[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>