CHAPTER 456. STATE FINANCING OF PUBLIC TRANSPORTATION
TRANSPORTATION CODE
TITLE 6. ROADWAYS
SUBTITLE K. MASS TRANSPORTATION
CHAPTER 456. STATE FINANCING OF PUBLIC TRANSPORTATION
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 456.001. DEFINITIONS. In this chapter:
(1) "Capital improvement" means the acquisition, construction,
or improvement of a facility, equipment, or real property for use
in public transportation service. The term includes designing,
engineering, supervising, inspecting, surveying, mapping,
relocation, right-of-way acquisition, housing replacement, and
other expenses incidental to the acquisition, construction, or
improvement.
(2) "Designated recipient" means an entity that receives money
from the United States or this state for public transportation
through the department or the Federal Transit Administration or
the administration's successor and is a transit authority, a
municipality not included in a transit authority, a local
governmental body, another political subdivision of this state,
or a nonprofit entity providing rural public transportation
service.
(3) "Federal-Aid Highway Act" means the Federal-Aid Highway Act
of 1973 (49 U.S.C. Section 1602a).
(4) "Federal Transit Act" means the Federal Transit Act (49
U.S.C. Section 5301 et seq.) and includes the Urban Mass
Transportation Act of 1964.
(5) "Federally financed project" means a public transportation
project that is partially financed under a program of the United
States for financing public transportation.
(6) "Local share requirement" means the amount of money required
of and available to a public transportation provider in this
state to match the amount available from the United States for a
federally financed project.
(7) "Operating expense" means an expense, including an
administrative expense, incurred in the daily operation of a
public transportation system.
(8) "Public transportation" means transportation of passengers
and their hand-carried packages or baggage on a regular or
continuing basis by means of surface or water, including fixed
guideway or underground transportation or transit, other than
aircraft, taxicab, ambulance, or emergency vehicle.
(9) "Ride-sharing activity" means transportation provided by a
vehicle equipped with rubber tires that carries 10 to 15
passengers.
(10) "State-financed project" means a project for which this
state provides partial financing under this chapter.
(11) "Transit authority" means a municipality or a metropolitan
or regional authority in an urbanized area of over 200,000
population with a local transit tax.
(12) "Urbanized area" means an area with a population of more
than 50,000 so designated by the United States Bureau of the
Census.
(13) "Nonurbanized area" means an area outside the boundaries of
an urbanized area and so designated by the United States Bureau
of the Census.
(14) "Local funds" include:
(A) passenger revenues, notwithstanding any statutory
requirement to apply that money to offset operating deficits;
(B) money from the purchase of service agreements, contract
income, advertising revenue, local tax receipts, and private
donations;
(C) money provided by a political subdivision of this state; and
(D) in-kind contributions.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.33(b), eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 588, Sec. 1, eff. June
2, 1997.
Sec. 456.002. ADMINISTRATION AND PURPOSE. (a) The commission
shall administer the formula and discretionary programs provided
by this chapter.
(b) Each public transportation program provided by this chapter,
except the passenger rail service assistance program under
Subchapter D, is a grant program for public transportation
projects. Approval by the United States of a proposed public
transportation project means that the project is consistent with
the purposes of this chapter and with the continuing,
cooperative, and comprehensive regional transportation planning
implemented in accordance with the Federal Transit Act and the
Federal-Aid Highway Act.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 110, Sec. 1, eff. May 16,
1997; Acts 1997, 75th Leg., ch. 165, Sec. 30.34(b), eff. Sept. 1,
1997.
Sec. 456.003. PARTICIPATION INELIGIBILITY. A transit authority
is ineligible to participate in the formula or discretionary
program provided by this chapter unless the authority was created
under Chapter 453 or former Article 1118z, Revised Statutes, by a
municipality having a population of less than 200,000.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 456.004. GENERAL FINANCING APPLICATION REQUIREMENTS. An
application for project financing under this chapter must be
certified and contain a statement by the applicant that the
proposed public transportation project is consistent with the
continuing, cooperative, and comprehensive regional
transportation planning implemented in accordance with the
Federal Transit Act and the Federal-Aid Highway Act.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.34(c), eff.
Sept. 1, 1997.
Sec. 456.005. EVALUATION OF PROJECT. In evaluating a project
under the formula or discretionary program, the commission shall
consider the need for fast, safe, efficient, and economical
public transportation and the approval of the Federal Transit
Administration, or its successor.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 456.006. USE OF FINANCING. (a) A designated recipient
that is a rural or urban transit district or municipal transit
department may use money from the formula or discretionary
program and any local funds for any transit-related activity.
(b) A designated recipient not included in a transit authority
but located in an urbanized area that includes one or more
transit authorities and that received state transit funding
during the biennium ending August 31, 1997, may receive money
from the formula or discretionary program in an amount that does
not exceed the amount of funds expended during that biennium to
provide:
(1) 65 percent of the local share requirement for a federally
financed capital improvement project;
(2) 50 percent of the local share requirement for a federally
financed project for operating expenses;
(3) 65 percent of the local share requirement for federally
financed planning activities; and
(4) 50 percent of the total cost of a public transportation
capital improvement project, if the designated recipient
certifies that money from the United States is unavailable for
the project and the commission determines that the project is
vitally important to the development of public transportation in
this state.
(c) In this section, "rural transit district" and "urban transit
district" have the meanings assigned by Section 1, Chapter 645,
Acts of the 74th Legislature, Regular Session, 1995 (Article
6663c-1, Vernon's Texas Civil Statutes).
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.34(d), eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 588, Sec. 2, eff. June
2, 1997.
Sec. 456.007. PUBLIC TRANSPORTATION ACCOUNT FUND; APPROPRIATIONS
AND GRANTS. (a) The public transportation account fund is an
account in the general revenue fund. A grant of money to the
state for public transportation purposes from a public or private
source shall be deposited to the credit of the public
transportation account fund. Money in the public transportation
account fund may be used only by the department to carry out the
responsibilities of the commission and the department for public
transportation under this chapter.
(b) The legislature may appropriate money for public
transportation purposes from the portion of the state highway
fund that is not dedicated by the constitution.
(c) A federal grant of transit money to the state for public
transportation purposes shall be deposited in the treasury to the
credit of the state highway fund. Federal transit grants for
public transportation purposes may be used only by the department
to carry out the responsibilities of the commission and the
department for public transportation under this chapter.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.34(e), eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 588, Sec. 3, eff. June
2, 1997.
Sec. 456.008. COMMISSION REPORT ON PUBLIC TRANSPORTATION
PROVIDERS. (a) The commission by rule shall prepare and issue a
report on the performance of public transportation providers in
this state that received state or federal funding during the
previous 12-month period. The commission shall issue a report
under this section at least once each state fiscal year.
(b) The commission shall establish a performance-based reporting
system for all public transportation providers. The commission
may establish different performance measures for different
sectors of the transit industry. The performance measures shall
assess the efficiency, effectiveness, and safety of the public
transportation providers.
(c) The commission shall submit copies of each report issued
under this section to the budget and planning division of the
governor's office and the Legislative Budget Board not later than
November 1 of the year following the period covered in the
report.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Amended by Acts 1999, 76th Leg., ch. 873, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER B. FORMULA PROGRAM
Sec. 456.021. BIENNIAL ALLOCATION. (a) The commission shall
allocate to urban, urbanized, and rural areas under the formula
program provided by this subchapter the amount appropriated from
all sources to the commission each state fiscal biennium for
public transportation, other than money from the United States
and amounts specifically appropriated for coordination, technical
support, or other administrative costs.
(b) The commission shall make the allocation at the beginning of
each state fiscal biennium.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 456.022. FORMULA ALLOCATION. 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.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.34(f), eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 588, Sec. 4, eff. June
2, 1997; Acts 2003, 78th Leg., ch. 312, Sec. 79(a), eff. Sept. 1,
2004.
Sec. 456.023. APPLICATION; USE OF MONEY NOT APPLIED FOR. (a) A
designated recipient may submit an application to the commission
for financing of a project under the formula program.
(b) The commission shall administer under the discretionary
program provided by Subchapter C any money that a designated
recipient under the formula program has not applied for before
the November commission meeting in the second year of a biennium.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 456.026. REPORTING BY DESIGNATED RECIPIENTS. The
commission by rule shall establish a performance-based reporting
system for all designated recipients eligible for financing under
the formula program.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
SUBCHAPTER C. DISCRETIONARY PROGRAM
Sec. 456.041. PROJECT FINANCING APPLICATION BY DESIGNATED
RECIPIENT. (a) To participate in the discretionary program
provided by this subchapter, a designated recipient must submit
to the commission an application for project financing. The
application must contain:
(1) a description of the project, including an estimate of the
population that the project would benefit and the anticipated
completion date of the project;
(2) a statement of the estimated cost of the project, including
an estimate of the portion of the cost of the project financed by
the United States; and
(3) the certification required by Section 456.006(b)(4).
(b) After the commission receives an application under this
section, the commission shall approve or deny the application and
notify the applicant in writing of its decision.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.34(g), eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 588, Sec. 6, eff. June
2, 1997.
Sec. 456.042. RIDE-SHARING ACTIVITIES. (a) A designated
recipient or a local government that has the power to operate a
public transportation system, directly or by contract, in an
urbanized or rural area may apply to the commission and receive
money from the discretionary program for a capital expenditure to
operate a ride-sharing activity.
(b) The commission shall provide 80 percent of the cost of
capital expenditures for a ride-sharing activity of a project it
approves under this section.
(c) An applicant for financing of a ride-sharing activity must
certify that:
(1) money is available to provide 20 percent of the cost of the
capital expenditure;
(2) the equipment the applicant provides for the ride-sharing
activity will be used primarily for commuting purposes;
(3) the ride-sharing activity will be operated without state
operating subsidies and under procedures required by Subsection
(d); and
(4) any financing available from the United States Department of
Transportation to supplement state and locally financed capital
expenditures for ride-sharing activities will be applied for and
used for the replacement of van pool equipment in the manner
required by Subsections (e) and (f).
(d) A recipient of money under this section must establish
procedures to purchase van pool equipment that are satisfactory
to the state and ensure that the equipment is operated for
commuter purposes as a nonprofit activity in the manner required
by Subsection (e).
(e) A recipient of money under this section must deposit all
revenue in excess of operating expenses that is derived from the
use of state-financed van pool equipment in a contingency reserve
account designated for use in the replacement of state-financed
van pool equipment at the end of the useful life of the
equipment.
(f) The state financial interest in the purchase of replacement
van pool equipment is based:
(1) on the ratio that money from the contingency reserve account
that is used in the purchase of replacement equipment bears to
the total price of the equipment; and
(2) on the ratio that state money bears to the total price of
the equipment being replaced.
(g) A recipient of money under this section shall return to the
state the portion of any remaining money in the contingency
reserve account when ride-sharing activities using state-financed
van pool equipment cease that represents the ratio of
state-to-local financing under the activities.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
SUBCHAPTER D. PASSENGER RAIL SERVICE ASSISTANCE PROGRAM
Sec. 456.061. DEFINITION. In this subchapter, "eligible
corporation" means a corporation created under former Subchapter
III, Chapter 14, Title 45, United States Code (now 49 U.S.C.
Sections 24101 et seq. and 24301 et seq.).
Added by Acts 1997, 75th Leg., ch. 110, Sec. 2, eff. May 16,
1997.
Sec. 456.062. LOANS TO CORPORATION. (a) Under the authority of
Section 52-a, Article III, Texas Constitution, and from funds
appropriated from the general revenue fund for this purpose, the
commission may loan money to an eligible corporation that
provides rail passenger service in the state.
(b) Notwithstanding any other statutory restriction, the portion
of the state highway fund not dedicated by the constitution is
collateral for repayment of a loan made under this section. The
comptroller may transfer from that portion of the state highway
fund to the general revenue fund the amount needed to repay any
unpaid balance on the loan, including applicable interest, in
accordance with the loan agreement.
Added by Acts 1997, 75th Leg., ch. 110, Sec. 2, eff. May 16,
1997.
Sec. 456.063. AGREEMENT. The department, on behalf of the
commission and with the approval of the comptroller, shall enter
into an agreement, under terms and conditions the department
considers appropriate, with an eligible corporation for the
purposes of making a secured loan under this subchapter. The
agreement must provide for collateralization and guaranties in a
form and amount determined by the comptroller and the commission
to be sufficient to repay to the state highway fund any money
transferred to the general revenue fund under Section 456.062(b).
Added by Acts 1997, 75th Leg., ch. 110, Sec. 2, eff. May 16,
1997.
Sec. 456.064. LIMITATION OF FUNDING. The commission may only
expend funds specifically appropriated by the legislature for the
purposes of this subchapter.
Added by Acts 1997, 75th Leg., ch. 110, Sec. 2, eff. May 16,
1997.
Sec. 456.065. GUARANTEE FROM MUNICIPALITIES. The department, on
behalf of the commission and with the approval of the
comptroller, shall secure an agreement or agreements with the
municipalities served by an eligible corporation that receives
assistance under this subchapter to further guarantee the
repayment of half of any unpaid balance on a loan, including
interest, made under this subchapter.
Added by Acts 1997, 75th Leg., ch. 110, Sec. 2, eff. May 16,
1997.