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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1198 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 1198

  To limit disbursement of additional funds under the Troubled Asset 
Relief Program to certain automobile manufacturers, to impose fiduciary 
duties on the Secretary of the Treasury with respect to shareholders of 
  such automobile manufacturers, to require the issuance of shares of 
  common stock to eligible taxpayers which represent the common stock 
      holdings of the United States Government in such automobile 
                 manufacturers, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              June 8, 2009

 Mr. Alexander (for himself, Mr. Bennett, Mr. McConnell, Mr. Kyl, Mr. 
   Vitter, Mr. Cornyn, Mr. Isakson, Mr. Roberts, Mr. Gregg, and Mr. 
    Wicker) introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL

 
  To limit disbursement of additional funds under the Troubled Asset 
Relief Program to certain automobile manufacturers, to impose fiduciary 
duties on the Secretary of the Treasury with respect to shareholders of 
  such automobile manufacturers, to require the issuance of shares of 
  common stock to eligible taxpayers which represent the common stock 
      holdings of the United States Government in such automobile 
                 manufacturers, and for other purposes.

    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 Stock for Every Taxpayer Act''.

SEC. 2. RESTRICTIONS ON TARP EXPENDITURES FOR AUTOMOBILE MANUFACTURERS; 
              FIDUCIARY DUTY TO TAXPAYERS; REQUIRED ISSUANCE OF COMMON 
              STOCK TO TAXPAYERS.

    (a) Prohibition on Further TARP Funds.--Notwithstanding any 
provision of the Emergency Economic Stabilization Act of 2008 (Public 
Law 110-434), or any other provision of law, the Secretary may not 
expend or obligate any funds made available under that Act on or after 
the date of enactment of this Act with respect to any designated 
automobile manufacturer.
    (b) Fiduciary Duty to Shareholders.--With respect to any designated 
automobile manufacturer, the Secretary, and the designee of the 
Secretary who is responsible for the exercise of shareholder voting 
rights with respect to a designated automobile manufacturer pursuant to 
assistance provided under the Emergency Economic Stabilization Act of 
2008, shall have a fiduciary duty to the American taxpayer for the 
maximization of the return on the investment of the taxpayer under that 
Act, in the same manner, and to the same extent that any director of an 
issuer of securities has with respect to its shareholders under the 
securities laws and all applicable provisions of State law.
    (c) Required Issuance of Common Stock to Eligible Taxpayers.--Not 
later than 1 year after the emergence of any designated automobile 
manufacturer from bankruptcy protection described in subsection 
(e)(1)(B), the Secretary shall issue a certificate of common stock to 
each eligible taxpayer, which shall represent such taxpayer's share of 
the aggregate common stock holdings of the United States Government in 
the designated automobile manufacturer on such date.
    (d) Civil Actions Authorized.--A person who is aggrieved of a 
violation of the fiduciary duty established under subsection (b) may 
bring a civil action in an appropriate United States district court to 
obtain injunctive or other equitable relief relating to the violation.
    (e) Definitions.--As used in this section--
            (1) the term ``designated automobile manufacturer'' means 
        an entity organized under the laws of a State, the primary 
        business of which is the manufacture of automobiles, and any 
        affiliate thereof, if such automobile manufacturer--
                    (A) has received funds under the Emergency Economic 
                Stabilization Act of 2008 (Public Law 110-434), or 
                funds were obligated under that Act, before the date of 
                enactment of this Act; and
                    (B) has filed for bankruptcy protection under 
                chapter 11 of title 11, United States Code, during the 
                90-day period preceding the date of enactment of this 
                Act;
            (2) the term ``eligible taxpayer'' means any individual 
        taxpayer who filed a Federal taxable return for taxable year 
        2008 (including any joint return) not later than the due date 
        for such return (including any extension);
            (3) the term ``Secretary'' means the Secretary of the 
        Treasury or the designee of the Secretary; and
            (4) the terms ``director'', ``issuer'', ``securities'', and 
        ``securities laws'' have the same meanings as in section 3 of 
        the Securities Exchange Act of 1934 (15 U.S.C. 78c).
                                 <all>
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