BAD BANKRUPTCY BILL HITS SNAG IN HOUSE

July 29, 2002

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The House adjourned for its month-long recess over the weekend without completing action on the bankruptcy reform legislation. According to congressional aides, sponsors withdrew the measure from consideration after a House-Senate compromise version lost support among pro-life Republicans,Reuters reported. The legislation was considered close to passage after an agreement among lawmakers on Thursday, but a group – led by Rep. Christopher
Smith (R-N.J.) – balked at an accommodation over protesters at abortion clinics. Staff members said the wavering gave rise to fears that Democratic support might crumble as well, and the bill’s sponsors pulled it from
consideration.

Sen. Charles Schumer (D-N.Y.) wanted to ensure that protesters who block access to medical clinics that perform abortions would be prohibited from
avoiding court-ordered fines or judgments by declaring bankruptcy. Rep. Henry Hyde (R-Ill.) wanted Schumer’s wording removed, saying it could hurt non-violent protesters who unintentionally break the law. Schumer and Hyde finally agreed to remove the term “reproductive health services” from the bill and replace it with general wording that still ensures that abortion clinic protesters are not able to hide behind bankruptcy laws. Congressional aides said Smith and other lawmakers who oppose abortion
thought the compromise gave too much away.

At the earliest, House members will vote on the bill after Labor Day – but only after returning to negotiations or trying to convince pro-life House members to concur with the Hyde-Schumer agreement. According to CongressDaily, the prospect of pre-recess Senate action on the legislation is questionable at best. A spokeswoman for Senate Majority Leader Thomas Daschle (D-S.D.) told CongressDaily on Sunday that the bankruptcy deal might not have reached the floor this week even if it had passed the House. “We have a lot on our schedule,” she said, adding, “Now that the House hasn’t passed [the bankruptcy agreement], we’re less likely to do it.”