BILL ANALYSIS C.S.H.B. 2696 By: Rodriguez April 11, 1995 Committee Report (Substituted) BACKGROUND Municipalities are unable to apply for many Federal Grants which require matching funds because the state office have opted not to participate, and therefore have not budgeted funds for matching purposes. In many cases, the municipalities are unaware of the existence of grant programs, or cannot provide the match funds which are normally set aside to be furnished by the State. During the State annual budgeting cycle, the Comptroller includes an amount of money to be used as matching funds to acquire additional federal monies. Currently, cities are precluded from taking advantage of some grants, since the state must match and has not set aside the necessary funding for a particular grant program. If this were approved, we would address City Council to adjust our future budget to include funds to be used for matching purposes to obtain Federal grant funds. The City of San Antonio's Child Care Management Service program currently receives funding through this type of systems for use for child care providers. PURPOSE Allow cities to provide matching funds for Federal grant monies, in those cases where the State has opted not to participate. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Allows a municipality, as an agency of the state, to provide matching funds for a federal program that requires local matching funds from a state agency, if all other eligible state agencies decline to participate fully in the program. SECTION 2. Emergency clause. This Act will take effect on the date of passage. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute clarifies the extent to which a state agency's non- or partial participation entitles a municipality to provide matching funds. SUMMARY OF COMMITTEE ACTION HB 2696 was considered by the committee in a public hearing on April 3, 1995. The committee considered a complete substitute for the bill. The substitute was adopted without objection. Ther following people testified in favor of the bill: Rep. Rodriguez; and Kevin Moriarty, representing himself and the City of San Antonio. The bill was reported favorably as substituted, with the recommendation that it do pass and be printed and be sent to the Committee on Local and Consent Calendars, by a record vote of 8 ayes, 0 nays, 0 pnv, and 1 absent.