S. 1304Senate111th Congress (2009-2011)In Committee

Automobile Dealer Economic Rights Restoration Act of 2009

Introduced June 18, 2009

Legislative Activity

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SenateIntro Referral Latest Action

Read twice and referred to the Committee on the Judiciary.

June 18, 2009

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SenateIntro Referral

Introduced in Senate

June 18, 2009

SenateIntro Referral

Read twice and referred to the Committee on the Judiciary.

June 18, 2009

Floor Debate

12 members

What members said about S. 1304 on the floor

4 Republicans8 Democrats
Edward E. Kaufman
Sen. Edward E. Kaufman D-DE · Dec 13, 2009

Mr. President, I rise today to voice my support for several of the initiatives in the State and Foreign Operations bill for fiscal year 2010, contained within the 2010 consolidated appropriations…

Tom Harkin
Sen. Tom HarkinD-IA · Dec 13, 2009

Parliamentary inquiry: How much time would I be recognized for now? Mr. President, today and every day an estimated 14,000 Americans will lose their health insurance coverage. The historic…

Carl Levin
Sen. Carl LevinD-MI · Dec 13, 2009

Mr. President, if the Senator will withhold that. Mr. President, I would like to discuss with the chairman of the Financial Services and General Government Appropriations Subcommittee, Senator…

John McCain
Sen. John McCainR-AZ · Dec 13, 2009

How much time remains on both sides? I yield 3 minutes to the Senator from Florida. Mr. President, I understand there will be debate until 2 o'clock, and then a vote on the…

John D. Rockefeller IV
Sen. John D. Rockefeller IVD-WV · Jul 23, 2009

Mr. President, I take this opportunity to discuss the recent decisions by General Motors and Chrysler to eliminate thousands of automobile franchises across America. This is an extremely important…

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Barbara A. Mikulski
Sen. Barbara A. MikulskiD-MD · Dec 13, 2009

Mr. President, my top priority is jobs--to help those who have one, keep it and to help those who don't have one, find one. That is why I have always supported the automobile dealers in Maryland and…

Mitch McConnell
Sen. Mitch McConnellR-KY · Dec 13, 2009

Mr. President, today I will cast my vote against H.R. 3288, the six-bill appropriations omnibus. This bloated package includes the following spending bills: Military Construction/Veterans Affairs,…

Debbie Stabenow
Sen. Debbie StabenowD-MI · Dec 13, 2009

Mr. President, I would like to discuss with the chairman of the Financial Services and General Government Appropriations Subcommittee, Senator Durbin, as manager of the Financial Services…

George S. LeMieux
Sen. George S. LeMieux R-FL · Dec 13, 2009

Mr. President, I am here to speak about this omnibus spending bill we will vote on today. It is more proof that Washington is out of control in its spending and that the leadership on the other side…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Dec 13, 2009

Yes, it is my understanding that the only dealerships entitled to arbitration are those dealerships that were terminated as a result of the manufacturers' bankruptcy, rather than those that may have…

Jon Kyl
Sen. Jon KylR-AZ · Dec 13, 2009

The following Senators are necessarily absent: the Senator from Missouri (Mr. Bond), the Senator from Kentucky (Mr. Bunning), the Senator from Oklahoma (Mr. Coburn), the Senator from Oklahoma (Mr.…

Michael F. Bennet
Sen. Michael F. BennetD-CO · Dec 13, 2009

Mr. President, I ask unanimous consent that the time during the quorum call be divided equally and I suggest the absence of a quorum. I will. Arbitration Process

Bill Text

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Introduced in SenateIssued June 18, 2009

II

111th CONGRESS

1st Session

S. 1304

IN THE SENATE OF THE UNITED STATES

June 18, 2009

Mr. Grassley introduced the following bill; which was read twice and referred to the Committee on the Judiciary

A BILL

To restore the economic rights of automobile dealers, and for other purposes.

1.

Short title

This Act may be cited as the Automobile Dealer Economic Rights Restoration Act of 2009.

2.

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.