[House Report 112-152]
[From the U.S. Government Publishing Office]


112th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    112-152

======================================================================



 
         TEMPORARY BANKRUPTCY JUDGESHIPS EXTENSION ACT OF 2011

                                _______
                                

 July 19, 2011.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

       Mr. Smith of Texas, from the Committee on the Judiciary, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 1021]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on the Judiciary, to whom was referred the 
bill (H.R. 1021) to prevent the termination of the temporary 
office of bankruptcy judges in certain judicial districts, 
having considered the same, report favorably thereon with an 
amendment and recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
The Amendment....................................................     1
Purpose and Summary..............................................     3
Background and Need for the Legislation..........................     4
Hearings.........................................................     9
Committee Consideration..........................................     9
Committee Votes..................................................     9
Committee Oversight Findings.....................................     9
New Budget Authority and Tax Expenditures........................     9
Congressional Budget Office Cost Estimate........................     9
Performance Goals and Objectives.................................    12
Advisory on Earmarks.............................................    12
Section-by-Section Analysis......................................    12

                             The Amendment

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

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 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.--
          (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).

                          Purpose and Summary

    With respect to the Federal judicial districts listed in 
the bill, H.R. 1021 extends the time period within which a 
vacancy in the office of bankruptcy judge caused by death, 
resignation, retirement, or removal may be filled (with respect 
to each judgeship, the ``Lapse Date''). Temporary bankruptcy 
judgeships were authorized for these districts by Pub. L. Nos. 
102-361 and 109-8. The Lapse Date for certain of these 
judgeships was extended by Pub. L. No. 109-8. Currently, the 
Lapse Dates for the judgeships affected by this bill either 
have already passed or are soon approaching. This bill will 
prevent the possible loss of bankruptcy judgeships in judicial 
districts that, according to a biennial caseload-per-judge 
evaluation conducted by the Judicial Conference of the United 
States, have a continuing need for bankruptcy judges.

                Background and Need for the Legislation

                            I. INTRODUCTION

    The volume of bankruptcy cases commenced in the United 
States continues to grow as individuals and businesses attempt 
to cope with the effects of the recent recession. In the 12-
month period ending September 30, 2007, 801,269 bankruptcy 
cases were commenced.\1\ Just 3 years later, in the 12-month 
period ending September 30, 2010, the number of cases commenced 
almost doubled to 1,596,355.\2\ Moreover, in fiscal year 2010, 
the number of cases commenced rose in 73 of the Federal 
judiciary's 90 bankruptcy courts, remained steady in one court, 
and decreased in 16 courts.\3\
---------------------------------------------------------------------------
    \1\Admin. Office of the U.S. Courts, Judicial Business of the 
United States Courts: 2008 Annual Report of the Director 293 (U.S. 
Gov't Printing Office 2009).
    \2\Admin. Office of the U.S. Courts, Judicial Business of the 
United States Courts: 2010 Annual Report of the Director 295 (U.S. 
Gov't Printing Office 2011).
    \3\Id. at 32.
---------------------------------------------------------------------------
    Bankruptcy cases have also become more complex in recent 
years due to the statutory changes made by the Bankruptcy Abuse 
Prevention and Consumer Protection Act of 2005 (BAPCPA) and to 
other factors.\4\ Witnesses at a 2009 hearing before the House 
Committee on the Judiciary's Subcommittee on Commercial and 
Administrative Law testified that BAPCPA's new types of 
proceedings and motions have increased the amount of time and 
attention a bankruptcy judge must pay to a particular case.\5\ 
At that hearing, Judge Lynn also testified that there are more 
``mega-cases'' today with numerous complicated disputes among 
litigants that consume a significant amount of a bankruptcy 
judge's time.\6\
---------------------------------------------------------------------------
    \4\Pub. L. No. 109-8, 119 Stat. 23 (2005).
    \5\See Bankruptcy Judgeship Needs: Hearing Before the Subcomm. on 
Commercial and Admin. Law of the H. Comm. on the Judiciary (the 
``Bankruptcy Judgeships Hearing''), 111th Cong. 6 (statement of Hon. 
Barbara M.G. Lynn, District Judge, U.S. district court for the Northern 
District of Texas, on behalf of the Judicial Conference of the United 
States) (the ``Lynn Statement''), 56 (statement Hon. David S. Kennedy, 
Chief Judge, U.S. Bankruptcy Court for the Western District of 
Tennessee, on behalf of the National Conference of Bankruptcy Judges) 
(2009).
    \6\Bankruptcy Judgeships Hearing 10 (Lynn Statement) (``Cases such 
as Chrysler, Circuit City, and other national and international 
corporate reorganizations consume a tremendous amount of a bankruptcy 
court's time.'')
---------------------------------------------------------------------------
    Notwithstanding this recent increase in the volume and 
complexity of bankruptcy cases, the number of Federal 
bankruptcy judgeships has not increased since 2005.\7\ 
Bankruptcy judges serve as judicial officers of the U.S. 
District Courts and preside over the bankruptcy court for their 
respective districts.\8\ The number of bankruptcy judgeships in 
each district is determined by Congress, which receives a 
report every 2 years from the Judicial Conference on the need 
for additional judges.\9\ The 2009 report, upon which H.R. 4506 
was based in the 111th Congress, recommended that Congress 
authorize 13 new bankruptcy judgeships, convert 22 existing 
temporary bankruptcy judgeships to permanent status, and extend 
two existing temporary judgeships for 5 years.\10\ The 2011 
report recommends that Congress authorize 49 new bankruptcy 
judgeships, convert 28 temporary judgeships to permanent 
status, and extend two existing temporary judgeships for 5 
years.\11\
---------------------------------------------------------------------------
    \7\BAPCPA created 24 temporary judgeships--23 fewer judgeships than 
the Judicial Conference determined were needed just prior to its 
enactment. Pub. L. No. 109-8, Sec. 1223 (codified at 28 U.S.C. Sec. 152 
(2006)).
    \8\See 28 U.S.C. Sec. Sec. 152(a), 157 (2006).
    \9\See 28 U.S.C. Sec. 152(b)(2) (2006).
    \10\Judicial Conference of the United States, 2009 Bankruptcy 
Judgeship Recommendations (on file with Committee); see Bankruptcy 
Judgeships Hearing 18 (Lynn Statement at ``Attachment 1'').
    \11\Judicial Conference of the United States, 2011 Bankruptcy 
Judgeship Recommendations (on file with Committee).
---------------------------------------------------------------------------

     II. HOW THE NEED FOR ADDITIONAL BANKRUPTCY JUDGES IS ASSESSED

    The Judicial Conference's recommendation to Congress 
concerning the need for bankruptcy judgeships is the product of 
a multi-step process. First, a bankruptcy court submits a 
request for additional bankruptcy judgeships to the district 
court, which transmits the request to the circuit court. Then, 
the circuit's judicial council considers the request and either 
approves it, with or without modification, or disapproves it. 
Approved requests are then sent to the Judicial Conference's 
Bankruptcy Committee's Subcommittee on Judgeships for 
consideration. The Subcommittee reviews the circuit court's 
recommendation, conducts on-site evaluations of judicial needs, 
and makes a recommendation to the full Bankruptcy Committee. 
The Bankruptcy Committee reviews the Subcommittee's findings 
and makes a recommendation to the full Judicial Conference. 
Upon final approval, the recommendation is then transmitted by 
the Judicial Conference to Congress in its biennial report.\12\
---------------------------------------------------------------------------
    \12\Bankruptcy Judgeships Hearing 47 (Lynn Statement at 
``Attachment 4'').
---------------------------------------------------------------------------
    It is the practice of the Judicial Conference to use a 
``weighted case filing'' method to determine judicial needs. 
This method assigns a case weight to each new case filed based 
on its complexity, the number of parties involved, and other 
data relevant to assessing how the case will affect judicial 
workload.\13\ Case weights are based on a 1988-1989 study in 
which bankruptcy judges completed diaries on how many hours 
they spent on specific types of cases.\14\ Weighted case 
filings per judgeship equals the annual total of weighted case 
filings in a district divided by the number of authorized 
judgeships in that district. For example, if a judicial 
district had 5,100 weighted bankruptcy case filings and three 
authorized judgeships, the weighted case filings per judgeship 
is 1,700.
---------------------------------------------------------------------------
    \13\Id. at 49 (Lynn Statement at ``Attachment 5'').
    \14\Id.
---------------------------------------------------------------------------
    The Judicial Conference has established 1,500 annual 
weighted case filings per judgeship as the benchmark for 
determining whether a bankruptcy court needs additional 
judgeships.\15\ If filings in a bankruptcy court are over 1,500 
weighted cases per judge per year, the Judicial Conference will 
consider, along with other factors, whether additional 
judgeships are needed. It should be noted that the Judicial 
Conference's policy is to consider additional judgeships only 
for those courts that request them. Thus if a district's 
weighted caseload would support requesting another judgeship 
but the district does not submit a request, the Judicial 
Conference will not recommend to Congress that the judgeship be 
created.\16\ Additionally, if a vacancy arises that could be 
filled under the authorizing statute but the Judicial 
Conference determines the need is not sufficient to fill that 
position or an alternative approach is available, it does not 
recommend to Congress that it be filled.\17\
---------------------------------------------------------------------------
    \15\Id. at 50-51.
    \16\See id. at 47 (Lynn Statement at ``Attachment 4'') 
(determination of judicial need is initiated by the district court on 
behalf of bankruptcy court).
    \17\See Bankruptcy Judgeships Hearing 6 (Lynn Statement) (``The 
conference takes seriously its role as a steward of taxpayer dollars, 
and I assure you that we have requested judgeship vacancies be filled 
only where there is a workload need after exploring all alternatives to 
filling the need for additional resources.'')
---------------------------------------------------------------------------

                   III. COST OF BANKRUPTCY JUDGESHIPS

    The short title of H.R. 1021 is the ``Temporary Bankruptcy 
Judgeships Extension Act of 2011.'' There is no provision in 
the United States Code, however, that authorizes an office 
called a ``temporary bankruptcy judgeship.'' Every bankruptcy 
judge is appointed to a 14-year term and is paid 92 percent of 
a district court judge's salary (approximately $155,756 per 
year).\18\ Bankruptcy judges with at least 14 years of judicial 
service are eligible for a pension equal to 100 percent of the 
salary the judge was receiving at the time he or she left 
office once he or she reaches age 65.\19\
---------------------------------------------------------------------------
    \18\28 U.S.C. Sec. Sec. 152(a)(1), 153 (2006).
    \19\Id. Sec. 377 (2006).
---------------------------------------------------------------------------
    What, then, makes a bankruptcy judgeship ``temporary''? The 
temporariness refers to the provision of H.R. 1021 that 
prohibits the filling of the first vacancy in the office of 
bankruptcy judge caused by death, resignation, retirement, or 
removal in a judicial district after 5 years. It need not be--
and very frequently is not--the death, resignation, retirement, 
or removal of the particular judge appointed when the temporary 
bankruptcy judgeship is created. After all, that judge would be 
beginning to serve the 6th year of his 14-year judgeship when 
the lapse date is reached. Consider the District of New Jersey 
for example. The Bankruptcy Abuse Prevention and Consumer 
Protection Act of 2005 (BAPCPA) authorized one ``temporary'' 
judgeship for New Jersey. That judgeship was filled on October 
11, 2006. So, if the District of New Jersey suffers a vacancy 
in the office of bankruptcy judgeship after October 11, 2011, 
and if the vacancy is the result of a bankruptcy judge's death, 
resignation, removal, or retirement, the Judicial Conference 
cannot fill the vacancy. (It is likely, though, that the 
particular judge appointed in October 2006 will still be 
serving his 14-year term in October 2011.)
    In the 111th Congress, Reps. Cohen, Smith (TX), and Conyers 
introduced H.R. 4506, the Bankruptcy Judgeship Act of 2010. 
That bill was much broader in scope than H.R. 1021. H.R. 4506 
would have created new judgeships, converted existing temporary 
judgeships to permanent status, and extended by 5 years certain 
temporary judgeships.\20\ Members and Committee staff expected 
the Congressional Budget Office (CBO) to conclude that the 
provisions of H.R. 4506 that authorized permanent judgeships 
would increase the federal deficit. And CBO did conclude just 
that. It estimated that those provisions would increase direct 
spending by $24 million over the next 10 years:
---------------------------------------------------------------------------
    \20\H.R. 4506, 111th Cong. (2010).

        H.R. 4506 also would make 22 judgeships on the 
        bankruptcy courts that are currently temporary 
        positions permanent. Under current law, those temporary 
        judgeships will remain filled for 5 years or until a 
        vacancy occurs, whichever is later. CBO cannot predict 
        the timing of vacancies. Therefore, we cannot estimate 
        how the conversion of the 22 judgeships into permanent 
        positions under the legislation would affect the 
        federal budget over the next 10 years. (The same is 
        true for temporary judgeships that are extended but not 
        made permanent under the bill.) For this estimate, CBO 
        assumes that there would be no effect on the federal 
        budget from this provision over the next 10 years. 
        However, if any of the temporary judges were to die, 
        retire, resign, or be removed during the next 10 years, 
        the bill would require that position be filled at an 
        additional cost that would not be incurred under 
        current law.\21\ [Emphasis added.]
---------------------------------------------------------------------------
    \21\See H.R. Rep. No. 111-430, at 10 (2010). The assertion in the 
last sentence of this paragraph is not accurate. The bill would have 
authorized a vacancy to be filled, but it would not have ``required'' 
it to be filled. Sometimes, the Judicial Conference elects not to fill 
a vacant judgeship because the caseload in the judicial district has 
decreased.

    However, with respect to Section 4 of H.R. 4506, the 
section that simply extended the temporary office of bankruptcy 
judge in certain judicial districts, CBO observed that it could 
not predict when a specified vacancy in the office of 
bankruptcy judge in those districts would occur, and therefore 
gave it no score.\22\ The cost of the provisions of H.R. 4506 
that did score was more than paid for by Section 5, which 
increased filing fees for bankruptcy cases.\23\
---------------------------------------------------------------------------
    \22\See id.
    \23\See id. at 9 (``In total, the changes to direct spending and 
revenue made by H.R. 4506 would reduce future budget deficits by about 
$1 million over the 2010-2015 period and about $3 million over the 
2010-2020 period.'')
---------------------------------------------------------------------------
    This Congress, in preparing H.R. 1021 for bipartisan 
introduction, Republican and Democratic staff of the Judiciary 
Committee relied entirely on the ``zero'' score that CBO gave 
to the section of H.R. 4506 that simply extended temporary 
bankruptcy judgeships. H.R. 1021 is identical in nature to 
Section 4 of H.R. 4506. Remarkably, however, CBO's cost 
estimate of this provision changed in just 12 months. As set 
forth below, CBO concludes that H.R. 1021 authorizes new direct 
(mandatory) spending. It estimates the bill will cost $5 
million over the next 10 years.
    CBO's sudden change in the methods it employs to score the 
extension of temporary bankruptcy judgeships confesses its 
apparently newfound ability to predict when a bankruptcy judge 
will die, resign, retire, or be removed, despite the absence of 
any objective data concerning the same. It also means that CBO 
is newly able to predict whether 4 or 5 years from now the 
Judicial Conference will make the decision to fill a bankruptcy 
judge vacancy in one of the specified judicial districts. 
Despite its inability to make such predictions in February 
2010, it is reasonable now to assume that CBO is able to 
predict the caseload that such judicial district will bear at 
that future time and the rubric that the Judicial Conference 
will use in the future to determine judicial need. 
Additionally, CBO obviously disregarded the proclivities of 
individual bankruptcy judges who are eligible for retirement to 
elect to retire just before the 5-year deadline so as to 
preserve a bankruptcy judgeship in their district.
    The Committee is disappointed to report this bill with a 
CBO cost estimate that concludes the bill will increase the 
federal deficit by a few million dollars. In authoring H.R. 
1021, the sponsors assumed that CBO's scoring methodology would 
remain consistent at least for a period as short as 1 year. 
Unfortunately, that assumption has proven to be faulty.

                        IV. LEGISLATIVE HISTORY

    In the 111th Congress, Representatives Cohen, Smith, and 
Conyers introduced the Bankruptcy Judgeship Act of 2010. 
Consistent with all of the recommendations in the Judicial 
Conference's 2009 report, that bill would have authorized new 
permanent judgeships, converted temporary judgeships to 
permanent status, and extended some temporary judgeships.\24\ 
To offset the cost, that bill would have increased filing fees 
in chapter 7 and 13 bankruptcy cases by one dollar and in 
chapter 11 cases by 42 dollars. The House Judiciary Committee 
held one hearing on the bill in the 111th Congress. The 
Bankruptcy Judgeship Act of 2010 passed the House by a vote of 
345-5.\25\ The Senate did not vote on the bill and it therefore 
did not become law.
---------------------------------------------------------------------------
    \24\Bankruptcy Judgeship Act of 2010, H.R. 4506, 111th Cong. 
(2010).
    \25\Roll no. 111, 111th Cong., 2d Sess. (2010).
---------------------------------------------------------------------------
    H.R. 1021, the Temporary Bankruptcy Judgeships Extension 
Act of 2011, as amended, is a more limited bill than the 
Bankruptcy Judgeships Act of 2010. This bill, as amended, does 
not create any new permanent judgeships--whether completely new 
or from existing temporary judgeships--but merely extends the 
Lapse Date for 30 existing temporary judgeships. Upon enactment 
of the bill, a vacancy in the office of bankruptcy judge in its 
respective district resulting from a judge's death, removal, 
resignation, or retirement may be filled until 5 years after 
the date of enactment. The affected districts and number of 
temporary judgeships whose Lapse Date H.R. 1021 extends are as 
follows:


------------------------------------------------------------------------
              Judicial District                   Judgeships Extended
------------------------------------------------------------------------
Central District of California...............                         3
Eastern District of California...............                         1
District of Delaware.........................                         5
Southern District of Florida.................                         2
Southern District of Georgia.................                         1
District of Maryland.........................                         3
Eastern District of Michigan.................                         1
District of New Jersey.......................                         1
Northern District of New York................                         1
Southern District of New York................                         1
Eastern District of North Carolina...........                         1
Middle District of North Carolina............                         1
Eastern District of Pennsylvania.............                         1
Middle District of Pennsylvania..............                         1
District of Puerto Rico......................                         2
District of South Carolina...................                         1
Western District of Tennessee................                         1
Eastern District of Tennessee................                         1
Eastern District of Virginia.................                         1
District of Nevada...........................                         1
------------------------------------------------------------------------

                                Hearings

    The Committee on the Judiciary held no hearings on H.R. 
1021. In the 111th Congress, the Committee's Subcommittee on 
Commercial and Administrative Law held a hearing entitled 
``Bankruptcy Judgeship Needs'' on June 16, 2009.\26\
---------------------------------------------------------------------------
    \26\See Bankruptcy Judgeships Hearing 1 et seq. (transcript of 
proceedings).
---------------------------------------------------------------------------

                        Committee Consideration

    On March 17, 2011, the Committee met in open session and 
ordered the bill H.R. 1021 favorably reported with an amendment 
by voice vote, a quorum being present.

                            Committee Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that there 
were no recorded votes during the Committee's consideration of 
H.R. 1021.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII of the Rules 
of the House of Representatives, the Committee advises that the 
findings and recommendations of the Committee, based on 
oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

               New Budget Authority and Tax Expenditures

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives is inapplicable because this legislation does 
not provide new budgetary authority or increased tax 
expenditures.

               Congressional Budget Office Cost Estimate

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, the Committee sets forth, with 
respect to the bill, H.R. 1021, the following estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                       Washington, DC, May 5, 2011.
Hon. Lamar Smith, Chairman,
Committee on the Judiciary,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1021, the 
``Temporary Bankruptcy Judgeship Extension Act of 2011.''
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Martin von 
Gnechten, who can be reached at 226-2860.
            Sincerely,
                                      Douglas W. Elmendorf,
                                                  Director.

Enclosure

cc:
        Honorable John Conyers, Jr.
        Ranking Member
H.R. 1021--the ``Temporary Bankruptcy Judgeship Extension Act of 
        2011.''

                                SUMMARY

    H.R. 1021 would extend the authority to appoint judges to 
30 temporary bankruptcy judgeships. Under the bill, those 
temporary judgeships could remain filled for 5 years or until 
another vacancy occurs, whichever is later. Under current law, 
those judgeships cannot be filled if any vacancies occur.
    CBO estimates that enacting H.R. 1021 would increase direct 
spending by about $2 million over the 2012-2016 period and 
about $5 million over the 2012-2021 period. Pay-as-you-go 
procedures apply because the legislation would affect direct 
spending. Enacting the legislation would not affect revenues. 
Implementing the bill also would increase spending subject to 
appropriation by $4 million over the next 5 years, CBO 
estimates.
    H.R. 1021 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on State, local, or tribal 
governments.

                ESTIMATED COST TO THE FEDERAL GOVERNMENT

    The estimated budgetary impact of H.R. 1021 is shown in the 
following table. The costs of this legislation fall within 
budget function 750 (administration of justice).

                                     By Fiscal Year, in Millions of Dollars
----------------------------------------------------------------------------------------------------------------
                                                                     2012   2013   2014   2015   2016  2012-2016
----------------------------------------------------------------------------------------------------------------

CHANGES IN DIRECT SPENDING\1\

Estimated Budget Authority                                              *      *      *      *      1         2

Estimated Outlays                                                       *      *      *      *      1         2

CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level                                           *      *      1      1      2         4

Estimated Outlays                                                       *      *      1      1      2         4
----------------------------------------------------------------------------------------------------------------
Note: * = less than $500,000.
1. Over the 2012-2021 period, CBO estimates that enacting H.R. 1021 would increase direct spending by $5
  million.

                           BASIS OF ESTIMATE

    For this estimate, CBO assumes that H.R. 1021 would be 
enacted by the end of 2011. CBO cannot predict the timing of 
vacancies among temporary judgeships; however, based on 
information from the Administrative Office of the US Courts, 
historical mortality rates for bankruptcy judges, and mortality 
tables provided by the Social Security Administration, we 
expect that four vacancies out of an affected population of 
more than 100 judges are likely to occur during the 5 years 
following the enactment of the bill. Under current law, some 
vacancies in judicial districts, regardless of when the judge 
was appointed or when the judgeship was established, would 
remain vacant; enacting this bill would allow those positions 
to be filled.
    The salaries and benefits for bankruptcy judges--about 
$190,000 per judge per year--are considered mandatory spending 
because those amounts do not depend on the enactment of annual 
appropriation bills. CBO estimates that enacting H.R. 1021 
would increase direct spending by $2 million over the 2012-2016 
period and $5 million over the 2012-2021 period. If more or 
fewer than four judges in the specified districts were to die, 
retire, resign, or be removed during the 5 years following the 
enactment of the legislation, costs could be higher or lower 
than we have estimated.
    In addition, CBO estimates that implementing the 
legislation would increase spending subject to appropriation by 
$4 million over the 2012-2016 period for the salaries and 
benefits of support personnel, court operations and 
maintenance, and other administrative costs associated with the 
additional judges that would be appointed under the bill.

                      PAY-AS-YOU-GO CONSIDERATIONS

    The Statutory Pay-As-You-Go Act of 2010 establishes budget-
reporting and enforcement procedures for legislation affecting 
direct spending or revenues. The net changes in outlays that 
are subject to those pay-as-you-go procedures are shown in the 
following table.


CBO Estimate of Pay-As-You-Go Effects for H.R. 1021, as ordered 
reported by the House Committee on the Judiciary on March 17, 2011



                                                         By Fiscal Year, in Millions of Dollars
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                        2011   2012   2013   2014   2015   2016   2017   2018   2019   2020   2021  2011-2016  2011-2021
--------------------------------------------------------------------------------------------------------------------------------------------------------

NET INCREASE OR DECREASE (-) IN THE DEFICIT

Statutory Pay-As-You-Go Impact                             0      0      0      0      0      1      1      1      1      1      1         2          5
--------------------------------------------------------------------------------------------------------------------------------------------------------

              INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT

    The bill contains no intergovernmental or private-sector 
mandates as defined in UMRA and would impose no costs on State, 
local, or tribal governments.

                         ESTIMATE PREPARED BY:

Federal Costs: Martin von Gnechten
Impact on State, Local, and Tribal Governments: Melissa Merrell
Impact on the Private Sector: Marin Randall

                         ESTIMATE APPROVED BY:

Theresa Gullo
Deputy Assistant Director for Budget Analysis

                    Performance Goals and Objectives

    The Committee states that pursuant to clause 3(c)(4) of 
rule XIII of the Rules of the House of Representatives, H.R. 
1021 extends authorization to refill vacancies in the office of 
bankruptcy judge in certain judicial districts by 5 years from 
the date of its enactment.

                          Advisory on Earmarks

    In accordance with clause 9 of rule XXI of the Rules of the 
House of Representatives, H.R. 1021 does not contain any 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(e), 9(f), or 9(g) of Rule XXI.

                      Section-by-Section Analysis

    Section 1 sets forth the short title of the bill: the 
``Temporary Bankruptcy Judgeships Extension Act of 2011.''
    Section 2 extends, with respect to 30 bankruptcy 
judgeships, the date after which a vacancy in the office of 
bankruptcy judge resulting from death, removal, retirement, or 
resignation in the judicial district in which such judgeship 
exists cannot be filled by 5 years from the date of the 
enactment of the Act.

                                  
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