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.