S.Amdt. 1897

SA 1897. Mr. GRASSLEY submitted an amendment intended to be proposed
to amendment SA 1813 submitted by Mr. Dorgan to the bill H.R. 3183,
making appropriations for energy and water develpment and related
agencies for the fiscal year ending September 30, 2010, and for other
purposes; which was ordered to lie on the table; as follows:

On page 68, after line 16, add the following:

SEC. 503. 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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