HBA-MPA C.S.H.B. 3429 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 3429 By: Najera Economic Development 4/21/1999 Committee Report (Substituted) 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. C.S.H.B. 3429 requires the Texas Business and Community Economic Development Clearinghouse to provide notice to communities and entities that have experienced significant job loss as a result of NAFTA of programs and services that will benefit them, and make this information available through the Internet and a toll-free telephone number. 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 481.1665, as follows: Sec. 481.1665. INFORMATION ON PROGRAMS AND SERVICES FOR CERTAIN COMMUNITIES AND ENTITIES. (a) Requires the Texas Business and Community Economic Development Clearinghouse (clearinghouse), at least once each two-year period, to provide written notice in English and Spanish regarding those programs and services described by Section 481.167(b) (describing the information collected and disseminated by the clearinghouse) that will benefit and assist communities and entities that have experienced significant job losses associated with the implementation of the North American Free Trade Agreement (NAFTA). Requires the clearinghouse to provide notice to each governing body of a specified entity in the border region. Requires the clearinghouse to also provide the information contained in the notice on the Texas Department of Economic Development (department) Internet website. (b) Provides that the notice of eligibility must contain: (1) the Internet address of the department's website; and (2) the toll-free telephone number of the clearinghouse. SECTION 2.Emergency clause. Effective date: upon passage. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 3429 differs from the original in SECTION 1 by replacing proposed Section 481.165 in the original bill which required the department to provide notice to each community and business eligible for assistance under the Community Adjustment and Investment Program (CAIP). Instead, the substitute adds proposed Section 481.1665, Government Code, which requires in Subsection (e) that the clearinghouse provide written notice to the governing body of specified entities in the border region regarding programs and services, that would include but not be limited to CAIP, that benefit and assist communities and entities that have experienced significant job loss from NAFTA. In proposed Subsection (b), the substitute requires the notice to include the department's Internet address and the clearinghouse's toll-free telephone number, rather than information on certification for assistance under CAIP and the telephone numbers of Small Business Administration and Department of Agriculture offices in the original bill. The substitute does not include the requirement expressed in proposed Subsection (c) from the original bill, which requires a community or business that requests a certificate of eligibility under CAIP to notify the department.