SRC-MAX H.B. 3443 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 3443
By: Kubiak (Armbrister)
State Affairs
5-6-97
Engrossed


DIGEST 

Currently, Tarrant County, Mesquite, and Grand Prairie are ineligible to
qualify for funding as urbanized areas under certain legislation passed
during the 74th Legislature, which conformed the state's public
transportation program with the federal Governor's Discretionary Program.
In addition, there are concerns that the  current allocation formula for
distributing public transportation funds to small cities is inadequate and
needs revision in areas such as cash management, transit planning, and
maximizing transit service.   This bill revises the allocation formula in
order to provide funding for the three previously funded urbanized areas
of Tarrant County, Mesquite, and Grand Prairie to reflect recent changes
in practice and policy related to public transportation funding for small
cities.   

PURPOSE

As proposed, H.B. 3443 sets forth provisions regarding the financing of
public transportation. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 456.001, Transportation Code, by amending
Subdivisions (2), (8), (11) and (12) and adding Subdivisions (13) and
(14), to redefine "designated recipient," "public transportation,"
"transit authority," and "urbanized area"  and to define "nonurbanized
area" and "local funds." 

SECTION 2. Amends Section 465.006, Transportation Code, to authorize a
designated recipient of money from the United States or this state for
public transportation (designated recipient) that is a rural or urban
transit district or municipal transit department to use money from the
formula or discretionary program and any local funds for any
transit-related activity.  Authorizes a designated recipient not included
in a transit authority but located in an urbanized area that includes one
or more transit authorities and that received state transit funding in a
certain period to receive certain payment.  Defines "rural transit
district" and "urban transit district." 

SECTION 3. Amends Section 456.007, Transportation Code, by adding
Subsection (c), to set forth certain conditions regrading the use of
federal grants of transit money to the state for public transportation
purposes.   

SECTION 4. Amends Section 456.022, Transportation Code, to require the
Texas Transportation Commission (commission) under the formula program to
allocate 50 percent of the money to municipalities that are designated
recipients in urbanized areas or transit providers and 50 percent of the
money to designated recipients in nonurbanized areas.  Deletes provisions
regarding areas that are not served by a transit authority which have
certain populations and other rural areas.  

SECTION 5. Amends Sections 456.024(a) and (b), Transportation Code, to
require the Texas Transportation Commission (commission) to distribute 10
percent of the total amount to designated recipients described by Section
465.022(1) for state or federal projects selected by the commission. Sets
forth provisions regarding the distribution required by Subsection (a)(1)
to each public  transportation system that received money in accordance
with 49 U.S.C. Section 5317 or certain other municipalities.  Sets forth a
provision regarding each entity's portion of the distribution. Deletes
provisions regarding certain sums computed in Section 5307 of the Federal
Transit Act.  

SECTION 6. Amends Section 456.041(a), Transportation Code, to require the
application for a designated recipient for project financing to contain
the certification required by Section 456.006(b)(4), rather than 456.004.

SECTION 7. Repealer:   Section 456.025, Transportation Code (Reporting by
Designated Recipients). 

SECTION 8. (a)  Provides that in addition to the substantive changes in
law made by this Act, this Act conforms the Transportation Code to changes
in law made by Chapter 644, Acts of the 74th Legislature, Regular Session,
1995. 

(b)  Repealer:  Chapter 644, Acts of the 74th Legislature, Regular
Session, 1995. 

(c)  Provides that to the extent of any conflict, this Act prevails over
another Act of the 75th Legislature, Regular Session, 1997, relating to
nonsubstantive additions and corrections in enacted codes. 

SECTION 9. Emergency clause.
  Effective date:  upon passage.