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.