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).