1-1  By:  Rosson                                            S.B. No. 536
    1-2        (In the Senate - Filed February 13, 1995; February 14, 1995,
    1-3  read first time and referred to Committee on Finance;
    1-4  April 11, 1995, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 8, Nays 0; April 11, 1995,
    1-6  sent to printer.)
    1-7  COMMITTEE SUBSTITUTE FOR S.B. No. 536                   By:  Rosson
    1-8                         A BILL TO BE ENTITLED
    1-9                                AN ACT
   1-10  relating to providing certain entities relief from the local share
   1-11  requirement of a program providing state or federal matching funds.
   1-12        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-13        SECTION 1.  Title 7, Government Code, is amended by adding
   1-14  Chapter 743 to read as follows:
   1-15         CHAPTER 743.  RELIEF FROM LOCAL SHARE REQUIREMENT FOR
   1-16                   PROGRAM INVOLVING MATCHING FUNDS
   1-17        Sec. 743.001.  RELIEF BY STATE AGENCY.  A state agency may,
   1-18  to the extent allowed by federal law and the state constitution,
   1-19  waive, reduce, delay, allow in-kind contributions, or otherwise
   1-20  provide relief to an entity from the local share requirement of a
   1-21  program offering state or federal matching funds if the entity
   1-22  applies for relief and the agency determines that the applicant
   1-23  qualifies for hardship status under this chapter.
   1-24        Sec. 743.002.  APPLICATION FOR RELIEF.  A political
   1-25  subdivision, or a public or private entity in a political
   1-26  subdivision, seeking relief under Section 743.001 may make an
   1-27  application to the state agency that has authority over the money
   1-28  sought.  The application must be made on a form prescribed by the
   1-29  budget and planning division of the governor's office.
   1-30        Sec. 743.003.  CRITERIA FOR RELIEF.  The budget and planning
   1-31  division of the governor's office shall adopt rules to be used in
   1-32  determining whether an applicant qualifies for hardship status
   1-33  under Section 743.001.  In determining hardship status, the rules
   1-34  shall require the applicant to show that:
   1-35              (1)  a critical need exists for the funding and the
   1-36  services the applicant proposes to provide;
   1-37              (2)  the political subdivision in which the applicant
   1-38  intends to provide services is exercising a significant tax effort;
   1-39  and
   1-40              (3)  two or more of the following conditions apply,
   1-41  relative to the state as a whole, to the political subdivision in
   1-42  which the applicant intends to provide services:
   1-43                    (A)  high unemployment;
   1-44                    (B)  high poverty;
   1-45                    (C)  low per capita income; or
   1-46                    (D)  low per capita tax yield.
   1-47        Sec. 743.004.  LIMITATIONS ON GRANTING RELIEF.  During any
   1-48  state fiscal year a state agency may not grant more than two
   1-49  applications for relief as provided for in this chapter to any
   1-50  political subdivision.  During any state fiscal year a state agency
   1-51  may not grant more than one application for relief as provided for
   1-52  in this chapter to any public or private entity other than a
   1-53  political subdivision.
   1-54        SECTION 2.  This Act takes effect September 1, 1995.
   1-55        SECTION 3.  The importance of this legislation and the
   1-56  crowded condition of the calendars in both houses create an
   1-57  emergency and an imperative public necessity that the
   1-58  constitutional rule requiring bills to be read on three several
   1-59  days in each house be suspended, and this rule is hereby suspended.
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