[Congressional Record Volume 166, Number 208 (Wednesday, December 9, 2020)]
[Senate]
[Pages S7372-S7375]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            BANKRUPTY ADMINISTRATION IMPROVEMENT ACT OF 2020

  Mr. INHOFE. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of S. 4996, introduced earlier 
today.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The clerk will report the bill by title.
  The senior assistant legislative clerk read as follows:

       A bill (S. 4996) to ensure funding of the United States 
     trustees, extend temporary bankruptcy judgeships, and for 
     other purposes.

  There being no objection, the Senate proceeded to consider the bill.

[[Page S7373]]

  

  Mr. INHOFE. I ask unanimous consent that the bill be considered read 
a third time and passed and the motion to reconsider be considered made 
and laid upon the table.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (S. 4996) was ordered to be engrossed for a third reading, 
was read the third time, and passed as follows

                                S. 4996

       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

[[Page S7374]]

       (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

[[Page S7375]]

     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''.

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