Join Today and Benefit Daily from ABI's 35+ Years of Insolvency Expertise.
Join Today!
Help Center

Legislative Highlights Oct 2000

Journal Issue: 
Column Name: 
Journal Article: 

Reform Bill Goes Down to Wire

At press time (Sept. 21), the fate of bankruptcy legislation remains in doubt, with only two weeks left before the adjournment of the 106th Congress. On Sept. 14, Senate Majority Leader Trent Lott (R-Miss.) introduced a new bill (S. 3046) that is nearly identical to the bill the Senate passed by an 83-14 vote in February. Meanwhile, informal talks continue between Congressional leaders and the Clinton administration on a compromise bill that the president could sign.

Lott's new bill omits the minimum wage and business tax provisions that helped to hang up the bill most of this year. The new bill provides a procedural vehicle in which to substitute any new, agreed-upon language. Sen. Lott is considering a strategy to attach a new version of the bill onto one of the must-pass government spending bills; this could avoid a presidential veto.

As a new freestanding bill, S. 3046 would be subject to a renewed Senate floor amendment process and even a filibuster by Democratic opponents, such as Sen. Paul Wellstone (D-Minn.) and Edward Kennedy (D-Mass.). Sen. Lott would then have to win a cloture motion (60 votes needed) to restrict debate and block non-germane amendments. It is doubtful that this complex process can be navigated in such a compressed time frame. Sen. Wellstone and others have vowed to block any effort to attach the new bill to an appropriations bill.

Several smaller components in the bankruptcy bill also await a resolution on the omnibus bill. These items include an extension of chapter 12 (which expired on July 1), authorization of new bankruptcy judgeships and the Financial Contract Netting Improvement Act.

Journal Date: 
Sunday, October 1, 2000

Reprint Request