Ellen Tauscher: “I rise to oppose the Scott amendment to strike section 212 of this bill. Under section 212 of H.R. 3150, bankruptcy…”

“I rise to oppose the Scott amendment to strike section 212 of this bill. Under section 212 of H.R. 3150, bankruptcy judges would have the right to deny the termination of contracts with recording artists if it is clear that the bankruptcy filing is a ploy to end the contract. It provides judges with the authority to prevent fraudulent filers from using the bankruptcy system simply to advance other business objectives. At issue in this provision is not who is filing for bankruptcy, but why they are filing for bankruptcy. Regardless of the circumstances, bankruptcy judges should have the authority to prevent fraudulent filings. Mr. Chairman, this provision would not deny anyone access to bankruptcy. It would not deny debtors in genuine economic stress the ability to rehabilitate their finances, and it would not deny or not give recording companies a preferred creditor position. I urge my colleagues to oppose the Scott amendment and support H.R. 3150.”