BILL ANALYSIS H.B. 2496 By: Kubiak (Armbrister) State Affairs 5-16-95 Senate Committee Report (Unamended) BACKGROUND Forty-one rural and twenty-five small urban communities operate transit systems in Texas under statewide regulation of the Federal Transit Administration and the Texas Department of Transportation. Current law is designed to maximize the Texas transit match for federal funds by establishing the Public Transportation Fund (PTF). With shrinking federal dollars available for the states, the restrictions on funds dedicated to the PTF have become unproductive. Monies dedicated to the PTF may sit idle for lack of matching federal dollars. PURPOSE As proposed, H.B. 2496 provides for the funding of mass transportation projects. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 2, Article 6663c, V.T.C.S., by amending Subdivisions (7) and (10) and adding Subdivision (12), as follows: (7) Redefines "urbanized area" to mean an area having a population of more than 50,000 but less than 200,000. (10) Redefines "designated recipient" to make conforming changes. (12) Defines "rural area." SECTION 2. Amends Section 4(c), Article 6663c, V.T.C.S., to add to the provisions that an application submitted under this subsection must contain, a certification that funds, rather than local funds, are available, if required under Section 5A(b) of this Act, rather than for local share requirements. SECTION 3. Amends Sections 5A(a), (b), (c), and (d), Article 6663c, V.T.C.S., as follows: (a) Authorizes designated recipients to use money from the formula and discretionary programs to provide for capital improvements, planning activities, and operating expenses and other administrative costs, rather than to provide certain percentages of the local share requirement for activities. (b) Prohibits a metropolitan or regional authority created under Article 1118x, V.T.C.S., or Article 1118y, V.T.C.S., rather than an authority, from receiving money from the formula or discretionary program. Provides that a city transit department created under Article 1118z, V.T.C.S., by a municipality having a population of not more than 200,000 is eligible to receive money from the formula and the discretionary program with the option to provide a local share. Provides that a municipality having a population of more than 200,000 and not otherwise described by this subsection is eligible to receive money from the formula and discretionary program to provide for certain percentages of the local share requirements for activities. (c) Deletes existing Subdivision (1) relating to the requirement that an application for money under this Act contain a statement by the applicant that money is available to provide for the local share requirements. (d) Provides that the state public transportation program provided by this Act is a grant, rather than a matching grant, program for public transportation projects. Provides that federal approval of a proposed public transportation project means that the project is consistent with the purposes of this Act and with the continuing, cooperative, and comprehensive regional transportation planning implemented in accordance with 49 U.S.C. Section 5301, rather than 1601, et seq. (federal Urban Mass Transportation Act of 1964) and 49 U.S.C. Section 1602a (Federal-Aid Highway Act of 1973). SECTION 4. Effective date: September 1, 1995. SECTION 5. Emergency clause.