84R11281 TSR-F By: Krause H.B. No. 3606 A BILL TO BE ENTITLED AN ACT relating to requirements for acceptance or expenditure of federal funds by a political subdivision. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 140, Local Government Code, is amended by adding Section 140.011 to read as follows: Sec. 140.011. ACCEPTANCE AND EXPENDITURE OF FEDERAL FUNDS. (a) Before a political subdivision may accept or expend a federal grant or other funds that have not been appropriated by the legislature, the political subdivision shall report to the Legislative Budget Board, the comptroller, and the governor: (1) the total amount of federal funds to be received or expended; (2) the proposed use of the federal funds; and (3) the potential impact use of the federal funds may have on the state budget. (b) A political subdivision may not accept or expend a federal grant or other funds if, on or before the 10th business day after the date a report was made under Subsection (a), the political subdivision receives a written disapproval of the acceptance or expenditure from the Legislative Budget Board, the comptroller, or the governor. SECTION 2. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2015.