Community Development Financial Institutions Fund Amendments Act of 1998

Summary: Community Development Financial Institutions Fund Amendments Act of 1998 - Modifies the Community Development Banking and Financial Institutions Act of 1994 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). 
Authorizes an insured depository institution to apply for any community enterprise assessment credit for any semiannual period for the amount of new originations of qualified loans and other assistance provided to community development financial institutions in distressed communities.  Allows application for credit for the amount of the increase (currently, the amount) of deposits accepted from persons domiciled in the distressed community. Allows credits for assistance other than financial. 
Revises the formula for determining the amount of an assessment credit for all such activities with respect to new lifeline accounts. 
Expands the scope of assistance that the Community Enterprise Assessment Credit Board may take into account for purposes of community enterprise assessment credits.  Permits the Board to:  (1) establish guidelines for analyzing other than technical assistance by an institution to residents of a qualified distressed community; and (2) employ alternative criteria for defining distressed communities. 
(Sec. 4) Amends the Act to extend the authorization of appropriations for the Act and for small business capital enhancement. 
(Sec. 5) Amends the Riegle Community Development and Regulatory Improvement Act of 1994 to redefine a financial institution to include a community development financial institution. 
Repeals the prior appropriations prerequisite to State participation in the Small Business Capital Enhancement Program. 
Revises reimbursement guidelines to declare that participating States shall be reimbursed according to criteria established by the Fund, which may include:  (1) whether a participating State is creating a new program, or is expanding in scope or scale an existing State program; (2) the need for Fund reimbursement; and (3) the availability of Fund resources.

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 1998''.
    (b) Table of Contents.--The table of contents for this Act follows:

    Sec. 1. Short title; table of contents.
    Sec. 2. Technical corrections to reflect status of the Fund within 
                            Treasury Department; miscellaneous 
                            technical corrections.
    Sec. 3. Amendments to programs administered by the Fund.
    Sec. 4. Extension of authorization.
    Sec. 5. Amendments to Small Business Capital Enhancement Program.

 SEC. 2. TECHNICAL CORRECTIONS TO REFLECT STATUS OF THE FUND WITHIN 
              TREASURY DEPARTMENT; 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); and
                    (B) by redesignating paragraphs (2) through (21) as 
                paragraphs (1) through (20), respectively.
            (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 it appears and inserting instead ``Secretary of the 
        Treasury''.
    (c) Establishment of Fund Within Treasury Department.--
            (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 of the Treasury.
            ``(2) Appointment of officers and employees.--The Secretary 
        of the Treasury 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 of the Treasury may 
        promulgate such regulations and procedures as may be necessary 
        to carry out this subtitle.''.

 SEC. 3. AMENDMENTS TO PROGRAMS ADMINISTERED BY THE FUND.

    (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.--The Fund may offer the training program described in 
this section directly, through grants, contracts, or cooperative 
agreements with other organizations. The Fund may provide the training 
through grants, contracts, or cooperative agreements with 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.--Section 233(a)(2) of the Bank 
        Enterprise Act (12 U.S.C. 1834a(a)(2)) is amended--
                    (A) by striking ``for for'' in the text preceding 
                subparagraph (A) 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 ``and 
                (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.--
        Section 233(a)(4) of the Bank Enterprise Act (12 U.S.C. 
        1834a(a)(4)) is amended--
                    (A) in the text preceding 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 
                deems 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.

    Section 121(a)(1) of the Community Development Banking and 
Financial Institutions Act of 1994 (12 U.S.C. 4718(a)(1)) is amended to 
read as follows:
            ``(1) In general.--There are authorized to be appropriated 
        to the Fund, to remain available until expended, such funds as 
        may be necessary to carry out this subtitle and subtitle B of 
        title II.''.

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.--The Fund shall reimburse participating 
States according to criteria established by the Fund. Such criteria 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. 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 
repealed.