82R7192 VOO-F By: Scott H.B. No. 2881 A BILL TO BE ENTITLED AN ACT relating to state financing of public transportation. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 456.003, Transportation Code, is amended to read as follows: 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: (1) Chapter 453 or former Article 1118z, Revised Statutes, by a municipality having a population of less than 200,000; or (2) Chapter 451 or former Chapter 141 (S.B. 642), Acts of the 63rd Legislature, Regular Session, 1973 (Article 1118x, Vernon's Texas Civil Statutes), by a municipality having a population of less than 300,000. SECTION 2. Section 456.006(a), Transportation Code, is amended to read as follows: (a) A designated recipient that is a rural or urban transit district, [or] municipal transit department, or eligible transit authority may use money from the formula or discretionary program and any local funds for any transit-related activity. SECTION 3. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2011.