[Congressional Record Volume 144, Number 129 (Thursday, September 24, 1998)]
[Extensions of Remarks]
[Pages E1800-E1801]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                                HR 4619

                                 ______
                                 

                           HON. PATSY T. MINK

                               of hawaii

                    in the house of representatives

                      Thursday, September 24, 1998

  Mrs. MINK of Hawaii. Mr. Speaker, today I have introduced a bill H.R. 
4619 to modify requirements under the Immigrant Investor Pilot Program 
to permit an alien who joins a limited partnership after its original 
creation to qualify with respect to the establishment of a new 
commercial enterprise and thus, qualify for a visa under such program.
  This legislation is needed due to a ruling of the Immigration 
Administrative Appeals Office. The court held in Matter of Izumii that 
if an alien does not establish that they played a participatory role in 
the establishment of the commercial enterprise, then that alien is not 
considered a investor under the provisions of the Immigration and 
Nationality Act. In other words, if an investor joins a project after a 
limited partnership is formed, as is true in most cases, then the 
investor does not qualify for a visa under this program.
  This has come as a shock to the business community. Never before has 
the act been interpreted in this manner. This interpretation ignores 
the reality and normal business practice involved in creating such a 
partnership. The limited partnership or other entity formed is normally 
created first and efforts are then made to attract other investors. 
Documents must first be reviewed and a ``due diligence'' study 
completed before any investor will commit substantial capital. It 
usually takes several months from the time when the investor learns 
about an investment program before they can sign the contract. It is 
very unrealistic to require an investor to participate in the formation 
of the business entity in order to qualify.

[[Page E1801]]

  To overcome this difficulty, my bill allows the investor to invest 
after the initial creation of the partnership, but limits this 
exemption to areas where a regional center has been designated.
  These regional centers as referred to in PL 102-395 Section 610, have 
an active role in the approval of these visas to protect against fraud. 
These regional centers promote economic growth, including increased 
export sales, improved regional activity, job creation, and increase 
domestic capital investment.
  I am hopeful that during the conference negotiations of FY99 
Commerce, Justice, State and Judiciary appropriations, this important 
amendment will be considered as a matter of fairness.

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