BILL ANALYSIS


                                                     C.S.S.B. 536
                                                       By: Rosson
                                                          Finance
                                                         04-10-95
                                   Committee Report (Substituted)
BACKGROUND

The Senate Finance Committee held a two-day hearing in El Paso to
address concerns raised by the El Paso Court of Inquiry concerning
inequitable funding of certain services and programs in El Paso. 
The committee adopted findings and recommendations regarding state
funding issues in El Paso, including a recommendation that "the
State Legislature and state agencies should explore ways to assist
communities which lack the resource base necessary to develop local
matching funds which under some programs are needed to draw down
state or federal dollars."

PURPOSE

As proposed, C.S.S.B. 536 provides certain entities relief from the
local share requirement of a program providing state or federal
matching funds.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is granted
to the budget and planning division of the governor's office under
SECTION 1 (Sec. 743.003, Government Code) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Title 7, Government Code, by adding Chapter 743,
as follows:

  CHAPTER 743.  RELIEF FROM LOCAL SHARE REQUIREMENT FOR PROGRAM INVOLVING MATCHING FUNDS

     Sec. 743.001.  RELIEF BY STATE AGENCY.  Authorizes a state
     agency to waive, reduce, delay, allow in-kind contributions,
     or otherwise provide relief to an entity from the local share
     requirement of a program offering state or federal matching
     funds if the entity applies for relief and qualifies for
     hardship status under this chapter.
     
     Sec. 743.002.  APPLICATION FOR RELIEF.  Authorizes a political
     subdivision, or a public or private entity in a political
     subdivision, seeking relief to apply to the state agency that
     has authority over the money sought.  Requires the application
     to be made on a form prescribed by the budget and planning
     division of the governor's office.
     
     Sec. 743.003.  CRITERIA FOR RELIEF.  Requires the budget and
     planning division of the governor's office to adopt rules to
     determine an applicant's qualification for hardship status. 
     Sets forth the requirements of an applicant.
     
     Sec. 743.004.  LIMITATIONS ON GRANTING RELIEF.  Prohibits a
     state agency, during any state fiscal year, from granting more
     than two applications for relief under this chapter to any
     political subdivision, or more than one application for relief
     under this chapter to any public or private entity other than
     a political subdivision.
     
     SECTION 2.     Effective date: September 1, 1995.

SECTION 3. Emergency clause.