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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4996 Engrossed in Senate (ES)]

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116th CONGRESS
  2d Session
                                S. 4996

_______________________________________________________________________

                                 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.

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.
    ``(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
                            (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 
        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,
                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 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.
            (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).

SEC. 5. REGULATIONS.

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

            Passed the Senate December 9, 2020.

            Attest:

                                                             Secretary.
116th CONGRESS

  2d Session

                                S. 4996

_______________________________________________________________________

                                 AN ACT

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