Senate Passes Bankruptcy Reform Bill 83-14 Conference with House Next on Agenda

The Senate approved the Bankruptcy Reform Act of 2000 (S. 625) by 83-14 on Feb. 2, clearing the way for a conference committee with the House of Representatives on H.R. 833. The veto-proof margin of passage puts the
legislation in position to become law this year.

</p><p>At press time, the conferees had not been named. It is expected that the key
members of the Senate and House Judiciary Committees who have worked on the bills
will be among those selected to serve on the conference committee.While there are a
number of differences for the conferees to reconcile (see Legislative Update of this
issue), there are fewer such issues than in the 105th Congress. Another
difference in the current reform effort is that the legislation is ready for a
conference sooner in the session, permitting time for a meaningful negotiation over
the differences. However, since this year is an election year, there are fewer
legislative days than usual and thus it is important for the conference to begin
soon.

</p><p>One of the difficult issues is the minimum wage. The Clinton administration is
opposed to the Senate's version of the minimum-wage hike. The conference may drop the
issue so that it can be resolved outside the context of bankruptcy reform. Otherwise,
the administration has spoken positively about S. 625. The bill includes a number
of consumer credit disclosures not found in H.R. 833. These amend federal banking
law, rather than the Bankruptcy Code, and therefore may require the participation
of members of the Senate Banking Committee.

</p><p>Importantly, the product of the conference—the conference report—is not subject to
further amendment nor delaying tactics in the Senate. Both bills have a general
effective date of 180 days after the date of enactment—in this case, when the
president signs the bill.

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