IB
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 Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Private Trustee Re-
form Act of 1997’’.
SEC. 2. PRIVATE TRUSTEES.
(a) COMPENSATION OF OFFICERS.—Section 330 of
title 11, United States Code, is amended by adding at the
end the following:
‘‘(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—
‘‘(1) whether the expense will benefit the ad-
ministration of cases by the trustee; and
‘‘(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.’’.
(b) REMOVAL OF TRUSTEE OR EXAMINER.—Section
324 of title 11, United States Code, is amended by adding
at the end the following:
‘‘(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 sec-
tion 586(a) or (b) of title 28, the trustee, after an oppor-
tunity 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 fail-
ure of the United States trustee to make a final adminis-
trative 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 administra-
tive remedies for purposes of this subsection.
‘‘(2) Notwithstanding any other provision of law, and
pending the exhaustion of available administrative rem-
edies or a judicial determination on the merits, the court
may order injunctive relief in favor of the trustee.’’.
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 as-
signed to cases filed under title 11 may obtain judicial re-
view 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 ex-
hausting all available administrative remedies, which if the
trustee so elects, shall also include an administrative hear-
ing on the record. Unless the trustee elects to have an ad-
ministrative 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 pre-
scribe 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 ac-
tion 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 re-
sides.
‘‘(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 amend-
ed—
(1) by redesignating subsections (d) and (e) as
subsections (e) and (f), respectively, and
(2) by inserting after subsection (c) the follow-
ing:
‘‘(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 dis-
trict: Provided, however, That in any district where fewer
than 3 bankruptcy judges have been appointed under sec-
tion 152(a) of this title, a referral shall only be made to
a United States magistrate judge in the district. Any bank-
ruptcy judge or magistrate judge to whom a case is referred
shall submit a recommendation for disposition to the dis-
trict 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 agen-
cy.’’.
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 Commit-
tee of the Whole House on the State of the Union, and
ordered to be printed