I 

108TH CONGRESS 

1ST SESSION H. R. 343

To amend title 11 of the United States Code to protect family farmers 

and family fishermen. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 27, 2003

Ms. BALDWIN introduced the following bill; which was referred to the 

Committee on the Judiciary 

A BILL

To amend title 11 of the United States Code to protect 

family farmers and family fishermen.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Family Farmers and 

5 Family Fishermen Protection Act of 2003’’. 

6 SEC. 2. PERMANENT REENACTMENT OF CHAPTER 12. 

7 (a) REENACTMENT.—

8 (1) IN GENERAL.—Chapter 12 of title 11, 

9 United States Code, as reenacted by section 149 of 

10 division C of the Omnibus Consolidated and Emer-
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1 gency Supplemental Appropriations Act, 1999 (Pub2 lic Law 105–277), is hereby reenacted, and as here 

3 reenacted is amended by this Act. 

4 (2) EFFECTIVE DATE.—Subsection (a) shall 

5 take effect on the date of the enactment of this Act. 

6 (b) CONFORMING AMENDMENT.—Section 302 of the 

7 Bankruptcy Judges, United States Trustees, and Family 

8 Farmer Bankruptcy Act of 1986 (28 U.S.C. 581 note) is 

9 amended by striking subsection (f).

10 SEC. 3. DEBT LIMIT INCREASE. 

11 Section 104(b) of title 11, United States Code, is 

12 amended by inserting ‘‘101(18),’’ after ‘‘sections’’ each 

13 place it appears. 

14 SEC. 4. CERTAIN CLAIMS OWED TO GOVERNMENTAL UNITS. 

15 (a) CONTENTS OF PLAN.—Section 1222(a)(2) of title 

16 11, United States Code, is amended to read as follows: 

17 ‘‘(2) provide for the full payment, in deferred 

18 cash payments, of all claims entitled to priority 

19 under section 507, unless—

20 ‘‘(A) the claim is a claim owed to a govern21 mental unit that arises as a result of the sale, 

22 transfer, exchange, or other disposition of any 

23 farm asset used in the debtor’s farming oper24 ation, in which case the claim shall be treated 

25 as an unsecured claim that is not entitled to 
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1 priority under section 507, but the debt shall be 

2 treated in such manner only if the debtor re3 ceives a discharge; or 

4 ‘‘(B) the holder of a particular claim 

5 agrees to a different treatment of that claim;’’. 

6 (b) SPECIAL NOTICE PROVISIONS.—Section 1231(d) 

7 of title 11, United States Code, is amended by striking 

8 ‘‘a State or local governmental unit’’ and inserting ‘‘any 

9 governmental unit’’.

10 SEC. 5. DEFINITION OF FAMILY FARMER. 

11 Section 101(18) of title 11, United States Code, is 

12 amended—

13 (1) in subparagraph (A)—

14 (A) by striking ‘‘$1,500,000’’ and inserting 

15 ‘‘$3,237,000’’; and 

16 (B) by striking ‘‘80’’ and inserting ‘‘50’’; 

17 and 

18 (2) in subparagraph (B)(ii)—

19 (A) by striking ‘‘$1,500,000’’ and inserting 

20 ‘‘$3,237,000’’; and 

21 (B) by striking ‘‘80’’ and inserting ‘‘50’’.
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1 SEC. 6. ELIMINATION OF REQUIREMENT THAT FAMILY 

2 FARMER AND SPOUSE RECEIVE OVER 50 PER3 CENT OF INCOME FROM FARMING OPER4 ATION IN YEAR PRIOR TO BANKRUPTCY. 

5 Section 101(18)(A) of title 11, United States Code, 

6 is amended by striking ‘‘for the taxable year preceding the 

7 taxable year’’ and inserting the following: 

8 ‘‘for—

9 ‘‘(i) the taxable year preceding; or 

10 ‘‘(ii) each of the 2d and 3d taxable years 

11 preceding; 

12 the taxable year’’.

13 SEC. 7. PROHIBITION OF RETROACTIVE ASSESSMENT OF 

14 DISPOSABLE INCOME. 

15 (a) CONFIRMATION OF PLAN.—Section 1225(b)(1) of 

16 title 11, United States Code, is amended—

17 (1) in subparagraph (A) by striking ‘‘or’’ at the 

18 end; 

19 (2) in subparagraph (B) by striking the period 

20 at the end and inserting ‘‘; or’’; and 

21 (3) by adding at the end the following: 

22 ‘‘(C) the value of the property to be distributed 

23 under the plan in the 3-year period, or such longer 

24 period as the court may approve under section 

25 1222(c), beginning on the date that the first dis26 tribution is due under the plan is not less than the
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1 debtor’s projected disposable income for such pe2 riod.’’. 

3 (b) MODIFICATION OF PLAN.—Section 1229 of title 

4 11, United States Code, is amended by adding at the end 

5 the following: 

6 ‘‘(d) A plan may not be modified under this section—

7 ‘‘(1) to increase the amount of any payment 

8 due before the plan as modified becomes the plan; 

9 ‘‘(2) by anyone except the debtor, based on an 

10 increase in the debtor’s disposable income, to in11 crease the amount of payments to unsecured credi12 tors required for a particular month so that the ag13 gregate of such payments exceeds the debtor’s dis14 posable income for such month; or 

15 ‘‘(3) in the last year of the plan by anyone ex16 cept the debtor, to require payments that would 

17 leave the debtor with insufficient funds to carry on 

18 the farming operation after the plan is completed.’’.

19 SEC. 8. FAMILY FISHERMEN. 

20 (a) DEFINITIONS.—Section 101 of title 11, United 

21 States Code, is amended—

22 (1) by inserting after paragraph (7) the fol23 lowing: 

24 ‘‘(7A) ‘commercial fishing operation’ means—
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1 ‘‘(A) the catching or harvesting of fish, 

2 shrimp, lobsters, urchins, seaweed, shellfish, or 

3 other aquatic species or products of such spe4 cies; or 

5 ‘‘(B) for purposes of section 109 and chap6 ter 12, aquaculture activities consisting of rais7 ing for market any species or product described 

8 in subparagraph (A); 

9 ‘‘(7B) ‘commercial fishing vessel’ means a ves10 sel used by a family fisherman to carry out a com11 mercial fishing operation;’’; and 

12 (2) by inserting after paragraph (19) the fol13 lowing: 

14 ‘‘(19A) ‘family fisherman’ means—

15 ‘‘(A) an individual or individual and spouse 

16 engaged in a commercial fishing operation—

17 ‘‘(i) whose aggregate debts do not ex18 ceed $1,500,000 and not less than 80 per19 cent of whose aggregate noncontingent, liq20 uidated debts (excluding a debt for the 

21 principal residence of such individual or 

22 such individual and spouse, unless such 

23 debt arises out of a commercial fishing op24 eration), on the date the case is filed, arise 

25 out of a commercial fishing operation 
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1 owned or operated by such individual or 

2 such individual and spouse; and 

3 ‘‘(ii) who receive from such commer4 cial fishing operation more than 50 percent 

5 of such individual’s or such individual’s 

6 and spouse’s gross income for the taxable 

7 year preceding the taxable year in which 

8 the case concerning such individual or such 

9 individual and spouse was filed; or 

10 ‘‘(B) a corporation or partnership—

11 ‘‘(i) in which more than 50 percent of 

12 the outstanding stock or equity is held 

13 by—

14 ‘‘(I) 1 family that conducts the 

15 commercial fishing operation; or 

16 ‘‘(II) 1 family and the relatives 

17 of the members of such family, and 

18 such family or such relatives conduct 

19 the commercial fishing operation; and 

20 ‘‘(ii)(I) more than 80 percent of the 

21 value of its assets consists of assets related 

22 to the commercial fishing operation; 

23 ‘‘(II) its aggregate debts do not ex24 ceed $1,500,000 and not less than 80 per25 cent of its aggregate noncontingent, liq-
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1 uidated debts (excluding a debt for 1 

2 dwelling which is owned by such corpora3 tion or partnership and which a share4 holder or partner maintains as a principal 

5 residence, unless such debt arises out of a 

6 commercial fishing operation), on the date 

7 the case is filed, arise out of a commercial 

8 fishing operation owned or operated by 

9 such corporation or such partnership; and 

10 ‘‘(III) if such corporation issues stock, 

11 such stock is not publicly traded; 

12 ‘‘(19B) ‘family fisherman with regular annual 

13 income’ means a family fisherman whose annual in14 come is sufficiently stable and regular to enable such 

15 family fisherman to make payments under a plan 

16 under chapter 12 of this title;’’. 

17 (b) WHO MAY BE A DEBTOR.—Section 109(f) of title 

18 11, United States Code, is amended by inserting ‘‘or fam19 ily fisherman’’ after ‘‘family farmer’’. 

20 (c) CHAPTER 12.—Chapter 12 of title 11, United 

21 States Code, is amended—

22 (1) in the chapter heading, by inserting ‘‘OR 

23 FISHERMAN’’ after ‘‘FAMILY FARMER’’; 

24 (2) in section 1203, by inserting ‘‘or commer25 cial fishing operation’’ after ‘‘farm’’; and 
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1 (3) in section 1206, by striking ‘‘if the property 

2 is farmland or farm equipment’’ and inserting ‘‘if 

3 the property is farmland, farm equipment, or prop4 erty used to carry out a commercial fishing oper5 ation (including a commercial fishing vessel)’’. 

6 (d) CLERICAL AMENDMENT.—In the table of chap7 ters for title 11, United States Code, the item relating to 

8 chapter 12, is amended to read as follows:

‘‘12. Adjustments of Debts of a Family Farmer or Family 

Fisherman with Regular Annual Income ..... 1201’’.

9 (e) APPLICABILITY.—Nothing in this section shall 

10 change, affect, or amend the Fishery Conservation and 

11 Management Act of 1976 (16 U.S.C. 1801 et seq.). 

12 SEC. 9. EFFECTIVE DATE; APPLICATION OF AMENDMENTS. 

13 This Act and the amendments made by this Act shall 

14 take effect on the date of the enactment of this Act and 

15 shall not apply with respect to cases commenced under 

16 title 11 of the United States Code before such date.

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