Legislative Highlights Sep 1998
The House Banking Committee approved legislation (H.R. 4393) to protect financial markets when a bank or other financial institution fails. The bill would tighten up the requirements for parties to financial transactions and contracts to ensure the enforcement of netting agreements during and after the bankruptcy process. The bill, which was developed by the President's Working Group on Financial Markets, is similar to a provision found in S. 1914, the Senate's business bankruptcy bill. The language in H.R. 4393 may be added to S. 1301 on the Senate floor.
The Home Health Integrity Preservation Act of 1998 (S. 2031), introduced in May by Sen. Grassley (R-IA), amends the Social Security Act to provide that certain Medicare actions against debtors shall not be subject to a stay of bankruptcy proceedings. It also makes certain Medicare debt non-dischargeable in bankruptcy and declares that the repayment of certain Medicare debts shall be considered final and not subject to preference treatment under the Bankruptcy Code. The bill was referred to the Senate Committee on Finance.