[GJM] H.R. 1452/revised as HR 4310

[Rodney Shakespeare]

Dear All,

    Thanks to John Gelles for info on Mosler.

    Bill Ryan has sent this to socialcredit at elistas.com .  He says that Randal Wray's commentary on the Bill is really opposition to the Bill.   Bill's comments raise the issue of Randall's method of financing the Bill's proposals which does seem to get to  be supporting present practice of ultimately allowing the banks to do the money creation.

    The original Bill makes  available interest-free loans from the federal government to local government for building and repairing infrastructure.    The revised Bill  (below) does the same but it seems that the loans are all to come from the US Secretary of Commerce.  In the original Bill,  the came loans interest-free from the Federal Reserve.  BUT in the revised Bill it says:-
SEC. 6. PROGRAM AUTHORITY.
In accordance with the provisions of this Act, there 
are hereby made available, out of any money in the 
Treasury not otherwise appropriated, such sums as may 
be necessary to make loans to all entities described 
in section 2(a). 

    This seems to say the loans should come "out of any money in the Treasury not otherwise appropriated".  

Can anybody explain?


Rodney Shakespeare.

    
----- Original Message ----- 
From: william_b_ryan at yahoo.com 
To: socialcredit at elistas.com 
Sent: Wednesday, August 25, 2004 4:23 PM
Subject: Re: [socialcredit] CFEPS


Please note that the paper from Randall Wray that I 
posted is really in opposition to Representative 
LaHood's proposed legislation, since it concludes (in 
conformity to Moslerist dogma) that lending money 
"interest free" received in the first instance from 
the sale of interest encumbered securities to the 
"public" (in reality financial institutions through 
the so-called "open market") has the same effect as 
re-lending money borrowed "interest free" from the 
Federal Reserve.  The abundantly funded Moslerism is 
more than simple apologetic for the bankers' 
hegemony, but the deceptive twisting of the language 
of reform so that it supports the hegemony.  It is 
fascism masqueraded.  The thing they push that 
"seigniorage" is a "benefit" to the "taxpayer" is 
part and parcel of their party line.  The paper is 
useful to us since it gives us insight to their 
thinking.
Appended is a copy of the most recent version of the 
proposed legislation.
-
H.R.4310
Title: To direct the Secretary of Commerce to make 
noninterest bearing loans to State and local 
governments solely for the purpose of funding capital 
projects, and for other purposes.
Sponsor: Rep LaHood, Ray [IL-18] (introduced 
5/6/2004)      Cosponsors (7)
Related Bills: H.R.4371
Latest Major Action: 5/6/2004 Referred to House 
committee. Status: Referred to the House Committee on 
Government Reform
    * SHORT TITLE(S) AS INTRODUCED:
      State and Local Government Economic Empowerment 
Act
    * OFFICIAL TITLE AS INTRODUCED:
      To direct the Secretary of Commerce to make 
noninterest bearing loans to State and local 
governments solely for the purpose of funding capital 
projects, and for other purposes. 
COSPONSORS(7), ALPHABETICAL
Rep Emanuel, Rahm [IL-5] - 5/6/2004
Rep Hinchey, Maurice D. [NY-22] - 5/6/2004
Rep Jefferson, William J. [LA-2] - 5/6/2004
Rep Jones, Stephanie Tubbs [OH-11] - 5/6/2004
Rep LaTourette, Steve C. [OH-14] - 5/6/2004
Rep Manzullo, Donald A. [IL-16] - 5/6/2004
Rep Shimkus, John [IL-19] - 5/6/2004
-
108th CONGRESS
2d Session
H. R. 4371
To direct the Secretary of Commerce to make 
noninterest bearing loans to State and local 
governments solely for the purpose of funding capital 
projects, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
May 17, 2004
 
Mr. LAHOOD (for himself, Mr. EMANUEL, Mr. JEFFERSON, 
Mr. LATOURETTE, Mr. SHIMKUS, Mr. HINCHEY, Mrs. JONES 
of Ohio, Mr. MANZULLO, and Mr. QUINN) introduced the 
following bill; which was referred to the Committee 
on Transportation and Infrastructure 
-----------------------------------------------------
---------------------------
A BILL 
To direct the Secretary of Commerce to make 
noninterest bearing loans to State and local 
governments solely for the purpose of funding capital 
projects, 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 `State and Local 
Government Economic Empowerment Act'. 
SEC. 2. ELIGIBILITY OF STATE AND LOCAL GOVERNMENTS 
FOR INTEREST-FREE LOANS.
(a) IN GENERAL- Subject to subsection (b), each 
State, county, incorporated municipality, and Indian 
tribe shall be entitled to obtain a loan under 
section 3, unless such unit of government is 
delinquent in repaying a prior loan. 
(b) MAXIMUM AMOUNT LIMITATION- The total amount of 
money to which any entity described in subsection (a) 
is entitled to borrow under this section shall not 
exceed the amount equal to the product of-- 
(1) the resident population, as determined by the 
Secretary on the basis of the 2000 census, of the 
geographic territory over which the entity has 
jurisdiction; and 
(2) the amount equal to-- 
(A) in the case of a State, $200; 
(B) in the case of a county (as defined in section 2 
of title 1, United States Code), $200; 
(C) in the case of an incorporated municipality, 
$600; and 
(D) in the case of an Indian tribe, $1,000. 
SEC. 3. INTEREST-FREE LOANS.
Subject to sections 2(b) and 4, the Secretary shall 
issue an interest-free loan to any government unit 
described in section 2(a) if the Secretary obtains 
such assurances as the Secretary determines to be 
appropriate from the unit that the proceeds of such 
loan will be used solely for the purpose of funding 
capital projects of the governmental unit, including 
the construction of or improvements to-- 
(1) streets, highways, bridges, and tunnels; 
(2) waste water and sewer systems; and 
(3) infrastructure and other public facilities. 
SEC. 4. ADMINISTRATIVE PROVISIONS.
(a) DISBURSEMENT REQUIREMENTS- Loans made under 
section 3 shall be disbursed by the Secretary-- 
(1) in a lump sum for the full amount of the loan; or 
(2) if the Secretary determines that partial 
disbursements are appropriate in the case of loans 
for construction projects in order to accommodate a 
greater number of loan requests, over the 
construction period of the project. 
(b) MINIMUM PHASE-IN PERIOD- Disbursements on all 
eligible loans made under section 3 shall begin 
before the end of the 5-year period beginning on the 
date of enactment of this Act. 
(c) PERIOD TO MATURITY- The period to maturity of any 
loan made under section 3 shall be the estimated 
number of years of the useful life of the 
infrastructure installation (if any) which is 
financed by the loan, but, in any case, shall be a 
minimum of 10 years and a maximum of 30 years. 
(d) APPLICABILITY OF STATE LAW- The number or the 
principal amounts of interest-free loans made under 
section 3 to any governmental unit established by a 
State, or the period to maturity of any such loan, 
may not exceed the maximum number, amount, or period 
to maturity established under the law of such State, 
unless the State provides a waiver from any such 
limitation with respect to any such governmental 
unit. 
(e) ADMINISTRATIVE FEES- The Secretary shall impose 
an administrative fee on each recipient of a loan 
under section 3 in an amount not to exceed the lesser 
of-- 
(1) 0.25 percent of the total amount of the loan; or 
(2) an amount sufficient to cover all administrative 
costs incurred by the Secretary, including overhead, 
for making and administering the loan. 
(f) TERMS OF REPAYMENT- The repayment terms of any 
loan made under section 3 shall require quarterly 
payments by the recipient in equal amounts determined 
by dividing-- 
(1) the sum of the principal and the administrative 
fees applicable with respect to such loan; by 
(2) the number of calendar quarters any portion of 
which falls within the period to maturity of the 
loan. 
(g) COLLECTIONS OF PAST DUE AMOUNTS AND COLLECTION 
FEES- 
(1) ENFORCED COLLECTIONS- The Secretary shall take 
action to enforce collection of past due amounts of 
any loan on which 4 or more quarterly payments are 
due and payable. 
(2) IMPOUNDMENT OF DELINQUENT AMOUNT- In the case of 
any delinquent loan described in paragraph (1), the 
Secretary may seek an order from a district court of 
the United States of appropriate jurisdiction 
directing a United States Marshall to impound, under 
authority of this subsection, any available funds of 
the debtor in an amount equal to the amount currently 
due as of the date of such action to reduce or 
eliminate the delinquency. 
(3) WAIVER OF DEBTOR'S RIGHT TO DEFEND AGAINST 
COLLECTION- As a condition for receiving any loan 
under section 3, the recipient shall waive any right 
to take any legal action to prevent or defend against 
the collection by the Secretary of any amount which 
the parties agree is past due. 
(4) COST OF COLLECTION- The costs incurred by the 
Secretary in collecting any amount under this 
subsection with respect to any loan shall be added to 
and treated as a part of the principal amount of the 
loan. 
(5) BALANCE OF LOAN PRINCIPAL AND FEES PAYABLE IN 
ACCORDANCE WITH TERMS OF LOAN- A debtor who is 
subject to collection proceedings under this 
subsection for any delinquent portion of a loan under 
section 3 shall continue to meet the repayment 
schedule applicable to such loan for the remaining 
amount of principal and fees. 
(h) REPAYMENT OF LOANS- Loans made under section 3 
shall be repaid to the Secretary in accordance with 
the terms established under this Act and shall be 
deposited into the Treasury of the United States. 
SEC. 5. DEFINITIONS.
For purposes of this Act, the following definitions 
apply: 
(1) SECRETARY- The term `Secretary' means the 
Secretary of Commerce. 
(2) INDIAN TRIBE- The term `Indian tribe' means any 
Indian tribe, band, pueblo, nation, or other 
organized group or community, including any Alaska 
Native village or regional or village corporation as 
defined in or established pursuant to the Alaska 
Native Claims Settlement Act, which is recognized as 
eligible for the special programs and services 
provided by the United States to Indians because of 
their status as Indians. 
(3) STATE- The term `State' includes the District of 
Columbia, the Commonwealth of Puerto Rico, Guam, 
American Samoa, the United States Virgin Islands, and 
the Northern Mariana Islands. 
SEC. 6. PROGRAM AUTHORITY.
In accordance with the provisions of this Act, there 
are hereby made available, out of any money in the 
Treasury not otherwise appropriated, such sums as may 
be necessary to make loans to all entities described 
in section 2(a). 
END
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