Bankruptcy Judgeship Act of 2017

Summary: Bankruptcy Judgeship Act of 2017 (Sec. 2) This bill reauthorizes 14 temporary bankruptcy judgeships in specified judicial districts in Delaware, Florida, Maryland, Michigan, Puerto Rico, Virginia, Nevada, and North Carolina.  (Sec. 3) It authorizes the appointment of four additional temporary bankruptcy judges in Delaware, Florida, and Michigan.  (Sec. 4) The bill amends the federal judicial code to increase the quarterly fee imposed on certain chapter 11 (reorganization) debtors. Specifically, if the balance in the U.S. Trustee System Fund is less than $200 million, then a debtor with total quarterly disbursements of $1 million or more must pay a quarterly fee equal to $250,000 or 1% of disbursements, whichever is less.  It also specifies that for FY2018-FY2022, 98% of the quarterly fees collected must be deposited as offsetting collections to the U.S. Trustee System Fund and 2% must be deposited in the general fund of the Treasury. (Sec. 5) This section amends the federal bankruptcy code to include an unsecured claim by a governmental unit (e.g., a tax claim by the Internal Revenue Service) resulting from the sale, transfer, exchange, or disposition of farming property in chapter 12 bankruptcy (family farmer or fisherman reorganization) proceedings. Such a claim that arises before a debtor's discharge, regardless of whether the claim is pre-petition or post-petition, must be treated as a pre-petition claim, is not entitled to priority status, must be provided for under the bankruptcy plan, and is dischargeable.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Bankruptcy Judgeship Act of 2017''.

SEC. 2. EXTENSION OF TEMPORARY OFFICE OF BANKRUPTCY JUDGES IN CERTAIN 
              JUDICIAL DISTRICTS.

    (a) Temporary Office of Bankruptcy Judges Authorized by the 
Bankruptcy Judgeship Act of 2005.--Section 2(a)(2) of the Temporary 
Bankruptcy Judgeships Extension Act of 2012 (28 U.S.C. 152 note; Public 
Law 112-121) is amended--
            (1) in subparagraph (A), by striking ``and (H)'' and 
        inserting ``(H), (I), and (J)'';
            (2) in subparagraph (C)--
                    (A) in clause (i), by striking ``6'' and inserting 
                ``11''; and
                    (B) in clause (ii), by striking ``5'' and inserting 
                ``10'';
            (3) in subparagraph (D)(i), by striking ``6'' and inserting 
        ``11'';
            (4) by striking subparagraph (E) and inserting the 
        following:
                    ``(E) District of maryland.--The 1st, 2d, and 3d 
                vacancies in the office of a bankruptcy judge for the 
                district of Maryland--
                            ``(i) in the case of the 1st and 2d 
                        vacancies, occurring more than 5 years after 
                        the date of the enactment of this Act,
                            ``(ii) in the case of the 3d vacancy, 
                        occurring more than 10 years after the date of 
                        enactment of this Act, and
                            ``(iii) resulting from the death, 
                        retirement, resignation, or removal of a 
                        bankruptcy judge,
                shall not be filled..'';
            (5) in subparagraph (F)(i), by striking ``6'' and inserting 
        ``11'';
            (6) in subparagraph (G)(i), by striking ``6'' and inserting 
        ``11'';
            (7) in subparagraph (H)(i), by striking ``6'' and inserting 
        ``11''; and
            (8) by adding at the end the following:
                    ``(I) District of nevada.--The 1st vacancy in the 
                office of a bankruptcy judge for the district of 
                Nevada--
                            ``(i) occurring more than 10 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.
                    ``(J) Eastern district of north carolina.--The 1st 
                vacancy in the office of a bankruptcy judge for the 
                eastern district of North Carolina--
                            ``(i) occurring more than 10 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) Temporary Office of Bankruptcy Judges Authorized by the 
Bankruptcy Judgeship Act of 1992.--Section 2(b)(2) of the Temporary 
Bankruptcy Judgeships Extension Act of 2012 (28 U.S.C. 152 note; Public 
Law 112-121) is amended--
            (1) in subparagraph (A)(i), by striking ``5'' and inserting 
        ``10''; and
            (2) in subparagraph (B)(i), by striking ``5'' and inserting 
        ``10''.

SEC. 3. TEMPORARY OFFICE OF BANKRUPTCY JUDGE AUTHORIZED.

    (a) Appointments.--The following bankruptcy judges shall be 
appointed in the manner prescribed in section 152(a)(1) of title 28, 
United States Code, for the appointment of bankruptcy judges provided 
for in section 152(a)(2) of that title:
            (1) Two additional bankruptcy judges for the district of 
        Delaware.
            (2) One additional bankruptcy judge of the middle district 
        of Florida.
            (3) One additional bankruptcy judge for the eastern 
        district of Michigan.
    (b) Vacancies.--
            (1) District of delaware.--The 6th and 7th vacancies in the 
        office of a bankruptcy judge for the district of Delaware--
                    (A) occurring more than 10 years after the date of 
                enactment of the Temporary Bankruptcy Judgeships 
                Extension Act of 2012 (28 U.S.C. 152 note; Public Law 
                112-121); and
                    (B) resulting from the death, retirement, 
                resignation, or removal of a bankruptcy judge,
        shall not be filled.
            (2) Middle district of florida.--The 1st vacancy in the 
        office of a bankruptcy judge for the middle district of 
        Florida--
                    (A) occurring more than 5 years after the date of 
                enactment of this Act; and
                    (B) resulting from the death, retirement, 
                resignation, or removal of a bankruptcy judge,
        shall not be filled.
            (3) Eastern district of michigan.--The 2d vacancy in the 
        office of a bankruptcy judge for the eastern district of 
        Michigan--
                    (A) occurring more than 11 years after the date of 
                enactment of the Temporary Bankruptcy Judgeships 
                Extension Act of 2012 (28 U.S.C. 152 note; Public Law 
                112-121); and
                    (B) resulting from the death, retirement, 
                resignation, or removal of a bankruptcy judge,
        shall not be filled.

SEC. 4. BANKRUPTCY FEES.

    (a) Amendments to Title 28 of the United States Code.--Section 
1930(a)(6) of title 28, United States Code, is amended--
            (1) by striking ``(6) In'' and inserting ``(6)(A) Except as 
        provided in subparagraph (B), in''; and
            (2) by adding at the end the following:
            ``(B) During each of fiscal years 2018 through 2022, if the 
        balance in the United States Trustee System Fund as of 
        September 30 of the most recent full fiscal year is less than 
        $200,000,000, the quarterly fee payable for a quarter in which 
        disbursements equal or exceed $1,000,000 shall be the lesser of 
        1 percent of such disbursements or $250,000.''.
    (b) Deposits of Certain Fees for Fiscal Years 2018 Through 2022.--
Notwithstanding section 589a(b) of title 28, United States Code, for 
each of fiscal years 2018 through 2022--
            (1) 98 percent of the fees collected under section 
        1930(a)(6) of such title shall be deposited as offsetting 
        collections to the appropriation ``United States Trustee System 
        Fund'', to remain available until expended; and
            (2) 2 percent of the fees collected under section 
        1930(a)(6) of such title shall be deposited in the general fund 
        of the Treasury.
    (c) Application of Amendments.--The amendments made by this section 
shall apply to quarterly fees payable under section 1930(a)(6) of title 
28, United States Code, as amended by this section, for disbursements 
made in any calendar quarter that begins on or after the date of 
enactment of this Act.

SEC. 5. CLARIFICATION OF RULE ALLOWING DISCHARGE TO GOVERNMENTAL CLAIMS 
              ARISING FROM THE DISPOSITION OF FARM ASSETS UNDER CHAPTER 
              12 BANKRUPTCIES.

    (a) In General.--Subchapter II of chapter 12 of title 11, United 
States Code, is amended by adding at the end the following:
``Sec. 1232. Claim by a governmental unit based on the disposition of 
              property used in a farming operation
    ``(a) Any unsecured claim of a governmental unit against the debtor 
or the estate that arises before the filing of the petition, or that 
arises after the filing of the petition and before the debtor's 
discharge under section 1228, as a result of the sale, transfer, 
exchange, or other disposition of any property used in the debtor's 
farming operation--
            ``(1) shall be treated as an unsecured claim arising before 
        the date on which the petition is filed;
            ``(2) shall not be entitled to priority under section 507;
            ``(3) shall be provided for under a plan; and
            ``(4) shall be discharged in accordance with section 1228.
    ``(b) For purposes of applying sections 1225(a)(4), 1228(b)(2), and 
1229(b)(1) to a claim described in subsection (a) of this section, the 
amount that would be paid on such claim if the estate of the debtor 
were liquidated in a case under chapter 7 of this title shall be the 
amount that would be paid by the estate in a chapter 7 case if the 
claim were an unsecured claim arising before the date on which the 
petition was filed and were not entitled to priority under section 507.
    ``(c) For purposes of applying sections 523(a), 1228(a)(2), and 
1228(c)(2) to a claim described in subsection (a) of this section, the 
claim shall not be treated as a claim of a kind specified in 
subparagraph (A) or (B) of section 523(a)(1).
    ``(d)(1) A governmental unit may file a proof of claim for a claim 
described in subsection (a) that arises after the date on which the 
petition is filed.
    ``(2) If a debtor files a tax return after the filing of the 
petition for a period in which a claim described in subsection (a) 
arises, and the claim relates to the tax return, the debtor shall serve 
notice of the claim on the governmental unit charged with the 
responsibility for the collection of the tax at the address and in the 
manner designated in section 505(b)(1). Notice under this paragraph 
shall state that the debtor has filed a petition under this chapter, 
state the name and location of the court in which the case under this 
chapter is pending, state the amount of the claim, and include a copy 
of the filed tax return and documentation supporting the calculation of 
the claim.
    ``(3) If notice of a claim has been served on the governmental unit 
in accordance with paragraph (2), the governmental unit may file a 
proof of claim not later than 180 days after the date on which such 
notice was served. If the governmental unit has not filed a timely 
proof of the claim, the debtor or trustee may file proof of the claim 
that is consistent with the notice served under paragraph (2). If a 
proof of claim is filed by the debtor or trustee under this paragraph, 
the governmental unit may not amend the proof of claim.
    ``(4) A claim filed under this subsection shall be determined and 
shall be allowed under subsection (a), (b), or (c) of section 502, or 
disallowed under subsection (d) or (e) of section 502, in the same 
manner as if the claim had arisen immediately before the date of the 
filing of the petition.''.
    (b) Technical and Conforming Amendments.--
            (1) In general.--Subchapter II of chapter 12 of title 11, 
        United States Code, is amended--
                    (A) in section 1222(a)--
                            (i) in paragraph (2), by striking 
                        ``unless--'' and all that follows through ``the 
                        holder'' and inserting ``unless the holder'';
                            (ii) in paragraph (3), by striking ``and'' 
                        at the end;
                            (iii) in paragraph (4), by striking the 
                        period at the end and inserting ``; and''; and
                            (iv) by adding at the end the following:
            ``(5) subject to section 1232, provide for the treatment of 
        any claim by a governmental unit of a kind described in section 
        1232(a).'';
                    (B) in section 1228--
                            (i) in subsection (a)--
                                    (I) in the matter preceding 
                                paragraph (1)--
                                            (aa) by inserting a comma 
                                        after ``all debts provided for 
                                        by the plan''; and
                                            (bb) by inserting a comma 
                                        after ``allowed under section 
                                        503 of this title''; and
                                    (II) in paragraph (2), by striking 
                                ``the kind'' and all that follows and 
                                inserting ``a kind specified in section 
                                523(a) of this title, except as 
                                provided in section 1232(c).''; and
                            (ii) in subsection (c)(2), by inserting ``, 
                        except as provided in section 1232(c)'' before 
                        the period at the end; and
                    (C) in section 1229(a)--
                            (i) in paragraph (2), by striking ``or'' at 
                        the end;
                            (ii) in paragraph (3), by striking the 
                        period at the end and inserting ``; or''; and
                            (iii) by adding at the end the following:
            ``(4) provide for the payment of a claim described in 
        section 1232(a) that arose after the date on which the petition 
        was filed.''.
            (2) Table of sections.--The table of sections for 
        subchapter II of chapter 12 of title 11, United States Code, is 
        amended by adding at the end the following:

``1232. Claim by a governmental unit based on the disposition of 
                            property used in a farming operation.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to--
            (1) any bankruptcy case--
                    (A) that is pending on the date of enactment of 
                this Act;
                    (B) in which the plan under chapter 12 of title 11, 
                United States Code, has not been confirmed on the date 
                of enactment of this Act; and
                    (C) relating to which an order of discharge under 
                section 1228 of title 11, United States Code, has not 
                been entered; and
            (2) any bankruptcy case that commences on or after the date 
        of enactment of this Act.

            Passed the Senate September 5, 2017.

            Attest:

                                                             Secretary.
115th CONGRESS

  1st Session

                                S. 1107

_______________________________________________________________________

                                 AN ACT

To amend title 28, United States Code, to authorize the appointment of 
         additional bankruptcy judges, and for other purposes.