Bankruptcy Bill Temporarily in Limbo

April 2, 2001

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According to CongressDaily, as reported by the American Bankruptcy Institute, the bankruptcy overhaul legislation, which was approved this year by both the House and Senate, has become victim to a partisan feud between Senate leaders over the proper ratio of Republicans versus Democrats on conference committees. Senate Minority Leader Tom Daschle (D-S.D.) has insisted on equal party representation in the conference committee, while Majority Leader Trent Lott (R-Miss.) is resisting. As a result, bankruptcy reform, the first measure to require a conference this year, has been left in limbo.“Let’s just say we haven’t made a whole lot of progress,” said Daschle.

Sources said they believe that Daschle is trying to delay conference proceedings and then re-open the legislation under a Democratic-majority Senate, which is a possibility if the ailing Sen. Strom Thurmond (R-S.C.) steps down and is replaced with a Democrat.

Given that possibility, Sam Gerdano of the American Bankruptcy Institute said he finds the GOP strategy “puzzling. I realize they don’t want to set a precedent, but they also might not be in the majority if they wait until July, at which point, [conference ratios] are a moot point.” Senate Finance Chairman Charles Grassley (R-Iowa), who sponsored the bankruptcy bill, said that he believes a conference was needed, but suggested he was open to other strategies. Sources said Republicans are again toying with the idea of a “shadow conference.”

We can only hope Sen. Daschle is successful in delaying the conference and a Democratic reconsideration of the bill deletes some of the more onerous, anti-consumer provisions.