[Congressional Record Volume 152, Number 130 (Thursday, November 16, 2006)]
[Senate]
[Pages S11071-S11074]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
By Mr. AKAKA (for himself and Mr. Inouye):
S. 4070. A bill to exempt children of certain Filipino World War II
veterans from the numerical limitations on immigrant visas; to the
Committee on the Judiciary.
Mr. AKAKA. Mr. President, it has long been evident that our
immigration system needs to be reformed, and the current debate on
immigration is long overdue. I am pleased that this body is addressing
this important issue in such a comprehensive manner. However, if the
Senate's debate on immigration is to be truly comprehensive, it must
address not only its better-known propositions and factors but also its
lesser-known ones as well.
My bill seeks to address and resolve an immigration issue that, while
rooted in a set of historical circumstance more than seven decades old,
remains unresolved to this day. It is an issue of great concern to
Filipino World War II veterans and to Filipino Americans, and it ought
to be an issue of great concern to all American veterans and citizens
with an interest in justice and fairness.
Before I discuss the specifics of my bill, I would first like to
thank my dear friend and colleague, the senior Senator from Hawaii,
Daniel K. Inouye, for cosponsoring this bill. In the 101st Congress,
Senator Inouye authored Section 405 of the Immigration Act of 1990,
which provided for the naturalization of Filipino World War II
veterans. Senator Inouye has a long history of being involved in this
important effort and it is an honor to have his support on my bill
today.
To understand the significance of this bill, it is important to first
provide some background about the historical circumstances that got us
to where we are today.
In 1941, on the basis of 1934 legislation enacted prior to Philippine
independence, President Franklin D. Roosevelt issued an executive
order. Through this order, President Roosevelt invoked his authority to
``call and order into the service of the Armed Forces of the United
States,'' including ``all of the organized military forces of the
Government of the Commonwealth of the Philippines.'' This order drafted
more than 200,000 Filipino citizens into the United States military.
Under the
[[Page S11072]]
command of General Douglas MacArthur, Filipino soldiers fought
alongside American soldiers in the defense of our country.
Throughout the course of World War II, these Filipino soldiers proved
themselves to be courageous and honorable comrades in arms as they
helped the United States fulfill its mission. There was no question
that they would be treated the same as American troops.
These Filipino soldiers are war heroes, and deserved to be treated as
such. They provided active duty service on behalf of the U.S. military,
which should have qualified them for the same benefits as other active-
duty veterans. Congress betrayed these veterans by enacting the First
Supplemental Surplus Appropriation Rescission Act in 1946, which
included a rider that conditioned an appropriation of $200 million, for
the benefit of the postwar Philippine Army, on the basis that service
in the Commonwealth Army should not be deemed to have been service in
the Armed Forces of the United States.
Commonwealth Army members were those called into the service of the
United States Armed Forces for the Far East. These members served
between July 26, 1941, and June 30, 1946. Similarly, Congress enacted
the Second Supplemental Surplus Appropriation Rescission Act, which
provided that service in the New Philippine Scouts was not deemed to be
service in the U.S. military.
New Philippine Scouts were Filipino citizens who served with the
United States Armed Forces with the consent of the Philippine
government. They served between October 6, 1945, and June 30, 1947.
These veterans are now in their eighties and nineties. Of the 200,000
Filipino veterans that served in World War II, close to 49,000 survive.
Some of these veterans receive U.S. benefits, some do not. By 2010, it
is estimated that there will be just 20,000 survivors.
With the passage of the Immigration Act of 1990, the courage of the
many Filipino soldiers who fought alongside our troops during World War
II was finally recognized by our government, and Filipino veterans were
offered the opportunity to obtain U.S. citizenship. According to the
former Immigration and Naturalization Service, about 15,000 Filipino
veterans live in the U.S. and became citizens between 1941 and 1995
under the authority of the Immigration Act of 1990. Between that time
about 11,000 veterans who live in the Philippines were successfully
naturalized. These thousands of Filipino veterans clearly wished to
spend their golden years in the United States, and I am pleased that
the 1990 Immigration reform efforts provided them the opportunity to do
so.
Unfortunately, the offer did not extend to the adult sons and
daughters of these veterans. As a result, the Filipino veterans who
fought on behalf of America, and who now live in American and continue
to contribute to America, must do so alone. Due to a backlog in the
issuing of visas, many of the children of these veterans have waited
more than twenty years before being able to obtain an immigrant visa.
My bill, by exempting children of certain Filipino World War II
veterans from the numerical limitation on immigrant visas, will ensure
that our Filipino World War II veterans can enjoy and be supported by
their family members in their twilight years. I believe it is a simple
yet profound way that this country may honor the sacrifices made more
than six decades ago by these war heroes.
I urge my colleagues to honor the valiant contributions of Filipino
World War II veterans to our Nation by supporting my bill.
______
By Ms. LANDRIEU:
S. 4071. A bill to amend the Internal Revenue Code of 1986 to extend
the placed-in-service date requirement for low-income housing credit
buildings and bonus depreciation property and the period for
rehabilitation expenditures in the Gulf Opportunity Zone; to the
Committee on Finance.
Ms. LANDRIEU. Mr. President, the people of New Orleans and the rest
of the Gulf Coast have been working hard to rebuild their communities
and the economy of the region. The Gulf Opportunity (GO) Zone
legislation that the Congress passed and the President signed into law
at the end of last year, has contributed greatly to the rebuilding
efforts.
The benefits of this legislation have been tremendous so far.
Hundreds of businesses, large and small, will be able to take advantage
of tax incentives made possible by the GO Zone bill. These include a
bonus depreciation provision that allows businesses to take a 50
percent depreciation deduction in the first year on new plant or
equipment in the GO Zone. This has helped jump start our recovery by
giving businesses the incentive to invest quickly in the GO Zone.
The GO Zone Act also increased the amount of low income housing tax
credits available to GO Zone states. The Louisiana Housing Finance
Agency reports that it has awarded more than $80 million in low income
housing tax credits. These credits will be leveraged to finance 195
rental housing developments for working families.
The GO Zone also included an increased rehabilitation tax credit to
encourage the preservation and rehabilitation of historic structures.
We have many beautiful, old buildings in New Orleans and along the
Gulf. They are part of our heritage and as we rebuild we want to
preserve that heritage.
The problem with the GO Zone Act is that these tax benefits have
limits in terms of the time that they are available for our rebuilding.
Most require that any plant and equipment, or the housing financed by
the tax credits, must be placed in service by the end of 2008--that is
only two years away. The rehabilitation tax credit is also only
available until the end of 2008. The problem with this is that our
recovery is going to take longer. In Louisiana we are rebuilding an
entire city essentially from scratch. Whole communities were wiped out
in Mississippi. We have never seen a recovery like the one we are
attempting in the Gulf.
The placed in service date is particularly difficult for the low
income housing tax credits. It can take years to get together all of
the financing for housing developments and even more time for
construction. The current placed in service date effectively makes any
credits allocated in 2008 unusable because it would be nearly
impossible to get a building financed and constructed by the end of the
year.
Today, I am introducing legislation to extend the placed in service
dates for the various GO Zone tax benefits for an additional two years.
This will give us more time to take full advantage of the opportunities
the GO Zone legislation has given us. Our recovery is proceeding
steadily, but it will take time. We do not want to diminish the impact
these tax credits will have on our recovery by artificially limiting
their availability. My bill would make these credits available for a
longer period of time so that the recovery in the Gulf will be
sustained.
I urge my colleagues to support this legislation and ask unanimous
consent that the text of the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 4071
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. EXTENSION OF PLACED-IN-SERVICE DATE REQUIREMENT
FOR LOW-INCOME HOUSING CREDIT BUILDINGS AND
BONUS DEPRECIATION PROPERTY AND PERIOD FOR
REHABILITATION EXPENDITURES IN GULF OPPORTUNITY
ZONE.
(a) Low-Income Housing Credit Buildings.--Section 1400N(c)
of the Internal Revenue Code of 1986 is amended--
(1) by striking ``or 2008'' in paragraph (3)(A) and
inserting ``2008, 2009, or 2010'',
(2) by striking ``during such period'' in paragraph
(3)(B)(ii) and inserting ``during the period described in
subparagraph (A)'', and
(3) by striking ``or 2008'' in paragraph (4)(A) and
inserting ``2008, 2009, or 2010''.
(b) Bonus Depreciation Property.--Section 1400N(d) of the
Internal Revenue Code of 1986 is amended--
(1) by striking ``December 31, 2007 (December 31, 2008, in
the case of nonresidential real property and residential
rental property)'' in paragraph (2)(A)(v) and inserting
``December 31, 2010'', and
(2) by striking ``January 1, 2008'' in paragraph (3)(B) and
inserting ``January 1, 2011''.
(c) Increase in Rehabilitation Credit.--Section 1400N(h) of
the Internal Revenue Code of 1986 is amended by striking
``2008'' and inserting ``2010''.
______
By Ms. LANDRIEU (for herself and Mr. Kerry):
S. 4072. A bill to address ongoing small business and homeowner needs
in
[[Page S11073]]
the Gulf Coast States impacted by Hurricane Katrina and Hurricane Rita;
to the Committee on Small Business and Entrepreneurship.
Ms. LANDRIEU: Mr. President, I come to the floor today to highlight
the ongoing needs of our small businesses and homeowners in the Gulf
Coast who were devastated by Hurricanes Katrina and Rita. In Louisiana
alone, these disasters claimed 1,464 lives, destroyed more than 200,000
homes and 18,000 businesses and inflicted $25 billion in uninsured
losses. Many of my colleagues here in the Senate have been down to
Louisiana and have seen firsthand the size and scope of the
destruction. The Congress has been very generous in providing billions
of Federal recovery dollars as well as valuable Gulf Opportunity (GO)
Zone tax incentives to help spur recovery in the region. These
resources will be key in the recovery of the region but there are
additional needs on the ground that still must be addressed. That is
why I am proud to introduce a bill today, the Gulf Coast Back to
Business and Homes Act of 2006, which I believe, addresses these
problems and shows our small businesses and homeowners that the Federal
government is responsive to their needs. I am happy that my colleague,
Senator Kerry, Ranking Member of the Senate Small Business &
Entrepreneurship Committee, has joined me by cosponsoring this
legislation.
Katrina was the most destructive hurricane ever to hit the United
States. The next month, in September, Hurricane Rita hit the Louisiana
and Texas coast. It was the second most powerful hurricane ever to hit
the United States, wreaking havoc on the southwestern part of my state
and the east Texas coast. This one-two punch devastated Louisiana
lives, communities and jobs, stretching from Cameron Parish in the west
to Plaquemines Parish in the east.
We are now rebuilding our State and the wide variety of communities
that were devastated by Rita and Katrina, areas representing a diverse
mix of population, income and cultures. We hope to restore the region's
uniqueness and its greatness. To do that, we need to rebuild our local
economies now and far into the future.
My State estimates that there were 71,000 businesses in the Katrina
and Rita disaster zones. As I mentioned, a total of 18,752 of these
businesses were catastrophically destroyed. However, on a wider scale,
according to the U.S. Chamber of Commerce, over 125,000 small and
medium-sized businesses in the Gulf region were disrupted by Katrina
and Rita. Many of these businesses have yet to resume operations and
others are struggling to survive. We will never succeed without these
small businesses. They will be the key to the revitalization of the
Gulf Coast. We also cannot succeed if our homeowners are being buried
under red tape and regulations.
The people who work for the Small Business Administration and FEMA
are dedicated and interested to help in the recovery of our region.
However, these individuals are operating under a system which is
inadequate and, in some cases, unresponsive to needs on the ground.
I come to the floor today to introduce a bill which provides
commonsense solutions to get the Federal assistance to our struggling
businesses and homeowners. If we don't help them now, building a strong
Gulf Coast will be all the more difficult if residents cannot rebuild
their homes and businesses cannot open their doors.
After talking to the business leaders and small businesses in my
State, there are two things that they need right now: access to capital
and additional time to repay their SBA Disaster loans. For homeowners,
they are still encountering an SBA which is only disbursing small
amounts of loan funds for home rebuilding. The SBA is also deducting
proceeds from State-administered housing recovery grants to payoff
existing SBA Disaster home loans. I understand the SBA is just doing
its job and following the current laws, but I believe this is a
situation where the current laws are actually hurting taxpayers in
their efforts to fully recover.
For example, under current law, the SBA cannot disburse more than
$10,000 for an approved Disaster Loan without showing collateral. This
is to limit the loss to the SBA in the event that a loan defaults.
However, this disbursement amount has not been increased since 1998 and
these days, $10,000 is not enough to get a business up and running or
to allow a homeowner to start making repairs. Our bill increases this
collateral requirement for Katrina and Rita Disaster Loans from $10,000
to $35,000.
To address the lack of access to capital for our businesses, the bill
includes a provision to provide funds to Louisiana, Mississippi,
Alabama, and Texas to help small businesses now. Not three months from
now, but as quickly as possible. We are asking for $100 million so that
businesses can have money they need to repair, rebuild, and pay their
employees until they get back up and running again. The States know
what the needs of their affected businesses are and we want to provide
them with this money so they can start helping businesses now.
Many businesses and homeowners are also coming up on the end of their
standard one-year deferment of payment on principal and interest on
their SBA Disaster Loans. For most disasters, one-year is more than
enough time for borrowers to get back on their feet. But for disasters
on the scale of Katrina and Rita, one-year came and went, with
communities just now seeing gas stations open and some homeowners are
just now returning to rebuild their homes. This is a unique situation
and for French Quarter businesses, where tourism is down 85 percent
from pre-Katrina levels, to require them to start making payments on a
$50,000 loan is virtually impossible if there are no customers!
Homeowners too are experiencing widespread uncertainty and I believe
the current one-year deferment requires serious reconsideration. That
is why this bill gives borrowers an additional year to get their lives
in order--allow residents to begin fixing their homes and allow
businesses the time for economic activity to pick back up.
For homeowners in Louisiana, the State is doing its part by setting
up the Louisiana Road Home program, to provide homeowners with up to
$150,000 in grant proceeds for uninsured losses on their properties.
However, many applicants are concerned because under the Stafford and
Small Business Acts, the SBA is required to ensure there are no
`duplication of benefits' provided to disaster victims. This means that
SBA must review every file which received an SBA Disaster Loan, and if
there is deemed to be a duplication, deduct the duplication amount from
the grant proceeds. As I said, I want the SBA to ensure taxpayers funds
are used wisely, but at the same time, I want to ensure that all
residents are able to get the funds they need to rebuild their homes.
Under the current scenario, some residents who have additional
uninsured losses, are being required to still pay back these grant
proceeds. This is because many SBA loss inspections were done right
after the storms in 2005, but since then building/labor costs have
increased dramatically, and this is not reflected in the SBA verified
loss. Borrowers are able to request a loan modification from SBA, but
many residents who waited months and months for SBA to respond, are
wary to go through the process again, especially if there is a prospect
they will be declined for the increased loan amount. I can't blame them
because there is enough uncertainty down there right now. Personally, I
would also be hesitant to go through the SBA loan process again if I
had to fill out as much paperwork as my constituents have had to fill
out, and to receive constant requests for more information once they
think they are done with submitting information.
For this reason, this bill provides the SBA Administrator the
flexibility to consider this `duplication of benefits' to be, rather
than the entire SBA loan amount, to instead be the difference between
the Federal Government's subsidized interest rate on the loan and the
market rate at which the borrower could have borrowed such funds. This
provides borrowers with additional funds for rebuilding while retaining
the Federal Government's financial responsibility to taxpayers.
In introducing this bill today, I am hopeful it sends the signal to
Gulf Coast residents and businesses that Congress has not forgotten
about them. Congress has done a great deal during
[[Page S11074]]
the 109th Congress to help disaster victims, but that does mean we
should just write off recurring problems to the responsibility of
states or disaster victims themselves. I believe that both the
leadership on the Senate Committee on Small Business & Entrepreneurship
as well as the new SBA Administrator, Steve Preston, are receptive to
addressing these ongoing needs in the Gulf Coast. I look forward to
working closely with them in the coming weeks to provide substantive
and lasting solutions for our small businesses and homeowners.
I urge my colleagues to support this important legislation and ask
unanimous consent that the text of the legislation be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 4072
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 ``Gulf Coast Back to Business
and Homes Act of 2006''.
SEC. 2. FINDINGS.
Congress finds that--
(1) 43 percent of businesses that close following a natural
disaster never reopen;
(2) an additional 29 percent of businesses close down
permanently within 2 years of a natural disaster;
(3) Hurricane Katrina struck the Gulf Coast of the United
States on August 29, 2005, negatively impacting small
business concerns and disrupting commerce in the States of
Louisiana, Mississippi, and Alabama;
(4) Hurricane Rita struck the Gulf Coast of the United
States on September 24, 2005, negatively impacting small
business concerns and disrupting commerce in the States of
Texas and Louisiana;
(5) according to the United States Chamber of Commerce,
more than 125,000 small and medium-sized businesses in the
Gulf Coast were disrupted by Hurricane Katrina or Hurricane
Rita;
(6) due to a slow initial Federal response and the
widespread devastation in the affected States, businesses
impacted by Hurricane Katrina are in dire need of increased
access to capital and technical assistance to recover and
prosper; and
(7) without the full recovery and prosperity of affected
businesses, the Gulf Coast, and the rest of the United
States, will be negatively impacted.
SEC. 3. DEFINITIONS.
In this Act--
(1) the term ``Disaster Area'' means an area in which the
President has declared a major disaster in response to
Hurricane Katrina of 2005 or Hurricane Rita of 2005;
(2) the term ``major disaster'' has the meaning given the
term in section 102 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5122); and
(3) the term ``small business concern'' has the meaning
given the term in section 3 of the Small Business Act (15
U.S.C. 632).
SEC. 4. SMALL BUSINESS CONCERN RECOVERY GRANTS.
(a) In General.--There are authorized to be appropriated to
the Secretary of Commerce $100,000,000 for the Economic
Development Administration of the Department of Commerce to
make grants to the appropriate State government agencies in
Louisiana, Alabama, Mississippi, and Texas, to carry out this
section.
(b) Disbursement of Funds.--The Department of Commerce
shall disburse the funds authorized under subsection (a) in
the most expeditious manner possible to the designated
States, based on--
(1) the number of small business concerns directly damaged
or disrupted by Hurricane Katrina of 2005 or Hurricane Rita
of 2005 in the State;
(2) the number of residents displaced from the State by
Hurricane Katrina of 2005 or Hurricane Rita of 2005;
(3) the number of jobs lost or disrupted by Hurricane
Katrina of 2005 or Hurricane Rita of 2005 in the State;
(4) the extent of economic disruption by Hurricane Katrina
of 2005 or Hurricane Rita of 2005 in the State; and
(5) the number of evacuees from any other State due to
Hurricane Katrina of 2005 or Hurricane Rita of 2005, to whom
the designated State is providing assistance.
(c) Use of Funds.--
(1) In general.--Grants awarded to a State under subsection
(a) shall be used by the State to provide grants, which may
be made to any small business concern located in a Disaster
Area that was negatively impacted by Hurricane Katrina of
2005 or Hurricane Rita of 2005, to assist such small business
concern for the purposes of--
(A) paying employees;
(B) paying bills and other existing financial obligations;
(C) making repairs;
(D) purchasing inventory;
(E) restarting or operating that business in the community
in which it was conducting operations prior to Hurricane
Katrina of 2005 or Hurricane Rita of 2005, or to a
neighboring area or county or parish in a Disaster Area; or
(F) covering additional costs until that small business
concern is able to obtain funding through insurance claims,
Federal assistance programs, or other sources.
(2) Criteria.--Notwithstanding any other provision of law,
in making grants under paragraph (1), a State may use such
criteria as the State determines appropriate, and shall not
be required to apply eligibility criteria for programs
administered by the Federal Government, including the
Department of Commerce.
(3) Administrative expenses.--The Department of Commerce
may use not more than $1,000,000 of the funds authorized
under subsection (a) to administer the provision of grants to
the designated States under this subsection.
SEC. 5. DISASTER LOANS AFTER HURRICANE KATRINA OR HURRICANE
RITA.
(a) In General.--Section 7(b) of the Small Business Act (15
U.S.C. 636(b)) is amended by inserting immediately after
paragraph (3) the following:
``(4) Disaster loans after hurricane katrina or hurricane
rita in a disaster area.--
``(A) Definitions.--In this paragraph--
``(i) the term `Disaster Area' means an area in which the
President has declared a major disaster in response to
Hurricane Katrina of 2005 or Hurricane Rita of 2005; and
``(ii) the term `qualified borrower' means a person to whom
the Administrator made a loan under this section because of
Hurricane Katrina of 2005 or Hurricane Rita of 2005.
``(B) Deferment of disaster loan payments.--
``(i) In general.--Notwithstanding any other provision of
law, payments of principal and interest on a loan to a
qualified borrower made before December 31, 2006, shall be
deferred, and no interest shall accrue with respect to such
loan, during the time period described in clause (ii).
``(ii) Time period.--The time period for purposes of clause
(i) shall be 1 year from the later of the date of enactment
of this paragraph or the date on which funds are distributed
under a loan described in clause (i), but may be extended to
2 years from such date, at the discretion of the
Administrator.
``(iii) Resumption of payments.--At the end of the time
period described in clause (ii), the payment of periodic
installments of principal and interest shall be required with
respect to such loan, in the same manner and subject to the
same terms and conditions as would otherwise be applicable to
any other loan made under this subsection.''.
(b) Increasing Collateral Requirements.--
(1) In general.--Notwithstanding any other provision of
law, including section 7(c)(6) of the Small Business Act (15
U.S.C. 636(c)(6)), the Administrator may not require
collateral for any covered loan made by the Administrator.
(2) Definition.--In this subsection, the term ``covered
loan'' means a loan in an amount of not more than $35,000
made--
(A) under section 7(b)(1) of the Small Business Act (15
U.S.C. 636(b)(1));
(B) as a result of Hurricane Katrina of 2005 or Hurricane
Rita of 2005; and
(C) after the date of enactment of this Act.
SEC. 6. WAIVER OF DUPLICATION OF CERTAIN BENEFITS.
(a) In General.--Chapter 9 of title II of the Emergency
Supplemental Appropriations Act for Defense, the Global War
on Terror, and Hurricane Recovery, 2006 (Public Law 109-234;
120 Stat. 471) is amended under the heading ``community
development fund (including transfer of funds)'' under the
heading ``Community Planning and Development'' under the
heading ``DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT'', by
inserting after ``Army Corps of Engineers:'' the following:
``Provided further, That notwithstanding the previous proviso
or any other provision of law, in providing assistance in the
State of Louisiana, the Administrator of the Small Business
Administration may (in determining whether activities are
reimbursable under, or whether funds have been made available
under, the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.) using amounts made
available under this heading) use as the amount of a loan
under section 7(b) of the Small Business Act (15 U.S.C.
636(b)) the amount attributable to the difference between the
rate of interest on such loan and the market rate at which
such borrower could have borrowed such funds, over the period
of such loan:''.
(b) Effective Date and Applicability.--
(1) Effective date.--The amendments made by this section
shall be deemed to have taken effect as though enacted as
part of the Emergency Supplemental Appropriations Act for
Defense, the Global War on Terror, and Hurricane Recovery,
2006 (Public Law 109-234; 120 Stat. 418).
(2) Applicability.--The amendments made by this section
shall apply to any application for assistance under section
7(b) of the Small Business Act (15 U.S.C. 636(b)) that is
submitted not later than 1 year after the date of enactment
of this Act.
____________________