II
Calendar No. 121
110th CONGRESS
2d Session
S. 3688
IN THE SENATE OF THE UNITED STATES
November 17 (legislative day, September 17), 2008
Mr. Reid introduced the following bill; which was read the first time
November 18, 2008
Read the second time and placed on the calendar under authority of the order of the Senate of November 17 (legislative day, September 17), 2008
A BILL
To provide for additional emergency unemployment compensation, to amend the Emergency Economic Stabilization Act of 2008 to authorize loans to automobile manufacturers and component suppliers, and for other purposes.
Unemployment Compensation
Short title
This title may be cited
as the Unemployment Compensation
Extension Act of 2008
.
Additional first-tier benefits
Section 4002(b)(1) of the Supplemental Appropriations Act, 2008 (26 U.S.C. 3304 note) is amended—
in subparagraph
(A), by striking 50
and inserting 80
; and
in subparagraph
(B), by striking 13
and inserting 20
.
Second-tier benefits
Section 4002 of the Supplemental Appropriations Act, 2008 (26 U.S.C. 3304 note) is amended by adding at the end the following:
Special rule
In general
If, at the time that the amount established in an individual’s account under subsection (b)(1) is exhausted or at any time thereafter, such individual’s State is in an extended benefit period (as determined under paragraph (2)), such account shall be augmented by an amount equal to the lesser of—
50 percent of the total amount of regular compensation (including dependents’ allowances) payable to the individual during the individual’s benefit year under the State law, or
13 times the individual’s average weekly benefit amount (as determined under subsection (b)(2)) for the benefit year.
Extended benefit period
For purposes of paragraph (1), a State shall be considered to be in an extended benefit period, as of any given time, if—
such a period is then in effect for such State under the Federal-State Extended Unemployment Compensation Act of 1970;
such a period would then be in effect for such State under such Act if section 203(d) of such Act—
were applied by
substituting 4
for 5
each place it appears;
and
did not include the requirement under paragraph (1)(A) thereof; or
such a period would then be in effect for such State under such Act if—
section 203(f) of such Act were applied to such State (regardless of whether the State by law had provided for such application); and
such section 203(f)—
were applied by
substituting 6.0
for 6.5
in paragraph (1)(A)(i)
thereof; and
did not include the requirement under paragraph (1)(A)(ii) thereof.
Limitation
The account of an individual may be augmented not more than once under this subsection.
.
Phaseout provisions
Section 4007(b) of the Supplemental Appropriations Act, 2008 (26 U.S.C. 3304 note) is amended—
in
paragraph (1), by striking paragraph (2),
and inserting
paragraphs (2) and (3),
; and
by striking paragraph (2) and inserting the following:
No augmentation after March 31, 2009
If the amount established in an individual’s account under subsection (b)(1) is exhausted after March 31, 2009, then section 4002(c) shall not apply and such account shall not be augmented under such section, regardless of whether such individual’s State is in an extended benefit period (as determined under paragraph (2) of such section).
Termination
No compensation under this title shall be payable for any week beginning after August 27, 2009.
.
Temporary Federal matching for the first week of extended benefits for States with no waiting week
With respect to weeks of unemployment beginning after the date of the enactment of this Act and ending on or before December 8, 2009, subparagraph (B) of section 204(a)(2) of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) shall not apply.
Effective date
In general
The amendments made by sections 102, 103, and 104 shall apply as if included in the enactment of the Supplemental Appropriations Act, 2008, subject to subsection (b).
Additional benefits
In applying the amendments made by sections 102 and 103, any additional emergency unemployment compensation made payable by such amendments (which would not otherwise have been payable if such amendments had not been enacted) shall be payable only with respect to any week of unemployment beginning on or after the date of the enactment of this Act.
Automobile Industry Emergency Assistance
Direct bridge loans to manufacturers and suppliers
In general
The Emergency Economic Stabilization Act of 2008 (division A of Public Law 110–343) is amended by adding at the end the following:
Direct bridge loan provisions
Findings
Congress finds that extraordinary and exigent circumstances have prevented the automobile industry from securing essential credit and liquidity from other sources and that the failure of the automobile industry to obtain such credit and liquidity will have a systemic adverse effect on the economy.
Purposes
The purposes of this title are—
to clarify that authority and facilities are available to be used immediately by the Secretary to restore liquidity and stability to the automobile industry in the United States;
to ensure that such authority and such facilities are used in a manner that—
stimulates manufacturing and sales of automobiles produced by automobile manufacturers in the United States;
enhances the ability and the capacity of the domestic automobile industry to pursue the timely and aggressive production of energy-efficient advanced technology vehicles;
preserves and promotes the jobs of 355,000 workers in the United States directly employed by the automobile industry and an additional 4,500,000 workers in the United States employed in related industries; and
safeguards the ability of the domestic automobile industry to provide retirement and health care benefits for 1,000,000 retirees and their spouses and dependents; and
to reaffirm the purposes of section 2, which include providing the Secretary with broad authority to restore liquidity and stability to financial institutions, including automobile finance companies.
Emergency direct loan program
In general
The Secretary shall make loans in an aggregate amount equal to $25,000,000,000, to automobile manufacturers and component suppliers that have—
submitted an application for a loan under this title that includes a statement of need for Government funding under this title to prevent a systemic adverse effect on the United States economy;
operated a manufacturing facility for the purposes of producing automobiles or automobile components in the United States throughout the 20-year period ending on the date of enactment of this title; and
operations in the United States the failure of which would have a systemic adverse effect on the overall United States economy, as determined by the Secretary.
Allocation
In allocating loan amounts under this title, the Secretary shall prioritize the distribution of loans under this section based on the magnitude of the impact of the manufacturing operations of the applicant in the United States on the overall economy of the United States and other segments of the automobile industry, including the impact on levels of employment, domestic manufacturing of automobiles and automobile components, and automobile dealerships.
Plan for long-term financial viability
At the time of application for a loan under this title, an automobile manufacturer or component supplier shall submit to the Secretary a detailed plan on how the Government funds requested will be utilized to ensure the long-term financial posture of the company, and how such funds will stimulate automobile production in the United States and improve the capacity of the company to pursue the timely and aggressive production of energy-efficient advanced technology vehicles.
Funding from third tranche; treatment of loan amounts
The costs incurred by the Federal Government in making loans under this title, including credit subsidy costs and administrative expenses, shall be covered out of the funds made available to the Secretary generally under section 118 and, specifically, not from funds which are described in paragraph (1) or (2) of section 115(a), but with respect to the availability of which the reporting and procedural requirements contained in paragraph (3) of such section and section 115(c) shall not apply.
Timing of disbursements
Applications
On and after the date that is 3 days after the date of enactment of this title, the Secretary shall accept applications for loans under this title.
Determination of eligibility
Not later than 15 days after the date on which the Secretary receives an application for a loan under subsection (a), the Secretary shall make a determination regarding the eligibility of the applicant, based on whether the applicant meets the requirements of section 403(a).
Disbursement
The Secretary shall begin disbursement of the proceeds of a loan under this title to an eligible applicant not later than 7 days after the date on which the Secretary receives a disbursal request from the applicant, upon a determination of the Secretary that the applicant is eligible under subsection (b).
Terms and conditions
Term to maturity
The term to maturity of any loan made under this title shall be 10 years, or such longer period as the Secretary may determine with respect to such loan.
Rate of interest
The annual rate of interest for a loan under this title shall be—
5 percent during the 5-year period beginning on the date on which the Secretary disburses the loan; and
9 percent after the end of the period described in paragraph (1).
Warrants and debt instruments
The Secretary may not make a loan under this title unless the Secretary receives from the automobile manufacturer or component supplier a warrant or senior debt instrument made in accordance with the requirements for a warrant or senior debt instrument by a financial institution under section 113(d).
No prepayment penalty
A loan made under this title shall be prepayable without penalty at any time.
Executive compensation
Standards required
The Secretary shall require any recipient of a loan under this title to meet appropriate standards for executive compensation and corporate governance.
Specific requirements
The standards established under paragraph (1) shall include the following:
Limits on compensation that exclude incentives for senior executive officers of a recipient of a loan under this title to take unnecessary and excessive risks that threaten the value of such recipient during the period that the loan is outstanding.
A provision for the recovery by such recipient of any bonus or incentive compensation paid to a senior executive officer based on statements of earnings, gains, or other criteria that are later found to be materially inaccurate.
A prohibition on such recipient making any golden parachute payment to a senior executive officer during the period that the loan under this title is outstanding.
A prohibition on such recipient paying or accruing any bonus or incentive compensation during the period that the loan is outstanding to any executive whose annual base compensation exceeds $250,000 (which amount shall be adjusted by the Secretary for inflation).
A prohibition on any compensation plan that could encourage manipulation of the reported earnings of the recipient to enhance the compensation of any of its employees.
Definitions
For purposes of this subsection, the following definitions shall apply:
Senior executive officer
The term senior executive
officer
means an individual who is 1 of the top 5 most highly paid
executives of a public company, whose compensation is required to be disclosed
pursuant to the Securities Exchange Act of 1934, and any regulations issued
thereunder, and non-public company counterparts.
Golden parachute payment
The term golden parachute
payment
means any payment to a senior executive officer for departure
from a company for any reason.
Prohibition on payment of dividends
No common stock dividends may be paid by any recipient of a loan under this title for the duration of the loan.
Oversight
In general
The provisions of sections 105, 116, 121, and 125 shall apply with respect to any loans made under this title, to the extent possible, in the same manner and to the same extent as such sections apply to transactions made under the authority of title I.
.
Technical and conforming amendments
Table of contents
The table of contents in section 1(b) of the Emergency Economic Stabilization Act of 2008 (division A of Public Law 110–343) is amended—
by inserting after the item relating to section 3 the following new item:
Sec. 4. References.
by adding at the end the following:
References
The Emergency Economic Stabilization Act of 2008 (division A of Public Law 110–343) is amended by inserting after section 3 the following new section:
References
Any reference—
in this division to this Act
or any subdivision thereof is a reference to this division A or any subdivision
thereof;
in division (B) to this Act
or any subdivision thereof is a reference to division B or any subdivision
thereof; and
in division (C) to this Act
or any subdivision thereof is a reference to division C or any subdivision
thereof.
.
Emergency treatment
Emergency treatment
All provisions of this Act and the amendments made by this Act are designated as an emergency requirement and necessary to meet emergency needs pursuant to section 204(a) of S. Con. Res 21 (110th Congress), the concurrent resolution on the budget for fiscal year 2008.
November 18, 2008
Read the second time and placed on the calendar