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If H.R. 333 again becomes caught up in a long and contentious debate, I will urge that Title IX be quickly pursued as an independent measure. If there were a major problem with the machinery of the securities system, the country would be hard pressed to resolve it expeditiously and easily without the enactment of these netting provisions. Instability and delay in such a circumstance could prove a recipe for major economic trouble. Our financial system has undergone such fundamental change that existing legal structures are woefully inadequate for handling an emergency--
[Page: H588] GPO's PDF
The updating amendments Mr. OXLEY and I are proposing ensure that Title IX will be better tailored for the present and well-integrated with the Commodities Exchange Modernization Act of 2000. They will also establish a ready template for translating Title IX into an independent bill should that become necessary.
Ms. JACKSON-LEE of Texas. Mr. Chairman, I yield back the balance of my time.
Mr. OXLEY. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, let me thank again the chairman of the Committee on the Judiciary, the gentleman from Wisconsin (Mr. SENSENBRENNER), for his leadership on this issue, as well as my colleague, the gentleman from New York (Mr. LAFALCE), and the ranking member of the Committee.
Mr. Chairman, I am pleased to yield such time as he may consume to the gentleman from Alabama (Mr. BACHUS).
Mr. BACHUS. Mr. Chairman, I rise in support of the amendment offered by the distinguished chairman and by his colleague, the ranking member, the gentleman from New York (Mr. LAFALCE).
Among other things, the amendment modifies the bill's so-called netting provisions to conform them to important changes made to Federal law in the Commodities Futures Modernization Act which was signed into law December 21, 2000.
I might point out to my colleagues that the provisions in this amendment were passed by this House in a bipartisan overwhelming vote last year, but they never made it into law. What they do is promote an orderly unwinding of financial contracts in those instances in which one party to a derivative contract becomes insolvent and those contracts go into a bankruptcy proceeding. This avoids that possibility.
We all found out from the long-term capital management situation, and that was 1998, a major hedge fund, what a situation that was. We want to avoid that in the future, tying these contracts up in a long bankruptcy proceeding.
The Commodity Futures Modernization Act made a number of important changes to the regulation of over-the-counter derivatives. The law expressly excluded certain derivative contracts from the Commodities Exchange Act, and allowed for the formation of new clearing entities. The amendment before the House now would update the ``financial contracts'' definition and the netting provisions to reflect new market developments in the swaps industry and the changes made in the Commodity Futures Modernization Act.
Let me again commend the chairman and the ranking member for bringing this important amendment to the floor today, and I urge my colleagues to support its adoption. If we do not do it, the next time we have a major financial player threatened with insolvency we will find ourselves needing to pass this, and we might as well get ahead of the game.
Mr. OXLEY. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I again thank the chairman of the Subcommittee on Financial Institutions of the Committee on Financial Services for his good work in this area.
Mr. Chairman, in summary, there were some other changes that the President's working group had requested that are not contained in this amendment, but we will hopefully reserve the right to seek those changes in conference, working very closely with all of the major players in this historic legislation.
Mr. OXLEY. Mr. Speaker, I yield back the balance of my time.
The CHAIRMAN pro tempore. The question is on the amendment offered by the gentleman from Ohio (Mr. OXLEY).
The amendment was agreed to.
The CHAIRMAN pro tempore. It is now in order to consider amendment No. 6 printed in House Report 107-4.
AMENDMENT NO. 6 OFFERED BY MS. JACKSON-LEE OF TEXAS
Ms. JACKSON-LEE of Texas. Mr. Chairman, I offer an amendment.
The CHAIRMAN pro tempore. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 6 offered by Ms. JACKSON-LEE of Texas:
Page 8, after line 11, insert the following (and make such technical and conforming changes as may be appropriate):
(III) by striking ``whose debts are primarily consumer debts'';
Page 10, line 7, strike ``the continuation of''.
Page 10, after line 22, insert the following (and make such technical and conforming changes as may be appropriate):
``(II) In addition, if the debtor does have health insurance benefits the debtor's monthly expenses shall include an allowance to pay for reasonable medical expenses, as circumstances require, not covered by the insurance for the debtor, the dependents of the debtor, and the spouse of the debtor.
Page 10, beginning on line 24, strike ``actual administrative expenses'' and insert ``reasonable expense''.
Page 11, line 1, insert ``or public'' after ``private''.
Page 11, after line 4, insert the following:
``(V) In addition, the debtor's monthly expenses shall include expenses necessary for the care of foster children in the custody of the debtor.
Page 11, beginning on line 1, strike ``if'' and all that follows through ``why'' on line 3.
Page 12, strike lines 2 through 6, and insert the following:
``(B)(i) In any proceeding brought under this subsection, the presumption of abuse may be overcome if the court finds special circumstances indicating by a preponderance of the evidence that the debtors income should be adjusted to less than the current monthly income, that the debtors reasonably necessary expenses are greater than those allowed by the Internal Revenue Service guidelines, or that the debtors financial difficulties were caused by circumstances beyond the debtors control including medical problems.
Page 13, after line 3, insert the following:
``(v) A debtor whose current monthly income is equal to or less than the Federal Income Poverty Guidelines and has been for the 1-year period preceding the date of the filing of the petition may, in lieu of the requirements of clauses (iv) and (v) of section 521(a)(1)(B) and subsections (e), (f), and (g) of section 521, file with the court written evidence showing the debtors income for the 1-year period before the date of the filing of the petition and a declaration under penalty of perjury that the debtors income meets the test of this clause for that period.
Page 24, line 2, strike ``current monthly income'' and insert ``projected disposable income''.
Page 17, lines 6, 11, and 16, insert ``(adjusted to reflect the percentage change in the Consumer Price Index for All Urban Consumers, published by the Department of Labor, for each subsequent year during which such median family income is not reported by the Bureau of the Census)'' after ``Census''.
Page 18, lines 2, 7, and 12, insert ``(adjusted to reflect the percentage change in the Consumer Price Index for All Urban Consumers, published by the Department of Labor, for each subsequent year during which such median family income is not reported by the Bureau of the Census)'' after ``Census''.
Page 20, lines 18 and 23, insert ``(adjusted to reflect the percentage change in the Consumer Price Index for All Urban Consumers, published by the Department of Labor, for each subsequent year during which such median family income is not reported by the Bureau of the Census)'' after ``Census''.
Page 21, lines 9 and 14, insert ``(adjusted to reflect the percentage change in the Consumer Price Index for All Urban Consumers, published by the Department of Labor, for each subsequent year during which such median family income is not reported by the Bureau of the Census)'' after ``Census''.
Page 25, lines 9, 14, and 19, insert ``(adjusted to reflect the percentage change in the Consumer Price Index for All Urban Consumers, published by the Department of Labor, for each subsequent year during which such median family income is not reported by the Bureau of the Census)'' after ``Census''.
Page 160, lines 14, 19, and 24, insert ``(adjusted to reflect the percentage change in the Consumer Price Index for All Urban Consumers, published by the Department of Labor, for each subsequent year during which such median family income is not reported by the Bureau of the Census)'' after ``Census''.
Page 161, lines 9, 14, and 19, insert ``(adjusted to reflect the percentage change in the Consumer Price Index for All Urban Consumers, published by the Department of Labor, for each subsequent year during which such median family income is not reported by the Bureau of the Census)'' after ``Census''.
Page 162, lines 17 and 23, insert ``(adjusted to reflect the percentage change in the Consumer Price Index for All Urban Consumers, published by the Department of Labor, for each subsequent year during which such median family income is not reported by the Bureau of the Census)'' after ``Census''.
Page 163, line 4, insert ``(adjusted to reflect the percentage change in the Consumer Price Index for All Urban Consumers, published by the Department of Labor, for each subsequent year during which such median family income is not reported by the Bureau of the Census)'' after ``Census''.
[Page: H589] GPO's PDF
Beginning on page 45, strike line 24 and all that follows through line 9 on page 61, and insert the following:
(1) in subsection (c)(2)--
(A) in subparagraph (A) by striking ``and'' at the end;
(B) in subparagraph (B) by adding ``and'' at the end; and
(C) by adding at the end the following:
``(C) such agreement contains a clear and conspicuous statement which advises the debtor what portion of the debt to be reaffirmed is attributable to principal, interest, late fees, creditors attorney fees, expenses or other costs relating to the collection of the debt;'';
(2) in subsection (c)(6)(B), by inserting ``or is a debt described in subsection (c)(7)'' after ``real property''; and
(3) in subsection (c)--
(A) in paragraph (5) by striking ``and'' at the end;
(B) in paragraph (6) by striking the period and inserting ``; and'' at the end; and
(C) by adding at the end the following:
``(7) in a case concerning an individual, if the consideration for such agreement is based in whole or in part on an unsecured consumer debt, or is based in whole or in part upon a debt for an item of personalty the value of which at point of purchase was $1,000 or less, and in which the creditor asserts a purchase money interest, the court, approves such agreement as--
``(A) in the best interest of the debtor in light of the debtors income and expenses;
``(B) not imposing an undue hardship on the debtors future ability to pay for the needs of children and other dependents (including court ordered support);
``(C) not requiring the debtor to pay the creditors attorneys fees, expenses or other costs relating to the collection of debt;
``(D) not entered into to protect property that is necessary for the care and maintenance of children or other dependents that would have nominal value on repossession;
``(E) not entered into after coercive threats or actions by the creditor in the creditors course of dealings with the debtor; and
``(F) not unfair because excessive in amount based upon the value of the collateral.'';
(4) in subsection (d)(2)--
(A) by striking ``subsection (c)(6)'' and inserting ``paragraphs (6) and (7) of subsection (c)'', and
(B) by striking ``, if the consideration for such agreement is based in whole or in part on a consumer debt that is not secured by real property of the debtor after of this section and adding at the end as applicable''.
Page 86, strike lines 1 through 5 (and make such technical and conforming changes as may be appropriate).
Page 121, after line 16, insert (and make such technical and conforming changes as may be appropriate):
SEC. 231. PRIVACY POLICY ENFORCEMENT.
(a) FTC AND STATE ATTORNEYS GENERAL AUTHORITY TO PROTECT PERSONAL PRIVACY.--
(1) IN GENERAL.--Chapter 3 of title 11, United States Code, is amended by inserting after section 307 the following new section:``§308. Personally identifiable information; authority of Federal Trade Commission and State attorneys general
``(a) FTC AUTHORITY.--The Federal Trade Commission may appear and be heard in any case or proceeding under this title in which personally identifiable information is, or is proposed to be, used, sold, leased, or otherwise disclosed in violation of section 363(b)(3).
``(b) AUTHORITY OF STATE ATTORNEYS GENERAL.--A State, as parens patriae, may appear and be heard in any case or proceeding under this title in which--
``(1) the attorney general of a State has reason to believe that the personally identifiable information of the residents of that State has been or is threatened or adversely affected; and
``(2) personally identifiable information is, or is proposed to be, used, sold, leased, or otherwise disclosed in violation of section 363(b)(3).
``(c) NO AFFECT ON OTHER AUTHORITY.--Nothing in this section shall be construed to limit the authority of the Federal Trade Commission or a State to appear and be heard in any case or proceeding--
``(1) as a creditor where the Federal Trade Commission or a State asserts a claim against a debtor based on alleged violations of statutes within the enforcement jurisdiction of the Federal Trade Commission or the State; or
``(2) as a party in interest concerning other matters or issues within the jurisdiction of the Federal Trade Commission or the State.''.
(2) CLERICAL AMENDMENT.--The table of sections for chapter 3 of title 11, United States Code, is amended by inserting after the item relating to section 307 the following:
``308. Personally identifiable information; authority of Federal Trade Commission and State attorneys general.''.
(b) LIMITATION ON SALE, USE, OR LEASE OF CERTAIN PERSONALLY IDENTIFIABLE INFORMATION.--Section 363(b) of title 11, United States Code, is amended by adding at the end the following:
``(3)(A) If the debtor is not an individual, personally identifiable information in the possession of the debtor that relates to any other person may only--
``(i) be used by the debtor--
``(I) in accordance with the terms of the debtor's privacy policy in effect at the time of the bankruptcy filing; or
``(II) if no such privacy policy relating to the personally identifiable information was in effect at the time of the bankruptcy filing, in accordance with subparagraph (B); and
``(ii) be sold, leased, or otherwise disclosed by the debtor--
``(I) to a nondebtor party; and
``(II) in accordance with subparagraph (B).
``(B) In the case of the use, sale, lease, or other disclosure of personally identifiable information, as described in clause (i)(II) or (ii) of subparagraph (A), the debtor shall provide prior clear and conspicuous notice to the person to whom the personally identifiable information relates of--
``(i) the proposed use, sale, lease, or other disclosure of the information;
``(ii) the identity of the purchaser, lessee, or other recipient of the information, if applicable;
``(iii) the privacy policy of the purchaser, lessee, or other recipient of the information, if applicable; and
``(iv) the right of that person to choose not to have the information used or transferred, and an opportunity to choose not to have the information used or transferred.
``(C) The bankruptcy court, after notice to all parties in interest and the Federal Trade Commission and hearing--
``(i) shall establish mechanisms for providing clear and conspicuous notice and choice referred to in subparagraph (B); and
``(ii) may tailor such mechanisms to the specific circumstances of a case, as determined by the bankruptcy court.''.
(c) DEFINITION OF PERSONALLY IDENTIFIABLE INFORMATION.--Section 101 of title 11, United States Code, is amended by inserting after paragraph (41) the following:
``(41A) `personally identifiable information' means, with respect to the person to whom the information relates--
``(A) a first name, initials, and last name of that person, whether given at birth or adoption, assumed, or legally changed;
``(B) a home or other physical address for that person, including street name and name of city or town;
``(C) an e-mail address for that person;
``(D) a telephone number for that person;
``(E) a social security account number for that person;
``(F) a credit card account number for that person;
``(G) a birth date, birth certificate number, or place of birth for that person;
``(H) information concerning that person that the debtor collects and combines with any other identifier described in this paragraph; and
``(I) any other identifying information relating to that person that permits the physical or electronic contacting or identification of that person, as determined by the bankruptcy court.''.
Page 198, strike lines 3 and 4 and insert the following:
308, as added by this Act, the following:``§309. Debtor reporting requirements
Page 199, strike line 15 and all that follows through the end of the material between lines 15 and 16 and insert the following:
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