[Congressional Record Volume 154, Number 175 (Monday, November 17, 2008)]
[Senate]
[Pages S10584-S10586]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. REID:
  S. 3688. 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; read the first time.
  Mr. REID. Mr. President, I ask unanimous consent that the text of the 
bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
placed in the Record, as follows:

                                S. 3688

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

                   TITLE I--UNEMPLOYMENT COMPENSATION

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Unemployment Compensation 
     Extension Act of 2008''.

     SEC. 102. ADDITIONAL FIRST-TIER BENEFITS.

       Section 4002(b)(1) of the Supplemental Appropriations Act, 
     2008 (26 U.S.C. 3304 note) is amended--
       (1) in subparagraph (A), by striking ``50'' and inserting 
     ``80''; and
       (2) in subparagraph (B), by striking ``13'' and inserting 
     ``20''.

     SEC. 103. 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:
       ``(c) Special Rule.--
       ``(1) 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--
       ``(A) 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
       ``(B) 13 times the individual's average weekly benefit 
     amount (as determined under subsection (b)(2)) for the 
     benefit year.
       ``(2) 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--
       ``(A) such a period is then in effect for such State under 
     the Federal-State Extended Unemployment Compensation Act of 
     1970;
       ``(B) such a period would then be in effect for such State 
     under such Act if section 203(d) of such Act--
       ``(i) were applied by substituting `4' for `5' each place 
     it appears; and
       ``(ii) did not include the requirement under paragraph 
     (1)(A) thereof; or
       ``(C) such a period would then be in effect for such State 
     under such Act if--
       ``(i) section 203(f) of such Act were applied to such State 
     (regardless of whether the State by law had provided for such 
     application); and
       ``(ii) such section 203(f)--

       ``(I) were applied by substituting `6.0' for `6.5' in 
     paragraph (1)(A)(i) thereof; and
       ``(II) did not include the requirement under paragraph 
     (1)(A)(ii) thereof.

       ``(3) Limitation.--The account of an individual may be 
     augmented not more than once under this subsection.''.

     SEC. 104. PHASEOUT PROVISIONS.

       Section 4007(b) of the Supplemental Appropriations Act, 
     2008 (26 U.S.C. 3304 note) is amended--
       (1) in paragraph (1), by striking ``paragraph (2),'' and 
     inserting ``paragraphs (2) and (3),''; and
       (2) by striking paragraph (2) and inserting the following:

[[Page S10585]]

       ``(2) 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).
       ``(3) Termination.--No compensation under this title shall 
     be payable for any week beginning after August 27, 2009.''.

     SEC. 105. 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.

     SEC. 106. EFFECTIVE DATE.

       (a) 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).
       (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.

           TITLE II--AUTOMOBILE INDUSTRY EMERGENCY ASSISTANCE

     SEC. 201. DIRECT BRIDGE LOANS TO MANUFACTURERS AND SUPPLIERS.

       (a) 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:

               ``TITLE IV--DIRECT BRIDGE LOAN PROVISIONS

     ``SEC. 401. 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.

     ``SEC. 402. PURPOSES.

       ``The purposes of this title are--
       ``(1) 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;
       ``(2) to ensure that such authority and such facilities are 
     used in a manner that--
       ``(A) stimulates manufacturing and sales of automobiles 
     produced by automobile manufacturers in the United States;
       ``(B) enhances the ability and the capacity of the domestic 
     automobile industry to pursue the timely and aggressive 
     production of energy-efficient advanced technology vehicles;
       ``(C) 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
       ``(D) 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
       ``(3) 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.

     ``SEC. 403. EMERGENCY DIRECT LOAN PROGRAM.

       ``(a) 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--
       ``(1) 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;
       ``(2) 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
       ``(3) 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.
       ``(b) 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.
       ``(c) 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.

     ``SEC. 404. 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.

     ``SEC. 405. TIMING OF DISBURSEMENTS.

       ``(a) 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.
       ``(b) 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).
       ``(c) 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).

     ``SEC. 406. TERMS AND CONDITIONS.

       ``(a) 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.
       ``(b) Rate of Interest.--The annual rate of interest for a 
     loan under this title shall be--
       ``(1) 5 percent during the 5-year period beginning on the 
     date on which the Secretary disburses the loan; and
       ``(2) 9 percent after the end of the period described in 
     paragraph (1).
       ``(c) 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).
       ``(d) No Prepayment Penalty.--A loan made under this title 
     shall be prepayable without penalty at any time.
       ``(e) Executive Compensation.--
       ``(1) Standards required.--The Secretary shall require any 
     recipient of a loan under this title to meet appropriate 
     standards for executive compensation and corporate 
     governance.
       ``(2) Specific requirements.--The standards established 
     under paragraph (1) shall include the following:
       ``(A) 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.
       ``(B) 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.
       ``(C) 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.
       ``(D) 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).
       ``(E) 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.
       ``(3) Definitions.--For purposes of this subsection, the 
     following definitions shall apply:
       ``(A) 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.
       ``(B) Golden parachute payment.--The term `golden parachute 
     payment' means any payment to a senior executive officer for 
     departure from a company for any reason.
       ``(f) 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.

     ``SEC. 407. OVERSIGHT.

       ``(a) 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.''.
       (b) Technical and Conforming Amendments.--
       (1) 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--
       (A) by inserting after the item relating to section 3 the 
     following new item:

``Sec. 4. References.''


[[Page S10586]]


     ; and
       (B) by adding at the end the following:

               ``TITLE IV--DIRECT BRIDGE LOAN PROVISIONS

``Sec. 401. Findings.
``Sec. 402. Purposes.
``Sec. 403. Emergency direct loan program.
``Sec. 404. Funding from third tranche; treatment of loan amounts.
``Sec. 405. Timing of disbursements.
``Sec. 406. Terms and conditions.
``Sec. 407. Oversight.''

     ; and
       (2) 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:

     ``SEC. 4. REFERENCES.

       ``Any reference--
       ``(1) in this division to `this Act' or any subdivision 
     thereof is a reference to this division A or any subdivision 
     thereof;
       ``(2) in division (B) to `this Act' or any subdivision 
     thereof is a reference to division B or any subdivision 
     thereof; and
       ``(3) in division (C) to `this Act' or any subdivision 
     thereof is a reference to division C or any subdivision 
     thereof.''.

                     TITLE III--EMERGENCY TREATMENT

     SEC. 301. 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.
                                 ______