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	SECTION 1.  Section 228.012(b), Transportation Code, is 
amended to read as follows:
	(b)  The department shall hold money in a subaccount in trust 
for the benefit of the region in which a project or system is 
located and may, after any necessary consultation with the 
metropolitan planning organization, council of governments or a 
similar planning agency for the region, enter into an agreement or 
agreements with the municipalities, counties or local governmental 
entities in the region for the distribution of money to such 
entities in such region that are authorized to construct, maintain, 
or operate projects that are eligible for funding with that 
money.assign the responsibility for allocating money in a 
subaccount to a metropolitan planning organization in which the 
region is located.  Except as provided by Subsection (c), money 
shall be allocated to projects authorized by Section 228.0055 or 
Section 228.006, as applicable.