Bankruptcy Administration Improvement Act of 2020
PL 116-325 (S.4996), enacted 01/12/2021

[116th Congress Public Law 325]
[From the U.S. Government Publishing Office]



[[Page 5085]]

            BANKRUPTCY ADMINISTRATION IMPROVEMENT ACT OF 2020

[[Page 134 STAT. 5086]]

Public Law 116-325
116th Congress

                                 An Act


 
   To ensure funding of the United States trustees, extend temporary 
    bankruptcy judgeships, and for other purposes. <<NOTE: Jan. 12, 
                          2021 -  [S. 4996]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Bankruptcy 
Administration Improvement Act of 2020. 28 USC 1 note.>> 
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Bankruptcy Administration Improvement 
Act of 2020''.
SEC. 2. <<NOTE: 28 USC 1930 note.>>  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.

[[Page 134 STAT. 5087]]

SEC. 3. UNITED STATES TRUSTEE SYSTEM FUND; BANKRUPTCY FEES.

    (a) <<NOTE: 28 USC 589a note.>>  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) <<NOTE: Time period.>>  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) <<NOTE: Determination. Reimbursement.>>  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) <<NOTE: Determination.>>  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) <<NOTE: Time period.>>  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.

[[Page 134 STAT. 5088]]

    ``(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) <<NOTE: Time periods.>>  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) <<NOTE: Deadline. Regulations.>>  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) <<NOTE: Time periods. Effective date.>>  
                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) <<NOTE: 11 USC 330 note.>>  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

[[Page 134 STAT. 5089]]

                          (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. <<NOTE: 28 USC 152 note.>>  EXTENSION OF TEMPORARY OFFICE 
                    OF BANKRUPTCY JUDGES IN CERTAIN JUDICIAL 
                    DISTRICTS.

    (a) <<NOTE: Delaware. Michigan.>>  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) <<NOTE: Time period.>>  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) <<NOTE: State listing.>>  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

[[Page 134 STAT. 5090]]

        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) <<NOTE: Time period.>>  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,

[[Page 134 STAT. 5091]]

                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) <<NOTE: State listing.>>  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) <<NOTE: Time period.>>  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

[[Page 134 STAT. 5092]]

        to the temporary office of bankruptcy judges referred to in 
        paragraph (1).

    (d) <<NOTE: Delaware. Puerto Rico.>>  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) <<NOTE: Time period.>>  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) <<NOTE: Tennessee.>>  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.

[[Page 134 STAT. 5093]]

            (2) Vacancy.--The 1st vacancy in the office of a bankruptcy 
        judge for the eastern district of Tennessee--
                    (A) <<NOTE: Time period.>>  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) <<NOTE: North Carolina.>>  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) <<NOTE: Time period.>>  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).

[[Page 134 STAT. 5094]]

SEC. 5. REGULATIONS.

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

    Approved January 12, 2021.

LEGISLATIVE HISTORY--S. 4996:
---------------------------------------------------------------------------

CONGRESSIONAL RECORD, Vol. 166 (2020):
            Dec. 9, considered and passed Senate.
            Dec. 21, considered and passed House.

                                  <all>