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.