LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 3, 1995



 TO:     Honorable Fred Hill, Chair             IN RE:  House Bill No. 2696
         Committee on Urban Affairs                     By: Rodriguez
         House of Representatives
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
2696 (relating to the ability of a municipality to participate in
a federal program for which local matching funds are required)
this office has determined the following:

The bill would allow municipalities to participate in federally
funded programs and provide local matching funds to draw down
federal funds, if all other eligible state agencies decline to
provide the matching funds for program participation. 
Municipalities would have to comply with federal requirements
which may designate a single state agency responsible for the
program, and  may stipulate program requirements, who is allowed
to apply for the federal funds, and the type of funds which may
be used for match.

There would be no significant fiscal impact to the state other
than the pass through of federal funds to participating
municipalities.


The fiscal implication to units of local government cannot be
determined.


Source:   Comptroller of Public Accounts
          LBB Staff: JK, MM, RR