Amend CSHB 3588, in ARTICLE 12 of the bill, by adding the 
following appropriately numbered SECTION and renumbering 
subsequent SECTIONS accordingly:
	SECTION ___.  (a)  Section 456.022, Transportation Code, is 
amended to read as follows:
	Sec. 456.022.  FORMULA ALLOCATION [BY CATEGORIES]. The 
commission shall adopt rules establishing a formula to allocate 
funds to eligible public transportation providers.  The formula may 
take into account:
		(1)  the provider's performance;                                       
		(2)  the number of passengers served by the provider;                  
		(3)  the need for public transportation by residents of 
the provider's service area;
		(4)  the population, population density, and land area 
of the provider's service area; and
		(5)  other factors established by the 
commission [Under the formula program the commission shall 
allocate:
		[(1)  50 percent of the money to municipalities that 
are:  
			[(A)  designated recipients in urbanized areas or 
transit providers eligible under Section 456.003 and not served by 
a transit authority; and
			[(B)  designated recipients that are not included 
in a transit authority but are located in urbanized areas that 
include one or more transit authorities and received state transit 
funding during the biennium that ended August 31, 1997; and
		[(2)  50 percent of the money to designated recipients 
in nonurbanized areas].
	(b)  Section 456.024, Transportation Code, is repealed.