By Serna                                               H.B. No. 188

      75R1543 DRH-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to state or 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.  RELIEF FROM LOCAL SHARE REQUIREMENT FOR

 1-7                      PROGRAM INVOLVING MATCHING FUNDS

 1-8           Sec. 743.001.  RELIEF BY STATE AGENCY.  A state agency may,

 1-9     to the extent allowed by federal law and the state constitution,

1-10     waive, reduce, delay, allow in-kind contributions, or otherwise

1-11     provide relief to an entity from the local share requirement of a

1-12     program offering state or federal matching funds if the entity

1-13     applies for relief and the agency determines that the applicant

1-14     qualifies for hardship status under this chapter.

1-15           Sec. 743.002.  APPLICATION FOR RELIEF.  A political

1-16     subdivision, or a public or private entity in a political

1-17     subdivision, seeking relief under Section 743.001 may make an

1-18     application to the state agency that has authority over the money

1-19     sought.  The application must be made on a form prescribed by the

1-20     budget and planning division of the governor's office.

1-21           Sec. 743.003.  CRITERIA FOR RELIEF.  The budget and planning

1-22     division of the governor's office shall adopt rules to be used in

1-23     determining whether an applicant qualifies for hardship status

1-24     under Section 743.001.  In determining hardship status, the rules

 2-1     shall require the applicant to show that:

 2-2                 (1)  a critical need exists for the funding and the

 2-3     services the applicant proposes to provide;

 2-4                 (2)  the political subdivision in which the applicant

 2-5     intends to provide services is exercising a significant tax effort;

 2-6     and

 2-7                 (3)  two or more of the following conditions apply,

 2-8     relative to the state as a whole, to the political subdivision in

 2-9     which the applicant intends to provide services:

2-10                       (A)  high unemployment;

2-11                       (B)  high poverty;

2-12                       (C)  low per capita income; or

2-13                       (D)  low per capita tax yield.

2-14           Sec. 743.004.  LIMITATIONS ON GRANTING RELIEF.  During any

2-15     state fiscal year a state agency may not grant more than two

2-16     applications for relief as provided for in this chapter to any

2-17     political subdivision.  During any state fiscal year a state agency

2-18     may not grant more than one application for relief as provided for

2-19     in this chapter to any public or private entity other than a

2-20     political subdivision.

2-21           SECTION 2.  This Act takes effect September 1, 1997.

2-22           SECTION 3.  The importance of this legislation and the

2-23     crowded condition of the calendars in both houses create an

2-24     emergency and an imperative public necessity that the

2-25     constitutional rule requiring bills to be read on three several

2-26     days in each house be suspended, and this rule is hereby suspended.