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).