BILL ANALYSIS

 

 

 

S.B. 1371

By: Hinojosa, Juan "Chuy"

Transportation

Committee Report (Unamended)

 

 

 

BACKGROUND AND PURPOSE

 

Under current law, certain tax exemptions and governance rules for metropolitan rapid transit authorities are uniform across the state, with limited flexibility for smaller or mid-sized transit systems. However, not all authorities operate at the same scale. The bill sponsor has informed the committee that authorities in smaller municipalities may face operational and logistical challenges that differ from those in larger urban centers, including challenges relating to emergency refueling infrastructure, fare adjustments, and board service terms. S.B. 1371 provides targeted relief and flexibility to certain metropolitan rapid transit authorities by allowing emergency use of certain refueling stations without forfeiting fuel tax exemptions, streamlining the fare adjustment process, and clarifying how service time is calculated for board members who fill unexpired terms or serve abbreviated terms due to leadership appointments. Collectively, these changes aim to improve operational efficiency, ensure regulatory fairness, and support the unique needs of smaller transit authorities in Texas.

 

CRIMINAL JUSTICE IMPACT

 

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

 

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. 1371 amends the Tax Code to revise the provision establishing that the exemption from the  compressed natural gas (CNG) and liquified natural gas (LNG) tax for gas delivered into the fuel supply tank of certain motor vehicles used to provide the services of a transit company does not apply if the gas is delivered from a refueling facility that is accessible to motor vehicles other than those used to provide the services of a transit company. The bill expands the types of vehicles to which the refueling facility may be accessible without that exemption being affected to include motor vehicles that qualify for any of the other exemptions from the CNG and LNG tax if the following conditions apply:

·       the refueling facility is operated by a metropolitan rapid transit authority in which the principal municipality has a population of less than 320,000; and

·       the use of the refueling facility by those vehicles is limited to emergencies and other exigent circumstances as provided by an interlocal agreement under the Interlocal Cooperation Act.

 

S.B. 1371 amends the Transportation Code to revise the applicability of the statutory provision making the establishment of or a change to fares, tolls, charges, rents, and other compensation by a metropolitan rapid transit authority confirmed before July 1, 1985, in which the principal municipality has a population of less than 1.3 million effective immediately on approval by a majority vote of the authority's board, with a certain exception for the establishment of or a change to a single-ride base fare, by removing the criterion that the authority was confirmed before July 1, 1985.

 

S.B. 1371 establishes that, in determining the length of service of an individual serving on the board of a metropolitan rapid transit authority in which the principal municipality has a population of less than 320,000 for purposes of the statutory term limitations for such service, the following periods of service are excluded:

·       a period of service that results from the individual's appointment to fill an unexpired term that occurs before the individual's first appointment to a full term on the board; or

·       a period of service on the board that is attributable to a term shortened by the individual's appointment as the board's presiding officer.

 

EFFECTIVE DATE

 

On passage, or, if the bill does not receive the necessary vote, September 1, 2025.