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Statement of Administration Policy: S. 540 - Bankruptcy Amendments Act of 1993

April 19, 1994

STATEMENT OF ADMINISTRATION POLICY

(SENT 4/20/94)
(Senate)
(Heflin (D) Alabama and 29 others)

The Administration supports Senate passage of S. 540, but will seek amendments during further congressional consideration of the bill.

The Administration supports speeding and simplifying the reorganization process for small businesses under chapter 11 of the Bankruptcy Code, and hopes to work closely with the Congress to achieve this goal. The Administration recommends that this goal be achieved by amending Chapter 11 to create a two-track system that would simplify and facilitate small business reorganizations. The Administration appreciates Senator Heflin's commitment to offer an amendment to achieve this goal. The amendment would replace the provisions of S. 540 that would create a new Chapter 10 of the Bankruptcy Code for small business bankruptcies.

The Administration opposes the provision in S. 540 raising the debt limits for eligibility in Chapter 13. Under current law and procedure, Chapter 13 petitions too often result in the total non-payment of tax claims. Until the requirements for the satisfaction of such claims are made more effective, the Administration does not support increasing the debt limits for Chapter 13 eligibility.

The Administration would support amendments to S. 540 that would assure that pension plan minimum funding requirements are met before a debtor leaves bankruptcy protection.

Pay-As-You-Go Scoring

S. 540 would affect outlays and receipts; therefore, it is subject to the pay-as-you-go requirement of the Omnibus Reconciliation Budget Act (OBRA) of 1990.

OMB's preliminary scoring estimates of this bill are presented in the table below. Final scoring of this legislation may deviate from these estimates. If S. 540 were enacted, final OMB scoring estimates would be published within 5 days of enactment, as required by OBRA. The cumulative effects of all enacted legislation on direct spending and receipts will be reported to Congress at the end of the congressional session, as required by OBRA.

PAY-AS-YOU-GO ESTIMATES
(in millions)

1994

1995

1996

1997

1998

1994-1998

Outlays

-20

0

0

0

0

-20

Receipts

0

-1

-1

-1

-1

-4

Net Deficit Effect

-20

+1

+1

+1

+1

-16

William J. Clinton, Statement of Administration Policy: S. 540 - Bankruptcy Amendments Act of 1993 Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/329940

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