BILL ANALYSIS



H.B. 2588
By: Alexander
04-19-95
Committee Report (Unamended)


BACKGROUND

Current law, (Vernon's Texas Civil Statutes, Article 6663(c) does
not specifically designate a funding source for Rural
Transportation Districts in Texas.  Consequently, these Forty-one
rural and twenty-five small urban transit systems currently
operating in Texas have no stable source of funding from either the
state or the municipalities where they are located.  The Public
Transportation Fund previously established no longer exists in the
General Revenue Fund.

The State of Texas recognizes Federal definitions with regard to
public transit.  "Small urban areas" include communities with a
population of between 50,000 and 200,000, and "rural areas" include
areas with a population of 50,000 or less.  Both definitions as
used by the Federal Transit Administration in the allocation of
funds.

Metropolitan transit authorities have statutory regulation
governing their establishment.  State's rural and small urban
communities currently do not have a governing statute and are not
regulated by the state.

PURPOSE

House Bill 2588 provides small urban and rural public transit with
a governing statute outlining how such transit districts can be
created and expanded.  City transit departments are not affected by
this bill except as they are labeled a "transit district".  Rural
transit systems, organized and operated by a variety of
organizations -- such as, county non-profit organizations, agencies
of the state, community action agencies, area aging agencies,
councils of governments, municipal transit departments, regional
planning councils, or public entities created by inter-local
agreement -- would become rural transit "districts."  For these
rural transit operators, obtaining statutory recognition and status
as a "transit district" represents achieving a new level of
maturity and organization as the state moves towards its goal of
establishing a statewide system of public transportation.

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: Definitions. (a)Defines Rural Transit Districts as
public entities created by the state.  (b)Defines Rural Public
Transportation Provider to mean (1)existing rural operators who are
performing transit services, using federal funds, and under
contract as a nonprofit agency with the state on September 1, 1994. 
(2)Nonprofit entities providing services after September 1, 1995.
(3)Defines Rural Public Transportation Contractor as a recipient of
rural public transportation funds.  (c)Defines Urban Transit
Districts as small urban areas with a population between 50,000 and
200,000.  (d)Defines Public Transportation as transport of
passengers and their cargo by surface, fixed track, or underground
means.  This definition excludes aircraft, taxicab, ambulance, or
emergency vehicles.

SECTION 2: Rural Transit Districts. (a)Grandfathers all existing
rural transit providers as (a)defined in V.T.C.S., Article 6663c
(Administration and funding of mass transportation) under contract
on September 1, 1994.  Provides for establishing a rural transit
district who has contracted with the state after September 1, 1994,
by the convening of county-wide, or multi-county, conference(s).  
(b)Provides that no non-urbanized part of a county can be excluded
from a such a district and that any public transportation provider
which wishes to provide public transportation services, must comply
with the following provisions of this Section:
(1)the provider must be a nonprofit entity or local government body
created under Chapter 791, Local Government Code, or a political
subdivision of the State of Texas which desires public funding from
Texas Department of Transportation (TxDOT,) or the Federal Transit
Administration or their successors.
(2)the county legislative body in the area desiring designation as
a rural transit district must convene a transportation conference
to determine need and desirability of such a district.  This
subdivision also indicates that within 60 days of the establishment
of the boundaries of a rural transit district the county
legislative authority, along with one representative from each city
within the area must provide for the selection of a governing body
of the transit district.  The elected members serve at the pleasure
of the governing bodies of the component cities with the in the
area and the county legislative authority within the service area.
(3)A governing body must not be more than nine members for a one
county district and no more than fifteen members for multicounty
districts.  The only exception provides that each member county
must be entitled to at least one representative on the board.
(c)Provides that where the need dictates, county officials can
convene a multi-county conference with 30 days public notice.  The
chairman of the conference must be elected from the
representatives.
(1)Requires that any conference wishing to form a rural transit
district must schedule a public hearing and provide public notice,
including the area map and time and place of the hearing.  This
notice must be published once per week for two consecutive weeks in
one or more local papers.  This hearing is open to related
testimony from any person.
(2)Provides that upon the conclusion of a hearing under (1), the
conference may adopt by resolution the formation and boundaries of
the rural transit district.  The creation of such a district must
serve the general public.
(d)Provides that unserved rural areas may join an existing transit
district by the adoption of a resolution to that effect.
(e)Provides that two or more rural transit districts may merge into
one district by passage of a resolution by each district.

SECTION 3: Urban Transit Districts. (a)Grandfathers as eligible
urban entities (as defined under V.T.C.S., Article 6663(c) those
cities currently under contract with the state as of September 1,
1994.
(b)Provides that any provider wishing to be recognized as an urban
transit district must comply with the following:  It must be a
local governmental body created under Chapter 791, Government Code,
or a political subdivision of the state of Texas, desiring to
provide transit services and receive state and federal public
transportation money through TxDOT, and adopt a resolution to that
effect. 

SECTION 4: General Powers. (a)allows transit districts to contract
with any the United States or any agency thereof; any state or
state agency; any other rural, or urban, transit operations; any
county, city or municipality and public entities; and any private
individual, firm or corporation for receiving grants or securing
loans.
(b)Provides that any rural or urban transit district may contract
with any governmental agency or private person, firm or corporation
to plan, construct, design, or operate transit facilities.
(c)Restricts the area to one rural transit district or
transportation providers, with the exception of taxis or buses
owned and operated by private companies and which charge no fee or
fare.  This subdivision also provides that these private firms may
agree to provide services to a rural transit district.

SECTION 5: Establishes the Public Transportation Fund, which is
referred to in V.T.C.S., Article 6663c

SECTION 6: Amends V.T.C.S., Article 6663c, Section 5 as follows:
Sec. 5(a)Establishes the Public Transportation Fund as a special
fund in the state treasury and can only be used by TxDOT.  The
legislature may appropriate money for the Fund each biennium from
the State Highway Fund.  Private grants and money must be deposited
into this Fund.
(b)is added to indicate that money derived from interest on the
Fund shall be deposited into the General Revenue Fund on a scale
determined by the Comptroller of Public Accounts.

SECTION 7: Effective Date: September 1, 1995.

SECTION 8: Emergency Clause.

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. 2588 and recognized Representative Alexander to
explain H.B. 2588.  The Chair recognized the following persons who
testified in support of H.B. 2588.  John McBeth, Texas Transit
Association.  Michael Plaster, Texas Transit Association.  There
were no witnesses testifying in opposition to H.B. 2588.  The Chair
left H.B. 2588 pending before the Committee.  Pursuant to a public
notice posed on April 13, 1995 at 4:14 p.m., the House Committee on
Transportation met in a public hearing on Wednesday, April 19, 1995
at 2:00 p.m., or upon adjournment, in Room E1.014 of the Capitol
Extension and was called to order at 2:16 p.m. by the Chair,
Representative Clyde Alexander.  The Chair laid out H.B. 2588 by
Alexander, which was pending before the Committee.  Representative
Alonzo moved to report H.B. 2588, without amendments, to the full
House with the recommendation that it do pass.  The motion
prevailed by the following vote: Ayes (6), Nayes (0), Absent (2),
Present not voting (1).