[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2004 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 2004
To permanently reenact chapter 12 of title 11, United States Code, and
for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 9, 2003
Mr. Grassley (for himself and Mr. Feingold) introduced the following
bill; which was read twice and referred to the Committee on the
Judiciary
_______________________________________________________________________
A BILL
To permanently reenact chapter 12 of title 11, United States Code, and
for other purposes.
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 ``Protection of Family Farmers and
Family Fisherman 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 Emergency Supplemental Appropriations Act,
1999 (Public 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, as amended by
section 226, is amended by inserting ``101(18),'' after ``101(3),''
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 governmental
unit that arises as a result of the sale, transfer,
exchange, or other disposition of any farm asset used
in the debtor's farming operation, in which case the
claim shall be treated as an unsecured claim that is
not entitled to priority under section 507, but the
debt shall be treated in such manner only if the debtor
receives a discharge; or
``(B) the holder of a particular claim agrees to a
different treatment of that claim;''.
(b) Special Notice Provisions.--Section 1231(b) of title 11, United
States Code, as so designated by section 719, is amended by striking
``a State or local governmental unit'' and inserting ``any governmental
unit''.
(c) Effective Date; Application of Amendments.--This section and
the amendments made by this section 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.
SEC. 5. DEFINITION OF FAMILY FARMER.
Section 101(18) of title 11, United States Code, is amended--
(1) in subparagraph (A)--
(A) by striking ``$1,500,000'' and inserting
``$3,237,000''; and
(B) by striking ``80'' and inserting ``50''; and
(2) in subparagraph (B)(ii)--
(A) by striking ``$1,500,000'' and inserting
``$3,237,000''; and
(B) by striking ``80'' and inserting ``50''.
SEC. 6. ELIMINATION OF REQUIREMENT THAT FAMILY FARMER AND SPOUSE
RECEIVE OVER 50 PERCENT OF INCOME FROM FARMING OPERATION
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 distribution is due under the plan is not less than
the debtor's projected disposable income for such period.''.
(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 increase the amount of
payments to unsecured creditors required for a particular month
so that the aggregate of such payments exceeds the debtor's
disposable income for such month; or
``(3) in the last year of the plan by anyone except 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 following:
``(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 species; or
``(B) for purposes of section 109 and chapter 12,
aquaculture activities consisting of raising for market
any species or product described in subparagraph (A);
``(7B) `commercial fishing vessel' means a vessel used by a
family fisherman to carry out a commercial fishing
operation;''; and
(2) by inserting after paragraph (19) the following:
``(19A) `family fisherman' means--
``(A) an individual or individual and spouse
engaged in a commercial fishing operation--
``(i) whose aggregate debts do not exceed
$1,500,000 and not less than 80 percent of
whose aggregate noncontingent, liquidated 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 operation), 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 commercial
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 exceed
$1,500,000 and not less than 80 percent of its
aggregate noncontingent, liquidated debts
(excluding a debt for 1 dwelling which is owned
by such corporation or partnership and which a
shareholder 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 income 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 family 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 commercial 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 property used to carry out a
commercial fishing operation (including a commercial fishing
vessel)''.
(d) Clerical Amendment.--In the table of chapters 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 1201''.
Fisherman with Regular Annual
Income.
(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.).
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