[Congressional Record (Bound Edition), Volume 157 (2011), Part 13]
[House]
[Pages 19017-19019]
[From the U.S. 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.--

[[Page 19018]]

       (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,

     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) 
     remain applicable to the temporary office of the bankruptcy 
     judge referred to in paragraph (1).

     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?
  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

[[Page 19019]]

     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 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.

                          ____________________