,,ii  #aaeth ,,congress  #ast ,session  
,s4 #abcg  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,may #be1      
#bjag,mr4 ,grassley 7for himself and    
,mr4 ,franken7 introduced the following 
bill2 which was read twice and referred 
to the ,committee on the ,judiciary  ,a 
,,bill  ,to amend title #aa of the      
,united ,states ,code to clarify the    
rule allowing discharge as a nonpriority
 claim of governmental claims arising   
from the disposition of farm assets     
under chapter #ab bankruptcies4  #a4    
,short title ,this ,act may be cited as 
the ,family ,farmer ,bankruptcy         
,clarification ,act of #bjag4  #b4      
,clarification of rule allowing         
discharge to governmental claims arising
 from the disposition of farm assets    
under chapter #ab bankruptcies  7a7 ,in 
general ,subchapter ,,ii of chapter #ab 
of title #aa1 ,united ,states ,code1 is 
amended by adding at the end the        
following3  #abcb4 ,claim by a          
governmental unit based on the          

disposition of property used in a       
farming operation  7a7 ,any unsecured   
claim of a governmental unit against the
 debtor or the estate that arises before
 the filing of the petition1 or that    
arises after the filing of the petition 
and before the debtor's discharge under 
section #abbh1 as a result of the sale1 
transfer1 exchange1 or other disposition
 of any property used in the debtor's   
farming operation--  7#a7 shall be      
treated as an unsecured claim arising   
before the date on which the petition is
 filed2  7#b7 shall not be entitled to  
priority under section #ejg2  7#c7 shall
 be provided for under a plan2 and  7#d7
 shall be discharged in accordance with 
section #abbh4  7b7 ,for purposes of    
applying sections #abbe7;a77#d71        
#abbh7;b77#b71 and #abbi7;b77#a7 to a   
claim described in subsection 7a7 of    
this section1 the amount that would be  
paid on such claim if the estate of the 
debtor were liquidated in a case under  
chapter #g of this title shall be the   

amount that would be paid by the estate 
in a chapter #g case if the claim were  
an unsecured claim arising before the   
date on which the petition was filed and
 were not entitled to priority under    
section #ejg4  7c7 ,for purposes of     
applying sections #ebc7;a71             
#abbh7;a77#b71 and #abbh7;c77#b7 to a   
claim described in subsection 7a7 of    
this section1 the claim shall not be    
treated as a claim of a kind specified  
in section #ebc7;a77#a74  7d7 7#a7 ,a   
governmental unit may file a proof of   
claim for a claim described in          
subsection 7a7 that arises after the    
date on which the petition is filed4    
7#b7 ,if a debtor files a tax return    
after the filing of the petition for a  
period in which a claim described in    
subsection 7a7 arises1 and the claim    
relates to the tax return1 the debtor   
shall serve notice of the claim on the  
governmental unit charged with the      
responsibility for the collection of the
 tax at the address and in the manner   

designated in section #eje7;b77#a74     
,notice under this paragraph shall state
 that the debtor has filed a petition   
under this chapter1 state the name and  
location of the court in which the case 
under this chapter is pending1 state the
 amount of the claim1 and include a copy
 of the filed tax return and            
documentation supporting the calculation
 of the claim4  7#c7 ,if notice of a    
claim has been served on the            
governmental unit in accordance with    
paragraph 7#b71 the governmental unit   
may file a proof of claim not later than
 #ahj days after the date on which such 
notice was served4 ,if the governmental 
unit has not filed a timely proof of the
 claim1 the debtor or trustee may file  
proof of the claim that is consistent   
with the notice served under paragraph  
7#b74 ,if a proof of claim is filed by  
the debtor or trustee under this        
paragraph1 the governmental unit may not
 amend the proof of claim4  7#d7 ,a     
claim filed under this subsection shall 

be determined and shall be allowed under
 subsection 7a71 7b71 or 7c7 of section 
#ejb1 or disallowed under subsection 7d7
 or 7e7 of section #ejb1 in the same    
manner as if the claim had arisen       
immediately before the date of the      
filing of the petition4  4  7b7         
,technical and conforming amendments    
7#a7 ,in general ,subchapter ,,ii of    
chapter #ab of title #aa1 ,united       
,states ,code1 is amended--  7,a7 in    
section #abbb7;a7-- 7i7 in paragraph    
7#b71 by striking unless-- and all that 
follows through the holder and inserting
 unless the holder2  7ii7 in paragraph  
7#c71 by striking and at the end2  7iii7
 in paragraph 7#d71 by striking the     
period at the end and inserting 2 and2  
and  7iv7 by adding at the end the      
following3  7#e7 subject to section     
#abcb1 provide for the treatment of any 
claim by a governmental unit of a kind  
described in section #abcb7;a74  2  7,b7
 in section #abbh--  7i7 in subsection  
7a7--  7,i7 in the matter preceding     

paragraph 7#a7--  7aa7 by inserting a   
comma after all debts provided for by   
the plan2 and  7bb7 by inserting a comma
 after allowed under section #ejc of    
this title2 and  7,,ii7 in paragraph    
7#b71 by striking the kind and all that 
follows and inserting a kind specified  
in section #ebc7;a7 of this title1      
except as provided in section           
#abcb7;c742 and  7ii7 in subsection     
7c77#b71 by inserting 1 except as       
provided in section #abcb7;c7 before the
 period at the end2 and  7,c7 in section
 #abbi7;a7--  7i7 in paragraph 7#b71 by 
striking or at the end2  7ii7 in        
paragraph 7#c71 by striking the period  
at the end and inserting 2 or2 and      
7iii7 by adding at the end the          
following3  7#d7 provide for the payment
 of a claim described in section        
#abcb7;a7 that arose after the date on  
which the petition was filed4  4  7#b7  
,table of sections ,the table of        
sections for subchapter ,,ii of chapter 
#ab of title #aa1 ,united ,states ,code1

 is amended by adding at the end the    
following3  #abcb4 ,claim by a          
governmental unit based on the          
disposition of property used in a       
farming operation4  4  7c7 ,effective   
date ,the amendments made by this       
section shall apply to any bankruptcy   
case that--  7#a7 is pending on the date
 of enactment of this ,act and relating 
to which an order of discharge under    
section #abbh of title #aa1 ,united     
,states ,code1 has not been entered2 or 
7#b7 commences on or after the date of  
enactment of this ,act4