By:  Rosson                                            S.B. No. 536
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to providing certain entities relief from the local share
    1-2  requirement of a program providing state or federal matching funds.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Title 7, Government Code, is amended by adding
    1-5  Chapter 743 to read as follows:
    1-6         CHAPTER 743.  RELIEF FROM LOCAL SHARE REQUIREMENT FOR
    1-7                   PROGRAM INVOLVING MATCHING FUNDS
    1-8        Sec. 743.001.  RELIEF BY STATE AGENCY.  A state agency may,
    1-9  to the extent allowed by federal law and the state constitution,
   1-10  waive, reduce, delay, allow in-kind contributions, or otherwise
   1-11  provide relief to an entity from the local share requirement of a
   1-12  program offering state or federal matching funds if the entity
   1-13  applies for relief and the agency determines that the applicant
   1-14  qualifies for hardship status under this chapter.
   1-15        Sec. 743.002.  APPLICATION FOR RELIEF.  A political
   1-16  subdivision, or a public or private entity in a political
   1-17  subdivision, seeking relief under Section 743.001 may make an
   1-18  application to the state agency that has authority over the money
   1-19  sought.  The application must be made on a form prescribed by the
   1-20  budget and planning division of the governor's office.
   1-21        Sec. 743.003.  CRITERIA FOR RELIEF.  The budget and planning
   1-22  division of the governor's office shall adopt rules to be used in
   1-23  determining whether an applicant qualifies for hardship status
   1-24  under Section 743.001.  In determining hardship status, the rules
    2-1  shall require the applicant to show that:
    2-2              (1)  a critical need exists for the funding and the
    2-3  services the applicant proposes to provide;
    2-4              (2)  the political subdivision in which the applicant
    2-5  intends to provide services is exercising a significant tax effort;
    2-6  and
    2-7              (3)  two or more of the following conditions apply,
    2-8  relative to the state as a whole, to the political subdivision in
    2-9  which the applicant intends to provide services:
   2-10                    (A)  high unemployment;
   2-11                    (B)  high poverty;
   2-12                    (C)  low per capita income; or
   2-13                    (D)  low per capita tax yield.
   2-14        Sec. 743.004.  LIMITATIONS ON GRANTING RELIEF.  During any
   2-15  state fiscal year a state agency may not grant more than two
   2-16  applications for relief as provided for in this chapter to any
   2-17  political subdivision.  During any state fiscal year a state agency
   2-18  may not grant more than one application for relief as provided for
   2-19  in this chapter to any public or private entity other than a
   2-20  political subdivision.
   2-21        SECTION 2.  This Act takes effect September 1, 1995.
   2-22        SECTION 3.  The importance of this legislation and the
   2-23  crowded condition of the calendars in both houses create an
   2-24  emergency and an imperative public necessity that the
   2-25  constitutional rule requiring bills to be read on three several
   2-26  days in each house be suspended, and this rule is hereby suspended.