Relating to the operation of certain metropolitan transit authorities.

BILL ANALYSIS

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

S.B. 1371 makes several changes to existing laws governing the metropolitan transit authority (MTA) in Corpus Christi, focusing on fuel tax exemptions, fare and toll adjustments, and board member term limits.

Public transit plays a crucial role in disaster response, particularly in communities like Corpus Christi, which are vulnerable to hurricanes and tropical storms. Transit services facilitate evacuations, assist individuals with special needs, and help restore normal operations after severe weather events. Maintaining a diverse fuel fleet, including compressed natural gas (CNG) and liquefied natural gas (LNG) vehicles, is essential for these efforts. In 2015, the Texas Legislature exempted transit authorities from fuel taxes on CNG and LNG, provided the fueling facilities were exclusively owned and operated by the authority. S.B. 1371 expands this exemption by allowing the Corpus Christi Regional Transportation Authority (CCRTA) to provide fuel to other governmental entities during emergencies, ensuring a more coordinated emergency response.

In addition, S.B. 1371 streamlines CCRTA's fare adjustment process and clarifies board member term limits. Currently, CCRTA must obtain committee approval from the city and county for fare changes, unlike some MTAs that follow a simpler process under Section 451.061 of the Transportation Code. A provision limiting eligibility to MTAs established before July 1, 1985, excludes CCRTA, founded on August 10, 1985. S.B. 1371 removes this restriction, allowing CCRTA to adopt fare changes without going to the joint committee for approval.

Lastly, the bill also addresses the CCRTA board. The CCRTA has eight-year limits; counting partial terms has led to unfilled positions. S.B. 1371 ensures CCRTA board members can serve four full two-year terms without partial terms affecting eligibility, preventing appointment delays and governance disruptions.

As proposed, S.B. 1371 amends current law relating to the operation of certain metropolitan transit authorities.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 162.356(b), Tax Code, as follows:

(b) Provides that the exemption provided by Subsection (a)(11) (relating to providing that the tax imposed does not apply to compressed natural gas or liquefied natural gas delivered into the fuel supply tank of a motor vehicle) does not apply to compressed natural gas or liquefied natural gas delivered into the fuel supply tank of a motor vehicle from a refueling facility accessible to motor vehicles other than:

(1) motor vehicles described by Subsection (a)(11)(A) (relating to providing that the tax imposed does not apply to certain gas delivered into the fuel supply tank of a motor vehicle used to provide the services of a transit company or a regional transportation authority); or

(2) motor vehicles exempt from the tax imposed by Subchapter D-1 (Compressed Natural Gas and Liquefied Natural Gas Tax) under another provision of Subsection (a) (relating to providing that the tax imposed does not apply to certain natural gas delivered into the fuel supply tank), if the:

(A) refueling facility is operated by a metropolitan rapid transit authority operating under Chapter 451 (Metropolitan Rapid Transit Authorities), Transportation Code, in which the principal municipality has a population of less than 320,000; and

(B) use of the refueling facility by those vehicles is limited to emergencies and other exigent circumstances as provided by an interlocal agreement under Chapter 791 (Interlocal Cooperation Contracts), Government Code.

SECTION 2. Amends Section 451.061(d-1), Transportation Code, to delete existing text limiting the immediate effect of the establishment of or a change to fares, tolls, charges, rents, and other compensation by an authority to those authorities confirmed before July 1, 1985.

SECTION 3. Amends Section 451.506, Transportation Code, by adding Subsection (b-1), as follows:

(b-1) Provides that this subsection applies only to an individual serving on the board of an authority in which the principal municipality has a population of less than 320,000. Provides that for the purposes of Subsection (b) (relating to prohibiting an individual from serving more than eight years on the same board and from being appointed to a term which would exceed this limitation), in determining the length of service on the board of an individual to whom this subsection applies the following periods of service are excluded:

(1) 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

(2) 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 under Section 451.502(e) (relating to providing that in an authority having six additional members, the additional members are appointed by certain means).

SECTION 4. Effective date: upon passage or September 1, 2025.