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March 25, 2005
Bankruptcy bill passes Senate
By SAMANTHA YOUNG
and ERIK LACAYO The Senate voted 74-25 to approve the measure. Last year slightly more than 1.6 million people filed for bankruptcy in federal court, according to the American Bankruptcy Institute. The legislation creates an income-based test to determine whether people who file for bankruptcy should be able to repay some or all of their debt. Filers with low assets would be allowed to file for Chapter 7 bankruptcy, allowing them to wipe out their debts, while others would be led into court-ordered repayment proceedings. Supporters of the bill said many Americans who file for bankruptcy are able to repay and should be required to do so. Critics argued the bill was flawed in several ways, including containing little recourse for debtors who are trapped by high medical bills or job losses. Sen. John Ensign, R-Nev., and Sen. Harry Reid, D-Nev., voted for the bill. Abortion amendment blocked Senators defeated an amendment by Sen. Chuck Schumer, D-N.Y., that would have prevented anti-abortion protesters from using bankruptcy to avoid paying court-ordered fines. Schumer said those who use violence to achieve political goals should not escape penalty. Republicans described the provision as a "poison pill," which has derailed earlier efforts to reform bankruptcy laws. They argued the measure was unnecessary because courts already refuse to let defendants off the hook on fines and judgments. The Schumer amendment was defeated 46-53. Reid voted for the amendment. Ensign voted against it. Minimum wage hikes rejected Senators also beat back an amendment by Sen. Edward Kennedy, D-Mass., that would have raised the minimum wage over two years. Kennedy's amendment would have increased the minimum wage to $7.25 an hour. He said the current $5.15 an hour minimum was not enough for low-income workers to make ends meet. Critics said a mandatory wage increase would hurt small businesses, and in some cases force them to fire staff because of increased overhead costs. The Senate defeated the Kennedy amendment, 49-46. Reid voted for the amendment. Ensign did not vote. Senators also killed a competing minimum wage proposal by Sen. Rick Santorum, R-Pa. It would have raised the minimum to $6.25 an hour over 18 months and provide $4.3 billion in tax breaks for small businesses. Santorum said tax benefits would cushion the blow of the higher wage requirements. Opponents said provisions in his amendments would harm workers. The Santorum amendment was defeated, 38-61. Ensign voted for the amendment. Reid voted against it. House approves highway funding The House passed a $283.9 billion highway bill that funds road construction, public transportation and safety programs until 2009. Lawmakers overwhelming approved the measure, which included more than 3,600 projects earmarked for local initiatives. They also bumped funding for states that historically have paid more in gasoline taxes than they have returned from the federal government in road dollars. Before finalizing the bill, lawmakers approved an amendment that would hold rental car drivers responsible for accidents rather than rental car companies. Rep. Sam Graves, R-Mo., introduced the amendment, which was sought by rental companies that said they are left holding the bag for massive claims when uninsured drivers cannot pay. Graves said the amendment will save consumers money because they are now charged fees to cover rental firms' high liability insurance costs. Opponents said the provision would nullify the laws of 15 states and the District of Columbia that allow rental car companies to lease cars to uninsured drivers. Under those state laws, rental car companies assume responsibility when an uninsured driver causes an accident and is unable to afford the repairs and legal damages. "If the amendment were to pass, the innocent victim would have no recourse, no insurance company to sue," said Rep. Jerry Nadler, D-N.Y. The Graves amendment passed, 218-201. Reps. Jim Gibbons and Jon Porter, both R-Nev., voted for the amendment. Rep. Shelley Berkley, D-Nev., voted against it. |
