S 574 — PROTECT Asbestos Victims Act of 2021

Summary

Providing Responsible Oversight of Trusts to Ensure Compensation and Transparency for Asbestos Victims Act of 2021 or the PROTECT Asbestos Victims Act of 2021 This bill modifies several aspects of the asbestos bankruptcy trust system. An asbestos bankruptcy trust is established when a company subject to asbestos-related liability files for bankruptcy under chapter 11. The bill allows the U.S. Trustee Program within the Department of Justice to investigate the administration and operation of asbestos bankruptcy trusts. Additionally, it creates new criminal offenses for making a false representation to, or a false claim for payment by, an asbestos bankruptcy trust. Finally, an administrator of an asbestos bankruptcy trusts must report any Medicare benefits entitled to a claimant to the Centers for Medicare & Medicaid Services.

Bill Text

• Introduced Introduced in Senate Current html March 03, 2021

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill modifies existing laws regarding the appointment of future claims representatives and the authority of United States trustees in relation to investigations of fraudulent claims against certain trusts.

• 11 U.S.C. § 524

  the court appoints a legal representative → the United States trustee or bankruptcy administrator appoints, under paragraph (10), a future claims representative

  Changes the entity responsible for appointing future claims representatives from the court to the United States trustee or bankruptcy administrator.

• 11 U.S.C. § 524

  (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 2021.

  Grants the United States trustee the authority to investigate certain trusts, overriding existing legal limitations.

• 11 U.S.C. § 524

  (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.

  Mandates trusts to provide information related to payments and demands upon request in legal actions concerning asbestos liability.

• 11 U.S.C. § 524

  (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.

  Establishes a formal procedure for the appointment of future claims representatives by the United States trustee or bankruptcy administrator.

• 11 U.S.C. § 524

  (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).

  Affirms the court's power to issue orders to enforce trust provisions and prevent abuse in related processes.

• 11 U.S.C. § 524

  (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.).

  Requires trust administrators to assess Medicare eligibility for claimants within a specified timeframe after claim submission.

• 11 U.S.C. § 330

  a future claims representative appointed under section 524(g)(10)(A),

  Includes future claims representatives in the list of roles eligible for compensation under the relevant chapter.

• 28 U.S.C. § 586

  (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 2021--(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.

  Authorizes the United States trustee to investigate specific trusts, expanding oversight capabilities.

Action History

1. March 03, 2021

   Introduced in Senate

2. March 03, 2021

   Read twice and referred to the Committee on the Judiciary.

Sponsors

• Thomas Tillis · Primary

Subjects