[Congressional Record Volume 163, Number 85 (Wednesday, May 17, 2017)]
[House]
[Pages H4245-H4248]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
BANKRUPTCY JUDGESHIP ACT OF 2017
Mr. GOODLATTE. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 2266) to amend title 28 of the United States Code 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. 2266
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
2017''.
SEC. 2. CONVERSION OF THE TEMPORARY OFFICE OF BANKRUPTCY
JUDGE TO THE PERMANENT OFFICE OF BANKRUPTCY
JUDGE IN CERTAIN JUDICIAL DISTRICTS.
(a) District of Delaware.--
(1) The temporary office of 4 bankruptcy judges authorized
for the district of Delaware by section 1223(b)(1)(C) of
Public Law 109-8 (119 Stat. 197; 28 U.S.C. 152 note), and
extended by section 2(a)(1)(C) of Public Law 112-121 (126
Stat. 346; 28 U.S.C. 152 note), is converted hereby to the
permanent office of bankruptcy judge and represented in the
amendment made by section 3(1) of this Act, and may be
filled.
(2) The temporary office of bankruptcy judge authorized for
the district of Delaware by section 3(a)(3) of Public Law
102-361 (106 Stat. 966; 28 U.S.C. 152 note), and extended by
section 1223(c)(1) of Public Law 109-8 (119 Stat. 198; 28
U.S.C. 152 note) and section 2(b)(1) of Public Law 112-121
(126 Stat. 347; 28 U.S.C. 152 note), is converted hereby to
the permanent office of bankruptcy judge and represented in
the amendment made by section 3(1) of this Act, and may be
filled.
(b) Southern District of Florida.--The temporary office of
2 bankruptcy judges authorized for the southern district of
Florida by section 1223(b)(1)(D) of Public Law 109-8 (119
Stat. 197; 28 U.S.C. 152 note), and extended by section
2(a)(1)(D) of Public Law 112-121 (126 Stat. 346; 28 U.S.C.
152 note), is converted hereby to the permanent office of
bankruptcy judge and represented in the amendment made by
section 3(3) of this Act, and may be filled.
(c) District of Maryland.--The temporary office of 1
bankruptcy judge first appointed as authorized for the
district of Maryland by section 1223(b)(1)(F) of Public Law
109-8 (119 Stat. 197; 28 U.S.C. 152 note), and extended by
section 2(a)(1)(F) of Public Law 112-121 (126 Stat. 346; 28
U.S.C. 152 note), is converted hereby to the permanent office
of bankruptcy judge and represented in the amendment made by
section 3(4) of this Act, and may be filled.
(d) Eastern District of Michigan.--The temporary office of
bankruptcy judge authorized for the eastern district of
Michigan by section 1223(b)(1)(G) of Public Law 109-8 (119
Stat. 197; 28 U.S.C. 152 note), and extended by section
2(a)(1)(G) of Public Law 112-121 (126 Stat. 346; 28 U.S.C.
152 note), is converted hereby to the permanent office of
bankruptcy judge and represented in the amendment made by
section 3(5) of this Act, and may be filled.
(e) District of Nevada.--The temporary office of bankruptcy
judge authorized for the district of Nevada by section
1223(b)(1)(T) of Public Law 109-8 (119 Stat. 197; 28 U.S.C.
152 note),
[[Page H4246]]
and extended by section 2(a)(1)(Q) of Public Law 112-121 (126
Stat. 346; 28 U.S.C. 152 note), is converted hereby to the
permanent office of bankruptcy judge and represented in the
amendment made by section 3(6) of this Act, and may be
filled.
(f) Eastern District of North Carolina.--The temporary
office of bankruptcy judge authorized for the eastern
district of North Carolina by section 1223(b)(1)(M) of Public
Law 109-8 (119 Stat. 197; 28 U.S.C. 152 note), and extended
by section 2(a)(1)(J) of Public Law 112-121 (126 Stat. 346;
28 U.S.C. 152 note), is converted hereby to the permanent
office of bankruptcy judge and represented in the amendment
made by section 3(7) of this Act, and may be filled.
(g) District of Puerto Rico.--
(1) The temporary office of bankruptcy judge authorized for
the district of Puerto Rico by section 1223(b)(1)(P) of
Public Law 109-8 (119 Stat. 197; 28 U.S.C. 152 note), and
extended by section 2(a)(1)(M) of Public Law 112-121 (126
Stat. 346; 28 U.S.C. 152 note), is converted hereby to the
permanent office of bankruptcy judge and represented in the
amendment made by section 3(8) of this Act, and may be
filled.
(2) The temporary office of bankruptcy judge authorized for
the district of Puerto Rico by section 3(a)(7) of Public Law
102-361 (106 Stat. 966; 28 U.S.C. 152 note), and extended by
section 1223(c)(1) of Public Law 109-8 (119 Stat. 198; 28
U.S.C. 152 note) and section 2(b)(1) of Public Law 112-121
(126 Stat. 347; 28 U.S.C. 152 note), is converted hereby to
the permanent office of bankruptcy judge and is represented
in the amendment made by section 3(8) of this Act, and may be
filled.
(h) Eastern District of Virginia.--The temporary office of
bankruptcy judge authorized for the eastern district of
Virginia by section 1223(b)(1)(R) of Public Law 109-8 (119
Stat. 197; 28 U.S.C. 152 note), and extended by section
2(a)(1)(P) of Public Law 112-121 (126 Stat. 346; 28 U.S.C.
152 note), is converted hereby to the permanent office of
bankruptcy judge and is represented in the amendment made by
section 3(9) of this Act, and may be filled.
SEC. 3. PERMANENT OFFICE OF BANKRUPTCY JUDGE AUTHORIZED.
To reflect the conversion of the temporary office of
bankruptcy judge to the permanent office of bankruptcy judge
made by the operation of section 2, and to authorize the
appointment of additional bankruptcy judges, section
152(a)(2) of title 28 of the United States Code is amended--
(1) in the item relating to the district of Delaware by
striking ``1'' and inserting ``8'',
(2) in the item relating to the middle district of Florida
by striking ``8'' and inserting ``9'',
(3) in the item relating to the southern district of
Florida by striking ``5'' and inserting ``7'',
(4) in the item relating to the district of Maryland by
striking ``4'' and inserting ``5'',
(5) in the item relating to the eastern district of
Michigan by striking ``4'' and inserting ``6'',
(6) in the item relating to the district of Nevada by
striking ``3'' and inserting ``4'',
(7) in the item relating to the eastern district of North
Carolina by striking ``2'' and inserting ``3'',
(8) in the item relating to the district of Puerto Rico by
striking ``2'' and inserting ``4'', and
(9) in the item relating to the eastern district of
Virginia by striking ``5'' and inserting ``6''.
SEC. 4. BANKRUPTCY FEES.
(a) Amendments to Title 28 of the United States Code.--
Section 1930(a)(6) of title 28 of the United States Code is
amended--
(1) by striking ``(6) In'' and inserting ``(6)(A) Except as
provided in subparagraph (B), in'', and
(2) by adding at the end the following:
``(B) In any fiscal year, the quarterly fee payable for a
quarter in which disbursements equal or exceed $1,000,000
shall be 1 percent of such disbursements or $250,000,
whichever is less, unless the balance in the United States
Trustee System Fund as of September 30 immediately preceding
such fiscal year exceeds $200,000,000.''.
(b) Deposits of Certain Fees for Fiscal Years 2018 Through
2022.--Notwithstanding section 589a(b) of title 28 of the
United States Code, for each of the fiscal years 2018 through
2022--
(1) 97.5 percent of the fees collected under section
1930(a)(6) of such title shall be deposited as offsetting
collections to the appropriation ``United States Trustee
System Fund'', to remain available until expended, and
(2) 2.5 percent of the fees collected under section
1930(a)(6) of such title shall be deposited in the general
fund of the Treasury.
(c) Effective Date; Application Amendments.--
(1) Effective date.--Except as provided in paragraph (2),
this section shall take effect on July 1, 2017, or on the
date of the enactment of this Act, whichever is later.
(2) Application of amendments.--The amendments made by this
section shall apply to quarterly fees payable under section
1930(a)(6) of title 28 of the United States Code, as amended
by this section, for disbursements made in any calendar
quarter that begins on or after the effective date of the
amendments made by this section.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Virginia (Mr. Goodlatte) and the gentleman from Michigan (Mr. Conyers)
each will control 20 minutes.
The Chair recognizes the gentleman from Virginia.
General Leave
Mr. GOODLATTE. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days in which to revise and extend their remarks
and include extraneous material on H.R. 2266, currently under
consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Virginia?
There was no objection.
Mr. GOODLATTE. Mr. Speaker, I yield myself such time as I may
consume.
We are here today to address an imposing threat to one of the
foundational aspects of our economy, the national bankruptcy system. A
well-functioning bankruptcy system provides relief to consumers, allows
businesses to reorganize, preserves jobs, maximizes the value of
assets, and ensures the proper allocation of resources. Our bankruptcy
judiciary is the heartbeat that keeps this system moving. If that
judiciary is strained and undermanned, that system will grind to a
halt, eliminating the essential benefits it provides and sending
repercussions throughout the economy.
There are presently 29 temporary bankruptcy judgeships in the
bankruptcy system with a lapse date of May 25. These temporary
judgeships comprise more than 8 percent of the current bankruptcy
judgeships nationwide. After May 25, 2017, these judgeships are at risk
of being permanently lost, resulting in larger caseloads shared by
fewer judges and causing further strain on our judiciary system.
The Bankruptcy Judgeship Act of 2017 converts 14 of the existing
temporary judgeships to permanent status and creates 4 new permanent
bankruptcy judgeships in districts with some of the highest caseloads
in the country. In fact, since the enactment of the Bankruptcy Abuse
Prevention and Consumer Protection Act of 2005, when a majority of the
temporary judgeships were created, these districts have seen weighted
filings increase by more than 55 percent.
This bill is based on a comprehensive study of judicial resource
needs conducted by the Judicial Conference and is supported by the
Administrative Office of the U.S. Courts. The Conference has assured us
that its request comes only after it has taken steps to maximize all
other alternatives to reduce judicial workloads. Moreover, the
Conference has demonstrated that, while a district may have a permanent
judgeship, it will not be filled unless completely necessary.
Importantly, this bill will not present any new costs for the
taxpayers. The Bankruptcy Judgeship Act includes an increase in the
quarterly U.S. Trustee fees for large chapter 11 debtors, excluding
small businesses. This fee increase is directly tied to the balance of
the United States Trustee System Fund and will only be applied when the
balance of the fund falls below a $200 million threshold, thereby
ensuring that the Office of the U.S. Trustee is properly funded.
These temporary bankruptcy judgeships were first set to lapse in
2010. Most have been extended for over 12 years, and some even longer.
Despite this committee's efforts to address the issue, to date there
have been only limited, short-term fixes. Additional permanent
bankruptcy judgeships have not been authorized since 1992.
The time has come for Congress to address bankruptcy judgeship needs
more permanently. We need a bankruptcy system that has a sufficient
number of judges to be able to manage the caseloads in a just,
economical, and timely manner. The efficiency of this system is too
important to our economy to risk. This bill helps ensure that we have
such a system.
I would like to thank Ranking Member Conyers for his efforts on this
issue. I would also like to thank Regulatory Reform, Commercial and
Antitrust Law Subcommittee Chairman Marino and Ranking Member Cicilline
for joining me as original cosponsors of the bill. I urge my colleagues
to vote in favor of this important legislation.
Mr. Speaker, I reserve the balance of my time.
Mr. CONYERS. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in strong support of H.R. 2266, the Bankruptcy
Judgeship Act of 2017, which would make 14 temporary bankruptcy
judgeships permanent and authorize four additional bankruptcy
judgeships.
I introduced this bipartisan legislation together with the support of
Judiciary Committee Chairman Goodlatte, along with Regulatory Reform,
[[Page H4247]]
Commercial and Antitrust Law Subcommittee Chairman Marino and Ranking
Member Cicilline. H.R. 2266 warrants the support from my colleagues on
both sides of the aisle for several reasons.
To begin with, this measure reflects the recommendations of the
Judicial Conference of the United States with respect to the judicial
resource needs of our Nation's bankruptcy courts. These recommendations
are themselves based on a comprehensive survey of all judicial
circuits.
This analysis consists of two components. The first is premised on a
case-weight formula devised by the Federal Judicial Center that is
intended to provide a more accurate and useful measure of judicial
workload than a mere count of case filings.
The second component considers a broad array of other factors,
including the nature of a court's caseload, filing trends, demographic
considerations, geographic issues, and economic aspects, among other
items.
Taken together, the resulting analysis provides a reliable basis upon
which Congress may assess the necessity of authorizing additional
judgeships and extending temporary judgeships.
In addition, H.R. 2266 addresses an immediate need. All of the
temporary judgeships addressed in H.R. 2266 will lapse as of May 25,
which is just a week away.
Once a temporary judgeship lapses, any ensuing vacancy may not be
filled, which presents a serious concern. As the Judicial Conference
warns, these bankruptcy courts would ``face a serious and, in many
cases, debilitating workload crisis if their temporary judgeships were
to expire.''
This is particularly true with respect to the Eastern District of
Michigan, which has a weighted caseload well in excess of the minimum
necessary to trigger additional judicial resources.
Although Congress has previously extended temporary bankruptcy
judgeships from time to time, some have also lapsed as a result of
Congress' failure to timely act. So to avoid future lapses in judicial
resources, my legislation converts 14 of these temporary judgeships to
permanent status.
Finally, I am pleased to report that H.R. 2266 pays for all of these
judgeships without having to require consumer debtors to bear that
expense. The cost of this legislation is offset by increasing the
quarterly fees that the largest 10 percent of chapter 11 debtors pay to
the United States Trustee System Fund, a proposal initially made by the
Obama administration as part of the President's budget request for
2017.
Specifically, the fee increase would apply only to chapter 11 debtors
that have quarterly disbursements in excess of $1 million and only
during the period when the fund has less than $200 million.
For all of these various reasons, I support this legislation.
Mr. Speaker, I reserve the balance of my time.
Mr. GOODLATTE. Mr. Speaker, I am prepared to close, and I reserve the
balance of my time.
Mr. CONYERS. Mr. Speaker, I yield such time as she may consume to the
gentlewoman from Delaware (Ms. Blunt Rochester).
Ms. BLUNT ROCHESTER. Mr. Speaker, I include in the Record a letter
from the Judicial Conference.
Judicial Conference of the
United States,
Washington, DC, April 3, 2017.
Hon. Paul D. Ryan,
Speaker, House of Representatives,
Washington, DC.
Dear Mr. Speaker: On behalf of the Judicial Conference of
the United States, I write to transmit the Conference's
bankruptcy judgeship recommendations and corresponding draft
legislation for the 115th Congress. The Conference recommends
to Congress that it authorize four additional permanent
bankruptcy judgeships and convert 14 existing temporary
bankruptcy judgeships to permanent status, as set forth in
the enclosures.
The preservation of current on-board resources in these
courts is of great concern to the Conference. All 14
temporary bankruptcy judgeships included in the Conference's
recommendation have a lapse date of May 25, 2017. These
bankruptcy courts would face a serious and, in many cases,
debilitating workload crisis if these temporary judgeships
were to expire. The U.S. Bankruptcy Court for the District of
Delaware, for example, would be crippled as five of their six
authorized judgeships are temporary, all with the risk of
expiring in 2017.
Although bankruptcy filings nationwide have been declining
in recent years, the districts included in these
recommendations generally have experienced an increase in
filings resulting in stress on existing judicial resources.
Indeed, since the enactment of the Bankruptcy Abuse
Prevention and Consumer Protection Act in 2005, Pub. L. No.
109-8--the last time additional judgeship resources were
authorized for most of the courts included in the
Conference's recommendation--these districts have seen
weighted filings increase by more than 55 percent.
Section 152(b)(2) of title 28, United States Code, requires
the Judicial Conference to recommend to Congress the
authorization of additional bankruptcy judgeships. Following
a formal survey of all judicial circuits, the Conference
determines where additional resources are needed based upon
the circuit councils' requests and established criteria
including each court's workload and case filing statistics,
geographic needs, and pertinent additional factors. As part
of this survey, the Judicial Conference also considers
requests from the circuits to convert or extend existing
temporary bankruptcy judgeships based upon the district's
needs for stable judicial resources.
The Judicial Conference respectfully requests that you give
your full consideration to the Judiciary's resource needs as
identified in this proposed legislation. Additional caseload
information concerning these recommendations is available
upon request.
If we may be of further assistance to you in this or any
other matter, please do not hesitate to contact me or the
Office of Legislative Affairs, Administrative Office of the
U.S. Courts.
Sincerely,
James C. Duff,
Secretary.
Ms. BLUNT ROCHESTER. Mr. Speaker, I want to thank Mr. Conyers and my
colleagues on the House Judiciary Committee for their work on this
important legislation and for bringing this bill to the floor today.
An efficient bankruptcy system is important to the smooth functioning
of our economy. The preservation and addition of these positions will
add needed certainty to our legal system.
As the Judicial Conference of the United States highlighted in their
report to Congress, these resources will benefit individuals and
corporations, and are necessary to keep this system working. I am proud
of the work that the U.S. Bankruptcy Court for the District of Delaware
does to protect jobs, creditors, and economic engines in our
communities across the country.
This legislation is a perfect example of Congress hearing the needs
of independent experts in the judiciary and acting in a bipartisan,
collaborative manner to address a looming problem.
I look forward to continuing to work with my colleagues on other
pressing problems for our constituents in such collaborative ways. I
urge all of my colleagues to support the Bankruptcy Judgeship Act of
2017.
{time} 1415
Mr. CONYERS. Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, in closing, I am pleased to note that H.R. 2266 is
supported by the American Bar Association, the Federal Bar Association,
the American College of Bankruptcy, and the National Conference of
Bankruptcy Judges.
I want to also express appreciation to our Judiciary chairman, Mr.
Goodlatte, to Chairman Marino and Ranking Member Cicilline, as well as
their staffs, for their cooperative efforts in working with me on this
bipartisan legislation.
Mr. Speaker, given the time-sensitive nature of the temporary
judgeships addressed by H.R. 2266 and the immediate need for additional
bankruptcy judgeships to be authorized, it is my hope that our
colleagues in the Senate will expeditiously consider this important
legislation. I urge all of the Members here to support this measure.
Mr. Speaker, I yield back the balance of my time.
Mr. GOODLATTE. Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, permanent bankruptcy judgeships have not been authorized
since 1992. Over the past 25 years, we have limited our protection of
the bankruptcy system to short-term temporary fixes. A well-functioning
bankruptcy system, however, is too important to our economy to risk.
Now is the time for Congress to address bankruptcy judgeship needs more
permanently.
The Bankruptcy Judgeship Act is a measured, long-term solution
carefully crafted and based on the well-developed recommendation of the
Administrative Office of the Courts. Not only does it ensure the
viability of our bankruptcy
[[Page H4248]]
system, but it also addresses the funding concerns of the Office of the
United States Trustee.
This bill is a bipartisan measure that enjoys broad support from
outside groups, including the American Bar Association, the Federal Bar
Association, the National Conference of Bankruptcy Judges, and the
American College of Bankruptcy. I urge my colleagues to vote in favor
of this important legislation.
Mr. Speaker, I yield back the balance of my time.
Mr. CICILLINE. Mr. Speaker, I rise in support of H.R. 2266, the
``Bankruptcy Judgeship Act of 2017,'' which authorizes the
establishment of four additional permanent bankruptcy judgeships and
converts 14 temporary bankruptcy judgeships to permanent status.
I am pleased to be an original cosponsor of this legislation, which
is a necessary response to alleviate the strain on certain bankruptcy
courts that have experienced a significant increase in bankruptcy
filings over the past decade or more.
Importantly, this legislation adopts the recommendations of the
Judicial Conference of the United States, the national policymaking
body of the federal courts, and does not impose additional fees on
ordinary consumer debtors or small businesses.
As the Conference notes in support of this measure, while bankruptcy
filings have decreased nationwide, the bankruptcy courts that would
receive permanent or new judgeships under this legislation ``have seen
weighted filings increase by more than 55 percent.''
Furthermore, without this legislation, all 14 temporary judgeships
covered by this bill will lapse later this month on May 25.
Allowing a lapse in these judgeships would have potentially crippling
effects on the bankruptcy system.
For example, five of the six authorized judgeships of the U.S.
Bankruptcy Court of the District of Delaware--the preferred venue for
corporate reorganization under Chapter 11--are temporary.
Accordingly, I urge my colleagues to support this important
legislation.
I thank Ranking Member Conyers, the bill's sponsor, for his
leadership on this bill, along with Judiciary Committee Chairman
Goodlatte and Subcommittee Chairman Marino for their support.
Ms. JACKSON LEE. Mr. Speaker, I rise in strong support of H.R. 2266,
the ``Bankruptcy Judgeship Act of 2017.''
H.R. 2266, the ``Bankruptcy Judgeship Act of 2017,'' would authorize
four additional permanent bankruptcy judgeships and convert 14
temporary bankruptcy judgeships to permanent status based on the most
recent recommendation of the Judicial Conference of the United States.
H.R. 2266 was introduced on May 1, 2017 by Ranking Member John
Conyers, Jr. (D-MI) together with Chairman Bob Goodlatte and
Subcommittee on Regulatory Reform, Commercial and Antitrust Law Chair
Tom Marino (R-PA) and Ranking Member David Cicilline (D-RI) as original
cosponsors.
This bipartisan legislation is time-sensitive as the temporary
judgeships are due to expire on May 25, 2017. No hearing has been held
on this legislation.
A bankruptcy judge may hear and determine all cases arising under the
Bankruptcy Code and certain related proceedings. A district court,
however, may withdraw--in whole or in part--any case or proceeding
referred to a bankruptcy judge. If designated by the district to
exercise such authority, a bankruptcy judge may conduct a jury trial on
consent of all the parties.
Currently pending before Congress is H.R. 244, the ``Consolidated
Appropriations Act, 2017,'' which extends for one year the temporary
judgeships for the District of Delaware (two judgeships), the Southern
District of Florida (two judgeships); the Eastern District of Michigan;
the District of Puerto Rico; and the Eastern District of Virginia.
In analyzing bankruptcy judgeship needs, the Judicial Conference
employs, as a first step, a case weight formula devised by the Federal
Judicial Center that is intended to provide a more accurate and useful
measure of judicial workload than a mere count of filings does.
Pursuant to Conference policy, ``if a district's annual weighted
caseload per authorized judgeship is 1,500 weighted filings or more,
the district will receive consideration for an additional judgeship.''
With respect to the Conference's current request for additional
bankruptcy judgeships, the weighted case filings have increased by more
than 55 percent for most of these districts since the last time
additional judgeships were authorized in 2005, according to the
Conference.
In addition, all 14 of the temporary bankruptcy judgeships that the
bill converts to permanent status are set to lapse as of May 25, 2017.
To offset the cost of this legislation, H.R. 2266 increases the
quarterly fee payable that chapter 11 debtors pay to the United States
Trustee System Fund, but only with respect to debtors that have
quarterly disbursements in excess of $1 million dollars during the
period when the Fund has less than $200 million.
This provision is substantively identical to a legislative proposal
made by the prior Administration as represented in President Barack
Obama's budget request for 2017.
Taken together, the resulting analysis provides a reliable basis upon
which Congress may assess the necessity of authorizing additional
judgeships and extending temporary judgeships.
For all of these reasons, I support this legislation.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Virginia (Mr. Goodlatte) that the House suspend the
rules and pass the bill, H.R. 2266, 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.
____________________