By Shapleigh                                     S.B. No. 314

      75R2450 DRH-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to providing certain entities relief from the local share

 1-3     requirement of a program providing state or 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.  RELIEF FROM LOCAL SHARE REQUIREMENT FOR

 1-8                      PROGRAM INVOLVING MATCHING FUNDS

 1-9           Sec. 743.001.  RELIEF BY STATE AGENCY.  A state agency may,

1-10     to the extent allowed by federal law and the state constitution,

1-11     waive, reduce, delay, allow in-kind contributions, or otherwise

1-12     provide relief to an entity from the local share requirement of a

1-13     program offering state or federal matching funds if the entity

1-14     applies for relief and the agency determines that the applicant

1-15     qualifies for hardship status under this chapter.

1-16           Sec. 743.002.  APPLICATION FOR RELIEF.  A political

1-17     subdivision, or a public or private entity in a political

1-18     subdivision, seeking relief under Section 743.001 may make an

1-19     application to the state agency that has authority over the money

1-20     sought.  The application must be made on a form prescribed by the

1-21     budget and planning division of the governor's office.

1-22           Sec. 743.003.  CRITERIA FOR RELIEF.  The budget and planning

1-23     division of the governor's office shall adopt rules to be used in

1-24     determining whether an applicant qualifies for hardship status

 2-1     under Section 743.001.  In determining hardship status, the rules

 2-2     shall require the applicant to show that:

 2-3                 (1)  a critical need exists for the funding and the

 2-4     services the applicant proposes to provide;

 2-5                 (2)  the political subdivision in which the applicant

 2-6     intends to provide services is exercising a significant tax effort;

 2-7     and

 2-8                 (3)  two or more of the following conditions apply,

 2-9     relative to the state as a whole, to the political subdivision in

2-10     which the applicant intends to provide services:

2-11                       (A)  high unemployment;

2-12                       (B)  high poverty;

2-13                       (C)  low per capita income; or

2-14                       (D)  low per capita tax yield.

2-15           Sec. 743.004.  LIMITATIONS ON GRANTING RELIEF.  During any

2-16     state fiscal year a state agency may not grant more than two

2-17     applications for relief under this chapter to any political

2-18     subdivision.  During any state fiscal year a state agency may not

2-19     grant more than one application for relief under this chapter to

2-20     any public or private entity other than a 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.