Statement of Administration Policy: H.R. 6020 - Bankruptcy Amendments of 1992

(House)
(Brooks (D) Texas and Fish (R) New York)

The Administration has no objection to House passage of H.R. 6020 but will continue to work with the Congress to:

• Delete provisions establishing a nationwide "Bankruptcy Appellate Service". Use of such appellate panels should remain an option, not a requirement. The provisions could raise concerns about the constitutionality of the current bankruptcy jurisdiction scheme.
  
  
• Amend Section 401, which grants preferential treatment to a State's enforcement of certain delinquent property taxes. All other lienholders should be allowed the same treatment in this situation.
  
  
• Clarify (1) that the obligation to contribute to a pension plan continues during bankruptcy and (2) the status of claims for unpaid contributions and employer liability in bankruptcy.
  
  
• Add provisions addressing the treatment of debtors' pensions in bankruptcy.
  
  
• Add the provisions from S. 1985 which make small business investment companies (SBICs) and specialized small business investment companies (SSBICs) unable to be debtors under Chapters 7 or 11 of the Bankruptcy Code. Congress has already established an appropriate and economic system for administering the estates of defaulting SBICs and SSBICs.