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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3688 Placed on Calendar Senate (PCS)]

                                                       Calendar No. 121
110th CONGRESS
  2d Session
                                S. 3688

To provide for additional emergency unemployment compensation, to amend 
the Emergency Economic Stabilization Act of 2008 to authorize loans to 
    automobile manufacturers and component suppliers, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

           November 17 (legislative day, September 17), 2008

 Mr. Reid introduced the following bill; which was read the first time

                           November 18, 2008

Read the second time and placed on the calendar under authority of the 
  order of the Senate of November 17 (legislative day, September 17), 
                                  2008

_______________________________________________________________________

                                 A BILL

 
To provide for additional emergency unemployment compensation, to amend 
the Emergency Economic Stabilization Act of 2008 to authorize loans to 
    automobile manufacturers and component suppliers, and for other 
                               purposes.

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

                   TITLE I--UNEMPLOYMENT COMPENSATION

SEC. 101. SHORT TITLE.

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

SEC. 102. ADDITIONAL FIRST-TIER BENEFITS.

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

SEC. 103. SECOND-TIER BENEFITS.

    Section 4002 of the Supplemental Appropriations Act, 2008 (26 
U.S.C. 3304 note) is amended by adding at the end the following:
    ``(c) Special Rule.--
            ``(1) In general.--If, at the time that the amount 
        established in an individual's account under subsection (b)(1) 
        is exhausted or at any time thereafter, such individual's State 
        is in an extended benefit period (as determined under paragraph 
        (2)), such account shall be augmented by an amount equal to the 
        lesser of--
                    ``(A) 50 percent of the total amount of regular 
                compensation (including dependents' allowances) payable 
                to the individual during the individual's benefit year 
                under the State law, or
                    ``(B) 13 times the individual's average weekly 
                benefit amount (as determined under subsection (b)(2)) 
                for the benefit year.
            ``(2) Extended benefit period.--For purposes of paragraph 
        (1), a State shall be considered to be in an extended benefit 
        period, as of any given time, if--
                    ``(A) such a period is then in effect for such 
                State under the Federal-State Extended Unemployment 
                Compensation Act of 1970;
                    ``(B) such a period would then be in effect for 
                such State under such Act if section 203(d) of such 
                Act--
                            ``(i) were applied by substituting `4' for 
                        `5' each place it appears; and
                            ``(ii) did not include the requirement 
                        under paragraph (1)(A) thereof; or
                    ``(C) such a period would then be in effect for 
                such State under such Act if--
                            ``(i) section 203(f) of such Act were 
                        applied to such State (regardless of whether 
                        the State by law had provided for such 
                        application); and
                            ``(ii) such section 203(f)--
                                    ``(I) were applied by substituting 
                                `6.0' for `6.5' in paragraph (1)(A)(i) 
                                thereof; and
                                    ``(II) did not include the 
                                requirement under paragraph (1)(A)(ii) 
                                thereof.
            ``(3) Limitation.--The account of an individual may be 
        augmented not more than once under this subsection.''.

SEC. 104. PHASEOUT PROVISIONS.

    Section 4007(b) of the Supplemental Appropriations Act, 2008 (26 
U.S.C. 3304 note) is amended--
            (1) in paragraph (1), by striking ``paragraph (2),'' and 
        inserting ``paragraphs (2) and (3),''; and
            (2) by striking paragraph (2) and inserting the following:
            ``(2) No augmentation after march 31, 2009.--If the amount 
        established in an individual's account under subsection (b)(1) 
        is exhausted after March 31, 2009, then section 4002(c) shall 
        not apply and such account shall not be augmented under such 
        section, regardless of whether such individual's State is in an 
        extended benefit period (as determined under paragraph (2) of 
        such section).
            ``(3) Termination.--No compensation under this title shall 
        be payable for any week beginning after August 27, 2009.''.

SEC. 105. TEMPORARY FEDERAL MATCHING FOR THE FIRST WEEK OF EXTENDED 
              BENEFITS FOR STATES WITH NO WAITING WEEK.

    With respect to weeks of unemployment beginning after the date of 
the enactment of this Act and ending on or before December 8, 2009, 
subparagraph (B) of section 204(a)(2) of the Federal-State Extended 
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) shall not 
apply.

SEC. 106. EFFECTIVE DATE.

    (a) In General.--The amendments made by sections 102, 103, and 104 
shall apply as if included in the enactment of the Supplemental 
Appropriations Act, 2008, subject to subsection (b).
    (b) Additional Benefits.--In applying the amendments made by 
sections 102 and 103, any additional emergency unemployment 
compensation made payable by such amendments (which would not otherwise 
have been payable if such amendments had not been enacted) shall be 
payable only with respect to any week of unemployment beginning on or 
after the date of the enactment of this Act.

           TITLE II--AUTOMOBILE INDUSTRY EMERGENCY ASSISTANCE

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

    (a) In General.--The Emergency Economic Stabilization Act of 2008 
(division A of Public Law 110-343) is amended by adding at the end the 
following:

               ``TITLE IV--DIRECT BRIDGE LOAN PROVISIONS

``SEC. 401. FINDINGS.

    ``Congress finds that extraordinary and exigent circumstances have 
prevented the automobile industry from securing essential credit and 
liquidity from other sources and that the failure of the automobile 
industry to obtain such credit and liquidity will have a systemic 
adverse effect on the economy.

``SEC. 402. PURPOSES.

    ``The purposes of this title are--
            ``(1) to clarify that authority and facilities are 
        available to be used immediately by the Secretary to restore 
        liquidity and stability to the automobile industry in the 
        United States;
            ``(2) to ensure that such authority and such facilities are 
        used in a manner that--
                    ``(A) stimulates manufacturing and sales of 
                automobiles produced by automobile manufacturers in the 
                United States;
                    ``(B) enhances the ability and the capacity of the 
                domestic automobile industry to pursue the timely and 
                aggressive production of energy-efficient advanced 
                technology vehicles;
                    ``(C) preserves and promotes the jobs of 355,000 
                workers in the United States directly employed by the 
                automobile industry and an additional 4,500,000 workers 
                in the United States employed in related industries; 
                and
                    ``(D) safeguards the ability of the domestic 
                automobile industry to provide retirement and health 
                care benefits for 1,000,000 retirees and their spouses 
                and dependents; and
            ``(3) to reaffirm the purposes of section 2, which include 
        providing the Secretary with broad authority to restore 
        liquidity and stability to financial institutions, including 
        automobile finance companies.

``SEC. 403. EMERGENCY DIRECT LOAN PROGRAM.

    ``(a) In General.--The Secretary shall make loans in an aggregate 
amount equal to $25,000,000,000, to automobile manufacturers and 
component suppliers that have--
            ``(1) submitted an application for a loan under this title 
        that includes a statement of need for Government funding under 
        this title to prevent a systemic adverse effect on the United 
        States economy;
            ``(2) operated a manufacturing facility for the purposes of 
        producing automobiles or automobile components in the United 
        States throughout the 20-year period ending on the date of 
        enactment of this title; and
            ``(3) operations in the United States the failure of which 
        would have a systemic adverse effect on the overall United 
        States economy, as determined by the Secretary.
    ``(b) Allocation.--In allocating loan amounts under this title, the 
Secretary shall prioritize the distribution of loans under this section 
based on the magnitude of the impact of the manufacturing operations of 
the applicant in the United States on the overall economy of the United 
States and other segments of the automobile industry, including the 
impact on levels of employment, domestic manufacturing of automobiles 
and automobile components, and automobile dealerships.
    ``(c) Plan for Long-Term Financial Viability.--At the time of 
application for a loan under this title, an automobile manufacturer or 
component supplier shall submit to the Secretary a detailed plan on how 
the Government funds requested will be utilized to ensure the long-term 
financial posture of the company, and how such funds will stimulate 
automobile production in the United States and improve the capacity of 
the company to pursue the timely and aggressive production of energy-
efficient advanced technology vehicles.

``SEC. 404. FUNDING FROM THIRD TRANCHE; TREATMENT OF LOAN AMOUNTS.

    ``The costs incurred by the Federal Government in making loans 
under this title, including credit subsidy costs and administrative 
expenses, shall be covered out of the funds made available to the 
Secretary generally under section 118 and, specifically, not from funds 
which are described in paragraph (1) or (2) of section 115(a), but with 
respect to the availability of which the reporting and procedural 
requirements contained in paragraph (3) of such section and section 
115(c) shall not apply.

``SEC. 405. TIMING OF DISBURSEMENTS.

    ``(a) Applications.--On and after the date that is 3 days after the 
date of enactment of this title, the Secretary shall accept 
applications for loans under this title.
    ``(b) Determination of Eligibility.--Not later than 15 days after 
the date on which the Secretary receives an application for a loan 
under subsection (a), the Secretary shall make a determination 
regarding the eligibility of the applicant, based on whether the 
applicant meets the requirements of section 403(a).
    ``(c) Disbursement.--The Secretary shall begin disbursement of the 
proceeds of a loan under this title to an eligible applicant not later 
than 7 days after the date on which the Secretary receives a disbursal 
request from the applicant, upon a determination of the Secretary that 
the applicant is eligible under subsection (b).

``SEC. 406. TERMS AND CONDITIONS.

    ``(a) Term to Maturity.--The term to maturity of any loan made 
under this title shall be 10 years, or such longer period as the 
Secretary may determine with respect to such loan.
    ``(b) Rate of Interest.--The annual rate of interest for a loan 
under this title shall be--
            ``(1) 5 percent during the 5-year period beginning on the 
        date on which the Secretary disburses the loan; and
            ``(2) 9 percent after the end of the period described in 
        paragraph (1).
    ``(c) Warrants and Debt Instruments.--The Secretary may not make a 
loan under this title unless the Secretary receives from the automobile 
manufacturer or component supplier a warrant or senior debt instrument 
made in accordance with the requirements for a warrant or senior debt 
instrument by a financial institution under section 113(d).
    ``(d) No Prepayment Penalty.--A loan made under this title shall be 
prepayable without penalty at any time.
    ``(e) Executive Compensation.--
            ``(1) Standards required.--The Secretary shall require any 
        recipient of a loan under this title to meet appropriate 
        standards for executive compensation and corporate governance.
            ``(2) Specific requirements.--The standards established 
        under paragraph (1) shall include the following:
                    ``(A) Limits on compensation that exclude 
                incentives for senior executive officers of a recipient 
                of a loan under this title to take unnecessary and 
                excessive risks that threaten the value of such 
                recipient during the period that the loan is 
                outstanding.
                    ``(B) A provision for the recovery by such 
                recipient of any bonus or incentive compensation paid 
                to a senior executive officer based on statements of 
                earnings, gains, or other criteria that are later found 
                to be materially inaccurate.
                    ``(C) A prohibition on such recipient making any 
                golden parachute payment to a senior executive officer 
                during the period that the loan under this title is 
                outstanding.
                    ``(D) A prohibition on such recipient paying or 
                accruing any bonus or incentive compensation during the 
                period that the loan is outstanding to any executive 
                whose annual base compensation exceeds $250,000 (which 
                amount shall be adjusted by the Secretary for 
                inflation).
                    ``(E) A prohibition on any compensation plan that 
                could encourage manipulation of the reported earnings 
                of the recipient to enhance the compensation of any of 
                its employees.
            ``(3) Definitions.--For purposes of this subsection, the 
        following definitions shall apply:
                    ``(A) Senior executive officer.--The term `senior 
                executive officer' means an individual who is 1 of the 
                top 5 most highly paid executives of a public company, 
                whose compensation is required to be disclosed pursuant 
                to the Securities Exchange Act of 1934, and any 
                regulations issued thereunder, and non-public company 
                counterparts.
                    ``(B) Golden parachute payment.--The term `golden 
                parachute payment' means any payment to a senior 
                executive officer for departure from a company for any 
                reason.
    ``(f) Prohibition on Payment of Dividends.--No common stock 
dividends may be paid by any recipient of a loan under this title for 
the duration of the loan.

``SEC. 407. OVERSIGHT.

    ``(a) In General.--The provisions of sections 105, 116, 121, and 
125 shall apply with respect to any loans made under this title, to the 
extent possible, in the same manner and to the same extent as such 
sections apply to transactions made under the authority of title I.''.
    (b) Technical and Conforming Amendments.--
            (1) Table of contents.--The table of contents in section 
        1(b) of the Emergency Economic Stabilization Act of 2008 
        (division A of Public Law 110-343) is amended--
                    (A) by inserting after the item relating to section 
                3 the following new item:

``Sec. 4. References.''
                ; and
                    (B) by adding at the end the following:

               ``TITLE IV--DIRECT BRIDGE LOAN PROVISIONS

``Sec. 401. Findings.
``Sec. 402. Purposes.
``Sec. 403. Emergency direct loan program.
``Sec. 404. Funding from third tranche; treatment of loan amounts.
``Sec. 405. Timing of disbursements.
``Sec. 406. Terms and conditions.
``Sec. 407. Oversight.''
                ; and
            (2) References.--The Emergency Economic Stabilization Act 
        of 2008 (division A of Public Law 110-343) is amended by 
        inserting after section 3 the following new section:

``SEC. 4. REFERENCES.

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

                     TITLE III--EMERGENCY TREATMENT

SEC. 301. EMERGENCY TREATMENT.

    All provisions of this Act and the amendments made by this Act are 
designated as an emergency requirement and necessary to meet emergency 
needs pursuant to section 204(a) of S. Con. Res 21 (110th Congress), 
the concurrent resolution on the budget for fiscal year 2008.
                                                       Calendar No. 121

110th CONGRESS

  2d Session

                                S. 3688

_______________________________________________________________________

                                 A BILL

To provide for additional emergency unemployment compensation, to amend 
the Emergency Economic Stabilization Act of 2008 to authorize loans to 
    automobile manufacturers and component suppliers, and for other 
                               purposes.

_______________________________________________________________________

                           November 18, 2008

            Read the second time and placed on the calendar
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