Congressional Record, Volume 157 Issue 186 (Tuesday, December 6, 2011)

[Congressional Record Volume 157, Number 186 (Tuesday, December 6, 2011)]
[House]
[Pages H8165-H8167]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

TEMPORARY BANKRUPTCY JUDGESHIPS EXTENSION ACT OF 2011

Mr. SMITH of Texas. Mr. Speaker, I move to suspend the rules and pass
the bill (H.R. 1021) to prevent the termination of the temporary office
of bankruptcy judges in certain judicial districts, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:

H.R. 1021

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 ``Temporary Bankruptcy
Judgeships Extension Act of 2011''.

SEC. 2. EXTENSION OF TEMPORARY OFFICE OF BANKRUPTCY JUDGES IN
CERTAIN JUDICIAL DISTRICTS.

(a) Temporary Office of Bankruptcy Judges Authorized by
Public Law 109-8.--
(1) Extensions.--The temporary office of bankruptcy judges
authorized for the following districts by section 1223(b) of
Public Law 109-8 (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 central district of California.
(B) The eastern district of California.
(C) The district of Delaware.
(D) The southern district of Florida.
(E) The southern district of Georgia.
(F) The district of Maryland.
(G) The eastern district of Michigan.
(H) The district of New Jersey.
(I) The northern district of New York.
(J) The southern district of New York.
(K) The eastern district of North Carolina.
(L) The eastern district of Pennsylvania.
(M) The middle district of Pennsylvania.
(N) The district of Puerto Rico.
(O) The district of South Carolina.
(P) The western district of Tennessee.
(Q) The eastern district of Virginia.
(R) The district of Nevada.
(2) Vacancies.--
(A) Single vacancies.--Except as provided in subparagraphs
(B), (C), (D), and (E), the 1st vacancy in the office of a
bankruptcy judge for each district specified in paragraph
(1)--
(i) occurring more than 5 years 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) Central district of california.--The 1st, 2d, and 3d
vacancies in the office of a bankruptcy judge for the central
district of California--
(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.
(C) District of delaware.--The 1st, 2d, 3d, and 4th
vacancies in the office of a bankruptcy judge for the
district of Delaware--
(i) occurring more than 5 years 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.
(D) Southern district of florida.--The 1st and 2d vacancies
in the office of a bankruptcy judge for the southern district
of Florida--
(i) occurring more than 5 years 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.
(E) District of maryland.--The 1st, 2d, and 3d vacancies in
the office of a bankruptcy judge for the district of
Maryland--
(i) occurring more than 5 years 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(b) of Public Law 109-8 (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 Extended by
Public Law 109-8.--
(1) Extensions.--The temporary office of bankruptcy judges
authorized by section 3 of the Bankruptcy Judgeship Act of
1992 (28 U.S.C. 152 note) and extended by section 1223(c) of
Public Law 109-8 (28 U.S.C. 152 note) for the district of
Delaware, the district of Puerto Rico, and the eastern
district of Tennessee 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 5th vacancy in the office of
a bankruptcy judge for the district of Delaware--
(i) occurring more than 5 years 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 puerto rico.--The 2d vacancy in the office
of a bankruptcy judge for the district of Puerto Rico--
(i) occurring more than 5 years 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.
(C) Eastern district of tennessee.--The 1st vacancy in the
office of a bankruptcy judge for the eastern district of
Tennessee--
(i) occurring more than 5 years 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 3
of the Bankruptcy Judgeship Act of 1992 (28 U.S.C. 152 note)
and section 1223(c) of Public Law 109-8 (28 U.S.C. 152 note)
remain applicable to the temporary office of bankruptcy
judges referred to in paragraph (1).
(c) Temporary Office of the Bankruptcy Judge Authorized by
Public Law 102-361 for the Middle District of North
Carolina.--
(1) Extension.--The temporary office of the bankruptcy
judge authorized by section 3 of the Bankruptcy Judgeship Act
of 1992 (28 U.S.C. 152 note) for the middle district of North
Carolina is extended until the vacancy specified in paragraph
(2) occurs.
(2) Vacancy.--The 1st vacancy in the office of a bankruptcy
judge for the middle district of North Carolina--
(A) occurring more than 5 years after the date of the
enactment of this Act, and
(B) resulting from the death, retirement, resignation, or
removal of a bankruptcy judge,

SEC. 3. BANKRUPTCY FILING FEE.

(a) Bankruptcy Filing Fee.--Section 1930(a)(3) of title 28,
United States Code, is amended by striking ``$1,000'' and
inserting ``$1,042''.
(b) Expenditure Limitation.--Incremental amounts collected
by reason of the enactment of subsection (a) shall be
deposited in a special fund in the Treasury to be established
after the date of enactment of this Act. Such amounts shall
be available for the purposes specified in section 1931(a) of
title 28, United States Code, but only to the extent
specifically appropriated by an Act of Congress enacted after
the date of enactment of this Act.
(c) Effective Date.--This section shall take effect 180
days after the date of enactment of this Act.

The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Texas (Mr. Smith) and the gentleman from Michigan (Mr. Conyers) each
will control 20 minutes.
The Chair recognizes the gentleman from Texas.

General Leave

Mr. SMITH of Texas. Mr. Speaker, I ask unanimous consent that all
Members may have 5 legislative days within which to revise and extend
their remarks and include extraneous materials on H.R. 1021, as
amended, currently under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Texas?

[[Page H8166]]

There was no objection.
Mr. SMITH of Texas. Mr. Speaker, I yield myself such time as I may
consume.
One of the results of a slack economy is that more individuals and
businesses have filed for bankruptcy. In fact, over the past 3 years,
the number of bankruptcy petitions filed in bankruptcy courts has
doubled. While recent data show that the volume of cases is beginning
to subside, our bankruptcy judges remain hard at work.
Bankruptcy judges are critical to the operation of our Federal
bankruptcy courts. The important bankruptcy reforms Congress passed in
2005, for example, called on judges to do more to help prevent
bankruptcy abuse; and large, complex chapter 11 cases, like the
recently filed mega-case of American Airline, are time intensive for
our bankruptcy judges.
In the last Congress, the Judiciary Committee reported a bankruptcy
judgeships bill that would have created new permanent judgeships,
converted temporary judgeships to permanent status, and extended
temporary judgeships. The House passed that bill, but it did not pass
the Senate.
As a result, several temporary judgeships are in danger of being
unable to be refilled if there is a vacancy. But the need for
bankruptcy judges remains high.
I introduced the legislation under consideration with the ranking
member of the Courts, Commercial and Administrative Law Subcommittee of
the Judiciary Committee, Steve Cohen, the chairman of that
subcommittee, Howard Coble, and the ranking member of the full
Judiciary Committee, John Conyers.
This bill permits 23 temporary bankruptcy judgeships in judicial
districts throughout the country to be filled if there is a judgeship
vacancy in those districts during the next 5 years as a result of a
judge's death, removal, retirement, or resignation.
Congress should ensure there are enough bankruptcy judges to handle
the increased caseloads as a result of the recession; but Congress
should also conserve Federal resources and conduct periodic oversight
of judicial caseloads. H.R. 1021 authorizes a 5-year extension, which
preserves Congress's ability to reassess the need for bankruptcy judges
in a few years.
Time is of the essence. I urge the Senate also to act quickly on this
measure so that our bankruptcy system may continue to operate with
speed and efficiency.
I want to thank the bill's cosponsors for their bipartisan support.
One of the results of the slack economy is that more individuals and
businesses have filed for bankruptcy. In fact, over the past three
years, the number of bankruptcy petitions filed in bankruptcy courts
has doubled. While recent data show that the volume of cases is
beginning to subside, our bankruptcy judges remain hard at work.
Bankruptcy judges are critical to the operation of our federal
bankruptcy courts. The important bankruptcy reforms Congress passed in
2005, for example, called on judges to do more to help prevent
bankruptcy abuse. And large, complex chapter 11 cases, like the
recently filed mega-case of American Airlines, are time-intensive for
our bankruptcy judges.
However, no new bankruptcy judgeships have been created since 2005.
At that time, Congress created temporary judgeships so that it could
periodically review the caseloads in each district and assess whether
the temporary judgeship was still needed. Permanent judgeships have not
been authorized since 1992.
Every two years, the Judicial Conference of the United States
publishes a report to Congress that details the judicial needs of each
district. The Conference evaluates need based on a ``weighted
caseload'' analysis. The 2011 weighted caseload statistics demonstrate
that judges are desperately needed in many districts.
In the last Congress, the Judiciary Committee reported a bankruptcy
judgeships bill that would have created new permanent judgeships,
converted temporary judgeships to permanent status and extended
temporary judgeships. The House passed that bill but it did not pass
the Senate.
As a result, several temporary judgeships are in danger of being
unable to be refilled if there is a vacancy. But the need for
bankruptcy judges remains high.
I introduced the legislation under consideration with the Ranking
Member of the Courts, Commercial and Administrative Law Subcommittee of
the Judiciary Committee, Steve Cohen; the Chairman of that
subcommittee, Howard Coble; and the Ranking Member of the full
Judiciary Committee, John Conyers.
This bill permits 23 temporary bankruptcy judgeships in judicial
districts throughout the country to be filled if there is a judgeship
vacancy in those districts during the next five years as a result of a
judge's death, removal, retirement or resignation.
Congress should ensure there are enough bankruptcy judges to handle
the increased caseloads as a result of the recession. But Congress
should also conserve federal resources and conduct periodic oversight
of judicial caseloads. H.R. 1021 authorizes a 5-year extension, which
preserves Congress's ability to reassess the need for bankruptcy judges
in a few years.
The relief a debtor receives from the bankruptcy system is
extraordinary; they either reorganize their debts on more favorable
terms or they get a complete discharge of all their prepetition debts.
All except the poorest of debtors pay a fee to file a bankruptcy case
and receive these benefits.
I believe it is fair to use debtors' filing fees to pay for the costs
associated with our bankruptcy judges. This legislation, as amended,
raises the filing fee on chapter 11 reorganization cases from $1000 to
$1042--a modest 4 percent increase. As a result, this bill does not
increase direct spending by the federal government.
Time is of the essence. I urge the Senate also to act quickly on this
measure so that our bankruptcy system may continue to operate with
speed and efficiency.
I thank the bill's cosponsors for their bipartisan support.

House of Representatives,

Committee on Ways and Means,

Washington, DC, December 5, 2011.
Hon. Lamar Smith,
Chairman, Committee on the Judiciary, Rayburn House Office
Building, Washington, DC.
Dear Chairman Smith: I am writing concerning H.R. 1021, as
amended, the ``Temporary Bankruptcy Judgeships Extension Act
of 2011,'' which is scheduled for Floor consideration the
week of December 5, 2011.
As you know, the Committee on Ways and Means maintains
jurisdiction over revenue measures generally. H.R. 1021, as
amended, contains a provision that raises revenue by
increasing the Chapter 11 filing fees for the operation and
maintenance of the courts of the United States, which falls
within the jurisdiction of the Committee on Ways and Means.
In order to expedite this bill for Floor consideration, the
Committee will forgo action on the bill. This is being done
with the understanding that it does not in any way prejudice
the Committee with respect to the appointment of conferees or
its jurisdictional prerogatives on this or similar
legislation in the future.
I would appreciate your response to this letter, confirming
this understanding with respect to H.R. 1021, as amended, and
would ask that a copy of our exchange of letters on this
matter be included in the Congressional Record during Floor
consideration.
Sincerely,
Dave Camp,
Chairman.
____

House of Representatives,

Committee on the Judiciary,

Washington, DC, December 5, 2011.
Hon. Dave Camp,
Chairman, Committee on Ways and Means, Longworth House Office
Building, Washington, DC.
Dear Chairman Camp: Thank you for your letter regarding
H.R. 1021, the ``Temporary Bankruptcy Judgeships Extension
Act of 2011,'' as amended, which is scheduled for
consideration by the House during the week of December 5.
I am most appreciative of your decision to forego
consideration of H.R. 1021, as amended, so that it may move
expeditiously to the House floor. I acknowledge that although
you are waiving formal consideration of the bill, the
Committee on Ways and Means is in no way waiving its
jurisdiction over the subject matter contained in the bill.
In addition, if a conference is necessary on this
legislation, I will support any request that Ways and Means
be represented therein.
Finally, I shall be pleased to include this letter and your
letter of the same date in the Congressional Record during
floor consideration of H.R. 1021.
Sincerely,
Lamar Smith,
Chairman.

I reserve the balance of my time.
Mr. CONYERS. Mr. Speaker, I yield myself such time as I may consume.
I appreciate the excellent description of the chairman, Lamar Smith,
on H.R. 1021, the Temporary Bankruptcy Judgeships Extension Act. This
is a very bipartisan piece of legislation, extending by 5 years the
authorizations for 30 temporary bankruptcy judges in more than 20
judicial districts around the country.
I might point out that we're not adding bankruptcy judges; and,
Members of the House, that's what we ought to be doing, really, instead
of just continuing the same number. We need

[[Page H8167]]

more. Why? Because bankruptcy judges are needed more than ever.
The bankruptcy filings have increased during the worst economic
downturn the Nation has experienced since the Great Depression because
long-term high unemployment rates and reduced incomes have sent more
people into the bankruptcy court, because of the continuing mortgage
foreclosure crisis which has affected so many people, and the
increasingly onerous credit card obligations, and the sky-high student
loans that are being collected on, and the uninsured medical debt.

{time} 1530

Last year 1.6 million bankruptcy cases were filed, representing a
more than 8 percent increase over the prior years. Two of the Nation's
largest automobile manufacturers in Detroit, General Motors and
Chrysler, filed for bankruptcy relief under chapter 11. These two cases
alone involved billions of dollars, tens of thousands of workers,
thousands of auto dealers, and thousands of creditors located in all
parts of our Nation. Just last month, American Airlines filed for
chapter 11 bankruptcy relief, and the national bookstore chain Borders
filed last month.
A third factor must be kept in mind: that while we maintain the
status quo, more needs to be done. Bankruptcy courts have been
performing admirably but under critical strain. So while the bankruptcy
courts' workload increases, judicial resources are, in fact,
diminishing. And that's why we're authorizing new judicial membership
in the bankruptcy courts in the coming year, if everything works out as
we anticipate.
Right now, though, we merely ask the House of Representatives to
support the bill that I and Chairman Smith have cosponsored which would
maintain the new judges that are on the bench but will not add any
more.
I urge your support for the additional judgeships.
I reserve the balance of my time.
Mr. SMITH of Texas. Mr. Speaker, I yield back the balance of my time.
Mr. CONYERS. I yield such time as he may consume to the distinguished
gentleman from Georgia, Mr. Hank Johnson, a member of the committee.
Mr. JOHNSON of Georgia. I thank the ranking member.
Mr. Speaker, I rise in support of H.R. 1021, the Temporary Bankruptcy
Judgeships Extension Act of 2011, sponsored by my good friend
Representative Smith of Texas, who is also the chair of the Judiciary
Committee, which I am pleased to serve on.
I would point out how ironic it is because we are now in the 336th
day of this reign of the Tea Party Republican Party, which is
unalterably linked with the notorious Grover Norquist and his tax
pledge, his pledge to not raise taxes. We're getting ready, Mr.
Speaker, to get to the end of this year, and we still have 160 million
Americans at risk of suffering a tax increase, $1,000 a person on
average. I don't know how many millions of dollars that would take out
of consumers' pockets. And I don't hear Grover Norquist or the Tea
Party Republicans crying about that. If it's the middle class, the
working people tax increase, it's okay. If it is the top 1 percent
making over a million bucks a year, then ``you can't touch this.''
Well, I think the American people know that it's ``hammer time'' out
here. It's time for there to be justice and fairness for all under the
law. And it's ironic we need these bankruptcy court judges' tenures to
be extended, as this Act would allow, because there's going to be more
bankruptcies filed.
Just $1,000 can push a person over the edge in terms of their
solvency. People are now just living paycheck to paycheck, hand-to-
mouth, trying to determine whether or not we're going to pay the light
bill or whether or not we're going to get the medication that we need
in order to be healthy. People are deciding whether or not to pay the
gas bill or whether or not they're going to be able to eat more than
ramen noodles every night for the month. So $1,000 means a lot. It may
not mean a lot to a millionaire, one of those top 1 percent that my Tea
Party Republican friends so heartily support, but it will hurt the
little man and woman and their families, especially at Christmas time.
At a time when the corporate chieftains are getting their bonuses,
multimillion-dollar bonuses based on increased profits, we're still
left on December 6 with people being worried about whether or not
they're going to suffer a tax increase on January 1. So let's not
impose an average $1,000--actually, $1,500; let's not impose the threat
of a $1,500 tax increase on the middle class and working people by
failing to do what we should have done much earlier. There's no reason
why we have not done this, why we have not expanded the payroll tax cut
that was enacted last year. Let's keep that $1,500 in the pockets of
the average middle class family. Let's try to keep down the need for
people to go into bankruptcy court. Let's at some point let it expire,
the number of bankruptcy court judges temporarily serving.
Mr. CONYERS. I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Texas (Mr. Smith) that the House suspend the rules and
pass the bill, H.R. 1021, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.

____________________