Amend CSHB 3452 by adding the following appropriately
numbered SECTION to the bill and renumbering SECTIONS of the bill
appropriately:
      SECTION ___.  Subchapter BB, Chapter 481, Government Code, is
amended by adding Section 481.415 to read as follows:
      Sec. 481.415.  COMMUNITY INVESTMENT PROGRAM. (a)  In this
section:
            (1)  "Community development financial institution" has
the meaning assigned by 12 U.S.C. Section 4702, as amended.
            (2)  "Community development investment" means a loan or
grant made to a community development financial institution for the
purpose of enhancing the provision of basic consumer financial
services.
            (3)  "Community development loan" means a loan from a
community development financial institution to a low-income
business or nonprofit organization for the purpose of revitalizing
a distressed community.
            (4)  "Eligible institution" means a community
development financial institution meeting the minimum selection
criteria described by 12 U.S.C. Section 4704, as amended.
      (b)  Notwithstanding any other law, the department shall
establish a community investment program in which the department
makes grants or interest-free loans, using money in the fund, to
eligible institutions that use the money to make community
development loans in distressed areas of the state or to assist
low-income areas by providing basic consumer financial services.
      (c)  The department shall determine the eligibility of an
institution by verifying that the institution meets the minimum
selection criteria described by 12 U.S.C. Section 4704, as amended.
The department may set a limit on the number of eligible
institutions that may participate in the community investment
program.  To participate in the community investment program, an
eligible institution must enter into a participation agreement with
the department that sets out the terms and conditions under which
the department will make a grant or loan to the eligible
institution.
      (d)  The department may make a grant to an institution or
nonprofit organization to assist the institution or organization
to:
            (1)  meet the minimum selection criteria described by
12 U.S.C. Section 4704, as amended, or to otherwise obtain
assistance under 12 U.S.C. 4701 et seq., as amended; and
            (2)  become an eligible institution and participate in
the community investment program.
      (e)  The department may make a grant to a nonprofit
organization the department determines is performing activities
consistent with the goals of this section to provide the
organization operating support, technical assistance, and training
assistance.
      (f)  The department shall adopt rules relating to the
implementation of the community investment program and any other
rules necessary to accomplish the purposes of this section.
      (g)  An eligible institution may file a grant or loan
application with the department.  The application must be in a form
approved by the department and include a plan of investment that
includes the type and number of community development loans or
investments that the institution plans to make using money from the
community investment program.  The department shall act on a
completed application not later than the 30th day after the date on
which the application is filed with the department.
      (h)  All income received on a loan or investment made with
money received under the community investment program is the
property of the eligible institution that makes the loan or
investment.
      (i)  Not later than the 30th day after the expiration of each
six-month period for which there is a participation agreement in
effect between the department and an eligible institution, the
eligible institution shall submit a report to the department that
states in detail the status of each investment or loan made under
the community investment program.  The report must be in a form
prescribed by the department and must contain all information
required by the department as part of the institution's
participation agreement.
      (j)  The participation agreement entered into between the
eligible institution and the department must provide for an annual
audit.  The department shall adopt rules relating to the format of
the audit, including rules allowing not more than $5,000 of the
amount received by the eligible institution under the community
investment program to be used to finance the audit.