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.