[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4996 Enrolled Bill (ENR)]
S.4996
One Hundred Sixteenth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Friday,
the third day of January, two thousand and twenty
An Act
To ensure funding of the United States trustees, extend temporary
bankruptcy judgeships, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Bankruptcy Administration
Improvement Act of 2020''.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings.--Congress finds the following:
(1) Because of the importance of the goal that the bankruptcy
system is self-funded, at no cost to the taxpayer, Congress has
closely monitored the funding needs of the bankruptcy system,
including by requiring periodic reporting by the Attorney General
regarding the United States Trustee System Fund.
(2) Congress has amended the various bankruptcy fees as
necessary to ensure that the bankruptcy system remains self-
supporting, while also fairly allocating the costs of the system
among those who use the system.
(3) Because the bankruptcy system is interconnected, the result
has been a system of fees, including filing fees, quarterly fees in
chapter 11 cases, and other fees, that together fund the courts,
judges, United States trustees, and chapter 7 case trustees
necessary for the bankruptcy system to function.
(4) This Act and the amendments made by this Act--
(A) ensure adequate funding of the United States trustees,
supports the preservation of existing bankruptcy judgeships
that are urgently needed to handle existing and anticipated
increases in business and consumer caseloads, and provides
long-overdue additional compensation for chapter 7 case
trustees whose caseloads include chapter 11 reorganization
cases that were converted to chapter 7 liquidation cases; and
(B) confirm the longstanding intention of Congress that
quarterly fee requirements remain consistent across all Federal
judicial districts.
(b) Purpose.--The purpose of this Act and the amendments made by
this Act is to further the long-standing goal of Congress of ensuring
that the bankruptcy system is self-funded, at no cost to the taxpayer.
SEC. 3. UNITED STATES TRUSTEE SYSTEM FUND; BANKRUPTCY FEES.
(a) Deposits of Certain Fees for Fiscal Years 2021 Through 2026.--
Notwithstanding section 589a(b) of title 28, United States Code, for
each of fiscal years 2021 through 2026--
(1) the fees collected under section 1930(a)(6) of such title,
less the amount specified in subparagraph (2), shall be deposited
as specified in subsection (b); and
(2) $5,400,000 of the fees collected under section 1930(a)(6)
of such title shall be deposited in the general fund of the
Treasury.
(b) United States Trustee System Fund.--Section 589a of title 28,
United States Code, is amended by adding at the end the following:
``(f)(1) During each of fiscal years 2021 through 2026 and
notwithstanding subsections (b) and (c), the fees collected under
section 1930(a)(6), less the amount specified in paragraph (2), shall
be deposited as follows, in the following order:
``(A) First, the amounts specified in the Department of Justice
appropriations for that fiscal year, shall be deposited as
discretionary offsetting collections to the ``United States Trustee
System Fund'', pursuant to subsection (a), to remain available
until expended.
``(B) Second, the amounts determined annually by the Director
of the Administrative Office of the United States Courts that are
necessary to reimburse the judiciary for the costs of administering
payments under section 330(e) of title 11, shall be deposited as
mandatory offsetting collections to the `United States Trustee
System Fund', and transferred and deposited into the special fund
established under section 1931(a), and notwithstanding subsection
(a), shall be available for expenditure without further
appropriation.
``(C) Third, the amounts determined annually by the Director of
the Administrative Office of the United States Courts that are
necessary to pay trustee compensation authorized by section
330(e)(2) of title 11, shall be deposited as mandatory offsetting
collections to the `United States Trustee System Fund', and
transferred and deposited into the Chapter 7 Trustee Fund
established under section 330(e) of title 11 for payment to
trustees serving in cases under chapter 7 of title 11 (in addition
to the amounts paid under section 330(b) of title 11), in
accordance with that section, and notwithstanding subsection (a),
shall be available for expenditure without further appropriation.
``(D) Fourth, any remaining amounts shall be deposited as
discretionary offsetting collections to the `United States Trustee
System Fund', to remain available until expended.
``(2) Notwithstanding subsection (b), for each of fiscal years 2021
through 2026, $5,400,000 of the fees collected under section 1930(a)(6)
shall be deposited in the general fund of the Treasury.''.
(c) Compensation of Officers.--Section 330 of title 11, United
States Code, is amended by adding at the end the following:
``(e)(1) There is established a fund in the Treasury of the United
States, to be known as the `Chapter 7 Trustee Fund', which shall be
administered by the Director of the Administrative Office of the United
States Courts.
``(2) Deposits into the Chapter 7 Trustee Fund under section
589a(f)(1)(C) of title 28 shall be available until expended for the
purposes described in paragraph (3).
``(3) For fiscal years 2021 through 2026, the Chapter 7 Trustee
Fund shall be available to pay the trustee serving in a case that is
filed under chapter 7 or a case that is converted to a chapter 7 case
in the most recent fiscal year (referred to in this subsection as a
`chapter 7 case') the amount described in paragraph (4) for the chapter
7 case in which the trustee has rendered services in that fiscal year.
``(4) The amount described in this paragraph shall be the lesser
of--
``(A) $60; or
``(B) a pro rata share, for each chapter 7 case, of the fees
collected under section 1930(a)(6) of title 28 and deposited to the
United States Trustee System Fund under section 589a(f)(1) of title
28, less the amounts specified in section 589a(f)(1)(A) and (B) of
title 28.
``(5) The payment received by a trustee under paragraph (3) shall
be paid in addition to the amount paid under subsection (b).
``(6) Not later than September 30, 2021, the Director of the
Administrative Office of the United States Courts shall promulgate
regulations for the administration of this subsection.''.
(d) Bankruptcy Fees.--Section 1930(a) of title 28, United States
Code, is amended--
(1) by striking paragraph (6)(B) and inserting the following:
``(B)(i) During the 5-year period beginning on January 1,
2021, in addition to the filing fee paid to the clerk, a
quarterly fee shall be paid to the United States trustee, for
deposit in the Treasury, in each open and reopened case under
chapter 11 of title 11, other than under subchapter V, for each
quarter (including any fraction thereof) until the case is
closed, converted, or dismissed, whichever occurs first.
``(ii) The fee shall be the greater of--
``(I) 0.4 percent of disbursements or $250 for each
quarter in which disbursements total less than $1,000,000;
and
``(II) 0.8 percent of disbursements but not more than
$250,000 for each quarter in which disbursements total at
least $1,000,000.
``(iii) The fee shall be payable on the last day of the
calendar month following the calendar quarter for which the fee
is owed.''; and
(2) in paragraph (7), in the first sentence, by striking
``may'' and inserting ``shall''.
(e) Applicability.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall take effect on the date of
enactment of this Act.
(2) Exceptions.--
(A) Compensation of officers.--The amendments made by
subsection (c) shall apply to any case filed on or after the
date of enactment of this Act--
(i) under chapter 7 of title 11, United States Code; or
(ii)(I) under chapter 11, 12, or 13 of that title; and
(II) converted to a chapter 7 case under that title.
(B) Bankruptcy fees.--The amendments made by subsection (d)
shall apply to--
(i) any case pending under chapter 11 of title 11,
United States Code, on or after the date of enactment of
this Act; and
(ii) quarterly fees payable under section 1930(a)(6) of
title 28, United States Code, as amended by subsection (d),
for disbursements made in any calendar quarter that begins
on or after the date of enactment of this Act.
SEC. 4. EXTENSION OF TEMPORARY OFFICE OF BANKRUPTCY JUDGES IN CERTAIN
JUDICIAL DISTRICTS.
(a) Temporary Office of Bankruptcy Judges Authorized by the
Bankruptcy Judgeship Act of 2017.--
(1) Extensions.--The temporary office of bankruptcy judges
authorized by section 1003(a) of the Bankruptcy Judgeship Act of
2017 (28 U.S.C. 152 note) for the district of Delaware and the
eastern district of Michigan are extended until the applicable
vacancy specified in paragraph (2) in the office of a bankruptcy
judge for the respective district occurs.
(2) Vacancies.--
(A) District of delaware.--The 1st and 2d vacancies in the
office of a bankruptcy judge for the district of Delaware--
(i) occurring 5 years or more after the date
established by section 1003(b)(1) of the Bankruptcy
Judgeship Act of 2017 (28 U.S.C. 152 note), and
(ii) resulting from the death, retirement, resignation,
or removal of a bankruptcy judge,
shall not be filled.
(B) Eastern district of michigan.--The 1st vacancy in the
office of a bankruptcy judge for the eastern district of
Michigan--
(i) occurring 5 years or more after the date
established by section 1003(b)(3) of the Bankruptcy
Judgeship Act of 2017 (28 U.S.C. 152 note), and
(ii) resulting from the death, retirement, resignation,
or removal of a bankruptcy judge,
shall not be filled.
(3) Applicability of other provisions.--Except as provided in
paragraphs (1) and (2), all other provisions of section 1003 of the
Bankruptcy Judgeship Act of 2017 (28 U.S.C. 152 note) remain
applicable to the temporary office of bankruptcy judges referred to
in paragraph (1).
(b) Temporary Office of Bankruptcy Judges Authorized by the
Bankruptcy Judgeship Act of 2005 and Extended by the Temporary
Bankruptcy Judgeships Extension Act of 2012 and the Bankruptcy
Judgeship Act of 2017.--
(1) Extensions.--The temporary office of bankruptcy judges
authorized for the following districts by section 1223(b) of the
Bankruptcy Judgeship Act of 2005 (28 U.S.C. 152 note), extended by
section 2(a) of the Temporary Bankruptcy Judgeships Extension Act
of 2012 (28 U.S.C. 152 note), and further extended by section
1002(a) of the Bankruptcy Judgeship Act of 2017 (28 U.S.C. 152
note) are extended until the applicable vacancy specified in
paragraph (2) in the office of a bankruptcy judge for the
respective district occurs:
(A) The district of Delaware.
(B) The southern district of Florida.
(C) The district of Maryland.
(D) The eastern district of Michigan.
(E) The district of Nevada.
(F) The eastern district of North Carolina.
(G) The district of Puerto Rico.
(H) The eastern district of Virginia.
(2) Vacancies.--
(A) Single vacancies.--Except as provided in subparagraphs
(B), (C), (D), (E), and (F), the 1st vacancy in the office of a
bankruptcy judge for each district specified in paragraph (1)--
(i) occurring 5 years or more after the date
established by section 1002(a)(2) of the Bankruptcy
Judgeship Act of 2017 (28 U.S.C. 152 note), and
(ii) resulting from the death, retirement, resignation,
or removal of a bankruptcy judge,
shall not be filled.
(B) District of delaware.--The 3d, 4th, 5th, and 6th
vacancies in the office of a bankruptcy judge for the district
of Delaware--
(i) occurring 5 years or more after the date
established by section 1002(a)(2) of Bankruptcy Judgeship
Act of 2017 (28 U.S.C. 152 note), and
(ii) resulting from the death, retirement, resignation,
or removal of a bankruptcy judge,
shall not be filled.
(C) Southern district of florida.--The 1st and 2d vacancies
in the office of a bankruptcy judge for the southern district
of Florida--
(i) occurring 5 years or more after the date
established by section 1002(a)(2) of the Bankruptcy
Judgeship Act of 2017 (28 U.S.C. 152 note), and
(ii) resulting from the death, retirement, resignation,
or removal of a bankruptcy judge,
shall not be filled.
(D) District of maryland.--The 1st vacancy in the office of
a bankruptcy judge for the district of Maryland--
(i) occurring 5 years or more after the date
established by section 1002(a)(2) of the Bankruptcy
Judgeship Act of 2017 (28 U.S.C. 152 note), and
(ii) resulting from the death, retirement, resignation,
or removal of a bankruptcy judge,
shall not be filled.
(E) Eastern district of michigan.--The 2d vacancy in the
office of a bankruptcy judge for the eastern district of
Michigan--
(i) occurring 5 years or more after the date
established by section 1002(a)(2) of the Bankruptcy
Judgeship Act of 2017 (28 U.S.C. 152 note), and
(ii) resulting from the death, retirement, resignation,
or removal of a bankruptcy judge,
shall not be filled.
(F) District of puerto rico.--The 1st vacancy in the office
of a bankruptcy judge for the district of Puerto Rico--
(i) occurring 5 years or more after the date
established by section 1002(a)(2) of the Bankruptcy
Judgeship Act of 2017 (28 U.S.C. 152 note), and
(ii) resulting from the death, retirement, resignation,
or removal of a bankruptcy judge,
shall not be filled.
(3) Applicability of other provisions.--Except as provided in
paragraphs (1) and (2), all other provisions of section 1223 of the
Bankruptcy Judgeship Act of 2005 (28 U.S.C. 152 note), section 2 of
the Temporary Bankruptcy Judgeships Extension Act of 2012 (28
U.S.C. 152 note), and section 1002 of the Bankruptcy Judgeship Act
of 2017 (28 U.S.C. 152 note) remain applicable to the temporary
office of bankruptcy judges referred to in paragraph (1).
(c) Temporary Office of Bankruptcy Judges Authorized by the
Bankruptcy Judgeship Act of 2005 and Extended by the Temporary
Bankruptcy Judgeships Extension Act of 2012.--
(1) Extensions.--The temporary office of bankruptcy judges
authorized for the following districts by section 1223(b) of the
Bankruptcy Judgeship Act of 2005 (28 U.S.C. 152 note) and extended
by section 2(a) of the Temporary Bankruptcy Judgeships Extension
Act of 2012 (28 U.S.C. 152 note) are extended until the applicable
vacancy specified in paragraph (2) in the office of a bankruptcy
judge for the respective district occurs:
(A) The southern district of Georgia.
(B) The district of Maryland.
(C) The district of New Jersey.
(D) The northern district of New York.
(E) The district of South Carolina.
(2) Vacancies.--
(A) Single vacancies.--Except as provided in subparagraph
(B), the 1st vacancy in the office of a bankruptcy judge for
each district specified in paragraph (1)--
(i) occurring 5 years or more after the date of the
enactment of this Act, and
(ii) resulting from the death, retirement, resignation,
or removal of a bankruptcy judge,
shall not be filled.
(B) District of maryland.--The 2d and 3d vacancies in the
office of a bankruptcy judge for the district of Maryland--
(i) occurring 5 years or more after the date of the
enactment of this Act, and
(ii) resulting from the death, retirement, resignation,
or removal of a bankruptcy judge,
shall not be filled.
(3) Applicability of other provisions.--Except as provided in
paragraphs (1) and (2), all other provisions of section 1223 of the
Bankruptcy Judgeship Act of 2005 (28 U.S.C. 152 note) and section 2
of the Temporary Bankruptcy Judgeships Extension Act of 2012 (28
U.S.C. 152 note) remain applicable to the temporary office of
bankruptcy judges referred to in paragraph (1).
(d) Temporary Office of Bankruptcy Judges Authorized by the
Bankruptcy Judgeship Act of 1992 and Extended by the Bankruptcy
Judgeship Act of 2005, the Temporary Bankruptcy Judgeships Extension
Act of 2012, and the Bankruptcy Judgeship Act of 2017.--
(1) Extensions.--The temporary office of bankruptcy judges
authorized by section 3(a) of the Bankruptcy Judgeship Act of 1992
(28 U.S.C. 152 note), extended by section 1223(c) of Bankruptcy
Judgeship Act of 2005 (28 U.S.C. 152 note), extended by section
2(b) of the Temporary Bankruptcy Judgeships Extension Act of 2012
(28 U.S.C. 152 note), and further extended by section 1002(b) of
the Bankruptcy Judgeship Act of 2017 (28 U.S.C. 152 note) for the
district of Delaware and the district of Puerto Rico are extended
until the applicable vacancy specified in paragraph (2) in the
office of a bankruptcy judge for the respective district occurs.
(2) Vacancies.--
(A) District of delaware.--The 7th vacancy in the office of
a bankruptcy judge for the district of Delaware--
(i) occurring 5 years or more after the date
established by section 1002(b)(2) of the Bankruptcy
Judgeship Act of 2017 (28 U.S.C. 152 note), and
(ii) resulting from the death, retirement, resignation,
or removal of a bankruptcy judge,
shall not be filled.
(B) District of puerto rico.--The 2d vacancy in the office
of a bankruptcy judge for the district of Puerto Rico--
(i) occurring 5 years or more after the date
established by section 1002(b)(2) of the Bankruptcy
Judgeship Act of 2017 (28 U.S.C. 152 note), and
(ii) resulting from the death, retirement, resignation,
or removal of a bankruptcy judge,
shall not be filled.
(3) Applicability of other provisions.--Except as provided in
paragraphs (1) and (2), all other provisions of section 3 of the
Bankruptcy Judgeship Act of 1992 (28 U.S.C. 152 note), section 1223
of Bankruptcy Judgeship Act of 2005 (28 U.S.C. 152 note), section 2
of the Temporary Bankruptcy Judgeships Extension Act of 2012 (28
U.S.C. 152 note), and section 1002 of the Bankruptcy Judgeship Act
of 2017 (28 U.S.C. 152 note) remain applicable to the temporary
office of bankruptcy judges referred to in paragraph (1).
(e) Temporary Office of Bankruptcy Judge Authorized by the
Bankruptcy Judgeship Act of 1992 and Extended by the Bankruptcy
Judgeship Act of 2005 and the Temporary Bankruptcy Judgeships Extension
Act of 2012.--
(1) Extensions.--The temporary office of bankruptcy judge
authorized by section 3(a) of the Bankruptcy Judgeship Act of 1992
(28 U.S.C. 152 note), extended by section 1223(c) of the Bankruptcy
Judgeship Act of 2005 (28 U.S.C. 152 note), and further extended by
section 2(b) of the Temporary Bankruptcy Judgeships Extension Act
of 2012 (28 U.S.C. 152 note) for the eastern district of Tennessee
is extended until the applicable vacancy specified in paragraph (2)
in the office of a bankruptcy judge for the district occurs.
(2) Vacancy.--The 1st vacancy in the office of a bankruptcy
judge for the eastern district of Tennessee--
(A) occurring 5 years or more after the date of the
enactment of this Act, and
(B) resulting from the death, retirement, resignation, or
removal of a bankruptcy judge,
shall not be filled.
(3) Applicability of other provisions.--Except as provided in
paragraphs (1) and (2), all other provisions of section 3 of the
Bankruptcy Judgeship Act of 1992 (28 U.S.C. 152 note), section 1223
of the Bankruptcy Judgeship Act of 2005 (28 U.S.C. 152 note), and
section 2 of the Temporary Bankruptcy Judgeships Extension Act of
2012 (28 U.S.C. 152 note) remain applicable to the temporary office
of bankruptcy judge referred to in paragraph (1).
(f) Temporary Office of Bankruptcy Judge Authorized by the
Bankruptcy Judgeship Act of 1992 and Extended by the Temporary
Bankruptcy Judgeships Extension Act of 2012.--
(1) Extensions.--The temporary office of bankruptcy judge
authorized by section 3(a) of the Bankruptcy Judgeship Act of 1992
(28 U.S.C. 152 note) and extended by section 2(c) of the Temporary
Bankruptcy Judgeships Extension Act of 2012 (28 U.S.C. 152 note)
for the middle district of North Carolina is extended until the
applicable vacancy specified in paragraph (2) in the office of a
bankruptcy judge for the district occurs.
(2) Vacancy.--The 1st vacancy in the office of a bankruptcy
judge for the middle district of North Carolina--
(A) occurring 5 years or more after the date of the
enactment of this Act, and
(B) resulting from the death, retirement, resignation, or
removal of a bankruptcy judge,
shall not be filled.
(3) Applicability of other provisions.--Except as provided in
paragraphs (1) and (2), all other provisions of section 3 of the
Bankruptcy Judgeship Act of 1992 (28 U.S.C. 152 note) and section 2
of the Temporary Bankruptcy Judgeships Extension Act of 2012 (28
U.S.C. 152 note) (28 U.S.C. 152 note) remain applicable to the
temporary office of bankruptcy judge referred to in paragraph (1).
SEC. 5. REGULATIONS.
Section 375(h) of title 28, United States Code, is amended by
striking ``may'' and inserting ``shall''.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.