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 porgram 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	(b) Section 456.024, Transportation Code, is repealed.                         
	(c) This section takes effect September 1, 2004.