BILL ANALYSIS C.S.H.B. 2496 By: Kubiak 04-20-95 Committee Report (Substituted) BACKGROUND Forty-one rural and twenty five small urban transit systems currently operate transit systems in Texas under statewide regulation of the Federal Transit Administration and the Texas Department of Transportation. Current law, (Vernon's Texas Civil Statutes, Article 6663c) is designed to maximize the Texas transit match for Federal funds by establishing the Public Transportation Fund (PTF). With shrinking Federal dollars available to states the current restrictions on funds dedicated to the PTF have become unproductive. Monies dedicated to the PTF could sit idle for lack of matching Federal dollars. PURPOSE HB 2496 eliminates provisions requiring state funds appropriated into the PTF to be matched with federal dollars in order to provide maximum flexibility in the funding of state transit programs. The bill also provides for the re-establishment of the Public Transportation Fund (PTF) as a special fund and allows the Comptroller to transfer interest generated from the PTF to the general revenue fund. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1: Amends V.T.C.S., Article 6663c, Section 2 as follows: (7)language is added to define urbanized areas as those with a population between 50,000 and 200,000, according to the most recent census. (8)is added to define rural areas as those with a population of 50,000 or less. This section also renumbers subsections (8-12) as a result of the addition of a definition. SECTION 2: Amends V.T.C.S., Article 6663c, Section 4 as follows: (a)the commission must administer the discretionary program (b)all except authorities (as defined under Sec. 2(11) are eligible to participate in the program. (c)designated recipients must submit applications to the commission containing (1)a project description; (2)a cost statement, including any federally financed portions; and (3)certification that funds are available and that proposals are consistent with regional transportation plans. SECTION 3: Amends Sections 5A(a), (b), (c), and (d), Chapter 679, Acts of the 64th Legislature, Regular Session, 1975 (Article 6663c, Vernon's Texas Civil Statutes): (a) designated recipients may use money for the formula and discretionary programs to provide for capital improvements, planning activities, and operating expenses and other administrative costs; (b) A metropolitan or regional authority created under Chapter 141, Acts of the 63rd Legislature, Regular Session, 1973 (Article 1118x, Vernon's Texas Civil Statutes), or Chapter 683, Acts of the 66th Legislature, Regular Session, 1979 (Article 1118y, Vernon's Texas Civil Statutes), may not receive money from the formula or discretionary program. A city transit department or municipality created under this article having a population of not more than 200,000 is eligible to receive money for the formula and the discretionary program. The program provides: 65 percent of the local share requirement for federally financed projects for capital improvements; 50 percent of the local share requirement for projects for operating expenses and other administrative costs; 50 percent of the total cost of a public transportation capital improvement project, if the designated recipient certifies that federal money is unavailable for the proposed project and the commission finds that the proposed project is vitally important to the development of public transportation in the state; and 65 percent of the local share requirement for federally financed planning activities. SECTION 4: Effective date: September 1, 1995. SECTION 5: Emergency Clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The committee substitute to H.B. 2496 makes no changes to Sections 1 and 2, deletes Sections 3 and 4 of the original version of the bill, adds a new Section 3 which makes the following changes: Subsection (a) has technical language changes made. Subsection (b) adds language to include those eligible cities over 200,000 in population in the fund, who are not metropolitan or regional transit authorities, under the existing statute's matching formulas. SUMMARY OF COMMITTEE ACTION Pursuant to a public notice posted on April 7, 1995 at 5:04 p.m., the House Committee on Transportation met in a public hearing on Wednesday, April 12, 1995, at 2:00 p.m., or upon adjournment, in Room E1.014 of the Capitol Extension and was called to order at 3:58 p.m. by the Chair, Representative Clyde Alexander. The Chair laid out H.B. 2496 and recognized Representative Kubiak to explain H.B. 2496. The Chair recognized Representative Bosse who laid out the Committee Substitute to H.B. 2496, and without objection the substitute was adopted. The Chair recognized the following persons who testified in support of C.S.H.B. 2496. John McBeth, Texas Transit Association. Representative Bosse moved to withdraw the Committee Substitute to H.B. 2496 and without objection, the Committee substitute to H.B. 2496 was withdrawn. The Chair left H.B. 2496 pending before the Committee. Pursuant to a public notice announced from the House Floor on April 20, 1995, in accordance with House Rules, the House Committee on Transportation met in a formal meeting on the House Floor, at Desk 22, on Thursday, April 20, 1995, and was called to order by the Chairman, Representative Clyde Alexander at 4:12 p.m. The Chair laid out H.B. 2496 by Kubiak, which was pending before the Committee. Representative Clemons laid out the Committee Substitute to H.B. 2496, and without objection, the Substitute to H.B. 2496 was adopted. Representative Clemons moved that the Committee report H.B. 2496, as substituted, to the full House with the recommendation that it do pass. The motion prevailed by the following vote: Ayes (5), Nayes (0), Absent (4), Present not voting (0).