H.B. 3185 78(R)    BILL ANALYSIS


H.B. 3185
By: Hill
Transportation
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

The purpose of this bill is to provide for changes in the formula program
for distribution of state grants to public transportation providers.   

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 be rigid and to perpetuate the historical allocation of funds at
the expense of efficiency and increased service.  In addition, although
Section 456.026, Transportation Code, requires the Texas Transportation
Commission (commission) to administer a performance-based reporting
system, the existing system fails to incorporate performance as a relevant
factor in the allocation of funding.  As a result, the commission 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. 

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly
granted to the Texas Transportation Commission in SECTION 1 (Section
456.022 , Transportation Code) of this bill. 

ANALYSIS

SECTION 1. Amends Chapter 456, Transportation Code, as follows:

Sec. 456.022.  FORMULA ALLOCATION.  Provides that the commission shall
adopt rules establishing a formula for allocating funds among eligible
public transportation providers. 

SECTION 2.  Repeals Section 456.024, Transportation Code.

EFFECTIVE DATE

Upon passage, or, if the Act does not receive the necessary vote, the Act
takes effect September 1, 2003