By Alexander, et al.                                  H.B. No. 2588
       74R7549 T
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the establishment of rural and urban transit districts;
    1-3  re-establishing the public transportation fund.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5                      RURAL AND URBAN TRANSIT ACT
    1-6        SECTION 1.  Definitions:  In this article:
    1-7        (a)  "Rural Transit District" means a political subdivision
    1-8  of the state which provides and coordinates rural public
    1-9  transportation within its boundaries.
   1-10        (b)  "Rural Public Transportation Provider" means
   1-11              (1)  a nonprofit entity, or a local government body
   1-12  created under Chapter 791 of the Government Code (Interlocal
   1-13  Cooperation Contracts), or a political subdivision of the state of
   1-14  Texas, which on September 1, 1994 provides rural public
   1-15  transportation services and receives state or federal public
   1-16  transportation funds through the Texas Department of Transportation
   1-17  (formerly the State Department of Highways and Transportation) or
   1-18  the Federal Transit Administration (formerly the Urban Mass
   1-19  Transportation Administration), or their successors, or
   1-20              (2)  a nonprofit entity, or a local governmental body
   1-21  created under Chapter 791 of the Government Code (Interlocal
   1-22  Cooperation Contracts), or a political subdivision of the state of
   1-23  Texas, which after September 1, 1995 provides rural public
   1-24  transportation services and receives state or federal public
    2-1  transportation money through the Texas Department of Transportation
    2-2  (formerly the State Department of Highways and Transportation) or
    2-3  the Federal Transit Administration (formerly the Urban Mass
    2-4  Transportation Administration), or their successors, and which
    2-5  complies with Section 2 of this Act; or
    2-6              (3)  "Rural Public Transportation contractor" means a
    2-7  recipient of rural public transportation funds through a contract
    2-8  with the Texas Department of Transportation.
    2-9        (c)  An "Urban Transit District" means a local governmental
   2-10  body or a political subdivision of the state of Texas which
   2-11  operates a public transportation system in an urbanized area with a
   2-12  population between 50,000 and 200,000, according to the most recent
   2-13  federal census.
   2-14        (d)  "Public Transportation" means transportation of
   2-15  passengers and their hand-carried packages or baggage by an means
   2-16  of surface, fixed guideway, or underground transportation or
   2-17  transit, except aircraft, taxicab, ambulance, or emergency vehicle.
   2-18        SECTION 2.  Rural Transit Districts.  (a)  Rural public
   2-19  transportation providers as defined in Article 6663(c), Vernon's
   2-20  Texas Civil Statutes, which receive public transportation funds
   2-21  through the Texas Department of Transportation on September 1, 1994
   2-22  are rural transit districts as defined by this Act.
   2-23        (b)  A public transportation provider that desires to
   2-24  contract with the Texas Department of Transportation after
   2-25  September 1, 1995 to provide rural public transportation services,
   2-26  can become a rural transit district within the meaning of this Act
   2-27  only if it complies with the provision of this Section.  No
    3-1  non-urbanized portion of a county shall be excluded from a rural
    3-2  transit district.
    3-3              (1)  The public transportation provider must be a
    3-4  nonprofit entity or a local governmental body created under Chapter
    3-5  791 of the Government Code (Interlocal Cooperation Contracts), or a
    3-6  political subdivision of the state of Texas, desiring to provide
    3-7  rural public transportation services and receive state or federal
    3-8  public transportation money through the Texas Department of
    3-9  Transportation (formerly the State Department of Highways and
   3-10  Transportation) or the Federal Transit Administration (formerly the
   3-11  Urban Mass Transportation Administration), or their successors; or
   3-12              (2)  The county legislative body in the area not
   3-13  described in Section 2(a) desiring designation as a rural transit
   3-14  district must convene a rural public transportation conference to
   3-15  evaluate the need for and desirability of the creation of a new
   3-16  rural transit district to provide public transportation services in
   3-17  the area, taking into consideration the availability of existing
   3-18  rural transit districts with the capacity to provide public
   3-19  transportation service in that area.  Within sixty days of the
   3-20  establishment of the boundaries of the rural transit district the
   3-21  members of the county legislative authority and one elected
   3-22  representative from each city's governing body within the area
   3-23  shall provide for the selection of the governing body of such rural
   3-24  transit district, which shall consist of elected officials selected
   3-25  by and serving at the pleasure of the governing bodies of the
   3-26  component cities within the area and the county legislative
   3-27  authority of each county within the area.
    4-1              (3)  In no case shall the governing body of a single
    4-2  county rural transit district be greater than nine members and in
    4-3  the case of a multicounty district, fifteen members, except that
    4-4  each member county shall be entitled to at least one representative
    4-5  on the governing body of the rural transit district.
    4-6        (c)  Rural Public Transportation Conference; County
    4-7  Conference or Multi-county Conference to Create a Rural Transit
    4-8  District.  In those areas where the county officials believe that
    4-9  the need for public transportation service extends across county
   4-10  boundaries, the county legislative bodies of two or more
   4-11  neighboring counties may elect to convene a multi-county rural
   4-12  public transportation conference, hereinafter referred to as
   4-13  "conference."  There shall be 30 days written notice of the
   4-14  conference to be convened to the legislative body of each city
   4-15  within the county and thirty days public notice.  The conference is
   4-16  to be attended by an elected representative selected by the
   4-17  legislative body of each city within such county and by the county
   4-18  legislative body.  The chairman of the conference shall be elected
   4-19  from the selected representatives.
   4-20              (1)  Any conference that finds it desirable to form a
   4-21  new rural transit district shall fix a date for a public hearing
   4-22  thereon.  Prior to the convening of the public hearing, the
   4-23  conference shall delineate the county or counties that will be
   4-24  included in the new rural transit district, and shall advise the
   4-25  component cities and counties of the proposed area.  Notice of the
   4-26  public hearing, including a description and map of the boundaries
   4-27  of the proposed area and notice of the time and place of the
    5-1  hearing, shall be published once a week for two consecutive weeks
    5-2  in one or more newspapers of general circulation within the area.
    5-3  At such hearing, any interested person may appear and be heard on
    5-4  all matters relating to the effect of the formation of the proposed
    5-5  rural transit district.
    5-6              (2)  Following the conclusion of such hearing, the
    5-7  conference may adopt a resolution declaring the formation and
    5-8  fixing the boundaries of the rural transit district if the
    5-9  conference finds that designation of a new rural transit district
   5-10  will serve the general public and be conducive to the welfare and
   5-11  benefit of the persons and property therein, and if the conference
   5-12  determines that the general public cannot better be served by an
   5-13  existing rural transit district.
   5-14        (d)  Joining an Existing Rural Transit District.  Unserved
   5-15  rural areas may elect to join with an existing rural transit
   5-16  district by the adoption of a resolution by the county's
   5-17  legislative body to that effect.
   5-18        (e)  Merging Two or More Rural Transit Districts.  Two or
   5-19  more rural transit districts may merge into a new rural transit
   5-20  district in which the new boundary lines of the merged rural
   5-21  transit district shall include the existing boundaries of the rural
   5-22  transit district being merged.  The merger shall be made upon the
   5-23  passing of a resolution by the governing board of each rural
   5-24  transit district to be merged by means of interlocal agreement
   5-25  which details the boundaries of each rural transit district to be
   5-26  merged and the boundaries of the new merged rural transit district.
   5-27  Each of these resolutions shall delineate the terms, conditions,
    6-1  and schedule or time period by which the merger shall be executed.
    6-2        SECTION 3.  Urban Transit Districts.  (a)  Small urban public
    6-3  transportation providers as defined in Article 6663(c), Vernon's
    6-4  Texas Civil Statutes, which receive public transportation funds
    6-5  through the Texas Department of Transportation on September 1, 1994
    6-6  are urban transit districts as defined by this Act.
    6-7        (b)  A public transportation provider that desires to
    6-8  contract with the Texas Department of Transportation after
    6-9  September 1, 1995 to provide small urban public transportation
   6-10  services, can become an urban transit district within the meaning
   6-11  of this Act only if it complies with the provisions of this
   6-12  Section.  The public transportation provider must be a local
   6-13  governmental body created under Chapter 791 of the Government Code
   6-14  (Interlocal Cooperation Contracts), or a political subdivision of
   6-15  the state of Texas, desiring to provide small urban public
   6-16  transportation services and receive state or federal public
   6-17  transportation money through the Texas Department of Transportation
   6-18  (formerly the State Department of Highways and Transportation) or
   6-19  the Federal Transit Administration (formerly the Urban Mass
   6-20  Transportation Administration), or their successors.  The
   6-21  legislative body in the area not described in Section 2(a) desiring
   6-22  designation as an urban transit district must adopt a resolution
   6-23  stating the legislative body's declaration creating the small urban
   6-24  transit district to serve the general public.
   6-25        SECTION 4.  General Powers.  (a)  In addition to the powers
   6-26  specifically granted by this chapter a rural transit district shall
   6-27  have all powers which are necessary to carry out the purposes of
    7-1  the rural transit district.  A rural transit district may contract
    7-2  with the United States or any agency thereof, any state or agency
    7-3  thereof, any other rural or urban transit district, any
    7-4  metropolitan or regional transit authority, any county, city,
    7-5  metropolitan municipal corporation, special district, or
    7-6  governmental agency, within or without the state, and any private
    7-7  person, firm or corporation for the purpose of receiving gifts or
    7-8  grants or securing loans or advances for preliminary planning and
    7-9  feasibility studies, or for the design, construction and operation
   7-10  of transportation facilities, including but not limited to,
   7-11  intermodal transportation facilities.
   7-12        (b)  In addition a rural or urban transit district may
   7-13  contract with any governmental agency or with any private person,
   7-14  firm or corporation for the use by either contracting party of all
   7-15  or any part of the facilities, structures, lands, interests in
   7-16  lands, air rights over lands and rights of way of all kinds which
   7-17  are owned, leased or held by the other party and for the purpose of
   7-18  planning, constructing or operating any facility or performing any
   7-19  service which the rural transit district may be authorized to
   7-20  operate or perform, on such terms as may be agreed upon by the
   7-21  contracting parties.
   7-22        (c)  Upon the effective date on which the rural transit
   7-23  district commences to perform the public transportation service, no
   7-24  person or private corporation shall operate a local public
   7-25  passenger transportation service within the rural transit district
   7-26  with the exception of taxis, buses owned or operated by a
   7-27  corporation or organization solely for the purposes of the
    8-1  corporation or organization and for the use of which no fee or fare
    8-2  is charged, or of rural public transportation providers wherein an
    8-3  agreement pursuant to this Act has been made between the parties
    8-4  providing for such transportation service.
    8-5        SECTION 5.  The Public Transportation Fund, referred to in
    8-6  Article 6663c, Vernon's Texas Civil Statutes, is hereby
    8-7  established.
    8-8        SECTION 6.  Amend Section 5, Administration and funding of
    8-9  mass transportation (Article 6663c, Vernon's Texas Civil Statutes)
   8-10  to read as follows:
   8-11        Sec. 5.  (a)  The Public Transportation Fund is established
   8-12  as a special fund in the State Treasury.  The Public Transportation
   8-13  Fund may only be used by the State Department of Highways and
   8-14  Public Transportation, or its successor the Department of
   8-15  Transportation, in carrying out the responsibilities and duties of
   8-16  the commission and the department for public transportation
   8-17  purposes as established under this state law.  The legislature may
   8-18  appropriate money for the Public Transportation Fund each biennium
   8-19  from the portion of the State Highway Fund that is not dedicated by
   8-20  the Texas Constitution.  Grants of money to the state from public
   8-21  and private sources for public transportation shall be deposited in
   8-22  the Public Transportation Fund.
   8-23        (b)  Monies derived from interest on the Public
   8-24  Transportation Fund shall from time to time be deposited into the
   8-25  general revenue fund as determined by the comptroller of public
   8-26  accounts.
   8-27        SECTION 7.  This Act takes effect September 1, 1995.
    9-1        SECTION 8.  The importance of this legislation and the
    9-2  crowded condition of the calendars in both houses create an
    9-3  emergency and an imperative public necessity that the
    9-4  constitutional rule requiring bills to be read on three several
    9-5  days in each house be suspended, and this rule is hereby suspended.