HR 3161 — CDFI Fund Transparency Act

changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italics and existing law in which no change is 
proposed is shown in roman):

 RIEGLE COMMUNITY DEVELOPMENT AND REGULATORY 
 IMPROVEMENT ACT OF 1994 

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 TITLE I--COMMUNITY DEVELOPMENT 
 AND CONSUMER PROTECTION 

 Subtitle A--Community Development 
 Banking and Financial Institutions Act 

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SEC. 104. ESTABLISHMENT OF NATIONAL FUND FOR COMMUNITY DE-
 VELOPMENT BANKING.

 (a) Establishment.--
 (1) In general.--There is established a corporation 
 to be known as the Community Development Financial 
 Institutions Fund that shall have the duties and 
 responsibilities specified by this subtitle and 
 subtitle B of title II. The Fund shall have succession 
 until dissolved. The offices of the Fund shall be in 
 Washington, D.C. The Fund shall not be affiliated with 
 or be within any other agency or department of the 
 Federal Government.
 (2) Wholly owned government corporation.--The Fund 
 shall be a wholly owned Government corporation in the 
 executive branch and shall be treated in all respects 
 as an agency of the United States, except as otherwise 
 provided in this subtitle.
 (b) Management of Fund.--
 (1) Appointment of administrator.--The management of 
 the Fund shall be vested in an Administrator, who shall 
 be appointed by the President. The Administrator shall 
 not engage in any other business or employment during 
 service as the Administrator.
 (2) Chief financial officer.--The Administrator shall 
 appoint a chief financial officer, who shall have the 
 authority and functions of an agency Chief Financial 
 Officer under section 902 of title 31, United States 
 Code. In the event of a vacancy in the position of the 
 Administrator or during the absence or disability of 
 the Administrator, the chief financial officer shall 
 perform the duties of the position of Administrator.
 (3) Other officers and employees.--The Administrator 
 may appoint such other officers and employees of the 
 Fund as the Administrator determines to be necessary or 
 appropriate.
 (4) Expedited hiring.--During the 2-year period 
 beginning on the date of enactment of this Act, the 
 Administrator may--
 (A) appoint and terminate the individuals 
 referred to in paragraphs (2) and (3) without 
 regard to the civil service laws and 
 regulations; and
 (B) fix the compensation of the individuals 
 referred to in paragraph (3) without regard to 
 the provisions of chapter 51 and subchapter III 
 of chapter 53 of title 5, United States Code, 
 relating to classification of positions and 
 General Schedule pay rates, except that the 
 rate of pay for such individuals may not exceed 
 the rate payable for level V of the Executive 
 Schedule under section 5316 of such title.
 (5) Annual testimony.--The Secretary of the Treasury 
 (or a designee of the Secretary) shall, at the 
 discretion of the Chair of the Financial Services 
 Committee of the House of Representatives and the Chair 
 of the Banking, Housing, and Urban Affairs Committee of 
 the Senate, annually testify before such committees (or 
 a subcommittee of such committees) regarding--
 (A) the operations of the Fund during the 
 previous year;
 (B) steps the Secretary and the Fund are 
 taking to support the work of community 
 development financial institutions 
 participating in the State Small Business 
 Credit Initiative;
 (C) steps the Secretary and the Fund are 
 taking to support community development 
 financial institutions, including those that 
 are minority depository institutions, through 
 the financial agent mentor-protege program;
 (D) how community development financial 
 institutions, including minority depository 
 institutions, that received amounts provided in 
 the Coronavirus Response and Relief 
 Supplemental Appropriations Act, 2021 have used 
 and are using such amounts; and
 (E) any steps the Secretary and the Fund are 
 taking to--
 (i) support minority lending 
 institutions, including minority 
 depository institutions, through 
 coordination with prudential regulators 
 to promote and preserve minority 
 depository institutions pursuant to 
 section 308 of the Financial 
 Institutions Reform, Recovery, and 
 Enforcement Act of 1989;
 (ii) address technology challenges 
 facing community development financial 
 institutions, including those that are 
 minority depository institutions;
 (iii) incentivize community 
 development financial institutions to 
 provide start-up capital for young 
 entrepreneurs;
 (iv) raise public awareness about 
 community development financial 
 institutions and minority depository 
 institutions, including providing a 
 searchable map with institution 
 locations;
 (v) coordinate with regulators to 
 ensure certification and reporting 
 requirements are appropriately 
 streamlined for community development 
 financial institutions; and
 (vi) explore securitization options 
 that might help expand the reach of 
 community development financial 
 institutions.
 (c) General Powers.--In carrying out the functions of the 
Fund, the Administrator--
 (1) shall have all necessary and proper authority to 
 carry out this subtitle and subtitle B of title II;
 (2) shall have the power to adopt, alter, and use a 
 corporate seal for the Fund, which shall be judicially 
 noticed;
 (3) may adopt, amend, and repeal bylaws, rules, and 
 regulations governing the manner in which business of 
 the Fund may be conducted and such rules and 
 regulations as may be necessary or appropriate to 
 implement this subtitle and subtitle B of title II;
 (4) may enter into, perform, and enforce such 
 agreements, contracts, and transactions as may be 
 deemed necessary or appropriate to the conduct of 
 activities authorized under this subtitle and subtitle 
 B of title II;
 (5) may determine the character of and necessity for 
 expenditures of the Fund and the manner in which they 
 shall be incurred, allowed, and paid;
 (6) may utilize or employ the services of personnel 
 of any agency or instrumentality of the United States 
 with the consent of the agency or instrumentality 
 concerned on a reimbursable or nonreimbursable basis; 
 and
 (7) may execute all instruments necessary or 
 appropriate in the exercise of any of the functions of 
 the Fund under this subtitle and subtitle B of title II 
 and may delegate to the officers of the Fund such of 
 the powers and responsibilities of the Administrator as 
 the Administrator deems necessary or appropriate for 
 the administration of the Fund.
 (d) Advisory Board.--
 (1) Establishment.--There is established an advisory 
 board to the Fund to be known as the Community 
 Development Advisory Board, which shall be operated in 
 accordance with the provisions of chapter 10 of title 
 5, United States Code, except that section 1013 of 
 title 5, United States Code, does not apply to the 
 Board.
 (2) Membership.--The Board shall consist of 15 
 members, including--
 (A) the Secretary of Agriculture or his or 
 her designee;
 (B) the Secretary of Commerce or his or her 
 designee;
 (C) the Secretary of Housing and Urban 
 Development or his or her designee;
 (D) the Secretary of the Interior or his or 
 her designee;
 (E) the Secretary of the Treasury or his or 
 her designee;
 (F) the Administrator of the Small Business 
 Administration or his or her designee; and
 (G) 9 private citizens, appointed by the 
 President, who shall be selected, to the 
 maximum extent practicable, to provide for 
 national geographic representation and racial, 
 ethnic, and gender diversity, including--
 (i) 2 individuals who are officers of 
 existing community development 
 financial institutions;
 (ii) 2 individuals who are officers 
 of insured depository institutions;
 (iii) 2 individuals who are officers 
 of national consumer or public interest 
 organizations;
 (iv) 2 individuals who have expertise 
 in community development; and
 (v) 1 individual who has personal 
 experience and specialized expertise in 
 the unique lending and community 
 development issues confronted by Indian 
 tribes on Indian reservations.
 (3) Chairperson.--The members of the Board specified 
 in paragraph (2)(G) shall select, by majority vote, a 
 chairperson of the Board, who shall serve for a term of 
 2 years.
 (4) Board function.--It shall be the function of the 
 Board to advise the Administrator on the policies of 
 the Fund regarding activities under this subtitle. The 
 Board shall not advise the Administrator on the 
 granting or denial of any particular application.
 (5) Terms of private members.--
 (A) In general.--Each member of the Board 
 appointed under paragraph (2)(G) shall serve 
 for a term of 4 years.
 (B) Vacancies.--Any member appointed to fill 
 a vacancy occurring prior to the expiration of 
 the term for which the previous member was 
 appointed shall be appointed for the remainder 
 of such term. Members may continue to serve 
 following the expiration of their terms until a 
 successor is appointed.
 (6) Meetings.--The Board shall meet at least annually 
 and at such other times as requested by the 
 Administrator or the chairperson. A majority of the 
 members of the Board shall constitute a quorum.
 (7) Reimbursement for expenses.--The members of the 
 Board may receive reimbursement for travel, per diem, 
 and other necessary expenses incurred in the 
 performance of their duties, in accordance with chapter 
 10 of title 5, United States Code.
 (8) Costs and expenses.--The Fund shall provide to 
 the Board all necessary staff and facilities.
 (f) Government Corporation Control Act Exemption.--Section 
9107(b) of title 31, United States Code, shall not apply to 
deposits of the Fund made pursuant to section 108.
 (g) Limitation of Fund and Federal Liability.--The liability 
of the Fund and the United States Government arising out of any 
investment in a community development financial institution in 
accordance with this subtitle shall be limited to the amount of 
the investment. The Fund shall be exempt from any assessments 
and other liabilities that may be imposed on controlling or 
principal shareholders by any Federal law or the law of any 
State, Territory, or the District of Columbia. Nothing in this 
subsection shall affect the application of any Federal tax law.
 (h) Prohibition on Issuance of Securities.--The Fund may not 
issue stock, bonds, debentures, notes, or other securities.
 (j) Assisted Institutions Not United States 
Instrumentalities.--A community development financial 
institution or other organization that receives assistance 
pursuant to this subtitle shall not be deemed to be an agency, 
department, or instrumentality of the United States.
 (k) Transition Period.--
 (1) In general.--During the transition period, the 
 Secretary of the Treasury may--
 (A) assist in the establishment of the 
 administrative functions of the Fund listed in 
 paragraph (2); and
 (B) hire not more than 6 individuals to serve 
 as employees of the Fund during the transition 
 period.
 (2) Continued service.--Individuals hired in 
 accordance with paragraph (1)(B) may continue to serve 
 as employees of the Fund after the transition period.
 (3) Administrative functions.--The administrative 
 functions referred to in paragraph (1)(A) shall be 
 limited to--
 (A) establishing accounting, information, and 
 recordkeeping systems for the Fund; and
 (B) procuring office space, equipment, and 
 supplies.
 (4) Expedited hiring.--During the transition period, 
 the Secretary of the Treasury may--
 (A) appoint and terminate the individuals 
 referred to in paragraph (1)(B) without regard 
 to the civil service laws and regulations; and
 (B) fix the compensation of the individuals 
 referred to in paragraph (1)(B) without regard 
 to the provisions of chapter 51 and subchapter 
 III of chapter 53 of title 5, United States 
 Code, relating to classification of positions 
 and General Schedule pay rates, except that the 
 rate of pay for such individuals may not exceed 
 the rate payable for level V of the Executive 
 Schedule under section 5316 of such title.
 (5) Certain employees.--During the transition period, 
 employees of the Department of the Treasury may only 
 comprise less than one-half of the total number of 
 individuals hired in accordance with paragraph (1)(B).
 (6) Transition expenses.--Amounts previously 
 appropriated to the Department of the Treasury may be 
 used to pay obligations and expenses of the Fund 
 incurred under this section, and such amounts may be 
 reimbursed by the Fund to the Department of the 
 Treasury from amounts appropriated to the Fund for 
 fiscal year 1995.
 (7) Definition.--For purposes of this subsection, the 
 term ``transition period'' means the period beginning 
 on the date of enactment of this Act and ending on the 
 date on which the Administrator is appointed.

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