A committee reported a policy committee substitute for House Bill 1221 (PCS) that would require state agencies to notify legislative leaders and provide details about new federal block grants, competitive grants and monetary-relief funds so the legislature can review the terms and any state matching requirements before funds are drawn down.

Sponsor Representative West said the proposal is modeled in part on steps taken during the American Rescue Plan Act (ARPA) distribution and aims to provide ‘‘eyes on’’ federal funds that come into state agencies. He told the committee the PCS would not attempt to control routine federal funding already in agency budgets but would apply primarily to new block grants, competitive grants and monetary relief.

Members questioned whether the requirement would slow emergency distributions and whether the legislature could convene quickly enough to approve or decline funds during off-session windows. The sponsor said most competitive grants have application windows and that staff (A&B) and leaders could review applications; Representative Fugate urged language adjustments to accommodate short application windows. The PCS requires notification to specified legislative leaders and includes provisions for agencies to present grant applications and for the legislature to hold hearings before certain monetary relief funds could be drawn down.

The committee approved the PCS and reported it out by a 11-4 vote.