Legislative Highlights Jul/Aug 1999

The <b>Bankruptcy Reform Act</b> of 1999 (S. 625) remains pending in the Senate on the eve
of the month-long August recess. Congress returns on September 8. Negotiations continue
behind the scenes on topics such as reaffirmations and credit card statement disclosures.

</p><p>The General Accounting Office (GAO) has released a study on the use of the unlimited <b>homestead exemptions in Texas and Florida.</b> The study looked at 16,531 cases closed in
two districts in the two states and found only 156 cases involved exemptions of more than
$100,000. The study was requested by Sens. Herb Kohl (D-WI) and Jeff Sessions (D-AL);
they are supporters of an amendment to S. 625 that would cap the exemption at $100,000.
The House version of the bill (H.R. 833) contains a $250,000 cap, but allows states to opt
out of the cap by a specific subsequent enactment.

</p><p>The FCC's effort to exempt certain <b>telecommunications licenses</b> (PCS C-block) from
the reach of Title 11 is close to winning approval in the Senate. The controversial provision
(§618), included in the giant Commerce-Justice-State spending bill, would allow the FCC to
reclaim and re-auction the licenses, even those in a pending bankruptcy case. The bill (S.
1217) is nearing approval by the Senate. No such provision is present in the House bill, so
it could be struck from a final conference report.

</p><p>Join members of the Web Site Editorial Board for an <b>online discussion of the key
business bankruptcy provisions</b> in the reform bills (S. 625 and H.R. 833). Topics
include the anti-Delaware venue provision, special rules for small business and single-sset
real estate cases, bankruptcy appellate procedure, reclamation, treatment of asset-backed
securitization, disinterestedness, reversal of the <i>Catapult</i> decision and more.

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