HBA-MPA H.B. 3429 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3429
By: Najera
Economic Development
4/6/1999
Introduced




BACKGROUND AND PURPOSE 

The Community Adjustment and Investment Program (CAIP) was created to
assist communities that suffer job losses as a result of the North American
Free Trade Agreement (NAFTA).  CAIP is a partnership between the federal
government and the North American Development Bank (NADBank).  It links the
NADBank with federal agencies, local financial institutions, and financial
intermediaries to provide financing for businesses and local governments to
pursue business opportunities to offset job losses and other adverse
effects of NAFTA. 

CAIP has three primary goals: to assist private companies in creating or
retaining job opportunities in trade affected areas; to leverage private
sector business lending; and to focus resources on the most significantly
affected communities.  It relies on two financing methods.  The first uses
existing federal loan or loan guarantee programs administered by the Small
Business Administration or the Department of Agriculture.  The second
method, the "direct financing program," uses NADBank funds to provide
direct financing where conventional sources are unavailable.  Finally, CAIP
also serves as a development catalyst by financing business start-ups or
expansions where capital availability falls short in commercial lending
markets. 

H.B. 3429 requires the Texas Department of Housing and Community Affairs to
notify eligible businesses and communities of the availability of the
Community Assistance and Investment Program and to provide them with
information needed to participate in that program. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter K, Chapter 481, Government Code, by adding
Section 481.165, as follows: 

Sec. 481.165. FEDERAL ASSISTANCE FOR CERTAIN BUSINESSES AND COMMUNITIES.
(a) Requires the Texas Department of Economic Development (department),  at
least once each two-year period, to provide written notice in English and
Spanish to each community and business in this state that is eligible for a
loan, loan guarantee, or other adjustment assistance under the federal
Community Adjustment and Investment Act (22 U.S.C. Section 290m-2). 

(b) Provides that the notice of eligibility must contain:

(1) information on the certification process required for assistance under
the federal program, including qualification criteria and the production of
evidence necessary for an applicant to obtain that certification; and 
(2) a list of telephone numbers of each Small Business Administration and
United States Department of Agriculture district office located in this
state. 

 (c) Requires a community or business in this state that has requested a
certification of eligibility under the federal Community Adjustment and
Investment Program to notify the department of that request. 

SECTION 2.Emergency clause.
  Effective date: upon passage.