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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Family Farmers and 
Family Fishermen Protection Act of 2003’’. 
SEC. 2. PERMANENT REENACTMENT OF CHAPTER 12. 
(a) REENACTMENT.—
(1) IN
GENERAL.—Chapter 12 of title 11, 
United States Code, as reenacted by section 149 of 
division C of the Omnibus Consolidated and Emer-
gency Supplemental Appropriations Act, 1999 (Pub-
lic Law 105–277), is hereby reenacted, and as here 
reenacted is amended by this Act. 
(2) EFFECTIVE
DATE.—Subsection (a) shall 
take effect on the date of the enactment of this Act. 
(b) CONFORMING AMENDMENT.—Section 302 of the 
Bankruptcy Judges, United States Trustees, and Family 
Farmer Bankruptcy Act of 1986 (28 U.S.C. 581 note) is 
amended by striking subsection (f).
SEC. 3. DEBT LIMIT INCREASE. 
Section 104(b) of title 11, United States Code, is 
amended by inserting ‘‘101(18),’’ after ‘‘sections’’ each 
place it appears. 
SEC. 4. CERTAIN CLAIMS OWED TO GOVERNMENTAL UNITS. 
(a) CONTENTS OF PLAN.—Section 1222(a)(2) of title 
11, United States Code, is amended to read as follows: 
‘‘(2) provide for the full payment, in deferred 
cash payments, of all claims entitled to priority 
under section 507, unless—
‘‘(A) the claim is a claim owed to a govern-
mental unit that arises as a result of the sale, 
transfer, exchange, or other disposition of any 
farm asset used in the debtor’s farming oper-
ation, in which case the claim shall be treated 
as an unsecured claim that is not entitled to
SEC. 6. ELIMINATION OF REQUIREMENT THAT FAMILY 
FARMER AND SPOUSE RECEIVE OVER 50 PER-
CENT OF INCOME FROM FARMING OPER-
ATION IN YEAR PRIOR TO BANKRUPTCY. 
Section 101(18)(A) of title 11, United States Code, 
is amended by striking ‘‘for the taxable year preceding the 
taxable year’’ and inserting the following: 
‘‘for—
‘‘(i) the taxable year preceding; or 
‘‘(ii) each of the 2d and 3d taxable years 
preceding; 
the taxable year’’.
SEC. 7. PROHIBITION OF RETROACTIVE ASSESSMENT OF 
DISPOSABLE INCOME. 
(a) CONFIRMATION OF PLAN.—Section 1225(b)(1) of 
title 11, United States Code, is amended—
(1) in subparagraph (A) by striking ‘‘or’’ at the 
end; 
(2) in subparagraph (B) by striking the period 
at the end and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(C) the value of the property to be distributed 
under the plan in the 3-year period, or such longer 
period as the court may approve under section 
1222(c), beginning on the date that the first dis-
tribution is due under the plan is not less than the
debtor’s projected disposable income for such pe-
riod.’’. 
(b) MODIFICATION OF PLAN.—Section 1229 of title 
11, United States Code, is amended by adding at the end 
the following: 
‘‘(d) A plan may not be modified under this section—
‘‘(1) to increase the amount of any payment 
due before the plan as modified becomes the plan; 
‘‘(2) by anyone except the debtor, based on an 
increase in the debtor’s disposable income, to in-
crease the amount of payments to unsecured credi-
tors required for a particular month so that the ag-
gregate of such payments exceeds the debtor’s dis-
posable income for such month; or 
‘‘(3) in the last year of the plan by anyone ex-
cept the debtor, to require payments that would 
leave the debtor with insufficient funds to carry on 
the farming operation after the plan is completed.’’.
SEC. 8. FAMILY FISHERMEN. 
(a) DEFINITIONS.—Section 101 of title 11, United 
States Code, is amended—
(1) by inserting after paragraph (7) the fol-
lowing: 
‘‘(7A) ‘commercial fishing operation’ means—
‘‘(A) the catching or harvesting of fish, 
shrimp, lobsters, urchins, seaweed, shellfish, or 
other aquatic species or products of such spe-
cies; or 
‘‘(B) for purposes of section 109 and chap-
ter 12, aquaculture activities consisting of rais-
ing for market any species or product described 
in subparagraph (A); 
‘‘(7B) ‘commercial fishing vessel’ means a ves-
sel used by a family fisherman to carry out a com-
mercial fishing operation;’’; and 
(2) by inserting after paragraph (19) the fol-
lowing: 
‘‘(19A) ‘family fisherman’ means—
‘‘(A) an individual or individual and spouse 
engaged in a commercial fishing operation—
‘‘(i) whose aggregate debts do not ex-
ceed $1,500,000 and not less than 80 per-
cent of whose aggregate noncontingent, liq-
uidated debts (excluding a debt for the 
principal residence of such individual or 
such individual and spouse, unless such 
debt arises out of a commercial fishing op-
eration), on the date the case is filed, arise 
out of a commercial fishing operation
owned or operated by such individual or 
such individual and spouse; and 
‘‘(ii) who receive from such commer-
cial fishing operation more than 50 percent 
of such individual’s or such individual’s 
and spouse’s gross income for the taxable 
year preceding the taxable year in which 
the case concerning such individual or such 
individual and spouse was filed; or 
‘‘(B) a corporation or partnership—
‘‘(i) in which more than 50 percent of 
the outstanding stock or equity is held 
by—
‘‘(I) 1 family that conducts the 
commercial fishing operation; or 
‘‘(II) 1 family and the relatives 
of the members of such family, and 
such family or such relatives conduct 
the commercial fishing operation; and 
‘‘(ii)(I) more than 80 percent of the 
value of its assets consists of assets related 
to the commercial fishing operation; 
‘‘(II) its aggregate debts do not ex-
ceed $1,500,000 and not less than 80 per-
cent of its aggregate noncontingent, liq-
uidated debts (excluding a debt for 1 
dwelling which is owned by such corpora-
tion or partnership and which a share-
holder or partner maintains as a principal 
residence, unless such debt arises out of a 
commercial fishing operation), on the date 
the case is filed, arise out of a commercial 
fishing operation owned or operated by 
such corporation or such partnership; and 
‘‘(III) if such corporation issues stock, 
such stock is not publicly traded; 
‘‘(19B) ‘family fisherman with regular annual 
income’ means a family fisherman whose annual in-
come is sufficiently stable and regular to enable such 
family fisherman to make payments under a plan 
under chapter 12 of this title;’’. 
(b) WHO MAY BE A DEBTOR.—Section 109(f) of title 
11, United States Code, is amended by inserting ‘‘or fam-
ily fisherman’’ after ‘‘family farmer’’. 
(c) CHAPTER 12.—Chapter 12 of title 11, United 
States Code, is amended—
(1) in the chapter heading, by inserting ‘‘OR 
FISHERMAN’’ after ‘‘FAMILY FARMER’’; 
(2) in section 1203, by inserting ‘‘or commer-
cial fishing operation’’ after ‘‘farm’’; and
(3) in section 1206, by striking ‘‘if the property 
is farmland or farm equipment’’ and inserting ‘‘if 
the property is farmland, farm equipment, or prop-
erty used to carry out a commercial fishing oper-
ation (including a commercial fishing vessel)’’. 
(d) CLERICAL AMENDMENT.—In the table of chap-
ters for title 11, United States Code, the item relating to 
chapter 12, is amended to read as follows:
‘‘12. Adjustments of Debts of a Family Farmer or Family 
Fisherman with Regular Annual Income ..... 1201’’.
(e) APPLICABILITY.—Nothing in this section shall 
change, affect, or amend the Fishery Conservation and 
Management Act of 1976 (16 U.S.C. 1801 et seq.). 
SEC. 9. EFFECTIVE DATE; APPLICATION OF AMENDMENTS. 
This Act and the amendments made by this Act shall 
take effect on the date of the enactment of this Act and 
shall not apply with respect to cases commenced under 
title 11 of the United States Code before such date.
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