[Congressional Record Volume 156, Number 34 (Wednesday, March 10, 2010)]
[House]
[Pages H1235-H1238]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
BANKRUPTCY JUDGESHIP ACT OF 2010
Mr. COHEN. Mr. Speaker, I move to suspend the rules and pass the bill
(H.R. 4506) to authorize the appointment of additional bankruptcy
judges, and for other purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 4506
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 Judgeship Act of
2010''.
SEC. 2. ADDITIONAL PERMANENT OFFICES OF BANKRUPTCY JUDGES.
Section 152(a)(2) of title 28, United States Code, is
amended--
(1) in the item relating to the eastern and western
districts of Arkansas by striking ``3'' and inserting ``4'',
(2) in the item relating to the eastern district of
California by striking ``6'' and inserting ``8'',
[[Page H1236]]
(3) in the item relating to the district of Delaware by
striking ``1'' and inserting ``6'',
(4) in the item relating to the middle district of Florida
by striking ``8'' and inserting ``9'',
(5) in the item relating to the northern district of
Florida by striking ``1'' and inserting ``2'',
(6) in the item relating to the southern district of
Florida by striking ``5'' and inserting ``7'',
(7) in the item relating to the northern district of
Georgia by striking ``8'' and inserting ``10'',
(8) in the item relating to the southern district of
Georgia by striking ``2'' and inserting ``3'',
(9) in the item relating to the district of Maryland by
striking ``4'' and inserting ``7'',
(10) in the item relating to the eastern district of
Michigan by striking ``4'' and inserting ``7'',
(11) in the item relating to the northern district of
Mississippi by striking ``1'' and inserting ``2'',
(12) in the item relating to the district of Nevada by
striking ``3'' and inserting ``5'',
(13) in the item relating to the district of New Hampshire
by striking ``1'' and inserting ``2'',
(14) in the item relating to the district of New Jersey by
striking ``8'' and inserting ``9'',
(15) in the item relating to the northern district of New
York by striking ``2'' and inserting ``3'',
(16) in the item relating to the southern district of New
York by striking ``9'' and inserting ``10'',
(17) in the item relating to the eastern district of North
Carolina by striking ``2'' and inserting ``3'',
(18) in the item relating to the western district of North
Carolina by striking ``2'' and inserting ``3'',
(19) in the item relating to the middle district of
Pennsylvania by striking ``2'' and inserting ``3'',
(20) in the item relating to the eastern district of
Tennessee by striking ``3'' and inserting ``4'',
(21) in the item relating to the western district of
Tennessee by striking ``4'' and inserting ``5'',
(22) in the item relating to the eastern district of
Virginia by striking ``5'' and inserting ``6'', and
(23) in the item relating to the southern district of West
Virginia by striking ``1'' and inserting ``2''.
SEC. 3. CONVERSION OF CERTAIN TEMPORARY OFFICES OF BANKRUPTCY
JUDGES TO PERMANENT OFFICES.
(a) Conversion of Certain Temporary Offices Established by
Public Law 109-8.--The temporary offices of bankruptcy judges
established by section 1223(b)(1) of Public Law 109-8 (28
U.S.C. 152 note) for the following districts are hereby
converted so as to be included in the permanent offices of
bankruptcy judges that are added by the amendments made by
section 2 with respect to the corresponding districts:
(1) The eastern district of California.
(2) The district of Delaware.
(3) The southern district of Florida.
(4) The southern district of Georgia.
(5) The district of Maryland.
(6) The district of New Jersey.
(7) The northern district of New York.
(8) The southern district of New York.
(9) The eastern district of North Carolina.
(10) The middle district of Pennsylvania.
(11) The western district of Tennessee.
(12) The eastern district of Virginia.
(13) The district of Nevada.
(b) Conversion of Certain Temporary Offices Established by
Public Law 102-361.--The temporary offices of bankruptcy
judges established by section 3(a) of Public Law 102-361 (28
U.S.C. 152 note) for the following districts are hereby
converted so as to be included in the permanent offices of
bankruptcy judges that are added by the amendments made by
section 2 with respect to the corresponding districts:
(1) The district of Delaware.
(2) The district of New Hampshire.
(3) The eastern district of Tennessee.
SEC. 4. EXTENSION OF CERTAIN TEMPORARY OFFICES OF BANKRUPTCY
JUDGES ESTABLISHED BY PUBLIC LAW 109-8.
(a) Extensions.--The temporary offices of bankruptcy judges
established for the eastern district of Pennsylvania and the
middle district of North Carolina by section 1223(b)(1) of
Public Law 109-8 (28 U.S.C. 152 note) are extended until the
1st vacancy occurring in the office of a bankruptcy judge in
the respective district resulting from the death, retirement,
resignation, or removal of a bankruptcy judge and occurring 5
years or more after the date of the enactment of this Act.
(b) Applicability of Other Provisions.--Except as provided
in subsection (a), all other provisions of section 1223(b) of
Public Law 109-8 (28 U.S.C. 152 note) remain applicable to
the temporary offices of bankruptcy judges referred to in
subsection (a).
SEC. 5. PAYGO OFFSET.
(a) Bankruptcy Filing Fees.--Section 1930(a) of title 28,
United States Code, is amended--
(1) in paragraph (1)--
(A) in subparagraph (A) by striking ``$245'' and inserting
``$246'', and
(B) in subparagraph (B) by striking ``$235'' and inserting
``$236'', and
(2) in paragraph (3) by striking ``$1,000'' and inserting
``$1,042''.
(b) United States Trustee Fund.--Section 589a(b) of title
28, United States Code, is amended--
(1) in paragraph (1)--
(A) in subparagraph (A) by striking ``40.46'' and inserting
``40.28'', and
(B) in subparagraph (B) by striking ``28.33'' and inserting
``28.15'', and
(2) in paragraph (2) by striking ``55'' and inserting
``52.78''.
(c) Collection and Deposition of Miscellaneous Bankruptcy
Fees.--Section 406(b) of the Judiciary Appropriations Act,
1990 (Public Law 101-162; 28 U.S.C. 1931 note) is amended--
(1) by striking ``28.87'' and inserting ``28.74'',
(2) by striking ``35.00'' and inserting ``34.77'', and
(3) by striking ``25'' and inserting ``23.99''.
SEC. 6. EFFECTIVE DATES.
(a) General Effective Date.--Except as provided in
subsection (b), this Act and the amendments made by this Act
shall take effect on the date of the enactment of this Act.
(b) Special Effective Date.--The amendments made by section
5 shall take effect 180 days after the date of the enactment
of this Act.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Tennessee (Mr. Cohen) and the gentleman from Texas (Mr. Poe) each will
control 20 minutes.
The Chair recognizes the gentleman from Tennessee.
General Leave
Mr. COHEN. Mr. Speaker, I ask unanimous consent that all Members have
5 legislative days to revise and extend their remarks and include
extraneous material on the bill under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Tennessee?
There was no objection.
Mr. COHEN. I yield myself such time as I may consume.
Mr. Speaker, H.R. 4506, the Bankruptcy Judgeship Act of 2010,
provides new resources for bankruptcy courts to handle the growing
number and complexity of bankruptcy cases. This economy has resulted in
many people having to seek bankruptcy who never would have dreamed they
would have before. And the complexity of the cases, from our major
automobile manufacturers on through other reorganizations, have grown
in complexity for the bankruptcy judges to be involved in.
The bill authorizes the creation of 13 new permanent bankruptcy
judges, the conversion of 22 temporary judgeships to permanent
judgeships, and the extension of two judgeships for another 5 years.
The act will help bankruptcy courts in 25 different Federal judicial
districts around this country.
Bankruptcies had been steadily on the rise since October 2006. These
events, bankruptcies rising and the financial crisis, combined with the
continuing mortgage foreclosure crisis, consumer credit problems, and
health care crises, have exacerbated this trend significantly and
caused the bankruptcy courts much additional work.
According to the Administrative Office of the United States Courts,
bankruptcy filings increased by over 300,000 from fiscal year 2008 to
fiscal year 2009. That is a 34.5 percent increase in 1 year. The
previous year they had increased by 30.2 percent. And the Wall Street
Journal recently reported another sharp increase in personal bankruptcy
filings in 2009, up 32 percent from 2008. According to the Wall Street
Journal, these increases were driven by high unemployment rates and the
continuing housing crisis, both of which have affected not only those
on the economic margins, but also a growing number of middle class
families who desire to work but have had to turn to our Nation's
bankruptcy system for help as a last resort.
In addition to the growing numbers of bankruptcy cases, the cases
have also grown more complex, particularly in business bankruptcies. As
I mentioned earlier, in 2009 two of the big three, General Motors and
Chrysler, two companies upon which tens of thousands of workers,
thousands of dealers, hundreds of suppliers, and many communities
across this Nation depended for their livelihoods, went through quick
but nonetheless intense bankruptcy processes. Bankruptcy courts
performed admirably but under strain.
Outside the automobile industry, as I mentioned earlier, businesses
such as Delta Airlines to Lehman Brothers to Circuit City have all
turned to bankruptcy for relief in recent years, with the same kind of
extraordinary burden imposed on the bankruptcy courts.
[[Page H1237]]
While the workload for bankruptcy courts is increasing, judicial
resources are in danger of decreasing. Many current bankruptcy
judgeships are authorized on a temporary basis, and some are set to
expire soon. A well-functioning bankruptcy system is absolutely
essential to helping individuals and businesses weather our Nation's
current economic difficulties. Having a sufficient number of bankruptcy
judges is a key to making the system work, and has never been more
important than today.
H.R. 4506, the Bankruptcy Judgeship Act of 2010, addresses these
needs by authorizing the creation of 13 new permanent bankruptcy
judgeships and the conversion of 22 temporary judgeships to permanent
judgeships. Additionally, it extends the temporary authorization for
two judgeships for another 5 years. These new, converted, and extended
bankruptcy judgeships reflect the recommendations of the Judicial
Conference of the United States. Those recommendations in turn are the
culmination of an extensive and careful survey and review process that
thoroughly assessed the bankruptcy judgeship needs of every Federal
judicial district in the country. In essence transparent, fair,
methodical, rational.
I note that a significant part of the conference's assessment of
bankruptcy judges' workload depends on the use of case weights that
were developed almost two decades ago, prior to the enactment of the
Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, which
we still labor under. BAPCPA created numerous new motions that
bankruptcy judges are now required to consider.
If anything, the Judicial Conference recommendations may
underestimate the need of the workload and the need of new bankruptcy
judges. In short, the conference's recommendations, as reflected in the
new bankruptcy judgeships authorized by H.R. 4506, may actually be too
conservative.
To pay for 13 new judgeships, the bill also raises the filing fees
for chapter 7 and 13 cases by $1, and for chapter 11 cases, which are
business bankruptcies, by $42. While I understand that filing fees are
needed for the successful operation of the bankruptcy system, I believe
they are already too high, particularly for consumer debtors seeking
bankruptcy relief because they are in dire straits. In this one
instance we ultimately determined that a fee increase was the only
practical way to get the needed judgeships in a timely manner, which
will allow for the efficient functioning of the bankruptcy system to
the ultimate benefit of debtors.
So in passing a bankruptcy system, we wanted to have funds to make it
self-sufficient. To put the bankruptcy system of our country in
bankruptcy while saving the bankruptcy system seemed like an oxymoron.
{time} 1145
But I would urge in the future we rely on something other than
bankruptcy filing fee increases to pay for new bankruptcy judgeships.
The last time Congress addressed the issue of bankruptcy judgeships was
5 years ago when it authorized 28 temporary judgeships in the
Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. Those
temporary judgeships are now about to expire.
Moreover, the last time Congress authorized new permanent bankruptcy
judgeships was in 1992. It is well past the time that we address the
critical issue of bankruptcy judgeships needs, and I am pleased that we
are able to do so today.
I thank the Judiciary Committee chairman, John Conyers, and Ranking
Member Lamar Smith for being original cosponsors of this important
legislation and our Judiciary Committee working in a bipartisan fashion
to pass the bill. I also thank Trent Franks, the ranking member of the
Judiciary Subcommittee on Commercial and Administration Law, for his
support of this bill. I guess it wasn't an oxymoron but an
inconsistency.
I urge my colleagues to support this important legislation.
I reserve the balance of my time.
Mr. POE of Texas. Mr. Speaker, I rise in support of this legislation,
and I yield myself such time as I may consume.
Mr. Speaker, additional permanent bankruptcy judgeships have not been
authorized since 1992. The Judicial Conference has requested more
judgeships several times and the House has passed legislation to add
them; however, the Senate has not acted on these requests.
Since Congress last authorized additional permanent judgeships,
judicial workloads have increased substantially. The important
bankruptcy reforms Congress passed in 2005, for example, called on
judges to do more to prevent abuse.
Congress compensated for some of the court's increasing burden in
recent years by creating temporary bankruptcy judgeships. Many of those
judgeships are near their expiration dates.
The time has come for Congress to address bankruptcy judgeships needs
on a permanent basis. Bankruptcy judges are essential to the bankruptcy
process. They make certain that the process is fair and impartial to
those who come before the bankruptcy courts. It is also their job to
ensure that the bankruptcy courts effectively adjudicate parties'
rights and responsibilities.
This bill is based on a comprehensive study done by the Judicial
Conference. The conference has assured us that its request comes only
after taking steps to maximize all other alternatives to reduce
judicial workloads.
There are currently 352 bankruptcy judges, including 36 temporary
judges. This legislation creates 13 new permanent bankruptcy judgeships
and converts 22 of the existing temporary judgeships to permanent
status. It also provides a 5-year extension for two temporary
judgeships.
Finally, this bill will not present any new cost for the taxpayers.
The increased cost of these judgeships are paid by an increase in
chapter 7, chapter 11, and chapter 13 bankruptcy filing fees. Those who
do business in the courts will be paying the extra burdens, not the
taxpayers.
We need a bankruptcy system that has a sufficient number of judges to
manage the system's caseload in a just, economical, and timely manner.
This bill helps ensure that we have such a system. I urge my colleagues
to adopt this legislation.
Mr. Speaker, we have no other speakers, and I yield back the balance
of my time.
Mr. COHEN. Mr. Speaker, I appreciate the bipartisanship under which
we have worked on this bill. I thank Mr. Poe and the minority ranking
member, Mr. Smith, and Chairman Conyers and the staff who worked on
this bill, and the Judicial Conference. I hope that we pass this bill.
I call on Members to vote ``aye'' on H.R. 4506 and pass the bill.
Mr. JOHNSON of Georgia. Mr. Speaker, I rise today to support H.R.
4506 an act to amend the federal judicial code to authorize the
appointment of additional permanent bankruptcy judges in various
states. This legislation was introduced by Representative Cohen, my
colleague from Tennessee. As a member of the judiciary committee, I
urge my colleagues to support this important legislation.
As Chair of the Courts and Competition Policy subcommittee of the
House Judiciary Committee, I have long championed the increase in
federal judgeships across the United States. In this Congress, I
introduced H.R. 3663, The Federal Judgeship Act of 2009, which would
have done exactly this: increase the number of federal judges.
The U.S. is also in need of more bankruptcy judges. According to
Michael J. Melloy, Chair of the Judicial Conference Committee on the
Administration of the Bankruptcy System, ``Additional judgeships are
critical to ensure that the bankruptcy courts have sufficient judicial
resources to effectively and efficiently adjudicate the rights and
responsibilities of parties in bankruptcy cases and proceedings''. New
bankruptcy judgeships have not been authorized by Congress since 1992,
yet case filings have increased by 61 percent.
The current recession has had an adverse effect on the Bankruptcy
Court system. The courts are now faced with much more complex and time-
consuming bankruptcy cases, not to mention an increase in volume of
cases. This has led to more cases per judge than they are able to
handle. It is therefore necessary that we act and authorize additional
bankruptcy judges.
In addition to authorizing new judges, H.R. 4506 would also convert
certain temporary offices of bankruptcy judges to permanent offices,
extend certain temporary offices of bankruptcy judges, reduce the
amount of bankruptcy fees to be deposited as offsetting
[[Page H1238]]
collections to the United States Trustee System Fund, and increase
bankruptcy filing fees. All of this would lead to a better and more
efficient bankruptcy judicial system.
My state of Georgia has the third highest personal bankruptcy rate in
the nation. According to the National Bankruptcy Research Center,
Georgia's federal bankruptcy courts handled 66,925 filings during the
first 11 months of 2009. This was 22 percent higher than the same
period of 2008. This resolution will give the bankruptcy judicial
system the resources necessary to review cases in a thorough yet timely
manner, and turn the hectic bankruptcy process into a much more
manageable one. I urge my colleagues to join me in support of this
legislation, and vote in the affirmative for H.R. 4506, the Bankruptcy
Judgeship Act of 2010.
Mr. COHEN. I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Tennessee (Mr. Cohen) that the House suspend the rules
and pass the bill, H.R. 4506, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. COHEN. Mr. Speaker, on that, I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the
Chair's prior announcement, further proceedings on this motion will be
postponed.
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