[Congressional Record Volume 155, Number 107 (Thursday, July 16, 2009)]
[Extensions of Remarks]
[Page E1825]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


   H. RES. 644, RULE ON CONSIDERATION OF THE BILL (H.R. 3170) MAKING 
 APPROPRIATIONS FOR FINANCIAL SERVICES AND GENERAL GOVERNMENT FOR THE 
                 FISCAL YEAR ENDING SEPTEMBER 30, 2010

                                 ______
                                 

                               speech of

                        HON. SHEILA JACKSON-LEE

                                of texas

                    in the house of representatives

                        Thursday, July 16, 2009

  Ms. JACKSON-LEE of Texas. Madam Speaker, I rise in support of the 
Rule for consideration of H.R. 3170 making appropriations for financial 
services and general government for the fiscal year ending September 
30, 2010.
  The Financial Services Appropriations bill is a key part of efforts 
to restore the stability of, and the public confidence in, America's 
financial institutions. It makes needed investments in strengthening 
the Securities and Exchange Commission's ability to enforce rules that 
govern investments and financial markets and to detect and prosecute 
fraudulent schemes, and it permits the District of Columbia to continue 
operating in accordance with the decisions and policies established by 
its own local leadership.
  Along with these issues, the bill also supports America's auto 
dealers. Specifically, it requires automobile companies who have taken 
federal funding to reinstitute agreements with dealerships they have 
dropped in recent bankruptcy proceedings. As you know, this country 
made an investment in General Motors and Chrysler, two of the nation's 
largest manufacturers. Given the potential impact to workers as well as 
car dealers, many of whom are in my district in Houston, I supported 
this government investment. However, in the aftermath, nearly 3000 auto 
dealers today face extinction. The restructuring with GM and Chrysler 
have cost these dealers their right to continue selling these cars. 
This bill simply provides dealers the same rights they would have had 
before GM and Chrysler's bankruptcy proceedings started.
  Previously GM and Chrysler had notified arbitrary dealers that their 
relationship was ending, essentially immediately, leaving dealers with 
millions of dollars invested in car stock, no options for consolidation 
and little leverage for liquidation. There was no transparency to the 
system that shut down many profitable dealerships that have been local 
institutions for decades, and no proof from auto makers that shutting 
down those dealerships will actually be financially beneficial to the 
makers. This legislation builds on the efforts of Congress in a letter 
sent to the Treasury Department Auto Task Force on May 19, and a letter 
sent to President Obama today.
  We all recognize that the economy is not favorable to the auto 
industry right now: we have already seen layoffs from manufacturers and 
we expect to see many dealerships consolidate and close this year. 
However, forced, arbitrary closure of dealers by manufacturers will not 
necessarily be financially beneficial to automakers, and it certainly 
will not help the local economies where dealers are integral to the 
business community. These dealerships employ hundreds of people across 
my district in good-paying jobs, they sponsor our community services 
projects in Houston and across the country; moreover, these dealers 
have been household names for generations.
  Some may say that auto dealers are standing in the way of change. I 
say they want change in the industry, and in fact they want only to be 
a part of that change. Each car dealer represents dozens of employees 
left without income or health care, and a major hit to the local 
economies of these towns. At a time when our nation is reeling from the 
loss of hundreds of thousands of jobs each month and struggling to 
address health care reform, I congratulate Mr. Serrano and his staff in 
working to craft legislation to prevent hundreds of dealerships from 
shuttering their doors. Madam Speaker, I support the resolution, the 
underlying bill, and America's auto dealers and I ask my colleagues to 
do the same.