BILL ANALYSIS


                                                     C.S.S.B. 537
                                                       By: Rosson
                                                          Finance
                                                         04-11-95
                                   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 about
inequitable funding of certain services and programs in El Paso. 
The Finance 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. 537 creates the state match pool administered
by the governor's office of budget and planning to assist hardship
applicants in drawing down federal 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.743.004, Government Code) of this bill.

SECTION BY SECTION ANALYSIS

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

     CHAPTER 743.  MATCHING FUNDS FOR POLITICAL SUBDIVISIONS

     Sec.  743.001.  STATE MATCH POOL.  Provides that the state
     match pool (pool) which is an account in the general revenue
     fund that may be used only to provide funds for the local
     share requirement of a program offering federal matching funds
     and the pool is administered by the budget and planning
     division of the governor's office.
     
     Sec.  743.002.  APPLICATION FOR MATCH POOL FUNDS.  Authorizes
     a political subdivision seeking funds for the local share
     requirement of a program offering federal matching funds to
     make an application to the budget and planning division of the
     governor's office for funds from the pool.  Requires the
     application to be on a form prescribed by the division.
     
     Sec.  743.003.  CRITERIA FOR MATCH POOL FUNDS.  (a)  Requires
     the budget and planning division to grant an application under
     certain conditions.
     
     (b)  Requires the rules adopted to provide that an applicant
       has hardship status if  certain conditions apply.
       
       (c)  Authorizes the budget and planning division to grant
       any amount from the pool up to the amount requested.
     Sec.  743.004.  CONDITIONS OF GRANT.  Requires the budget and
     planning division to condition the award of money based on the
     performance of a specific activity, regular expenditure
     reports, possible audits in accordance with Chapter 321, and
     any other conditions the division, by rule, may adopt to
     ensure proper expenditure of money.
     
     Sec.  743.005.  LIMITATIONS ON AWARDING GRANTS.  Prohibits the
     budget and planning division from granting an award of funds
     provided for in this chapter for more than two applications
     for funds by any political subdivision during any state fiscal
     year.  Prohibits the budget and planning division from
     granting an award of funds provided for in this chapter for
     more than one application for funds by any public or private
     entity other than a political subdivision.
     
SECTION 2.  Effective date:  September 1, 1995.

SECTION 3.  Emergency clause.