[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1578 Introduced in Senate (IS)]
107th CONGRESS
1st Session
S. 1578
To preserve the continued viability of the United States Travel
industry.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
October 25, 2001
Mr. Dorgan (for himself, Mr. Specter, Mr. Conrad, Mr. Inouye, and Mr.
Reid) introduced the following bill; which was read twice and referred
to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To preserve the continued viability of the United States Travel
industry.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This act may be cited as the ``American Travel Industry
Stabilization Act''.
SEC. 2. TRAVEL INDUSTRY DISASTER RELIEF.
(a) In General.--Notwithstanding any other provision of law, the
President shall take the actions described in subsection (b) to
compensate eligible travel-related businesses.
(b) Actions Described.--
(1) In general.--Subject to such terms and conditions as
the President deems necessary, and upon application, the
President is authorized to issue Federal credit instruments to
eligible travel-related businesses described in subsection (c)
that do not, in the aggregate, exceed $5,000,000,000 and
provide the subsidy amounts necessary for such instruments in
accordance with the provisions of the Federal Credit Reform Act
of 1990 (2 U.S.C. 661 et seq.).
(2) Time for application.--An application for a Federal
credit instrument shall be filed by an eligible travel-related
business not later then 60 days after the promulgation of
regulations.
(3) Terms of credit instruments.--A loan guaranteed under
this Act may be used exclusively for the purpose of meeting
obligations and expenses to the extent that an applicant
demonstrates--
(A) business operations were directly and adversely
affected by the events of September 11, 2001;
(B) the loan guarantee is necessary to meet such
obligations;
(C) the inability of the applicant to meet such
obligations or expenses is directly attributable to the
impact of September 11, 2001; and
(D) the applicant has the ability to repay the
loan.
(c) Definitions.--In this Act:
(1) Eligible travel-related business.--The term ``eligible
travel-related business'' means a business that was injured by
the Government shutdown of the airline industry following the
terrorist attacks on the United States that occurred on
September 11, 2001, and that on such date--
(A) had a contractual arrangement with an air
carrier to provide goods or services, including those
with a contractual relationship with the Airline
Reporting Corporation; or
(B) was a non-aeronautical for-profit business
operating at an airport engaged in the sale of consumer
goods or services to the public under an arrangement
with the airport or the airport's governing body.
(2) Federal credit instrument.--The term ``Federal credit
instrument'' means any guarantee or other pledge by the Board
issued under section 2(b) to pledge the full faith and credit
of the United States to pay all or part of any of the principal
of and interest on a loan or other debt obligation issued by an
obligor and funded by a lender.
(d) Emergency Designation.--Congress designates the amount of new
budget authority and outlays in all fiscal years resulting from this
Act as an emergency requirement pursuant to section 252(e) of the
Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.
901(e)). Such amount shall be available only to the extent that a
request, that includes designation of such amount as an emergency
requirement as defined in such Act, is transmitted by the President to
Congress.
SEC. 3. ADDITIONAL FUNCTIONS FOR THE AIRLINE STABILIZATION BOARD.
(a) Definitions.--In this section:
(1) Board.--The term ``Board'' means the Air Transportation
Stabilization Board established under Public Law 107-42.
(2) Financial obligation.--The term ``financial
obligation'' means any note, bond, debenture, or other debt
obligation issued by an obligor in connection with financing
under this section and section 2(b).
(3) Lender.--The term ``lender'' means any non-Federal
qualified institutional buyer (as defined by section
230.144A(a) of title 17, Code of Federal Regulations (or any
successor regulatory) known as Rule 144A(a) of the Securities
and Exchange Commission and issued under the Securities Act of
1933), including--
(A) a qualified retirement plan (as defined in
section 4974(c) of the Internal Revenue Code of 1986
(26 U.S.C. 4974(c))) that is a qualified institutional
buyer; and
(B) a governmental plan (as defined in section
414(d) of the Internal Revenue Code of 1986 (26 U.S.C.
414(d))) that is a qualified institutional buyer.
(4) Obligor.--The term ``obligor'' means a party primarily
liable for payment of the principal of, or interest on, a
Federal credit instrument, which party may be a corporation,
partnership, joint venture, trust, or governmental entity,
agency, or instrumentality.
(b) Additional Functions To Stabilize the Travel Industry.--The
Board shall review and make recommendations to the President with
respect to applications for Federal credit instruments submitted under
section 2(b).
(c) Federal Credit Instruments.--
(1) In general.--The Board may enter into agreements with 1
or more obligors to issue Federal credit instruments under
section 2(b) if the Board determines, in its discretion, that--
(A) the obligor is an entity in a travel-related
business for which credit is not reasonably available
at the time of the transaction;
(B) the intended obligation by the obligor is
prudently incurred; and
(C) such agreement is a necessary part of
maintaining a safe, efficient, and viable travel
industry in the United States.
(2) Terms and limitations.--
(A) Forms, terms, and conditions.--A Federal credit
instrument shall be issued under section 2(b) in such
form and such terms and conditions and contain such
covenants, representatives, warranties, and
requirements (including requirements for audits) as the
Board determines appropriate, provided that--
(i) a loan shall be repaid over a period
not to exceed 5 years from the date that the
loan is guaranteed under this Act;
(ii) the government guarantee shall cover
not less than 80 percent of the value of the
loan;
(iii) loan guarantees under this Act shall
be extended based upon the ability of the
eligible travel-related business to repay the
loan without regard to collateral;
(iv) any loan origination fee may not
exceed one percent of the loan value.
(B) Procedures.--Not later than 14 days after the
date of enactment of this Act, the Director of the
Office of Management and Budget, in consultation with
the Board, shall issue regulations setting forth
procedures for application and minimum requirements.
(d) Financial Protection of Government.--
(1) In general.--To the extent feasible and practicable, as
provided in paragraphs (2) and (3), the Board shall ensure that
the Government is compensated for the risk assumed in making
guarantees under this Act.
(2) Government participation in gains.--To the extent to
which any participating corporation accepts financial
assistance, in the form of accepting the proceeds of any loans
guaranteed by the Government under this Act, the Board is
authorized to enter into contracts under which the Government,
contingent on the financial success of the participating
corporation, would participate in the gains of the
participating corporation or its security holders through the
use of such instruments as warrants, stock options, common or
preferred stock, or other appropriate equity instruments.
(3) Deposit in treasury.--All amounts collected by the
Secretary of the Treasury under this subsection shall be
deposited in the Treasury as miscellaneous receipts.
(e) Authorization of Funds.--Congress authorizes and hereby
appropriates such sums as are necessary to carry out the purposes of
this Act.
<all>