By Rosson S.B. No. 537 74R2412 DRH-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the creation of a state match pool to provide the local 1-3 share requirement for a program offering federal matching funds. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Title 7, Government Code, is amended by adding 1-6 Chapter 743 to read as follows: 1-7 CHAPTER 743. MATCHING FUNDS FOR POLITICAL SUBDIVISIONS 1-8 Sec. 743.001. STATE MATCH POOL. The state match pool is an 1-9 account in the general revenue fund that may be used only to 1-10 provide funds for the local share requirement of a program offering 1-11 federal matching funds. The pool is administered by the budget and 1-12 planning division of the governor's office. 1-13 Sec. 743.002. APPLICATION FOR MATCH POOL FUNDS. A political 1-14 subdivision, or a public or private entity in a political 1-15 subdivision, seeking funds for the local share requirement of a 1-16 program offering federal matching funds may make an application to 1-17 the budget and planning division of the governor's office for funds 1-18 from the state match pool. The application must be made on a form 1-19 prescribed by the division. 1-20 Sec. 743.003. CRITERIA FOR MATCH POOL FUNDS. (a) The 1-21 budget and planning division shall grant an application if the 1-22 applicant demonstrates: 1-23 (1) the applicant intends to provide services that 1-24 serve a public purpose; 2-1 (2) federal matching funds are available for the 2-2 services the applicant intends to provide; and 2-3 (3) the applicant qualifies for hardship status, as 2-4 defined by rules adopted by the division. 2-5 (b) The rules adopted must provide that an applicant has 2-6 hardship status if the applicant shows: 2-7 (1) a critical need for the funding and services the 2-8 applicant proposes to provide; 2-9 (2) the political subdivision in which the applicant 2-10 intends to provide services is exercising a significant tax effort; 2-11 and 2-12 (3) two or more of the following conditions apply, 2-13 relative to the state as a whole, to the political subdivision in 2-14 which the applicant intends to provide services: 2-15 (A) high unemployment; 2-16 (B) high poverty; 2-17 (C) low per capita income; or 2-18 (D) low per capita tax yield. 2-19 (c) The budget and planning division may grant any amount 2-20 from the state match pool up to the amount requested. 2-21 Sec. 743.004. CONDITIONS OF GRANT. The budget and planning 2-22 division shall condition the award of money under this chapter on: 2-23 (1) the performance of a specific activity by the 2-24 recipient that serves a public purpose; 2-25 (2) regular reports by the recipient to the division 2-26 on its expenditures of the money in a form prescribed by the 2-27 division; 3-1 (3) to the extent money awarded under this chapter is 3-2 involved, subjecting the transactions of the recipient to audit by 3-3 the state auditor in accordance with Chapter 321; and 3-4 (4) any other conditions the division by rule may 3-5 adopt to ensure the proper expenditure of money awarded under this 3-6 chapter for a specific public purpose. 3-7 SECTION 2. This Act takes effect September 1, 1995. 3-8 SECTION 3. The importance of this legislation and the 3-9 crowded condition of the calendars in both houses create an 3-10 emergency and an imperative public necessity that the 3-11 constitutional rule requiring bills to be read on three several 3-12 days in each house be suspended, and this rule is hereby suspended.