02-05-2000

BANKRUPTCY: Senate OKs Bankruptcy Bill, Wage Hike

The Senate with an 83-14 vote on Feb. 2 gave its long-awaited approval to
legislation designed to reform the bankruptcy code and make it tougher for
debtors to get out of paying their obligations. The next step, a
conference with the House, is expected to be contentious: Among other
differences, the Senate bill contains greater consumer protections than
the House is apt to accept. Senate Democrats made clear they will vote
against a conference report unless certain provisions are cleaned up. They
also said they object to the bill's "deeply flawed"
minimum-wage language, which would boost the hourly wage by $1 over three
years, not two years as Democrats prefer. Moreover, Republicans tied the
wage increase to business tax breaks, which could be another reason for a
veto. The Senate bankruptcy bill's chief Democratic sponsor, Robert G.
Torricelli of New Jersey, called the GOP position on the minimum wage
"indefensible." The bankruptcy legislation passed by the
House last year contains no minimum-wage provisions; a separate House vote
on that issue could come by Easter.



Pamela Barnett/CongressDaily

National Journal