The Senate approved the Bankruptcy Reform Act of 2000 (S. 625) by 83-14 on Feb. 2, clearing the way for a conference committee with the House of Representatives on H.R. 833. The veto-proof margin of passage puts the legislation in position to become law this year.

At press time, the conferees had not been named. It is expected that the key members of the Senate and House Judiciary Committees who have worked on the bills will be among those selected to serve on the conference committee.While there are a number of differences for the conferees to reconcile (see Legislative Update of this issue), there are fewer such issues than in the 105th Congress. Another difference in the current reform effort is that the legislation is ready for a conference sooner in the session, permitting time for a meaningful negotiation over the differences. However, since this year is an election year, there are fewer legislative days than usual and thus it is important for the conference to begin soon.

One of the difficult issues is the minimum wage. The Clinton administration is opposed to the Senate's version of the minimum-wage hike. The conference may drop the issue so that it can be resolved outside the context of bankruptcy reform. Otherwise, the administration has spoken positively about S. 625. The bill includes a number of consumer credit disclosures not found in H.R. 833. These amend federal banking law, rather than the Bankruptcy Code, and therefore may require the participation of members of the Senate Banking Committee.

Importantly, the product of the conference—the conference report—is not subject to further amendment nor delaying tactics in the Senate. Both bills have a general effective date of 180 days after the date of enactment—in this case, when the president signs the bill.