[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4996 Engrossed in Senate (ES)]
<DOC>
116th CONGRESS
2d Session
S. 4996
_______________________________________________________________________
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''.
Passed the Senate December 9, 2020.
Attest:
Secretary.
116th CONGRESS
2d Session
S. 4996
_______________________________________________________________________
AN ACT
To ensure funding of the United States trustees, extend temporary
bankruptcy judgeships, and for other purposes.