[House Report 111-231]
[From the U.S. Government Publishing Office]


111th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    111-231

======================================================================


 
REQUESTING THAT THE PRESIDENT TRANSMIT TO THE HOUSE OF REPRESENTATIVES 
    ALL INFORMATION IN HIS POSSESSION RELATING TO CERTAIN SPECIFIC 
COMMUNICATIONS WITH AND FINANCIAL ASSISTANCE PROVIDED TO GENERAL MOTORS 
                      CORPORATION AND CHRYSLER LLC

                                _______
                                

   July 24, 2009.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

 Mr. Frank of Massachusetts, from the Committee on Financial Services, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                       [To accompany H. Res. 591]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Financial Services, to whom was referred the 
resolution (H. Res. 591) requesting that the President transmit 
to the House of Representatives all information in his 
possession relating to certain specific communications with and 
financial assistance provided to General Motors Corporation and 
Chrysler LLC, having considered the same, report favorably 
thereon with an amendment and recommend that the resolution be 
agreed to.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     3
Committee Consideration..........................................     3
Committee Votes..................................................     3
Committee Oversight Findings.....................................     3
Performance Goals and Objectives.................................     3
New Budget Authority, Entitlement Authority, and Tax Expenditures     4
Federal Mandates Statement.......................................     4
Advisory Committee Statement.....................................     4
Applicability to Legislative Branch..............................     4
Earmark Identification...........................................     4
Section by Section Analysis of the Legislation...................     4
Additional Views.................................................     6
  The amendment is as follows:
  Strike all after the resolving clause and insert the 
following:

  That the House of Representatives requests that the President 
transmit to the House of Representatives not later than 14 days after 
the date of the adoption of this resolution, copies of any portions of 
all documents, records, and communications in his possession referring 
or relating to--
          (1) the role of the Presidential Task Force on the Auto 
        Industry (hereafter referred to as ``Task Force'') in 
        negotiating, reviewing, approving, or relating in any other 
        aspect to the plans for reorganization or restructuring in 
        connection with proceedings commenced during 2009 under chapter 
        11, of title 11, United States Code, with respect to General 
        Motors Corporation and Chrysler LLC (hereafter in this 
        resolution referred to as ``General Motors'' and ``Chrysler'', 
        respectively);
          (2) the interaction of the Task Force with any other entity 
        to identify which vehicle dealerships of General Motors or 
        Chrysler would be selected for closure in connection with such 
        plans of reorganization or restructuring, and which would be 
        specifically selected for exemption from such closure, and 
        procedures and processes for making such determinations;
          (3) the role of the Task Force in negotiating, reviewing, 
        approving, determining, or in any other aspect relating to, 
        levels of and reductions in the employee and retiree benefits 
        of General Motors' and Delphi Corporation's salaried employees 
        and retirees, non-union hourly retirees, and each union with 
        members employed by the companies, and in establishing the new 
        Voluntary Employee Beneficiary Association;
          (4) the President's role in determining any vehicle 
        dealership closures and plant closings;
          (5) the role of the Task Force in negotiating, reviewing, 
        approving, or in any other aspect relating to, agreements 
        whereby--
                  (A) the United Auto Workers, or any trust of the 
                United Auto Workers, would end up owning a certain 
                percentage of General Motors or Chrysler post-
                bankruptcy, including any document, record, or 
                communication discussing how such determination was 
                made or percentage arrived at; and
                  (B) as part of the restructuring of General Motors 
                and Chrysler, bondholders of each respective company 
                would end up owning a certain percentage of each 
                respective company, including any document, record, or 
                communication discussing how such determination was 
                made or percentage arrived at;
          (6) the decision of the President to forgive any loans made 
        by the United States to General Motors or Chrysler under the 
        Troubled Assets Relief Program (TARP) in title I of the 
        Emergency Economic Stabilization Act of 2008;
          (7) any decision or determination relating to the authority 
        under such Act to provide financial assistance to General 
        Motors or Chrysler, specifically any determination regarding 
        whether General Motors or Chrysler were lawfully eligible to 
        receive such assistance based on the definition of ``financial 
        institution'' under that Act; and
          (9) actual payments made by the United States to automobile 
        manufacturers pursuant to such Act, including any schedule of 
        payments, and the terms and conditions governing any such 
        payments.

                          PURPOSE AND SUMMARY

    House Resolution 591 requests that the President transmit 
to the House of Representatives all information in his 
possession relating to certain specific communications with and 
financial assistance provided to General Motors Corporation and 
Chrysler LLC.

                  BACKGROUND AND NEED FOR LEGISLATION

    H. Res. 591, introduced by Mr. Boehner on June 26th and 
referred to the Committee on Financial Services, qualifies as a 
resolution of inquiry. Under clause 7 of rule XIII of the Rules 
of the House of Representatives, such a resolution must be 
reported by the Committee within 14 legislative days of its 
introduction. If the Committee does not file its report within 
that time, a motion to discharge the Committee from further 
consideration of the resolution becomes privileged on the 
floor.
    Under the Rules and precedents of the House, a resolution 
of inquiry is one of the methods used by the House to obtain 
information from the executive branch. According to volume 7, 
chapter 24, section 8 of Deschler's Procedure, it is a ``simple 
resolution making a direct request or demand of the President 
or the head of an executive department to furnish the House of 
Representatives with specific factual information in the 
possession of the executive branch.''
    The Committee requests that the President transmit copies 
of any portions of all documents, records and communications 
not covered by established privilege when complying with the 
resolution. The Chair noted that he would not convene the 
Committee for a contempt proceeding if information were 
withheld properly according to established privileges.

                                HEARINGS

    The Committee has held no hearings on H. Res. 591.

                        COMMITTEE CONSIDERATION

    The Committee on Financial Services met in open session on 
July 17, 2009, ordered H. Res. 591, as amended, reported to the 
House with a favorable recommendation.

                            COMMITTEE VOTES

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. No 
record votes were taken during the Committee's consideration of 
this legislation. A motion by Mr. Frank to report the 
resolution, as amended, to the House with a favorable 
recommendation was agreed to by a voice vote, a quorum being 
present.
    During the consideration of the resolution, an amendment 
offered by Mr. Lee, No. 1, regarding the role of the Task Force 
regarding Delphi Corporation and its employees and unions, was 
agreed to by a voice vote.

                      COMMITTEE OVERSIGHT FINDINGS

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee made findings and 
recommendations of the Committee, based on oversight activities 
under clause 2(b)(1) of rule X of the Rules of the House of 
Representatives, are incorporated into the descriptive portions 
of this report.

                    PERFORMANCE GOALS AND OBJECTIVES

    Consistent with clause 3(c)(4) of rule XIII of the Rules of 
the House of Representatives, the Committee establishes the 
following performance related goals and objectives for this 
legislation:
    H. Res. 591, requests that the President transmit to the 
House of Representatives all information in his possession 
relating to certain specific communications with and financial 
assistance provided to General Motors Corporation and Chrysler 
LLC.

   NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that this 
legislation would result in no new budget authority, 
entitlement authority, or tax expenditures or revenues.

                       FEDERAL MANDATES STATEMENT

    H. Res. 591 contains no unfunded mandates.

                      ADVISORY COMMITTEE STATEMENT

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  APPLICABILITY TO LEGISLATIVE BRANCH

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

                         EARMARK IDENTIFICATION

    H. Res. 591 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI.

             SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

    H. Res. 591 requests that the President transmit to the 
House of Representatives not later than 14 days after the date 
of the adoption of this resolution, copies of any portions of 
all documents, records, and communications in his possession 
referring or relating to--
    (1) the role of the Presidential Task Force on the Auto 
Industry (hereafter referred to as `Task Force') in 
negotiating, reviewing, approving, or relating in any other 
aspect to the plans for reorganization or restructuring in 
connection with proceedings commenced during 2009 under chapter 
11, of title 11, United States Code, with respect to General 
Motors Corporation and Chrysler LLC (hereafter in this 
resolution referred to as `General Motors' and `Chrysler', 
respectively);
    (2) the interaction of the Task Force with any other entity 
to identify which vehicle dealerships of General Motors or 
Chrysler would be selected for closure in connection with such 
plans of reorganization or restructuring, and which would be 
specifically selected for exemption from such closure, and 
procedures and processes for making such determinations;
    (3) the role of the Task Force in negotiating, reviewing, 
approving, determining, or in any other aspect relating to, 
levels of and reductions in the employee and retiree benefits 
of General Motors' and Delphi Corporation's salaried employees 
and retirees, non-union hourly retirees, and each union with 
members employed by the companies, and in establishing the new 
Voluntary Employee Beneficiary Association;
    (4) the President's role in determining any vehicle 
dealership closures and plant closings;
    (5) the role of the Task Force in negotiating, reviewing, 
approving, or in any other aspect relating to, agreements 
whereby--
    (A) the United Auto Workers, or any trust of the United 
Auto Workers, would end up owning a certain percentage of 
General Motors or Chrysler post-bankruptcy, including any 
document, record, or communication discussing how such 
determination was made or percentage arrived at; and
    (B) as part of the restructuring of General Motors and 
Chrysler, bondholders of each respective company would end up 
owning a certain percentage of each respective company, 
including any document, record, or communication discussing how 
such determination was made or percentage arrived at;
    (6) the decision of the President to forgive any loans made 
by the United States to General Motors or Chrysler under the 
Troubled Assets Relief Program (TARP) in title I of the 
Emergency Economic Stabilization Act of 2008;
    (7) any decision or determination relating to the authority 
under such Act to provide financial assistance to General 
Motors or Chrysler, specifically any determination regarding 
whether General Motors or Chrysler were lawfully eligible to 
receive such assistance based on the definition of `financial 
institution' under that Act; and
    (8) actual payments made by the United States to automobile 
manufacturers pursuant to such Act, including any schedule of 
payments, and the terms and conditions governing any such 
payments.

                            ADDITIONAL VIEWS

    We support the Republican Leader's sensible and timely 
Resolution of Inquiry that requests that the President transmit 
to the House of Representatives any and all information 
regarding the government's role in negotiating the 
restructurings of General Motors Corp. and Chrysler LLC. Before 
approving the resolution, the Committee adopted an amendment 
offered by Mr. Lee of New York specifically requesting 
information from the Automotive Task Force on decisions related 
to employee and retiree benefits at Delphi Corporation, which 
is GM's largest parts supplier. The amendment assures that 
Congress will examine whether the Task Force accounted for both 
hourly and salaried employees' pension benefits and the impact 
of having pensions turned over to the PBGC.
    When its restructuring plan was first announced, GM agreed 
to assume the pension benefits of Delphi's hourly workers, 
while the salaried workers would have had their pensions turned 
over to the federally-chartered Pension Benefit Guaranty 
Corporation (PBGC).
    However, Delphi announced on July 22, 2009, that GM has 
backed out of its plan to assume the pensions of hourly 
retirees. The PBGC has filed suit to take over the benefits of 
all of the company's roughly 70,000 workers.
    Combined, Delphi's hourly and salaried plans have a funding 
shortfall of $6.8 billion, $6.2 billion of which will be 
covered by the PBGC. Payments by the agency are capped by law 
depending upon a retiree's age. Under this plan, Delphi 
retirees stand to lose as much as 70 percent of their pension 
payments.
    These retirees are hard-working Americans who certainly 
understand the need to make sacrifices to ensure a better, 
stronger economy over the long-term. They did not, however, 
sign up for having the benefits they earned, the benefits they 
counted on, being taken from them. A broad bipartisan coalition 
of lawmakers in the House has worked hard to stand up for these 
retirees and give them a voice in Washington. As 60 percent 
owners in the new GM, they, their families, and American 
taxpayers have a right to demand a substantive explanation on 
how the Task Force reached these decisions.
    At the committee markup, Chairman Frank pledged to help 
ensure that a hearing is held on this matter before the House 
adjourns for the August District Work Period. We look forward 
to working with him to see that this hearing occurs in short 
order.

            Signed,
                                   Christopher Lee.
                                   Spencer Bachus.
                                   John Campbell.
                                   Thaddeus McCotter.
                                   Peter King.
                                   Judy Biggert.
                                   Daniel B. Maffei.
                                   Joe Baca.
                                   Travis W. Childers.
                                   Mary J. Kilroy.
                                   Gary C. Peters.
                                   Carolyn B. Maloney.
                                   Charles A. Wilson.
                                   Paul Hodes.
                                   Steve Driehaus.
                                   Alan Grayson.

                                  
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