WASHINGTON – Major roll call votes in the week ending Jan. 30.

HOUSE Bankruptcy, abortion

Voting 265 for and 99 against, the House on Jan. 28 sent the Senate a bill (S 1920) to change the bankruptcy code’s Chapter 7 and Chapter 13 in ways that make it more difficult for consumers to use insolvency to shirk unsecured debt. It also contains a non-controversial extension of Chapter 12 protection for farmers that expired Dec. 31.

The bill was disputed over its allowing anti-abortion protestors to use bankruptcy as a shield against fines resulting from illegal actions at clinics. The Senate has voted to deny such protection, stalling a bill similar to this one in a House-Senate conference committee.

A yes vote was to pass the bill.

Rep. Tom Allen, D-1, voted no. Rep. Michael Michaud, D-2, voted yes.

Military service

Voting 170 for and 198 against, the House on Jan. 28 rejected a bid by Democrats to exempt active-duty, reservist and veterans’ families from a means test that S 1920 (above) would add to the bankruptcy code. Under the bill, most debtors earning above the median income for their region would be required to file under Chapter 13, which entails substantial repayment of unsecured debt, rather than Chapter 7, which requires little or no repayment.

A yes vote backed the military exemption.

Allen and Michaud voted yes.

Farm bankruptcy

Voting 158 for and 204 against, the House on Jan. 28 rejected an amendment to S 1920 (above) to permanently extend Chapter 12 of the bankruptcy code, which enables farmers to retain property and machinery while reorganizing debt. This was an attempt to separate the popular Chapter 12 extension from an abortion dispute in S 1920 (above).

Chapter 12 was enacted in 1986 and has been temporarily extended ten times. It expired Dec. 31. Without it, farmers would be required to seek protection mainly under the harsher terms of Chapter 13.

A yes vote was to permanently extend Chapter 12 as a clean bill.

Allen and Michaud voted yes.

Investment bankers

Voting 146 for and 203 against, the House on Jan. 28 rejected a motion concerning conflicts of interest that could harm creditors in bankruptcy proceedings. The underlying bill (S 1920) repeals a ban on investment bankers continuing to represent corporations after they file for bankruptcy. By promoting impartiality, the 65-year-old ban is designed to protect creditors. On this vote, members refused to advise House-Senate conferees to keep the ban in the final version of the bill.

A yes vote was to keep the ban.

Allen and Michaud voted yes.

SENATE

Company pensions

Voting 86 for and nine against, the Senate on Jan. 28 passed a bill (HR 3108) that would enable companies to reduce contributions to their defined-benefit pension plans over the next two years. This would shift risk from corporate treasuries to the Pension Benefit Guaranty Corp. (PBGC), the agency that insures pension plans, and thus to taxpayers.

The bill changes to a long-term corporate bond rate for calculating the liability of pension funds, saving affected companies an estimated $80 billion over two years in contributions.

Also, the bill permits hard-pressed airlines and steel companies to reduce by up to 80 percent over the two years catch-up payments required to bring their underfunded plans up to fiduciary standards. This would save them $16 billion.

Defined-benefit plans are those in which retirees receive a specific pension based on factors such as their pay level and years of service. When they fail, the taxpayer-backed PBGC, now $11.2 billion in deficit, is obligated to cover at least some of their pension liability.

A yes vote was to send the bill to a House-Senate conference.

Sen. Susan Collins, R, voted yes. Sen. Olympia Snowe, R, voted yes.

Airlines, steelmakers

Voting 67 for and 25 against, the Senate on Jan. 27 killed a bid to restrict airlines and steel companies in return for their special treatment under HR 3108 (above). The amendment sought to deny federal insurance protection to any benefits they accrue during the two years in which they reduce catch-up payments into their pension funds by an estimated $16 billion.

Judd Gregg, R-N.H., said airlines need help because “profit pressures within the…industry have been amplified by severe pricing competition, the recession, and, most importantly, by the effects of terrorism and the war in Iraq.”

A yes vote opposed insurance limits on airlines and steelmakers.

Collins voted yes. Snowe voted no.

Copy the Story Link