75R10450 DWS-F                           

         By Kubiak, Reyna of Dallas, Allen                     H.B. No. 3443

         Substitute the following for H.B. No. 3443:

         By Alexander                                      C.S.H.B. No. 3443

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to financing of public transportation.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 456.001, Transportation Code, is amended

 1-5     by amending Subdivisions (2), (8), (11), and (12) and adding

 1-6     Subdivisions (13) and (14) to read as follows:

 1-7                 (2)  "Designated recipient" means an entity that

 1-8     receives money from the United States or this state for public

 1-9     transportation through the department or the Federal Transit

1-10     Administration or the administration's successor and is a transit

1-11     authority, a municipality not included in a transit authority, a

1-12     local governmental body, another political subdivision of this

1-13     state, or a nonprofit entity providing rural public transportation

1-14     service.

1-15                 (8)  "Public transportation" means transportation of

1-16     passengers and their hand-carried packages or baggage on a [by bus,

1-17     rail, watercraft, or other means that provides general or

1-18     specialized] regular or continuing basis by means of surface or

1-19     water, including fixed guideway or underground transportation or

1-20     transit, other than aircraft, taxicab, ambulance, or emergency

1-21     vehicle [service to the public].

1-22                 (11)  "Transit authority" means a municipality or a

1-23     metropolitan or regional authority in an urbanized area of over

1-24     200,000 population with a local transit tax [created under Chapter

 2-1     451 or 452; Chapter 141, Acts of the 63rd Legislature, Regular

 2-2     Session, 1973; or Chapter 683, Acts of the 66th Legislature, 1979;

 2-3     or a municipal department created under Chapter 453 or former

 2-4     Article 1118z, Revised Statutes].

 2-5                 (12)  "Urbanized area" means an area with a population

 2-6     of more than 50,000 so designated by the United States Bureau of

 2-7     the Census [or by general state law].

 2-8                 (13)  "Nonurbanized area" means an area outside the

 2-9     boundaries of an urbanized area and so designated by the United

2-10     States Bureau of the Census.

2-11                 (14)  "Local funds" include:

2-12                       (A)  passenger revenues, notwithstanding any

2-13     statutory requirement to apply that money to offset operating

2-14     deficits;

2-15                       (B)  money from the purchase of service

2-16     agreements, contract income, advertising revenue, local tax

2-17     receipts, and private donations;

2-18                       (C)  money provided by a political subdivision of

2-19     this state; and

2-20                       (D)  in-kind contributions.

2-21           SECTION 2.  Section 456.006, Transportation Code, is amended

2-22     to read as follows:

2-23           Sec. 456.006.  Use of Financing.  (a)  A designated recipient

2-24     that is a rural or urban transit district or municipal transit

2-25     department may use money from the formula or discretionary program

2-26     and any local funds for any transit-related activity.

2-27           (b)  A designated recipient not included in a transit

 3-1     authority but located in an urbanized area that includes one or

 3-2     more transit authorities and that received state transit funding

 3-3     during the biennium ending August 31, 1997, may receive money from

 3-4     the formula or discretionary program in an amount that does not

 3-5     exceed the amount of funds expended during that biennium to

 3-6     provide:

 3-7                 (1)  65 percent of the local share requirement for a

 3-8     federally financed capital improvement project;

 3-9                 (2)  50 percent of the local share requirement for a

3-10     federally financed project for operating expenses;

3-11                 (3)  65 percent of the local share requirement for

3-12     federally financed planning activities; and

3-13                 (4)  50 percent of the total cost of a public

3-14     transportation capital improvement project, if the designated

3-15     recipient certifies that money from the United States is

3-16     unavailable for the project and the commission determines that the

3-17     project is vitally important to the development of public

3-18     transportation in this state.

3-19           (c)  In this section, "rural transit district" and "urban

3-20     transit district" have the meanings assigned by Section 1, Chapter

3-21     645, Acts of the 74th Legislature, Regular Session, 1995 (Article

3-22     6663c-1, Vernon's Texas Civil Statutes).

3-23           SECTION 3.  Section 456.007, Transportation Code, is amended

3-24     by adding Subsection (c) to read as follows:

3-25           (c)  The public transportation account is an account in the

3-26     general revenue fund.  A federal grant of money to the state for

3-27     public transportation purposes shall be deposited to the credit of

 4-1     the public transportation account.  Money in the public

 4-2     transportation account may be used only by the department to carry

 4-3     out the responsibilities of the commission and department for

 4-4     public transportation under this chapter.

 4-5           SECTION 4.  Section 456.022, Transportation Code, is amended

 4-6     to read as follows:

 4-7           Sec. 456.022.  Allocation by Categories.  Under the formula

 4-8     program the commission shall allocate:

 4-9                 (1)  50 percent of the money to municipalities that

4-10     are:

4-11                       (A)  designated recipients in [to] urbanized

4-12     areas or transit authorities eligible under Section 456.003 and

4-13     [that have populations of not less than 50,000 and that are] not

4-14     served by a transit authority; and

4-15                       (B)  designated recipients that are not included

4-16     in a transit authority but are [to areas not served by a transit

4-17     authority but] located in urbanized areas [that have populations of

4-18     not less than 50,000 and] that include one or more transit

4-19     authorities and received state transit funding during the biennium

4-20     that ended August 31, 1997; and

4-21                 (2)  50 percent of the money to designated recipients

4-22     in nonurbanized areas[:]

4-23                       [(A)  to urban areas that have populations of

4-24     less than 50,000; or]

4-25                       [(B)  to rural areas].

4-26           SECTION 5.  Sections 456.024(a) and (b), Transportation Code,

4-27     are amended to read as follows:

 5-1           (a)  Of the money allocated under Section 456.022(1), the

 5-2     commission shall distribute:

 5-3                 (1)  90 percent of the total amount to all designated

 5-4     recipients described by Section 456.022(1) that operate public

 5-5     transportation services; and

 5-6                 (2)  10 percent of the total amount to designated

 5-7     recipients described by Section 456.022(1) for state or federally

 5-8     financed projects selected by the commission.

 5-9           (b)  The distribution required by Subsection (a)(1) is to

5-10     each operating public transportation system that receives money in

5-11     accordance with 49 U.S.C.  Section 5307 or a municipality located

5-12     in an urbanized area that includes one or more transit authorities.

5-13     Each entity's portion of the distribution must be in the ratio that

5-14     the amount received by that entity during the preceding fiscal

5-15     biennium, less any amount returned by the entity at the end of the

5-16     first year of the biennium, bears to the total amount received by

5-17     all entities during that biennium [of the Federal Transit Act and

5-18     is computed, except as provided by Section 456.025, as the sum of:]

5-19                 [(1)  one-half of the total amount required by

5-20     Subsection (a)(1) multiplied by the ratio that the population of

5-21     the urbanized area bears to the total population of all urbanized

5-22     areas in this state that are described by Section 456.022(1); and]

5-23                 [(2)  one-half of the total amount required by

5-24     Subsection (a)(1) multiplied by the ratio that the number of

5-25     inhabitants per square mile of the urbanized area bears to the

5-26     combined number of inhabitants per square mile of all urbanized

5-27     areas in this state that are described by Section 456.022(1)].

 6-1           SECTION 6.  Section 456.041(a), Transportation Code, is

 6-2     amended to read as follows:

 6-3           (a)  To participate in the discretionary program provided by

 6-4     this subchapter, a designated recipient must submit to the

 6-5     commission an application for project financing.  The application

 6-6     must contain:

 6-7                 (1)  a description of the project, including an

 6-8     estimate of the population that the project would benefit and the

 6-9     anticipated completion date of the project;

6-10                 (2)  a statement of the estimated cost of the project,

6-11     including an estimate of the portion of the cost of the project

6-12     financed by the United States; and

6-13                 (3)  the certification required by Section

6-14     456.006(b)(4) [456.004].

6-15           SECTION 7.  Section 456.025, Transportation Code, is

6-16     repealed.

6-17           SECTION 8.  (a)  In addition to the substantive changes in

6-18     law made by this Act, this Act conforms the Transportation Code to

6-19     changes in law made by Chapter 644, Acts of the 74th Legislature,

6-20     Regular Session, 1995.

6-21           (b)  Chapter 644, Acts of the 74th Legislature, Regular

6-22     Session, 1995, is repealed.

6-23           (c)  To the extent of any conflict, this Act prevails over

6-24     another Act of the 75th Legislature, Regular Session, 1997,

6-25     relating to nonsubstantive additions and corrections in enacted

6-26     codes.

6-27           SECTION 9.  The importance of this legislation and the

 7-1     crowded condition of the calendars in both houses create an

 7-2     emergency and an imperative public necessity that the

 7-3     constitutional rule requiring bills to be read on three several

 7-4     days in each house be suspended, and this rule is hereby suspended,

 7-5     and that this Act take effect and be in force from and after its

 7-6     passage, and it is so enacted.