[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.