Community Development Financial Institutions Fund Amendments Act of 1999 - Modifies the Community Development Banking and Financial Institutions Act of 1994 (the Act) to expand its purposes to include promotion of economic revitalization and community development through incentives to insured depository institutions that increase lending and other assistance and investment in both economically distressed communities and community development financial institutions.
(Sec. 2) Places the Community Development Financial Institutions Fund in the Department of the Treasury and all Fund functions under the supervision of the Secretary of the Treasury.
(Sec. 3) Authorizes the Fund to offer community development finance activity training programs through grants or cooperative agreements with other organizations (as well as directly or through contracts).
(Sec. 4) Authorizes appropriations for FY 2000 through 2003.
(Sec. 6) Requires the Fund to: (1) develop a scoring system which assigns a relative point value to each factor required in connection with applicant selection criteria; (2) convene multiperson review panels to review applications on the basis of such factors and the scoring system; and (3) include in its annual report specified contract and compliance information, as well as a complete description of the implementation of the scoring system and its methodology.
Directs the Comptroller General to report to the Congress on Fund structure, governance, and performance.
[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 629 Introduced in House (IH)]
106th CONGRESS
1st Session
H. R. 629
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
_______________________________________________________________________
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--''.
<all>
Introduced in House
Introduced in House
Sponsor introductory remarks on measure. (CR E153)
Referred to the House Committee on Banking and Financial Services.
Referred to the Subcommittee on Financial Institutions and Consumer Credit.
Subcommittee on Financial Institutions and Consumer Credit Discharged.
Committee Hearings Held.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported by Voice Vote.
Reported by the Committee on Banking and Financial Services. H. Rept. 106-183.
Reported by the Committee on Banking and Financial Services. H. Rept. 106-183.
Placed on the Union Calendar, Calendar No. 104.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line