69–006 

115TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 115–130 

BANKRUPTCY JUDGESHIP ACT OF 2017 

MAY 17, 2017.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. GOODLATTE, from the Committee on the Judiciary, 

submitted the following 

R E P O R T 

[To accompany H.R. 2266] 

The Committee on the Judiciary, to whom was referred the bill 

(H.R. 2266) to amend title 28 of the United States Code to authorize the appointment of additional bankruptcy judges; and for other 

purposes, having considered the same, reports favorably thereon 

with an amendment and recommends that the bill as amended do 

pass. 

CONTENTS 

Page 

The Amendment ...................................................................................................... 1 

Purpose and Summary ............................................................................................ 3 

Background and Need for the Legislation ............................................................. 4 

Hearings ................................................................................................................... 8 

Committee Consideration ........................................................................................ 8 

Committee Votes ...................................................................................................... 8 

Committee Oversight Findings ............................................................................... 8 

New Budget Authority and Tax Expenditures ...................................................... 8 

Committee Cost Estimate ....................................................................................... 9 

Duplication of Federal Programs ............................................................................ 9 

Disclosure of Directed Rule Makings ..................................................................... 9 

Performance Goals and Objectives ......................................................................... 9 

Advisory on Earmarks ............................................................................................. 9 

Section-by-Section Analysis .................................................................................... 9 

Changes in Existing Law Made by the Bill, as Reported ..................................... 10 

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 ‘‘Bankruptcy Judgeship Act of 2017’’. 

2 

SEC. 2. CONVERSION OF THE TEMPORARY OFFICE OF BANKRUPTCY JUDGE TO THE PERMANENT OFFICE OF BANKRUPTCY JUDGE IN CERTAIN JUDICIAL DISTRICTS. 

(a) DISTRICT OF DELAWARE.— (1) The temporary office of 4 bankruptcy judges authorized for the district of 

Delaware by section 1223(b)(1)(C) of Public Law 109–8 (119 Stat. 197; 28 U.S.C. 

152 note), and extended by section 2(a)(1)(C) of Public Law 112–121 (126 Stat. 

346; 28 U.S.C. 152 note), is converted hereby to the permanent office of bankruptcy judge and represented in the amendment made by section 3(1) of this 

Act, and may be filled. 

(2) The temporary office of bankruptcy judge authorized for the district of 

Delaware by section 3(a)(3) of Public Law 102–361 (106 Stat. 966; 28 U.S.C. 152 

note), and extended by section 1223(c)(1) of Public Law 109–8 (119 Stat. 198; 

28 U.S.C. 152 note) and section 2(b)(1) of Public Law 112–121 (126 Stat. 347; 

28 U.S.C. 152 note), is converted hereby to the permanent office of bankruptcy 

judge and represented in the amendment made by section 3(1) of this Act, and 

may be filled. 

(b) SOUTHERN DISTRICT OF FLORIDA.—The temporary office of 2 bankruptcy judges 

authorized for the southern district of Florida by section 1223(b)(1)(D) of Public Law 

109–8 (119 Stat. 197; 28 U.S.C. 152 note), and extended by section 2(a)(1)(D) of Public Law 112–121 (126 Stat. 346; 28 U.S.C. 152 note), is converted hereby to the permanent office of bankruptcy judge and represented in the amendment made by section 3(3) of this Act, and may be filled. 

(c) DISTRICT OF MARYLAND.—The temporary office of 1 bankruptcy judge first appointed as authorized for the district of Maryland by section 1223(b)(1)(F) of Public 

Law 109–8 (119 Stat. 197; 28 U.S.C. 152 note), and extended by section 2(a)(1)(F) 

of Public Law 112–121 (126 Stat. 346; 28 U.S.C. 152 note), is converted hereby to 

the permanent office of bankruptcy judge and represented in the amendment made 

by section 3(4) of this Act, and may be filled. 

(d) EASTERN DISTRICT OF MICHIGAN.—The temporary office of bankruptcy judge 

authorized for the eastern district of Michigan by section 1223(b)(1)(G) of Public 

Law 109–8 (119 Stat. 197; 28 U.S.C. 152 note), and extended by section 2(a)(1)(G) 

of Public Law 112–121 (126 Stat. 346; 28 U.S.C. 152 note), is converted hereby to 

the permanent office of bankruptcy judge and represented in the amendment made 

by section 3(5) of this Act, and may be filled. 

(e) DISTRICT OF NEVADA.—The temporary office of bankruptcy judge authorized 

for the district of Nevada by section 1223(b)(1)(T) of Public Law 109–8 (119 Stat. 

197; 28 U.S.C. 152 note), and extended by section 2(a)(1)(Q) of Public Law 112–121 

(126 Stat. 346; 28 U.S.C. 152 note), is converted hereby to the permanent office of 

bankruptcy judge and represented in the amendment made by section 3(6) of this 

Act, and may be filled. 

(f) EASTERN DISTRICT OF NORTH CAROLINA.—The temporary office of bankruptcy 

judge authorized for the eastern district of North Carolina by section 1223(b)(1)(M) 

of Public Law 109–8 (119 Stat. 197; 28 U.S.C. 152 note), and extended by section 

2(a)(1)(J) of Public Law 112–121 (126 Stat. 346; 28 U.S.C. 152 note), is converted 

hereby to the permanent office of bankruptcy judge and represented in the amendment made by section 3(7) of this Act, and may be filled. 

(g) DISTRICT OF PUERTO RICO.— (1) The temporary office of bankruptcy judge authorized for the district of 

Puerto Rico by section 1223(b)(1)(P) of Public Law 109–8 (119 Stat. 197; 28 

U.S.C. 152 note), and extended by section 2(a)(1)(M) of Public Law 112–121 (126 

Stat. 346; 28 U.S.C. 152 note), is converted hereby to the permanent office of 

bankruptcy judge and represented in the amendment made by section 3(8) of 

this Act, and may be filled. 

(2) The temporary office of bankruptcy judge authorized for the district of 

Puerto Rico by section 3(a)(7) of Public Law 102–361 (106 Stat. 966; 28 U.S.C. 

152 note), and extended by section 1223(c)(1) of Public Law 109–8 (119 Stat. 

198; 28 U.S.C. 152 note) and section 2(b)(1) of Public Law 112–121 (126 Stat. 

347; 28 U.S.C. 152 note), is converted hereby to the permanent office of bankruptcy judge and is represented in the amendment made by section 3(8) of this 

Act, and may be filled. 

(h) EASTERN DISTRICT OF VIRGINIA.—The temporary office of bankruptcy judge authorized for the eastern district of Virginia by section 1223(b)(1)(R) of Public Law 

109–8 (119 Stat. 197; 28 U.S.C. 152 note), and extended by section 2(a)(1)(P) of Public Law 112–121 (126 Stat. 346; 28 U.S.C. 152 note), is converted hereby to the permanent office of bankruptcy judge and is represented in the amendment made by 

section 3(9) of this Act, and may be filled. 

SEC. 3. PERMANENT OFFICE OF BANKRUPTCY JUDGE AUTHORIZED. 

To reflect the conversion of the temporary office of bankruptcy judge to the permanent office of bankruptcy judge made by the operation of section 2, and to authorize 

3 

the appointment of additional bankruptcy judges, section 152(a)(2) of title 28 of the 

United States Code is amended— 

(1) in the item relating to the district of Delaware by striking ‘‘1’’ and inserting ‘‘8’’, 

(2) in the item relating to the middle district of Florida by striking ‘‘8’’ and 

inserting ‘‘9’’, 

(3) in the item relating to the southern district of Florida by striking ‘‘5’’ and 

inserting ‘‘7’’, 

(4) in the item relating to the district of Maryland by striking ‘‘4’’ and inserting ‘‘5’’, 

(5) in the item relating to the eastern district of Michigan by striking ‘‘4’’ and 

inserting ‘‘6’’, 

(6) in the item relating to the district of Nevada by striking ‘‘3’’ and inserting 

‘‘4’’, 

(7) in the item relating to the eastern district of North Carolina by striking 

‘‘2’’ and inserting ‘‘3’’, 

(8) in the item relating to the district of Puerto Rico by striking ‘‘2’’ and inserting ‘‘4’’, and 

(9) in the item relating to the eastern district of Virginia by striking ‘‘5’’ and 

inserting ‘‘6’’. 

SEC. 4. BANKRUPTCY FEES. 

(a) AMENDMENTS TO TITLE 28 OF THE UNITED STATES CODE.—Section 1930(a)(6) 

of title 28 of the 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) In any fiscal year, the quarterly fee payable for a quarter in which disbursements equal or exceed $1,000,000 shall be 1 percent of such disbursements 

or $250,000, whichever is less, unless the balance in the United States Trustee 

System Fund as of September 30 immediately preceding such fiscal year exceeds $200,000,000.’’. 

(b) DEPOSITS OF CERTAIN FEES FOR FISCAL YEARS 2018 THROUGH 2022.—Notwithstanding section 589a(b) of title 28 of the United States Code, for each of the fiscal 

years 2018 through 2022— 

(1) 97.5 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) 2.5 percent of the fees collected under section 1930(a)(6) of such title shall 

be deposited in the general fund of the Treasury. 

(c) EFFECTIVE DATE; APPLICATION AMENDMENTS.— 

(1) EFFECTIVE DATE.—Except as provided in paragraph (2), this section shall 

take effect on July 1, 2017, or on the date of the enactment of this Act, whichever is later. 

(2) APPLICATION OF AMENDMENTS.—The amendments made by this section 

shall apply to quarterly fees payable under section 1930(a)(6) of title 28 of the 

United States Code, as amended by this section, for disbursements made in any 

calendar quarter that begins on or after the effective date of the amendments 

made by this section. 

Purpose and Summary 

H.R. 2266, the ‘‘Bankruptcy Judgeship Act of 2017,’’ as amended, 

converts 14 temporary bankruptcy judgeships to permanent status 

and authorizes four new bankruptcy judgeships for certain federal 

judicial districts listed in the bill. 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 and further extended by Pub. L. No. 

112–121. All 14 of the temporary judgeships converted under this 

bill are scheduled to lapse on May 25, 2017. Additionally, the 

Bankruptcy Judgeship Act provides for an increase in the U.S. 

Trustee’s Quarterly Fees for large chapter 11 cases. 

4 

1 U.S. CONST., art. I, § 8, cl. 4. 

2 28 U.S.C. § 151. 

3 U.S. CONST., art. III, § 1. 

4Pub. L. No. 98–353, 98 Stat. 333 (1984). 

5 28 U.S.C. § 151. 

6 U.S. CONST., art. II, § 2, cl. 2. 

7 28 U.S.C. § 152(a)(1). 

8 28 U.S.C. § 152. 

9Pub. L. No. 102–361, 106 Stat. 965 (1992). 

10See Pub. L. No. 109–8, 119 Stat. 23 (2005). 11See generally Judicial Conference of the United States, 2017 Bankruptcy Judgeship Recommendations (on file with Committee). 12See Pub. L. No. 112-121, 126 Stat. 349 (2012). 

Background and Need for the Legislation 

A. BRIEF OVERVIEW OF TEMPORARY BANKRUPTCY JUDGESHIPS

The United States bankruptcy court is a court of limited jurisdiction established pursuant to Article I of the Constitution.1 The 

bankruptcy court is constituted to be a ‘‘unit’’ of the United States 

district court,2 which is established under Article III of the Constitution.3 Pursuant to the Bankruptcy Amendments and Federal 

Judgeship Act of 1984,4 bankruptcy judges are judicial officers of 

the United States district court.5 In contrast to Article III judges 

(who are nominated by the President and confirmed by the Senate 

to life-tenured appointment),6 bankruptcy judges are appointed for 

14-year terms by the United States court of appeals for the applicable circuit, with eligibility for reappointment.7

Congress authorizes the number of bankruptcy judgeships.8 In 

1992, Congress authorized the first 10 temporary bankruptcy 

judgeships.9 In 2005, 28 additional temporary bankruptcy judgeships were created and four of the 1992 temporary bankruptcy 

judgeships were extended, under the Bankruptcy Abuse Prevention 

and Consumer Protection Act (BAPCPA).10 Congress provided that, 

at the expiration of the five years, the additional judgeships would 

be lost following the first vacancies thereafter, bringing the districts back to their prior judgeship levels. After the lapse of these 

positions, new legislation would be necessary to create any new 

judgeship positions. As discussed in more detail below, filings have 

stayed fairly consistent and these temporary judgeships have required further extensions over the past several years.11 Despite 

these extensions, certain of the temporary bankruptcy judgeships 

have expired prior to Congressional action, including one temporary judgeship in the Southern District of New York. 

There are presently 29 temporary bankruptcy judgeships scheduled to lapse on May 25, 2017.12 These temporary judgeships comprise more than eight percent of the current bankruptcy judgeships 

nationwide. A judge sitting in a temporary position can sit in that 

district to fulfill his or her term after May 25, 2017, and can seek 

reappointment. However, if any sitting judge in that district retires, dies, resigns, or becomes disabled after May 25, 2017, the 

temporary position lapses, permanently reducing the number of 

judgeships in that district. 

B. JUDICIAL CONFERENCE RECOMMENDATIONS

Congressional authorization of bankruptcy judgeships is typically 

premised on recommendations required to be made, from time to 

5 

13 28 U.S.C. § 152(b) (2). In addition, the Judicial Conference must biennially conduct a ‘‘comprehensive review’’ of all judicial districts for the purpose of assessing the ‘‘continuing need’’ for 

authorized bankruptcy judges as well as for the elimination of any authorized position when a 

vacancy occurs as a result of a judge’s resignation, retirement, removal, or death. 28 U.S.C. 

§ 152(b) (3). For example, a bankruptcy judge may be removed for incompetence, misconduct, 

neglect of duty or physical or mental disability. 28 U.S.C. § 152(e). 14See generally 28 U.S.C. § 331. 15Letter from James C. Duff, Secretary, Judicial Conference of the United States, to Chairman Bob Goodlatte, H. Comm. on the Judiciary (Apr. 3, 2017) (on file with Committee). 16Judicial Conference of the United States, 2017 Bankruptcy Judgeship Recommendations (on 

file with Committee). 

time, by the Judicial Conference of the United States,13 the principal policymaking body concerned with the administration of the 

federal judiciary.14 On April 3, 2017, the Judicial Conference made 

its most recent recommendation for bankruptcy judgeship needs.15

The recommendation is for the conversion of 14 temporary judgeships to permanent status and the authorization of four new bankruptcy judgeships.16 The 14 judgeship conversions include the following: five for the District of Delaware; two for the Southern District of Florida; one for the District of Maryland; one for the Eastern District of Michigan; one for the District of Nevada; one for the 

Eastern District of North Carolina; two for the District of Puerto 

Rico; and one for the Eastern District of Virginia. The four additional permanent bankruptcy judgeships include the following: two 

for the District of Delaware; one for the Eastern District of Michigan; and one for the Middle District of Florida. 

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 a biennial report. 

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. 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. 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, the Conference does not recommend to Congress that it 

be filled. 

6 

17Letter from James C. Duff, Secretary, Judicial Conference of the United States, to Chairman Bob Goodlatte, H. Comm. on the Judiciary (Apr. 3, 2017) (on file with Committee). 18 Id. 19 H.R. 4506, (111th Congress). 20See Pub. L. No. 109–8, 119 Stat. 23 (2005). 21 CBO’s reasoning is based on the fact that the fee increases were permanent but the judgeships were temporary. They focus on what the law is at the time of the request. Because the 

current law includes the permanent fee increase, it cannot be used to pay for the conversions. 22 H.R. 4506, 111th Congress. 23 H.R. 1021, 112th Congress. 24 Id. 25Pub. L. No. 112–121, 126 Stat. 349 (2012). 

Although bankruptcy filings nationwide have been declining in 

recent years, the districts included in the Conference’s recommendation generally have experienced a sustained increase in 

filings.17 Indeed, since the enactment of BAPCPA, the last time additional judgeship resources were authorized for most of the courts 

included in the Conference’s recommendation, these districts have 

seen weighted filings increase by more than 55 percent.18 These 

temporary judgeships have existed for at least 12 years and the 

need does not show signs of abating. Moreover, the Judicial Conference has demonstrated that, while a district may have a permanent judgeship, it will not be filled unless completely necessary. 

There are currently eight vacancies which the Judicial Conference 

has not sought to be filled and another 12 judgeships which may 

not be filled once a vacancy arises. 

C. LEGISLATIVE HISTORY

The Bankruptcy Judgeship Act of 2017 is very similar to a bill 

introduced during the 111th Congress by then Judiciary Chairman 

Lamar Smith (R–TX), Judiciary Ranking Member John Conyers, 

Jr. (D–MI) and Rep. Steve Cohen (D–TN), which would have authorized new permanent judgeships, converted some temporary 

judgeships to permanent status, and extended some temporary 

judgeships.19

When a majority of the temporary judgeships were first created, 

they were paid for through an increase in chapter 11 filing fees.20

However, through a unique interpretation by the Congressional 

Budget Office, the funding from the fee increases was not able to 

be used to offset the conversion or further extension of the temporary judgeships once they hit their initial expiration date.21 As 

such, when the temporary judgeships were set to expire in 2011, 

a similar funding issue arose. To offset the cost, H.R. 4506 increased filing fees in chapter 7 and 13 bankruptcy cases by one dollar and in chapter 11 cases by $42.22 The bill passed the House by 

a vote of 345–5. The Senate did not vote on the bill. 

During the 112th Congress, Reps. Smith, Conyers and Cohen introduced a scaled back bill which did not create any new judgeships or convert any temporary judgeships, but extended the existing temporary judgeships for an additional five years.23 The extension was paid for once again by increasing the filing fees in chapter 

11 cases by $167.24 The bill passed the House under suspension of 

the rules by voice vote, passed the Senate by unanimous consent, 

and was signed into law.25

In addition, the Judicial Conference previously requested consideration of a one-year extension of seven judgeships in the Fiscal 

Year 2017 appropriations bill. The Judicial Conference identified 

7 

26 28 U.S.C. 589a. Approximately 38 percent of the Program’s revenue is derived from filing 

fees paid in chapters 7, 11, 12, and 13 cases while about 61 percent comes from quarterly fees 

in chapter 11 cases. 27See America First, A Budget Blueprint to Make America Great Again, Office of Management and Budget, at 30, available at https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/ 

budget/fy2018/2018lblueprint.pdf 28See H.R. 136, 115th Cong.; S. 632, 115th Cong. 

districts that combine high caseloads with even higher likelihood of 

judicial vacancies soon after the lapse date. This group included 

two positions in the District of Delaware, two in the Southern District of Florida, one in the Eastern District of Virginia, one in the 

Eastern District of Michigan and one in the District of Puerto Rico. 

This request was made again in the Fiscal Year 2018 appropriations bill, for the same judgeships, but with a corresponding twoyear extension. 

D. INCREASE IN QUARTERLY U.S. TRUSTEE FEES

Historically, the U.S. Trustee Program has been funded by fees 

collected in bankruptcy cases.26 However, the manner in which the 

fees are routed to the U.S. Trustee Program is a bit circuitous. 

Simply, the U.S. Trustee Program gets appropriated funds every 

year. Those appropriated funds are offset by past fees collected 

through bankruptcy cases that are deposited into a fund at Treasury. Most years, the fees collected exceed the appropriated funds. 

However, in recent years, due to overall declining bankruptcy filings nationwide, the appropriations have exceeded the fees collected and the surplus created by years past has been dwindling. 

However, as mentioned previously, the districts included in the 

Conference’s recommendation generally have experienced a sustained increase in filings. In response, over the past couple of years 

the U.S. Trustee has proposed to increase one of the fees collected 

in chapter 11 bankruptcy cases that is collected quarterly and corresponds with the size of the company in bankruptcy. More recently, this type of fee increase was included in the President’s 

‘‘skinny’’ budget.27

E. THE BANKRUPTCY JUDGESHIP ACT

In the 115th Congress, Judiciary Ranking Member Conyers and 

Senator Chris Coons (D–DE) introduced companion bills that 

sought to implement the then-current recommendation of the Judicial Conference for 16 conversions and 6 new authorizations.28 Importantly, the bills did not include an offset for the judgeships. 

On May 1, 2017, Mr. Conyers, Judiciary Chairman Bob Goodlatte 

(R–VA), Tom Marino (R–PA), and David N. Cicilline (D–RI), introduced a new version of the Bankruptcy Judgeship Act that contained the following changes: (a) alignment of the bill with the Judicial Conference’s latest recommendation of 14 conversions and 

four new appointments, which the committee believe to be a sound 

recommendation; and, (b) inclusion of an increase in the quarterly 

U.S. Trustee fees for large chapter 11 cases to serve as a funding 

offset for the cost of the judgeships. The affected districts, number 

of judgeship conversions, and new appointments under H.R. 2266 

are as follows: 

8 

Judicial District Judgeships Converted 

New Judgeship 

Authorization 

District of Puerto Rico ............................................................................................................ 2 

District of Delaware ................................................................................................................ 5 2 

District of Maryland ................................................................................................................ 1 ........................

Eastern District of North Carolina .......................................................................................... 1 

Eastern District of Virginia ..................................................................................................... 1 

Eastern District of Michigan ................................................................................................... 1 1 

District of Nevada ................................................................................................................... 1 

Middle District of Florida ........................................................................................................ ........................ 1 

Southern District of Florida .................................................................................................... 2 

The Bankruptcy Judgeship Act of 2017 also provides for an increase in the U.S. Trustee fees for the largest chapter 11 debtors 

(i.e., excluding small businesses). The fee increase is directly tied 

to the balance of the United States Trustee System Fund and will 

only be applied when the balance of the fund falls below a $200 

million threshold. The funds generated by the fee increase will 

cover both the costs of this bill and separately needed funds for the 

operations of the U.S. Trustee Program. 

Hearings 

The Committee on the Judiciary held no hearings on H.R. 2266. 

Committee Consideration 

On May 3, 2017, the Committee met in open session to consider 

the bill H.R. 2266. Ranking Member Conyers offered an amendment to correct certain typographical errors, clarify that notwithstanding an intervening vacancy in an authorized judgeship, the 

position can nevertheless be filled, and ensure the U.S. Trustee fee 

increase will offset the cost of the new and converted judgeships. 

Mr. Conyers’ amendment was agreed to by voice vote and H.R. 

2266 was favorably reported, 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. 

2266. 

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. 

9 

Committee Cost Estimate 

A Congressional Budget Office cost estimate was not available at 

the time of filing of this report. In compliance with clause 3(d) of 

Rule XIII of the Rules of the House of Representatives, the Committee estimates, based on informal estimations made available to 

it by CBO, that enacting H.R. 2266 would increase direct spending 

by approximately $20 million over the next ten years. Therefore, 

pay-as-you-go procedures apply. The Committee also expects, based 

on informal estimates by CBO, that enacting H.R. 2266 would increase revenues from quarterly U.S. Trustee filing fees by an 

amount sufficient to fully offset the increases in direct spending 

caused by the bill. 

Duplication of Federal Programs 

No provision of H.R. 2266 establishes or reauthorizes a program 

of the Federal government known to be duplicative of another Federal program, a program that was included in any report from GAO 

to Congress pursuant to section 21 of Public Law 111–139, or a 

program related to a program identified in the most recent Catalog 

of Federal Domestic Assistance. 

Disclosure of Directed Rule Makings 

The Committee estimates that H.R. 2266 specifically directs to be 

completed no specific rule makings within the meaning of 5 U.S.C. 

551. 

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. 2266 converts 

14 temporary bankruptcy judgeships to permanent status, authorizes four new bankruptcy judgeships, and increases the U.S. Trustee’s Quarterly Fees for large chapter 11 cases. 

Advisory on Earmarks 

In accordance with clause 9 of rule XXI of the Rules of the House 

of Representatives, H.R. 2266 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 

The following discussion describes the bill as reported by the 

Committee. 

Section 1. Short Title. 

Section 1 sets forth the short title of the bill as the ‘‘Bankruptcy 

Judgeship Act of 2017.’’ 

Section 2. Conversion of the Temporary Office of Bankruptcy Judge 

to the Permanent Office of Bankruptcy Judge in Certain Judicial Districts. 

Section 2(a) converts to permanent status the five temporary 

judgeships in the District of Delaware. Section 2(b) converts to perVerDate Sep 11 2014 03:26 May 18, 2017 Jkt 069006 PO 00000 Frm 00009 Fmt 6659 Sfmt 6602 E:\HR\OC\HR130.XXX HR130
10 

manent status the two temporary judgeships in the Southern District of Florida. Section 2(c) converts to permanent status the temporary bankruptcy judgeship for the District of Maryland. Section 

2(d) converts to permanent status the temporary bankruptcy judgeship for the Eastern District of Michigan. Section 2(e) converts to 

permanent status the temporary bankruptcy judgeship for the District of Nevada. Section 2(f) converts to permanent status the temporary bankruptcy judgeship for the Eastern District of North 

Carolina. Section 2(g) converts to permanent status the two temporary bankruptcy judgeships for the District of Puerto Rico. Section 2(h) converts to permanent status the bankruptcy judgeship 

for the Eastern District of Virginia. 

Section 3. Permanent Office of Bankruptcy Judge Authorized. 

Section 3 amends section 152(a)(2) of title 28 of the United 

States Code to reflect the changes in temporary to permanent status as effectuated by section 2 of the bill. Also, section 3 authorizes 

two additional permanent bankruptcy judgeships for the District of 

Delaware, one additional permanent bankruptcy judgeship for the 

Eastern District of Michigan, and one additional permanent bankruptcy judgeship for the Middle District of Florida. 

Section 4. Bankruptcy Fees. 

Section 4(a) amends section 1930(a)(6) of title 28 of the United 

States Code to provide that the chapter 11 fee payable for a quarter in which a debtor’s disbursements equal or exceed $1 million 

must be either one percent of such disbursements or $250,000, 

whichever is less, in a fiscal year unless the balance in the United 

States Trustee System Fund as of September 30 preceding such fiscal year exceeds $200 million. 

Section 4(b) provides that, notwithstanding section 589a(b) of 

title 28 of the United States Code, for each of the fiscal years 2018 

through 2012, 97.5 percent of the quarterly U.S. Trustee fees shall 

be deposited as offsetting collections to the United States Trustee 

System Fund and 2.5 percent of the quarterly U.S. Trustee fees 

shall be deposited in the general fund of the Treasury. 

Section 4(c)(1) provides that section 4 takes effect on July 1, 

2017, or the date of enactment, whichever is later, subject to subsection 4(c)(2). Section 4(c)(2) provides that section 4 applies to 

quarterly fees payable for any quarter that begins on or after the 

effective date of this legislation. 

Changes in Existing Law Made by the Bill, as Reported 

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italics, 

and existing law in which no change is proposed is shown in 

roman): 

TITLE 28, UNITED STATES CODE 

* * * * * * * 

11 

PART I—ORGANIZATION OF COURTS 

* * * * * * * 

CHAPTER 6—BANKRUPTCY JUDGES 

* * * * * * * 

§ 152. Appointment of bankruptcy judges 

(a)(1) Each bankruptcy judge to be appointed for a judicial district, as provided in paragraph (2), shall be appointed by the court 

of appeals of the United States for the circuit in which such district 

is located. Such appointments shall be made after considering the 

recommendations of the Judicial Conference submitted pursuant to 

subsection (b). Each bankruptcy judge shall be appointed for a term 

of fourteen years, subject to the provisions of subsection (e). However, upon the expiration of the term, a bankruptcy judge may, 

with the approval of the judicial council of the circuit, continue to 

perform the duties of the office until the earlier of the date which 

is 180 days after the expiration of the term or the date of the appointment of a successor. Bankruptcy judges shall serve as judicial 

officers of the United States district court established under Article 

III of the Constitution. 

(2) The bankruptcy judges appointed pursuant to this section 

shall be appointed for the several judicial districts as follows: 

Districts Judges 

Alabama: 

Northern 5 

Middle 2 

Southern 2 

Alaska 2 

Arizona 7 

Arkansas: 

Eastern and Western 3 

California: 

Northern 9 

Eastern 6 

Central 21 

Southern 4 

Colorado 5 

Connecticut 3 

Delaware ø1¿ 8 

District of Columbia 1 

Florida: 

Northern 1 

Middle ø8¿ 9 

Southern ø5¿ 7 

12 

Districts Judges 

Georgia: 

Northern 8 

Middle 3 

Southern 2 

Hawaii 1 

Idaho 2 

Illinois: 

Northern 10 

Central 3 

Southern 1 

Indiana: 

Northern 3 

Southern 4 

Iowa: 

Northern 2 

Southern 2 

Kansas 4 

Kentucky: 

Eastern 2 

Western 3 

Louisiana: 

Eastern 2 

Middle 1 

Western 3 

Maine 2 

Maryland ø4¿ 5 

Massachusetts 5 

Michigan: 

Eastern ø4¿ 6 

Western 3 

Minnesota 4 

Mississippi: 

Northern 1 

Southern 2 

Missouri: 

Eastern 3 

Western 3 

Montana 1 

Nebraska 2 

Nevada ø3¿ 4 

New Hampshire 1 

New Jersey 8 

13 

Districts Judges 

New Mexico 2 

New York: 

Northern 2 

Southern 9 

Eastern 6 

Western 3 

North Carolina: 

Eastern ø2¿ 3 

Middle 2 

Western 2 

North Dakota 1 

Ohio: 

Northern 8 

Southern 7 

Oklahoma: 

Northern 2 

Eastern 1 

Western 3 

Oregon 5 

Pennsylvania: 

Eastern 5 

Middle 2 

Western 4 

Puerto Rico ø2¿ 4 

Rhode Island 1 

South Carolina 2 

South Dakota 2 

Tennessee: 

Eastern 3 

Middle 3 

Western 4 

Texas: 

Northern 6 

Eastern 2 

Southern 6 

Western 4 

Utah 3 

Vermont 1 

Virginia: 

Eastern ø5¿ 6 

Western 3 

Washington: 

14 

Districts Judges 

Eastern 2 

Western 5 

West Virginia: 

Northern 1 

Southern 1 

Wisconsin: 

Eastern 4 

Western 2 

Wyoming 1 

(3) Whenever a majority of the judges of any court of appeals 

cannot agree upon the appointment of a bankruptcy judge, the 

chief judge of such court shall make such appointment. 

(4) The judges of the district courts for the territories shall 

serve as the bankruptcy judges for such courts. The United 

States court of appeals for the circuit within which such a territorial district court is located may appoint bankruptcy judges 

under this chapter for such district if authorized to do so by 

the Congress of the United States under this section. 

(b)(1) The Judicial Conference of the United States shall, from 

time to time, and after considering the recommendations submitted 

by the Director of the Administrative Office of the United States 

Courts after such Director has consulted with the judicial council 

of the circuit involved, determine the official duty stations of bankruptcy judges and places of holding court. 

(2) The Judicial Conference shall, from time to time, submit 

recommendations to the Congress regarding the number of 

bankruptcy judges needed and the districts in which such 

judges are needed. 

(3) Not later than December 31, 1994, and not later than the 

end of each 2-year period thereafter, the Judicial Conference of 

the United States shall conduct a comprehensive review of all 

judicial districts to assess the continuing need for the bankruptcy judges authorized by this section, and shall report to 

the Congress its findings and any recommendations for the 

elimination of any authorized position which can be eliminated 

when a vacancy exists by reason of resignation, retirement, removal, or death. 

(c)(1) Each bankruptcy judge may hold court at such places within the judicial district, in addition to the official duty station of 

such judge, as the business of the court may require. 

(2)(A) Bankruptcy judges may hold court at such places within the United States outside the judicial district as the nature 

of the business of the court may require, and upon such notice 

as the court orders, upon a finding by either the chief judge of 

the bankruptcy court (or, if the chief judge is unavailable, the 

most senior available bankruptcy judge) or by the judicial 

council of the circuit that, because of emergency conditions, no 

15 

location within the district is reasonably available where the 

bankruptcy judges could hold court. 

(B) Bankruptcy judges may transact any business at 

special sessions of court held outside the district pursuant 

to this paragraph that might be transacted at a regular 

session. 

(C) If a bankruptcy court issues an order exercising its 

authority under subparagraph (A), the court— 

(i) through the Administrative Office of the United 

States Courts, shall— 

(I) send notice of such order, including the reasons for the issuance of such order, to the Committee on the Judiciary of the Senate and the 

Committee on the Judiciary of the House of Representatives; and 

(II) not later than 180 days after the expiration 

of such court order submit a brief report to the 

Committee on the Judiciary of the Senate and the 

Committee on the Judiciary of the House of Representatives describing the impact of such order, 

including— 

(aa) the reasons for the issuance of such 

order; 

(bb) the duration of such order; 

(cc) the impact of such order on litigants; 

and 

(dd) the costs to the judiciary resulting from 

such order; and 

(ii) shall provide reasonable notice to the United 

States Marshals Service before the commencement of 

any special session held pursuant to such order. 

(d) With the approval of the Judicial Conference and of each of 

the judicial councils involved, a bankruptcy judge may be designated to serve in any district adjacent to or near the district for 

which such bankruptcy judge was appointed. 

(e) A bankruptcy judge may be removed during the term for 

which such bankruptcy judge is appointed, only for incompetence, 

misconduct, neglect of duty, or physical or mental disability and 

only by the judicial council of the circuit in which the judge’s official duty station is located. Removal may not occur unless a majority of all of the judges of such council concur in the order of removal. Before any order of removal may be entered, a full specification of charges shall be furnished to such bankruptcy judge who 

shall be accorded an opportunity to be heard on such charges. 

* * * * * * * 

PART V—PROCEDURE 

* * * * * * * 

CHAPTER 123—FEES AND COSTS 

* * * * * * * 

16 

§ 1930. Bankruptcy fees 

(a) The parties commencing a case under title 11 shall pay to the 

clerk of the district court or the clerk of the bankruptcy court, if 

one has been certified pursuant to section 156(b) of this title, the 

following filing fees: 

(1) For a case commenced under— 

(A) chapter 7 of title 11, $245, and 

(B) chapter 13 of title 11, $235. 

(2) For a case commenced under chapter 9 of title 11, equal 

to the fee specified in paragraph (3) for filing a case under 

chapter 11 of title 11. The amount by which the fee payable 

under this paragraph exceeds $300 shall be deposited in the 

fund established under section 1931 of this title. 

(3) For a case commenced under chapter 11 of title 11 that 

does not concern a railroad, as defined in section 101 of title 

11, $1,167. 

(4) For a case commenced under chapter 11 of title 11 con- cerning a railroad, as so defined, $1,000. (5) For a case commenced under chapter 12 of title 11, $200. 

ø(6) In¿ (6) (A) Except as provided in subparagraph (B), 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 case under chapter 11 of title 11 for each quarter 

(including any fraction thereof) until the case is converted or 

dismissed, whichever occurs first. The fee shall be $325 for 

each quarter in which disbursements total less than $15,000; 

$650 for each quarter in which disbursements total $15,000 or 

more but less than $75,000; $975 for each quarter in which disbursements total $75,000 or more but less than $150,000; 

$1,625 for each quarter in which disbursements total $150,000 

or more but less than $225,000; $1,950 for each quarter in 

which disbursements total $225,000 or more but less than 

$300,000; $4,875 for each quarter in which disbursements total 

$300,000 or more but less than $1,000,000; $6,500 for each 

quarter in which disbursements total $1,000,000 or more but 

less than $2,000,000; $9,750 for each quarter in which disbursements total $2,000,000 or more but less than $3,000,000; 

$10,400 for each quarter in which disbursements total 

$3,000,000 or more but less than $5,000,000; $13,000 for each 

quarter in which disbursements total $5,000,000 or more but 

less than $15,000,000; $20,000 for each quarter in which disbursements total $15,000,000 or more but less than 

$30,000,000; $30,000 for each quarter in which disbursements 

total more than $30,000,000. The fee shall be payable on the 

last day of the calendar month following the calendar quarter 

for which the fee is owed. 

(B) In any fiscal year, the quarterly fee payable for a quarter in which disbursements equal or exceed $1,000,000 shall be 1 

percent of such disbursements or $250,000, whichever is less, 

unless the balance in the United States Trustee System Fund 

as of September 30 immediately preceding such fiscal year exceeds $200,000,000. 

(7) In districts that are not part of a United States trustee 

region as defined in section 581 of this title, the Judicial Conference of the United States may require the debtor in a case 

17 

under chapter 11 of title 11 to pay fees equal to those imposed 

by paragraph (6) of this subsection. Such fees shall be deposited as offsetting receipts to the fund established under section 

1931 of this title and shall remain available until expended. 

An individual commencing a voluntary case or a joint case under 

title 11 may pay such fee in installments. For converting, on request of the debtor, a case under chapter 7, or 13 of title 11, to a 

case under chapter 11 of title 11, the debtor shall pay to the clerk 

of the district court or the clerk of the bankruptcy court, if one has 

been certified pursuant to section 156(b) of this title, a fee of the 

amount equal to the difference between the fee specified in paragraph (3) and the fee specified in paragraph (1). 

(b) The Judicial Conference of the United States may prescribe 

additional fees in cases under title 11 of the same kind as the Judicial Conference prescribes under section 1914(b) of this title. 

(c) Upon the filing of any separate or joint notice of appeal or application for appeal or upon the receipt of any order allowing, or 

notice of the allowance of, an appeal or a writ of certiorari $5 shall 

be paid to the clerk of the court, by the appellant or petitioner. 

(d) Whenever any case or proceeding is dismissed in any bankruptcy court for want of jurisdiction, such court may order the payment of just costs. 

(e) The clerk of the court may collect only the fees prescribed 

under this section. 

(f)(1) Under the procedures prescribed by the Judicial Conference 

of the United States, the district court or the bankruptcy court may 

waive the filing fee in a case under chapter 7 of title 11 for an individual if the court determines that such individual has income less 

than 150 percent of the income official poverty line (as defined by 

the Office of Management and Budget, and revised annually in accordance with section 673(2) of the Omnibus Budget Reconciliation 

Act of 1981) applicable to a family of the size involved and is unable to pay that fee in installments. For purposes of this paragraph, the term ‘‘filing fee’’ means the filing fee required by subsection (a), or any other fee prescribed by the Judicial Conference 

under subsections (b) and (c) that is payable to the clerk upon the 

commencement of a case under chapter 7. 

(2) The district court or the bankruptcy court may waive for such 

debtors other fees prescribed under subsections (b) and (c). 

(3) This subsection does not restrict the district court or the 

bankruptcy court from waiving, in accordance with Judicial Conference policy, fees prescribed under this section for other debtors 

and creditors. 

* * * * * * * 

Æ