S.Amdt. 1345
What it does: Adds SEC. 9. AUTOMOBILE DEALER ECONOMIC RIGHTS RESTORATION on page 26, line 20
Sen. Chuck Grassley (R-IA)What it changes
1 change to S. 1023
Adds SEC. 9. AUTOMOBILE DEALER ECONOMIC RIGHTS RESTORATION on page 26, line 20
Adds a sectionPrinted pageInserted: SEC. 9. AUTOMOBILE DEALER ECONOMIC RIGHTS RESTORATION.
Inserted: (a) Findings.--Congress finds the following:
Inserted: (1) Automobile dealers are an asset to automobile manufacturers that make it possible to serve communities and sell automobiles nationally.
Inserted: (2) Forcing the closure of automobile dealers would have an especially devastating economic impact in rural communities, where dealers play an integral role in the community, provide essential services, and serve as a critical economic engine.
Inserted: (3) The automobile manufacturers obtain the benefits from having a national dealer network at no material cost to the manufacturers.
Inserted: (4) Historically, automobile dealers have had franchise agreement protections under State law.
Inserted: (b) Restoration of Economic Rights.--
Inserted: (1) In general.--In order to protect assets of the Federal Government and better assure the viability of automobile manufacturers in which the Federal Government has an ownership interest, or to which it is a lender, an automobile manufacturer in which the Federal Government has an ownership interest, or which receives loans from the Federal Government, may not deprive an automobile dealer of its economic rights and shall honor those rights as they existed, for Chrysler LLC dealers, prior to the commencement of the bankruptcy case by Chrysler LLC on April 30, 2009, and for General Motors Corp. dealers, prior to the commencement of the bankruptcy case by General Motors Corp. on June 1, 2009, including the dealer's rights to recourse under State law.
Inserted: (2) Restoration of franchise agreements.--In order to preserve economic rights pursuant to paragraph (1), at the request of an automobile dealer, an automobile manufacturer covered under this section shall restore the franchise agreement between that automobile dealer and Chrysler LLC or General Motors Corp. that was in effect prior to the commencement of their respective bankruptcy cases and take assignment of such agreements.
Inserted: (3) Construction.--Except as set forth herein, nothing in this section shall be construed to make null and void--
Inserted: (A) the court approved transfer of substantially all the assets of Chrysler LLC to New CarCo Acquisition LLC; or
Inserted: (B) a transfer of substantially all the assets of General Motors Corp. that could be approved by a court after June 8, 2009.
Original wording
On page 26, after line 20, add the following:
Read automatically from the Congressional Record. Check the original before relying on it.
As printed
SA 1345. Mr. GRASSLEY submitted an amendment intended to be proposed by him to the bill S. 1023, to establish a non-profit corporation to communicate United States entry policies and otherwise promote leisure, business, and scholarly travel to the United States; which was ordered to lie on the table; as follows:
On page 26, after line 20, add the following:
SEC. 9. AUTOMOBILE DEALER ECONOMIC RIGHTS RESTORATION.
(a) Findings.--Congress finds the following:
(1) Automobile dealers are an asset to automobile manufacturers that make it possible to serve communities and sell automobiles nationally.
(2) Forcing the closure of automobile dealers would have an especially devastating economic impact in rural communities, where dealers play an integral role in the community, provide essential services, and serve as a critical economic engine.
(3) The automobile manufacturers obtain the benefits from having a national dealer network at no material cost to the manufacturers.
(4) Historically, automobile dealers have had franchise agreement protections under State law.
(b) Restoration of Economic Rights.--
(1) In general.--In order to protect assets of the Federal Government and better assure the viability of automobile manufacturers in which the Federal Government has an ownership interest, or to which it is a lender, an automobile manufacturer in which the Federal Government has an ownership interest, or which receives loans from the Federal Government, may not deprive an automobile dealer of its economic rights and shall honor those rights as they existed, for Chrysler LLC dealers, prior to the commencement of the bankruptcy case by Chrysler LLC on April 30, 2009, and for General Motors Corp. dealers, prior to the commencement of the bankruptcy case by General Motors Corp. on June 1, 2009, including the dealer's rights to recourse under State law.
(2) Restoration of franchise agreements.--In order to preserve economic rights pursuant to paragraph (1), at the request of an automobile dealer, an automobile manufacturer covered under this section shall restore the franchise agreement between that automobile dealer and Chrysler LLC or General Motors Corp. that was in effect prior to the commencement of their respective bankruptcy cases and take assignment of such agreements.
(3) Construction.--Except as set forth herein, nothing in this section shall be construed to make null and void--
(A) the court approved transfer of substantially all the assets of Chrysler LLC to New CarCo Acquisition LLC; or
(B) a transfer of substantially all the assets of General Motors Corp. that could be approved by a court after June 8, 2009.
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Senate amendment submitted
June 18, 2009