[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4100 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 4100
To establish the Louisiana Recovery Corporation for purposes of
economic stabilization and redevelopment of devastated areas in
Louisiana, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 20, 2005
Mr. Baker introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To establish the Louisiana Recovery Corporation for purposes of
economic stabilization and redevelopment of devastated areas in
Louisiana, and for other purposes.
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 ``Louisiana Recovery Corporation
Act''.
SEC. 2. ESTABLISHMENT OF CORPORATION.
(a) In General.--There is hereby established the Louisiana Recovery
Corporation (hereafter in this Act referred to as the ``Corporation'').
(b) Status of Corporation.--The Corporation shall be an independent
establishment in the executive branch and shall be deemed to be an an
agency of the United States for purposes of subchapter II of chapter 5
and chapter 7 of title 5, United States Code.
(c) Principal Office.--The principal office of the Corporation
shall be located in the State of Louisiana, but there may be
established agencies or branch offices in the District of Columbia and
in any city or parish in Louisiana to the extent provided for in the
by-laws of the Corporation.
(d) Corporate Divisions.--
(1) In general.--At a minimum, the Corporation shall
establish and maintain separate divisions for the following
subjects:
(A) Environment and Land Use Management.
(B) Economic Development.
(C) Property Acquisition.
(D) Property Management.
(E) Property Disposition.
(F) Urban Homesteading and Community and Faith-
Based Organizations.
(2) Management of divisions.--Management of each division
shall be vested in an executive vice president who shall be
appointed by the Board of Directors in the manner provided by
the Board of Directors and the by-laws of the Corporation.
SEC. 3. MANAGEMENT.
(a) Board of Directors.--
(1) In general.--The management of the Corporation shall be
vested in a Board of Directors consisting of 7 individuals
appointed by the President, by and with the advice and consent
of the Senate, from among individuals who are citizens of the
United States and who, by virtue of their education, training
or experience in environmental land reclamation, economic
development, housing development, land use, or urban planning,
are especially qualified to serve on the Board of Directors.
(2) Nominations by governor of louisiana.--2 of the members
of the Board of Directors shall be appointed under paragraph
(1) from among individuals who are nominated for appointment by
the Governor of Louisiana.
(b) Chairperson and Vice Chairperson.--
(1) Chairperson.--1 of the 5 members of the Board of
Directors who were not nominated by the Governor of Louisiana
shall be designated by the President, by and with the advice
and consent of the Senate, to serve as Chairperson of the Board
of Directors and the chief executive officer of the
Corporation.
(2) Vice chairperson.--1 of the 5 members of the Board of
Directors who were not nominated by the Governor of Louisiana
shall be designated by the President, by and with the advice
and consent of the Senate, to serve as Vice Chairperson of the
Board of Directors.
(3) Acting chairperson.--In the event of a vacancy in the
position of Chairperson of the Board of Directors or during the
absence or disability of the Chairperson, the Vice Chairperson
shall act as Chairperson.
(c) Terms.--
(1) In general.--Each member of the Board of Directors
shall be appointed to a term of 5 years.
(2) Staggered terms.--Of the members first appointed to the
Board of Directors after the date of the enactment of this
Act--
(A) 2 shall be appointed for a term of 5 years;
(B) the 2 members who were nominated by the
Governor of Louisiana shall be appointed for a term of
3 years; and
(C) 3 shall be appointed for a term of 2 years.
(3) Interim appointments.--Any member appointed to fill a
vacancy occurring before the expiration of the term for which
such member's predecessor was appointed shall be appointed only
for the remainder of such term.
(4) Continuation of service.--The Chairperson, Vice
Chairperson, and each appointed member may continue to serve
after the expiration of the term of office to which such member
was appointed until a successor has been appointed and
qualified.
(5) Removal for cause.--The Chairperson, Vice Chairperson,
and any appointed member may may be removed by the President
for cause.
(6) Full-time service.--The members of the Board of
Directors shall serve on a full-time basis.
(d) Vacancy.--Any vacancy on the Board of Directors shall be filled
in the manner in which the original appointment was made.
(e) Ineligibility for Other Offices.--
(1) Other government positions.--No person may serve as a
member of the Board of Directors while holding any position as
an officer or employee of the Federal Government, any State
government, or any political subdivision of any State.
(2) Restriction during service.--No member of the Board of
Directors may--
(A) be an officer or director of any insured
depository institution, insured credit union,
depository institution holding company, Federal reserve
bank, Federal home loan bank, investment bank, mortgage
bank, or any other entity which enters into any
contract with the Corporation; or
(B) hold stock in any insured depository
institution, depository institution holding company,
investment bank, mortgage bank, or any other entity
which enters into any contract with the Corporation.
(3) Certification.--Upon taking office, each member of the
Board of Directors shall certify under oath that such member
has complied with this subsection and such certification shall
be filed with the secretary of the Board of Directors.
(f) Clarification of Nonliability.--
(1) In general.--A director, member, officer, or employee
of the Corporation has no liability under the Securities Act of
1933 with respect to any claim arising out of or resulting from
any act or omission by such person within the scope of such
person's employment in connection with any transaction
involving the disposition of assets (or any interests in any
assets or any obligations backed by any assets) by the
Corporation. This subsection shall not be construed to limit
personal liability for criminal acts or omissions, willful or
malicious misconduct, acts or omissions for private gain, or
any other acts or omissions outside the scope of such person's
employment.
(2) Effect on other law.-- This subsection shall not be
construed as--
(A) affecting--
(i) any other immunities and protections
that may be available to person to whom
paragraph (1) applies under applicable law with
respect to such transactions, or
(ii) any other right or remedy against the
Corporation, against the United States under
applicable law, or against any person other
than a person described in paragraph (1)
participating in such transactions; or
(B) limiting or altering in any way the immunities
that are available under applicable law for Federal
officials and employees not described in this
subsection.
SEC. 4. CAPITALIZATION OF THE CORPORATION.
(a) In General.--The Corporation shall have capital stock
subscribed to by the United States Government in such amount as the
President may determine to be appropriate, to the extent provided in
advance in an appropriation Act for any fiscal year.
(b) Certificates.--Certificates evidencing shares of nonvoting
capital stock of the Corporation shall be issued by the Corporation to
the President of the United States, or to such other person or persons
as the President may designate from time to time, to the extent of
payments made for the capital stock of the Corporation.
(c) Public Debt Transaction.--For the purpose of purchasing shares
of capital stock of the Corporation, the Secretary of the Treasury may
use as a public-debt transaction the proceeds of any securities issued
under chapter 31 of title 31, United States Code.
(d) Reports.--
(1) In general.--The Board of Directors shall submit to the
Director of the Office of Management and Budget and to the
Secretary of the Treasury quarterly reports and an annual
report on the expenses of the Corporation during the period
covered by the report, the financial condition of the
Corporation as of the end of such period, the results of the
Corporation's operations during such period, and the progress
made during such period in fulfilling the mission and purposes
of the Corporation, together with a copy of the Corporation's
financial operating plans and forecasts for the annual or
quarterly period (as the case may be) succeeding the period
covered by the report.
(2) Public availability.--Each report submitted to the
Director of the Office of Management and Budget and to the
Secretary of the Treasury under paragraph (1) shall be made
available to the public.
(e) Termination of Authority to Issue Stock.--No shares of capital
stock of the Corporation may be issued after the end of the 10-year
period beginning on the date of the enactment of this Act.
(f) Revenue Used to Retire Stock.--Any net revenue of the
Corporation in excess of amounts required to meet on-going expenses and
investments shall be paid to the Secretary of the Treasury to redeem
the capital stock of the Corporation and shall be deposited in the
general fund of the Treasury.
SEC. 5. MISSION, PURPOSE, AND DUTIES OF THE CORPORATION.
(a) Mission.--The primary mission and purpose of the Corporation
shall be the economic stabilization and redevelopment of areas within
Louisiana that were devastated or significantly distressed by Hurricane
Katrina or Hurricane Rita.
(b) Economic Stabilization.--In executing its economic
stabilization mandate, the Corporation shall, after consultation with
State and local officials and pursuant to agreement that eligible
properties are not likely to be redeveloped without Corporation
assistance, locate and acquire real property (commercial and
residential) in such a manner and subject to such conditions that, upon
the consummation of any acquisition of real property securing a
mortgage loan--
(1) the mortgagee's debt shall be considered paid in full
by the mortgagor; and
(2) all title and interest in the real property securing
such mortgage loan passes to the Corporation.
(c) Redevelopment.--In executing its redevelopment mandate, the
Corporation shall, after consultation with State and local officials,
carry out the following activities:
(1) Package for sale acquired real property in substantial
tracts of land.
(2) Make improvements to such tracts of land so as to make
the land suitable for sale and development, including such
basic improvements as the following:
(A) Construction and reconstruction of neighborhood
roads.
(B) Repair or replacement of water and wastewater
infrastructure.
(C) Similar activities necessary to maximize the
return on acquired real property.
(3) Through a competitive bidding process, dispose of such
acquired properties in a profitable manner.
(4) In consultation with State and local officials, provide
for the protection and preservation of historical and other
sites of cultural significance in such a manner that promotes
local heritage and interest.
(d) Office of Internal Audit.--
(1) Establishment.--The Board of Directors shall establish
an audit committee, to be known as the Office of Internal
Audit.
(2) Reports.--The Office of Internal Audit shall report to
the Board of Directors no less than 4 times a year on the
Office's reviews of the activities, contracts, and financial
statements of the Corporation.
(3) Employees.--The Office of Internal Audit shall set the
compensation and benefits for the employees of the Office.
(4) Relationship to inspector general.--Notwithstanding any
provision of the Inspector General Act of 1978, the Board of
Directors shall provide for the Inspector General to report to
the Office of Internal Audit and to the Board of Directors.
(e) Inspector General.--For purposes of the Inspector General Act
of 1978--
(1) the Board of Directors shall be treated as the head of
the establishment; and
(2) the Corporation shall be treated as the establishment.
SEC. 6. PROPERTY ACQUISITION AUTHORITY AND METHODOLOGY.
(a) In General.--Pursuant to section 5(b), the Corporation shall
negotiate to acquire title to real property and compensate any property
owner, mortgagee or primary lien holder with an interest in such real
property.
(b) Purchase Offer for Real Property Secured by a Lien.--The
Corporation shall take into consideration the following in constructing
offers of compensation for the acquisition of real property secured by
a lien:
(1) The Corporation's expenses to improve the property for
sale and development.
(2) The Corporation's anticipated return upon the
property's disposition.
(3) The post-event fair market value of the property.
(4) The remaining principle balance of any outstanding
mortgage.
(5) The potential for economic recovery of the mortgagee.
(c) Purchase From Owner.--The Corporation shall take into
consideration the following in constructing offers of compensation for
any real property where no lien secures such real property:
(1) The Corporation's expenses to improve the property for
sale and development.
(2) The Corporation's anticipated return upon the
property's disposition.
(3) The post-event fair market value of the property.
(4) The potential for economic recovery of the property
owner.
(d) Right of First Refusal and Option to Repurchase Real
Property.--
(1) In general.--Subject to paragraph (2), the Corporation
shall ensure that any entity awarded a contract under Section 7
shall grant a right of first refusal and option to obtain an
interest in real property of comparable size and location in
redeveloped areas to any party previously holding title.
(2) Guidelines for exercise.--The Corporation shall--
(A) ensure that the right of first refusal and
option to obtain an interest in real property that are
granted pursuant to paragraph (1) are granted before
the real property is listed for public sale; and
(B) shall establish guidelines to provide that any
party receiving the option to obtain an interest in
real property is given adequate time to consider and
exercise such option.
(e) Right to Retain an Interest in Real Property.--
(1) Property owner or mortgagee right to retain interest.--
The Corporation shall offer any property owner or mortgagee an
option to retain an interest in real property of comparable
size and location, subject to the following conditions:
(A) The Corporation shall pay no compensation to
the property owner or mortgagee.
(B) The property owner or mortgagee shall
compensate the Corporation for expenses to improve the
property for sale and development when such property
owner or mortgagee obtains construction financing for
development of the property.
(2) Requirement to develop property.--Any property owner or
mortgagee exercising a right to retain interest in a property
shall--
(A) obtain construction financing within 90 days of
notification by the Corporation that the area in which
the property owner or mortgagee retains an interest is
available for development; and
(B) complete construction of a replacement
residential or commercial structure, as applicable,
within 2 years of a notification pursuant to
subparagraph (A).
(3) Failure to develop.--If the Corporation certifies in
writing that a property owner or mortgagee has failed to comply
with the requirements of paragraph (2), the Corporation shall
exercise its authority pursuant to Section 8(c).
(f) Limitation on Payment and Prohibition Against Windfall.--In
general, in constructing and extending offers to acquire real property
under this section, the Corporation shall ensure that--
(1) in no case may the cumulative payment by the
Corporation to any individual for the purposes of acquiring
real property exceed $500,000; and
(2) in no case may any person be the beneficiary of a
windfall gain as a result of any purchase offer extended by the
Corporation.
SEC. 7. ASSET DISPOSITION AUTHORITY AND METHODOLOGY.
(a) Disposition of Property.--Pursuant to section 5(c), the
Corporation shall dispose of property through a competitive bidding
process under which purchasers are selected based on an ability to meet
select criteria established by the Corporation, which shall include the
following:
(1) Capacity to oversee major development projects through
a community-based collaborative process.
(2) Commitment of private capital.
(3) Effective deployment of Federal National Mortgage
Association, Federal Home Loan Mortgage Corporation, Federal
home loan bank, and other Federal or State resources (such as
low-income housing tax credits, new markets tax credits,
enterprise zones, and the Historically Underutilized Business
Zones Program of the Small Business Administration) to ensure
construction of affordable housing.
(4) Use of private contractors and subcontractors.
(5) Use of local corporations and local employees.
(6) Scale of development and job creation.
(b) Urban Homestead Program.--The Corporation shall assist in the
implementation of an urban homestead program by providing the
following:
(1) Land to the Federal Government for development as urban
homesteads.
(2) Downpayment assistance and other seed money to enable
homestead construction.
(3) Coordination with not-for-profit and faith-based
organizations in the construction and development of urban
homesteads.
(c) Other Disposition.--The Corporation shall ensure that acquired
property not made available for an urban homestead shall be disposed of
in a manner that maximizes the return on the sale of acquired property
to retire debt attributable to the Corporation.
(d) Accounting Requirements.--
(1) Accounting for holding and managing assets and
liabilities.--The Corporation shall keep a full and complete
accounting of all costs and expenses associated with the
holding and management of any asset or liability acquired by
the Corporation in carrying out the duties of the Corporation
under this Act.
(2) Accounting for disposition of assets and liabilities.--
The Corporation shall keep a full and complete accounting of
all expenses and receipts associated with the disposition of
any asset or liability acquired by the Corporation in carrying
out the duties of the Corporation under this Act.
(e) Utilization of Private Sector.--In carrying out its
responsibilities in the management and disposition of assets under this
Act, the Corporation shall utilize the services of private persons,
including real estate and loan portfolio asset management, property
management, auction marketing, legal, and brokerage services, only if
such services are available in the private sector and the Corporation
determines utilization of such services is the most practicable,
efficient, and cost effective.
SEC. 8. POWERS OF THE CORPORATION.
(a) Powers.--The Corporation shall be a body corporate that shall
have the power to--
(1) adopt, alter, and use a corporate seal;
(2) provide for such other officers and employees as may be
necessary to perform the functions of the Corporation, define
their duties, and require surety bonds or make other provisions
against losses occasioned by acts of such persons;
(3) fix the compensation and number of, and appoint,
employees for any position established by the Corporation,
without regard to the provisions of chapter 51 or subchapter
III of chapter 53 of title 5;
(4) sue and be sued, and complain and defend, by and
through its own attorneys, in any court of law or equity, State
or Federal;
(5) with the consent of any executive agency, department,
or independent agency utilize the information, services, staff,
and facilities of such department or agency, on a reimbursable
(or other) basis, in carrying out this section;
(6) prescribe, by the Board of Directors, bylaws that are
consistent with law to provide for--
(A) the management and operational structure of the
Corporation, subject to sections 2(d) and 3;
(B) the manner in which general operations are to
be conducted; and
(C) such other matters as the Board of Directors
determines to be appropriate;
(7) enter into contracts and modify or consent to the
modification of any contract or agreement;
(8) use the United States mails in the same manner and
subject to the same conditions as other departments or agencies
of the United States; and
(9) exercise, by the Board of Directors, or duly authorized
officers or agents, any and all powers established under this
section and such incidental powers as are necessary to carry
out the powers, duties, and functions of the Corporation and
the Board of Directors under this Act.
(b) Termination of Contract for Cause.--In the case of any service
contract between the Corporation and any other person, the Corporation
may terminate such contract for cause, whether by reason of breach of
contract, violation of regulations or guidelines of the Corporation, or
otherwise, or bar any such person from entering into any other
contract, after notice and an opportunity for an agency hearing on the
record.
(c) Limited Power to Acquire Interests in Property by Eminent
Domain.--
(1) In general.--To the extent financial resources are
available, the Corporation may acquire by eminent domain
interests in property under paragraph (3) only to the extent
necessary to accomplish the mission and purpose of the
Corporation.
(2) Limitation on exercise.--The Corporation may exercise
the power of eminent domain only if the Corporation--
(A) cannot agree with the owner on the purchase
price for the interest; or
(B) has determined in writing that a property owner
or mortgagee retaining an interest in a property has
failed to develop the property.
(3) Civil actions.--
(A) In general.--A civil action to acquire an
interest in property by eminent domain under this
subsection shall be brought in the district court of
the United States for the judicial district in which
the property is located or, if a single piece of
property is located in more than 1 judicial district,
in any judicial district in which any piece of the
property is located.
(B) Point of taking.--An interest is condemned and
taken by the Corporation for its use when a declaration
of taking is filed under this subsection and an amount
of money estimated in the declaration to be just
compensation for the interest is deposited in the
court.
(C) Declaration of taking.--The declaration of
taking--
(i) may be filed with the complaint in the
action or at any time before judgment; and
(ii) shall contain or be accompanied by--
(I) a statement of the public use
for which the interest is taken;
(II) a description of the property
sufficient to identify it;
(III) a statement of the interest
in the property taken;
(IV) a plan showing the interest
taken; and
(V) a statement of the amount of
money the Corporation estimates is just
compensation for the interest.
(D) Vesting of title.--When the declaration is
filed and the deposit is made under this paragraph,
title to the property vests in the Corporation in fee
simple absolute or in the lesser interest shown in the
declaration, and the right to the money vests in the
person entitled to the money.
(E) Court action.--When the declaration is filed,
the court may decide--
(i) the time by which, and the terms under
which, possession of the property is given to
the Corporation; and
(ii) the disposition of outstanding charges
related to the property.
(F) Finding of just compensation.--
(i) In general.--After a hearing, the court
shall make a finding on the amount that is just
compensation for the interest in the property
and enter judgment awarding that amount and
interest on it.
(ii) Rate of interest.--The rate of
interest shall be 6 percent a year and shall be
computed on the amount of the award less the
amount deposited in the court from the date of
taking to the date of payment.
(iii) Immediate payment.--On application of
a party, the court may order immediate payment
of any part of the amount deposited in the
court for the compensation to be awarded.
(iv) Deficiency.--If the award is more than
the amount received, the court shall enter
judgment against the Corporation for the
deficiency.
(d) Hearings and Sessions.--
(1) In general.--The Corporation may, for the purposes of
carrying out this Act, hold hearings, sit and act at times and
places, take testimony, and receive evidence as the Corporation
determines to be appropriate.
(2) Summons.--In the course of or in connection with any
proceeding under this Act or in connection with any claim, the
Corporation, or any designated representative of the
Corporation, including any person designated to conduct any
hearing under this section, shall have the power to administer
oaths and affirmations, to take or cause to be taken
depositions, and to issue, revoke, quash, or modify subpenas
and subpenas duces tecum; and the Corporation is empowered to
make rules and regulations with respect to any such
proceedings, claims, examinations, or investigations.
(3) Administrative aspects of summons.--
(A) Production at designated site.--A summons
issued pursuant to this section may require that books,
papers, records, or other data stored or maintained at
any place be produced at any designated location in any
State or in any territory or other place subject to the
jurisdiction of the United States not more than 500
miles distant from any place where the person resides
or operates or conducts business in the United States.
(B) Fees and travel expenses.--Persons summoned
under this section shall be paid the same fees and
mileage for travel in the United States that are paid
witnesses in the courts of the United States.
(C) No liability for expenses.--The United States
shall not be liable for any expense, other than an
expense described in subparagraph (B), incurred in
connection with the production of books, papers,
records, or other data under this section.
(D) Service of summons.--Service of a summons
issued under this subsection may be by registered mail
or in such other manner calculated to give actual
notice as the Corporation may prescribe by regulation.
(4) Contumacy or refusal.--
(A) In general.--In case of contumacy by a person
issued a summons under this subsection or a refusal by
such person to obey such summons, the Corporation may
invoke the aid of any court of the United States within
the jurisdiction of which--
(i) the investigation which gave rise to
the summons is being or has been carried on;
(ii) the person summoned is an inhabitant;
or
(iii) the person summoned carries on
business or may be found, to compel compliance
with the summons.
(B) Court order.--The court may issue an order
requiring the person summoned to appear before the
Corporation or a delegate of the Corporation to produce
books, papers, records, and other data, to give
testimony as may be necessary to explain how such
material was compiled and maintained, and to pay the
costs of the proceeding.
(C) Failure to comply with order.--Any failure to
obey the order of the court may be punished by the
court as a contempt thereof.
(D) Service of process.--All process in any case
under this paragraph may be served in any judicial
district in which such person may be found.
(e) Agency Authority.--
(1) Status.--The Corporation, in any capacity, shall be an
agency of the United States for purposes of section 1345 of
title 28 without regard to whether the Corporation commenced
the action.
(2) Federal court jurisdiction.--
(A) In general.--All suits of a civil nature at
common law or in equity to which the Corporation, in
any capacity, is a party shall be deemed to arise under
the laws of the United States.
(B) Removal.--The Corporation may, without bond or
security, remove any action, suit, or proceeding from a
State court to the appropriate United States district
court before the end of the 90-day period beginning on
the date the action, suit, or proceeding is filed
against the Corporation or the Corporation is
substituted as a party.
(C) Appeal of remand .--The Corporation may appeal
any order of remand entered by any United States
district court.
(3) Service of process.--The Board of Directors shall
designate agents upon whom service of process may be made in
Louisiana and the District of Columbia.
(4) Bonds or fees.--The Corporation shall not be required
to post any bond to pursue any appeal and shall not be subject
to payments of any filing fees in United States district courts
or courts of appeal.
SEC. 9. TERMINATION OF CORPORATION.
(a) In General.--The Corporation shall terminate at the end of the
10-year period beginning on the date of the enactment of this Act.
(b) Winding Up the Affairs of the Corporation.--Any right, title,
interest, or obligation of the Corporation with respect to liabilities
or assets of the Corporation which have not been fully disposed of by
the end of the 10-year period referred to in paragraph (1) shall
transfer, as of the end of such period, to the Director of the Office
of Management and Budget who shall promptly wind up the affairs of the
Corporation and dispose of such assets and liabilities.
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