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[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1149 Reported in Senate (RS)]

                                                       Calendar No. 205

105th CONGRESS

  1st Session

                                S. 1149

_______________________________________________________________________

                                 A BILL

    To amend title 11, United States Code, to provide for increased 
               education funding, and for other purposes.

_______________________________________________________________________

                            October 9, 1997

                       Reported with an amendment

                                                       Calendar No. 205
105th CONGRESS
  1st Session
                                S. 1149

    To amend title 11, United States Code, to provide for increased 
               education funding, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 4, 1997

 Mr. Grassley (for himself, Mr. Durbin, Mr. Coverdell, Mr. Shelby, and 
   Mr. Kyl) introduced the following bill; which was read twice and 
               referred to the Committee on the Judiciary

                            October 9, 1997

                Reported by Mr. Hatch, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL

 
    To amend title 11, United States Code, to provide for increased 
               education funding, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Investment in Education Act 
of 1997''.</DELETED>

<DELETED>SEC. 2. TREATMENT OF CERTAIN LIENS.</DELETED>

<DELETED>    (a) Treatment of Certain Liens.--Section 724 of title 11, 
United States Code, is amended--</DELETED>
        <DELETED>    (1) in subsection (b), in the matter preceding 
        paragraph (1), by inserting ``(other than to the extent that 
        there is properly perfected unavoidable tax lien arising in 
        connection with an ad valorem tax on real or personal property 
        of the estate)'' after ``under this title'';</DELETED>
        <DELETED>    (2) in subsection (b)(2), after ``507(a)(1)'' and 
        before the comma following thereafter insert ``(except that 
        such expenses, other than claims for wages, salaries or 
        commissions which arise after the filing of a petition, shall 
        be limited to expenses incurred under Chapter 7 of this title 
        and shall not include expenses incurred under Chapter 11 of 
        this title)''; and</DELETED>
        <DELETED>    (3) by adding at the end the following:</DELETED>
<DELETED>    ``(e) Before subordinating a tax lien on real or personal 
property of the estate which has arisen by virtue of state law, the 
trustee shall--</DELETED>
        <DELETED>    ``(1) exhaust the unencumbered assets of the 
        estate; and</DELETED>
        <DELETED>    ``(2) in a manner consistent with section 506(c) 
        of this title, recover from property securing an allowed 
        secured claim the reasonable, necessary costs and expenses of 
        preserving or disposing of that property.</DELETED>
<DELETED>    ``(f) Notwithstanding the exclusion of ad valorem tax 
liens set forth in this Section, claims for wages, salaries and 
commissions entitled to priority under Section 507(a)(3) or claims for 
contributions to an employee benefit plan entitled to priority under 
507(a)(4) may be paid from property of the estate which secures a tax 
lien, or the proceeds of such property subject to the requirements of 
Subsection 724(e).''.</DELETED>
<DELETED>    (b) Determination of Tax Liability.--Section 505(a)(2) of 
title 11, United States Code, is amended--</DELETED>
        <DELETED>    (1) by striking ``or'' at the end of subparagraph 
        (A);</DELETED>
        <DELETED>    (2) by striking the period at the end of 
        subparagraph (B) and inserting ``; or''; and</DELETED>
        <DELETED>    (3) by adding at the end the following:</DELETED>
                <DELETED>    ``(C) the amount or legality of any amount 
                arising in connection with an ad valorem tax real or 
                personal property of the estate if the applicable 
                period for contesting or redetermining that amount 
                under any law (other than a bankruptcy law) has 
                expired.''.</DELETED>

<DELETED>SEC. 3. ENFORCEMENT OF CHILD AND SPOUSAL SUPPORT.</DELETED>

<DELETED>    Section 522(c)(1) of title 11, United States Code, is 
amended by inserting ``provided that, notwithstanding any federal or 
state law relating to the enforcement of liens or judgements on 
exempted property, exempt property shall be liable for debts of a kind 
specified in Section 523(a)(5) of this title,'' at the end of the 
subsection.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Investment in Education Act of 
1997''.

SEC. 2. TREATMENT OF CERTAIN LIENS.

    (a) Treatment of Certain Liens.--Section 724 of title 11, United 
States Code, is amended--
            (1) in subsection (b), in the matter preceding paragraph 
        (1), by inserting ``(other than to the extent that there is a 
        properly perfected unavoidable tax lien arising in connection 
        with an ad valorem tax on real or personal property of the 
        estate)'' after ``under this title'';
            (2) in subsection (b)(2), after ``507(a)(1)'', insert 
        ``(except that such expenses, other than claims for wages, 
        salaries, or commissions which arise after the filing of a 
        petition, shall be limited to expenses incurred under chapter 7 
        of this title and shall not include expenses incurred under 
        chapter 11 of this title)''; and
            (3) by adding at the end the following:
    ``(e) Before subordinating a tax lien on real or personal property 
of the estate, the trustee shall--
            ``(1) exhaust the unencumbered assets of the estate; and
            ``(2) in a manner consistent with section 506(c) of this 
        title, recover from property securing an allowed secured claim 
        the reasonable, necessary costs and expenses of preserving or 
        disposing of that property.
    ``(f) Notwithstanding the exclusion of ad valorem tax liens set 
forth in this section and subject to the requirements of subsection 
(e)--
            ``(1) claims for wages, salaries, and commissions that are 
        entitled to priority under section 507(a)(3) of this title; or
            ``(2) claims for contributions to an employee benefit plan 
        entitled to priority under section 507(a)(4) of this title,
may be paid from property of the estate which secures a tax lien, or 
the proceeds of such property.''.
    (b) Determination of Tax Liability.--Section 505(a)(2) of title 11, 
United States Code, is amended--
            (1) in subparagraph (A), by striking ``or'' at the end;
            (2) in subparagraph (B), by striking the period at the end 
        and inserting ``; or''; and
            (3) by adding at the end the following:
            ``(C) the amount or legality of any amount arising in 
        connection with an ad valorem tax on real or personal property 
        of the estate, if the applicable period for contesting or 
        redetermining that amount under any law (other than a 
        bankruptcy law) has expired.''.

SEC. 3. ENFORCEMENT OF CHILD AND SPOUSAL SUPPORT.

    Section 522(c)(1) of title 11, United States Code, is amended by 
inserting ``, except that, notwithstanding any other Federal law or 
State law relating to exempted property, exempt property shall be 
liable for debts of a kind specified in section 523(a) (1) or (5) of 
this title'' before the semicolon at the end of the paragraph.
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