[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 766 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
1st Session
S. 766
To amend title 11, United States Code, to promote the investigation of
fraudulent claims against certain trusts, to amend title 18, United
States Code, to provide penalties against fraudulent claims against
certain trusts, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 13, 2019
Mr. Tillis (for himself, Mr. Grassley, Mr. Cornyn, and Mr. Crapo)
introduced the following bill; which was read twice and referred to the
Committee on the Judiciary
_______________________________________________________________________
A BILL
To amend title 11, United States Code, to promote the investigation of
fraudulent claims against certain trusts, to amend title 18, United
States Code, to provide penalties against fraudulent claims against
certain trusts, 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 ``Providing Responsible Oversight of
Trusts to Ensure Compensation and Transparency for Asbestos Victims Act
of 2019'' or the ``PROTECT Asbestos Victims Act of 2019''.
SEC. 2. REDUCTION OF FRAUDULENT CLAIMS AND DEMANDS RELATING TO CERTAIN
TRUSTS.
(a) In General.--Section 524(g) of title 11, United States Code, is
amended--
(1) in paragraph (4)(B)(i), by striking ``the court
appoints a legal representative'' and inserting ``the United
States trustee or bankruptcy administrator appoints, under
paragraph (10), a future claims representative''; and
(2) by adding at the end the following:
``(8) Investigation of fraudulent claims and demands.--
``(A) In general.--Notwithstanding section
302(d)(3) of the Bankruptcy Judges, United States
Trustees, and Family Farmer Bankruptcy Act of 1986 (28
U.S.C. 581 note), rule 9035 of the Federal Rules of
Bankruptcy Procedure, or any other provision of law, in
any judicial district of the United States, the United
States trustee may investigate the administration and
operation of a trust described in paragraph (2)(B)(i),
including a trust described in paragraph (2)(B)(i) that
was created before the date of enactment of the PROTECT
Asbestos Victims Act of 2019.
``(B) Authority of the united states trustee.--In
conducting an investigation under subparagraph (A), the
United States trustee shall have the authority--
``(i) to conduct discovery, including by
any means of discovery available to a trustee
in an action under chapter 5 of title 11,
relating to the trust, a claimant of the trust,
or a claim against the trust, including a claim
filed by a claimant against the trust in a
bankruptcy court or other forum,
notwithstanding the effect of any order
purporting to limit the access of the United
States trustee to any information relating to
that discovery;
``(ii) to conduct an audit or contract for
an audit of any claim or demand paid, or to be
paid, in whole or in part by the trust;
``(iii) if the United States trustee has
reasonable grounds to believe that a false
claim or demand to be paid in whole or in part
by a trust was made, to refer the matter to the
United States attorney for the relevant
judicial district, and, on the request of the
United States attorney, assist the United
States attorney in carrying out a prosecution
based on that false claim or demand; and
``(iv) to request that the court exercise
any authority and impose remedies available to
it, including those--
``(I) under the terms of the plan
of reorganization to prevent abuse or
mismanagement of the trust; and
``(II) under section 105.
``(C) Standing.--In carrying out this paragraph,
the United States trustee shall have standing to raise,
to appear, and to be heard on any matter for which the
court has jurisdiction or for which the court has
reserved jurisdiction under the terms of the plan of
reorganization.
``(9) Accessing trust information.--
``(A) In general.--Subject to section 107 and any
appropriate protective order, a trust described in
paragraph (2)(B)(i) shall, on written request, provide,
in a timely manner, any information relating to any
payment from, and any demand for payment from, the
trust to a party to an action at law or equity if the
action relates to liability for asbestos exposure.
``(B) Costs.--A trust described in paragraph
(2)(B)(i) may require, from the person making a request
under subparagraph (A), payment of any reasonable cost
incurred to comply with the requirements under
subparagraph (A).
``(10) Appointment of future claims representatives.--
``(A) In general.--On notification by a plan
proponent of the intention of the plan proponent to
seek an injunction under this subsection, the United
States trustee or bankruptcy administrator, after
consultation with parties in interest, shall appoint,
subject to the approval of the court, a disinterested
individual to serve as the future claims
representative.
``(B) Support.--
``(i) In general.--The future claims
representative, subject to the approval of the
court, may employ 1 or more attorneys,
accountants, or other professional persons to
represent the future claims representative or
assist the future claims representative in
carrying out the duties of the future claims
representative under this subsection.
``(ii) Qualifications.--An attorney,
accountant, or other professional person
employed under clause (i) to represent or
assist the future claims representative--
``(I) shall be a disinterested
person; and
``(II) may not represent any other
entity having an adverse interest in
connection with the case.
``(11) Power of the court.--Notwithstanding any other
provision of law, including paragraph (1)(B), sections 1127,
1141, and 1144 of this title, and section 157 of title 28, the
court may issue any order, process, or judgment that is
necessary and appropriate--
``(A) to carry out the provisions of paragraphs (8)
and (9); or
``(B) to enforce or implement a court order or
prevent an abuse of process relating to a trust
described in paragraph (2)(B)(i).
``(12) Benefits under medicare.--
``(A) Potential eligible claimants.--Not later than
60 days after a claim is submitted to a trust described
in paragraph (2)(B)(i), the administrator of the trust
shall determine whether the claimant is entitled to
benefits under the Medicare program under title XVIII
of the Social Security Act (42 U.S.C. 1395 et seq.).
``(B) Required information.--If a claimant is
determined to be entitled to benefits under
subparagraph (A), the administrator of the trust shall
submit to the Secretary of Health and Human Services,
in the form and manner (including frequency) specified
by the Secretary of Health and Human Services, the
information described in section 1862(b)(8)(B) of
Social Security Act (42 U.S.C. 1395y(b)(8)(B)).''.
(b) Compensation.--Section 330(a)(1) of title 11, United States
Code, is amended--
(1) by inserting ``a future claims representative appointed
under section 524(g)(10)(A),'' after ``section 333,''; and
(2) by inserting ``, 524(g)(10)(B),'' after ``section
327''.
(c) Reopening Cases.--Section 350 of title 11, United States Code,
is amended by adding at the end the following:
``(c) Investigations by United States Trustee.--On the request of
the United States trustee, a case shall be reopened in the court in
which that case was closed in order to enable the United States trustee
to conduct an investigation under section 524(g)(8).''.
SEC. 3. CRIMINAL PENALTIES.
Section 152 of title 18, United States Code, is amended--
(1) in paragraph (8), by striking ``or'' after the
semicolon;
(2) by striking the comma at the end of paragraph (9) and
inserting a semicolon; and
(3) by inserting after paragraph (9) the following:
``(10) knowingly and fraudulently makes a false
representation to a trust described in section 524(g)(2)(B)(i)
of title 11, or any official of a trust described in that
section, in relation to an investigation conducted under
section 524(g)(8)(A) of that title; or
``(11) knowingly and fraudulently makes a false claim or
demand to be paid in whole or in part by a trust described in
section 524(g)(2)(B)(i) of title 11,''.
SEC. 4. AUTHORITY OF UNITED STATES TRUSTEE.
Section 586 of title 28, United States Code, is amended by adding
at the end the following:
``(g) Investigation of Fraudulent Claims and Demands.--
``(1) In general.--The United States trustee may
investigate the administration and operation of a trust,
including a trust that was created before the date of enactment
of the PROTECT Asbestos Victims Act of 2019--
``(A) described in section 524(g)(2)(B)(i) of title
11; or
``(B) established under section 105(a) of title 11
for the purpose of assuming the asbestos-related
liabilities of a debtor.
``(2) Authority of the united states trustee.--In
conducting an investigation under subparagraph (A), the United
States trustee shall have the authority--
``(A) to conduct discovery, including by any means
of discovery available to a trustee in an action under
chapter 5 of title 11, relating to the trust, a
claimant of the trust, or a claim against the trust,
including a claim filed by a claimant against the trust
in a bankruptcy court or other forum, notwithstanding
the effect of any order purporting to limit the access
of the United States trustee to any information
relating to that discovery;
``(B) to conduct an audit or contract for an audit
of any claim or demand paid, or to be paid, in whole or
in part by the trust;
``(C) if the United States trustee has reasonable
grounds to believe that a false claim or demand to be
paid in whole or in part by a trust was made, to refer
the matter to the United States attorney for the
relevant judicial district, and, on the request of the
United States attorney, assist the United States
attorney in carrying out a prosecution based on that
false claim or demand; and
``(D) to request that the court exercise any
authority and impose remedies available to it,
including those--
``(i) under the terms of the plan of
reorganization to prevent abuse or
mismanagement of the trust; and
``(ii) under section 105.
``(3) Standing.--In carrying out this subsection, the
United States trustee shall have standing to raise, to appear,
and to be heard on any matter for which the court has
jurisdiction or for which the court has reserved jurisdiction
under the terms of the plan of reorganization.
``(4) Judicial districts established for alabama and north
carolina.--Notwithstanding section 302(d)(3) of the Bankruptcy
Judges, United States Trustees, and Family Farmer Bankruptcy
Act of 1986 (28 U.S.C. 581 note), rule 9035 of the Federal
Rules of Bankruptcy Procedure, or any other provision of law,
the United States trustee for the appropriate region described
in section 581(a) shall have the authority to carry out this
subsection with respect to a trust described in paragraph (1)
in a case that is filed in a judicial district established for
the State of Alabama or North Carolina.''.
<all>
PROTECT Asbestos Victims Act of 2019
#766 | S Congress #116
Policy Area: Finance and Financial Sector
Last Action: Read twice and referred to the Committee on the Judiciary. (3/13/2019)
Bill Text Source: Congress.gov
Summary and Impacts
Original Text