[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2592 Reported in House (RH)]






                                                 Union Calendar No. 370
105th CONGRESS
  2d Session
                                H. R. 2592

                          [Report No. 105-663]

To amend title 11 of the United States Code to provide private trustees 
  the right to seek judicial review of United States trustee actions 
            related to trustee expenses and trustee removal.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 1, 1997

    Mr. Goodlatte (for himself, Mr. Smith of Texas, and Mr. Barr of 
   Georgia) introduced the following bill; which was referred to the 
                       Committee on the Judiciary

                             July 31, 1998

Additional sponsors: Mr. Parker, Mr. Nethercutt, Mr. Pickering, and Mr. 
                                 Wicker

                             July 31, 1998

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
To amend title 11 of the United States Code to provide private trustees 
  the right to seek judicial review of United States trustee actions 
            related to trustee expenses and trustee removal.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Private Trustee Reform Act 
of 1997''.</DELETED>

<DELETED>SEC. 2. PRIVATE TRUSTEES.</DELETED>

<DELETED>    (a) Compensation of Officers.--Section 330 of title 11, 
United States Code, is amended by adding at the end the 
following:</DELETED>
<DELETED>    ``(e) Upon the motion of a trustee appointed under section 
586(b) of title 28, and after an opportunity for an administrative 
hearing on the record, the court shall have the authority, 
notwithstanding section 326(b) of this title, to determine the actual, 
necessary expenses of such trustee. In determining actual, necessary 
expenses, the court shall consider all relevant factors, including--
</DELETED>
        <DELETED>    ``(1) whether the expense will benefit the 
        administration of cases by the trustee; and</DELETED>
        <DELETED>    ``(2) whether the expense is reasonable, based 
        upon the customary and usual expenses incurred by fiduciaries 
        providing services of comparable nature in matters other than 
        cases under this title.''.</DELETED>
<DELETED>    (b) Removal of Trustee or Examiner.--Section 324 of title 
11, United States Code, is amended by adding at the end the 
following:</DELETED>
<DELETED>    ``(c)(1) Notwithstanding any provision of section 586 of 
title 28, in the event the United States trustee decides to cease 
assigning cases to a trustee appointed under section 586(a) or (b) of 
title 28, the trustee, after an opportunity for an administrative 
hearing on the record, may seek judicial review of such decision. Upon 
review, the court may reverse the decision only if the United States 
trustee has acted unreasonably or without cause. The failure of the 
United States trustee to make a final administrative disposition of a 
trustee's request to reconsider the decision to cease assigning cases 
within thirty days of such request shall be deemed an exhaustion of all 
administrative remedies for purposes of this subsection.</DELETED>
<DELETED>    ``(2) Notwithstanding any other provision of law, and 
pending the exhaustion of available administrative remedies or a 
judicial determination on the merits, the court may order injunctive 
relief in favor of the trustee.''.</DELETED>

SECTION 1. SUSPENSION AND TERMINATION OF PANEL TRUSTEES AND STANDING 
              TRUSTEES.

    Section 586(d) of title 28, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(d)'', and
            (2) by adding at the end the following:
    ``(2) A trustee whose appointment to the panel or as a standing 
trustee is terminated or who ceases to be assigned to cases filed under 
title 11 may obtain judicial review of the final agency decision by 
commencing an action in the United States district court for the 
district in which the panel member or standing trustee resides, after 
first exhausting all available administrative remedies, which if the 
trustee so elects, shall also include an administrative hearing on the 
record. Unless the trustee elects to have an administrative hearing on 
the record, the trustee shall be deemed to have exhausted all 
administrative remedies for purposes of this section if the agency 
fails to make a final agency decision within 90 days after the trustee 
requests administrative remedies. The Attorney General shall prescribe 
procedures to implement this paragraph.''.

SEC. 2. EXPENSES OF STANDING TRUSTEES.

    Section 586(e) of title 28, United States Code, is amended by 
adding at the end the following:
    ``(3) After first exhausting all available administrative remedies, 
an individual appointed under subsection (b) of this section may obtain 
judicial review of final agency action to deny a claim of actual, 
necessary expenses under this paragraph by commencing an action in the 
United States district court in the district where the individual 
resides.
    ``(4) The Attorney General shall prescribe procedures to implement 
this subsection.''.

SEC. 3. PROCEDURES FOR AND STANDARD OF REVIEW.

    Section 157 of title 28, United States Code, is amended--
            (1) by redesignating subsections (d) and (e) as subsections 
        (e) and (f), respectively, and
            (2) by inserting after subsection (c) the following:
    ``(d) In conducting judicial review under section 586(d)(2) or 
section 586(e)(3) of this title, the district court shall determine 
whether to retain the case or to refer the case to a bankruptcy judge 
or magistrate judge in the district: Provided, however, That in any 
district where fewer than 3 bankruptcy judges have been appointed under 
section 152(a) of this title, a referral shall only be made to a United 
States magistrate judge in the district. Any bankruptcy judge or 
magistrate judge to whom a case is referred shall submit a 
recommendation for disposition to the district court based solely on a 
review of the administrative record before the agency, and a final 
order or judgment shall be entered by the district court after 
considering the bankruptcy judge's or magistrate judge's 
recommendation, and after reviewing those matters to which any party 
has timely and specifically objected. The decision of the agency shall 
be affirmed unless it is unreasonable and without cause based upon the 
administrative record before the agency.''.
                                     





                                                 Union Calendar No. 370

105th CONGRESS

  2d Session

                               H. R. 2592

                          [Report No. 105-663]

_______________________________________________________________________

                                 A BILL

To amend title 11 of the United States Code to provide private trustees 
  the right to seek judicial review of United States trustee actions 
            related to trustee expenses and trustee removal.

_______________________________________________________________________

                             July 31, 1998

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed