in subclauses (I) and (IV);
``(IV) means any option to enter
into any agreement or transaction
referred to in subclause (I) or (III);
``(V) means a master agreement that
provides for an agreement or
transaction referred to in subclause
(I), (III), or (IV), together with all
supplements to any such master
agreement, without regard to whether
the master agreement provides for an
agreement or transaction that is not a
repurchase agreement under this clause,
except that the master agreement shall
be considered to be a repurchase
agreement under this subclause only
with respect to each agreement or
transaction under the master agreement
that is referred to in subclause (I),
(III), or (IV); and
``(VI) means a security agreement
or arrangement or other credit
enhancement related to any agreement or
transaction referred to in subclause
(I), (III), (IV), or (V).
For purposes of this clause, the term
`qualified foreign government security' means a
security that is a direct obligation of, or
that is fully guaranteed by, the central
government of a member of the Organization for
Economic Cooperation and Development (as
determined by regulation or order adopted by
the appropriate Federal banking authority).''.
(f) Definition of Swap Agreement.--The Federal Deposit Insurance
Act (12 U.S.C. 1821(e)(8)(D)(vi)) is amended to read as follows:
``(vi) Swap agreement.--The term `swap
agreement'--
``(I) means any agreement,
including the terms and conditions
incorporated by reference in any such
agreement, that is--
``(aa) an interest rate
swap, option, future, or
forward agreement, including a
rate floor, rate cap, rate
collar, cross-currency rate
swap, and basis swap;
``(bb) a spot, same day-
tomorrow, tomorrow-next,
forward, or other foreign
exchange or precious metals
agreement;
``(cc) a currency swap,
option, future, or forward
agreement;
``(dd) an equity index or
equity swap, option, future, or
forward agreement;
``(ee) a debt index or debt
swap, option, future, or
forward agreement;
``(ff) a credit spread or
credit swap, option, future, or
forward agreement; or
``(gg) a commodity index or
commodity swap, option, future,
or forward agreement;
``(II) means any agreement or
transaction that is similar to any
other agreement or transaction referred
to in this clause, that is presently,
or in the future becomes, regularly
entered into in the swap market
(including terms and conditions
incorporated by reference in such
agreement), and that is a forward,
swap, future, or option on 1 or more
rates, currencies, commodities, equity
securities or other equity instruments,
debt securities or other debt
instruments, or economic indices or
measures of economic risk or value;
``(III) means any combination of
agreements or transactions referred to
in this clause;
``(IV) means any option to enter
into any agreement or transaction
referred to in this clause;
``(V) means a master agreement that
provides for an agreement or
transaction referred to in subclause
(I), (II), (III), or (IV), together
with all supplements to any such master
agreement, without regard to whether
the master agreement contains an
agreement or transaction that is not a
swap agreement under this clause,
except that the master agreement shall
be considered to be a swap agreement
under this clause only with respect to
each agreement or transaction under the
master agreement that is referred to in
subclause (I), (II), (III), or (IV);
``(VI) means any security agreement
or arrangement or other credit
enhancement related to any agreements
or transactions referred to in
subparagraph (I), (II), (III), or (IV);
and
``(VII) is applicable for purposes
of this Act only, and shall not be
construed or applied so as to challenge
or affect the characterization,
definition, or treatment of any swap
agreement under any other statute,
regulation, or rule, including the
Securities Act of 1933, the Securities
Exchange Act of 1934, the Public
Utility Holding Company Act of 1935,
the Trust Indenture Act of 1939, the
Investment Company Act of 1940, the
Investment Advisers Act of 1940, the
Securities Investor Protection Act of
1970, the Commodity Exchange Act, and
the regulations promulgated by the
Securities and Exchange Commission or
the Commodity Futures Trading
Commission.''.
(g) Definition of Transfer.--Section 11(e)(8)(D)(viii) of the
Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(viii)) is
amended to read as follows:
``(viii) Transfer.--The term `transfer'
means every mode, direct or indirect, absolute
or conditional, voluntary or involuntary, of
disposing of or parting with property or with
an interest in property, including retention of
title as a security interest and foreclosure of
the depository institutions's equity of
redemption.''.
(h) Treatment of Qualified Financial Contracts.--Section 11(e)(8)
of the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)) is
amended--
(1) in subparagraph (A), by striking ``paragraph (10)'' and
inserting ``paragraphs (9) and (10)'';
(2) in subparagraph (A)(i), by striking ``to cause the
termination or liquidation'' and inserting ``such person has to
cause the termination, liquidation, or acceleration'';
(3) by striking clause (ii) of subparagraph (A) and
inserting the following:
``(ii) any right under any security
agreement or arrangement or other credit
enhancement related to 1 or more qualified
financial contracts described in clause (i);
or''; and
(4) by striking clause (ii) of subparagraph (E) and
inserting the following:
``(ii) any right under any security
agreement or arrangement or other credit
enhancement related to 1 or more qualified
financial contracts described in clause (i);
or''.
(i) Avoidance of Transfers.--Section 11(e)(8)(C)(i) of the Federal
Deposit Insurance Act (12 U.S.C. 1821(e)(8)(C)(i)) is amended by
inserting ``section 5242 of the Revised Statutes (12 U.S.C. 91), or any
other Federal or State law relating to the avoidance of preferential or
fraudulent transfers,'' before ``the Corporation''.
SEC. 1403. AUTHORITY OF THE CORPORATION WITH RESPECT TO FAILED AND
FAILING INSTITUTIONS.
(a) In General.--Section 11(e)(8) of the Federal Deposit Insurance
Act (12 U.S.C. 1821(e)(8)) is amended--
(1) in subparagraph (E), by striking ``other than paragraph
(12) of this subsection, subsection (d)(9)'' and inserting
``other than subsections (d)(9) and (e)(10)''; and
(2) by adding at the end the following:
``(F) Clarification.--No provision of law shall be
construed as limiting the right or power of the
Corporation, or authorizing any court or agency to
limit or delay, in any manner, the right or power of
the Corporation to transfer any qualified financial
contract in accordance with paragraphs (9) and (10) or
to disaffirm or repudiate any such contract in
accordance with subsection (e)(1).
``(G) Walkaway clauses not effective.--
``(i) In general.--Notwithstanding the
provisions of subparagraphs (A) and (E), and
sections 403 and 404 of the Federal Deposit
Insurance Corporation Improvement Act of 1991,
no walkaway clause shall be enforceable in a
qualified financial contract of an insured
depository institution in default.
``(ii) Walkaway clause defined.--For
purposes of this subparagraph, the term
`walkaway clause' means a provision in a
qualified financial contract that, after
calculation of a value of a party's position or
an amount due to or from 1 of the parties in
accordance with its terms upon termination,
liquidation, or acceleration of the qualified
financial contract, either does not create a
payment obligation of a party or extinguishes a
payment obligation of a party in whole or in
part solely because of such party's status as a
nondefaulting party.''.
(b) Technical and Conforming Amendment.--Section 11(e)(12)(A) of
the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(12)(A)) is amended
by inserting ``or the exercise of rights or powers by'' after ``the
appointment of''.
SEC. 1404. AMENDMENTS RELATING TO TRANSFERS OF QUALIFIED FINANCIAL
CONTRACTS.
(a) Transfers of Qualified Financial Contracts to Financial
Institutions.--Section 11(e)(9) of the Federal Deposit Insurance Act
(12 U.S.C. 1821(e)(9)) is amended to read as follows:
``(9) Transfer of qualified financial contracts.--
``(A) In general.--In making any transfer of assets
or liabilities of a depository institution in default
which includes any qualified financial contract, the
conservator or receiver for such depository institution
shall either--
``(i) transfer to 1 financial institution,
other than a financial institution for which a
conservator, receiver, trustee in bankruptcy,
or other legal custodian has been appointed or
which is otherwise the subject of a bankruptcy
or insolvency proceeding--
``(I) all qualified financial
contracts between any person or any
affiliate of such person and the
depository institution in default;
``(II) all claims of such person or
any affiliate of such person against
such depository institution under any
such contract (other than any claim
which, under the terms of any such
contract, is subordinated to the claims
of general unsecured creditors of such
institution);
``(III) all claims of such
depository institution against such
person or any affiliate of such person
under any such contract; and
``(IV) all property securing or any
other credit enhancement for any
contract described in subclause (I) or
any claim described in subclause (II)
or (III) under any such contract; or
``(ii) transfer none of the qualified
financial contracts, claims, property, or other
credit enhancement referred to in clause (i)
(with respect to such person and any affiliate
of such person).
``(B) Transfer to foreign bank, foreign financial
institution, or branch or agency of a foreign bank or
financial institution.--In transferring any qualified
financial contract and related claims and property
pursuant to subparagraph (A)(i), the conservator or
receiver for the depository institution shall not make
such transfer to a foreign bank, financial institution
organized under the laws of a foreign country, or a
branch or agency of a foreign bank or financial
institution unless, under the law applicable to such
bank, financial institution, branch, or agency, to the
qualified financial contract, and to any netting
contract, any security agreement or arrangement or
other credit enhancement related to 1 or more qualified
financial contracts the contractual rights of the
parties to such qualified financial contracts, netting
contracts, security agreements, or arrangements, or
other credit enhancements are enforceable substantially
to the same extent as permitted under this section.
``(C) Transfer of contract subject to the rules of
a clearing organization.--If a conservator or receiver
transfers any qualified financial contract and related
claims, property, and credit enhancements pursuant to
subparagraph (A)(i) and such contract is subject to the
rules of a clearing organization, the clearing
organization shall not be required to accept the
transferee as a member by virtue of the transfer.
``(D) Definition.--For purposes of this paragraph,
the term `financial institution' means a broker or
dealer, a depository institution, a futures commission
merchant, or any other institution that the Corporation
determines, by regulation, to be a financial
institution.''.
(b) Notice to Qualified Financial Contract Counterparties.--Section
11(e)(10)(A) of the Federal Deposit Insurance Act (12 U.S.C.
1821(e)(10)(A)) is amended by striking the flush material immediately
following clause (ii) and inserting the following:
``the conservator or receiver shall notify any person
who is a party to any such contract of such transfer by
5:00 p.m. (eastern time) on the business day following
the date of the appointment of the receiver in the case
of a receivership, or the business day following such
transfer in the case of a conservatorship.''.
(c) Rights Against Receiver and Treatment of Bridge Banks.--Section
11(e)(10) of the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(10))
is amended--
(1) by redesignating subparagraph (B) as subparagraph (D);
and
(2) by inserting after subparagraph (A) the following:
``(B) Certain rights not enforceable.--
``(i) Receivership.--A person who is a
party to a qualified financial contract with an
insured depository institution may not exercise
any right such person has to terminate,
liquidate, or net such contract under paragraph
(8)(A) or section 403 or 404 of the Federal
Deposit Insurance Corporation Improvement Act
of 1991, solely by reason of or incidental to
the appointment of a receiver for the
depository institution (or the insolvency or
financial condition of the depository
institution for which the receiver has been
appointed)--
``(I) until 5:00 p.m. (eastern
time) on the business day following the
date of the appointment of the
receiver; or
``(II) after the person has
received notice that the contract has
been transferred pursuant to paragraph
(9)(A).
``(ii) Conservatorship.--A person who is a
party to a qualified financial contract with an
insured depository institution may not exercise
any right such person has to terminate,
liquidate, or net such contract under paragraph
(8)(E) or section 403 or 404 of the Federal
Deposit Insurance Corporation Improvement Act
of 1991, solely by reason of or incidental to
the appointment of a conservator for the
depository institution (or the insolvency or
financial condition of the depository
institution for which the conservator has been
appointed).
``(iii) Notice.--For purposes of this
paragraph, the Corporation as receiver or
conservator of an insured depository
institution shall be deemed to have notified a
person who is a party to a qualified financial
contract with such depository institution if
the Corporation has taken steps reasonably
calculated to provide notice to such person by
the time specified in subparagraph (A).
``(C) Treatment of bridge banks.--A financial
institution for which a conservator, receiver, trustee
in bankruptcy, or other legal custodian has been
appointed or that is otherwise the subject of a
bankruptcy or insolvency proceeding for purposes of
subsection (e)(9) does not include--
``(i) a bridge bank; or
``(ii) a depository institution organized
by the Corporation, for which a conservator is
appointed either--
``(I) immediately upon the
organization of the institution; or
``(II) at the time of a purchase
and assumption transaction between such
institution and the Corporation as
receiver for a depository institution
in default.''.
SEC. 1405. AMENDMENTS RELATING TO DISAFFIRMANCE OR REPUDIATION OF
QUALIFIED FINANCIAL CONTRACTS.
Section 11(e) of the Federal Deposit Insurance Act (12 U.S.C.
1821(e)) is amended--
(1) by redesignating paragraphs (11) through (15) as
paragraphs (12) through (16), respectively;
(2) in paragraph (8)(C)(i), by striking ``(11)'' and
inserting ``(12)'';
(3) in paragraph (8)(E), by striking ``(12)'' and inserting
``(13)''; and
(4) by inserting after paragraph (10) the following:
``(11) Disaffirmance or repudiation of qualified financial
contracts.--In exercising the right to disaffirm or repudiate
with respect to any qualified financial contract to which an
insured depository institution is a party, the conservator or
receiver for such institution shall either--
``(A) disaffirm or repudiate all qualified
financial contracts between--
``(i) any person or any affiliate of such
person; and
``(ii) the depository institution in
default; or
``(B) disaffirm or repudiate none of the qualified
financial contracts referred to in subparagraph (A)
(with respect to such person or any affiliate of such
person).''.
SEC. 1406. CLARIFYING AMENDMENT RELATING TO MASTER AGREEMENTS.
Section 11(e)(8)(D)(vii) of the Federal Deposit Insurance Act (12
U.S.C. 1821(e)(8)(D)(vii)) is amended to read as follows:
``(vii) Treatment of master agreement as 1
agreement.--Any master agreement for any
contract or agreement described in any
preceding clause of this subparagraph (or any
master agreement for such master agreement or
agreements), together with all supplements to
such master agreement, shall be treated as a
single agreement and a single qualified
financial contract. If a master agreement
contains provisions relating to agreements or
transactions that are not themselves qualified
financial contracts, the master agreement shall
be deemed to be a qualified financial contract
only with respect to those transactions that
are themselves qualified financial
contracts.''.
SEC. 1407. FEDERAL DEPOSIT INSURANCE CORPORATION IMPROVEMENT ACT OF
1991.
(a) Definitions.--Section 402 of the Federal Deposit Insurance
Corporation Improvement Act of 1991 (12 U.S.C. 4402) is amended--
(1) in paragraph (6)--
(A) by redesignating subparagraphs (B) through (D)
as subparagraphs (C) through (E), respectively;
(B) by inserting after subparagraph (A) the
following:
``(B) an uninsured national bank or an uninsured
State bank that is a member of the Federal Reserve
System, if the national bank or State member bank is
not eligible to make application to become an insured
bank under section 5 of the Federal Deposit Insurance
Act;''; and
(C) by striking subparagraph (C) (as redesignated)
and inserting the following:
``(C) a branch or agency of a foreign bank, a
foreign bank and any branch or agency of the foreign
bank, or the foreign bank that established the branch
or agency, as those terms are defined in section 1(b)
of the International Banking Act of 1978;'';
(2) in paragraph (11), by inserting before the period ``and
any other clearing organization with which such clearing
organization has a netting contract'';
(3) in paragraph (14)(A), by striking clause (i) and
inserting the following:
``(i) means a contract or agreement between
2 or more financial institutions, clearing
organizations, or members that provides for
netting present or future payment obligations
or payment entitlements (including liquidation
or closeout values relating to such obligations
or entitlements) among the parties to the
agreement; and''; and
(4) by adding at the end the following:
``(15) Payment.--The term `payment' means a payment of
United States dollars, another currency, or a composite
currency, and a noncash delivery, including a payment or
delivery to liquidate an unmatured obligation.''.
(b) Enforceability of Bilateral Netting Contracts.--Section 403 of
the Federal Deposit Insurance Corporation Improvement Act of 1991 (12
U.S.C. 4403) is amended--
(1) by striking subsection (a) and inserting the following:
``(a) General Rule.--Notwithstanding any other provision of Federal
or State law (other than paragraphs (8)(E), (8)(F), and (10)(B) of
section 11(e) of the Federal Deposit Insurance Act or any order
authorized under section 5(b)(2) of the Securities Investor Protection
Act of 1970, the covered contractual payment obligations and the
covered contractual payment entitlements between any 2 financial
institutions shall be netted in accordance with, and subject to the
conditions of, the terms of any applicable netting contract (except as
provided in section 561(b)(2) of title 11, United States Code).''; and
(2) by adding at the end the following:
``(f) Enforceability of Security Agreements.--The provisions of any
security agreement or arrangement or other credit enhancement related
to 1 or more netting contracts between any 2 financial institutions
shall be enforceable in accordance with their terms (except as provided
in section 561(b)(2) of title 11, United States Code) and shall not be
stayed, avoided, or otherwise limited by any State or Federal law
(other than paragraphs (8)(E), (8)(F), and (10)(B) of section 11(e) of
the Federal Deposit Insurance Act and section 5(b)(2) of the Securities
Investor Protection Act of 1970).''.
(c) Enforceability of Clearing Organization Netting Contracts.--
Section 404 of the Federal Deposit Insurance Corporation Improvement
Act of 1991 (12 U.S.C. 4404) is amended--
(1) by striking subsection (a) and inserting the following:
``(a) General Rule.--Notwithstanding any other provision of Federal
or State law (other than paragraphs (8)(E), (8)(F), and (10)(B) of
section 11(e) of the Federal Deposit Insurance Act or any order
authorized under section 5(b)(2) of the Securities Investor Protection
Act of 1970) the covered contractual payment obligations and the
covered contractual payment entitlements of a member of a clearing
organization to and from all other members of the clearing organization
shall be netted in accordance with, and subject to the conditions of,
the terms of any applicable netting contract (except as provided in
section 561(b)(2) of title 11, United States Code).''; and
(2) by adding at the end the following:
``(h) Enforceability of Security Agreements.--The provisions of any
security agreement or arrangement or other credit enhancement related
to 1 or more netting contracts between any 2 members of a clearing
organization shall be enforceable in accordance with their terms
(except as provided in section 561(b)(2) of title 11, United States
Code) and shall not be stayed, avoided, or otherwise limited by any
State or Federal law (other than paragraphs (8)(E), (8)(F), and (10)(B)
of section 11(e) of the Federal Deposit Insurance Act and section
5(b)(2) of the Securities Investor Protection Act of 1970).''.
(d) Enforceability of Contracts With Uninsured National Banks and
Uninsured Federal Branches and Agencies.--The Federal Deposit Insurance
Corporation Improvement Act of 1991 (12 U.S.C. 4401 et seq.) is amended
by adding at the end the following:
``SEC. 408. TREATMENT OF CONTRACTS WITH UNINSURED NATIONAL BANKS AND
UNINSURED FEDERAL BRANCHES AND AGENCIES.
``(a) In General.--Notwithstanding any other provision of law,
paragraphs (8), (9), (10), and (11) of section 11(e) of the Federal
Deposit Insurance Act shall apply to an uninsured national bank or
uninsured Federal branch or Federal agency, except that for such
purpose--
``(1) any reference to the `Corporation as receiver' or
`the receiver or the Corporation' shall refer to the receiver
of an uninsured national bank or uninsured Federal branch or
Federal agency appointed by the Comptroller of the Currency;
``(2) any reference to the `Corporation' (other than in
section 11(e)(8)(D) of that Act), the `Corporation, whether
acting as such or as conservator or receiver', a `receiver', or
a `conservator' shall refer to the receiver or conservator of
an uninsured national bank or uninsured Federal branch or
Federal agency appointed by the Comptroller of the Currency;
and
``(3) any reference to an `insured depository institution'
or `depository institution' shall refer to an uninsured
national bank or an uninsured Federal branch or Federal agency.
``(b) Liability.--The liability of a receiver or conservator of an
uninsured national bank or uninsured Federal branch or agency shall be
determined in the same manner and subject to the same limitations that
apply to receivers and conservators of insured depository institutions
under section 11(e) of the Federal Deposit Insurance Act.
``(c) Regulatory Authority.--
``(1) In general.--The Comptroller of the Currency, in
consultation with the Federal Deposit Insurance Corporation,
may promulgate regulations to implement this section.
``(2) Specific requirement.--In promulgating regulations to
implement this section, the Comptroller of the Currency shall
ensure that the regulations generally are consistent with the
regulations and policies of the Federal Deposit Insurance
Corporation adopted pursuant to the Federal Deposit Insurance
Act.
``(d) Definitions.--For purposes of this section, the terms
`Federal branch', `Federal agency', and `foreign bank' have the same
meanings as in section 1(b) of the International Banking Act of
1978.''.
SEC. 1408. RECORDKEEPING REQUIREMENTS.
Section 11(e)(8) of the Federal Deposit Insurance Act (12 U.S.C.
1821(e)(8)) is amended by adding at the end the following:
``(H) Recordkeeping requirements.--The Corporation,
in consultation with the appropriate Federal banking
agencies, may prescribe regulations requiring more
detailed recordkeeping with respect to qualified
financial contracts (including market valuations) by
insured depository institutions.''.
SEC. 1409. EXEMPTIONS FROM CONTEMPORANEOUS EXECUTION REQUIREMENT.
Section 13(e)(2) of the Federal Deposit Insurance Act (12 U.S.C.
1823(e)(2)) is amended to read as follows:
``(2) Exemptions from contemporaneous execution
requirement.--
``(A) In general.--An agreement described in
subparagraph (B) shall not be deemed to be invalid
pursuant to paragraph (1)(B) solely on the basis--
``(i) that the agreement was not executed
contemporaneously with the acquisition of the
collateral; or
``(ii) of any pledge, delivery, or
substitution of the collateral made in
accordance with the agreement.
``(B) Agreement described.--An agreement is
described in this subparagraph if it is an agreement to
provide for the lawful collateralization of--
``(i) deposits of, or other credit
extension by, a Federal, State, or local
governmental entity, or of any depositor
referred to in section 11(a)(2), including an
agreement to provide collateral in lieu of a
surety bond;
``(ii) securities deposited under section
345(b)(2) of title 11, United States Code;
``(iii) extensions of credit, including an
overdraft, from a Federal reserve bank or
Federal home loan bank; or
``(iv) 1 or more qualified financial
contracts (as defined in section
11(e)(8)(D)).''.
SEC. 1410. SIPC STAY.
Section 5(b)(2) of the Securities Investor Protection Act of 1970
(15 U.S.C. 78eee(b)(2)) is amended by adding at the end the following:
``(C) Exception from stay.--
``(i) In general.--Notwithstanding section
362 of title 11, United States Code, neither
the filing of an application under subsection
(a)(3) of this section nor any order or decree
obtained by SIPC from the court shall operate
as a stay of any contractual right of a
creditor to liquidate, terminate, or accelerate
a securities contract, commodity contract,
forward contract, repurchase agreement, swap
agreement, or master netting agreement, each as
defined in title 11, United States Code, to
offset or net termination values, payment
amounts, or other transfer obligations arising
under or in connection with 1 or more of such
contracts or agreements, or to foreclose on any
cash collateral pledged by the debtor, whether
or not with respect to 1 or more of such
contracts or agreements.
``(ii) Stays on foreclosure.--
Notwithstanding clause (i), an application,
order, or decree described therein may operate
as a stay of the foreclosure on securities
collateral pledged by the debtor, whether or
not with respect to 1 or more of such contracts
or agreements, securities sold by the debtor
under a repurchase agreement or securities lent
under a securities lending agreement.
``(iii) Definition.--As used in this
section, the term `contractual right'
includes--
``(I) a right set forth in a rule
or bylaw of a national securities
exchange, a national securities
association, or a securities clearing
agency;
``(II) a right set forth in a bylaw
of a clearing organization or contract
market or in a resolution of the
governing board thereof; and
``(III) a right, whether or not in
writing, arising under common law,
under law merchant, or by reason of
normal business practice.''.
SEC. 1411. FEDERAL RESERVE COLLATERAL REQUIREMENTS.
Section 16 of the Federal Reserve Act (12 U.S.C. 412) is amended in
the third sentence of the second undesignated paragraph, by striking
``acceptances acquired under section 13 of this Act'' and inserting
``acceptances acquired under section 10A, 10B, 13, or 13A''.
SEC. 1412. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.
(a) Severability.--If any provision of this title or any amendment
made by this title, or the application of any such provision or
amendment to any person or circumstance, is held to be
unconstitutional, the remaining provisions of and amendments made by
this title and the application of such other provisions and amendments
to any person or circumstance shall not be affected thereby.
(b) Effective Date.--This title and the amendments made by this
title shall take effect on the date of enactment of this Act.
(c) Application of Amendments.--The amendments made by this title
shall apply with respect to cases commenced or appointments made under
any Federal or State law after the date of enactment of this Act, but
shall not apply with respect to cases commenced or appointments made
under any Federal or State law before the date of enactment of this
Act.
TITLE XV--METHAMPHETAMINE AND OTHER CONTROLLED SUBSTANCES
SEC. 1501. SHORT TITLE.
This title may be cited as the ``Methamphetamine Anti-Proliferation
Act of 2000''.
Subtitle A--Methamphetamine Production, Trafficking, and Abuse
CHAPTER 1--CRIMINAL PENALTIES
SEC. 1511. ENHANCED PUNISHMENT OF AMPHETAMINE LABORATORY OPERATORS.
(a) Amendment to Federal Sentencing Guidelines.--Pursuant to its
authority under section 994(p) of title 28, United States Code, the
United States Sentencing Commission shall amend the Federal sentencing
guidelines in accordance with this section with respect to any offense
relating to the manufacture, importation, exportation, or trafficking
in amphetamine (including an attempt or conspiracy to do any of the
foregoing) in violation of--
(1) the Controlled Substances Act (21 U.S.C. 801 et seq.);
(2) the Controlled Substances Import and Export Act (21
U.S.C. 951 et seq.); or
(3) the Maritime Drug Law Enforcement Act (46 U.S.C. App.
1901 et seq.).
(b) General Requirement.--In carrying out this section, the United
States Sentencing Commission shall, with respect to each offense
described in subsection (a) relating to amphetamine--
(1) review and amend its guidelines to provide for
increased penalties such that those penalties are comparable to
the base offense level for methamphetamine; and
(2) take any other action the Commission considers
necessary to carry out this subsection.
(c) Additional Requirements.--In carrying out this section, the
United States Sentencing Commission shall ensure that the sentencing
guidelines for offenders convicted of offenses described in subsection
(a) reflect the heinous nature of such offenses, the need for
aggressive law enforcement action to fight such offenses, and the
extreme dangers associated with unlawful activity involving
amphetamines, including--
(1) the rapidly growing incidence of amphetamine abuse and
the threat to public safety that such abuse poses;
(2) the high risk of amphetamine addiction;
(3) the increased risk of violence associated with
amphetamine trafficking and abuse; and
(4) the recent increase in the illegal importation of
amphetamine and precursor chemicals.
(d) Emergency Authority to Sentencing Commission.--The United
States Sentencing Commission shall promulgate amendments pursuant to
this section as soon as practicable after the date of the enactment of
this Act in accordance with the procedure set forth in section 21(a) of
the Sentencing Act of 1987 (Public Law 100-182), as though the
authority under that Act had not expired.
SEC. 1512. ENHANCED PUNISHMENT OF AMPHETAMINE OR METHAMPHETAMINE
LABORATORY OPERATORS.
(a) Federal Sentencing Guidelines.--
(1) In general.--Pursuant to its authority under section
994(p) of title 28, United States Code, the United States
Sentencing Commission shall amend the Federal sentencing
guidelines in accordance with paragraph (2) with respect to any
offense relating to the manufacture, attempt to manufacture, or
conspiracy to manufacture amphetamine or methamphetamine in
violation of--
(A) the Controlled Substances Act (21 U.S.C. 801 et
seq.);
(B) the Controlled Substances Import and Export Act
(21 U.S.C. 951 et seq.); or
(C) the Maritime Drug Law Enforcement Act (46
U.S.C. App. 1901 et seq.).
(2) Requirements.--In carrying out this paragraph, the
United States Sentencing Commission shall--
(A) if the offense created a substantial risk of
harm to human life (other than a life described in
subparagraph (B)) or the environment, increase the base
offense level for the offense--
(i) by not less than 3 offense levels above
the applicable level in effect on the date of
the enactment of this Act; or
(ii) if the resulting base offense level
after an increase under clause (i) would be
less than level 27, to not less than level 27;
or
(B) if the offense created a substantial risk of
harm to the life of a minor or incompetent, increase
the base offense level for the offense--
(i) by not less than 6 offense levels above
the applicable level in effect on the date of
the enactment of this Act; or
(ii) if the resulting base offense level
after an increase under clause (i) would be
less than level 30, to not less than level 30.
(3) Emergency authority to sentencing commission.--The
United States Sentencing Commission shall promulgate amendments
pursuant to this subsection as soon as practicable after the
date of enactment of this Act in accordance with the procedure
set forth in section 21(a) of the Sentencing Act of 1987
(Public Law 100-182), as though the authority under that Act
had not expired.
(b) Effective Date.--The amendments made pursuant to this section
shall apply with respect to any offense occurring on or after the date
that is 60 days after the date of enactment of this Act.
SEC. 1513. MANDATORY RESTITUTION FOR VIOLATIONS OF CONTROLLED
SUBSTANCES ACT AND CONTROLLED SUBSTANCES IMPORT AND
EXPORT ACT RELATING TO AMPHETAMINE AND METHAMPHETAMINE.
(a) Mandatory Restitution.--Section 413(q) of the Controlled
Substances Act (21 U.S.C. 853(q)) is amended--
(1) in the matter preceding paragraph (1), by striking
``may'' and inserting ``shall'';
(2) by inserting ``amphetamine or'' before
``methamphetamine'' each place it appears;
(3) in paragraph (2)--
(A) by inserting ``, the State or local government
concerned, or both the United States and the State or
local government concerned'' after ``United States''
the first place it appears; and
(B) by inserting ``or the State or local government
concerned, as the case may be,'' after ``United
States'' the second place it appears; and
(4) in paragraph (3), by striking ``section 3663 of title
18, United States Code'' and inserting ``section 3663A of title
18, United States Code''.
(b) Deposit of Amounts in Department of Justice Assets Forfeiture
Fund.--Section 524(c)(4) of title 28, United States Code, is amended--
(1) by striking ``and'' at the end of subparagraph (B);
(2) by striking the period at the end of subparagraph (C)
and inserting ``; and''; and
(3) by adding at the end the following:
``(D) all amounts collected--
``(i) by the United States pursuant to a
reimbursement order under paragraph (2) of section
413(q) of the Controlled Substances Act (21 U.S.C.
853(q)); and
``(ii) pursuant to a restitution order under
paragraph (1) or (3) of section 413(q) of the
Controlled Substances Act for injuries to the United
States.''.
(c) Clarification of Certain Orders of Restitution.--Section
3663(c)(2)(B) of title 18, United States Code, is amended by inserting
``which may be'' after ``the fine''.
(d) Expansion of Applicability of Mandatory Restitution.--Section
3663A(c)(1)(A)(ii) of title 18, United States Code, is amended by
inserting ``or under section 416(a) of the Controlled Substances Act
(21 U.S.C. 856(a)),'' after ``under this title,''.
(e) Treatment of Illicit Substance Manufacturing Operations as
Crimes Against Property.--Section 416 of the Controlled Substances Act
(21 U.S.C. 856) is amended by adding at the end the following new
subsection:
``(c) A violation of subsection (a) shall be considered an offense
against property for purposes of section 3663A(c)(1)(A)(ii) of title
18, United States Code.''.
SEC. 1514. METHAMPHETAMINE PARAPHERNALIA.
Section 422(d) of the Controlled Substances Act (21 U.S.C. 863(d))
is amended in the matter preceding paragraph (1) by inserting
``methamphetamine,'' after ``PCP,''.
CHAPTER 2--ENHANCED LAW ENFORCEMENT
SEC. 1521. ENVIRONMENTAL HAZARDS ASSOCIATED WITH ILLEGAL MANUFACTURE OF
AMPHETAMINE AND METHAMPHETAMINE.
(a) Use of Amounts or Department of Justice Assets Forfeiture
Fund.--Section 524(c)(1)(E) of title 28, United States Code, is
amended--
(1) by inserting ``(i) for'' before ``disbursements'';
(2) by inserting ``and'' after the semicolon; and
(3) by adding at the end the following:
``(ii) for payment for--
``(I) costs incurred by or on behalf of the
Department of Justice in connection with the removal,
for purposes of Federal forfeiture and disposition, of
any hazardous substance or pollutant or contaminant
associated with the illegal manufacture of amphetamine
or methamphetamine; and
``(II) costs incurred by or on behalf of a State or
local government in connection with such removal in any
case in which such State or local government has
assisted in a Federal prosecution relating to
amphetamine or methamphetamine, to the extent such
costs exceed equitable sharing payments made to such
State or local government in such case;''.
(b) Grants Under Drug Control and System Improvement Grant
Program.--Section 501(b)(3) of the Omnibus Crime Control and Safe
Streets Act of 1968 is amended by inserting before the semicolon the
following: ``and to remove any hazardous substance or pollutant or
contaminant associated with the illegal manufacture of amphetamine or
methamphetamine''.
(c) Amounts Supplement and Not Supplant.--
(1) Assets forfeiture fund.--Any amounts made available
from the Department of Justice Assets Forfeiture Fund in a
fiscal year by reason of the amendment made by subsection (a)
shall supplement, and not supplant, any other amounts made
available to the Department of Justice in such fiscal year from
other sources for payment of costs described in section
524(c)(1)(E)(ii) of title 28, United States Code, as so
amended.
(2) Grant program.--Any amounts made available in a fiscal
year under the grant program under section 501(b)(3) of the
Omnibus Crime Control and Safe Streets Act of 1968 for the
removal of hazardous substances or pollutants or contaminants
associated with the illegal manufacture of amphetamine or
methamphetamine by reason of the amendment made by subsection
(b) shall supplement, and not supplant, any other amounts made
available in such fiscal year from other sources for such
removal.
SEC. 1522. REDUCTION IN RETAIL SALES TRANSACTION THRESHOLD FOR NON-SAFE
HARBOR PRODUCTS CONTAINING PSEUDOEPHEDRINE OR
PHENLYPROPANOLAMINE.
(a) Reduction in Transaction Threshold.--Section 102(39)(A)(iv)(II)
of the Controlled Substances Act (21 U.S.C. 802(39)(A)(iv)(II) is
amended--
(1) by striking ``24 grams'' both places it appears and
inserting ``9 grams''; and
(2) by inserting before the semicolon at the end the
following: ``and sold in package sizes of not more than 3 grams
of pseudoephedrine base or 3 grams of phenylpropanolamine
base''.
(b) Effective Date.--The amendments made by subsection (a) shall
take effect one year after the date of the enactment of this Act.
SEC. 1523. TRAINING FOR DRUG ENFORCEMENT ADMINISTRATION AND STATE AND
LOCAL LAW ENFORCEMENT PERSONNEL RELATING TO CLANDESTINE
LABORATORIES.
(a) In General.--
(1) Requirement.--The Administrator of the Drug Enforcement
Administration shall carry out the programs described in
subsection (b) with respect to the law enforcement personnel of
States and localities determined by the Administrator to have
significant levels of methamphetamine-related or amphetamine-
related crime or projected by the Administrator to have the
potential for such levels of crime in the future.
(2) Duration.--The duration of any program under that
subsection may not exceed 3 years.
(b) Covered Programs.--The programs described in this subsection
are as follows:
(1) Advanced mobile clandestine laboratory training
teams.--A program of advanced mobile clandestine laboratory
training teams, which shall provide information and training to
State and local law enforcement personnel in techniques
utilized in conducting undercover investigations and conspiracy
cases, and other information designed to assist in the
investigation of the illegal manufacturing and trafficking of
amphetamine and methamphetamine.
(2) Basic clandestine laboratory certification training.--A
program of basic clandestine laboratory certification training,
which shall provide information and training--
(A) to Drug Enforcement Administration personnel
and State and local law enforcement personnel for
purposes of enabling such personnel to meet any
certification requirements under law with respect to
the handling of wastes created by illegal amphetamine
and methamphetamine laboratories; and
(B) to State and local law enforcement personnel
for purposes of enabling such personnel to provide the
information and training covered by subparagraph (A) to
other State and local law enforcement personnel.
(3) Clandestine laboratory recertification and awareness
training.--A program of clandestine laboratory recertification
and awareness training, which shall provide information and
training to State and local law enforcement personnel for
purposes of enabling such personnel to provide recertification
and awareness training relating to clandestine laboratories to
additional State and local law enforcement personnel.
(c) Authorization of Appropriations.--There are authorized to be
appropriated for each of fiscal years 2000, 2001, and 2002 amounts as
follows:
(1) $1,500,000 to carry out the program described in
subsection (b)(1).
(2) $3,000,000 to carry out the program described in
subsection (b)(2).
(3) $1,000,000 to carry out the program described in
subsection (b)(3).
SEC. 1524. COMBATING METHAMPHETAMINE AND AMPHETAMINE IN HIGH INTENSITY
DRUG TRAFFICKING AREAS.
(a) In General.--
(1) In general.--The Director of National Drug Control
Policy shall use amounts available under this section to combat
the trafficking of methamphetamine and amphetamine in areas
designated by the Director as high intensity drug trafficking
areas.
(2) Activities.--In meeting the requirement in paragraph
(1), the Director shall provide funds for--
(A) employing additional Federal law enforcement
personnel, or facilitating the employment of additional
State and local law enforcement personnel, including
agents, investigators, prosecutors, laboratory
technicians, chemists, investigative assistants, and
drug-prevention specialists; and
(B) such other activities as the Director considers
appropriate.
(b) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section--
(1) $15,000,000 for fiscal year 2000; and
(2) such sums as may be necessary for each of fiscal years
2001 through 2004.
(c) Apportionment of Funds.--
(1) Factors in apportionment.--The Director shall apportion
amounts appropriated for a fiscal year pursuant to the
authorization of appropriations in subsection (b) for
activities under subsection (a) among and within areas
designated by the Director as high intensity drug trafficking
areas based on the following factors:
(A) The number of methamphetamine manufacturing
facilities and amphetamine manufacturing facilities
discovered by Federal, State, or local law enforcement
officials in the previous fiscal year.
(B) The number of methamphetamine prosecutions and
amphetamine prosecutions in Federal, State, or local
courts in the previous fiscal year.
(C) The number of methamphetamine arrests and
amphetamine arrests by Federal, State, or local law
enforcement officials in the previous fiscal year.
(D) The amounts of methamphetamine, amphetamine, or
listed chemicals (as that term is defined in section
102(33) of the Controlled Substances Act (21 U.S.C.
802(33)) seized by Federal, State, or local law
enforcement officials in the previous fiscal year.
(E) Intelligence and predictive data from the Drug
Enforcement Administration and the Department of Health
and Human Services showing patterns and trends in
abuse, trafficking, and transportation in
methamphetamine, amphetamine, and listed chemicals (as
that term is so defined).
(2) Certification.--Before the Director apportions any
funds under this subsection to a high intensity drug
trafficking area, the Director shall certify that the law
enforcement entities responsible for clandestine
methamphetamine and amphetamine laboratory seizures in that
area are providing laboratory seizure data to the national
clandestine laboratory database at the El Paso Intelligence
Center.
(d) Limitation on Administrative Costs.--Not more than 5 percent of
the amount appropriated in a fiscal year pursuant to the authorization
of appropriations for that fiscal year in subsection (b) may be
available in that fiscal year for administrative costs associated with
activities under subsection (a).
SEC. 1525. COMBATING AMPHETAMINE AND METHAMPHETAMINE MANUFACTURING AND
TRAFFICKING.
(a) Activities.--In order to combat the illegal manufacturing and
trafficking in amphetamine and methamphetamine, the Administrator of
the Drug Enforcement Administration may--
(1) assist State and local law enforcement in small and
mid-sized communities in all phases of investigations related
to such manufacturing and trafficking, including assistance
with foreign-language interpretation;
(2) staff additional regional enforcement and mobile
enforcement teams related to such manufacturing and
trafficking;
(3) establish additional resident offices and posts of duty
to assist State and local law enforcement in rural areas in
combating such manufacturing and trafficking;
(4) provide the Special Operations Division of the
Administration with additional agents and staff to collect,
evaluate, interpret, and disseminate critical intelligence
targeting the command and control operations of major
amphetamine and methamphetamine manufacturing and trafficking
organizations;
(5) enhance the investigative and related functions of the
Chemical Control Program of the Administration to implement
more fully the provisions of the Comprehensive Methamphetamine
Control Act of 1996 (Public Law 104-237);
(6) design an effective means of requiring an accurate
accounting of the import and export of list I chemicals, and
coordinate investigations relating to the diversion of such
chemicals;
(7) develop a computer infrastructure sufficient to
receive, process, analyze, and redistribute time-sensitive
enforcement information from suspicious order reporting to
field offices of the Administration and other law enforcement
and regulatory agencies, including the continuing development
of the Suspicious Order Reporting and Tracking System (SORTS)
and the Chemical Transaction Database (CTRANS) of the
Administration;
(8) establish an education, training, and communication
process in order to alert the industry to current trends and
emerging patterns in the illegal manufacturing of amphetamine
and methamphetamine; and
(9) carry out such other activities as the Administrator
considers appropriate.
(b) Additional Positions and Personnel.--
(1) In general.--In carrying out activities under
subsection (a), the Administrator may establish in the
Administration not more than 50 full-time positions, including
not more than 31 special-agent positions, and may appoint
personnel to such positions.
(2) Particular positions.--In carrying out activities under
paragraphs (5) through (8) of subsection (a), the Administrator
may establish in the Administration not more than 15 full-time
positions, including not more than 10 diversion investigator
positions, and may appoint personnel to such positions. Any
positions established under this paragraph are in addition to
any positions established under paragraph (1).
(c) Authorization of Appropriations.--There are authorized to be
appropriated for the Drug Enforcement Administration for each fiscal
year after fiscal year 1999, $9,500,000 for purposes of carrying out
the activities authorized by subsection (a) and employing personnel in
positions established under subsection (b), of which $3,000,000 shall
be available for activities under paragraphs (5) through (8) of
subsection (a) and employing personnel in positions established under
subsection (b)(2).
CHAPTER 3--ABUSE PREVENTION AND TREATMENT
SEC. 1531. EXPANSION OF METHAMPHETAMINE RESEARCH.
Section 464N of the Public Health Service Act (42 U.S.C. 285o-2) is
amended by adding at the end the following:
``(c) Methamphetamine Research.--
``(1) Grants or cooperative agreements.--The Director of
the Institute may make grants or enter into cooperative
agreements to expand the current and on-going interdisciplinary
research and clinical trials with treatment centers of the
National Drug Abuse Treatment Clinical Trials Network relating
to methamphetamine abuse and addiction and other biomedical,
behavioral, and social issues related to methamphetamine abuse
and addiction.
``(2) Use of funds.--Amounts made available under a grant
or cooperative agreement under paragraph (1) for
methamphetamine abuse and addiction may be used for research
and clinical trials relating to--
``(A) the effects of methamphetamine abuse on the
human body, including the brain;
``(B) the addictive nature of methamphetamine and
how such effects differ with respect to different
individuals;
``(C) the connection between methamphetamine abuse
and mental health;
``(D) the identification and evaluation of the most
effective methods of prevention of methamphetamine
abuse and addiction;
``(E) the identification and development of the
most effective methods of treatment of methamphetamine
addiction, including pharmacological treatments;
``(F) risk factors for methamphetamine abuse;
``(G) effects of methamphetamine abuse and
addiction on pregnant women and their fetuses; and
``(H) cultural, social, behavioral, neurological
and psychological reasons that individuals abuse
methamphetamine, or refrain from abusing
methamphetamine.
``(3) Research results.--The Director shall promptly
disseminate research results under this subsection to Federal,
State and local entities involved in combating methamphetamine
abuse and addiction.
``(4) Authorization of appropriations.--
``(A) Authorization of appropriations.--There is
authorized to be appropriated to carry out paragraph
(1), such sums as may be necessary for each fiscal
year.
``(B) Supplement not supplant.--Amounts
appropriated pursuant to the authorization of
appropriations in subparagraph (A) for a fiscal year
shall supplement and not supplant any other amounts
appropriated in such fiscal year for research on
methamphetamine abuse and addiction.''.
SEC. 1532. METHAMPHETAMINE AND AMPHETAMINE TREATMENT INITIATIVE BY
CENTER FOR SUBSTANCE ABUSE TREATMENT.
Subpart 1 of part B of title V of the Public Health Service Act (42
U.S.C. 290bb et seq.) is amended by adding at the end the following new
section:
``methamphetamine and amphetamine treatment initiative
``Sec. 514. (a) Grants.--
``(1) Authority to make grants.--The Director of the Center
for Substance Abuse Treatment may make grants to States and
Indian tribes recognized by the United States that have a high
rate, or have had a rapid increase, in methamphetamine or
amphetamine abuse or addiction in order to permit such States
and Indian tribes to expand activities in connection with the
treatment of methamphetamine or amphetamine abuser or addiction
in the specific geographical areas of such States or Indian
tribes, as the case may be, where there is such a rate or has
been such an increase.
``(2) Recipients.--Any grants under paragraph (1) shall be
directed to the substance abuse directors of the States, and of
the appropriate tribal government authorities of the Indian
tribes, selected by the Director to receive such grants.
``(3) Nature of activities.--Any activities under a grant
under paragraph (1) shall be based on reliable scientific
evidence of their efficacy in the treatment of methamphetamine
or amphetamine abuse or addiction.
``(b) Geographic Distribution.--The Director shall ensure that
grants under subsection (a) are distributed equitably among the various
regions of the country and among rural, urban, and suburban areas that
are affected by methamphetamine or amphetamine abuse or addiction.
``(c) Additional Activities.--The Director shall--
``(1) evaluate the activities supported by grants under
subsection (a);
``(2) disseminate widely such significant information
derived from the evaluation as the Director considers
appropriate to assist States, Indian tribes, and private
providers of treatment services for methamphetamine or
amphetamine abuser or addiction in the treatment of
methamphetamine or amphetamine abuse or addiction; and
``(3) provide States, Indian tribes, and such providers
with technical assistance in connection with the provision of
such treatment.
``(d) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated
to carry out this section $10,000,000 for fiscal year 2000 and
such sums as may be necessary for each of fiscal years 2001 and
2002.
``(2) Use of certain funds.--Of the funds appropriated to
carry out this section in any fiscal year, the lesser of 5
percent of such funds or $1,000,000 shall be available to the
Director for purposes of carrying out subsection (c).''.
SEC. 1533. EXPANSION OF METHAMPHETAMINE ABUSE PREVENTION EFFORTS.
(a) Expansion of Efforts.--Section 515 of the Public Health Service
Act (42 U.S.C. 290bb-21) is amended by adding at the end the following:
``(e)(1) The Administrator may make grants to and enter into
contracts and cooperative agreements with public and nonprofit private
entities to enable such entities--
``(A) to carry out school-based programs concerning the
dangers of abuse of and addiction to methamphetamine and other
illicit drugs, using methods that are effective and science-
based, including initiatives that give students the
responsibility to create their own anti-drug abuse education
programs for their schools; and
``(B) to carry out community-based abuse and addiction
prevention programs relating to methamphetamine and other
illicit drugs that are effective and science-based.
``(2) Amounts made available under a grant, contract or cooperative
agreement under paragraph (1) shall be used for planning, establishing,
or administering prevention programs relating to methamphetamine and
other illicit drugs in accordance with paragraph (3).
``(3)(A) Amounts provided under this subsection may be used--
``(i) to carry out school-based programs that are focused
on those districts with high or increasing rates of
methamphetamine abuse and addiction and targeted at populations
which are most at risk to start abuse of methamphetamine and
other illicit drugs;
``(ii) to carry out community-based prevention programs
that are focused on those populations within the community that
are most at-risk for abuse of and addiction to methamphetamine
and other illicit drugs;
``(iii) to assist local government entities to conduct
appropriate prevention activities relating to methamphetamine
and other illicit drugs;
``(iv) to train and educate State and local law enforcement
officials, prevention and education officials, members of
community anti-drug coalitions and parents on the signs of
abuse of and addiction to methamphetamine and other illicit
drugs, and the options for treatment and prevention;
``(v) for planning, administration, and educational
activities related to the prevention of abuse of and addiction
to methamphetamine and other illicit drugs;
``(vi) for the monitoring and evaluation of prevention
activities relating to methamphetamine and other illicit drugs,
and reporting and disseminating resulting information to the
public; and
``(vii) for targeted pilot programs with evaluation
components to encourage innovation and experimentation with new
methodologies.
``(B) The Administrator shall give priority in making grants under
this subsection to rural and urban areas that are experiencing a high
rate or rapid increases in methamphetamine abuse and addiction.
``(4)(A) Not less than $500,000 of the amount available in each
fiscal year to carry out this subsection shall be made available to the
Administrator, acting in consultation with other Federal agencies, to
support and conduct periodic analyses and evaluations of effective
prevention programs for abuse of and addiction to methamphetamine and
other illicit drugs and the development of appropriate strategies for
disseminating information about and implementing these programs.
``(B) The Administrator shall submit to the committees of Congress
referred to in subparagraph (C) an annual report with the results of
the analyses and evaluation under subparagraph (A).
``(C) The committees of Congress referred to in this subparagraph
are the following:
``(i) The Committees on Health, Education, Labor, and
Pensions, the Judiciary, and Appropriations of the Senate.
``(ii) The Committees on Commerce, the Judiciary, and
Appropriations of the House of Representatives.''.
(b) Authorization of Appropriations for Expansion of Abuse
Prevention Efforts and Practitioner Registration Requirements.--There
is authorized to be appropriated to carry out section 515(e) of the
Public Health Service Act (as added by subsection (a)) and section
303(g)(2) of the Controlled Substances Act (as added by section 18(a)
of this Act), $15,000,000 for fiscal year 2000, and such sums as may be
necessary for each succeeding fiscal year.
SEC. 1534. STUDY OF METHAMPHETAMINE TREATMENT.
(a) Study.--
(1) Requirement.--The Secretary of Health and Human
Services shall, in consultation with the Institute of Medicine
of the National Academy of Sciences, conduct a study on the
development of medications for the treatment of addiction to
amphetamine and methamphetamine.
(2) Report.--Not later than nine months after the date of
the enactment of this Act, the Secretary shall submit to the
Committees on the Judiciary of the Senate and House of
Representatives a report on the results of the study conducted
under paragraph (1).
(b) Authorization of Appropriations.--There are hereby authorized
to be appropriated for the Department of Health and Human Services for
fiscal year 2000 such sums as may be necessary to meet the requirements
of subsection (a).
CHAPTER 4--REPORTS
SEC. 1541. REPORTS ON CONSUMPTION OF METHAMPHETAMINE AND OTHER ILLICIT
DRUGS IN RURAL AREAS, METROPOLITAN AREAS, AND
CONSOLIDATED METROPOLITAN AREAS.
The Secretary of Health and Human Services shall include in each
National Household Survey on Drug Abuse appropriate prevalence data and
information on the consumption of methamphetamine and other illicit
drugs in rural areas, metropolitan areas, and consolidated metropolitan
areas.
SEC. 1542. REPORT ON DIVERSION OF ORDINARY OVER-THE-COUNTER
PSEUDOEPHEDRINE AND PHENYLPROPANOLAMINE PRODUCTS.
(a) Study.--The Attorney General shall conduct a study of the use
of ordinary over-the-counter pseudoephedrine and phenylpropanolamine
products in the clandestine production of illicit drugs. Sources of
data for the study shall include the following:
(1) Information from Federal, State, and local clandestine
laboratory seizures and related investigations identifying the
source, type, or brand of drug products being utilized and how
they were obtained for the illicit production of
methamphetamine and amphetamine.
(2) Information submitted voluntarily from the
pharmaceutical and retail industries involved in the
manufacture, distribution, and sale of drug products containing
ephedrine, pseudoephedrine, and phenylpropanolamine, including
information on changes in the pattern, volume, or both, of
sales of ordinary over-the-counter pseudoephedrine and
phenylpropanolamine products.
(b) Report.--
(1) Requirement.--Not later than April 1, 2001, the
Attorney General shall submit to Congress a report on the study
conducted under subsection (a).
(2) Elements.--The report shall include--
(A) the findings of the Attorney General as a
result of the study; and
(B) such recommendations on the need to establish
additional measures to prevent diversion of ordinary
over-the-counter pseudoephedrine and
phenylpropanolamine (such as a threshold on ordinary
over-the-counter pseudoephedrine and
phenylpropanolamine products) as the Attorney General
considers appropriate.
(3) Matters considered.--In preparing the report, the
Attorney General shall consider the comments and
recommendations of State and local law enforcement and
regulatory officials and of representatives of the industry
described in subsection (a)(2).
Subtitle B--Controlled Substances Generally
CHAPTER 1--CRIMINAL MATTERS
SEC. 1551. ENHANCED PUNISHMENT FOR TRAFFICKING IN LIST I CHEMICALS.
(a) Amendments to Federal Sentencing Guidelines.--Pursuant to its
authority under section 994(p) of title 28, United States, the United
States Sentencing Commission shall amend the Federal sentencing
guidelines in accordance with this section with respect to any
violation of paragraph (1) or (2) of section 401(d) of the Controlled
Substances Act (21 U.S.C. 841(d)) involving a list I chemical and any
violation of paragraph (1) or (3) of section 1010(d) of the Controlled
Substance Import and Export Act (21 U.S.C. 960(d)) involving a list I
chemical.
(b) Ephedrine, Phenylpropanolamine, and Pseudoephedrine.--
(1) In general.--In carrying this section, the United
States Sentencing Commission shall, with respect to each
offense described in subsection (a) involving ephedrine,
phenylpropanolamine, or pseudoephedrine (including their salts,
optical isomers, and salts of optical isomers), review and
amend its guidelines to provide for increased penalties such
that those penalties corresponded to the quantity of controlled
substance that could reasonably have been manufactured using
the quantity of ephedrine, phenylpropanolamine, or
pseudoephedrine possessed or distributed.
(2) Conversion ratios.--For the purposes of the amendments
made by this subsection, the quantity of controlled substance
that could reasonably have been manufactured shall be
determined by using a table of manufacturing conversion ratios
for ephedrine, phenylpropanolamine, and pseudoephedrine, which
table shall be established by the Sentencing Commission based
on scientific, law enforcement, and other data the Sentencing
Commission considers appropriate.
(c) Other List I Chemicals.--In carrying this section, the United
States Sentencing Commission shall, with respect to each offense
described in subsection (a) involving any list I chemical other than
ephedrine, phenylpropanolamine, or pseudoephedrine, review and amend
its guidelines to provide for increased penalties such that those
penalties reflect the dangerous nature of such offenses, the need for
aggressive law enforcement action to fight such offenses, and the
extreme dangers associated with unlawful activity involving
methamphetamine and amphetamine, including--
(1) the rapidly growing incidence of controlled substance
manufacturing;
(2) the extreme danger inherent in manufacturing controlled
substances;
(3) the threat to public safety posed by manufacturing
controlled substances; and
(4) the recent increase in the importation, possession, and
distribution of list I chemicals for the purpose of
manufacturing controlled substances.
(d) Emergency Authority to Sentencing Commission.--The United
States Sentencing Commission shall promulgate amendments pursuant to
this section as soon as practicable after the date of the enactment of
this Act in accordance with the procedure set forth in section 21(a) of
the Sentencing Act of 1987 (Public Law 100-182), as though the
authority under that Act had not expired.
SEC. 1552. MAIL ORDER REQUIREMENTS.
Section 310(b)(3) of the Controlled Substances Act (21 U.S.C.
830(b)(3)) is amended--
(1) by redesignating subparagraphs (A) and (B) as
subparagraphs (B) and (C), respectively;
(2) by inserting before subparagraph (B), as so
redesignated, the following new subparagraph (A):
``(A) As used in this paragraph:
``(i) The term `drug product' means an
active ingredient in dosage form that has been
approved or otherwise may be lawfully marketed
under the Food, Drug, and Cosmetic Act for
distribution in the United States.
``(ii) The term `valid prescription' means
a prescription which is issued for a legitimate
medical purpose by an individual practitioner
licensed by law to administer and prescribe the
drugs concerned and acting in the usual course
of the practitioner's professional practice.'';
(3) in subparagraph (B), as so redesignated, by inserting
``or who engages in an export transaction'' after
``nonregulated person''; and
(4) adding at the end the following:
``(D) Except as provided in subparagraph (E), the
following distributions to a nonregulated person, and
the following export transactions, shall not be subject
to the reporting requirement in subparagraph (B):
``(i) Distributions of sample packages of
drug products when such packages contain not
more than 2 solid dosage units or the
equivalent of 2 dosage units in liquid form,
not to exceed 10 milliliters of liquid per
package, and not more than one package is
distributed to an individual or residential
address in any 30-day period.
``(ii) Distributions of drug products by
retail distributors that may not include face-
to-face transactions to the extent that such
distributions are consistent with the
activities authorized for a retail distributor
as specified in section 102(46).
``(iii) Distributions of drug products to a
resident of a long term care facility (as that
term is defined in regulations prescribed by
the Attorney General) or distributions of drug
products to a long term care facility for
dispensing to or for use by a resident of that
facility.
``(iv) Distributions of drug products
pursuant to a valid prescription.
``(v) Exports which have been reported to
the Attorney General pursuant to section 1004
or 1018 or which are subject to a waiver
granted under section 1018(e)(2).
``(vi) Any quantity, method, or type of
distribution or any quantity, method, or type
of distribution of a specific listed chemical
(including specific formulations or drug
products) or of a group of listed chemicals
(including specific formulations or drug
products) which the Attorney General has
excluded by regulation from such reporting
requirement on the basis that such reporting is
not necessary for the enforcement of this title
or title III.
``(E) The Attorney General may revoke any or all of
the exemptions listed in subparagraph (D) for an
individual regulated person if he finds that drug
products distributed by the regulated person are being
used in violation of this title or title III. The
regulated person shall be notified of the revocation,
which will be effective upon receipt by the person of
such notice, as provided in section 1018(c)(1), and
shall have the right to an expedited hearing as
provided in section 1018(c)(2).''.
SEC. 1553. INCREASED PENALTIES FOR DISTRIBUTING DRUGS TO MINORS.
Section 418 of the Controlled Substances Act (21 U.S.C. 859) is
amended--
(1) in subsection (a), by striking ``one year'' and
inserting ``3 years''; and
(2) in subsection (b), by striking ``one year'' and
inserting ``5 years''.
SEC. 1554. INCREASED PENALTY FOR DRUG TRAFFICKING IN OR NEAR A SCHOOL
OR OTHER PROTECTED LOCATION.
Section 419 of the Controlled Substances Act (21 U.S.C. 860) is
amended--
(1) in subsection (a), by striking ``one year'' and
inserting ``3 years''; and
(2) in subsection (b), by striking ``three years'' each
place that term appears and inserting ``5 years''.
SEC. 1555. ADVERTISEMENTS FOR DRUG PARAPHERNALIA AND SCHEDULE I
CONTROLLED SUBSTANCES.
(a) Drug Paraphernalia.--Subsection (a)(1) of section 422 of the
Controlled Substances Act (21 U.S.C. 863) is amended by inserting ``,
directly or indirectly advertise for sale,'' after ``sell''.
(b) Directly or Indirectly Advertise for Sale Defined.--Such
section 422 is further amended by adding at the end the following new
subsection:
``(g) In this section, the term `directly or indirectly advertise
for sale' means the use of any communication facility (as that term is
defined in section 403(b)) to post, publicize, transmit, publish, link
to, broadcast, or otherwise advertise any matter (including a telephone
number or electronic or mail address) with the intent to facilitate or
promote a transaction in.''.
(c) Schedule I Controlled Substances.--Section 403(c) of such Act
(21 U.S.C. 843(c)) is amended--
(1) by inserting ``(1)'' after ``(c)''; and
(2) in paragraph (1), as so designated--
(A) in the first sentence, by inserting before the
period the following: ``, or to directly or indirectly
advertise for sale (as that term is defined in section
422(g)) any Schedule I controlled substance''; and
(B) in the second sentence, by striking ``term
`advertisement''' and inserting ``term `written
advertisement'''.
SEC. 1556. THEFT AND TRANSPORTATION OF ANHYDROUS AMMONIA FOR PURPOSES
OF ILLICIT PRODUCTION OF CONTROLLED SUBSTANCES.
(a) In General.--Part D of the Controlled Substances Act (21 U.S.C.
841 et seq.) is amended by adding at the end the following:
``anhydrous ammonia
``Sec. 423. (a) It is unlawful for any person--
``(1) to steal anhydrous ammonia, or
``(2) to transport stolen anhydrous ammonia across State
lines,
knowing, intending, or having reasonable cause to believe that such
anhydrous ammonia will be used to manufacture a controlled substance in
violation of this part.
``(b) Any person who violates subsection (a) shall be imprisoned or
fined, or both, in accordance with section 403(d) as if such violation
were a violation of a provision of section 403.''.
(b) Clerical Amendment.--The table of contents for that Act is
amended by inserting after the item relating to section 421 the
following new items:
``Sec. 422. Drug paraphernalia.
``Sec. 423. Anhydrous ammonia.''.
(c) Assistance for Certain Research.--
(1) Agreement.--The Administrator of the Drug Enforcement
Administration shall seek to enter into an agreement with Iowa
State University in order to permit the University to continue
and expand its current research into the development of inert
agents that, when added to anhydrous ammonia, eliminate the
usefulness of anhydrous ammonia as an ingredient in the
production of methamphetamine.
(2) Reimbursable provision of funds.--The agreement under
paragraph (1) may provide for the provision to Iowa State
University, on a reimbursable basis, of $500,000 for purposes
the activities specified in that paragraph.
(3) Authorization of appropriations.--There is hereby
authorized to be appropriated for the Drug Enforcement
Administration for fiscal year 2000, $500,000 for purposes of
carrying out the agreement under this subsection.
SEC. 1557. CRIMINAL PROHIBITION ON DISTRIBUTION OF CERTAIN INFORMATION
RELATING TO THE MANUFACTURE OF CONTROLLED SUBSTANCES.
(a) In General.--Part I of title 18, United States Code, is amended
by inserting after chapter 21 the following new chapter:
``CHAPTER 22--CONTROLLED SUBSTANCES
``Sec.
``421. Distribution of information relating to manufacture of
controlled substances.
``Sec. 421. Distribution of information relating to manufacture of
controlled substances
``(a) Prohibition on Distribution of Information Relating to
Manufacture of Controlled Substances.--
``(1) Controlled substance defined.--In this subsection,
the term `controlled substance' has the meaning given that term
in section 102(6) of the Controlled Substances Act (21 U.S.C.
802(6)).
``(2) Prohibition.--It shall be unlawful for any person--
``(A) to teach or demonstrate the manufacture of a
controlled substance, or to distribute by any means
information pertaining to, in whole or in part, the
manufacture of a controlled substance, with the intent
that the teaching, demonstration, or information be
used for, or in furtherance of, an activity that
constitutes a Federal crime; or
``(B) to teach or demonstrate to any person the
manufacture of a controlled substance, or to distribute
to any person, by any means, information pertaining to,
in whole or in part, the manufacture of a controlled
substance, knowing that such person intends to use the
teaching, demonstration, or information for, or in
furtherance of, an activity that constitutes a Federal
crime.
``(b) Penalty.--Any person who violates subsection (a) shall be
fined under this title, imprisoned not more than 10 years, or both.''.
(b) Clerical Amendment.--The table of chapters at the beginning of
part I of title 18, United States Code, is amended by inserting after
the item relating to chapter 21 the following new item:
``22. Controlled Substances................................. 421''.
CHAPTER 2--OTHER MATTERS
SEC. 1561. WAIVER AUTHORITY FOR PHYSICIANS WHO DISPENSE OR PRESCRIBE
CERTAIN NARCOTIC DRUGS FOR MAINTENANCE TREATMENT OR
DETOXIFICATION TREATMENT.
(a) Requirements.--Section 303(g) of the Controlled Substances Act
(21 U.S.C. 823(g)) is amended--
(1) in paragraph (2), by striking ``(A) security'' and
inserting ``(i) security'', and by striking ``(B) the
maintenance'' and inserting ``(ii) the maintenance'';
(2) by redesignating paragraphs (1) through (3) as
subparagraphs (A) through (C), respectively;
(3) by inserting ``(1)'' after ``(g)'';
(4) by striking ``Practitioners who dispense'' and
inserting ``Except as provided in paragraph (2), practitioners
who dispense and prescribe''; and
(5) by adding at the end the following:
``(2)(A) Subject to subparagraphs (D), the requirements of
paragraph (1) are waived in the case of the dispensing or prescribing,
by a physician, of narcotic drugs in schedule III, IV, or V, or
combinations of such drugs, if the physician meets the conditions
specified in subparagraph (B) and the narcotic drugs or combinations of
such drugs meet the conditions specified in subparagraph (C).
``(B)(i) For purposes of subparagraph (A), the conditions specified
in this subparagraph with respect to a physician are that, before
dispensing or prescribing narcotic drugs in schedule III, IV, or V, or
combinations of such drugs, to patients for maintenance or
detoxification treatment, the physician submit to the Secretary and the
Attorney General a notification of the intent of the physician to begin
dispensing or prescribing the drugs or combinations for such purpose,
and that the notification to the Secretary also contain the following
certifications by the physician:
``(I) The physician--
``(aa) is a physician licensed under State law; and
``(bb) has training or experience and the ability
to treat and manage opiate-dependent patients.
``(II) With respect to patients to whom the physician will
provide such drugs or combinations of drugs, the physician has
the capacity to refer the patients for appropriate counseling
and other appropriate ancillary services.
``(III) In any case in which the physician is not in a
group practice, the total number of such patients of the
physician at any one time will not exceed the applicable
number. For purposes of this subclause, the applicable number
is 20, except that the Secretary may by regulation change such
total number.
``(IV) In any case in which the physician is in a group
practice, the total number of such patients of the group
practice at any one time will not exceed the applicable number.
For purposes of this subclause, the applicable number is 20,
except that the Secretary may by regulation change such total
number, and the Secretary for such purposes may by regulation
establish different categories on the basis of the number of
physicians in a group practice and establish for the various
categories different numerical limitations on the number of
such patients that the group practice may have.
``(ii)(I) The Secretary may, in consultation with the Administrator
of the Drug Enforcement Administration, the Administrator of the
Substance Abuse and Mental Health Services Administration, the Director
of the Center for Substance Abuse Treatment, the Director of the
National Institute on Drug Abuse, and the Commissioner of Food and
Drugs, issue regulations through notice and comment rulemaking or
practice guidelines to implement this paragraph. The regulations or
practice guidelines shall address the following:
``(aa) Approval of additional credentialing bodies and the
responsibilities of credentialing bodies.
``(bb) Additional exemptions from the requirements of this
paragraph and any regulations under this paragraph.
``(II) Nothing in the regulations or practice guidelines under this
clause may authorize any Federal official or employee to exercise
supervision or control over the practice of medicine or the manner in
which medical services are provided.
``(III)(aa) The Secretary shall issue a Treatment Improvement
Protocol containing best practice guidelines for the treatment and
maintenance of opiate-dependent patients. The Secretary shall develop
the protocol in consultation with the Director of the National
Institute on Drug Abuse, the Director of the Center for Substance Abuse
Treatment, the Administrator of the Drug Enforcement Administration,
the Commissioner of Food and Drugs, the Administrator of the Substance
Abuse and Mental Health Services Administration, and other substance
abuse disorder professionals. The protocol shall be guided by science.
``(bb) The protocol shall be issued not later than 120 days after
the date of the enactment of the Methamphetamine Anti-Proliferation Act
of 2000.
``(IV) For purposes of the regulations or practice guidelines under
subclause (I), a physician shall have training or experience under
clause (i)(I)(bb) if the physician meets one or more of the following
conditions:
``(aa) The physician is certified in addiction treatment by
the American Society of Addiction Medicine, the American Board
of Medical Specialties, the American Osteopathic Academy of
Addiction Medicine, or any other certified body accredited by
the Secretary.
``(bb) The physician has been a clinical investigator in a
clinical trial conducted for purposes of securing approval
under section 505 of the Federal Food, Drug, and Cosmetic Act
(21 U.S.C. 355) or section 351 of the Public Health Service Act
(42 U.S.C. 262) of a narcotic drug in schedule III, IV, or V
for the treatment of addiction, if such approval was granted.
``(cc) The physician has completed training (through
classroom situations, seminars, professional society meetings,
electronic communications, or otherwise) provided by the
American Society of Addiction Medicine, the American Academy of
Addiction Psychiatry, the American Osteopathic Academy of
Addiction Medicine, the American Medical Association, the
American Osteopathic Association, the American Psychiatric
Association, or any other organization that the Secretary
determines appropriate for purposes of this item. The curricula
may include training in patient need for counseling regarding
HIV, Hepatitis C, and other infectious diseases, substance
abuse counseling, random drug testing, medical evaluation,
annual assessment, prenatal care, diagnosis of addiction,
rehabilitation services, confidentiality, and other appropriate
topics.
``(dd) The physician has training or experience in the
treatment and management of opiate-dependent, which training or
experience shall meet such criteria as the Secretary may
prescribe. Any such criteria shall be effective for a period of
three years after the effective date of such criteria, but the
Secretary may extend the effective period of such criteria by
additional periods of three years for each extension if the
Secretary determines that such extension is appropriate for
purposes of this item. Any such extension shall go into effect
only if the Secretary publishes a notice of such extension in
the Federal Register during the 30-day period ending on the
date of the end of the three-year effective period of such
criteria to which such extension will apply.
``(ee) The physician is certified in addiction treatment by
a State medical licensing board, or an entity accredited by
such board, unless the Secretary determines (after an
opportunity for a hearing) that the training provided by such
board or entity was inadequate for the treatment and management
of opiate-dependent patients.
``(C) For purposes of subparagraph (A), the conditions specified in
this subparagraph with respect to narcotic drugs in schedule III, IV,
or V, or combinations of such drugs, are as follows:
``(i) The drugs or combinations of drugs have, under the
Federal Food, Drug and Cosmetic Act or section 351 of the
Public Health Service Act, been approved for use in maintenance
or detoxification treatment.
``(ii) The drugs or combinations of drugs have not been the
subject of an adverse determination. For purposes of this
clause, an adverse determination is a determination published
in the Federal Register and made by the Secretary, after
consultation with the Attorney General, that experience since
the approval of the drug or combinations of drugs has shown
that the use of the drugs or combinations of drugs for
maintenance or detoxification treatment requires additional
standards respecting the qualifications of physicians to
provide such treatment, or requires standards respecting the
quantities of the drugs that may be provided for unsupervised
use.
``(D)(i) A waiver under subparagraph (A) with respect to a
physician is not in effect unless (in addition to conditions under
subparagraphs (B) and (C)) the following conditions are met:
``(I) The notification under subparagraph (B) is in writing
and states the name of the physician.
``(II) The notification identifies the registration issued
for the physician pursuant to subsection (f).
``(III) If the physician is a member of a group practice,
the notification states the names of the other physicians in
the practice and identifies the registrations issued for the
other physicians pursuant to subsection (f).
``(IV) A period of 45 days has elapsed after the date on
which the notification was submitted, and during such period
the physician does not receive from the Secretary a written
notice that one or more of the conditions specified in
subparagraph (B), subparagraph (C), or this subparagraph, have
not been met.
``(ii) The Secretary shall provide to the Attorney General such
information contained in notifications under subparagraph (B) as the
Attorney General may request.
``(E) If in violation of subparagraph (A) a physician dispenses or
prescribes narcotic drugs in schedule III, IV, or V, or combinations of
such drugs, for maintenance treatment or detoxification treatment, the
Attorney General may, for purposes of section 304(a)(4), consider the
physician to have committed an act that renders the registration of the
physician pursuant to subsection (f) to be inconsistent with the public
interest.
``(F)(i) Upon determining that a physician meets the conditions
specified in subparagraph (B), the Secretary shall notify the physician
and the Attorney General.
``(ii) Upon receiving notice with respect to a physician under
clause (i), the Attorney General shall assign the physician an
identification number under this paragraph for inclusion with the
physician's current registration to prescribe narcotics. An
identification number assigned a physician under this clause shall be
appropriate to preserve the confidentiality of a patient prescribed
narcotic drugs covered by this paragraph by the physician.
``(iii) If the Secretary fails to make a determination described in
clause (i) by the end of the 45-day period beginning on the date of the
receipt by the Secretary of a notification from a physician under
subparagraph (B), the Attorney General shall assign the physician an
identification number described in clause (ii) at the end of such
period.
``(G) In this paragraph:
``(i) The term `group practice' has the meaning given such
term in section 1877(h)(4) of the Social Security Act.
``(ii) The term `physician' has the meaning given such term
in section 1861(r) of the Social Security Act.
``(H)(i) This paragraph takes effect on the date of the enactment
of the Methamphetamine Anti-Proliferation Act of 2000, and remains in
effect thereafter except as provided in clause (iii) (relating to a
decision by the Secretary or the Attorney General that this paragraph
should not remain in effect).
``(ii) For the purposes relating to clause (iii), the Secretary and
the Attorney General shall, during the 3-year period beginning on the
date of the enactment of the Methamphetamine Anti-Proliferation Act of
2000, make determinations in accordance with the following:
``(I)(aa) The Secretary shall--
``(aaa) make a determination of whether treatments
provided under waivers under subparagraph (A) have been
effective forms of maintenance treatment and
detoxification treatment in clinical settings;
``(bbb) make a determination regarding whether such
waivers have significantly increased (relative to the
beginning of such period) the availability of
maintenance treatment and detoxification treatment; and
``(ccc) make a determination regarding whether such
waivers have adverse consequences for the public
health.
``(bb) In making determinations under this subclause, the
Secretary--
``(aaa) may collect data from the practitioners for
whom waivers under subparagraph (A) are in effect;
``(bbb) shall issue appropriate guidelines or
regulations (in accordance with procedures for
substantive rules under section 553 of title 5, United
States Code) specifying the scope of the data that will
be required to be provided under this subclause and the
means through which the data will be collected; and
``(ccc) shall, with respect to collecting such
data, comply with applicable provisions of chapter 6 of
title 5, United States Code (relating to a regulatory
flexibility analysis), and of chapter 8 of such title
(relating to congressional review of agency
rulemaking).
``(II) The Attorney General shall--
``(aa) make a determination of the extent to which
there have been violations of the numerical limitations
established under subparagraph (B) for the number of
individuals to whom a practitioner may provide
treatment; and
``(bb) make a determination regarding whether
waivers under subparagraph (A) have increased (relative
to the beginning of such period) the extent to which
narcotic drugs in schedule III, IV, or V, or
combinations of such drugs, are being dispensed or
prescribed, or possessed, in violation of this Act.
``(iii) If, before the expiration of the period specified in clause
(ii), the Secretary or the Attorney General publishes in the Federal
Register a decision, made on the basis of determinations under such
clause, that this paragraph should not remain in effect, this paragraph
ceases to be in effect 60 days after the date on which the decision is
so published. The Secretary shall, in making any such decision, consult
with the Attorney General, and shall, in publishing the decision in the
Federal Register, include any comments received from the Attorney
General for inclusion in the publication. The Attorney General shall,
in making any such decision, consult with the Secretary, and shall, in
publishing the decision in the Federal Register, include any comments
received from the Secretary for inclusion in the publication.
``(I) During the 3-year period beginning on the date of the
enactment of the Methamphetamine Anti-Proliferation Act of 2000, a
State may not preclude a practitioner from dispensing or prescribing
narcotic drugs in schedule III, IV, or V, or combinations of such
drugs, to patients for maintenance or detoxification treatment in
accordance with this paragraph, or the other amendments made by section
22 of that Act, unless, before the expiration of that 3-year period,
the State enacts a law prohibiting a practitioner from dispensing or
prescribing such drugs or combination of drugs.''.
(b) Conforming Amendments.--Section 304 of the Controlled
Substances Act (21 U.S.C. 824) is amended--
(1) in subsection (a), in the matter following paragraph
(5), by striking ``section 303(g)'' each place the term appears
and inserting ``section 303(g)(1)''; and
(2) in subsection (d), by striking ``section 303(g)'' and
inserting ``section 303(g)(1)''.
(c) Authorization of Appropriations.--There is hereby authorized to
be appropriated for purposes of activities under section 303(g)(2) of
the Controlled Substances Act, as added by subsection (a), amounts as
follows:
(1) For fiscal year 2000, $3,000,000.
(2) For each fiscal year after fiscal year 2000, such sums
as may be necessary for such fiscal year.
Subtitle C--Cocaine Powder
SEC. 1571. SHORT TITLE.
This subtitle may be cited as the ``Powder Cocaine Sentencing Act
of 2000''.
SEC. 1572. SENTENCING FOR VIOLATIONS INVOLVING COCAINE POWDER.
(a) Amendment of Controlled Substances Act.--
(1) Large quantities.--Section 401(b)(1)(A)(ii) of the
Controlled Substances Act (21 U.S.C. 841(b)(1)(A)(ii)) is
amended by striking ``5 kilograms'' and inserting ``500
grams''.
(2) Small quantities.--Section 401(b)(1)(B)(ii) of the
Controlled Substances Act (21 U.S.C. 841(b)(1)(B)(ii)) is
amended by striking ``500 grams'' and inserting ``50 grams''.
(b) Amendment of Controlled Substances Import and Export Act.--
(1) Large quantities.--Section 1010(b)(1)(B) of the
Controlled Substances Import and Export Act (21 U.S.C.
960(b)(1)(B)) is amended by striking ``5 kilograms'' and
inserting ``500 grams''.
(2) Small quantities.--Section 1010(b)(2)(B) of the
Controlled Substances Import and Export Act (21 U.S.C.
960(b)(2)(B)) is amended by striking ``500 grams'' and
inserting ``50 grams''.
(c) Amendment of Sentencing Guidelines.--Pursuant to section 994 of
title 28, United States Code, the United States Sentencing Commission
shall amend the Federal sentencing guidelines to reflect the amendments
made by this section.
Subtitle D--Education Matters
SEC. 1581. SAFE SCHOOLS.
(a) Amendments.--Part F of title XIV of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 8921 et seq.) is amended as
follows:
(1) Short title.--Section 14601(a) is amended by replacing
``Gun-Free'' with ``Safe'', and ``1994'' with ``1999''.
(2) Requirements.--Section 14601(b)(1) is amended by
inserting after ``determined'' the following: ``to be in
possession of felonious quantities of an illegal drug, on
school property under the jurisdiction of, or in a vehicle
operated by an employee or agent of, a local educational agency
in that State, or''.
(3) Definitions.--Section 14601(b)(4) is amended by
replacing ``Definition'' with ``Definitions'' in the catchline,
by replacing ``section'' in the matter under the catchline with
``part'', by redesignating the matter under the catchline after
the comma as subparagraph (A), by replacing the period with a
semicolon, and by adding new subparagraphs (B), (C), and (D) as
follows:
``(B) the term `illegal drug' means a controlled
substance, as defined in section 102(6) of the
Controlled Substances Act (21 U.S.C. 802(6)), the
possession of which is unlawful under the Act (21
U.S.C. 801 et seq.) or under the Controlled Substances
Import and Export Act (21 U.S.C. 951 et seq.), but does
not mean a controlled substance used pursuant to a
valid prescription or as authorized by law; and
``(C) the term `illegal drug paraphernalia' means
drug paraphernalia, as defined in section 422(d) of the
Controlled Substances Act (21 U.S.C. 863(d)), except
that the first sentence of that section shall be
applied by inserting `or under the Controlled
Substances Import and Export Act (21 U.S.C. 951 et
seq.)', before the period.
``(D) the term `felonious quantities of an illegal
drug' means any quantity of an illegal drug--
``(i) possession of which quantity would,
under Federal, State, or local law, either
constitute a felony or indicate an intent to
distribute; or
``(ii) that is possessed with an intent to
distribute.''.
(4) Report to state.--Section 14601(d)(2)(C) is
amended by inserting ``illegal drugs or'' before
``weapons''.
(5) Repealer.--Section 14601 is amended by striking
subsection (f).
(6) Policy regarding criminal justice system
referral.--Section 14602(a) is amended by replacing
``served by'' with ``under the jurisdiction of'', and
by inserting after ``who'' the following: ``is in
possession of an illegal drug, or illegal drug
paraphernalia, on school property under the
jurisdiction of, or in a vehicle operated by an
employee or agent of, such agency, or who''.
(7) Data and policy dissemination under idea.--
Section 14603 is amended by inserting ``current''
before ``policy'', by striking ``in effect on October
20, 1994'', by striking all the matter after
``schools'' and inserting a period thereafter, and by
inserting before ``engaging'' the following:
``possessing illegal drugs, or illegal drug
paraphernalia, on school property, or in vehicles
operated by employees or agents of, schools or local
educational agencies, or''.
(b) Compliance Date; Reporting.--(1) States shall have 2 years from
the date of the enactment of this Act to comply with the requirements
established in the amendments made by subsection (a).
(2) Not later than 3 years after the date of the enactment of this
Act, the Secretary of Education shall submit to Congress a report on
any State that is not in compliance with the requirements of this
section.
(3) Not later than 2 years after the date of the enactment of this
Act, the Secretary of Education shall submit to Congress a report
analyzing the strengths and weaknesses of approaches regarding the
disciplining of children with disabilities.
SEC. 1582. STUDENT SAFETY AND FAMILY SCHOOL CHOICE.
Subpart 1 of part A of title I of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6311 et seq.) is amended by inserting
after section 1115A of such Act (20 U.S.C. 6316) the following:
``SEC. 1115B. STUDENT SAFETY AND FAMILY SCHOOL CHOICE.
``(a) In General.--Notwithstanding any other provision of law, if a
student is eligible to be served under section 1115(b), or attends a
school eligible for a schoolwide program under section 1114, and
becomes a victim of a violent criminal offense, including drug-related
violence, while in or on the grounds of a public elementary school or
secondary school that the student attends and that receives assistance
under this part, then the local educational agency may use funds
provided under this part or under any other Federal education program
to pay the supplementary costs for such student to attend another
school. The agency may use the funds to pay for the supplementary costs
of such student to attend any other public or private elementary school
or secondary school, including a religious school, in the same State as
the school where the criminal offense occurred, that is selected by the
student's parent. The State educational agency shall determine what
actions constitute a violent criminal offense for purposes of this
section.
``(b) Supplementary Costs.--The supplementary costs referred to in
subsection (a) shall not exceed--
``(1) in the case of a student for whom funds under this
section are used to enable the student to attend a public
elementary school or secondary school served by a local
educational agency that also serves the school where the
violent criminal offense occurred, the costs of supplementary
educational services and activities described in section
1114(b) or 1115(c) that are provided to the student;
``(2) in the case of a student for whom funds under this
section are used to enable the student to attend a public
elementary school or secondary school served by a local
educational agency that does not serve the school where the
violent criminal offense occurred but is located in the same
State--
``(A) the costs of supplementary educational
services and activities described in section 1114(b) or
1115(c) that are provided to the student; and
``(B) the reasonable costs of transportation for
the student to attend the school selected by the
student's parent; and
``(3) in the case of a student for whom funds under this
section are used to enable the student to attend a private
elementary school or secondary school, including a religious
school, the costs of tuition, required fees, and the reasonable
costs of such transportation.
``(c) Construction.--Nothing in this Act or any other Federal law
shall be construed to prevent a parent assisted under this section from
selecting the public or private, including religious, elementary school
or secondary school that a child of the parent will attend within the
State.
``(d) Consideration of Assistance.--Subject to subsection (h),
assistance made available under this section that is used to pay the
costs for a student to attend a private or religious school shall not
be considered to be Federal aid to the school, and the Federal
Government shall have no authority to influence or regulate the
operations of a private or religious school as a result of assistance
received under this section.
``(e) Continuing Eligibility.--A student assisted under this
section shall remain eligible to continue receiving assistance under
this section for at least 3 academic years without regard to whether
the student is eligible for assistance under section 1114 or 1115(b).
``(f) Tuition Charges.--Assistance under this section may not be
used to pay tuition or required fees at a private elementary school or
secondary school in an amount that is greater than the tuition and
required fees paid by students not assisted under this section at such
school.
``(g) Special Rule.--Any school receiving assistance provided under
this section shall comply with title VI of the Civil Rights Act of 1964
(42 U.S.C. 2000d et seq.) and not discriminate on the basis race,
color, or national origin.
``(h) Assistance; Taxes and Other Federal Programs.--
``(1) Assistance to families, not schools.--Assistance
provided under this section shall be considered to be aid to
families, not schools. Use of such assistance at a school shall
not be construed to be Federal financial aid or assistance to
that school.
``(2) Taxes and determinations of eligibility for other
federal programs.--Assistance provided under this section to a
student shall not be considered to be income of the student or
the parent of such student for Federal, State, or local tax
purposes or for determining eligibility for any other Federal
program.
``(i) Part B of the Individuals With Disabilities Education Act.--
Nothing in this section shall be construed to affect the requirements
of part B of the Individuals with Disabilities Education Act (20 U.S.C.
1411 et seq.).
``(j) Maximum Amount.--Notwithstanding any other provision of this
section, the amount of assistance provided under this part for a
student shall not exceed the per pupil expenditure for elementary or
secondary education, as appropriate, by the local educational agency
that serves the school where the criminal offense occurred for the
fiscal year preceding the fiscal year for which the determination is
made.''.
SEC. 1583. TRANSFER OF REVENUES.
(a) In General.--Notwithstanding any other provision of Federal
law, a State, a State educational agency, or a local educational agency
may transfer any non-Federal public funds associated with the education
of a student who is a victim of a violent criminal offense while in or
on the grounds of a public elementary school or secondary school served
by a local educational agency to another local educational agency or to
a private elementary school or secondary school, including a religious
school.
(b) Definitions.--For the purpose of subsection (a), the terms
``elementary school'', ``secondary school'', ``local educational
agency'', and ``State educational agency'' have the meanings given such
terms in section 14101 of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 8801).
Subtitle E--Miscellaneous
SEC. 1591. NOTICE; CLARIFICATION.
(a) Notice of Issuance.--Section 3103a of title 18, United States
Code, is amended by adding at the end the following new sentence:
``With respect to any issuance under this section or any other
provision of law (including section 3117 and any rule), any notice
required, or that may be required, to be given may be delayed pursuant
to the standards, terms, and conditions set forth in section 2705,
unless otherwise expressly provided by statute.''.
(b) Clarification.--(1) Section 2(e) of Public Law 95-78 (91 Stat.
320) is amended by adding at the end the following:
``Subdivision (d) of such rule, as in effect on this date, is amended
by inserting `tangible' before `property' each place it occurs.''.
(2) The amendment made by paragraph (1) shall take effect on the
date of the enactment of this Act.
SEC. 1592. DOMESTIC TERRORISM ASSESSMENT AND RECOVERY.
(a) In General.--The Federal Bureau of Investigation shall prepare
a study assessing--
(1) the threat posed by the Fuerzas Armadas de Liberacion
Nacional Puertorriquena (FALN) and Los Macheteros terrorist
organizations to the United States and its territories as of
July 31, 1999; and
(2) what effect the President's offer of clemency to 16
FALN and Los Macheteros members on August 11, 1999, and the
subsequent release of 11 of those members, will have on the
threat posed by those terrorist organizations to the United
States and its territories.
(b) Issues Examined.--In conducting and preparing the study under
subsection (a), the Federal Bureau of Investigation shall address--
(1) the threat posed by the FALN and Los Macheteros
organizations to law enforcement officers, prosecutors, defense
attorneys, witnesses, and judges involved in the prosecution of
members of the FALN and Los Macheteros, both in the United
States and its territories;
(2) the roles played by each the 16 members offered
clemency by the President on August 11, 1999, in the FALN and
Los Macheteros organizations;
(3) the extent to which the FALN and Los Macheteros
organizations are associated with other known terrorist
organizations or countries suspected of sponsoring terrorism;
(4) the threat posed to the national security interests of
the United States by the FALN and Los Macheteros organizations;
(5) whether the offer of clemency to, or release of, any of
the 16 FALN or Los Macheteros members would violate, or be
inconsistent with, the United States' obligations under
international treaties and agreements governing terrorist
activity; and
(6) the effect on law enforcement's ability to solve open
cases and apprehend fugitives resulting from the offer of
clemency to the 16 FALN and Los Macheteros members, without
first requiring each of them to provide the government all
truthful information and evidence he or she has concerning open
investigations and fugitives associated with the FALN and Los
Macheteros organizations.
(c) Report.--Not later than 30 days after the date of the enactment
of this Act, the Federal Bureau of Investigation shall submit to
Congress a report on the study conducted under subsection (a).
SEC. 1593. ANTIDRUG MESSAGES ON FEDERAL GOVERNMENT INTERNET WEBSITES.
Not later than 90 days after the date of the enactment of this Act,
the head of each department, agency, and establishment of the Federal
Government shall, in consultation with the Director of the Office of
National Drug Control Policy, place antidrug messages on appropriate
Internet websites controlled by such department, agency, or
establishment which messages shall, where appropriate, contain an
electronic hyperlink to the Internet website, if any, of the Office.
SEC. 1594. STATE SCHOOLS.
(a) Amendments.--Part F of title XIV of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 8921 et seq.) is amended as
follows:
(1) Short title.--Section 14601(a) is amended by replacing
``Gun-Free'' with ``Safe'', and ``1994'' with ``1999''.
(2) Requirements.--Section 14601(b)(1) is amended by
inserting after ``determined'' the following: ``to be in
possession of felonious quantities of an illegal drug, on
school property under the jurisdiction of, or in a vehicle
operated by an employee or agent of, a local educational agency
in that State, or''.
(3) Definitions.--Section 14601(b)(4) is amended by
replacing ``Definition'' with ``Definitions'' in the catchline,
by replacing ``section'' in the matter under the catchline with
``part'', by redesignating the matter under the catchline after
the comma as subparagraph (A), by replacing the period with a
semicolon, and by adding new subparagraphs (B), (C), and (D) as
follows:
``(B) The term `illegal drug' means a controlled
substance, as defined in section 102(6) of the
Controlled Substances Act (21 U.S.C. 802(6)), the
possession of which is unlawful under the Act (21
U.S.C. 801 et seq.) or under the Controlled Substances
Import and Export Act (21 U.S.C. 951 et seq.), but does
not mean a controlled substance used pursuant to a
valid prescription or as authorized by law.
``(C) The term `illegal drug paraphernalia' means
drug paraphernalia, as defined in section 422(d) of the
Controlled Substances Act (21 U.S.C. 863(d)), except
that the first sentence of that section shall be
applied by inserting `or under the Controlled
Substances Import and Export Act (21 U.S.C. 951 et
seq.)', before the period.
``(D) The term `felonious quantities of an illegal
drug' means any quantity of an illegal drug--
``(i) possession of which quantity would,
under Federal, State, or local law, either
constitute a felony or indicate an intent to
distribute; or
``(ii) that is possessed with an intent to
distribute.''.
(4) Report to state.--Section 14601(d)(2)(C) is amended by
inserting ``illegal drugs or'' before ``weapons''.
(5) Repealer.--Section 14601 is amended by striking
subsection (f).
(6) Policy regarding criminal justice system referral.--
Section 14602(a) is amended by replacing ``served by'' with
``under the jurisdiction of'', and by inserting after ``who''
the following: ``is in possession of an illegal drug, or
illegal drug paraphernalia, on school property under the
jurisdiction of, or in a vehicle operated by an employee or
agent of, such agency, or who''.
(7) Data and policy dissemination under idea.--Section
14603 is amended by inserting ``current'' before ``policy'', by
striking ``in effect on October 20, 1994'', by striking all the
matter after ``schools'' and inserting a period thereafter, and
by inserting before ``engaging'' the following: ``possessing
illegal drugs, or illegal drug paraphernalia, on school
property, or in vehicles operated by employees or agents of,
schools or local educational agencies, or''.
(b) Compliance Date; Reporting.--(1) States shall have 2 years from
the date of enactment of this Act to comply with the requirements
established in the amendments made by subsection (a).
(2) Not later than 3 years after the date of enactment of this Act,
the Secretary of Education shall submit to Congress a report on any
State that is not in compliance with the requirements of this part.
(3) Not later than 2 years after the date of enactment of this Act,
the Secretary of Education shall submit to Congress a report analyzing
the strengths and weaknesses of approaches regarding the disciplining
of children with disabilities.
SEC. 1595. STUDENT SAFETY AND FAMILY SCHOOL CHOICE.
Subpart 1 of part A of title I of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6311 et seq.) is amended by inserting
after section 1115A of such Act (20 U.S.C. 6316) the following:
``SEC. 1115B. STUDENT SAFETY AND FAMILY SCHOOL CHOICE.
``(a) In General.--Notwithstanding any other provision of law, if a
student is eligible to be served under section 1115(b), or attends a
school eligible for a schoolwide program under section 1114, and
becomes a victim of a violent criminal offense, including drug-related
violence, while in or on the grounds of a public elementary school or
secondary school that the student attends and that receives assistance
under this part, then the local educational agency may use funds
provided under this part or under any other Federal education program
to pay the supplementary costs for such student to attend another
school. The agency may use the funds to pay for the supplementary costs
of such student to attend any other public or private elementary school
or secondary school, including a religious school, in the same State as
the school where the criminal offense occurred, that is selected by the
student's parent. The State educational agency shall determine what
actions constitute a violent criminal offense for purposes of this
section.
``(b) Supplementary Costs.--The supplementary costs referred to in
subsection (a) shall not exceed--
``(1) in the case of a student for whom funds under this
section are used to enable the student to attend a public
elementary school or secondary school served by a local
educational agency that also serves the school where the
violent criminal offense occurred, the costs of supplementary
educational services and activities described in section
1114(b) or 1115(c) that are provided to the student;
``(2) in the case of a student for whom funds under this
section are used to enable the student to attend a public
elementary school or secondary school served by a local
educational agency that does not serve the school where the
violent criminal offense occurred but is located in the same
State--
``(A) the costs of supplementary educational
services and activities described in section 1114(b) or
1115(c) that are provided to the student; and
``(B) the reasonable costs of transportation for
the student to attend the school selected by the
student's parent; and
``(3) in the case of a student for whom funds under this
section are used to enable the student to attend a private
elementary school or secondary school, including a religious
school, the costs of tuition, required fees, and the reasonable
costs of such transportation.
``(c) Construction.--Nothing in this Act or any other Federal law
shall be construed to prevent a parent assisted under this section from
selecting the public or private, including religious, elementary school
or secondary school that a child of the parent will attend within the
State.
``(d) Consideration of Assistance.--Subject to subsection (h),
assistance made available under this section that is used to pay the
costs for a student to attend a private or religious school shall not
be considered to be Federal aid to the school, and the Federal
Government shall have no authority to influence or regulate the
operations of a private or religious school as a result of assistance
received under this section.
``(e) Continuing Eligibility.--A student assisted under this
section shall remain eligible to continue receiving assistance under
this section for at least 3 academic years without regard to whether
the student is eligible for assistance under section 1114 or 1115(b).
``(f) Tuition Charges.--Assistance under this section may not be
used to pay tuition or required fees at a private elementary school or
secondary school in an amount that is greater than the tuition and
required fees paid by students not assisted under this section at such
school.
``(g) Special Rule.--Any school receiving assistance provided under
this section shall comply with title VI of the Civil Rights Act of 1964
(42 U.S.C. 2000d et seq.) and not discriminate on the basis of race,
color, or national origin.
``(h) Assistance; Taxes and Other Federal Programs.--
``(1) Assistance to families, not schools.--Assistance
provided under this section shall be considered to be aid to
families, not schools. Use of such assistance at a school shall
not be construed to be Federal financial aid or assistance to
that school.
``(2) Taxes and determinations of eligibility for other
federal programs.--Assistance provided under this section to a
student shall not be considered to be income of the student or
the parent of such student for Federal, State, or local tax
purposes or for determining eligibility for any other Federal
program.
``(i) Part B of the Individuals With Disabilities Education Act.--
Nothing in this section shall be construed to affect the requirements
of part B of the Individuals with Disabilities Education Act (20 U.S.C.
1411 et seq.).
``(j) Maximum Amount.--Notwithstanding any other provision of this
section, the amount of assistance provided under this part for a
student shall not exceed the per pupil expenditure for elementary or
secondary education, as appropriate, by the local educational agency
that serves the school where the criminal offense occurred for the
fiscal year preceding the fiscal year for which the determination is
made.''.
SEC. 1596. TRANSFER OF REVENUES.
(a) In General.--Notwithstanding any other provision of Federal
law, a State, a State educational agency, or a local educational agency
may transfer any non-Federal public funds associated with the education
of a student who is a victim of a violent criminal offense while in or
on the grounds of a public elementary school or secondary school served
by a local educational agency to another local educational agency or to
a private elementary school or secondary school, including a religious
school.
(b) Definitions.--For the purpose of subsection (a), the terms
``elementary school'', ``secondary school'', ``local educational
agency'', and ``State educational agency'' have the meanings given such
terms in section 14101 of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 8801).
SEC. 1597. INCREASED PENALTIES FOR DISTRIBUTING DRUGS TO MINORS.
Section 418 of the Controlled Substances Act (21 U.S.C. 859) is
amended--
(1) in subsection (a), by strking ``one year'' and
inserting ``3 years''; and
(2) in subsection (b), by striking ``one year'' and
inserting ``5 years''.
SEC. 1598. INCREASED PENALTY FOR DRUG TRAFFICKING IN OR NEAR A SCHOOL
OR OTHER PROTECTED LOCATION.
Section 419 of the Controlled Substances Act (21 U.S.C. 860) is
amended--
(1) in subsection (a), by striking ``one year'' and
inserting ``3 years''; and
(2) in subsection (b), by striking ``three years'' each
place that term appears and inserting ``5 years''.
SEC. 1599. SEVERABILITY.
Any provision of this title held to be invalid or unenforceable by
its terms, or as applied to any person or circumstance, shall be
construed as to give the maximum effect permitted by law, unless such
provision is held to be utterly invalid or unenforceable, in which
event such provision shall be severed from this title and shall not
affect the applicability of the remainder of this title, or of such
provision, to other persons not similarly situated or to other,
dissimilar circumstances.
TITLE XVI--PROTECTION FROM THE IMPACT OF BANKRUPTCY OF CERTAIN ELECTRIC
UTILITIES
SEC. 1601. SHORT TITLE.
This title may be cited as the ``Emergency Imported Electric Power
Price Reduction Act of 2000''.
SEC. 1602. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds that--
(1) the protection of the public health and welfare, the
preservation of national security, and the regulation of
interstate and foreign commerce require that electric power
imported into the United States be priced fairly and
competitively;
(2) the importation of electric power into the United
States is a matter vested with the public interest that--
(A) involves an essential and extensively regulated
infrastructure industry; and
(B) affects consumers, the cost of goods
manufactured and services rendered, and the economic
well-being and livelihood of individuals and society;
(3) it is essential that imported electric power be
priced--
(A) in a manner that is competitive with domestic
electric power and thereby contribute to robust and
sound national and regional economies; and
(B) not at a rate that is so high as to result in
the imminent bankruptcy of electric utilities in a
State; and
(4) the purchase of imported electric power by the Vermont
Joint Owners under the Firm Power and Energy Contract with
Hydro-Quebec dated December 4, 1987--
(A) is not consistent with the findings stated in
paragraphs (1), (2), and (3); and
(B) threatens the economic well-being of the States
and regions in which the imported electric power is
provided contrary to the public policy of the United
States as set forth in the findings stated in
paragraphs (1), (2), and (3).
(b) Purposes.--The purposes of this title are--
(1) to facilitate the public policy of the United States as
set forth in the findings stated in paragraphs (1), (2), and
(3) of subsection (a);
(2) to remove a serious threat to the economic well-being
of the States and regions in which imported electric power is
provided under the contract referred to in section 1802(a)(4);
and
(3) to facilitate revisions to the price elements of the
contract referred to in section 1802(a)(4) by declaring and
making unlawful, effective 180 days after the date of enactment
of this Act, the contract as it exists on the date of enactment
of this Act.
SEC. 1603. UNLAWFUL CONTRACT AND AMENDED CONTRACT.
(a) In General.--Effective on the date that is 180 days after the
date of enactment of this Act, the contract referred to in section
1802(a)(4), as the contract exists on the date of enactment of this
Act, shall be void.
(b) Amendment of Contract.--This title does not preclude the
parties to the contract referred to in section 1802(a)(4) from amending
the contract or entering into a new contract after the date of
enactment of this Act in a manner that is consistent with the findings
and purposes of this title.
SEC. 1604. EXCLUSIVE ENFORCEMENT.
(a) In General.--Only the Attorney General of a State in which
electric power is provided under the contract referred to in section
1802(a)(4), as the contract may be amended after the date of enactment
of this Act, may bring a civil action in United States district court
for an order that--
(1) declares the amended contract not consistent with the
findings and purposes of this title and is therefore void;
(2) enjoins performance of the amended contract; and
(3) relieves the electric utilities that are party to the
amended contract of any liability under the contract.
(b) Timing.--A civil action under subsection (a) shall be brought
not later than 1 year after the date of the amended contract or new
contract.
TITLE XVII--CONSUMER CREDIT DISCLOSURE
SEC. 1701. ENHANCED DISCLOSURES UNDER AN OPEN END CREDIT PLAN.
(a) Minimum Payment Disclosures.--Section 127(b) of the Truth in
Lending Act (15 U.S.C. 1637(b)) is amended by adding at the end the
following:
``(11)(A) In the case of an open end credit plan that
requires a minimum monthly payment of not more than 4 percent
of the balance on which finance charges are accruing, the
following statement, located on the front of the billing
statement, disclosed clearly and conspicuously, in typeface no
smaller than the largest typeface used to make other clear and
conspicuous disclosures required under this subsection:
`Minimum Payment Warning: Making only the minimum payment will
increase the interest you pay and the time it takes to repay
your balance. For example, making only the typical 2% minimum
monthly payment on a balance of $1,000 at an interest rate of
17% would take 88 months to repay the balance in full. For an
estimate of the time it would take to repay your balance,
making only minimum payments, call this toll-free number:
____________.'.
``(B) In the case of an open end credit plan that requires
a minimum monthly payment of more than 4 percent of the balance
on which finance charges are accruing, the following statement,
in a prominent location on the front of the billing statement,
disclosed clearly and conspicuously, in typeface no smaller
than the largest typeface used to make other clear and
conspicuous disclosures required under this subsection:
`Minimum Payment Warning: Making only the required minimum
payment will increase the interest you pay and the time it
takes to repay your balance. Making a typical 5% minimum
monthly payment on a balance of $300 at an interest rate of 17%
would take 24 months to repay the balance in full. For an
estimate of the time it would take to repay your balance,
making only minimum monthly payments, call this toll-free
number: ____________.'.
``(C) Notwithstanding subparagraphs (A) and (B), in the
case of a creditor with respect to which compliance with this
title is enforced by the Federal Trade Commission, the
following statement, in a prominent location on the front of
the billing statement, disclosed clearly and conspicuously, in
typeface no smaller than the largest typeface used to make
other clear and conspicuous disclosures under this subsection:
`Minimum Payment Warning: Making only the required minimum
payment will increase the interest you pay and the time it
takes to repay your balance. For example, making only the
typical 5% minimum monthly payment on a balance of $300 at an
interest rate of 17% would take 24 months to repay the balance
in full. For an estimate of the time it would take to repay
your balance, making only minimum monthly payments, call the
Federal Trade Commission at this toll-free number:
____________.' A creditor who is subject to this subparagraph
shall not be subject to subparagraph (A) or (B).
``(D) Notwithstanding subparagraph (A), (B), or (C), in
complying with any such subparagraph, a creditor may substitute
an example based on an interest rate that is greater than 17
percent. Any creditor who is subject to subparagraph (B) may
elect to provide the disclosure required under subparagraph (A)
in lieu of the disclosure required under subparagraph (B).
``(E) The Board shall, by rule, periodically recalculate,
as necessary, the interest rate and repayment period under
subparagraphs (A), (B), and (C).
``(F) The toll-free telephone number disclosed by a
creditor or the Federal Trade Commission under subparagraph
(A), (B), or (G), as appropriate, may be a toll-free telephone
number established and maintained by the creditor or the
Federal Trade Commission, as appropriate, or may be a toll-free
telephone number established and maintained by a third party
for use by the creditor or multiple creditors or the Federal
Trade Commission, as appropriate. The toll-free telephone
number may connect consumers to an automated device through
which consumers may obtain information described in
subparagraph (A), (B), or (C), by inputting information using a
touch-tone telephone or similar device, if consumers whose
telephones are not equipped to use such automated device are
provided the opportunity to be connected to an individual from
whom the information described in subparagraph (A), (B), or
(C), as applicable, may be obtained. A person that receives a
request for information described in subparagraph (A), (B), or
(C) from an obligor through the toll-free telephone number
disclosed under subparagraph (A), (B), or (C), as applicable,
shall disclose in response to such request only the information
set forth in the table promulgated by the Board under
subparagraph (H)(i).
``(G) The Federal Trade Commission shall establish and
maintain a toll-free number for the purpose of providing to
consumers the information required to be disclosed under
subparagraph (C).
``(H) The Board shall--
``(i) establish a detailed table illustrating the
approximate number of months that it would take to
repay an outstanding balance if the consumer pays only
the required minimum monthly payments and if no other
advances are made, which table shall clearly present
standardized information to be used to disclose the
information required to be disclosed under subparagraph
(A), (B), or (C), as applicable;
``(ii) establish the table required under clause
(i) by assuming--
``(I) a significant number of different
annual percentage rates;
``(II) a significant number of different
account balances;
``(III) a significant number of different
minimum payment amounts; and
``(IV) that only minimum monthly payments
are made and no additional extensions of credit
are obtained; and
``(iii) promulgate regulations that provide
instructional guidance regarding the manner in which
the information contained in the table established
under clause (i) should be used in responding to the
request of an obligor for any information required to
be disclosed under subparagraph (A), (B), or (C).
``(I) The disclosure requirements of this paragraph do not
apply to any charge card account, the primary purpose of which
is to require payment of charges in full each month.
``(J) A creditor that maintains a toll-free telephone
number for the purpose of providing customers with the actual
number of months that it will take to repay the consumer's
outstanding balance is not subject to the requirements of
subparagraphs (A) and (B).''.
(b) Regulatory Implementation.--The Board of Governors of the
Federal Reserve System (hereafter in this Act referred to as the
``Board'') shall promulgate regulations implementing the requirements
of section 127(b)(11) of the Truth in Lending Act, as added by
subsection (a) of this section. Section 127(b)(11) of the Truth in
Lending Act, as added by subsection (a) of this section, and the
regulations issued under this subsection shall not take effect until
the later of 18 months after the date of enactment of this Act or 12
months after the publication of such regulations by the Board.
(c) Study of Financial Disclosures.--
(1) In general.--The Board may conduct a study to determine
whether consumers have adequate information about borrowing
activities that may result in financial problems.
(2) Factors for consideration.--In conducting a study under
paragraph (1), the Board should, in consultation with the other
Federal banking agencies (as defined in section 3 of the
Federal Deposit Insurance Act), the National Credit Union
Administration, and the Federal Trade Commission, consider the
extent to which--
(A) consumers, in establishing new credit
arrangements, are aware of their existing payment
obligations, the need to consider those obligations in
deciding to take on new credit, and how taking on
excessive credit can result in financial difficulty;
(B) minimum periodic payment features offered in
connection with open end credit plans impact consumer
default rates;
(C) consumers make only the minimum payment under
open end credit plans;
(D) consumers are aware that making only minimum
payments will increase the cost and repayment period of
an open end credit obligation; and
(E) the availability of low minimum payment options
is a cause of consumers experiencing financial
difficulty.
(3) Report to congress.--Findings of the Board in
connection with any study conducted under this subsection shall
be submitted to Congress. Such report shall also include
recommendations for legislative initiatives, if any, of the
Board, based on its findings.
SEC. 1702. ENHANCED DISCLOSURE FOR CREDIT EXTENSIONS SECURED BY A
DWELLING.
(a) Open End Credit Extensions.--
(1) Credit applications.--Section 127A(a)(13) of the Truth
in Lending Act (15 U.S.C. 1637a(a)(13)) is amended--
(A) by striking ``consultation of tax advisor.--A
statement that the'' and inserting the following: ``tax
deductibility.--A statement that--
``(A) the''; and
(B) by striking the period at the end and inserting
the following: ``; and
``(B) in any case in which the extension of credit
exceeds the fair market value (as defined under the
Federal Internal Revenue Code) of the dwelling, the
interest on the portion of the credit extension that is
greater than the fair market value of the dwelling is
not tax deductible for Federal income tax purposes.''.
(2) Credit advertisements.--Section 147(b) of the Truth in
Lending Act (15 U.S.C. 1665b(b)) is amended--
(A) by striking ``If any'' and inserting the
following:
``(1) In general.--If any''; and
(B) by adding at the end the following:
``(2) Credit in excess of fair market value.--Each
advertisement described in subsection (a) that relates to an
extension of credit that may exceed the fair market value of
the dwelling, and which advertisement is disseminated in paper
form to the public or through the Internet, as opposed to by
radio or television, shall include a clear and conspicuous
statement that--
``(A) the interest on the portion of the credit
extension that is greater than the fair market value of
the dwelling is not tax deductible for Federal income
tax purposes; and
``(B) the consumer should consult a tax advisor for
further information regarding the deductibility of
interest and charges.''.
(b) Non-Open End Credit Extensions.--
(1) Credit applications.--Section 128 of the Truth in
Lending Act (15 U.S.C. 1638) is amended--
(A) in subsection (a), by adding at the end the
following:
``(15) In the case of a consumer credit transaction that is
secured by the principal dwelling of the consumer, in which the
extension of credit may exceed the fair market value of the
dwelling, a clear and conspicuous statement that--
``(A) the interest on the portion of the credit
extension that is greater than the fair market value of
the dwelling is not tax deductible for Federal income
tax purposes; and
``(B) the consumer should consult a tax advisor for
further information regarding the deductibility of
interest and charges.''; and
(B) in subsection (b), by adding at the end the
following:
``(3) In the case of a credit transaction described in paragraph
(15) of subsection (a), disclosures required by that paragraph shall be
made to the consumer at the time of application for such extension of
credit.''.
(2) Credit advertisements.--Section 144 of the Truth in
Lending Act (15 U.S.C. 1664) is amended by adding at the end
the following:
``(e) Each advertisement to which this section applies that relates
to a consumer credit transaction that is secured by the principal
dwelling of a consumer in which the extension of credit may exceed the
fair market value of the dwelling, and which advertisement is
disseminated in paper form to the public or through the Internet, as
opposed to by radio or television, shall clearly and conspicuously
state that--
``(1) the interest on the portion of the credit extension
that is greater than the fair market value of the dwelling is
not tax deductible for Federal income tax purposes; and
``(2) the consumer should consult a tax advisor for further
information regarding the deductibility of interest and
charges.''.
(c) Regulatory Implementation.--The Board of Governors of the
Federal Reserve System (hereafter in this title referred to as the
``Board'') shall promulgate regulations implementing the requirements
of subsections (a) and (b) of this section. Such regulations shall not
take effect until the later of 12 months after the date of enactment of
this Act or 12 months after the publication of such regulations by the
Board.
SEC. 1703. DISCLOSURES RELATED TO ``INTRODUCTORY RATES''.
(a) Introductory Rate Disclosures.--Section 127(c) of the Truth in
Lending Act (15 U.S.C. 1637(c)) is amended by adding at the end the
following:
``(6) Additional notice concerning `introductory rates'.--
``(A) In general.--Except as provided in
subparagraph (B), an application or solicitation to
open a credit card account and all promotional
materials accompanying such application or
solicitation, for which a disclosure is required under
paragraph (1), and that offers a temporary annual
percentage rate of interest, shall--
``(i) use the term `introductory' in
immediate proximity to each listing of the
temporary annual percentage rate applicable to
such account, which term shall appear clearly
and conspicuously;
``(ii) if the annual percentage rate of
interest that will apply after the end of the
temporary rate period will be a fixed rate,
state the following in a clear and conspicuous
manner in a prominent location closely
proximate to the first listing of the temporary
annual percentage rate (other than a listing of
the temporary annual percentage rate in the
tabular format described in section 122(c)) or,
if the first listing is not the most prominent
listing, then closely proximate to the most
prominent listing of the temporary annual
percentage rate, in each document and in no
smaller type size than the smaller of the type
size in which the proximate temporary annual
percentage rate appears or a 12-point type
size, the time period in which the introductory
period will end and the annual percentage rate
that will apply after the end of the
introductory period; and
``(iii) if the annual percentage rate that
will apply after the end of the temporary rate
period will vary in accordance with an index,
state the following in a clear and conspicuous
manner in a prominent location closely
proximate to the first listing of the temporary
annual percentage rate (other than a listing in
the tabular format prescribed by section
122(c)) or, if the first listing is not the
most prominent listing, then closely proximate
to the most prominent listing of the temporary
annual percentage rate, in each document and in
no smaller type size than the smaller of the
type size in which the proximate temporary
annual percentage rate appears or a 12-point
type size, the time period in which the
introductory period will end and the rate that
will apply after that, based on an annual
percentage rate that was in effect within 60
days before the date of mailing the application
or solicitation.
``(B) Exception.--Clauses (ii) and (iii) of
subparagraph (A) do not apply with respect to any
listing of a temporary annual percentage rate on an
envelope or other enclosure in which an application or
solicitation to open a credit card account is mailed.
``(C) Conditions for introductory rates.--An
application or solicitation to open a credit card
account for which a disclosure is required under
paragraph (1), and that offers a temporary annual
percentage rate of interest shall, if that rate of
interest is revocable under any circumstance or upon
any event, clearly and conspicuously disclose, in a
prominent manner on or with such application or
solicitation--
``(i) a general description of the
circumstances that may result in the revocation
of the temporary annual percentage rate; and
``(ii) if the annual percentage rate that
will apply upon the revocation of the temporary
annual percentage rate--
``(I) will be a fixed rate, the
annual percentage rate that will apply
upon the revocation of the temporary
annual percentage rate; or
``(II) will vary in accordance with
an index, the rate that will apply
after the temporary rate, based on an
annual percentage rate that was in
effect within 60 days before the date
of mailing the application or
solicitation.
``(D) Definitions.--In this paragraph--
``(i) the terms `temporary annual
percentage rate of interest' and `temporary
annual percentage rate' mean any rate of
interest applicable to a credit card account
for an introductory period of less than 1 year,
if that rate is less than an annual percentage
rate that was in effect within 60 days before
the date of mailing the application or
solicitation; and
``(ii) the term `introductory period' means
the maximum time period for which the temporary
annual percentage rate may be applicable.
``(E) Relation to other disclosure requirements.--
Nothing in this paragraph may be construed to supersede
subsection (a) of section 122, or any disclosure
required by paragraph (1) or any other provision of
this subsection.''.
(b) Regulatory Implementation.--The Board of Governors of the
Federal Reserve System (hereafter in this title referred to as the
(``Board'') shall promulgate regulations implementing the requirements
of section 127 of the Truth in Lending Act, as amended by subsection
(a) of this section. Any provision set forth in subsection (a) and such
regulations shall not take effect until the later of 12 months after
the date of enactment of this Act or 12 months after the publication of
such regulations by the Board.
SEC. 1704. INTERNET-BASED CREDIT CARD SOLICITATIONS.
(a) Internet-Based Applications and Solicitations.--Section 127(c)
of the Truth in Lending Act (15 U.S.C. 1637(c)) is amended by adding at
the end the following:
``(7) Internet-based applications and solicitations.--
``(A) In general.--In any solicitation to open a
credit card account for any person under an open end
consumer credit plan using the Internet or other
interactive computer service, the person making the
solicitation shall clearly and conspicuously disclose--
``(i) the information described in
subparagraphs (A) and (B) of paragraph (1); and
``(ii) the disclosures described in
paragraph (6).
``(B) Form of disclosure.--The disclosures required
by subparagraph (A) shall be--
``(i) readily accessible to consumers in
close proximity to the solicitation to open a
credit card account; and
``(ii) updated regularly to reflect the
current policies, terms, and fee amounts
applicable to the credit card account.
``(C) Definitions.--For purposes of this
paragraph--
``(i) the term `Internet' means the
international computer network of both Federal
and non-Federal interoperable packet switched
data networks; and
``(ii) the term `interactive computer
service' means any information service, system,
or access software provider that provides or
enables computer access by multiple users to a
computer server, including specifically a
service or system that provides access to the
Internet and such systems operated or services
offered by libraries or educational
institutions.''.
(b) Regulatory Implementation.--The Board of Governors of the
Federal Reserve System (hereafter in this title referred to as the
(``Board'') shall promulgate regulations implementing the requirements
of section 127 of the Truth in Lending Act, as amended by subsection
(a) of this section. Any provision set forth in subsection (a) and such
regulations shall not take effect until the later of 12 months after
the date of enactment of this Act or 12 months after the publication of
such regulations by the Board.
SEC. 1705. DISCLOSURES RELATED TO LATE PAYMENT DEADLINES AND PENALTIES.
(a) Disclosures Related to Late Payment Deadlines and Penalties.--
Section 127(b) of the Truth in Lending Act (15 U.S.C. 1637(b)) is
amended by adding at the end the following:
``(12) If a late payment fee is to be imposed due to the
failure of the obligor to make payment on or before a required
payment due date the following shall be stated clearly and
conspicuously on the billing statement:
``(A) The date on which that payment is due or, if
different, the earliest date on which a late payment
fee may be charged.
``(B) The amount of the late payment fee to be
imposed if payment is made after such date.''.
(b) Regulatory Implementation.--The Board of Governors of the
Federal Reserve System (hereafter in this title referred to as the
(``Board'') shall promulgate regulations implementing the requirements
of section 127 of the Truth in Lending Act, as amended by subsection
(a) of this section. Any provision set forth in subsection (a) and such
regulations shall not take effect until the later of 12 months after
the date of enactment of this Act or 12 months after the publication of
such regulations by the Board.
SEC. 1706. PROHIBITION ON CERTAIN ACTIONS FOR FAILURE TO INCUR FINANCE
CHARGES.
(a) Prohibition on Certain Actions for Failure to Incur Finance
Charges.--Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is
amended by adding at the end the following:
``(h) Prohibition on Certain Actions for Failure To Incur Finance
Charges.--A creditor of an account under an open end consumer credit
plan may not terminate an account prior to its expiration date solely
because the consumer has not incurred finance charges on the account.
Nothing in this subsection shall prohibit a creditor from terminating
an account for inactivity in 3 or more consecutive months.''.
(b) Regulatory Implementation.--The Board of Governors of the
Federal Reserve System (hereafter in this title referred to as the
(``Board'') shall promulgate regulations implementing the requirements
of section 127 of the Truth in Lending Act, as amended by subsection
(a) of this section. Any provision set forth in subsection (a) and such
regulations shall not take effect until the later of 12 months after
the date of enactment of this Act or 12 months after the publication of
such regulations by the Board.
SEC. 1707. DUAL USE DEBIT CARD.
(a) Report.--The Board may conduct a study of, and present to
Congress a report containing its analysis of, consumer protections
under existing law to limit the liability of consumers for unauthorized
use of a debit card or similar access device. Such report, if
submitted, shall include recommendations for legislative initiatives,
if any, of the Board, based on its findings.
(b) Considerations.--In preparing a report under subsection (a),
the Board may include--
(1) the extent to which section 909 of the Electronic Fund
Transfer Act (15 U.S.C. 1693g), as in effect at the time of the
report, and the implementing regulations promulgated by the
Board to carry out that section provide adequate unauthorized
use liability protection for consumers;
(2) the extent to which any voluntary industry rules have
enhanced or may enhance the level of protection afforded
consumers in connection with such unauthorized use liability;
and
(3) whether amendments to the Electronic Fund Transfer Act
(15 U.S.C. 1693 et seq.), or revisions to regulations
promulgated by the Board to carry out that Act, are necessary
to further address adequate protection for consumers concerning
unauthorized use liability.
SEC. 1708. STUDY OF BANKRUPTCY IMPACT OF CREDIT EXTENDED TO DEPENDENT
STUDENTS.
(a) Study.--
(1) In general.--The Comptroller General of the United
States shall conduct a study regarding the impact that the
extension of credit described in paragraph (2) has on the rate
of bankruptcy cases filed under title 11, United States Code.
(2) Extension of credit.--The extension of credit referred
to in paragraph (1) is the extension of credit to individuals
who are--
(A) claimed as dependents for purposes of the
Internal Revenue Code of 1986; and
(B) enrolled in postsecondary educational
institutions.
(b) Report.--Not later than 1 year after the date of enactment of
this Act, the Comptroller General of the United States shall submit to
the Senate and the House of Representatives a report summarizing the
results of the study conducted under subsection (a).
Calendar No. 807
106th CONGRESS
2d Session
S. 3046
_______________________________________________________________________
A BILL
To amend title 11 of the United States Code, and for other purposes.
_______________________________________________________________________
September 15, 2000
Read the second time and placed on the calendar
Introduced in Senate
Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 807.
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