By: Rosson S.B. No. 537
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the creation of a state match pool to provide the local
1-2 share requirement for a program offering 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. MATCHING FUNDS FOR POLITICAL SUBDIVISIONS
1-7 Sec. 743.001. STATE MATCH POOL. The state match pool is an
1-8 account in the general revenue fund that may be used only to
1-9 provide funds for the local share requirement of a program offering
1-10 federal matching funds. The pool is administered by the budget and
1-11 planning division of the governor's office.
1-12 Sec. 743.002. APPLICATION FOR MATCH POOL FUNDS. A political
1-13 subdivision, or a public or private entity in a political
1-14 subdivision, seeking funds for the local share requirement of a
1-15 program offering federal matching funds may make an application to
1-16 the budget and planning division for funds from the state match
1-17 pool. The application must be made on a form prescribed by the
1-18 division.
1-19 Sec. 743.003. CRITERIA FOR MATCH POOL FUNDS. (a) The
1-20 budget and planning division shall grant an application if the
1-21 applicant demonstrates:
1-22 (1) the applicant intends to provide services that
1-23 serve a public purpose;
1-24 (2) federal matching funds are available for the
2-1 services the applicant intends to provide; and
2-2 (3) the applicant qualifies for hardship status, as
2-3 defined by rules adopted by the division.
2-4 (b) The rules adopted must provide that an applicant has
2-5 hardship status if the applicant shows:
2-6 (1) a critical need for the funding and services the
2-7 applicant proposes to provide;
2-8 (2) the political subdivision in which the applicant
2-9 intends to provide services is exercising a significant tax effort;
2-10 and
2-11 (3) two or more of the following conditions apply,
2-12 relative to the state as a whole, to the political subdivision in
2-13 which the applicant intends to provide services:
2-14 (A) high unemployment;
2-15 (B) high poverty;
2-16 (C) low per capita income; or
2-17 (D) low per capita tax yield.
2-18 (c) The budget and planning division may grant any amount
2-19 from the state match pool up to the amount requested.
2-20 Sec. 743.004. CONDITIONS OF GRANT. The budget and planning
2-21 division shall condition the award of money under this chapter on:
2-22 (1) the performance of a specific activity by the
2-23 recipient that serves a public purpose;
2-24 (2) regular reports by the recipient to the division
2-25 on its expenditures of the money in a form prescribed by the
2-26 division;
2-27 (3) to the extent money awarded under this chapter is
3-1 involved, subjecting the transactions of the recipient to audit by
3-2 the state auditor in accordance with Chapter 321; and
3-3 (4) any other conditions the division by rule may
3-4 adopt to ensure the proper expenditure of money awarded under this
3-5 chapter for a specific public purpose.
3-6 Sec. 743.005. LIMITATIONS ON AWARDING GRANTS. During any
3-7 state fiscal year the budget and planning division may not grant an
3-8 award of funds under this chapter for more than two applications
3-9 for funds by any political subdivision. During any state fiscal
3-10 year the budget and planning division may not grant an award of
3-11 funds under this chapter for more than one application for funds by
3-12 any public or private entity other than a political subdivision.
3-13 SECTION 2. This Act takes effect September 1, 1995.
3-14 SECTION 3. The importance of this legislation and the
3-15 crowded condition of the calendars in both houses create an
3-16 emergency and an imperative public necessity that the
3-17 constitutional rule requiring bills to be read on three several
3-18 days in each house be suspended, and this rule is hereby suspended.