H.R. 2592 Private Trustee Reform Act of 1997

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. THIS SEARCH THIS DOCUMENT GO TO Next Hit Forward New Bills Search Prev Hit Back HomePage Hit List Best Sections Help Contents Display

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Private Trustee Reform Act of 1997 (Introduced in House)

HR 2592 IH

105th CONGRESS

1st Session

H. R. 2592
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

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,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Private Trustee Reform 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 administration 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 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.

`(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.'.

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Wednesday, October 1, 1997