[Congressional Record (Bound Edition), Volume 156 (2010), Part 3]
[House]
[Pages 3037-3039]
[From the U.S. 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'',
       (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--

[[Page 3038]]

       (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.
  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.

[[Page 3039]]

  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 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.
  Mrs. NAPOLITANO. Mr. Speaker, H.R. 4506, the Bankruptcy Judgeship Act 
of 2010, will authorize the appointment of additional bankruptcy judges 
into the courts.
  Personal bankruptcy filings have increased by 32 percent in 2009 due 
to the recent economic downturn and skyrocketing unemployment and home 
foreclosure rates. This unprecedented rise has put an increased strain 
on the legal system to respond to bankruptcy claims. This is the first 
piece of legislation that addresses the judicial problems caused by the 
economic turmoil of the past two years.
  The U.S. Judicial Conference, whose membership includes the Chief 
Justice, provided the basis for this legislation which will create 13 
new judgeships and make 22 currently temporary judgeships permanent. 
The bill will pay for these new appointments by increasing the cost for 
corporate bankruptcy.
  The passing of H.R. 4506 would relieve considerable strain on the 
nation's bankruptcy courts through matching the increased workload with 
an expanded judiciary. American law exists to encourage economic growth 
and facilitate new business. The ability for the law to respond 
effectively and fairly is paramount to the turnaround of the country's 
economy.
  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.

                          ____________________