[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 183 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 183

   To promote economic development in the Lower Mississippi Delta by 
    establishing the Lower Mississippi Delta Development Financing 
                  Corporation, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 5, 1993

 Mr. Espy (for himself and Mr. Emerson) introduced the following bill; 
   which was referred to the Committee on Banking, Finance and Urban 
                                Affairs

_______________________________________________________________________

                                 A BILL


 
   To promote economic development in the Lower Mississippi Delta by 
    establishing the Lower Mississippi Delta Development Financing 
                  Corporation, 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 ``Lower Mississippi Delta Development 
Financing Corporation Act''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds the following:
            (1) The income levels, employment levels, educational 
        levels, and similar socioeconomic indicators are extremely low 
        in the lower Mississippi delta region.
            (2) The economic base in the region is underdeveloped and 
        the local capacity to strengthen the economic base is 
        inadequate.
            (3) The region has significant economic strengths upon 
        which to build a strong and vibrant economy.
            (4) A regional institution is the most appropriate form for 
        an economic development institution which can efficiently 
        address the economic situation in the lower Mississippi delta 
        region given the scope of the economic problems confronting the 
        region and the common conditions which are apparent throughout 
        the region.
    (b) Purposes.--The purposes of this Act are as follows:
            (1) To establish a multifaceted proactive regional 
        institution to develop entrepreneurs and encourage the creation 
        of new ventures.
            (2) To create a sustainable change in the economic 
        environment of the lower Mississippi delta region which is 
        conducive to the growth and success of new ventures by 
        providing intensive technical assistance and guidance and 
        appropriate forms of capital.
            (3) To provide a structure for designing and implementing 
        strategies for building the capacity of new and existing 
        institutions and organizations that provide enterprise 
        assistance.
            (4) To create a culture of entrepreneurship through role 
        models and programs.
            (5) To develop partnerships with lenders, government, 
        community organizations, and private businesses for creating a 
        continuum of credit and capital products ranging from debt 
        instruments for established firms to equity investments for 
        early-stage development and new ventures.
            (6) To target community development banking activities and 
        capacity building assistance to the chronically-distressed 
        communities of the lower Mississippi delta.
    (c) Definitions.--For purposes of this Act--
            (1) Corporation.--The term ``Corporation'' means the Lower 
        Mississippi Delta Development Financing Corporation.
            (2) Director.--The term ``director'' means a member of the 
        board of directors of the Corporation.
            (3) Lower mississippi delta region.--The term ``lower 
        Mississippi delta region'' means the 219 counties in the States 
        of Arkansas, Illinois, Kentucky, Louisiana, Mississippi, 
        Missouri, and Tennessee identified as the lower Mississippi 
        delta area in the final report of the Lower Mississippi Delta 
        Development Commission entitled ``The Delta Initiatives'' under 
        date of May 14, 1990.

SEC. 3. ESTABLISHMENT OF CORPORATION.

    (a) In General.--There is hereby established the Lower Mississippi 
Delta Development Financing Corporation as a federally chartered 
private corporation.
    (b) Management.--
            (1) In general.--The Corporation shall be under the 
        management of a board of directors consisting of 15 directors.
            (2) Qualifications of appointed directors.--Directors who 
        are appointed to the board of directors pursuant to subsection 
        (c) shall be appointed--
                    (A) from among individuals who--
                            (i) have expressed a strong commitment to 
                        the economic development of the lower 
                        Mississippi delta; and
                            (ii) are especially qualified to serve as 
                        directors by virtue of their education, 
                        training, or experience; and
                    (B) after giving special consideration to the 
                public interest in the appointment of a board of 
                directors the membership of which is fairly 
                representative of the diverse interests in the lower 
                Mississippi delta region and the geographical 
                subregions and political subdivisions within the 
                region.
            (3) Quorum.--8 directors shall constitute a quorum.
            (4) Chairperson.--The board of directors shall elect 1 
        director to serve as the chairperson of the board of directors 
        for such term as the bylaws of the Corporation shall provide.
            (5) Meetings.--Except as otherwise provided in the bylaws 
        of the Corporation, the board of directors shall meet at the 
        call of the chairperson of the board of directors or a majority 
        of the directors.
    (c) Appointment of Directors.--
            (1) Initial appointment of directors for 1 year to organize 
        the corporation.--
                    (A) In general.--The directors first appointed to 
                the board of directors after the enactment of this Act 
                shall be appointed by the President by and with the 
                advice and consent of the lower Mississippi delta 
                region congressional delegation in accordance with 
                subparagraph (B) for a term of 1 year.
                    (B) Advice and consent procedure.--
                            (i) Submission of nomination.--The 
                        President shall submit the nomination of a 
                        person as a director of the Corporation to the 
                        Speaker of the House of Representatives and the 
                        president pro tempore of the Senate.
                            (ii) Meeting of the lower mississippi delta 
                        region congressional delegation.--Upon receipt 
                        of a nomination by the President in accordance 
                        with clause (i), the Speaker of the House of 
                        Representatives and the president pro tempore 
                        of the Senate shall convene a meeting of the 
                        lower Mississippi delta region congressional 
                        delegation to consider the nomination in 
                        accordance with such procedures as the 
                        delegation may adopt for such purpose.
                            (iii) Election by majority.--The nomination 
                        of a director of the Corporation under this 
                        paragraph may be confirmed only by a majority 
                        of the members of the lower Mississippi delta 
                        region congressional delegation each of whom 
                        shall have 1 vote.
                    (C) Lower mississippi delta region congressional 
                delegation defined.--For purposes of this paragraph, 
                the term `lower Mississippi delta region congressional 
                delegation' means--
                            (i) the Senators returned from the States 
                        of Arkansas, Illinois, Kentucky, Louisiana, 
                        Mississippi, Missouri, and Tennessee; and
                            (ii) the representatives returned from each 
                        congressional district within the States of 
                        Arkansas, Illinois, Kentucky, Louisiana, 
                        Mississippi, Missouri, and Tennessee all or a 
                        portion of which lies within the lower 
                        Mississippi delta region, as determined by the 
                        Speaker of the House of Representatives.
                    (D) Declaration of congress.--The Congress hereby 
                declares that the procedure established under this 
                paragraph for the appointment of the initial directors 
                on the board of directors is undertaken in connection 
                with the establishment of a private corporation and 
                shall not be construed as the appointment of an officer 
                of the United States within the meaning of the second 
                paragraph of section 2 of Article II of the 
                Constitution of the United States of America.
            (2) Appointment of directors after first year.--Except as 
        provided in paragraph (1), any position on the board of 
        directors which is held by an appointed director shall be 
        filled, at the end of such director's term or in the case of a 
        vacancy during such term, by a person appointed by the board of 
        directors in accordance with procedures established under the 
        bylaws.
            (3) Terms of appointed directors.--
                    (A) In general.--The bylaws prescribed under 
                section 3(a)(1) shall establish the terms of the 
                directors appointed under paragraph (2).
                    (B) Appointments to fill vacancies.--A director 
                appointed to the board of directors to fill a vacancy 
                occurring before the expiration of the term for which 
                such director's predecessor was appointed shall be 
                appointed only for the remainder of such term.
                    (C) Service after expiration of term.--A director 
                may serve after the expiration of the term of such 
                director until the successor of the director has taken 
                office.
            (4) Vacancies with respect to appointed directors.--Any 
        vacancy on the board of directors which was held by an 
        appointed director shall be filled by a person appointed by the 
        board of directors.
    (d) Provisions Applicable to Directors Elected by Shareholders.--
            (1) In general.--The board of directors may provide for the 
        election of directors by stockholders in the corporation and 
        establish procedures for such elections.
            (2) Number of elected directors.--The number of directors 
        who are elected by the holders of common stock--
                    (A) may not exceed 10; and
                    (B) shall be determined by the board of directors 
                in accordance with the bylaws.
            (3) Vacancies with respect to elected directors.--
                    (A) Appointment.--Any vacancy on the board of 
                directors which was held by an elected member and 
                becomes vacant after the annual election of the elected 
                directors shall be filled by a person appointed by the 
                board of directors.
                    (B) Term of appointee.--A director appointed under 
                subparagraph (A) to fill a vacancy occurring before the 
                expiration of the term for which such director's 
                predecessor was elected shall be appointed only for the 
                remainder of such term.
            (4) Terms of elected directors.--Elected directors shall be 
        elected annually for a term ending on the date of the next 
        annual meeting of the common stockholders of the Corporation 
        and shall serve until such directors' successors are elected.
    (e) Report by Board of Directors After 1 Year.--Before the end of 
the term of the directors first appointed to the board of directors 
under subsection (c)(1), the board of directors shall submit a report 
to the President and the Congress on the organization and operation of 
the Corporation during the 1st year of the Corporation's existence, 
including--
            (1) an accounting of the stock issued and sold by the 
        Corporation during the year;
            (2) any recommendation of the board of directors with 
        respect to the establishment or acquisition of any subsidiary 
        of the Corporation and the activities of any such subsidiary; 
        and
            (3) any recommendation for legislative initiatives which 
        the board of directors may determine to be appropriate for 
        further enhancing the economic development of the lower 
        Mississippi delta region.
    (f) Provisions Relating Directors who are Federal Officers or 
Employees.--
            (1) Limitation on number.--After the end of the 1-year 
        period beginning on the date on which the board of directors 
        first meets with a quorum present, not more than 3 directors 
        may serve at the same time as an officer or employee of the 
        United States.
            (2) Restriction on pay for federal personnel.--Directors 
        who are full-time officers or employees of the United States 
        shall receive no additional pay by reason of service on the 
        board of directors.

SEC. 4. POWERS AND DUTIES OF CORPORATION.

    (a) General Powers.--The Corporation shall have the following 
powers:
            (1) Bylaws.--To prescribe, by the Board of Directors, 
        bylaws not inconsistent with law regulating the manner in 
        which--
                    (A) stock of the corporation may be transferred;
                    (B) the directors of the corporation may be 
                appointed or elected;
                    (C) the officers and employees of the corporation 
                may be appointed;
                    (D) the property of the corporation may be 
                transferred;
                    (E) the general business of the corporation may be 
                conducted; and
                    (F) the privileges granted to the corporation by 
                law may be exercised and enjoyed.
            (2) Corporate seal.--To adopt, alter, and use a corporate 
        seal.
            (3) Contracts.--To enter into contracts.
            (4) Issue obligations.--To issue debentures, bonds, or 
        other obligations, and to borrow, to give security for any 
        amount borrowed, and to pay interest on (and any redemption 
        premium with respect to) any such obligation or amount.
            (5) Stock.--To issue stock in accordance with section 5.
            (6) Property and investments.--To acquire, hold, lease, 
        mortgage, maintain, or dispose of real and personal property, 
        including securities issued by any other person.
            (7) Subsidiaries and other investments and associations.--
        To acquire or establish subsidiaries, to enter into 
        partnerships, associations, joint ventures, and other business 
        relationships, and to make investments in any person.
            (8) Litigation.--To sue and be sued in its corporate 
        capacity, and to complain and defend in any action brought by 
        or against the Corporation in any State or Federal court of 
        competent jurisdiction.
            (9) Officers and employees.--By the Board of Directors--
                    (A) to appoint an executive director, a secretary, 
                and a treasurer and such other officers and employees 
                as the Board of Directors may provide for in the 
                bylaws;
                    (B) to define the duties of the officers and 
                employees;
                    (C) to fix the compensation of such officers and 
                employees and provide such other employment benefits as 
                the Board of Directors may provide for in the bylaws;
                    (D) to require bonds of officers and employees; and
                    (E) to dismiss at pleasure any officer or employee.
            (10) Standards.--To establish such standards as may be 
        appropriate to carry out the requirements of this Act, 
        including underwriting standards.
            (11) Other powers.--To exercise such incidental powers as 
        may be appropriate to carry out the purposes of this Act.
            (12) Succession.--To have succession until dissolved.
    (b) Duties.--
            (1) In general.--The Corporation shall develop strategies 
        and provide financial and technical assistance for building and 
        expanding the economic base of the lower Mississippi delta 
        region and communities within the region.
            (2) Development strategies authorized.--In carrying out the 
        purposes of this Act with respect to the lower Mississippi 
        delta region, the Corporation may--
                    (A) initiate or participate in community strategic 
                planning for economic development;
                    (B) provide, or participate in the provision of, 
                technical training programs or technical services which 
                the Corporation determines are appropriate for local 
                capacity building, developing economic opportunities 
                for businesses, including microenterprises, in the 
                region or within any community in the region;
                    (C) provide, or participate in the provision of, 
                regional economic research and analysis and sectoral 
                development services;
                    (D) raise funds for regional and local economic 
                development and other purposes of this Act from the 
                Federal Government, State governments within the 
                region, foundations, corporations, and other persons;
                    (E) provide support through incentives and other 
                forms of economic enhancement, including investments 
                and grants, for the development of local financial 
                institutions, including microloan funds, seed capital 
                and venture capital funds, revolving loan funds, in 
                order to make development banking and related financial 
                services more available in the lower Mississippi delta 
                region;
                    (F) make or guarantee loans and provide grants 
                (including matching grants) in connection with 
                providing technical training programs or technical 
                services and strategies for expanding existing 
                businesses, including micro-enter-prises and other 
                economic development within the region; and
                    (G) establish terms for any loan under this 
                paragraph which provide that the principal of the loan, 
                or any portion of any such principal, may be forgiven 
                if the program or project for which such loan has been 
                made meets or exceeds such performance goals as may be 
                established under the terms of the loan.
    (c) Passive Investments in Local Banks.--
            (1) In general.--The Corporation may acquire and retain 
        shares of insured depository institutions and depository 
        institution holding companies which are located in the lower 
        Mississippi delta region and which are part of the development 
        strategy and mission adopted by the Corporation.
            (2) Passive investment rule.--If--
                    (A) the amount of the shares held by the 
                Corporation in any insured depository institution or 
                depository institution holding company at any time does 
                not exceed 50 percent of the total number of the 
                outstanding shares issued by such institution or 
                holding company; and
                    (B) the acquisition and retention of such shares by 
                the Corporation is made for purposes of investment and 
                is not made for the purpose of acquiring, exercising, 
                or transferring control of any such depository 
                institution or depository institution holding company,
        the Corporation shall not be deemed to control the depository 
        institution or depository institution holding company for 
        purposes of sections 2, 3, and 4 of the Bank Holding Company 
        Act of 1956 or section 10 of the Home Owners' Loan Act.
            (3) Definitions.--For purposes of this subsection, the 
        terms ``insured depository institution'' and ``depository 
        institution holding company'' have the meaning given to such 
        terms in section 3 of the Federal Deposit Insurance Act.

SEC. 5. STOCK ISSUANCE.

    (a) Common Stock Issuance.--
            (1) In general.--The Corporation may issue common stock 
        having par value fixed by the board of directors.
            (2) Voting rights.--Each share of common stock shall be 
        entitled to 1 vote with rights of cumulative voting in 
        elections of directors.
            (3) Dividends.--The Corporation may pay to holders of 
        common stock issued under this subsection such dividends on 
        that stock as may be determined by the board of directors.
    (b) Preferred Stock.--
            (1) Issuance.--The Corporation may issue nonvoting 
        preferred stock having such par value as the board of directors 
        may determine.
            (2) Preference on termination of business.--In the event of 
        any liquidation, dissolution, or completion of the business of 
        the Corporation, holders of the preferred shares of stock of 
        the Corporation, shall be paid in full at the par value of 
        those shares, plus all accrued dividends, before the holders of 
        shares of common stock of the Corporation may receive any 
        payment.

SEC. 6. GRANTS TO CORPORATION.

    (a) Authorization of Appropriations.--There is authorized to be 
appropriated to the President the sum of $100,000,000 for fiscal years 
1994, 1995, 1996, 1997, and 1998 for grants to the Corporation to carry 
out the purposes of this Act.
    (b) Grants to Corporation.--The President may make such grants to 
the Corporation as the President determines to be appropriate to carry 
out the purposes of this Act, including the use of such funds by the 
Corporation to secure obligations issued by the Corporation.
    (c) Receipt of Funds Not to Affect Private Status of Corporation.--
The Corporation shall not be treated as a Government corporation for 
purposes of chapter 91 of title 31, United States Code, or any other 
provision of law by virtue of any grant to the Corporation under this 
section.
    (d) Treatment of Corporation Funds.--No contribution or investment 
made by the Corporation with respect to any other person shall be 
treated as a contribution or investment involving any funds other than 
private funds because of any grant made to the Corporation under this 
section, for purposes of the Small Business Investment Act of 1958 or 
any other provision of law.

SEC. 7. RESOURCE COMMITTEE.

    (a) In General.--The Corporation shall establish an advisory 
committee consisting of ______ members appointed by the board of 
directors from among individuals especially qualified to advise the 
Corporation by virtue of their education, training, and experience.
    (b) Designee of Federal Reserve Board.--Notwithstanding the 
appointment authority of the board of directors of the Corporation 
under subsection (a), the Board of Governors of the Federal Reserve 
System may designate 1 officer or employee of such Board to serve as a 
member of the advisory committee established pursuant to subsection 
(a).

SEC. 8. ANNUAL REPORT.

    The Corporation shall submit an annual report on the operations of 
the Corporation and a financial statement to the Congress.

SEC. 9. ANNUAL GAO EXAMINATION.

    (a) In General.--Notwithstanding any other provision of law and in 
accordance with such regulations as the Comptroller General of the 
United States may prescribe, the Comptroller General shall perform an 
annual examination and a financial audit of the Corporation on whatever 
basis the Comptroller General determines to be appropriate.
    (b) Access to Records.--The Corporation shall--
            (1) make available to the Comptroller General for audit all 
        records and property, used, or managed by the Corporation;
            (2) provide the Comptroller General with facilities for 
        verifying transactions with the balances or securities held by 
        depositaries, fiscal agents, or custodians; and
            (3) provide the Comptroller General with suitable and 
        lockable offices, access to copying facilities, and furniture 
        and telephones.
    (c) Annual Report.--The Comptroller General shall make an annual 
report to the Congress on the examination and financial audit of the 
Corporation under this section.

SEC. 10. FEDERAL AGENCY ASSISTANCE.

    Each agency, department, or other instrumentality of the Federal 
Government may provide funds, services, and facilities, on a 
reimbursable basis, which are appropriate to assist the Corporation to 
carry out the purposes of this Act.

SEC. 11. REORGANIZATION AS A STATE CHARTERED CORPORATION.

    (a) In General.--The board of directors of the Corporation shall 
recharter and reorganize the Corporation as a State-chartered 
corporation during the 6-month period beginning at the end of fiscal 
year 1999.
    (b) Applicability of Act.--This Act shall cease to apply with 
respect to the Corporation as of the effective date of the chartering 
of the Corporation as a State-chartered corporation pursuant to 
subsection (a).

                                 <all>

HR 183 IH----2