BILL ANALYSIS

H.B. 578

By: Guillen

Transportation

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Some observers are concerned that state law currently does not account for funding for an urban transit district that is not included in the 2000 federal decennial census.  H.B. 578 seeks to address this issue and promote growth by allowing more funding for public transportation in smaller urban transit districts.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 578 amends the Transportation Code to authorize an urban transit district that was not included in an urbanized area containing a transit authority according to the 2000 federal decennial census but, as a result of the 2010 federal decennial census urban and rural classification, is included in an urbanized area that contains one or more transit authorities to receive money from the state transit funding formula or discretionary program in an amount that does not exceed the amount of funds allocated to the district during the fiscal biennium ending August 31, 2011. The bill establishes that the population of a municipality that was considered part of an urban transit district for purposes of the state transit funding formula for the fiscal biennium ending August 31, 2011, but that is included in a large urbanized area as a result of the 2010 federal decennial census, continues to be considered part of the urban transit district for purposes of the state transit funding formula. The bill requires the Texas Transportation Commission to consider as an urban transit district for purposes of the state transit funding formula a designated recipient that has received money under the formula as an urban transit district for the fiscal biennium ending August 31, 2011, has a population according to the most recent decennial census of less than 50,000, and has a population loss over the preceding 10-year period that is primarily the result of natural disaster. The bill makes these provisions expire on August 31, 2018.

H.B. 578 specifies that the population cap relating to a transit authority's ineligibility to participate in the state transit funding formula unless the authority is created as a municipal transit department applies at the time the authority is created.

EFFECTIVE DATE

September 1, 2011.