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.