[Congressional Record Volume 163, Number 155 (Wednesday, September 27, 2017)]
[Senate]
[Pages S6189-S6190]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 1106. Mr. INHOFE (for Mr. Grassley) proposed an amendment to 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 follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Bankruptcy Judgeship Act of 
     2017''.

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

       (a) Temporary Office of Bankruptcy Judges Authorized by the 
     Bankruptcy Judgeship Act of 2005.--
       (1) Extensions.--The temporary office of bankruptcy judges 
     authorized for the following districts by subsection (b) of 
     the Bankruptcy Judgeship Act of 2005 (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), and (D), 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) District of delaware.--The 1st, 2d, 3d, and 4th 
     vacancies in the office of a bankruptcy judge for the 
     district of Delaware--
       (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 maryland.--
       (i) The 1st vacancy 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.
       (ii) The 2d and 3d vacancies in the office of a bankruptcy 
     judge for the district of Maryland 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.
       (3) Applicability of provisions.--Except as provided in 
     paragraphs (1) and (2), all other provisions of subsection 
     (b) 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).
       (b) Temporary Office of Bankruptcy Judges Extended by the 
     Bankruptcy Judgeship Act of 2005 and the Temporary Bankruptcy 
     Judgeships Extension Act of 2012.--
       (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 subsection (c) of 
     the Bankruptcy Judgeship Act of 2005 (28 U.S.C. 152 note) and 
     further extended by section 2 of the Temporary Bankruptcy 
     Judgeships Extension Act of 2012 (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 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.
       (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), 
     subsection (c) 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).

     SEC. 3. TEMPORARY OFFICE OF BANKRUPTCY JUDGE AUTHORIZED.

       (a) Appointments.--The following bankruptcy judges shall be 
     appointed in the manner prescribed in section 152(a)(1) of 
     title 28, United States Code, for the appointment of 
     bankruptcy judges provided for in section 152(a)(2) of that 
     title:
       (1) Two additional bankruptcy judges for the district of 
     Delaware.
       (2) One additional bankruptcy judge of the middle district 
     of Florida.

[[Page S6190]]

       (3) One additional bankruptcy judge for the eastern 
     district of Michigan.
       (b) Vacancies.--
       (1) District of delaware.--The 6th and 7th vacancies in the 
     office of a bankruptcy judge for the district of Delaware--
       (A) occurring 5 years or more after the appointment date of 
     the bankruptcy judge appointed under paragraph (1) to such 
     office, and
       (B) resulting from the death, retirement, resignation, or 
     removal of a bankruptcy judge,
     shall not be filled.
       (2) Middle district of florida.--The 1st vacancy in the 
     office of a bankruptcy judge for the middle district of 
     Florida--
       (A) occurring 5 years or more after the appointment date of 
     the bankruptcy judge appointed under paragraph (1) to such 
     office, and
       (B) resulting from the death, retirement, resignation, or 
     removal of a bankruptcy judge,
     shall not be filled.
       (3) Eastern district of michigan.--The 2d vacancy in the 
     office of a bankruptcy judge for the eastern district of 
     Michigan--
       (A) occurring 5 years or more after the appointment date of 
     the bankruptcy judge appointed under paragraph (1) to such 
     office, and
       (B) resulting from the death, retirement, resignation, or 
     removal of a bankruptcy judge,
     shall not be filled.

     SEC. 4. BANKRUPTCY FEES.

       (a) Amendments to Title 28 of the United States Code.--
     Section 1930(a)(6) of title 28, 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) During each of fiscal years 2018 through 2022, if the 
     balance in the United States Trustee System Fund as of 
     September 30 of the most recent full fiscal year is less than 
     $200,000,000, the quarterly fee payable for a quarter in 
     which disbursements equal or exceed $1,000,000 shall be the 
     lesser of 1 percent of such disbursements or $250,000.''.
       (b) Deposits of Certain Fees for Fiscal Years 2018 Through 
     2022.--Notwithstanding section 589a(b) of title 28, United 
     States Code, for each of fiscal years 2018 through 2022--
       (1) 98 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 percent of the fees collected under section 
     1930(a)(6) of such title shall be deposited in the general 
     fund of the Treasury.
       (c) Application of Amendments.--The amendments made by this 
     section shall apply to quarterly fees payable under section 
     1930(a)(6) of title 28, United States Code, as amended by 
     this section, for disbursements made in any calendar quarter 
     that begins on or after the date of enactment of this Act.

     SEC. 5. CLARIFICATION OF RULE ALLOWING DISCHARGE TO 
                   GOVERNMENTAL CLAIMS ARISING FROM THE 
                   DISPOSITION OF FARM ASSETS UNDER CHAPTER 12 
                   BANKRUPTCIES.

       (a) In General.--Subchapter II of chapter 12 of title 11, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec. 1232. Claim by a governmental unit based on the 
       disposition of property used in a farming operation

       ``(a) Any unsecured claim of a governmental unit against 
     the debtor or the estate that arises before the filing of the 
     petition, or that arises after the filing of the petition and 
     before the debtor's discharge under section 1228, as a result 
     of the sale, transfer, exchange, or other disposition of any 
     property used in the debtor's farming operation--
       ``(1) shall be treated as an unsecured claim arising before 
     the date on which the petition is filed;
       ``(2) shall not be entitled to priority under section 507;
       ``(3) shall be provided for under a plan; and
       ``(4) shall be discharged in accordance with section 1228.
       ``(b) For purposes of applying sections 1225(a)(4), 
     1228(b)(2), and 1229(b)(1) to a claim described in subsection 
     (a) of this section, the amount that would be paid on such 
     claim if the estate of the debtor were liquidated in a case 
     under chapter 7 of this title shall be the amount that would 
     be paid by the estate in a chapter 7 case if the claim were 
     an unsecured claim arising before the date on which the 
     petition was filed and were not entitled to priority under 
     section 507.
       ``(c) For purposes of applying sections 523(a), 1228(a)(2), 
     and 1228(c)(2) to a claim described in subsection (a) of this 
     section, the claim shall not be treated as a claim of a kind 
     specified in subparagraph (A) or (B) of section 523(a)(1).
       ``(d)(1) A governmental unit may file a proof of claim for 
     a claim described in subsection (a) that arises after the 
     date on which the petition is filed.
       ``(2) If a debtor files a tax return after the filing of 
     the petition for a period in which a claim described in 
     subsection (a) arises, and the claim relates to the tax 
     return, the debtor shall serve notice of the claim on the 
     governmental unit charged with the responsibility for the 
     collection of the tax at the address and in the manner 
     designated in section 505(b)(1). Notice under this paragraph 
     shall state that the debtor has filed a petition under this 
     chapter, state the name and location of the court in which 
     the case under this chapter is pending, state the amount of 
     the claim, and include a copy of the filed tax return and 
     documentation supporting the calculation of the claim.
       ``(3) If notice of a claim has been served on the 
     governmental unit in accordance with paragraph (2), the 
     governmental unit may file a proof of claim not later than 
     180 days after the date on which such notice was served. If 
     the governmental unit has not filed a timely proof of the 
     claim, the debtor or trustee may file proof of the claim that 
     is consistent with the notice served under paragraph (2). If 
     a proof of claim is filed by the debtor or trustee under this 
     paragraph, the governmental unit may not amend the proof of 
     claim.
       ``(4) A claim filed under this subsection shall be 
     determined and shall be allowed under subsection (a), (b), or 
     (c) of section 502, or disallowed under subsection (d) or (e) 
     of section 502, in the same manner as if the claim had arisen 
     immediately before the date of the filing of the petition.''.
       (b) Technical and Conforming Amendments.--
       (1) In general.--Subchapter II of chapter 12 of title 11, 
     United States Code, is amended--
       (A) in section 1222(a)--
       (i) in paragraph (2), by striking ``unless--'' and all that 
     follows through ``the holder'' and inserting ``unless the 
     holder'';
       (ii) in paragraph (3), by striking ``and'' at the end;
       (iii) in paragraph (4), by striking the period at the end 
     and inserting ``; and''; and
       (iv) by adding at the end the following:
       ``(5) subject to section 1232, provide for the treatment of 
     any claim by a governmental unit of a kind described in 
     section 1232(a).'';
       (B) in section 1228--
       (i) in subsection (a)--

       (I) in the matter preceding paragraph (1)--

       (aa) by inserting a comma after ``all debts provided for by 
     the plan''; and
       (bb) by inserting a comma after ``allowed under section 503 
     of this title''; and

       (II) in paragraph (2), by striking ``the kind'' and all 
     that follows and inserting ``a kind specified in section 
     523(a) of this title, except as provided in section 
     1232(c).''; and

       (ii) in subsection (c)(2), by inserting ``, except as 
     provided in section 1232(c)'' before the period at the end; 
     and
       (C) in section 1229(a)--
       (i) in paragraph (2), by striking ``or'' at the end;
       (ii) in paragraph (3), by striking the period at the end 
     and inserting ``; or''; and
       (iii) by adding at the end the following:
       ``(4) provide for the payment of a claim described in 
     section 1232(a) that arose after the date on which the 
     petition was filed.''.
       (2) Table of sections.--The table of sections for 
     subchapter II of chapter 12 of title 11, United States Code, 
     is amended by adding at the end the following:

``1232. Claim by a governmental unit based on the disposition of 
              property used in a farming operation.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to--
       (1) any bankruptcy case--
       (A) that is pending on the date of enactment of this Act;
       (B) in which the plan under chapter 12 of title 11, United 
     States Code, has not been confirmed on the date of enactment 
     of this Act; and
       (C) relating to which an order of discharge under section 
     1228 of title 11, United States Code, has not been entered; 
     and
       (2) any bankruptcy case that commences on or after the date 
     of enactment of this Act.

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