A major bankruptcy overhaul bill (H.R. 833) was approved, 83-14, by the Senate on February 2 (see The Source, 1/28/00). Although the measure has assumed the same number as a bill approved by the House on May 5, the Senate-approved version contains several provisions not included in the House bill.
Despite predictions that the upcoming House-Senate conference will be difficult as a result of the differences in the bills, Sen. Charles Grassley (R-IA), sponsor of the Senate version, said, “I believe we go into conference in a strong position.” Referring to the unsuccessful effort to pass bankruptcy reform in the 105th Congress, Sen. Grassley added, “We will have a spirited conference, I believe, but this year will be easier than last year.”
The Senate measure contains a package of business tax breaks, including 100 percent deductibility of health insurance for the self-employed; tax deductions for workers whose employers do not provide health coverage; and a reduction in unemployment taxes for small businesses. It also would make permanent the Welfare-to-Work Tax Credit and increase the federal hourly minimum wage by $1 over three years. In addition, the bill would increase penalties for the sale and manufacture of methamphetamine and reduce the disparity in federal sentencing for offenses involving powder and crack cocaine. None of those provisions are included in the House bill.
The Senate measure also contains separate language related to alimony and child support. Seeking to address continued concerns about the possible effects of bankruptcy reform on support payments, Sen. Grassley included language in his manager’s amendment at the recommendation of Sen. Orrin Hatch (R-UT), who negotiated the matter with the National Women’s Law Center and the National Association of Attorneys General.
Under the amendment, custody and divorce proceedings would be allowed to move forward despite the automatic stay that otherwise freezes the legal actions affecting an individual declaring bankruptcy. The amendment’s language also would increase access to information about the employers of deadbeat parents, in an effort to expedite wage withholding. In addition, the amendment would bar the approval of a bankruptcy plan or the discharge of debt until arrears are paid on outstanding support.
In addition, on February 2 the Senate considered an amendment by Sen. Charles Schumer (D-NY) to prohibit the discharge of debt resulting from a conviction under the Freedom of Access to Clinic Entrances (FACE) Act (P.L. 103-159). Against the backdrop of presidential politics and with a close vote on the amendment expected, Senate Democratic leaders asked Vice President Al Gore to provide a possible tie-breaking vote. However, his vote became unnecessary when Republican leaders instructed opponents of the amendment to support it. The amendment was approved, 80-17.
Sen. Schumer’s amendment was one of two controversial amendments that Democrats fought to have considered during the bankruptcy reform debate. The other amendment, proposed by Sen. Carl Levin (D-MI), would have barred gun manufacturers from discharging debt associated with lawsuits filed by local governments against firearms companies. The proposal was defeated, 29-68.
