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.