By Kubiak                                       H.B. No. 3443

      75R9055 DWS-F                           

                                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     Subdivision (13) 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           SECTION 2.  Section 456.002(b), Transportation Code, is

2-12     amended to read as follows:

2-13           (b)  Each public transportation program provided by this

2-14     chapter is a [matching] grant program for public transportation

2-15     projects.  Approval by the United States of a proposed public

2-16     transportation project means that the project is consistent with

2-17     the purposes of this chapter and with the continuing, cooperative,

2-18     and comprehensive regional transportation planning implemented in

2-19     accordance with federal transit and federal-aid highway laws [the

2-20     Federal Transit Act and the Federal-Aid Highway Act].

2-21           SECTION 3.  Section 456.004, Transportation Code, is amended

2-22     to read as follows:

2-23           Sec. 456.004.  General Financing Application Requirements.

2-24     An application for project financing under this chapter must be

2-25     certified and contain a statement by the applicant that[:]

2-26                 [(1)]  the proposed public transportation project is

2-27     consistent with the continuing, cooperative, and comprehensive

 3-1     regional transportation planning implemented in accordance with

 3-2     federal transit and federal-aid highway laws [the Federal Transit

 3-3     Act and the Federal-Aid Highway Act; and]

 3-4                 [(2)  money is available to provide:]

 3-5                       [(A)  35 percent of the local share requirement,

 3-6     if the project is a federally financed capital improvement or

 3-7     planning project, or 50 percent of the local share requirement, if

 3-8     the project is a federally financed project for operating expenses;

 3-9     or]

3-10                       [(B)  50 percent of the total cost of the public

3-11     transportation capital improvement project, if the project is not

3-12     described in Paragraph (A)].

3-13           SECTION 4.  Section 456.006, Transportation Code, is amended

3-14     to read as follows:

3-15           Sec. 456.006.  Use of Financing.                 (a)  A

3-16     designated recipient that is a rural or urban transit district or

3-17     municipal transit department may use money from the formula or

3-18     discretionary program for any transit-related activity.

3-19           (b)  A designated recipient not included in a transit

3-20     authority but located in an urbanized area that includes one or

3-21     more transit authorities and that received state transit funding

3-22     during the biennium ending August 31, 1997, may receive money from

3-23     the formula or discretionary program in an amount that does not

3-24     exceed the amount of funds expended during that biennium to

3-25     provide:

3-26                 (1)  65 percent of the local share requirement for a

3-27     federally financed capital improvement project;

 4-1                 (2)  50 percent of the local share requirement for a

 4-2     federally financed project for operating expenses;

 4-3                 (3)  65 percent of the local share requirement for

 4-4     federally financed planning activities; and

 4-5                 (4)  50 percent of the total cost of a public

 4-6     transportation capital improvement project, if the designated

 4-7     recipient certifies that money from the United States is

 4-8     unavailable for the project and the commission determines that the

 4-9     project is vitally important to the development of public

4-10     transportation in this state.

4-11           (c)  In this section, "rural transit district" and "urban

4-12     transit district" have the meanings assigned by Section 1, Chapter

4-13     645, Acts of the 74th Legislature, Regular Session, 1995 (Article

4-14     6663c-1, Vernon's Texas Civil Statutes).

4-15           SECTION 5.  Section 456.007, Transportation Code, is amended

4-16     by adding Subsection (c) to read as follows:

4-17           (c)  The public transportation account is an account in the

4-18     general revenue fund.  A federal grant of money to the state for

4-19     public transportation purposes shall be deposited to the credit of

4-20     the public transportation account.  Money in the public

4-21     transportation account may be used only by the department to carry

4-22     out the responsibilities of the commission and department for

4-23     public transportation under this chapter.

4-24           SECTION 6.  Section 456.022, Transportation Code, is amended

4-25     to read as follows:

4-26           Sec. 456.022.  Allocation by Categories.  Under the formula

4-27     program the commission shall allocate:

 5-1                 (1)  50 percent of the money to municipalities that

 5-2     are:

 5-3                       (A)  designated recipients in [to] urbanized

 5-4     areas or transit authorities eligible under Section 456.003 and

 5-5     [that have populations of not less than 50,000 and that are] not

 5-6     served by a transit authority; and

 5-7                       (B)  designated recipients that are not included

 5-8     in a transit authority but are [to areas not served by a transit

 5-9     authority but] located in urbanized areas [that have populations of

5-10     not less than 50,000 and] that include one or more transit

5-11     authorities and received state transit funding during the biennium

5-12     that ended August 31, 1997; and

5-13                 (2)  50 percent of the money to designated recipients

5-14     in nonurbanized areas[:]

5-15                       [(A)  to urban areas that have populations of

5-16     less than 50,000; or]

5-17                       [(B)  to rural areas].

5-18           SECTION 7.  Sections 456.024(a) and (b), Transportation Code,

5-19     are amended to read as follows:

5-20           (a)  Of the money allocated under Section 456.022(1), the

5-21     commission shall distribute:

5-22                 (1)  90 percent of the total amount to all designated

5-23     recipients described by Section 456.022(1) that operate public

5-24     transportation services; and

5-25                 (2)  10 percent of the total amount to designated

5-26     recipients described by Section 456.022(1) for state or federally

5-27     financed projects selected by the commission.

 6-1           (b)  The distribution required by Subsection (a)(1) is to

 6-2     each operating public transportation system that receives money in

 6-3     accordance with 49 U.S.C.  Section 5307 or a municipality located

 6-4     in an urbanized area that includes one or more transit authorities.

 6-5     Each entity's portion of the distribution must be in the ratio that

 6-6     the amount received by that entity during the preceding fiscal

 6-7     biennium, less any amount returned by the entity at the end of the

 6-8     first year of the biennium, bears to the total amount received by

 6-9     all entities during that biennium [of the Federal Transit Act and

6-10     is computed, except as provided by Section 456.025, as the sum of:]

6-11                 [(1)  one-half of the total amount required by

6-12     Subsection (a)(1) multiplied by the ratio that the population of

6-13     the urbanized area bears to the total population of all urbanized

6-14     areas in this state that are described by Section 456.022(1); and]

6-15                 [(2)  one-half of the total amount required by

6-16     Subsection (a)(1) multiplied by the ratio that the number of

6-17     inhabitants per square mile of the urbanized area bears to the

6-18     combined number of inhabitants per square mile of all urbanized

6-19     areas in this state that are described by Section 456.022(1)].

6-20           SECTION 8.  Section 456.041(a), Transportation Code, is

6-21     amended to read as follows:

6-22           (a)  To participate in the discretionary program provided by

6-23     this subchapter, a designated recipient must submit to the

6-24     commission an application for project financing.  The application

6-25     must contain:

6-26                 (1)  a description of the project, including an

6-27     estimate of the population that the project would benefit and the

 7-1     anticipated completion date of the project;

 7-2                 (2)  a statement of the estimated cost of the project,

 7-3     including an estimate of the portion of the cost of the project

 7-4     financed by the United States; and

 7-5                 (3)  the certification required by Section

 7-6     456.006(b)(4) [456.004].

 7-7           SECTION 9.  Section 456.025, Transportation Code, is

 7-8     repealed.

 7-9           SECTION 10.  (a)  In addition to the substantive changes in

7-10     law made by this Act, this Act conforms the Transportation Code to

7-11     changes in law made by Chapter 644, Acts of the 74th Legislature,

7-12     Regular Session, 1995.

7-13           (b)  Chapter 644, Acts of the 74th Legislature, Regular

7-14     Session, 1995, is repealed.

7-15           (c)  To the extent of any conflict, this Act prevails over

7-16     another Act of the 75th Legislature, Regular Session, 1997,

7-17     relating to nonsubstantive additions and corrections in enacted

7-18     codes.

7-19           SECTION 11.  The importance of this legislation and the

7-20     crowded condition of the calendars in both houses create an

7-21     emergency and an imperative public necessity that the

7-22     constitutional rule requiring bills to be read on three several

7-23     days in each house be suspended, and this rule is hereby suspended,

7-24     and that this Act take effect and be in force from and after its

7-25     passage, and it is so enacted.