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.