    [United States Statutes at Large, Volume 134, 116th Congress, 2nd Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    Public Law 116-325
    116th Congress

    An Act

    To ensure funding of the United States trustees, extend temporary
    bankruptcy judgeships, and for other purposes. <>

    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.

    [[Page 5087]]

    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.

    [[Page 5088]]

    ``(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

    [[Page 5089]]

    (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
    (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

    [[Page 5090]]

    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,

    [[Page 5091]]

    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

    [[Page 5092]]

    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.

    [[Page 5093]]

    (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 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).

    [[Page 5094]]

    SEC. 5. REGULATIONS.

    Section 375(h) of title 28, United States Code, is amended by
    striking ``may'' and inserting ``shall''.

    Approved January 12, 2021.

    LEGISLATIVE HISTORY--S. 4996:
    ---------------------------------------------------------------------------

    CONGRESSIONAL RECORD, Vol. 166 (2020):
    Dec. 9, considered and passed Senate.
    Dec. 21, considered and passed House.