BILL ANALYSIS

S.B. 276

By: Watson

Transportation

Committee Report (Unamended)

BACKGROUND AND PURPOSE

There has been concern about the efficiency of public transit in certain areas of the state such as North Central Texas and about the timeframe for implementing transportation projects in such areas. Interested parties cite Denton County Transportation Authority as an example that is currently unable to meet the growing demand for transit services beyond the limits of its existing member cities. These parties note that most cities within Denton County have adopted an economic development sales tax, are unable to increase local sales taxes, and do not have the long-term funding required to participate in the transportation authority as a member city. Observers have suggested that formation of a local government corporation could be a solution to this issue, enabling the authority to expand service to those cities in Denton County and at the same time protect the investments of the authority's legacy members. Under current law, however, neither a metropolitan rapid transit authority nor a coordinated county transportation authority is authorized to form such a corporation, unlike regional transportation authorities.  S.B. 276 seeks to empower certain transportation authorities to address these concerns through the creation of a local government corporation.   

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

S.B. 276 amends the Transportation Code to redefine "local government," for purposes of statutory provisions in the Texas Transportation Corporation Act relating to local government corporations, to include a rapid transit authority and a coordinated county transportation authority.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2013.