[Congressional Record (Bound Edition), Volume 156 (2010), Part 3] [House] [Pages 3037-3039] [From the U.S. Government Publishing Office, www.gpo.gov]BANKRUPTCY JUDGESHIP ACT OF 2010 Mr. COHEN. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 4506) to authorize the appointment of additional bankruptcy judges, and for other purposes, as amended. The Clerk read the title of the bill. The text of the bill is as follows: H.R. 4506 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 Judgeship Act of 2010''. SEC. 2. ADDITIONAL PERMANENT OFFICES OF BANKRUPTCY JUDGES. Section 152(a)(2) of title 28, United States Code, is amended-- (1) in the item relating to the eastern and western districts of Arkansas by striking ``3'' and inserting ``4'', (2) in the item relating to the eastern district of California by striking ``6'' and inserting ``8'', (3) in the item relating to the district of Delaware by striking ``1'' and inserting ``6'', (4) in the item relating to the middle district of Florida by striking ``8'' and inserting ``9'', (5) in the item relating to the northern district of Florida by striking ``1'' and inserting ``2'', (6) in the item relating to the southern district of Florida by striking ``5'' and inserting ``7'', (7) in the item relating to the northern district of Georgia by striking ``8'' and inserting ``10'', (8) in the item relating to the southern district of Georgia by striking ``2'' and inserting ``3'', (9) in the item relating to the district of Maryland by striking ``4'' and inserting ``7'', (10) in the item relating to the eastern district of Michigan by striking ``4'' and inserting ``7'', (11) in the item relating to the northern district of Mississippi by striking ``1'' and inserting ``2'', (12) in the item relating to the district of Nevada by striking ``3'' and inserting ``5'', (13) in the item relating to the district of New Hampshire by striking ``1'' and inserting ``2'', (14) in the item relating to the district of New Jersey by striking ``8'' and inserting ``9'', (15) in the item relating to the northern district of New York by striking ``2'' and inserting ``3'', (16) in the item relating to the southern district of New York by striking ``9'' and inserting ``10'', (17) in the item relating to the eastern district of North Carolina by striking ``2'' and inserting ``3'', (18) in the item relating to the western district of North Carolina by striking ``2'' and inserting ``3'', (19) in the item relating to the middle district of Pennsylvania by striking ``2'' and inserting ``3'', (20) in the item relating to the eastern district of Tennessee by striking ``3'' and inserting ``4'', (21) in the item relating to the western district of Tennessee by striking ``4'' and inserting ``5'', (22) in the item relating to the eastern district of Virginia by striking ``5'' and inserting ``6'', and (23) in the item relating to the southern district of West Virginia by striking ``1'' and inserting ``2''. SEC. 3. CONVERSION OF CERTAIN TEMPORARY OFFICES OF BANKRUPTCY JUDGES TO PERMANENT OFFICES. (a) Conversion of Certain Temporary Offices Established by Public Law 109-8.--The temporary offices of bankruptcy judges established by section 1223(b)(1) of Public Law 109-8 (28 U.S.C. 152 note) for the following districts are hereby converted so as to be included in the permanent offices of bankruptcy judges that are added by the amendments made by section 2 with respect to the corresponding districts: (1) The eastern district of California. (2) The district of Delaware. (3) The southern district of Florida. (4) The southern district of Georgia. (5) The district of Maryland. (6) The district of New Jersey. (7) The northern district of New York. (8) The southern district of New York. (9) The eastern district of North Carolina. (10) The middle district of Pennsylvania. (11) The western district of Tennessee. (12) The eastern district of Virginia. (13) The district of Nevada. (b) Conversion of Certain Temporary Offices Established by Public Law 102-361.--The temporary offices of bankruptcy judges established by section 3(a) of Public Law 102-361 (28 U.S.C. 152 note) for the following districts are hereby converted so as to be included in the permanent offices of bankruptcy judges that are added by the amendments made by section 2 with respect to the corresponding districts: (1) The district of Delaware. (2) The district of New Hampshire. (3) The eastern district of Tennessee. SEC. 4. EXTENSION OF CERTAIN TEMPORARY OFFICES OF BANKRUPTCY JUDGES ESTABLISHED BY PUBLIC LAW 109-8. (a) Extensions.--The temporary offices of bankruptcy judges established for the eastern district of Pennsylvania and the middle district of North Carolina by section 1223(b)(1) of Public Law 109-8 (28 U.S.C. 152 note) are extended until the 1st vacancy occurring in the office of a bankruptcy judge in the respective district resulting from the death, retirement, resignation, or removal of a bankruptcy judge and occurring 5 years or more after the date of the enactment of this Act. (b) Applicability of Other Provisions.--Except as provided in subsection (a), all other provisions of section 1223(b) of Public Law 109-8 (28 U.S.C. 152 note) remain applicable to the temporary offices of bankruptcy judges referred to in subsection (a). SEC. 5. PAYGO OFFSET. (a) Bankruptcy Filing Fees.--Section 1930(a) of title 28, United States Code, is amended-- (1) in paragraph (1)-- (A) in subparagraph (A) by striking ``$245'' and inserting ``$246'', and (B) in subparagraph (B) by striking ``$235'' and inserting ``$236'', and (2) in paragraph (3) by striking ``$1,000'' and inserting ``$1,042''. (b) United States Trustee Fund.--Section 589a(b) of title 28, United States Code, is amended-- [[Page 3038]] (1) in paragraph (1)-- (A) in subparagraph (A) by striking ``40.46'' and inserting ``40.28'', and (B) in subparagraph (B) by striking ``28.33'' and inserting ``28.15'', and (2) in paragraph (2) by striking ``55'' and inserting ``52.78''. (c) Collection and Deposition of Miscellaneous Bankruptcy Fees.--Section 406(b) of the Judiciary Appropriations Act, 1990 (Public Law 101-162; 28 U.S.C. 1931 note) is amended-- (1) by striking ``28.87'' and inserting ``28.74'', (2) by striking ``35.00'' and inserting ``34.77'', and (3) by striking ``25'' and inserting ``23.99''. SEC. 6. EFFECTIVE DATES. (a) General Effective Date.--Except as provided in subsection (b), this Act and the amendments made by this Act shall take effect on the date of the enactment of this Act. (b) Special Effective Date.--The amendments made by section 5 shall take effect 180 days after the date of the enactment of this Act. The SPEAKER pro tempore. Pursuant to the rule, the gentleman from Tennessee (Mr. Cohen) and the gentleman from Texas (Mr. Poe) each will control 20 minutes. The Chair recognizes the gentleman from Tennessee. General Leave Mr. COHEN. Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days to revise and extend their remarks and include extraneous material on the bill under consideration. The SPEAKER pro tempore. Is there objection to the request of the gentleman from Tennessee? There was no objection. Mr. COHEN. I yield myself such time as I may consume. Mr. Speaker, H.R. 4506, the Bankruptcy Judgeship Act of 2010, provides new resources for bankruptcy courts to handle the growing number and complexity of bankruptcy cases. This economy has resulted in many people having to seek bankruptcy who never would have dreamed they would have before. And the complexity of the cases, from our major automobile manufacturers on through other reorganizations, have grown in complexity for the bankruptcy judges to be involved in. The bill authorizes the creation of 13 new permanent bankruptcy judges, the conversion of 22 temporary judgeships to permanent judgeships, and the extension of two judgeships for another 5 years. The act will help bankruptcy courts in 25 different Federal judicial districts around this country. Bankruptcies had been steadily on the rise since October 2006. These events, bankruptcies rising and the financial crisis, combined with the continuing mortgage foreclosure crisis, consumer credit problems, and health care crises, have exacerbated this trend significantly and caused the bankruptcy courts much additional work. According to the Administrative Office of the United States Courts, bankruptcy filings increased by over 300,000 from fiscal year 2008 to fiscal year 2009. That is a 34.5 percent increase in 1 year. The previous year they had increased by 30.2 percent. And the Wall Street Journal recently reported another sharp increase in personal bankruptcy filings in 2009, up 32 percent from 2008. According to the Wall Street Journal, these increases were driven by high unemployment rates and the continuing housing crisis, both of which have affected not only those on the economic margins, but also a growing number of middle class families who desire to work but have had to turn to our Nation's bankruptcy system for help as a last resort. In addition to the growing numbers of bankruptcy cases, the cases have also grown more complex, particularly in business bankruptcies. As I mentioned earlier, in 2009 two of the big three, General Motors and Chrysler, two companies upon which tens of thousands of workers, thousands of dealers, hundreds of suppliers, and many communities across this Nation depended for their livelihoods, went through quick but nonetheless intense bankruptcy processes. Bankruptcy courts performed admirably but under strain. Outside the automobile industry, as I mentioned earlier, businesses such as Delta Airlines to Lehman Brothers to Circuit City have all turned to bankruptcy for relief in recent years, with the same kind of extraordinary burden imposed on the bankruptcy courts. While the workload for bankruptcy courts is increasing, judicial resources are in danger of decreasing. Many current bankruptcy judgeships are authorized on a temporary basis, and some are set to expire soon. A well-functioning bankruptcy system is absolutely essential to helping individuals and businesses weather our Nation's current economic difficulties. Having a sufficient number of bankruptcy judges is a key to making the system work, and has never been more important than today. H.R. 4506, the Bankruptcy Judgeship Act of 2010, addresses these needs by authorizing the creation of 13 new permanent bankruptcy judgeships and the conversion of 22 temporary judgeships to permanent judgeships. Additionally, it extends the temporary authorization for two judgeships for another 5 years. These new, converted, and extended bankruptcy judgeships reflect the recommendations of the Judicial Conference of the United States. Those recommendations in turn are the culmination of an extensive and careful survey and review process that thoroughly assessed the bankruptcy judgeship needs of every Federal judicial district in the country. In essence transparent, fair, methodical, rational. I note that a significant part of the conference's assessment of bankruptcy judges' workload depends on the use of case weights that were developed almost two decades ago, prior to the enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, which we still labor under. BAPCPA created numerous new motions that bankruptcy judges are now required to consider. If anything, the Judicial Conference recommendations may underestimate the need of the workload and the need of new bankruptcy judges. In short, the conference's recommendations, as reflected in the new bankruptcy judgeships authorized by H.R. 4506, may actually be too conservative. To pay for 13 new judgeships, the bill also raises the filing fees for chapter 7 and 13 cases by $1, and for chapter 11 cases, which are business bankruptcies, by $42. While I understand that filing fees are needed for the successful operation of the bankruptcy system, I believe they are already too high, particularly for consumer debtors seeking bankruptcy relief because they are in dire straits. In this one instance we ultimately determined that a fee increase was the only practical way to get the needed judgeships in a timely manner, which will allow for the efficient functioning of the bankruptcy system to the ultimate benefit of debtors. So in passing a bankruptcy system, we wanted to have funds to make it self-sufficient. To put the bankruptcy system of our country in bankruptcy while saving the bankruptcy system seemed like an oxymoron. {time} 1145 But I would urge in the future we rely on something other than bankruptcy filing fee increases to pay for new bankruptcy judgeships. The last time Congress addressed the issue of bankruptcy judgeships was 5 years ago when it authorized 28 temporary judgeships in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. Those temporary judgeships are now about to expire. Moreover, the last time Congress authorized new permanent bankruptcy judgeships was in 1992. It is well past the time that we address the critical issue of bankruptcy judgeships needs, and I am pleased that we are able to do so today. I thank the Judiciary Committee chairman, John Conyers, and Ranking Member Lamar Smith for being original cosponsors of this important legislation and our Judiciary Committee working in a bipartisan fashion to pass the bill. I also thank Trent Franks, the ranking member of the Judiciary Subcommittee on Commercial and Administration Law, for his support of this bill. I guess it wasn't an oxymoron but an inconsistency. [[Page 3039]] I urge my colleagues to support this important legislation. I reserve the balance of my time. Mr. POE of Texas. Mr. Speaker, I rise in support of this legislation, and I yield myself such time as I may consume. Mr. Speaker, additional permanent bankruptcy judgeships have not been authorized since 1992. The Judicial Conference has requested more judgeships several times and the House has passed legislation to add them; however, the Senate has not acted on these requests. Since Congress last authorized additional permanent judgeships, judicial workloads have increased substantially. The important bankruptcy reforms Congress passed in 2005, for example, called on judges to do more to prevent abuse. Congress compensated for some of the court's increasing burden in recent years by creating temporary bankruptcy judgeships. Many of those judgeships are near their expiration dates. The time has come for Congress to address bankruptcy judgeships needs on a permanent basis. Bankruptcy judges are essential to the bankruptcy process. They make certain that the process is fair and impartial to those who come before the bankruptcy courts. It is also their job to ensure that the bankruptcy courts effectively adjudicate parties' rights and responsibilities. This bill is based on a comprehensive study done by the Judicial Conference. The conference has assured us that its request comes only after taking steps to maximize all other alternatives to reduce judicial workloads. There are currently 352 bankruptcy judges, including 36 temporary judges. This legislation creates 13 new permanent bankruptcy judgeships and converts 22 of the existing temporary judgeships to permanent status. It also provides a 5-year extension for two temporary judgeships. Finally, this bill will not present any new cost for the taxpayers. The increased cost of these judgeships are paid by an increase in chapter 7, chapter 11, and chapter 13 bankruptcy filing fees. Those who do business in the courts will be paying the extra burdens, not the taxpayers. We need a bankruptcy system that has a sufficient number of judges to manage the system's caseload in a just, economical, and timely manner. This bill helps ensure that we have such a system. I urge my colleagues to adopt this legislation. Mr. Speaker, we have no other speakers, and I yield back the balance of my time. Mr. COHEN. Mr. Speaker, I appreciate the bipartisanship under which we have worked on this bill. I thank Mr. Poe and the minority ranking member, Mr. Smith, and Chairman Conyers and the staff who worked on this bill, and the Judicial Conference. I hope that we pass this bill. I call on Members to vote ``aye'' on H.R. 4506 and pass the bill. Mr. JOHNSON of Georgia. Mr. Speaker, I rise today to support H.R. 4506 an act to amend the federal judicial code to authorize the appointment of additional permanent bankruptcy judges in various states. This legislation was introduced by Representative Cohen, my colleague from Tennessee. As a member of the judiciary committee, I urge my colleagues to support this important legislation. As Chair of the Courts and Competition Policy subcommittee of the House Judiciary Committee, I have long championed the increase in federal judgeships across the United States. In this Congress, I introduced H.R. 3663, The Federal Judgeship Act of 2009, which would have done exactly this: increase the number of federal judges. The U.S. is also in need of more bankruptcy judges. According to Michael J. Melloy, Chair of the Judicial Conference Committee on the Administration of the Bankruptcy System, ``Additional judgeships are critical to ensure that the bankruptcy courts have sufficient judicial resources to effectively and efficiently adjudicate the rights and responsibilities of parties in bankruptcy cases and proceedings''. New bankruptcy judgeships have not been authorized by Congress since 1992, yet case filings have increased by 61 percent. The current recession has had an adverse effect on the Bankruptcy Court system. The courts are now faced with much more complex and time- consuming bankruptcy cases, not to mention an increase in volume of cases. This has led to more cases per judge than they are able to handle. It is therefore necessary that we act and authorize additional bankruptcy judges. In addition to authorizing new judges, H.R. 4506 would also convert certain temporary offices of bankruptcy judges to permanent offices, extend certain temporary offices of bankruptcy judges, reduce the amount of bankruptcy fees to be deposited as offsetting collections to the United States Trustee System Fund, and increase bankruptcy filing fees. All of this would lead to a better and more efficient bankruptcy judicial system. My state of Georgia has the third highest personal bankruptcy rate in the nation. According to the National Bankruptcy Research Center, Georgia's federal bankruptcy courts handled 66,925 filings during the first 11 months of 2009. This was 22 percent higher than the same period of 2008. This resolution will give the bankruptcy judicial system the resources necessary to review cases in a thorough yet timely manner, and turn the hectic bankruptcy process into a much more manageable one. I urge my colleagues to join me in support of this legislation, and vote in the affirmative for H.R. 4506, the Bankruptcy Judgeship Act of 2010. Mrs. NAPOLITANO. Mr. Speaker, H.R. 4506, the Bankruptcy Judgeship Act of 2010, will authorize the appointment of additional bankruptcy judges into the courts. Personal bankruptcy filings have increased by 32 percent in 2009 due to the recent economic downturn and skyrocketing unemployment and home foreclosure rates. This unprecedented rise has put an increased strain on the legal system to respond to bankruptcy claims. This is the first piece of legislation that addresses the judicial problems caused by the economic turmoil of the past two years. The U.S. Judicial Conference, whose membership includes the Chief Justice, provided the basis for this legislation which will create 13 new judgeships and make 22 currently temporary judgeships permanent. The bill will pay for these new appointments by increasing the cost for corporate bankruptcy. The passing of H.R. 4506 would relieve considerable strain on the nation's bankruptcy courts through matching the increased workload with an expanded judiciary. American law exists to encourage economic growth and facilitate new business. The ability for the law to respond effectively and fairly is paramount to the turnaround of the country's economy. Mr. COHEN. I yield back the balance of my time. The SPEAKER pro tempore. The question is on the motion offered by the gentleman from Tennessee (Mr. Cohen) that the House suspend the rules and pass the bill, H.R. 4506, as amended. The question was taken. The SPEAKER pro tempore. In the opinion of the Chair, two-thirds being in the affirmative, the ayes have it. Mr. COHEN. Mr. Speaker, on that, I demand the yeas and nays. The yeas and nays were ordered. The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the Chair's prior announcement, further proceedings on this motion will be postponed. ____________________