SRC-AMY H.B. 3185 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 3185
By: Hill (Staples)
Infrastructure Development and Security
5/19/2003
Engrossed


DIGEST AND PURPOSE 

Subchapter B, Chapter 456, Transportation Code, establishes the formula
program under which most state grants to public transportation providers
are distributed.  These grants are distributed partly on the basis of a
formula tied to the grants received by entities during the previous
biennium and partly on the basis of a formula tied to the amount entities
received in federal grants.  In practice, the formula distribution has
proved to perpetuate the historical allocation of funds.  In addition,
although Section 456.026 (Reporting by Designated Recipients),
Transportation Code, requires the Texas Transportation Commission (TTC) to
administer a performance-based reporting system, the existing system fails
to incorporate performance as a relevant factor in the allocation of
funding.  Consequently, TTC has been unable to allocate funds in a way
that will encourage, enhance, and reward efficiency so that better service
can be provided to users and potential users of public transportation
services.  H.B. 3185 repeals Section 456.024 (Distribution of
Allocations), Transportation Code, and requires TTC  to adopt rules
establishing a formula allocating funds among individual eligible public
transportation providers. H.B. 3185 authorizes the formula to take into
account a transportation provider's performance, the number of its riders,
the need of residents in its service area for public transportation,
population, population density, land area, and other factors established
by TTC.  

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Texas Transportation
Commission in SECTION 1 (Section 456.022, Transportation Code) of this
bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 456.022, Transportation Code, as follows:

Sec. 456.022.  New heading: FORMULA ALLOCATION.  Requires the Texas
Transportation Commission (TTC)  to adopt rules establishing a formula
allocating funds among individual eligible public transportation
providers.  Authorizes the formula to take into account a transportation
provider's performance, the number of its riders, the need of residents in
its service area for public transportation, population, population
density, land area, and other factors established by TTC.  Deletes text
referring to TTC's allocation of money under the formula program. 

SECTION 2.  Repealer: Section 456.024 (Distribution of Allocations),
Transportation Code. 

SECTION 3.  Effective date:  September 1, 2003.