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June 1998

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Senate Bankruptcy Bill Would Require Travel Reports


S. 1301, the Consumer Bankruptcy Reform Act of 1998, a bill which substantially amends the bankruptcy statute, and also adds bankruptcy judgeships, was approved by the Senate Judiciary Committee just before Congress recessed for its Memorial Day district work period. Action on S. 1301 may occur in the Senate before the end of July, after Congress returns from the Independence Day Holiday period. The House Judiciary Committee approved its version of the bankruptcy reform legislation, H.R. 3150, and the full House passed the bill in the second week of June. This bill does not contain bankruptcy judgeships.

The Judicial Conference has asked Congress to create seven permanent bankruptcy judgeships and 11 temporary bankruptcy judgeships, convert two existing temporary bankruptcy judgeships to permanent positions, and extend the terms of three other existing temporary judgeships. A House bill, H.R. 1596 (the Bankruptcy Judgeship Act of 1997), which passed in the first session of the 105th Congress, would authorize seven new permanent bankruptcy judgeships and 11 temporary judgeships, and would extend a temporary judgeship in the District of Delaware for five years. S. 1301 creates 18 temporary bankruptcy judgeships and extends the terms of five existing temporary bankruptcy judgeships. Upon Senate passage of S. 1301, differences between the House and Senate bills would be resolved in conference.

When the Judiciary Committee considered S. 1301, an amendment creating the new bankruptcy judgeships was offered by subcommittee chair Senator Charles E. Grassley (R-IA) that included a provision on judges' travel. Previously, Grassley had asked the General Accounting Office to study the basis upon which the Conference makes its requests for Article III judgeships and bankruptcy judgeships. He also has questioned the amount and type of travel by judges. The Grassley amendment to S. 1301, as adopted in committee markup, requires all bankruptcy judges to report all non-case related compensated travel, whether official or not, to the chief bankruptcy judge of the district. The reports would include the name of the judge, the cost, subject and purpose of the travel, and the number of days involved, and would be forwarded to the Administrative Office annually. The AO, in turn, would be required to compile a national report to be sent to Congress. Members of Congress already prepare a similar report on their travel.

Bankruptcy cases filed in the U.S. now number nearly 1.42 million annually. The number of bankruptcy cases has risen steadily over the last eight 12-month periods, and the increases underline the acute need for new bankruptcy judgeships. New bankruptcy judgeships were last created in 1992.