S. 4072Senate109th Congress (2005-2007)In Committee

Gulf Coast Back to Business and Homes Act of 2006

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2 earlier actions

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Small Business and Entrepreneurship. (text of measure as introduced: CR S11074)

Small Business and Entrepreneurship Committee

November 16, 2006

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SenateIntro Referral

Introduced in Senate

November 16, 2006

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S11073-11074)

November 16, 2006

SenateIntro Referral

Read twice and referred to the Committee on Small Business and Entrepreneurship. (text of measure as introduced: CR S11074)

Small Business and Entrepreneurship Committee

November 16, 2006

Floor Debate

2 members

What members said about S. 4072 on the floor

2 Democrats

Sen. Daniel K. AkakaD-HI · Nov 16, 2006

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…

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

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.

Sen. Mary L. LandrieuD-LA · Nov 16, 2006

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.

Bill Text

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Introduced in SenateIssued November 16, 2006

109th CONGRESS

2d Session

S. 4072

IN THE SENATE OF THE UNITED STATES

November 16, 2006

Ms. Landrieu (for herself and Mr. Kerry) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship

A BILL

To address ongoing small business and homeowner needs in the Gulf Coast States impacted by Hurricane Katrina and Hurricane Rita.

Short title

This Act may be cited as the Gulf Coast Back to Business and Homes Act of 2006.

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.

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).

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.

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.

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.