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. 

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

2 This Act may be cited as the ‘‘Bankruptcy Judgeship 

3 Act of 2017’’. 

4 SEC. 2. EXTENSION OF TEMPORARY OFFICE OF BANK5 RUPTCY JUDGES IN CERTAIN JUDICIAL DIS6 TRICTS. 

7 (a) TEMPORARY OFFICE OF BANKRUPTCY JUDGES

8 AUTHORIZED BY THE BANKRUPTCY JUDGESHIP ACT OF

9 2005.—Section 2(a)(2) of the Temporary Bankruptcy 

10 Judgeships Extension Act of 2012 (28 U.S.C. 152 note; 

11 Public Law 112–121) is amended— 

12 (1) in subparagraph (A), by striking ‘‘and (H)’’ 

13 and inserting ‘‘(H), (I), and (J)’’; 

14 (2) in subparagraph (C)— 

15 (A) in clause (i), by striking ‘‘6’’ and in16 serting ‘‘11’’; and 

17 (B) in clause (ii), by striking ‘‘5’’ and in18 serting ‘‘10’’; 

19 (3) in subparagraph (D)(i), by striking ‘‘6’’ and 

20 inserting ‘‘11’’; 

21 (4) by striking subparagraph (E) and inserting 

22 the following: 

23 ‘‘(E) DISTRICT OF MARYLAND.—The 1st, 

24 2d, and 3d vacancies in the office of a bank25 ruptcy judge for the district of Maryland— 
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1 ‘‘(i) in the case of the 1st and 2d va2 cancies, occurring more than 5 years after 

3 the date of the enactment of this Act, 

4 ‘‘(ii) in the case of the 3d vacancy, oc5 curring more than 10 years after the date 

6 of enactment of this Act, and 

7 ‘‘(iii) resulting from the death, retire8 ment, resignation, or removal of a bank9 ruptcy judge, 

10 shall not be filled..’’; 

11 (5) in subparagraph (F)(i), by striking ‘‘6’’ and 

12 inserting ‘‘11’’; 

13 (6) in subparagraph (G)(i), by striking ‘‘6’’ and 

14 inserting ‘‘11’’; 

15 (7) in subparagraph (H)(i), by striking ‘‘6’’ and 

16 inserting ‘‘11’’; and 

17 (8) by adding at the end the following: 

18 ‘‘(I) DISTRICT OF NEVADA.—The 1st va19 cancy in the office of a bankruptcy judge for 

20 the district of Nevada— 

21 ‘‘(i) occurring more than 10 years 

22 after the date of the enactment of this Act, 

23 and 
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1 ‘‘(ii) resulting from the death, retire2 ment, resignation, or removal of a bank3 ruptcy judge, 

4 shall not be filled. 

5 ‘‘(J) EASTERN DISTRICT OF NORTH CARO6 LINA.—The 1st vacancy in the office of a bank7 ruptcy judge for the eastern district of North 

8 Carolina— 

9 ‘‘(i) occurring more than 10 years 

10 after the date of the enactment of this Act, 

11 and 

12 ‘‘(ii) resulting from the death, retire13 ment, resignation, or removal of a bank14 ruptcy judge, 

15 shall not be filled.’’. 

16 (b) TEMPORARY OFFICE OF BANKRUPTCY JUDGES

17 AUTHORIZED BY THE BANKRUPTCY JUDGESHIP ACT OF

18 1992.—Section 2(b)(2) of the Temporary Bankruptcy 

19 Judgeships Extension Act of 2012 (28 U.S.C. 152 note; 

20 Public Law 112–121) is amended— 

21 (1) in subparagraph (A)(i), by striking ‘‘5’’ and 

22 inserting ‘‘10’’; and 

23 (2) in subparagraph (B)(i), by striking ‘‘5’’ and 

24 inserting ‘‘10’’. 
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1 SEC. 3. TEMPORARY OFFICE OF BANKRUPTCY JUDGE AU2 THORIZED. 

3 (a) APPOINTMENTS.—The following bankruptcy 

4 judges shall be appointed in the manner prescribed in sec5 tion 152(a)(1) of title 28, United States Code, for the ap6 pointment of bankruptcy judges provided for in section 

7 152(a)(2) of that title: 

8 (1) Two additional bankruptcy judges for the 

9 district of Delaware. 

10 (2) One additional bankruptcy judge of the 

11 middle district of Florida. 

12 (3) One additional bankruptcy judge for the 

13 eastern district of Michigan. 

14 (b) VACANCIES.— 

15 (1) DISTRICT OF DELAWARE.—The 6th and 7th 

16 vacancies in the office of a bankruptcy judge for the 

17 district of Delaware— 

18 (A) occurring more than 10 years after the 

19 date of enactment of the Temporary Bank20 ruptcy Judgeships Extension Act of 2012 (28 

21 U.S.C. 152 note; Public Law 112–121); and 

22 (B) resulting from the death, retirement, 

23 resignation, or removal of a bankruptcy judge, 

24 shall not be filled. 
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1 (2) MIDDLE DISTRICT OF FLORIDA.—The 1st 

2 vacancy in the office of a bankruptcy judge for the 

3 middle district of Florida— 

4 (A) occurring more than 5 years after the 

5 date of enactment of this Act; and 

6 (B) resulting from the death, retirement, 

7 resignation, or removal of a bankruptcy judge, 

8 shall not be filled. 

9 (3) EASTERN DISTRICT OF MICHIGAN.—The 2d 

10 vacancy in the office of a bankruptcy judge for the 

11 eastern district of Michigan— 

12 (A) occurring more than 11 years after the 

13 date of enactment of the Temporary Bank14 ruptcy Judgeships Extension Act of 2012 (28 

15 U.S.C. 152 note; Public Law 112–121); and 

16 (B) resulting from the death, retirement, 

17 resignation, or removal of a bankruptcy judge, 

18 shall not be filled. 

19 SEC. 4. BANKRUPTCY FEES. 

20 (a) AMENDMENTS TO TITLE 28 OF THE UNITED

21 STATES CODE.—Section 1930(a)(6) of title 28, United 

22 States Code, is amended— 

23 (1) by striking ‘‘(6) In’’ and inserting ‘‘(6)(A) 

24 Except as provided in subparagraph (B), in’’; and 

25 (2) by adding at the end the following: 
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1 ‘‘(B) During each of fiscal years 2018 through 

2 2022, if the balance in the United States Trustee 

3 System Fund as of September 30 of the most recent 

4 full fiscal year is less than $200,000,000, the quar5 terly fee payable for a quarter in which disburse6 ments equal or exceed $1,000,000 shall be the lesser 

7 of 1 percent of such disbursements or $250,000.’’. 

8 (b) DEPOSITS OF CERTAIN FEES FOR FISCAL YEARS

9 2018 THROUGH 2022.—Notwithstanding section 589a(b) 

10 of title 28, United States Code, for each of fiscal years 

11 2018 through 2022— 

12 (1) 98 percent of the fees collected under sec13 tion 1930(a)(6) of such title shall be deposited as 

14 offsetting collections to the appropriation ‘‘United 

15 States Trustee System Fund’’, to remain available 

16 until expended; and 

17 (2) 2 percent of the fees collected under section 

18 1930(a)(6) of such title shall be deposited in the 

19 general fund of the Treasury. 

20 (c) APPLICATION OF AMENDMENTS.—The amend21 ments made by this section shall apply to quarterly fees 

22 payable under section 1930(a)(6) of title 28, United 

23 States Code, as amended by this section, for disburse24 ments made in any calendar quarter that begins on or 

25 after the date of enactment of this Act. 
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1 SEC. 5. CLARIFICATION OF RULE ALLOWING DISCHARGE 

2 TO GOVERNMENTAL CLAIMS ARISING FROM 

3 THE DISPOSITION OF FARM ASSETS UNDER 

4 CHAPTER 12 BANKRUPTCIES. 

5 (a) IN GENERAL.—Subchapter II of chapter 12 of 

6 title 11, United States Code, is amended by adding at the 

7 end the following: 

8 ‘‘§ 1232. Claim by a governmental unit based on the 

9 disposition of property used in a farming 

10 operation 

11 ‘‘(a) Any unsecured claim of a governmental unit 

12 against the debtor or the estate that arises before the fil13 ing of the petition, or that arises after the filing of the 

14 petition and before the debtor’s discharge under section 

15 1228, as a result of the sale, transfer, exchange, or other 

16 disposition of any property used in the debtor’s farming 

17 operation— 

18 ‘‘(1) shall be treated as an unsecured claim 

19 arising before the date on which the petition is filed; 

20 ‘‘(2) shall not be entitled to priority under sec21 tion 507; 

22 ‘‘(3) shall be provided for under a plan; and 

23 ‘‘(4) shall be discharged in accordance with sec24 tion 1228. 

25 ‘‘(b) For purposes of applying sections 1225(a)(4), 

26 1228(b)(2), and 1229(b)(1) to a claim described in sub-
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1 section (a) of this section, the amount that would be paid 

2 on such claim if the estate of the debtor were liquidated 

3 in a case under chapter 7 of this title shall be the amount 

4 that would be paid by the estate in a chapter 7 case if 

5 the claim were an unsecured claim arising before the date 

6 on which the petition was filed and were not entitled to 

7 priority under section 507. 

8 ‘‘(c) For purposes of applying sections 523(a), 

9 1228(a)(2), and 1228(c)(2) to a claim described in sub10 section (a) of this section, the claim shall not be treated 

11 as a claim of a kind specified in subparagraph (A) or (B) 

12 of section 523(a)(1). 

13 ‘‘(d)(1) A governmental unit may file a proof of claim 

14 for a claim described in subsection (a) that arises after 

15 the date on which the petition is filed. 

16 ‘‘(2) If a debtor files a tax return after the filing of 

17 the petition for a period in which a claim described in sub18 section (a) arises, and the claim relates to the tax return, 

19 the debtor shall serve notice of the claim on the govern20 mental unit charged with the responsibility for the collec21 tion of the tax at the address and in the manner des22 ignated in section 505(b)(1). Notice under this paragraph 

23 shall state that the debtor has filed a petition under this 

24 chapter, state the name and location of the court in which 

25 the case under this chapter is pending, state the amount 
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1 of the claim, and include a copy of the filed tax return 

2 and documentation supporting the calculation of the 

3 claim. 

4 ‘‘(3) If notice of a claim has been served on the gov5 ernmental unit in accordance with paragraph (2), the gov6 ernmental unit may file a proof of claim not later than 

7 180 days after the date on which such notice was served. 

8 If the governmental unit has not filed a timely proof of 

9 the claim, the debtor or trustee may file proof of the claim 

10 that is consistent with the notice served under paragraph 

11 (2). If a proof of claim is filed by the debtor or trustee 

12 under this paragraph, the governmental unit may not 

13 amend the proof of claim. 

14 ‘‘(4) A claim filed under this subsection shall be de15 termined and shall be allowed under subsection (a), (b), 

16 or (c) of section 502, or disallowed under subsection (d) 

17 or (e) of section 502, in the same manner as if the claim 

18 had arisen immediately before the date of the filing of the 

19 petition.’’. 

20 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

21 (1) IN GENERAL.—Subchapter II of chapter 12 

22 of title 11, United States Code, is amended— 

23 (A) in section 1222(a)— 
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1 (i) in paragraph (2), by striking ‘‘un2 less—’’ and all that follows through ‘‘the 

3 holder’’ and inserting ‘‘unless the holder’’; 

4 (ii) in paragraph (3), by striking 

5 ‘‘and’’ at the end; 

6 (iii) in paragraph (4), by striking the 

7 period at the end and inserting ‘‘; and’’; 

8 and 

9 (iv) by adding at the end the fol10 lowing: 

11 ‘‘(5) subject to section 1232, provide for the 

12 treatment of any claim by a governmental unit of a 

13 kind described in section 1232(a).’’; 

14 (B) in section 1228— 

15 (i) in subsection (a)— 

16 (I) in the matter preceding para17 graph (1)— 

18 (aa) by inserting a comma 

19 after ‘‘all debts provided for by 

20 the plan’’; and 

21 (bb) by inserting a comma 

22 after ‘‘allowed under section 503 

23 of this title’’; and 

24 (II) in paragraph (2), by striking 

25 ‘‘the kind’’ and all that follows and in-
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1 serting ‘‘a kind specified in section 

2 523(a) of this title, except as provided 

3 in section 1232(c).’’; and 

4 (ii) in subsection (c)(2), by inserting 

5 ‘‘, except as provided in section 1232(c)’’ 

6 before the period at the end; and 

7 (C) in section 1229(a)— 

8 (i) in paragraph (2), by striking ‘‘or’’ 

9 at the end; 

10 (ii) in paragraph (3), by striking the 

11 period at the end and inserting ‘‘; or’’; and 

12 (iii) by adding at the end the fol13 lowing: 

14 ‘‘(4) provide for the payment of a claim de15 scribed in section 1232(a) that arose after the date 

16 on which the petition was filed.’’. 

17 (2) TABLE OF SECTIONS.—The table of sections 

18 for subchapter II of chapter 12 of title 11, United 

19 States Code, is amended by adding at the end the 

20 following: 

‘‘1232. Claim by a governmental unit based on the disposition of property used 

in a farming operation.’’. 

21 (c) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to— 

23 (1) any bankruptcy case— 
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1 (A) that is pending on the date of enact2 ment of this Act; 

3 (B) in which the plan under chapter 12 of 

4 title 11, United States Code, has not been con5 firmed on the date of enactment of this Act; 

6 and 

7 (C) relating to which an order of discharge 

8 under section 1228 of title 11, United States 

9 Code, has not been entered; and 

10 (2) any bankruptcy case that commences on or 

11 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 authorjudges, and for other purposes. ize the appointment of additional bankruptcy