By:  Hill                                                         H.B. No. 3185



A BILL TO BE ENTITLED

AN ACT

relating to the formula program for distribution of state grants to 
public transportation providers.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  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 allocating 
funds among individual eligible public transportation providers.  
The formula may 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 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.]
	SECTION 2.  Section 456.024, Transportation Code, is 
repealed.               
	SECTION 3.  This Act takes effect September 1, 2004.