BILL ANALYSIS


                                                        H.B. 2696
                                            By: Rodriguez (Madla)
                                      Intergovernmental Relations
                                                         05-10-95
                              Senate Committee Report (Unamended)
BACKGROUND

Municipalities are unable to apply for many federal grants which
require matching funds in instances when the state has opted not to
participate and therefore has not budgeted funds for matching
purposes.  During the state annual budgeting cycle, the comptroller
includes an amount of money to be used as matching funds to acquire
additional federal monies.  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
states.

PURPOSE

As proposed, H.B. 2696 authorizes a municipality to participate in
a federal program for which local matching funds are required.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 380, Local Government Code, by adding
Section 380.003, as follows:

     Sec. 380.003.  APPLICATION FOR MATCHING FUNDS FROM FEDERAL
     GOVERNMENT.  Authorizes 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 to the
     extent state agencies that are eligible decline to participate
     or do not fully participate in the program.
     
     SECTION 2.     Emergency clause.
           Effective date: upon passage.