[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.