[Congressional Record Volume 154, Number 177 (Thursday, November 20, 2008)]
[Senate]
[Pages S10743-S10751]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. CRAIG:
  S. 16. A bill to provide for certain land to be held in trust for the 
Burns Paiute Tribe; to the Committee on Indian Affairs.

[[Page S10744]]

  Mr. CRAIG. Mr. President, the purpose of introducing this bill today 
is to start the process of granting the Burns-Paiute Tribe of Eastern 
Oregon land in trust. This is an opportunity to allow this tribe to 
become self-sufficient by producing a viable gaming operation. The 
project would be designed to have a minimal component tied to gaming 
with a much larger share of the development related to entertainment 
and tourism. One of the goals would be to develop activities and bring 
in components that enhance the overall Treasure Valley and southwest 
Idaho economic environment. The goal is to create new reasons for 
people to travel to the region and to work with local businesses to 
generate ongoing supply and support ongoing business opportunities. 
This legislation, should it be implemented, will create new jobs and 
provide an economic boost for eastern Oregon and western Idaho.
                                 ______
                                 
      By Ms. SNOWE:
  S. 18. A bill to improve the authority of the Special Inspector 
General charged with overseeing the Troubled Asset Relief Program, and 
for other purposes; to the Committee on Banking, Housing, and Urban 
Affairs.
  Ms. SNOWE. Mr. President, with the size and complexity of the 
Treasury Department's efforts to administer the Troubled Asset Relief 
Program, TARP, which is unprecedented in recent U.S. history, it is 
essential to have a Special Inspector General, IG, who is focused 
exclusively on conducting effective oversight. When Congress passed the 
Emergency Economic Stabilization Act, I was proud to join Senator 
Baucus, as well as 31 of my other colleagues, to insist that the 
legislation direct the Treasury Secretary to appoint a Special IG as 
soon as possible. Notably, we tasked the Special IG with ensuring 
program transparency by collecting data on the Treasury's actions and 
reporting regularly to Congress. One might say that the Special IG is 
the cop on the beat dedicated to protecting taxpayers' interests.
  Many would argue that the Treasury's current authority is almost 
completely unrestrained. There is a saying about what absolute power 
does to people and organizations, namely that absolute power corrupts 
absolutely. We must not allow unrestrained power to corrupt the 
Treasury Department's authority or mission. It is essential that proper 
oversight exists so that the Treasury Department is held accountable 
for how it expends taxpayer dollars.
  A strong IG is even more critical now that the Treasury Department is 
directly injecting capital into banks, as well as potentially aiding 
other entities that provide consumer credit. The oversight requirements 
originally designed by Congress to scrutinize the purchase of toxic 
assets do not accurately or adequately describe the Treasury's equity 
investments and, therefore, do not provide the strong taxpayer 
protections Congress requires.
  With the Treasury Department changing the plan day-by-day, there is 
growing market uncertainty about how best to address the economic 
crisis. The Treasury needs to inspire confidence. It must not follow 
Wall Street's example and play fast and loose on the public's dime. The 
bottom line is we must ensure the government respects the public's 
money more than Wall Street ever did. That will be the Special 
Inspector General's job. It is imperative then that the Special IG be 
adequately equipped with authority and resources to carry out this 
mission.
  On Monday, the Finance Committee held a hearing to consider the 
nomination of Neil Barofsky to be the Special IG for TARP. Mr. Barofsky 
has had a distinguished career as a Federal prosecutor investigating 
white-collar crimes, but regardless of how impressive his resume might 
be, he cannot succeed at his job if his hands are tied with inadequate 
authority and resources. At this hearing, I noted a number of concerns 
that I have with the authority, or lack thereof, given to the Special 
IG, and for this reason, I rise today, to offer legislation, the 
Troubled Asset Relief Program Inspector General Improvement Act, that 
will give the Special IG the teeth that he needs to provide the 
oversight that taxpayers deserve with their precious tax dollars at 
stake.
  Time is of the essence with the Treasury already having committed 
$290 billion without the Special IG's oversight. We cannot afford any 
further delay in the office of the Special IG becoming operational. 
Accordingly, because the Emergency Economic Stabilization Act (EESA) 
did not specify the timing the Treasury Department must observe to 
transfer $50 million to the Special IG to set up his office, my 
legislation would direct the Treasury Secretary to provide the TARP IG 
with $50 million within three days after he is confirmed by the Senate. 
In addition, because the TARP IG must hire personnel to get up and 
running, my bill includes a proposal to waive applicable civil service 
rules that could delay that process. I am concerned that without this 
change, it may be summer before the TARP IG's office is sufficiently 
staffed to discharge its responsibilities.

  Notably, EESA requires the TARP to address deficiencies that the 
Comptroller General identifies, or to certify to the appropriate 
committees of Congress that no action is necessary, but it places no 
similar requirement on the TARP regarding audit findings by the Special 
IG. My bill would place the same requirements on the TARP to address 
recommendations by the Special IG as are required by the findings of 
the Comptroller General.
  Additionally, now that the Treasury Department has changed course and 
decided to inject capital directly into financial institutions rather 
than purchase toxic and illiquid assets as originally contemplated, 
Congress must be sure that the Special IG has the authority to fully 
investigate any other type of transaction undertaken by TARP. Although 
many contend that the underlying statute provides the Special IG with 
the ability to investigate equity injections, with Treasury Secretary 
Paulson hinting that TARP may be expanded to benefit credit card, 
student loan, and car loan companies, and with the possibility that the 
incoming administration might enlarge the program further still in ways 
that we are not fully able to anticipate, it is imperative that the 
Special IG have the ability to conduct oversight over whatever way 
funds are ultimately expended. My legislation mandates that the Special 
IG can go wherever necessary to protect taxpayers.
  Last but not least, as there is tremendous concern in many quarters 
that financial institutions will use the $250 billion in equity 
injections they have been allocated pursuant to TARP to either purchase 
their weaker competitors or simply pay dividends to shareholders, I 
believe it is absolutely critical that the public understand exactly 
how these funds are being committed. Although I hope the funds will be 
used to promote lending, which is so critical to restoring economic 
growth and job creation, we must be sure that such lending occurs. 
Accordingly, my bill would require the TARP IG to prepare by July 1, 
2009, an analysis for Congress of what exactly banks did with the $250 
billion they have received.
  Finally, Mr. President, I would be remiss not to acknowledge similar 
legislation introduced yesterday by my colleagues Senators McCaskill, 
Grassley, Collins, and Lieberman. Although their legislation would 
speed the hiring process to allow the TARP IG to quickly begin 
operations, as well as allow the IG to investigate any initiative 
created as part of the program, it would not make some of the other 
changes I believe are absolutely vital. All that said, I hope that we 
can work together on a consensus, bipartisan package that can 
expeditiously clear the Senate.
  Mr. Prsident, 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 
printed in the Record, as follows:

                                 S. 18

       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 ``Troubled Asset Relief 
     Program Inspector General Improvement Act''.

     SEC. 2. FUNDING OF THE OFFICE OF THE SPECIAL INSPECTOR 
                   GENERAL.

       Section 121(g)(1) of the Emergency Economic Stabilization 
     Act of 2008 (division A of Public Law 110-343) is amended by 
     inserting before the period at the end the following: ``,

[[Page S10745]]

     not later than 3 days after the date on which the nomination 
     of the Special Inspector General is first confirmed by the 
     Senate''.

     SEC. 3. OBLIGATION TO RESPOND TO AUDITS.

       Section 121 of the Emergency Economic Stabilization Act of 
     2008 (division A of Public Law 110-343) is amended--
       (1) by redesignating subsections (f), (g), and (h) as 
     subsections (g), (h), and (i), respectively; and
       (2) by inserting after subsection (e) the following:
       ``(f) Corrective Responses to Audit Problems.--The 
     Secretary shall--
       ``(1) take action to address deficiencies identified by the 
     Special Inspector General or other auditor engaged by the 
     TARP; or
       ``(2) certify to appropriate committees of Congress that no 
     action is necessary or appropriate.''.

     SEC. 4. ADDITIONAL OVERSIGHT MECHANISMS.

       Section 121(c)(1) of the Emergency Economic Stabilization 
     Act of 2008 (division A of Public Law 110-343) is amended by 
     striking ``purchase, management'' and all that follows 
     through ``including'' and inserting ``activities of the 
     Secretary in the expenditure or obligation of funds under 
     this title, including''.

     SEC. 5. REPORTING REQUIREMENT.

       Section 121(g) of the Emergency Economic Stabilization Act 
     of 2008 (division A of Public Law 110-343), as so designated 
     by this Act, is amended--
       (1) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively; and
       (2) by inserting after paragraph (1) the following:
       ``(2) Not later than July 1, 2009, the Special Inspector 
     General shall submit to the Committee on Banking, Housing, 
     and Urban Affairs of the Senate and the Committee on 
     Financial Services of the House of Representatives a report 
     analyzing the use of any funds received by a financial 
     institution under the TARP.''.

     SEC. 6. PERSONNEL AUTHORITIES.

       Section 121(e)(1) of the Emergency Economic Stabilization 
     Act of 2008 (division A of Public Law 110-343) is amended--
       (1) by inserting ``(A)'' after ``(1)''; and
       (2) by adding at the end the following:
       ``(B)(i) Subject to clause (ii), the Special Inspector 
     General may exercise the employment authorities of 
     subsections (b) through (i) of section 3161 of title 5, 
     United States Code (without regard to subsection (a) of that 
     section).
       ``(ii) In exercising the employment authorities under 
     subsection (b) of section 3161 of title 5, United States 
     Code, (as provided under clause (i)) the Special Inspector 
     General may not make any appointment on or after the date 
     occurring 1 year after the date of the first confirmation of 
     a nomination for the Special Inspector General.''.
                                 ______
                                 
      By Mrs. CLINTON (for herself and Mrs. Murray):
  S. 20. A bill to prohibit the implementation 'or enforcement of 
certain regulations; to the Committee on Health, Education, Labor, and 
Pensions.
  Mrs. CLINTON. Mr. President, as this session comes rapidly to a 
close, my colleague Senator Murray and I are introducing critical 
legislation to suspend the Bush administration's latest attempt to put 
ideology before women's health. The rule being proposed by the 
administration would limit patients' access to basic reproductive 
health care services and information.
  The Protecting Patients and Health Care Act would prevent HHS from 
implementing this ill-conceived, midnight regulation.
  As you know, Senator Murray and I have been speaking out against this 
rule since July. The rule, as it was then proposed in August by the 
Department of Health and Human Services, is a serious threat to 
patients' access to information and care.
  Then in September, Senator Murray and I had a very frank conversation 
with Secretary Leavitt about how this rule could create a slippery 
slope leading to patients being denied access to contraception and 
other important information or care. However, despite the important 
concerns we raised to the Secretary, the New York Times reported this 
past Monday that in the coming days, HHS plans to release a final 
regulation that would undermine women's health.
  I am hopeful that my Senate colleagues from both sides of the aisle 
will join me today in supporting this important piece of legislation to 
protect patients' rights and health care.
                                 ______
                                 
      By Mr. REID (for himself and Mr. Harkin):
  S. 3709. A bill to amend the Farm Security and Rural Investment Act 
of 2002 to expand the Rural Energy for America Program to include 
schools in rural areas; to the Committee on Agriculture, Nutrition, and 
Forestry.
  Mr. REID. Mr. President, today I am introducing legislation, along 
with my colleague Senator Harkin, to create opportunities for schools, 
located in rural communities across this country, to compete for grants 
and loans to purchase energy systems or make energy efficiency 
improvements.
  The recently passed Farm Bill authorized roughly $1 billion in 
mandatory spending for renewable energy programs. One of those programs 
is The Rural Energy for America Program, REAP. This program provides 
loans, loan guarantees, and grants to agricultural producers and rural 
small businesses to invest in energy saving improvements to their 
current energy systems or to purchase renewable energy systems. 
Examples include purchasing or replacing equipment with more efficiency 
units, such as lighting or insulation, or the wholesale installment of 
energy projects that produce energy from wind, solar, biomass, 
geothermal, and hydrogen-based sources to produce any form of energy 
including, heat, electricity, or fuel.
  My legislation would authorize an additional $100 million over 5 
years for these grants and in effect expand the scope of the program, 
allowing it to better meet the needs of rural communities and creating 
important incentives for institutions to invest in renewable 
technology. It is my hope that Congress will support this legislation 
and its goal of helping rural communities play a key role in our 
Nation's energy future.
  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 
printed in the Record, as follows:

                                S. 3709

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

     SECTION 1. RURAL ENERGY FOR AMERICA PROGRAM.

       (a) In General.--Section 9007 of the Farm Security and 
     Rural Investment Act of 2002 (7 U.S.C. 8107) is amended--
       (1) by striking ``and rural small businesses'' each place 
     it appears and inserting ``, rural small businesses, and 
     rural schools''; and
       (2) in subsection (b)(6) and (c)(3)(A), by striking ``or 
     rural small business'' each place it appears and insert ``, 
     rural small business, or rural school''.
       (b) Definition of Rural School.--Section 9007(a) of the 
     Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
     8107(a) is amended--
       (1) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively, and indenting 
     appropriately; and
       (2) by striking ``The Secretary'' and inserting the 
     following:
       ``(1) Definition of rural school.--In this section, the 
     term `rural school' means a school in a rural area (as 
     defined in section 343(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1991(a))).
       ``(2) Establishment.--The Secretary''.
       (c) Mandatory Funding.--Section 9007(g)(1) of the Farm 
     Security and Rural Investment Act of 2002 (7 U.S.C. 
     8107(g)(1) is amended--
       (1) by redesignating subparagraphs (A) through (D) as 
     clauses (i) through (iv), respectively, and indenting 
     appropriately;
       (2) by striking ``Of the funds'' and inserting the 
     following:
       ``(A) In general.--Of the funds''; and
       (3) by adding at the end the following:
       ``(B) Funding for rural schools.--In addition to amounts 
     made available under subparagraph (A), of the funds of the 
     Commodity Credit Corporation, the Secretary shall use to 
     provide assistance to rural schools under this section, 
     $20,000,000 for each of fiscal years 2009 through 2013, to 
     remain available until expended.''.

  Mr. HARKIN. Mr. President, today I am proud to cosponsor this 
legislation to expand the Rural Energy for America Program, REAP, to 
include schools in rural areas. This amendment to the program will 
encourage our rural schools to carry out energy efficiency projects and 
install renewable energy systems, thus reducing their dependence on 
fossil energy and reducing future energy costs. I am proud to join my 
colleague, Senator Reid of Nevada, as a cosponsor of this bill.
  The Rural Energy for America Program, enacted in the 2008 farm bill--
the Food, Conservation, and Energy Act of 2008--is an expansion of the 
very successful section 9006 program which was established by the 2002 
farm bill. The program has supported over 2,000 renewable energy and 
energy efficiency projects for farmers, ranchers, and rural small 
businesses since its enactment. Most impressive is the fact that the 
Federal investments in these projects were matched by almost 10 times 
as much in funding from the developers of the projects and other 
sources. This truly is a hallmark of a

[[Page S10746]]

successful Federal program, exactly the kind of program that deserves 
expansion, especially because it supports rural economic development 
while helping to provide us with cleaner and more sustainable energy 
systems. Expanding this program to rural schools just makes sense--they 
foster rural economic development and should be able to take part in 
this transition to better energy systems and to realize the associated 
environmental and economic benefits.
  I urge my Senate colleagues to join me in passing this important 
legislation.
                                 ______
                                 
      By Mr. REID (for himself, Mr. McConnell, Mr. Leahy, Mr. Hatch, 
        Mr. Grassley, Mrs. Feinstein, and Mr. Bingaman):
  S. 3711. A bill to authorize a cost of living adjustment for the 
Federal judiciary; considered and passed.
  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. 3711

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

     SECTION 1. COST OF LIVING ADJUSTMENT FOR THE FEDERAL 
                   JUDICIARY.

       Pursuant to section 140 of Public Law 97-92, justices and 
     judges of the United States are authorized during fiscal year 
     2009 to receive a salary adjustment in accordance with 
     section 461 of title 28, United States Code.
                                 ______
                                 
      By Mr. DURBIN (for himself and Mr. Akaka):
  S. 3713: A bill to provide for the integration of the Captain James 
A. Lovell Federal Health Care Center and the Great Lakes Naval Health 
Clinic, and for other purposes; to the Committee on Armed Services.
  Mr. DURBIN. 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. 3713

       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 ``Captain James A. Lovell 
     Federal Health Care Center Act of 2008''.

     SEC. 2. TRANSFER OF PROPERTY.

       (a) Transfer.--
       (1) Transfer authorized.--Upon the conclusion of a 
     resource-sharing agreement between the Secretary of Defense 
     and the Secretary of Veterans Affairs providing for the joint 
     use by the Department of Defense and the Department of 
     Veterans Affairs of a facility and supporting facilities in 
     North Chicago, Illinois, and Great Lakes, Illinois, and for 
     joint use of related medical personal property and equipment, 
     the Secretary of Defense may transfer, without reimbursement, 
     to the Department of Veterans Affairs the Navy ambulatory 
     care center (on which construction commenced in July 2008), 
     parking structure, and supporting facilities, and related 
     medical personal property and equipment, located in Great 
     Lakes, Illinois.
       (2) Designation of joint use facility.--The facility and 
     supporting facilities subject to joint use under the 
     agreement and transfer under this subsection shall be 
     designated as known as the ``Captain James A. Lovell Federal 
     Health Care Center''.
       (b) Reversion.--
       (1) In general.--If any of the real and related personal 
     property transferred pursuant to subsection (a) is 
     subsequently used for purposes other than the purposes 
     specified in the joint use specified in the resource-sharing 
     agreement described in that subsection or otherwise 
     determined by the Secretary of Veterans Affairs to be excess 
     to the needs of the Department of Veterans Affairs, the 
     Secretary of Veterans Affairs shall offer to transfer such 
     property, without reimbursement, to the Secretary of Defense. 
     Any such transfer shall be completed not later than one year 
     after the acceptance of the offer of transfer.
       (2) Reversion in event of lack of facilities integration.--
       (A) Within initial period.--During the 5-year period 
     beginning on the date of the transfer of the real and related 
     personal property described in subsection (a), if the 
     Secretary of Veterans Affairs and the Secretary of Defense 
     jointly determine that the integration of the facilities 
     described in that subsection should not continue, the real 
     and related personal property of the Navy ambulatory care 
     center, parking structure, and support facilities described 
     in that subsection shall be transferred, without 
     reimbursement, to the Secretary of Defense. Such transfer 
     shall occur not later than 180 days after the date of such 
     determination by the Secretaries.
       (B) After initial period.--After the end of the 5-year 
     period described in subparagraph (A), if either the Secretary 
     of Veterans Affairs or the Secretary of Defense determines 
     that the integration of the facilities described in 
     subsection (a) should not continue, the Secretary of Veterans 
     Affairs shall transfer, without reimbursement, to the 
     Secretary of Defense the real and related personal property 
     described in paragraph (1). Such transfer shall occur not 
     later than one year after the date of the determination by 
     the Secretary concerned.

     SEC. 3. TRANSFER OF CIVILIAN PERSONNEL OF THE DEPARTMENT OF 
                   DEFENSE.

       (a) Authorization for Transfer of Functions.--
       (1) In general.--The Secretary of Defense may transfer to 
     the Department of Veterans Affairs, and the Secretary of 
     Veterans Affairs may accept from the Department of Defense, 
     functions necessary for the effective operation of the 
     Captain James A. Lovell Federal Health Care Center.
       (2) Treatment of transfers.--Any transfer of functions 
     under this subsection is a transfer of functions within the 
     meaning of section 3503 of title 5, United States Code.
       (b) Terms of Agreement.--
       (1) Resource-sharing agreement.--Any transfer of functions 
     under subsection (a) shall be effectuated in a resource-
     sharing agreement between the Secretary of Defense and the 
     Secretary of Veterans Affairs.
       (2) Elements.--Notwithstanding any other provision of law, 
     including but not limited to any provisions of title 5, 
     United States Code, relating to transfers of function or 
     reductions-in-force, the agreement described in paragraph (1) 
     shall be controlling and may make provision for--
       (A) the transfer of civilian employee positions of the 
     Department of Defense identified in the agreement to the 
     Department of Veterans Affairs and of the incumbent civilian 
     employees in such positions;
       (B) the transition of transferred employees to pay, 
     benefits, and personnel systems of the Department of Veterans 
     Affairs in a manner which will not result in any reduction of 
     pay, grade, or employment progression of any employee or any 
     change in employment status for employees who have already 
     successfully completed or are in the process of completing a 
     one-year probationary period under title 5, United States 
     Code;
       (C) the establishment of integrated seniority lists and 
     other personnel management provisions that recognize an 
     employee's experience and training so as to provide 
     comparable recognition of employees previously with the 
     Department of Veterans Affairs and employees newly 
     transferred to such Department; and
       (D) such other matters relating to civilian personnel 
     management as the Secretary of Defense and the Secretary of 
     Veterans Affairs consider appropriate.
       (c) Preservation of Authority.--Notwithstanding subsections 
     (a) and (b), nothing in this section shall be construed as 
     limiting the authority of the Secretary of Defense to 
     establish civilian employee positions in the Department of 
     Defense and utilize all civilian personnel authorities 
     otherwise available to the Secretary if the Secretary 
     determines that such actions are necessary and appropriate to 
     meet mission requirements of the Department of Defense.

     SEC. 4. EXTENSION AND EXPANSION OF JOINT INCENTIVE FUND.

       (a) Ten-Year Extension of Authority for Joint Incentives 
     Program.--Paragraph (3) of section 8111(d) of title 38, 
     United States Code, is amended by striking ``2010'' and 
     inserting ``2020''.
       (b) Funding of Maintenance and Minor Construction From the 
     Joint Incentive Fund.--Paragraph (2) of such section is 
     amended by adding at the end the following new sentence: 
     ``Such purposes shall include real property maintenance and 
     minor construction projects that are not required to be 
     specifically authorized by law under section 8104 of this 
     title and section 2805 of title 10.''.

     SEC. 5. HEALTH CARE ELIGIBILITY FOR SERVICES AT THE CAPTAIN 
                   JAMES A. LOVELL FEDERAL HEALTH CARE CENTER.

       (a) In General.--For purposes of eligibility for health 
     care under chapter 55 of title 10, United States Code, the 
     Captain James A. Lovell Federal Health Care Center authorized 
     by this Act may be deemed to be a facility of the uniformed 
     services to the extent provided in an agreement between the 
     Secretary of Defense and the Secretary of Veterans Affairs 
     under subsection (b).
       (b) Elements of Agreement.--Subsection (a) may be 
     implemented through an agreement between the Secretary of 
     Veterans Affairs and the Secretary of Defense. The agreement 
     may--
       (1) establish an integrated priority list for access to 
     available care at the facility described in subsection (a), 
     integrating the respective priority lists of the Secretaries, 
     taking into account categories of beneficiaries, enrollment 
     program status, and such other factors as the Secretaries 
     determine appropriate;
       (2) incorporate any resource-related limitations for access 
     to care at that facility established by the Secretary of 
     Defense for purposes of administering space-available 
     eligibility for care in facilities of the uniformed services 
     under chapter 55 of title 10, United States Code;
       (3) allocate financial responsibility for care provided at 
     that facility for individuals who are eligible for care under 
     both title 38, United States Code, and chapter 55 of title 
     10, United States Code; and

[[Page S10747]]

       (4) waive the applicability to that facility of any 
     provision of section 8111(e) of title 38, United States Code, 
     as specified by the Secretaries.
                                 ______
                                 
      By Mr. HARKIN:
  S. 3714. A bill to amend the Commodity Exchange Act to ensure that 
all agreements, contracts, and transactions with respect to commodities 
are carried out on a regulated exchange, and for other purposes; to the 
Committee on Agriculture, Nutrition, and Forestry.
  Mr. HARKIN. Mr. President, today, I am introducing legislation--the 
Derivatives Trading Integrity Act--which calls for establishing 
stronger standards of openness, transparency and integrity in the 
trading of financial swaps and other over-the-counter derivatives as a 
critical step toward rebuilding and restoring confidence in the 
financial system. With the total face value of swaps reaching a high of 
some $531 trillion at the middle of this year--8-and-a-half times the 
world GDP of $62 trillion--it is long past time for accountability in 
these markets. Over the years, the Commodity Futures Trading Commission 
and Congress have responded to concerns of the the swaps industry by 
allowing instruments that are in form and function futures contracts to 
be privately negotiated without the safeguards provided through 
exchange trading.
  The economic downturn in this country is forcing us to examine all 
contributing factors to the crisis in our financial markets. By 
restoring reasonable safeguards and regulation of swaps, including 
credit default swaps, along with all other futures contracts, this 
legislation will go a long way to restore confidence in the markets and 
reestablish soundness and integrity in the financial system. My bill 
will end the unregulated ``casino capitalism'' that has engendered 
great risks in swaps trading. And it will bring these transactions out 
into the sunlight where they can be monitored and appropriately and 
responsibly regulated. This legislation will establish authority and 
safeguards to ensure that parties can meet their obligations to manage 
and reduce danger and risk to the entire financial system and economy.
  Virtually all contracts now commonly referred to as swaps fall under 
the definition of futures contracts and function basically in the same 
manner as futures contracts. This bill amends the Commodity Exchange 
Act to eliminate the distinction in futures contracts among 
``excluded'' and ``exempt'' commodities and regulated, exchange-traded 
commodities; futures contracts for all commodities would be treated the 
same.
  In addition, the bill eliminates the statutory exclusion of swap 
transactions from regulation, and it ends the Commodity Futures Trading 
Commission's authority to exempt such transactions from the general 
requirement that a contract for the purchase or sale of a commodity for 
future delivery can only trade on a regulated board of trade. In 
effect, this means that all futures contracts must trade on a 
designated contract market or a derivatives transaction execution 
facility.
  Last month, the Senate Committee on Agriculture, Nutrition and 
Forestry heard dramatic testimony about the impact of unregulated 
financial derivatives on the U.S. economy. We have seen large negative 
consequences from the lack of price transparency and the failure to 
properly measure and collateralize the risk in trading over-the-counter 
derivatives. The problems have not been in the trading of financial 
futures on regulated futures markets, subject to the oversight of the 
Commodity Futures Trading Commission.
  This legislation I am introducing will establish the standards that 
all futures contracts trade on regulated exchange. The regulated 
exchanges will work with the Commodity Futures Trading Commission to 
ensure that trading on the exchange is fair and equitable and not 
subject to abuses. The Commodity Futures Trading Commission has the 
experience and expertise to oversee these matters.
  Bringing necessary openness, transparency, soundness, and integrity 
to trading in contracts which are now unregulated over-the-counter 
swaps and related derivatives is a key element in restoring trust and 
confidence in the financial system so that we can rebuild our economy 
on a solid foundation.
  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 
printed in the Record, as follows:

                                S. 3714

       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 ``Derivatives Trading 
     Integrity Act of 2008''.

     SEC. 2. REGULATION OF CERTAIN AGREEMENTS, CONTRACTS, AND 
                   TRANSACTIONS.

       (a) Definitions.--Section 1a of the Commodity Exchange Act 
     (7 U.S.C. 1a) is amended--
       (1) by striking paragraphs (10), (11), (13), (14), and 
     (33); and
       (2) by redesignating--
       (A) paragraph (12) as paragraph (10);
       (B) paragraphs (15) through (32) as paragraphs (11) through 
     (28), respectively; and
       (C) paragraph (34) as paragraph (29).
       (b) Exclusions.--Section 2 of the Commodity Exchange Act (7 
     U.S.C. 2) is amended--
       (1) by striking subsections (d), (e), (g), (h), and (i); 
     and
       (2) by redesignating subsection (f) as subsection (d).
       (c) Restriction of Futures Trading to Contract Markets or 
     Derivatives Transaction Execution Facilities.--Section 4 of 
     the Commodity Exchange Act (7 U.S.C. 6) is amended--
       (1) in subsection (a), in the matter preceding paragraph 
     (1), by striking ``Unless exempted by the Commission pursuant 
     to subsection (c), it shall'' and inserting ``It shall'';
       (2) by striking subsection (c); and
       (3) by redesignating subsection (d) as subsection (c).
       (d) Exempt Boards of Trade.--Section 5d of the Commodity 
     Exchange Act (7 U.S.C. 7a-3) is repealed.

     SEC. 3. CONFORMING AMENDMENTS.

       (a) Section 1a of the Commodity Exchange Act (7 U.S.C. 1a) 
     (as amended by section 2(a)(2)) is amended--
       (1) in paragraph (10)(A)(x), by striking ``(other than an 
     electronic trading facility with respect to a significant 
     price discovery contract)'';
       (2) in paragraph (25)--
       (A) in subparagraph (C), by inserting ``and'' after the 
     semicolon at the end;
       (B) in subparagraph (D), by striking ``; and'' and 
     inserting a period; and
       (C) by striking subparagraph (E); and
       (3) in paragraph (27), by striking ``section 2(c), 2(d), 
     2(f), or 2(g) of this Act'' and inserting ``subsection (c) or 
     (d) of section 2''.
       (b) Section 2(c) of the Commodity Exchange Act (7 U.S.C. 
     2(c)) is amended--
       (1) in paragraph (1)--
       (A) in the matter preceding subparagraph (A), by striking 
     ``5d,''; and
       (B) in subparagraph (F), by striking ``in an excluded 
     commodity''; and
       (2) in paragraph (2)(B)(i)(II)--
       (A) in item (cc), by striking ``section 1a(20) of this 
     Act'' each place it appears and inserting ``section 1a(16)''; 
     and
       (B) in item (dd), by striking ``section 1a(12)(A)(ii) of 
     this Act'' and inserting ``section 1a(10)(A)(ii)''.
       (c) Section 4a of the Commodity Exchange Act (7 U.S.C. 6a) 
     is amended--
       (1) in subsection (a)--
       (A) in the first sentence, by striking ``or on electronic 
     trading facilities with respect to a significant price 
     discovery contract''; and
       (B) in the second sentence, by striking ``or on an 
     electronic trading facility with respect to a significant 
     price discovery contract,'';
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``or electronic trading 
     facility with respect to a significant price discovery 
     contract''; and
       (B) in paragraph (2), in the matter preceding the proviso, 
     by striking ``or electronic trading facility with respect to 
     a significant price discovery contract''; and
       (3) in subsection (e)--
       (A) in the first sentence--
       (i) in the matter preceding the proviso--

       (I) by striking ``or by any electronic trading facility'';
       (II) by striking ``or on an electronic trading facility''; 
     and
       (III) by striking ``or electronic trading facility''; and

       (ii) in the proviso, by striking ``or electronic trading 
     facility''; and
       (B) in the second sentence, in the matter preceding the 
     proviso, by striking ``or electronic trading facility with 
     respect to a significant price discovery contract''.
       (d) Section 4g(a) of the Commodity Exchange Act (7 U.S.C. 
     6g(a)) is amended by striking ``and in any significant price 
     discovery contract traded or executed on an electronic 
     trading facility or''.
       (e) Section 4i of the Commodity Exchange Act (7 U.S.C. 6i) 
     is amended--
       (1) in the matter preceding paragraph (1), by striking ``or 
     any significant price discovery contract traded or executed 
     on an electronic trading facility''; and
       (2) in the matter following paragraph (2), by striking ``or 
     electronic trading facility''.
       (f) Section 5a of the Commodity Exchange Act (7 U.S.C. 7a) 
     is amended--
       (1) in subsection (b)(2)--
       (A) in subparagraph (D)(ii), by inserting ``or'' after the 
     semicolon at the end;
       (B) in subparagraph (E), by striking ``; or'' and inserting 
     a period; and

[[Page S10748]]

       (C) by striking subparagraph (F); and
       (2) in subsection (g)--
       (A) in the heading, by striking ``Election To Trade 
     Excluded and Exempt Commodities'' and inserting ``Excluded 
     Securities''; and
       (B) in paragraph (1)--
       (i) by striking ``excluded or exempt commodities other 
     than'' and inserting ``commodities other than an agricultural 
     commodity enumerated in section 1a(4) or''; and
       (ii) by striking ``, 2(d), or 2(g) of this Act, or exempt 
     under section 2(h) of this Act''.
       (g) Section 5b of the Commodity Exchange Act (7 U.S.C. 7a-
     1) is amended--
       (1) in subsection (a)(1), by striking ``section 
     2(a)(1)(C)(i), 2(c), 2(d), 2(f), or 2(g) of this Act or title 
     IV of the Commodity Futures Modernization Act of 2000, or 
     exempted under section 2(h) or 4(c) of this Act'' and 
     inserting ``subsection (a)(1)(C)(i), (c), or (d) of section 2 
     or title IV of the Commodity Futures Modernization Act of 
     2000 (Public Law 106-554; 114 Stat. 2763A457)''; and
       (2) in subsection (b), by striking ``section 2(c), 2(d), 
     2(f), or 2(g) of this Act or title IV of the Commodity 
     Futures Modernization Act of 2000, or exempted under section 
     2(h) or 4(c) of this Act'' and inserting ``subsection (c) or 
     (d) of section 2 or title IV of the Commodity Futures 
     Modernization Act of 2000 (Public Law 106-554; 114 Stat. 
     2763A457)''.
       (h) Section 5c of the Commodity Exchange Act (7 U.S.C. 7a-
     2) is amended--
       (1) in subsection (a)(1), by striking ``and section 2(h)(7) 
     with respect to significant price discovery contracts,'';
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``, derivatives 
     transaction execution facility, or electronic trading 
     facility with respect to a significant price discovery 
     contract'' and inserting ``or derivatives transaction 
     execution facility''; and
       (B) in paragraphs (2) and (3), by striking ``, derivatives 
     transaction execution facility, or electronic trading 
     facility'' each place it appears and inserting ``or 
     derivatives transaction execution facility''; and
       (3) in subsection (d)(1), in the matter preceding 
     subparagraph (A), by striking ``or 2(h)(7)(C) with respect to 
     a significant price discovery contract traded or executed on 
     an electronic trading facility,''.
       (i) Section 5e of the Commodity Exchange Act (7 U.S.C. 7b) 
     is amended by striking ``or revocation of the right of an 
     electronic trading facility to rely on the exemption set 
     forth in section 2(h)(3) with respect to a significant price 
     discovery contract,''.
       (j) Section 5f(b)(1) of the Commodity Exchange Act (7 
     U.S.C. 7b-1(b)(1)) is amended in the matter preceding 
     subparagraph (A), by striking ``section 5f'' and inserting 
     ``this section''.
       (k) Section 6(b) of the Commodity Exchange Act (7 U.S.C. 
     8(b)) is amended--
       (1) in the first sentence--
       (A) by striking ``or to revoke the right of an electronic 
     trading facility to rely on the exemption set forth in 
     section 2(h)(3) with respect to a significant price discovery 
     contract,''; and
       (B) by striking ``or electronic trading facility''; and
       (2) in the second sentence, in the matter preceding the 
     proviso, by striking ``or electronic trading facility''.
       (l) Section 12(e) of the Commodity Exchange Act (7 U.S.C. 
     16(e)) is amended by striking paragraph (2) and inserting the 
     following:
       ``(2) Effect.--This Act supersedes and preempts the 
     application of any State or local law that prohibits or 
     regulates gaming or the operation of bucket shops (other than 
     antifraud provisions of general applicability) in the case of 
     an agreement, contract, or transaction that is excluded from 
     this Act under--
       ``(A) subsection (c) or (d) of section 2; or
       ``(B) title IV of the Commodity Futures Modernization Act 
     of 2000 (Public Law 106-554; 114 Stat. 2763A457).''.
       (m) Section 15(b) of the Commodity Exchange Act (7 U.S.C. 
     19(b)) is amended by striking ``4(c) or''.
       (n) Section 22(b)(1)(A) of the Commodity Exchange Act (7 
     U.S.C. 25(b)(1)(A)) is amended by striking ``by section 
     2(h)(7) or sections 5 through 5c'' and inserting ``under 
     sections 5 through 5c''.
       (o) Section 13106(b)(1) of the Food, Conservation, and 
     Energy Act of 2008 (7 U.S.C. 2 note; Public Law 110-246) is 
     amended by striking ``section 1a(32)'' and inserting 
     ``section 1a''.
                                 ______
                                 
      By Mr. LEVIN (for himself, Mr. Bond, Ms. Stabenow, Mr. Voinovich, 
        Mr. Brown, Mr. Specter, and Mr. Casey):
  S. 3715. A bill to provide for emergency bridge loan assistance to 
automobile manufacturers and component suppliers; to the Committee on 
Appropriations.
  Mr. President, I am pleased to introduce with my colleagues the Auto 
Industry Emergency Bridge Loan Act.
  This legislation is the product of a bipartisan effort to provide 
bridge loans of up to $25 billion to the auto industry. Auto industries 
around the world, including China and Europe, are requesting loans from 
their governments because of the dramatic decline of the global economy 
and the drastic reduction in car purchases and the availability of 
credit.
  Our proposition is not only bipartisan. It is a hybrid proposal 
combining provisions from many sources.
  We incorporate Leader Reid's provisions on strong taxpayer 
protections, including stock warrants for the government, provisions 
restricting executive compensation, including bonuses and golden 
parachutes, and provisions requiring long term plans for financial 
viability. Suppliers are also made eligible for the loans.
  The language of Chairman Barney Frank, of the House Financial 
Services Committee, was heavily utilized including retention of Section 
136's environmental standards, such as 25 percent improvement in fuel 
economy and Tier II emissions standards. His oversight board membership 
approach is also included.
  The White House opposed the use of any of the $700 billion, already-
appropriated stabilization fund, and the Majority Leader said yesterday 
that there were not enough votes in the Senate to pass an amendment 
using those funds. We cannot allow the issue of which source of already 
appropriated funds will be used for the essential purpose of preventing 
the economy from sliding into a depression, which is a real possibility 
if one or more of the domestic auto companies goes under, given the 
impact of the auto industry on millions of jobs, on suppliers that are 
in most of our States and on all of our communities which have Big 3 
auto dealers.
  So we agreed that the only alternative which can prevent those 
disastrous results is for the funding stream for the loans to come from 
the so-called Section 136 appropriation that we provided earlier this 
year in the consolidated Security, Disaster Assistance, and Continuing 
Appropriations Act, 2009. However, the structure of Section 136 is 
preserved in permanent law for the balance of its appropriation not 
utilized for loans, and the environmental standards of section 136, 
including strengthened fuel economy and emissions standards, are 
preserved. Also, loan repayments will be used to replenish Section 136, 
along with any proceeds from the sale of company stock owned by the 
government.
  Under our proposal, this emergency bridge loan program would be 
administered by the Secretary of Commerce.
  The time for Congress to act on this pressing issue is growing short. 
People in communities across this country are anxiously watching to see 
what we are going to do. They are sick with worry. Not acting on a 
solution will provoke anger and frustration in hundreds of communities 
which supply components or have auto dealers. This is a Main Street 
issue--a direct jobs issue for millions of families.
  I know there is frustration with the past actions of the U.S. auto 
companies. Some blame them for the quality problems of the 1970s, or 
for paying their executives and their workers too much, or for not 
moving aggressively enough to produce advanced technology, fuel 
efficient cars. But we can't throw millions of jobs, a vital segment of 
our industrial base and our economy overboard just because of this 
frustration.
  President Bush, President-elect Obama, and the leadership and 
probably a majority of the Congress all agree that we needed to provide 
bridge loans to support the U.S. auto industry, and I am pleased that 
the leadership of the Congress has said that we will address this issue 
beginning December 8.
  The stakes for our future economic security and well-being are 
enormous. One way or another, we must provide the bridge loans for the 
domestic auto industry--for the sake of millions of workers and their 
future and to keep our economy from being pushed into a depression.
  I want to thank the cosponsors of this legislation, Senator Bond, 
Senator Stabenow, Senator Voinovich, Senator Brown, Senator Specter and 
Senator Casey for their assistance in preparing this bipartisan 
legislation, and I urge my colleagues to join us in supporting it.
  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 
printed in the Record, as follows:

[[Page S10749]]

                                S. 3715

       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 ``Auto Industry Emergency 
     Bridge Loan Act''.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Automobile manufacturer or component supplier.--The 
     term ``automobile manufacturer or component supplier'' means 
     an automobile manufacturer or component supplier or any 
     successor thereto.
       (2) Golden parachute payment.--The term ``golden parachute 
     payment'' means any payment to a senior executive officer for 
     departure from a company for any reason.
       (3) Financial viability.--The term ``financial viability'' 
     means, using generally acceptable accounting principles, that 
     there is a reasonable prospect that the applicant will be 
     able to make payments of principal and interest on the loan 
     as and when such payments become due under the terms of the 
     loan documents, and that the applicant has a net present 
     value that is positive.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Commerce.
       (5) 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 nonpublic company counterparts.

     SEC. 3. AUTO INDUSTRY EMERGENCY BRIDGE LOAN PROGRAM.

       On or before March 31, 2009, the Secretary shall make loans 
     from funds provided under this section to automobile 
     manufacturers or component suppliers that have--
       (1) operations in the United States, the failure of which 
     would have a systemic adverse effect on the overall United 
     States economy or a significant loss of United States jobs, 
     as determined by the Secretary;
       (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 
     the enactment of this Act; and
       (3) submitted a complete application for a loan under this 
     section pursuant to section 4(a), which has been determined 
     eligible under section 4(b).

     SEC. 4. PLAN TO ENSURE FINANCIAL VIABILITY OF BORROWER.

       (a) In General.--At the time of application for a loan 
     under this Act, an automobile manufacturer or component 
     supplier shall submit to the Secretary a detailed plan that 
     describes how the requested Government funds--
       (1) would be utilized to ensure the financial viability of 
     the manufacturer or supplier; and
       (2) would stimulate automobile production in the United 
     States; and
       (3) would improve the capacity of the manufacturer or 
     supplier to pursue the timely and aggressive production of 
     energy-efficient advanced technology vehicles.
       (b) Plan Contents.--A plan submitted under this section 
     shall detail cost control measures and performance goals and 
     milestones.

     SEC. 5. APPLICATIONS, ELIGIBILITY AND DISBURSEMENTS.

       (a) Applications.--On and after the date that is 3 days 
     after the date of the enactment of this Act, the Secretary 
     shall accept applications for loans under this Act.
       (b) Determination of Eligibility.--Not later than 15 days 
     after the date on which the Secretary receives a complete 
     application for a loan under subsection (a), the Secretary 
     shall, after consultation with other Executive Branch 
     officials, determine whether--
       (1) the applicant meets the requirements described in 
     sections 3 and 4;
       (2) the disbursement of funds and the successful 
     implementation of the required plan would ensure the 
     financial viability of the applicant; and
       (3) the applicant is therefore eligible to receive a loan 
     under this Act.
       (c) Disbursement.--The Secretary shall begin disbursement 
     of the proceeds of a loan under this Act to an eligible 
     applicant not later than 7 days after the date on which the 
     Secretary receives a disbursal request from the applicant.
       (d) Warrants and Debt Instruments.--The Secretary may not 
     make a loan under this Act unless the Secretary receives from 
     the automobile manufacturer or component supplier a warrant 
     or senior debt instrument from the manufacturer made in 
     accordance with the requirements for a warrant or senior debt 
     instrument by a financial institution under section 113(d) of 
     the Emergency Economic Stabilization Act of 2008 (division A 
     of Public Law 110-343).

     SEC. 6. REPLENISHMENT OF ADVANCED TECHNOLOGY VEHICLE 
                   MANUFACTURING INCENTIVE PROGRAM.

       (a) Equity Sales.--
       (1) Sales authorized.--The Secretary may sell, exercise, or 
     surrender any equity instrument received under this Act.
       (2) Turnaround profits to restore advanced vehicles 
     manufacturing incentive program.--Proceeds received from a 
     sale, exercise, or surrender under paragraph (1) may be 
     credited to the appropriate Government financing account made 
     available to fulfill the advanced technology vehicle 
     manufacturing incentive purpose under section 136 of the 
     Energy Independence and Security Act of 2007 (Public Law 110-
     140; 42 U.S.C. 17013) until the amount loaned under this Act 
     has been repaid.
       (3) Reduction of public debt.--Proceeds received from a 
     sale, exercise, or surrender under paragraph (1) that takes 
     place after the amount loaned under this Act has been repaid 
     in accordance with paragraph (2) may be used to reduce the 
     public debt.
       (b) Repaid Loan Funds.--
       (1) In general.--Loan amounts repaid under this Act may be 
     credited to the appropriate Government financing account made 
     available to fulfill the advanced technology vehicle 
     manufacturing incentive purpose of section 136 of the Energy 
     Independence and Security Act of 2007 until the amount loaned 
     under this Act is repaid.
       (2) Reduction of public debt.--Loan amounts repaid under 
     this Act after the amount loaned under this Act has been 
     repaid may be used to reduce the public debt.

     SEC. 7. LIMITS ON EXECUTIVE COMPENSATION.

       (a) Standards Required.--The Secretary shall require any 
     recipient of a loan under this Act to meet appropriate 
     standards for executive compensation and corporate 
     governance.
       (b) Specific Requirements.--The standards established under 
     subsection (a) shall include the following:
       (1) Limits on compensation that exclude incentives for 
     senior executive officers of a recipient of a loan under this 
     Act to take unnecessary and excessive risks that threaten the 
     value of such recipient during the period that the loan is 
     outstanding.
       (2) 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.
       (3) A prohibition on such recipient making any golden 
     parachute payment to a senior executive officer during the 
     period that the loan under this Act is outstanding.
       (4) A prohibition on such recipient paying or accruing any 
     bonus or incentive compensation during the period that the 
     loan under this Act is outstanding to any executive whose 
     annual base compensation exceeds $250,000 (which amount shall 
     be adjusted by the Secretary for inflation).
       (5) A prohibition on any compensation plan that could 
     encourage manipulation of the reported earnings of the 
     recipient to enhance compensation of any of its employees.

     SEC. 8. PROHIBITION ON THE USE OF LOAN PROCEEDS FOR LOBBYING 
                   ACTIVITIES.

       (a) In General.--A recipient of a loan under this Act may 
     not use such funds for any lobbying expenditures or political 
     contributions.
       (b) Definitions.--In this section:
       (1) Lobbying expenditures.--The term ``lobbying 
     expenditures'' has the meaning given the term in section 
     4911(c)(1) of the Internal Revenue Code of 1986.
       (2) Political contributions.--The term ``political 
     contribution'' means any contribution on behalf of a 
     political candidate or to a separate segregated fund 
     described in section 316(b)(2)(C) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 441b(b)(2)(C)).

     SEC. 9. PROHIBITION ON PAYMENT OF DIVIDENDS.

       No common stock dividends may be paid by any recipient of a 
     loan under this Act for the duration of the loan.

     SEC. 10. AUTO INDUSTRY EMERGENCY BRIDGE LOAN OVERSIGHT BOARD.

       (a) Establishment.--There is established the Auto Industry 
     Emergency Bridge Loan Oversight Board (in this section 
     referred to as the ``Board''), which shall be responsible for 
     reviewing and providing advice concerning the exercise of 
     authority under this Act, including--
       (1) the progress of the applicant in meeting the 
     performance goals and milestones under its financial 
     viability plan required under section 4;
       (2) recommending changes, as necessary and appropriate, to 
     the Secretary in meeting the goals and milestones under the 
     financial viability plan, and senior management and board of 
     directors to the automobile manufacturers and component 
     suppliers assisted under this Act; and
       (3) reporting any suspected fraud, misrepresentation, or 
     malfeasance to the Inspector General of the Department of 
     Commerce or the Attorney General of the United States, 
     consistent with section 535(b) of title 28, United States 
     Code.
       (b) Membership.--The Board shall be comprised of--
       (1) the Secretary of Commerce;
       (2) the Secretary of Energy;
       (3) the Secretary of Transportation;
       (4) the Secretary of the Treasury;
       (5) the Secretary of Labor; and
       (6) the Administrator of the Environmental Protection 
     Agency.
       (c) Chairperson.--The chairperson of the Board shall be the 
     Secretary of Commerce.
       (d) Meetings.--The Board shall meet--
       (1) not later than 14 days after the first disbursement of 
     funds provided under this Act; and
       (2) not less frequently than monthly thereafter.
       (e) Reports.--The Board shall report to the appropriate 
     committees of Congress, not less frequently than quarterly, 
     on the matters described under this section.
       (f) Oversight of Transactions and Financial Condition.--
       (1) Duty to inform.--During the period in which any loan 
     extended under this Act remains outstanding, the recipient of 
     such

[[Page S10750]]

     loan shall promptly inform the Secretary and the Board of--
       (A) any asset sale, investment, or commitment for any asset 
     sale or investment proposed to be entered into by such 
     recipient that has a value in excess of $25,000,000; and
       (B) any other material change in the financial condition of 
     such recipient.
       (2) Authority of the secretary.--During the period in which 
     any loan extended under this Act remains outstanding, the 
     Secretary, in consultation with the Board, may--
       (A) promptly review any asset sale or investment described 
     in paragraph (1) or any commitment for such asset sale or 
     investment; and
       (B) direct the recipient of the loan that it should not 
     consummate such proposed sale or investment or commitment for 
     such sale or investment.
       (3) Regulations.--The Board may establish, by regulation, 
     procedures for conducting any review under this subsection.
       (g) Termination.--The Board, and its authority under this 
     section, shall terminate not later than 6 months after the 
     date on which the last loan amounts under this section are 
     repaid.

     SEC. 11. PRIORITIZATION OF LOAN ALLOCATIONS.

       In allocating loan amounts under this Act, the Secretary 
     shall consider 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.

     SEC. 12. RATE OF INTEREST.

       The annual rate of interest for a loan under this Act shall 
     be--
        (a) 5 percent during the 5-year period beginning on the 
     date on which the Secretary disburses the loan; and
       (b) 9 percent after the end of the period described in 
     paragraph (1).

     SEC. 13. NO PREPAYMENT PENALTY.

       A loan made under this Act shall be prepayable without 
     penalty at any time.

     SEC. 14. DISCHARGE.

       A discharge under title 11, United States Code, shall not 
     discharge the borrower from any debt for funds authorized to 
     be disbursed under this Act.

     SEC. 15. FEES.

       (a) In General.--The Secretary may charge and collect fees 
     for disbursements under this Act in amounts that the 
     Secretary determines are sufficient to cover applicable 
     administrative expenses.
       (b) Availability.--Fees collected under this section--
       (1) shall be deposited by the Secretary into the Treasury 
     of the United States;
       (2) shall be used by the Secretary to pay administrative 
     expenses of making awards and loans under this Act; and
       (3) shall remain available until expended, without further 
     appropriation.

     SEC. 16. JUDICIAL REVIEW AND RELATED MATTERS.

       (a) Standards.--Actions by the Secretary pursuant to the 
     authority of this Act shall be subject to chapter 7 of title 
     5, United States Code, including that such final actions 
     shall be held unlawful and set aside if found to be 
     arbitrary, capricious, an abuse of discretion, or not in 
     accordance with law.
       (b) Limitations on Equitable Relief.--
       (1) Injunction.--No injunction or other form of equitable 
     relief shall be issued against the Secretary for actions 
     pursuant to this Act, other than to remedy a violation of the 
     Constitution.
       (2) Temporary restraining order.--Any request for a 
     temporary restraining order against the Secretary for actions 
     pursuant to this Act shall be considered and granted or 
     denied by the court within 3 days of the date of the request.
       (3) Preliminary injunction.--Any request for a preliminary 
     injunction against the Secretary for actions pursuant to this 
     Act shall be considered and granted or denied by the court on 
     an expedited basis consistent with the provisions of rule 
     65(b)(3) of the Federal Rules of Civil Procedure, or any 
     successor to such rule.
       (4) Permanent injunction.--Any request for a permanent 
     injunction against the Secretary for actions pursuant to this 
     Act shall be considered and granted or denied by the court on 
     an expedited basis. Whenever possible, the court shall 
     consolidate trial on the merits with any hearing on a request 
     for a preliminary injunction, consistent with the provisions 
     of rule 65(a)(2) of the Federal Rules of Civil Procedure, or 
     any successor to such rule.
       (5) Limitation on actions by participating companies.--No 
     action or claims may be brought against the Secretary by any 
     person that divests its assets with respect to its 
     participation in a program under this Act, except as provided 
     in paragraph (1), other than as expressly provided in a 
     written contract with the Secretary.
       (6) Stays.--Any injunction or other form of equitable 
     relief issued against the Secretary for actions pursuant to 
     this Act shall be automatically stayed. The stay shall be 
     lifted, unless the Secretary seeks a stay from a higher court 
     within 3 calendar days after the date on which the relief is 
     issued.
       (c) Savings Clause.--Any exercise of the authority of the 
     Secretary pursuant to this section shall not impair the 
     claims or defenses that would otherwise apply with respect to 
     persons other than the Secretary.

     SEC. 17. FUNDING.

       (a) In General.--The $7,500,000,000 appropriated for fiscal 
     year 2009 for direct loans under section 129 of the 
     Consolidated Security, Disaster Assistance, and Continuing 
     Appropriations Act, 2009 (division A of Public Law 110-329) 
     is rescinded.
       (b) Appropriations.--There is appropriated to the Secretary 
     of Commerce $7,500,000,000 to the ``Department of Commerce - 
     Emergency Bridge Loan Program Account'' for the cost of 
     direct loans authorized under this Act, which shall remain 
     available until expended. Commitments for direct loans using 
     such amount shall not exceed $25,000,000,000 in total loan 
     principal. The cost of such direct loans, including the cost 
     of modifying such loans, shall be calculated in accordance 
     with section 502 of the Congressional Budget Act of 1974 (2 
     U.S.C. 661a).
       (c) Transfers for Direct Loans.--Following the receipt of a 
     notice from the Secretary of Energy certifying the approval 
     of a loan under the program authorized under section 136 of 
     the Energy Independence and Security Act of 2007 (Public Law 
     110-140; 42 U.S.C. 17013), the Secretary may transfer amounts 
     made available under this Act to the Secretary of Energy, in 
     an amount sufficient for the cost of the direct loans if such 
     transfer would not cause the Secretary to exceed the total 
     appropriation and total commitment level authorized under 
     subsection (b). Any amounts so transferred shall be available 
     to the Secretary of Energy without fiscal year limitation and 
     subject to the terms and conditions described in section 129 
     of the Consolidated Security, Disaster Assistance, and 
     Continuing Appropriations Act, 2009.
       (d) Use of Remaining Amounts.--Amounts appropriated under 
     subsection (b) which remain available after March 31, 2009, 
     shall be transferred to the Secretary of Energy and shall be 
     used to carry out section 136 of the Energy Independence and 
     Security Act of 2007, subject to the terms and conditions 
     described in section 129 of the Consolidated Security, 
     Disaster Assistance, and Continuing Appropriations Act, 2009.

     SEC. 18. COORDINATION WITH OTHER LAWS REGARDING PROMOTION OF 
                   ADVANCED TECHNOLOGY VEHICLE MANUFACTURING.

       Nothing in the Act may be construed as altering, affecting, 
     or superseding the provisions of section 136 of the Energy 
     Independence and Security Act of 2007, relating to the 
     technology requirements for energy efficient vehicles.
                                 ______
                                 
      By Mrs. McCASKILL (for herself, Mr. Grassley, Ms. Collins, Mr. 
        Lieberman, and Mr. Bunning):
  S. 3716. A bill to amend the Emergency Economic Stabilization Act of 
2008 (Public Law 110-343) to provide the Special Inspector General with 
additional personnel, audit, and investigation authorities; to the 
Committee on Banking, Housing, and Urban Affairs.
  Mr. GRASSLEY. Mr. President, seven weeks ago Congress faced an 
extremely difficult decision of whether or not to pass an unprecedented 
$700 billion economic stabilization bill to help our Nation's economy 
and financial markets. The Emergency Economic Stabilization Act, the 
Act, passed by Congress and signed into law by the President, was 
designed to provide new, expanded authority to the Department of the 
Treasury to take immediate action to stabilize our financial markets by 
purchasing troubled assets through a program called the Troubled Asset 
Relief Program or TARP. This new authority was designed to stop the 
continued declines in the financial services industry and the credit 
markets.
  Like many of the thousands of constituents from Iowa I've heard from, 
I shared their concerns that the stabilization plan put hundreds of 
billions of taxpayer dollars at risk. During the debate on this 
legislation I made it clear that I would only support this package if 
it included significant checks on the spending through various 
oversight mechanisms. I wanted to make sure the legislation wasn't a 
blank check for Government bureaucrats to spend taxpayer dollars with 
impunity. I'm glad that Congress listened to my concerns and I'm glad 
that specific oversight reforms I recommended were included in the 
final package. For instance, the creation of a Special Inspector 
General for the Troubled Assets Relief Program (Inspector General) was 
something I worked to include in the final legislation to ensure that 
an independent watchdog would be looking out for taxpayer funds 
allocated to the TARP.
  The legislation also has a number of additional oversight provisions 
such as the creation of a Financial Stability Oversight Board that is 
responsible for reviewing the exercise of the program to ensure the 
Treasury is operating as

[[Page S10751]]

envisioned. Additionally, the legislation included provisions requiring 
regular reports from the Treasury to Congress, Tranche reports 
outlining any assets Treasury chooses to purchase, and reports from the 
Comptroller General at the Government Accountability Office. The Act 
also places controls on executive compensation and corporate governance 
at participating entities. Taken together, these provisions were aimed 
to provide a sturdy foundation for ensuring the program is properly 
overseen.
  However, despite these controls, many of these oversight provisions 
have been slowly implemented or outright ignored until recently. To 
date, the Senate has only held hearings on the nomination for the 
Special Inspector General and it is unclear when the nomination will be 
approved. Until then, the Inspector General at the Department of the 
Treasury has devoted some resources to overseeing the TARP, but we need 
to act expeditiously to approve the Special Inspector General to ensure 
someone is watching over all these taxpayer funds.
  I do believe once we confirm a nominee to be the Special Inspector 
General that this office will face an uphill battle to work quickly to 
hire staff and to get operations moving to find out where all the 
billions of dollars are and how they were spent. This isn't an 
impossible task, but it is one that will take serious effort and great 
leadership to accomplish.
  One concern I have with the Special Inspector General is the lack of 
authority that office will have to oversee the TARP and new, evolving 
programs under the TARP such as the Capital Purchase Plan, or CPP. The 
Secretary of the Treasury has indicated publicly that he intends to 
continue utilizing his authority under the Act to use the TARP and the 
CPP to continue to provide taxpayer funds via equity injections and 
stock warrant purchases to banks, financial institutions, and other 
entities, as opposed to purchasing distressed assets as the TARP was 
originally envisioned. While the Secretary is acting within his 
authority, this change was not necessarily envisioned from the 
oversight perspective when the Special Inspector General authorization 
was drafted. Instead, the current Act could be construed to only give 
the Special Inspector General the authority to review purchases of 
distressed assets and not the purchases and equity injections currently 
ongoing under the CPP. As a result, the Special Inspector General could 
be limited in authority to review the TARP before he takes office.
  To rectify this, Senator McCaskill and I are here today to introduce 
a simple legislative fix to this provision that would amend the Act to 
allow the Special Inspector General to review all actions taken under 
the TARP, including those of the CPP. This is a straight forward 
solution to ensure that the Special Inspector General has all the 
authority necessary to oversee the taxpayer dollars that are being used 
to stabilize the financial industry.
  This legislation makes one other change to the Act that will help the 
Special Inspector General hit the ground running once the Senate 
confirms the nomination. Looking back to the last Special Inspector 
General Congress created, the Special Inspector General for Iraq 
Reconstruction, SIGIR, we noted that Congress provided SIGIR the 
authority to utilize special hiring authority to fill these important 
jobs quickly and not have them tied up in bureaucratic red tape. This 
section of our bill simply states that the Special Inspector General 
may utilize special expedited hiring authority authorized under 5 
U.S.C. Sec. 3161 for the first six months after the date of enactment 
to get the office up and running. Further, the section also removes 
statutory limits for how long these special appointments may serve 
because we do not want to limit the length of time these employees can 
work for the Special Inspector General given we don't know how long 
they will be needed to oversee this program.
  Taken together, these two simple provisions are necessary to ensure 
that the Special Inspector General is the aggressive, independent 
watchdog we envisioned when we passed the Act and not just a paper 
tiger. As a long time supporter of Inspectors General, I believe this 
legislation is necessary to ensure the success of the Special Inspector 
General. I urge my colleagues to support this urgent legislative fix to 
help ensure that American taxpayer dollars are not lost to fraud, 
waste, or abuse because of a simple oversight in the drafting of the 
original legislation.
                                 ______
                                 
      By Ms. STABENOW (for herself and Mr. Cornyn):
  S. 3717. A bill to amend the Internal Revenue Code of 1986 to allow 
reimbursement from flexible spending accounts for certain dental 
products; to the Committee on Finance.
  Mr. CORNYN. Mr. President, I am pleased to join my colleague, Ms. 
Stabenow, in introducing the Dental Health Promotion Act of 2008. This 
bill would make expenditures on dental products used to prevent or 
treat diseases of the mouth to be considered ``qualified'' medical 
expenses eligible for reimbursement from a flexible spending 
arrangement, FSA. It is identical to H.R. 3109, which was introduced in 
the House of Representatives in July 2007.
  FSAs are vehicles that allow individuals to use pretax dollars to pay 
for ``qualified'' medical and dental expenses that are not reimbursed 
by other sources, such as a health insurance plan. Qualified medical 
and dental expenses are defined in Section 213(d) of the Internal 
Revenue Code and its accompanying regulations and include prescription 
and over-the-counter products. For example, an individual can use FSA 
dollars to pay for items such as cold medicine, Band-Aids, or pain 
relievers. In addition, some dental expenses are currently 
reimbursable, such as a crown or a regular dental checkup. But the 
money spent on dental products such as fluoride toothpaste, a spin 
toothbrush, or dental floss is not currently reimbursable, even though 
they help prevent tooth decay. In fact, toothpaste is specifically 
excluded from the definition of a qualified expense.
  I believe this is an inequity in our tax law that needs to be 
corrected. More and more medical research is demonstrating the link 
between good oral health and overall health. For example, research 
shows that pregnant women with poor oral health tend to deliver lower 
birth rate babies. Unfortunately, the definition of dental expenses has 
not kept up with medical research.
  The legislation Senator Stabenow and I are introducing today would 
update the rules governing FSAs to ensure that funds spent on dental 
products used to treat or prevent oral disease are treated the same as 
other over-the-counter medical expenses. For those concerned about 
abuse, this bill makes it clear that money spent on cosmetic products 
would not be considered a qualified expense that can be reimbursed by 
an FSA.
  Mr. President, it makes sense to invest in disease prevention on the 
front end. Allowing individuals to set aside money in their FSA to pay 
for dental products that can help prevent cavity or periodontal disease 
will help to reduce future expenditures on more costly treatments.

                          ____________________