By Shapleigh                                     S.B. No. 315

      75R2451 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 for funds from the state match

1-18     pool.  The application must be made on a form prescribed by the

1-19     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           Sec. 743.005.  LIMITATIONS ON AWARDING GRANTS.  During any

 3-8     state fiscal year the budget and planning division may not grant an

 3-9     award of funds under this chapter for more than two applications

3-10     for funds by any political subdivision.  During any state fiscal

3-11     year the budget and planning division may not grant an award of

3-12     funds under this chapter for more than one application for funds by

3-13     any public or private entity other than a political subdivision.

3-14           SECTION 2.  This Act takes effect September 1, 1997.

3-15           SECTION 3.  The importance of this legislation and the

3-16     crowded condition of the calendars in both houses create an

3-17     emergency and an imperative public necessity that the

3-18     constitutional rule requiring bills to be read on three several

3-19     days in each house be suspended, and this rule is hereby suspended.