< Back to H.R. 629 (106th Congress, 1999–2000)

Text of the Community Development Financial Institutions Fund Amendments Act of of 1999

This bill was introduced on May 26, 1999, in a previous session of Congress, but was not enacted. The text of the bill below is as of Jun 14, 1999 (Reported by House Committee).

Source: GPO

HR 629 RH

Union Calendar No. 104

106th CONGRESS

1st Session

H. R. 629

[Report No. 106-183]

To amend the Community Development Banking and Financial Institutions Act of 1994 to reauthorize the Community Development Financial Institutions Fund and to more efficiently and effectively promote economic revitalization, community development, and community development financial institutions, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

February 8, 1999

Mr. VENTO (for himself and Mrs. ROUKEMA) introduced the following bill; which was referred to the Committee on Banking and Financial Services

June 14, 1999

Additional sponsors: Mr. LAFALCE, Mr. WALSH, Mr. FROST, Mr. OLVER, Mrs. JONES of Ohio, Ms. SCHAKOWSKY, Mr. MCGOVERN, Mr. HINCHEY, Mr. BENTSEN, Mr. FARR of California, Mr. JEFFERSON, Mr. SANDLIN, Mr. FRANK of Massachusetts, Mr. BARRETT of Wisconsin, Ms. DEGETTE, Mr. BROWN of California, Mr. RUSH, Mr. CASTLE, Mr. FATTAH, Ms. KILPATRICK, and Mr. GUTIERREZ

June 14, 1999

Committed to the Committee of the Whole House on the State of the Union and ordered to be printed


A BILL

To amend the Community Development Banking and Financial Institutions Act of 1994 to reauthorize the Community Development Financial Institutions Fund and to more efficiently and effectively promote economic revitalization, community development, and community development financial institutions, 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; TABLE OF CONTENTS.

    (a) SHORT TITLE- This Act may be cited as the ‘Community Development Financial Institutions Fund Amendments Act of 1999’.

    (b) TABLE OF CONTENTS- The table of contents for this Act is as follows:

      Sec. 1. Short title; table of contents.

      Sec. 2. Change of status of the Fund; miscellaneous technical corrections.

      Sec. 3. Amendments to programs administered by the Fund and the Bank Enterprise Act of 1991.

      Sec. 4. Extension of authorization.

      Sec. 5. Amendments to Small Business Capital Enhancement Program.

      Sec. 6. Additional safeguards.

SEC. 2. CHANGE OF STATUS OF THE FUND; MISCELLANEOUS TECHNICAL CORRECTIONS.

    (a) PURPOSE- Section 102(b) of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4701(b)) is amended to read as follows:

    ‘(b) PURPOSE- The purpose of this subtitle is to create a Community Development Financial Institutions Fund to promote economic revitalization and community development through investment in and assistance to community development financial institutions, including enhancing the liquidity of community development financial institutions, and through incentives to insured depository institutions that increase lending and other assistance and

investment in both economically distressed communities and community development financial institutions.’.

    (b) DEFINITIONS-

      (1) Section 103 of the Community Development Banking and Financial Institutions Act of 1994 is amended--

        (A) by striking paragraph (1);

        (B) by redesignating paragraphs (2) through (17) as paragraphs (1) through (16), respectively; and

        (C) by inserting after paragraph (16), as so redesignated, the following new paragraph:

      ‘(17) SECRETARY- Except in the case of section 104(d)(2), the term ‘Secretary’ means the Secretary of the Treasury.’.

      (2) The Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4701 et seq.) is amended (other than in section 118) by striking ‘Administrator’ each place such term appears and inserting ‘Secretary’.

    (c) ESTABLISHMENT OF FUND WITHIN THE DEPARTMENT OF THE TREASURY-

      (1) IN GENERAL- Section 104(a) of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4703(a)) is amended to read as follows:

    ‘(a) ESTABLISHMENT-

      ‘(1) IN GENERAL- There is established in the Department of the Treasury a Community Development Financial Institutions Fund that shall have the functions specified by this subtitle and subtitle B of Title II. The offices of the Fund shall be in Washington, D.C. The Fund shall not be affiliated with any other agency or department of the Federal Government.

      ‘(2) WHOLLY OWNED GOVERNMENT CORPORATION- The Fund shall be a wholly owned government corporation within the Department of the Treasury and shall be treated in all respects as an agency of the United States, except as otherwise provided in this subtitle.’.

      (2) AUTHORITY OF THE SECRETARY OF THE TREASURY- Section 104(b) of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4703(b)) is amended to read as follows:

    ‘(b) MANAGEMENT OF FUND-

      ‘(1) AUTHORITY OF SECRETARY OF THE TREASURY- All functions of the Fund shall be performed by or under the supervision of the Secretary.

      ‘(2) APPOINTMENT OF OFFICERS AND EMPLOYEES- The Secretary may appoint such officers and employees of the Fund, including

a Director, as the Secretary deems necessary or appropriate.’.

      (3) INSPECTOR GENERAL-

        (A) IN GENERAL- Section 118 of the Community Development Banking and Financial Institutions Act of 1994 is amended to read as follows:

‘SEC. 118. INSPECTOR GENERAL.

    ‘The Inspector General of the Department of the Treasury shall be the Inspector General of the Fund.’.

        (B) TECHNICAL AND CONFORMING AMENDMENT- Section 11 of the Inspector General Act of 1978 (5 U.S.C. App. 3) is amended--

          (i) in paragraph (1), by striking ‘; the Administrator of the Community Development Financial Institutions Fund;’; and

          (ii) in paragraph (2), by striking ‘the Community Development Financial Institutions Fund,’.

      (4) TECHNICAL CORRECTION TO RULEMAKING AUTHORITY- Section 119(a)(1) of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4717(a)(1)) is amended to read as follows:

      ‘(1) IN GENERAL- The Secretary may prescribe such regulations and procedures as may be necessary to carry out this subtitle.’.

SEC. 3. AMENDMENTS TO PROGRAMS ADMINISTERED BY THE FUND AND THE BANK ENTERPRISE ACT OF 1991.

    (a) AMENDMENTS TO COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS PROGRAM-

      (1) FORM OF ASSISTANCE PROVIDED- Section 108(a)(1)(B)(iii) of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4707(a)(1)(B)(iii)) is amended by inserting ‘through cooperative agreements or’ before ‘by contracting’.

      (2) TRAINING PROGRAMS- Section 109(d) of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4708(d)) is amended to read as follows:

    ‘(d) FORM OF TRAINING- The Fund may offer the training program described in this section--

      ‘(1) directly; or

      ‘(2) through grants, contracts, or cooperative agreements with other organizations that possess special expertise in community development, without regard to whether the organizations receive or are eligible to receive assistance under this subtitle.’.

    (b) AMENDMENTS TO THE BANK ENTERPRISE ACT AWARDS PROGRAM-

      (1) AWARDS FOR ASSISTANCE TO COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS- Paragraph (2) of section 233(a) of the Bank Enterprise Act (12 U.S.C. 1834a(a)) is amended--

        (A) in that portion of such paragraph which precedes subparagraph (A), by striking ‘for for’ and inserting ‘for’;

        (B) in subparagraph (A), by striking ‘for low- and moderate-income persons’ and inserting ‘to community development financial institutions, low- and moderate-income persons’; and

        (C) in subparagraph (B)--

          (i) by inserting ‘of the increase’ after ‘the amount’; and

          (ii) by striking ‘financial’ each place such term appears.

      (2) INCREASE IN AWARD AMOUNTS FOR CERTAIN ACTIVITIES- Section 114(b)(2) of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4713(b)(2)) is amended by amending the substitute text used to apply section 233(a)(3) of the Bank Enterprise Act of 1991--

        (A) in subparagraph (A), by inserting ‘or (2)(B)’ after ‘paragraph (2)(A)’;

        (B) in subparagraph (A)(i), by inserting ‘each’ before ‘such subparagraph’; and

        (C) in subparagraph (A)(ii), by inserting ‘each’ before ‘such subparagraph’.

      (3) AWARDING CREDIT FOR ADDITIONAL QUALIFIED ACTIVITIES- Paragraph (4) of section 233(a) of the Bank Enterprise Act (12 U.S.C. 1834a(a)(4)) is amended--

        (A) in the portion of such paragraph which precedes subparagraph (A), by inserting ‘and (2)(B)’ after ‘paragraph (2)(A)’; and

        (B) by adding at the end the following new subparagraph:

        ‘(P) Other forms of assistance that the Board determines to be appropriate.

      (4) EVALUATION OF TECHNICAL ASSISTANCE PROVIDED- Section 233(a)(7) of the Bank Enterprise Act (12 U.S.C. 1834a(a)(7)) is amended--

        (A) by inserting ‘and other’ after ‘technical’; and

        (B) by striking ‘and (O)’ and inserting instead ‘(O), and (P)’.

      (5) ESTABLISHING ALTERNATIVE CRITERIA IN DEFINING CERTAIN DISTRESSED COMMUNITIES- Section 233(b)(4)(C) of the Bank Enterprise Act (12 U.S.C. 1834a(b)(4)(C)) is amended by inserting ‘or alternative’ before ‘eligibility requirements’.

SEC. 4. EXTENSION OF AUTHORIZATION.

    Paragraph (1) of section 121(a) of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4718(a)) is amended to read as follows:

      ‘(1) IN GENERAL- To carry out this subtitle and subtitle B of title II, there are authorized to be appropriated to the Fund, to remain available until expended--

        ‘(A) $95,000,000 for fiscal year 2000;

        ‘(B) $100,000,000 for fiscal year 2001;

        ‘(C) $105,000,000 for fiscal year 2002; and

        ‘(D) $110,000,000 for fiscal year 2003.’.

SEC. 5. AMENDMENTS TO SMALL BUSINESS CAPITAL ENHANCEMENT PROGRAM.

    (a) DEFINITION OF FINANCIAL INSTITUTION- Section 252(5) of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4742(5)) is amended by inserting ‘any community development financial institution (as defined in section 103(5) of this Act) and,’ before ‘any federally chartered’.

    (b) ELIMINATION OF THRESHOLD APPROPRIATION- Section 253 of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4743) is amended by striking subsection (d) and redesignating subsection (e) as subsection (d).

    (c) CONFORMING AMENDMENT- Section 254(a) of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4744(a)) is amended by inserting ‘(if any)’ after ‘appropriate Federal banking agency’.

    (d) AMENDMENTS TO REIMBURSEMENT AUTHORITY- Section 257(a) of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4747(a)) is amended to read as follows--

    ‘(a) REIMBURSEMENTS-

      ‘(1) IN GENERAL- The Fund shall reimburse participating States according to criteria established by the Fund.

      ‘(2) EXAMPLES OF CRITERIA- Criteria established under paragraph (1) may include whether a participating State is creating a new program, is expanding in scope or scale an existing State program, the need for Fund reimbursement, the availability of Fund resources, and other criteria established by the Fund.

      ‘(3) TIMING AND AMOUNT OF REIMBURSEMENT- Not later than 30 calendar days after receiving a report filed in compliance with section 256, the Fund shall reimburse a participating State meeting such criteria in an amount equal to up to 50 percent of the amount of contributions by the participating State to the reserve funds that are subject to reimbursement by the Fund pursuant to section 256 and this section, until such sums made available by the Fund for this purpose are expended.’.

    (e) CONFORMING AMENDMENT- Section 260 of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4750) is hereby repealed.

SEC. 6. ADDITIONAL SAFEGUARDS.

    (a) NEUTRAL REVIEW REQUIREMENTS- Section 107 of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4706) is amended by adding at the end the following new subsections:

    ‘(c) OBJECTIVE SCORING SYSTEM-

      ‘(1) IN GENERAL- For purposes of making any evaluation under subsection (a) of any application, the Fund shall develop a scoring system which assigns a relative point value to each factor required to be considered under paragraphs (1) through (14) of subsection (a) in connection with the selection of applicants.

      ‘(2) NOTICE OF SCORING SYSTEM- A description of the scoring system shall be included in any notice of funding availability issued by the Fund.

    ‘(d) NEUTRAL MULTIPERSON REVIEW PANEL-

      ‘(1) IN GENERAL- The Fund shall convene multiperson review panels to--

        ‘(A) review all applications for selection, under subsection (a), on the basis of the factors required to be considered under paragraphs (1) through (14) of subsection (a) using the objective scoring system developed pursuant to subsection (c) before any selection is made by the Fund under subsection (a) with respect to such applications; and

        ‘(B) make recommendations with regard to such selections to the Fund on the basis of such review.

      ‘(2) COMPOSITION- The multiperson review panels shall each consist of such number of members as the Fund determines to be appropriate, but not less than 3, who shall be appointed from among individuals who, by virtue of their education, training, or experience, are specially qualified to carry out the responsibilities of the panel and at least 1/3 of the members of each panel shall be appointed from among individuals with diverse experiences who are not officers or employees of any government.’.

    (b) ADDITIONAL INFORMATION TO BE INCLUDED IN ANNUAL REPORTS- Section 117 of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4716) is amended by adding at the end the following new subsections:

    ‘(g) CONTRACT AND COMPLIANCE INFORMATION- The annual report submitted to the Congress by the Fund pursuant to subsection (a) shall contain the following information:

      ‘(1) SERVICES OF CONTRACTORS- Information on the use of contractors to carry out any function of the Fund under this subtitle, including--

        ‘(A) a description of the services provided by contractors under this subtitle during the period covered by the report;

        ‘(B) a description of the procurement process utilized to obtain such services;

        ‘(C) the basis of the authority of the Fund to contract for the services so obtained; and

        ‘(D) the total amount obligated by the Fund for such contracts.

      ‘(2) COMPLIANCE WITH OTHER REQUIREMENTS- An evaluation of the extent to which the Fund is maintaining compliance, in connection with the activities of the Fund under this subtitle and subtitle B of title II, with the requirements of, and regulations prescribed pursuant to subsections (b) and (d) of section 3512 of title 31, United States Code.

      ‘(3) PLAN FOR ADDRESSING WEAKNESSES OF INTERNAL CONTROLS- A plan for addressing any material weakness in internal controls identified in the most recent external audit pursuant to subsection (f).’.

    (c) REPORT ON IMPLEMENTATION OF SCORING SYSTEM- The 1st annual report submitted by the Fund to the Congress under section 117(a) of the Community Development Banking and Financial Institutions Act of 1994 after the effective date of this Act shall include a complete description of the implementation of the scoring system required under subsection (c) of the amendment made by subsection (a) of this section, including a description of the methodology of the system.

    (d) GAO REPORT- Before the end of the 18-month period beginning on the date of the enactment of this Act, the Comptroller General of the United States shall submit a report to the Congress evaluating the structure, governance, and performance of the Community Development Financial Institutions Fund.

    (e) PRIOR NOTICE OF CONTRACTS- For the purpose of ensuring that the requirements of section 8(a) of the Small Business Act are being met, and preventing evasions of such requirements, with regard to contracts involving the Fund and contractors under such section, the Fund shall submit a notice of any such contract to the Congress at least 15 days before any performance is due under such contract.

    (f) TECHNICAL AND CONFORMING AMENDMENT- That portion of section 107(a) of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4706(a)) which appears before paragraph (1) of such section is amended to read as follows:

    ‘(a) SELECTION CRITERIA- Except as provided in section 113, the Fund shall, after considering the results of the scoring system developed under subsection (c) and the recommendations of the multiperson review panels under subsection (d), select community development financial institution applicants meeting the requirements of section 105 for assistance based on--’.