105TH CONGRESS

1ST SESSION S. 1149

AN ACT

To amend title 11, United States Code, to provide for

increased education funding, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Investment in Edu5 cation Act of 1997’’.
2

S 1149 ES

1 SEC. 2. TREATMENT OF CERTAIN LIENS.

2 (a) TREATMENT OF CERTAIN LIENS.—Section 724

3 of title 11, United States Code, is amended—

4 (1) in subsection (b), in the matter preceding

5 paragraph (1), by inserting ‘‘(other than to the ex6 tent that there is a properly perfected unavoidable

7 tax lien arising in connection with an ad valorem tax

8 on real or personal property of the estate)’’ after

9 ‘‘under this title’’;

10 (2) in subsection (b)(2), after ‘‘507(a)(1)’’, in11 sert ‘‘(except that such expenses, other than claims

12 for wages, salaries, or commissions which arise after

13 the filing of a petition, shall be limited to expenses

14 incurred under chapter 7 of this title and shall not

15 include expenses incurred under chapter 11 of this

16 title)’’; and

17 (3) by adding at the end the following:

18 ‘‘(e) Before subordinating a tax lien on real or per19 sonal property of the estate, the trustee shall—

20 ‘‘(1) exhaust the unencumbered assets of the

21 estate; and

22 ‘‘(2) in a manner consistent with section 506(c)

23 of this title, recover from property securing an al24 lowed secured claim the reasonable, necessary costs

25 and expenses of preserving or disposing of that prop26 erty.
3

S 1149 ES

1 ‘‘(f) Notwithstanding the exclusion of ad valorem tax

2 liens set forth in this section and subject to the require3 ments of subsection (e)—

4 ‘‘(1) claims for wages, salaries, and commis5 sions that are entitled to priority under section

6 507(a)(3) of this title; or

7 ‘‘(2) claims for contributions to an employee

8 benefit plan entitled to priority under section

9 507(a)(4) of this title,

10 may be paid from property of the estate which secures

11 a tax lien, or the proceeds of such property.’’.

12 (b) DETERMINATION OF TAX LIABILITY.—Section

13 505(a)(2) of title 11, United States Code, is amended—

14 (1) in subparagraph (A), by striking ‘‘or’’ at

15 the end;

16 (2) in subparagraph (B), by striking the period

17 at the end and inserting ‘‘; or’’; and

18 (3) by adding at the end the following:

19 ‘‘(C) the amount or legality of any amount aris20 ing in connection with an ad valorem tax on real or

21 personal property of the estate, if the applicable pe22 riod for contesting or redetermining that amount

23 under any law (other than a bankruptcy law) has ex24 pired.’’.
4

S 1149 ES

1 SEC. 3. ENFORCEMENT OF CHILD AND SPOUSAL SUPPORT.

2 Section 522(c)(1) of title 11, United States Code, is

3 amended by inserting ‘‘, except that, notwithstanding any

4 other Federal law or State law relating to exempted prop5 erty, exempt property shall be liable for debts of a kind

6 specified in section 523(a) (1) or (5) of this title’’ before

7 the semicolon at the end of the paragraph.

Passed the Senate October 30, 1997.

Attest:

Secretary.
105TH CONGRESS

1ST SESSION S. 1149

AN ACT

To amend title 11, United States Code, to provide

purposes.for increased education funding, and for other