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

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

_______________________________________________________________________

                                 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,

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 
        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)'' 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
            (3) by adding at the end the following:
    ``(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--
            ``(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, 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).''.
    (b) Determination of Tax Liability.--Section 505(a)(2) of title 11, 
United States Code, is amended--
            (1) by striking ``or'' at the end of subparagraph (A);
            (2) by striking the period at the end of subparagraph (B) 
        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 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 ``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.
                                 <all>
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