1-1     By:  Kubiak, et al. (Senate Sponsor - Armbrister)     H.B. No. 3443

 1-2           (In the Senate - Received from the House April 27, 1997;

 1-3     April 29, 1997, read first time and referred to Committee on State

 1-4     Affairs; May 8, 1997, reported favorably by the following vote:

 1-5     Yeas 12, Nays 0; May 8, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to financing of public transportation.

 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-10           SECTION 1.  Section 456.001, Transportation Code, is amended

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

1-12     Subdivisions (13) and (14) to read as follows:

1-13                 (2)  "Designated recipient" means an entity that

1-14     receives money from the United States or this state for public

1-15     transportation through the department or the Federal Transit

1-16     Administration or the administration's successor and is a transit

1-17     authority, a municipality not included in a transit authority, a

1-18     local governmental body, another political subdivision of this

1-19     state, or a nonprofit entity providing rural public transportation

1-20     service.

1-21                 (8)  "Public transportation" means transportation of

1-22     passengers and their hand-carried packages or baggage on a [by bus,

1-23     rail, watercraft, or other means that provides general or

1-24     specialized] regular or continuing basis by means of surface or

1-25     water, including fixed guideway or underground transportation or

1-26     transit, other than aircraft, taxicab, ambulance, or emergency

1-27     vehicle [service to the public].

1-28                 (11)  "Transit authority" means a municipality or a

1-29     metropolitan or regional authority in an urbanized area of over

1-30     200,000 population with a local transit tax [created under Chapter

1-31     451 or 452; Chapter 141, Acts of the 63rd Legislature, Regular

1-32     Session, 1973; or Chapter 683, Acts of the 66th Legislature, 1979;

1-33     or a municipal department created under Chapter 453 or former

1-34     Article 1118z, Revised Statutes].

1-35                 (12)  "Urbanized area" means an area with a population

1-36     of more than 50,000 so designated by the United States Bureau of

1-37     the Census [or by general state law].

1-38                 (13)  "Nonurbanized area" means an area outside the

1-39     boundaries of an urbanized area and so designated by the United

1-40     States Bureau of the Census.

1-41                 (14)  "Local funds" include:

1-42                       (A)  passenger revenues, notwithstanding any

1-43     statutory requirement to apply that money to offset operating

1-44     deficits;

1-45                       (B)  money from the purchase of service

1-46     agreements, contract income, advertising revenue, local tax

1-47     receipts, and private donations;

1-48                       (C)  money provided by a political subdivision of

1-49     this state; and

1-50                       (D)  in-kind contributions.

1-51           SECTION 2.  Section 456.006, Transportation Code, is amended

1-52     to read as follows:

1-53           Sec. 456.006.  Use of Financing.  (a)  A designated recipient

1-54     that is a rural or urban transit district or municipal transit

1-55     department may use money from the formula or discretionary program

1-56     and any local funds for any transit-related activity.

1-57           (b)  A designated recipient not included in a transit

1-58     authority but located in an urbanized area that includes one or

1-59     more transit authorities and that received state transit funding

1-60     during the biennium ending August 31, 1997, may receive money from

1-61     the formula or discretionary program in an amount that does not

1-62     exceed the amount of funds expended during that biennium to

1-63     provide:

1-64                 (1)  65 percent of the local share requirement for a

 2-1     federally financed capital improvement project;

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

 2-3     federally financed project for operating expenses;

 2-4                 (3)  65 percent of the local share requirement for

 2-5     federally financed planning activities; and

 2-6                 (4)  50 percent of the total cost of a public

 2-7     transportation capital improvement project, if the designated

 2-8     recipient certifies that money from the United States is

 2-9     unavailable for the project and the commission determines that the

2-10     project is vitally important to the development of public

2-11     transportation in this state.

2-12           (c)  In this section, "rural transit district" and "urban

2-13     transit district" have the meanings assigned by Section 1, Chapter

2-14     645, Acts of the 74th Legislature, Regular Session, 1995 (Article

2-15     6663c-1, Vernon's Texas Civil Statutes).

2-16           SECTION 3.  Section 456.007, Transportation Code, is amended

2-17     by adding Subsection (c) to read as follows:

2-18           (c)  A federal grant of transit money to the state for public

2-19     transportation purposes shall be deposited in the treasury to the

2-20     credit of the state highway fund.   Federal transit grants for

2-21     public transportation purposes may be used only by the department

2-22     to carry out the responsibilities of the commission and the

2-23     department for public transportation under this chapter.

2-24           SECTION 4.  Section 456.022, Transportation Code, is amended

2-25     to read as follows:

2-26           Sec. 456.022.  Allocation by Categories.  Under the formula

2-27     program the commission shall allocate:

2-28                 (1)  50 percent of the money to municipalities that

2-29     are:

2-30                       (A)  designated recipients in [to] urbanized

2-31     areas or transit providers eligible under Section 456.003 and [that

2-32     have populations of not less than 50,000 and that are] not served

2-33     by a transit authority; and

2-34                       (B)  designated recipients that are not included

2-35     in a transit authority but are [to areas not served by a transit

2-36     authority but] located in urbanized areas [that have populations of

2-37     not less than 50,000 and] that include one or more transit

2-38     authorities and received state transit funding during the biennium

2-39     that ended August 31, 1997; and

2-40                 (2)  50 percent of the money to designated recipients

2-41     in nonurbanized areas[:]

2-42                       [(A)  to urban areas that have populations of

2-43     less than 50,000; or]

2-44                       [(B)  to rural areas].

2-45           SECTION 5.  Sections 456.024(a) and (b), Transportation Code,

2-46     are amended to read as follows:

2-47           (a)  Of the money allocated under Section 456.022(1), the

2-48     commission shall distribute:

2-49                 (1)  90 percent of the total amount to all designated

2-50     recipients described by Section 456.022(1) that operate public

2-51     transportation services; and

2-52                 (2)  10 percent of the total amount to designated

2-53     recipients described by Section 456.022(1) for state or federally

2-54     financed projects selected by the commission.

2-55           (b)  The distribution required by Subsection (a)(1) is to

2-56     each operating public transportation system that receives money in

2-57     accordance with 49 U.S.C.  Section 5307 or a municipality located

2-58     in an urbanized area that includes one or more transit authorities.

2-59     Each entity's portion of the distribution must be in the ratio that

2-60     the amount received by that entity during the preceding fiscal

2-61     biennium, less any amount returned by the entity at the end of the

2-62     first year of the biennium, bears to the total amount received by

2-63     all entities during that biennium [of the Federal Transit Act and

2-64     is computed, except as provided by Section 456.025, as the sum of:]

2-65                 [(1)  one-half of the total amount required by

2-66     Subsection (a)(1) multiplied by the ratio that the population of

2-67     the urbanized area bears to the total population of all urbanized

2-68     areas in this state that are described by Section 456.022(1); and]

2-69                 [(2)  one-half of the total amount required by

 3-1     Subsection (a)(1) multiplied by the ratio that the number of

 3-2     inhabitants per square mile of the urbanized area bears to the

 3-3     combined number of inhabitants per square mile of all urbanized

 3-4     areas in this state that are described by Section 456.022(1)].

 3-5           SECTION 6.  Section 456.041(a), Transportation Code, is

 3-6     amended to read as follows:

 3-7           (a)  To participate in the discretionary program provided by

 3-8     this subchapter, a designated recipient must submit to the

 3-9     commission an application for project financing.  The application

3-10     must contain:

3-11                 (1)  a description of the project, including an

3-12     estimate of the population that the project would benefit and the

3-13     anticipated completion date of the project;

3-14                 (2)  a statement of the estimated cost of the project,

3-15     including an estimate of the portion of the cost of the project

3-16     financed by the United States; and

3-17                 (3)  the certification required by Section

3-18     456.006(b)(4) [456.004].

3-19           SECTION 7.  Section 456.025, Transportation Code, is

3-20     repealed.

3-21           SECTION 8.  (a)  In addition to the substantive changes in

3-22     law made by this Act, this Act conforms the Transportation Code to

3-23     changes in law made by Chapter 644, Acts of the 74th Legislature,

3-24     Regular Session, 1995.

3-25           (b)  Chapter 644, Acts of the 74th Legislature, Regular

3-26     Session, 1995, is repealed.

3-27           (c)  To the extent of any conflict, this Act prevails over

3-28     another Act of the 75th Legislature, Regular Session, 1997,

3-29     relating to nonsubstantive additions and corrections in enacted

3-30     codes.

3-31           SECTION 9.  The importance of this legislation and the

3-32     crowded condition of the calendars in both houses create an

3-33     emergency and an imperative public necessity that the

3-34     constitutional rule requiring bills to be read on three several

3-35     days in each house be suspended, and this rule is hereby suspended,

3-36     and that this Act take effect and be in force from and after its

3-37     passage, and it is so enacted.

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