WASHINGTON – U.S. Rep. John Kline, R-Minn., today introduced the “Auto Dealers Pension Fairness Act,” legislation that would protect auto dealers who are being shut down as part of the reorganization of Chrysler and GM.

Kline’s bill would shield affected auto dealers from being forced to pay any “withdrawal liability” pension payments until Congress has a better understanding of the federal government’s role and responsibility for those restructurings.

“I am gravely concerned by the forced closure of auto dealerships in Minnesota, and I am alarmed at the lack of information and justification for these closures,” said Kline, the senior Republican on the Education and Labor’s Health, Employment, Labor, and Pensions (HELP) Subcommittee. “These small businesses – many of which have been family owned for generations – provide jobs for thousands of Americans.”

The “Auto Dealers Pension Fairness Act” (H.R. 2793) directs the President’s Task Force on the Auto Industry to report to Congress on its role in restructuring these auto companies and determining which dealerships would be closed as part of this reorganization. It also prohibits the imposition of withdrawal pension liability on these dealerships until 60 days after the Task Force reports to Congress, providing ample time to assess the federal government’s role in these closures and determine an appropriate course of action with respect to pension obligations incurred as a result of these closures.

Earlier this week, Kline wrote a bipartisan letter to the president signed by Minnesota Democratic colleagues Betty McCollum and Collin Peterson, and Republicans Erik Paulsen and Michele Bachmann, asking the administration for more time, more transparency, and a clearly defined appeals process for auto dealerships which are being forced to shut down.

“We have become increasingly concerned by the lack of information and reasoning behind the decision to close these dealerships; the rushed timeline forced upon the dealerships; and the lack of transparency in the appeals process,” said Kline, who met last week in Washington with members of the Minnesota Auto Dealers Association.