Part 1.
TEXAS DEPARTMENT OF TRANSPORTATION
Chapter 17.
VEHICLE TITLES AND REGISTRATION
Subchapter A. MOTOR VEHICLE CERTIFICATES OF TITLE
43 TAC §§17.2, 17.3, 17.8
The Texas Department of Transportation adopts amendments
to §17.2, §17.3, and §17.8 concerning motor vehicle certificates
of title. The amendments to §17.2 are adopted without changes to the
text as proposed by publication in the November 10, 2000, issue of the
EXPLANATION OF ADOPTED AMENDMENTS
The current procedures for processing an application for a certified copy
of an original Texas certificate of title (CCO) do not ensure that the identity
and authority of applicants can be verified. These amendments will allow the
department to require verifiable proof from the owner, lienholder, or agent
applying for a CCO. In addition, the amendments revise several definitions
that currently follow outdated language originally based on a prior version
of the Certificate of Title Act; these definitions are updated to reflect
the language found in the recodified version of Transportation Code, Chapter
501. Throughout these sections, additional nonsubstantive changes are made
to enhance readability, clarity, and consistency, to improve grammar and spelling,
and to correct references and cross-references.
Section 17.2(31) is reworded to follow the definition of "motor vehicle"
now found in Transportation Code, §501.002(14).
Section 17.2(56) is reworded to follow the definition of "subsequent sale"
now found in Transportation Code, §501.002(20).
Section 17.2(61) is added to define "verifiable proof." This new term is
used in establishing the required additional documentation that must be submitted
with an application for a certified copy of a certificate of title or for
a certified copy of a salvage or nonrepairable certificate of title.
The definition of "verifiable proof" is broken into three parts to specify
the documentation required of an individual owner or lienholder, a business
owner or lienholder, and a person relying on a power of attorney. For an individual
owner or lienholder, "verifiable proof" consists of a copy of valid state
or US-issued photo identification. For a business owner or lienholder, "verifiable
proof" consists of a letter of signature authority on original letterhead,
an actual business card, or a copy of employee identification and a copy of
a valid state or US-issued photo identification. For a person relying on a
power of attorney, "verifiable proof" consists of the appropriate documentation
for the owner or lienholder executing the power of attorney in addition to
that of the person relying on the power of attorney.
This definition of "verifiable proof" is intended to place more stringent
requirements on applicants for certified copies and thus to reduce the likelihood
of fraud. The definition balances this need for greater security against the
need for ease of administration with regard both to applications submitted
in person and to those submitted through the mail.
Section 17.3(c)(2)(B) is relocated to Subsection (c)(5) because rights
of survivorship apply to all motor vehicles and not just to used motor vehicles.
Section 17.3(e)(1) is amended to require that an application for a certified
copy be supported with verifiable proof and to specify the procedures available
to an unsuccessful applicant.
Section 17.3(e)(4) is amended to clarify the procedures that are followed
when an original title is recovered after a certified copy has already been
issued. These procedures are specified in Transportation Code, §501.134.
Section 17.8(d) is amended to require the submission of verifiable proof
in support of an application for a certified copy of a salvage or nonrepairable
certificate of title.
RESPONSE TO COMMENTS
Written comments were received from the Insurance Auto Auctions (IAA) and
the Tarrant County Auto Theft Task Force. The commenters did not indicate
whether they were in favor of or against the proposed amendments.
Comment: IAA commented on the §17.2(61)(C) definition of "verifiable
proof." In connection with total loss settlements by insurers, IAA noted that
insureds and claimants may lose titles to vehicles. At present, IAA will obtain
a power of attorney from the insured or claimant so that it may apply for
a certified copy of the title. If the vehicle owner is an individual, the
proposed amendments require that in addition to the power of attorney from
the owner, IAA would need a copy of the owner's photo identification. Since
insureds and claimants may refuse to provide copies of their driver's licenses,
this additional requirement will delay insurers in obtaining titles for many
total loss vehicles. The potential for fraud in a total loss context is so
remote that insurers should be exempted from the "verifiable proof" requirement.
Response: The Transportation Code does not provide insurers with a blanket
exemption from the requirement of verifiable proof, and the department believes
that insurers will be able to structure their relations with their insureds
and claimants to deal with this problem.
Comment: Regarding §17.2(61)(A) and (B), IAA asked if the exclusion
of photo identification issued by other states is intended.
Response: The rule follows the language of the Transportation Code.
Comment: Regarding §17.8(a)(1)(C), IAA noted that the reference to
subsection (b)(2)(A),(B), or (C) should instead be to subsection (b)(2)(A),(B),
or (D).
Response: The department agrees that a numbering error was made and will
correct this cross-reference.
Comment: Regarding §17.8, IAA suggests that the removal of "state
or" from the phrase "state or jurisdiction" be made consistently so no implication
arises that "state or jurisdiction" includes something that "jurisdiction"
does not.
Response: The department agrees and the suggested changes will be made
for consistency and to prevent confusion.
Comment: Regarding §17.8(c)(1)(B), IAA commented that Transportation
Code, §501.0920 requires that "the nonrepairable motor vehicle certificate
must state on its face that, except as provided by §501.0925 and §501.0927
. . . ." The reference to §501.0925 was omitted from §17.8(c)(1)(B).
Response: The department agrees and has revised §17.8(c)(1)(B) to
read "§501.0925 and §501.0927."
Comment: Regarding Section 17.8(d), IAA suggested that the reference to §17.3(e)(1)(A)
would be more accurate if it were simply to §17.3(e).
Response: The department agrees with the suggestion and has corrected this
cross-reference.
Comment: The Tarrant County Auto Theft Task Force indicated that the majority
of suspect CCO applications referred to them involved agents or third parties
and were submitted by mail. Therefore, it expressed confusion that §17.3(e)(1)(A)(ii)
provides, "An applicant other than the vehicle owner, lienholder, or verified
agent must apply for a certified copy of a certificate of title by mail."
Response: The rule follows the language of the Transportation Code.
Comment: Concerning §17.3(e)(1)(A), which states that "an application
for certified copy must be properly executed and supported by appropriate
verifiable proof for the vehicle owner, lienholder, or agent," the Tarrant
County Auto Theft Task Force expressed concern that striking the examples
of verifiable proof will not help the situation, but possibly compound it.
Response: To eliminate any possibility of confusion about the requirement
that verifiable proof be submitted with all applications, the department has
revised §17.3(e)(1)(A) to add "regardless of whether the application
is submitted in person or by mail" after the word "agent."
STATUTORY AUTHORITY
The amendments are adopted under Transportation Code, §201.101, which
provides the Texas Transportation Commission with the authority to establish
rules for the conduct of the work of the Texas Department of Transportation,
and more specifically, Transportation Code, §501.131, which authorizes
the department to adopt rules governing the issuance of motor vehicle certificates
of title.
§17.3.Motor Vehicle Certificates of Title.
(a)
Certificates of title. Unless otherwise exempted by law
or this chapter, the owner of any vehicle that is required to be registered
in accordance with Transportation Code, Chapter 502, shall apply for a Texas
certificate of title in accordance with Transportation Code, Chapter 501.
(1)
Motorcycles, motor-driven cycles, and mopeds.
(A)
The title requirements of a motorcycle are the same requirements
prescribed for any motor vehicle.
(B)
A motorcycle, motor-driven cycle, or moped designed for
or used exclusively on golf courses is not classified as a motor vehicle and,
therefore, title cannot be issued until the unit is registered.
(C)
A vehicle that meets the criteria for a moped and has been
certified as a moped by the Department of Public Safety will be registered
and titled as a moped. If the vehicle does not appear on the list of certified
mopeds published by that agency, the vehicle will be treated as a motorcycle
for title and registration purposes.
(D)
A motor installed on a bicycle must be certified by the
Department of Public Safety before the vehicle may be classified as a moped.
(2)
Farm vehicles.
(A)
The term motor vehicle does not apply to implements of
husbandry, which may not be titled.
(B)
Farm tractors owned by agencies exempt from registration
fees in accordance with Transportation Code, §502.202, are required to
be titled and registered with "Exempt" license plates issued in accordance
with Transportation Code, §502.201.
(C)
Farm tractors used as road tractors to mow rights of way
or used to move commodities over the highway for hire are required to be registered
and titled.
(3)
Exemptions from title. Vehicles registered with the following
distinguishing license plates may not be titled under Transportation Code,
Chapter 501:
(A)
vehicles eligible for machinery license plates in accordance
with Transportation Code, §502.276 and §502.278;
(B)
vehicles eligible for farm trailer license plates in accordance
with Transportation Code, §502.163; and
(C)
vehicles eligible for permit license plates in accordance
with Transportation Code, §§502.351-502.353.
(4)
Trailers, semitrailers, and house trailers. Owners of trailers
and semitrailers shall apply for and receive a Texas certificate of title
for any stand alone (full) trailer, including homemade full trailers, having
an empty weight in excess of 4,000 pounds or any semitrailer having a gross
weight in excess of 4,000 pounds. House trailer-type vehicles must meet the
criteria outlined in subparagraph (C) of this paragraph in order to be titled.
(A)
In the absence of a manufacturer's rated carrying capacity
for a trailer or semitrailer, the rated carrying capacity will not be less
than one-third of its empty weight.
(B)
Mobile office trailers, mobile oil field laboratories,
and mobile oil field bunkhouses are not designed as dwellings, but are classified
as commercial semitrailers and must be registered and titled as commercial
semitrailers if operated upon the public streets and highways.
(C)
House trailer-type vehicles and camper trailers must meet
the following criteria in order to be titled.
(i)
A house trailer-type vehicle designed for living quarters
and that is eight body feet or more in width or forty body feet or more in
length (not including the hitch), is classified as a mobile home and is titled
under the Texas Manufactured Housing Standards Act, Texas Civil Statutes,
Article 5221f, administered by the Department of Housing and Community Affairs.
(ii)
A house trailer-type vehicle that is less than eight feet
in width and less than forty feet in length is classified as a travel trailer
and shall be registered and titled.
(iii)
A camper trailer shall be titled as a house trailer and
shall be registered with travel trailer license plates.
(b)
Initial application for certificate of title.
(1)
Place of application. When motor vehicle ownership is transferred,
except as provided by Transportation Code, Chapters 501 and 502 and by §17.8(a)(1)
of this subchapter, a certificate of title application must be filed with
the county tax assessor-collector in the county in which the applicant resides
or in the county in which the motor vehicle was purchased or encumbered, within
20 working days of the date of sale.
(2)
Information to be included on application. An applicant
for an initial certificate of title must file an application on a form prescribed
by the department. The form will at a minimum require the:
(A)
motor vehicle description including, but not limited to,
the motor vehicle's:
(i)
year;
(ii)
make;
(iii)
model;
(iv)
identification number;
(v)
body style;
(vi)
manufacturer's rated carrying capacity in tons for commercial
motor vehicles; and
(vii)
empty weight;
(B)
license plate number, if the motor vehicle is subject to
registration under Transportation Code, Chapter 502;
(C)
the odometer reading and brand, or the word "exempt" if
the motor vehicle is exempt from federal and state odometer disclosure requirements;
(D)
previous owner's name and city and state of residence;
(E)
name and complete address of the applicant;
(F)
name and mailing address of any lienholder and the date
of lien, if applicable;
(G)
signature of the seller of the motor vehicle or the seller's
authorized agent and the date the certificate of title application was signed;
(H)
signature of the applicant or the applicant's authorized
agent and the date the certificate of title application was signed; and
(I)
applicant's social security number, if the application
is filed in a county in which the department's automated registration and
title system has been implemented, with the following exceptions:
(i)
an application filed in the name of an entity that does
not have a social security number, or
(ii)
an individual applicant who does not have a social security
number, in which case the applicant must execute a statement to that effect
on a form prescribed by the department.
(3)
Serial number. If no serial number is die-stamped by the
manufacturer on a motor vehicle, house trailer, trailer, semi-trailer, or
item of equipment required to be titled, or if the serial number assigned
and die-stamped by the manufacturer has been lost, removed, or obliterated,
the department will upon proper application, presentation of evidence of ownership,
and presentation of evidence of a law enforcement physical inspection, assign
a serial number to the motor vehicle, trailer, or equipment. The manufacturer's
serial number or the assigned serial number will be used by the department
as the major identification of the motor vehicle or trailer in the issuance
of a certificate of title.
(4)
Accompanying documentation. The certificate of title application
must be supported by, at a minimum, the following documents:
(A)
evidence of vehicle ownership, as described in subsection
(c) of this section;
(B)
an odometer disclosure statement properly executed by the
seller of the motor vehicle and acknowledged by the purchaser, if applicable;
(C)
the identification certificate required by Transportation
Code, §548.256, and Transportation Code, §501.030, if the vehicle
was last registered in another state or country; and
(D)
a release of any liens, provided that if any liens are
not released, they will be carried forward on the new certificate of title
application with the following limitations.
(i)
An out-of-state lien recorded on out-of-state evidence
as described in subsection (c) of this section cannot be carried forward to
a Texas title when there is a transfer of ownership, unless a release of lien
or authorization from the lienholder is attached.
(ii)
A lien recorded on out-of-state evidence as described
in subsection (c) of this section is not required to be released when there
is no transfer of ownership from an out-of-state title and the same lienholder
is being recorded on the Texas application as is recorded on the out-of-state
title.
(c)
Evidence of motor vehicle ownership. Evidence of motor
vehicle ownership properly assigned to the applicant must accompany the certificate
of title application. Evidence must include, but is not limited to, the following
documents.
(1)
New motor vehicles. A manufacturer's certificate of origin
assigned by the manufacturer or the manufacturer's representative or distributor
to the original purchaser is required for a new motor vehicle that is sold
or offered for sale.
(A)
The manufacturer's certificate of origin must be in the
form prescribed by the division director and must contain, at a minimum, the
following information:
(i)
motor vehicle description including, but not limited to,
the motor vehicle's year, make, model, identification number, body style and
empty weight;
(ii)
the manufacturer's rated carrying capacity in tons when
the manufacturer's certificate of origin is invoiced to a licensed Texas motor
vehicle dealer and is issued for commercial motor vehicles as that term is
defined in Transportation Code, Chapter 502; and
(iii)
a statement identifying a motor vehicle designed by the
manufacturer for off-highway use only.
(B)
When a motor vehicle manufactured in another country is
sold directly to a person other than a manufacturer's representative or distributor,
the manufacturer's certificate of origin must be assigned to the purchaser
by the importer.
(2)
Used motor vehicles. A certificate of title issued by
the department, a certificate of title issued by another state if the motor
vehicle was last registered and titled in another state, or other evidence
of ownership must be relinquished in support of the certificate of title application
for any used motor vehicle. A letter of Title and Registration verification
is required from a vehicle owner coming from a state that no longer titles
vehicles after a certain period of time.
(3)
Imported motor vehicles. An application for certificate
of title for a motor vehicle last registered or titled in a foreign country
must be supported by documents including, but not limited to, the following:
(A)
the motor vehicle registration certificate or other verification
issued by a foreign country reflecting the name of the applicant as the motor
vehicle owner, or reflecting that legal evidence of ownership has been legally
assigned to the applicant; and
(B)
for motor vehicles that are less than 25 years old, proof
of compliance with United States Department of Transportation (USDOT) regulations,
including, but not limited to, the following documents:
(i)
the original bond release letter with all attachments advising
that the motor vehicle meets federal motor vehicle safety requirements or
a letter issued by the USDOT, National Highway Traffic Safety Administration,
verifying the issuance of the original bond release letter;
(ii)
a legible copy of the motor vehicle importation form validated
with an original United States Customs stamp, date, and signature as filed
with the USDOT confirming the exemption from the bond release letter required
in clause (i) of this subparagraph, or a copy thereof certified by United
States Customs;
(iii)
a verification of motor vehicle inspection by United
States Customs certified on its letterhead and signed by its agent verifying
that the motor vehicle complies with USDOT regulations;
(iv)
a written confirmation that a physical inspection of the
safety certification label has been made by the department and that the motor
vehicle meets United States motor vehicle safety standards;
(v)
the original bond release letter, verification thereof,
or written confirmation from the previous state verifying that a bond release
letter issued by the USDOT was relinquished to that jurisdiction, if the non
United States standard motor vehicle was last titled or registered in another
state for one year or less; or
(vi)
verification from the vehicle manufacturer on its letterhead
stationary.
(4)
Alterations to documentation. An alteration to a registration
receipt, certificate of title, manufacturer's certificate, or other evidence
of ownership constitutes valid reason for the rejection of any transaction
to which altered evidence is attached.
(A)
Altered lien information on any surrendered evidence of
ownership requires a release from the original lienholder or a statement from
the proper authority of the state in which the lien originated. The statement
must verify the correct lien information.
(B)
A strikeover that leaves any doubt about the legibility
of any digit in any document will not be accepted.
(C)
A corrected manufacturer's certificate of origin will be
required if the manufacturer's certificate of origin contains an:
(i)
incomplete or altered vehicle identification number;
(ii)
alteration or strikeover of the vehicle's year model;
(iii)
alteration or strikeover to the body style, or omitted
body style on the manufacturer's certificate of origin; or
(iv)
alteration or strikeover to the manufacturer's rated carrying
capacity.
(D)
A Statement of Fact may be requested to explain errors,
corrections, or conditions from which doubt does or could arise concerning
the legality of any instrument. A Statement of Fact will be required in all
cases:
(i)
where the date of sale on an assignment has been erased
or altered in any manner; or
(ii)
of alteration or erasure on a Dealer's Reassignment of
Title.
(5)
Rights of survivorship. A signed "rights of survivorship"
agreement may be executed by a natural person acting in an individual capacity
in accordance with Transportation Code, §501.031.
(d)
Certificate of title issuance. Upon receiving a completed
application for certificate of title, along with the title application fee
of $13 and any other applicable fees, the department or its designated agent
will process and issue a certificate of title.
(1)
Negotiable titles. The department will issue and mail or
deliver negotiable titles, marked "Original," to the applicant or, in the
event that there is a lien disclosed in the application, to the first lienholder.
(2)
Non-negotiable titles. The department will issue non-negotiable
titles, which may be used only as evidence of title and may not be used to
transfer any interest or ownership in a motor vehicle or to establish a new
lien, in the following circumstances.
(A)
In the event that there is a lien disclosed in the application,
a duplicate certificate of title marked "Duplicate Original" will be mailed
or delivered to the address of the applicant as disclosed upon the application.
(B)
In the event that the owner of a vehicle last registered
or titled in another state (and subject to registration in this state) cannot
or does not wish to relinquish the negotiable out-of-state evidence of ownership
to obtain a negotiable Texas title, a duplicate certificate of title marked
"Registration Purposes Only" will be mailed or delivered to the address of
the applicant as disclosed upon the application. In instances in which the
title or registration receipt is assigned to the applicant, an application
for "Registration Purposes Only" will not be processed.
(e)
Replacement of certificate of title. If a certificate of
title is lost or destroyed, the department will issue a certified copy of
the title to the owner, the lienholder, or a verified agent of the owner or
lienholder in accordance with Transportation Code, Chapter 501, upon proper
application and payment of the appropriate fee to the department.
(1)
Certified copy.
(A)
Issuance. An application for a certified copy must be properly
executed and supported by appropriate verifiable proof for the vehicle owner,
lienholder, or agent regardless of whether the application is submitted in
person or by mail.
(i)
If the applicant requests that a certified copy be issued
before the fourth business day following application, the application must
be made in person.
(ii)
An applicant other than the vehicle owner, lienholder,
or verified agent must apply for a certified copy of a certificate of title
by mail.
(B)
Denial. If issuance of a certified copy is denied, the
applicant may resubmit the request with the required verifiable proof or may
pursue the privileges available in subsection (g)(2)(A) and (B) of this section.
(2)
Certified copy designation. A certified copy of an existing
certificate of title will be marked "Certified Copy" until ownership of the
vehicle is transferred, when the words "Certified Copy" will be eliminated
from the new certificate of title.
(3)
Fees. The fee for obtaining a certified copy of a certificate
of title is $2.00 if the application is processed at the department's headquarters
office and $5.45 if the application is processed at one of the department's
regional offices.
(4)
Recovery of lost title. In the event that the "Duplicate
Original" or "Original" certificate of title is recovered, the owner shall
relinquish the "Duplicate Original" or "Original" certificate of title to
the department for cancellation. Thereafter, if a subsequent application for
certificate of title is filed in the current owner's name, the department
will issue an "Original" certificate of title.
(f)
Department notification of second hand vehicle transfers.
A transferor of a motor vehicle may voluntarily make written notification
to the department of the sale of the vehicle, in accordance with Transportation
Code, Chapter 520, Subchapter C, and this subsection.
(1)
Notification form. The department will provide a form for
written notice of transfer. The form will include the:
(A)
vehicle identification number of the vehicle;
(B)
license plate number issued to the vehicle, if any;
(C)
full name and address of the transferor;
(D)
full name and address of the transferee;
(E)
date the transferor delivered possession of the vehicle
to the transferee;
(F)
signature of the transferor; and
(G)
date the transferor signed the form.
(2)
Records. Upon receipt of written notice of transfer and
a $5.00 fee from the transferor of a motor vehicle, the department will mark
its records to indicate the date of transfer and the full name and address
of the transferee.
(3)
Ownership of transferred vehicle. After the date of the
transfer of the vehicle as shown in the department records, the transferee
of the vehicle is rebuttably presumed to be:
(A)
the owner of the vehicle; and
(B)
subject to civil and criminal liability arising out of
the use, operation, or abandonment of the vehicle, to the extent that ownership
of the vehicle subjects the owner of the vehicle to criminal or civil liability
under another provision of the law.
(4)
Certificate of title issuance. A certificate of title will
not be issued in the name of a transferee until the transferee files an application
for the certificate of title as described in this section.
(g)
Suspension, revocation, or refusal to issue Certificates
of Title.
(1)
Grounds for title suspension, revocation, or refusal to
issue. The department will refuse issuance of a certificate of title, or having
issued a certificate of title, will suspend or revoke the certificate of title
if the:
(A)
application contains any false or fraudulent statement;
(B)
applicant has failed to furnish required information requested
by the department;
(C)
applicant is not entitled to the issuance of a certificate
of title under Transportation Code, Chapter 501;
(D)
department has reasonable grounds to believe that the vehicle
is a stolen or converted vehicle or that the issuance of a certificate of
title would constitute a fraud against the rightful owner or a mortgagee;
(E)
registration of the vehicle stands suspended or revoked;
or
(F)
required fee has not been paid.
(2)
Contested case procedure. Any person who has an interest
in a motor vehicle to which the department has refused to issue a certificate
of title or has suspended or revoked the certificate of title may contest
the department's decision in accordance with Transportation Code, §501.052
and §501.053, in the following manner.
(A)
Hearing. Any person who has an interest in a motor vehicle
to which the department has refused to issue a certificate of title or has
suspended or revoked the certificate of title may apply for a hearing to the
designated agent of the county in which the applicant resides. At the hearing
the applicant and the department may submit evidence, and a ruling of the
designated agent will bind both parties. An applicant wishing to appeal the
ruling of the designated agent may do so to the County Court of the county
in which the applicant resides.
(B)
Alternative to hearing. In lieu of a hearing, any person
who has an interest in a motor vehicle to which the department has refused
to issue a certificate of title or has suspended or revoked a certificate
of title may file a bond with the department, in an amount equal to one and
one-half times the value of the vehicle as determined by the department, and
in a form prescribed by the department. Upon the filing of the bond, the department
may issue a certificate of title. The bond shall expire three years after
the date it becomes effective and will be returned to the person posting bond,
upon expiration, unless the department has been notified of the pendency of
an action to recover on the bond.
(h)
Discharge of lien. A lienholder shall provide the owner,
or the owner's designee, a discharge of the lien after receipt of the final
payment within the time limits specified in Transportation Code, Chapter 501.
The lienholder shall submit one of the following documents:
(1)
the certificate of title including an authorized signature
in the space reserved for release of lien;
(2)
a release of lien form prescribed by the department, with
the form filled out to include the:
(A)
certificate of title or document number, or a description
of the motor vehicle including, but not limited to, the motor vehicle's:
(i)
year;
(ii)
make;
(iii)
vehicle identification number; and
(iv)
license plate number, if the motor vehicle is subject
to registration under Transportation Code, Chapter 502;
(B)
printed name of lienholder;
(C)
signature of lienholder or an authorized agent;
(D)
printed name of the authorized agent if the agent's signature
is shown;
(E)
telephone number of lienholder; and
(F)
date signed by the lienholder;
(3)
signed and dated correspondence submitted on company letterhead
that includes:
(A)
a statement that the lien has been paid;
(B)
a description of the vehicle as indicated in paragraph
(2)(A) of this subsection;
(C)
a certificate of title or document number; or
(D)
lien information;
(4)
any out-of-state prescribed release of lien form, including
an executed release on a lien entry form;
(5)
out-of-state evidence with the word "Paid" or "Lien Satisfied"
stamped or written in longhand on the face, followed by the name of the lienholder,
countersigned or initialed by an agent, and dated; or
(6)
original security agreements or copies of the original
security agreements if the originals or copies are stamped "Paid" or "Lien
Satisfied" with a company paid stamp or if they contain a statement in longhand
that the lien has been paid followed by the company's name.
§17.8.Certificates of Title for Salvage Vehicles.
(a)
Certificate of title applications for salvage vehicles.
(1)
Place of application.
(A)
When a new or late model salvage motor vehicle or nonrepairable
motor vehicle has not been issued a salvage motor vehicle certificate of title,
a nonrepairable motor vehicle certificate of title, or a comparable ownership
document issued by another jurisdiction, and the vehicle will not be dismantled,
scrapped, or destroyed, a person who acquires ownership shall submit a salvage
and nonrepairable motor vehicle certificate of title application to the department
along with the applicable fee within 10 days of receiving the title document
that transfers ownership.
(B)
A person who acquires ownership of a motor vehicle other
than a new or late model salvage motor vehicle or a nonrepairable motor vehicle
may voluntarily submit a salvage and nonrepairable motor vehicle certificate
of title application to the department along with the applicable fee for issuance
of a salvage or nonrepairable motor vehicle certificate of title.
(C)
When a new or late model salvage or nonrepairable motor
vehicle has been rebuilt and the vehicle's and parts' identification numbers,
as well as compliance with state safety standards, have been certified to
by a specially trained commissioned officer of the Department of Public Safety,
the owner shall file a certificate of title application with the county tax
assessor-collector in the county in which the applicant resides or in the
county in which the motor vehicle was purchased or encumbered. The application
must be supported by the evidence required by subsection (b)(2)(A), (B), or
(D) of this section.
(2)
Information to be included on application.
(A)
An applicant for a salvage or nonrepairable motor vehicle
certificate of title must submit an application on a form prescribed by the
department. A completed form, in addition to any other information required
by the department, must at a minimum include:
(i)
the name and current address of the owner;
(ii)
a description of the vehicle, including the motor vehicle's
model year, make, model, identification number, body style, manufacturer's
rated carrying capacity in tons for commercial motor vehicles, and empty weight;
(iii)
a description of the damage to the vehicle;
(iv)
the predamaged actual cash value of the vehicle;
(v)
the odometer reading and brand, or the word "exempt" if
the motor vehicle is exempt from federal and state odometer disclosure requirements;
(vi)
the previous owner's name and city and state of residence;
(vii)
the name and mailing address of any lienholder and the
date of lien (applicable only in instances of salvage motor vehicle certificate
of title issuance);
(viii)
the signature of the applicant or the applicant's authorized
agent and the date the certificate of title application was signed; and
(ix)
the adjusted estimated cost of repair parts and labor.
(I)
In this clause the estimated cost of repair parts shall
be determined by using a manual of repair costs or another instrument that
is generally recognized and commonly used in the motor vehicle insurance industry
to determine those costs, or an estimate of the actual cost of the repair
parts and the estimated labor costs shall be computed by using hourly rate
and time allocations that are reasonable and commonly assessed in the repair
industry in the community in which the repairs are performed.
(II)
The adjusted estimated cost of repairs is equal to the
estimated cost of repairs, less any applicable deductions for late model salvage
vehicles or nonrepairable motor vehicles.
(B)
An applicant for a certificate of title involving a transaction
for a rebuilt salvage motor vehicle must submit an application on a form prescribed
by the department, and must present the application to the tax assessor-collector
in the county in which the applicant resides or in the county in which the
motor vehicle was purchased or encumbered. A completed form, in addition to
any other information required by the department, must at a minimum include:
(i)
the name and current address of the owner;
(ii)
a description of the vehicle, which includes, but is not
limited to, the motor vehicle's model year, make, model, identification number,
body style, manufacturer's rated carrying capacity in tons for commercial
motor vehicles, and empty weight;
(iii)
a description of each major component part used to repair
the vehicle and showing the identification number required by federal law
to be affixed to or inscribed on the part;
(iv)
a description or disclosure of the vehicle's former condition
in a manner that is understandable to a potential purchaser of the vehicle;
(v)
the license plate number, if the motor vehicle is subject
to registration under Transportation Code, Chapter 502;
(vi)
the odometer reading and brand, or the word "exempt" if
the motor vehicle is exempt from federal and state odometer disclosure requirements;
(vii)
the previous owner's name and city and state of residence;
(viii)
the name and mailing address of any lienholder and the
date of lien, if applicable;
(ix)
the signature of the seller of the motor vehicle or the
seller's authorized agent and the date the certificate of title application
was signed; and
(x)
the signature of the applicant or the applicant's authorized
agent and the date the certificate of title application was signed.
(3)
Accompanying documentation.
(A)
A salvage and nonrepairable motor vehicle certificate of
title application must be supported by, at a minimum, the following documents:
(i)
evidence of vehicle ownership, as described in subsection
(b)(1) of this section;
(ii)
an odometer disclosure statement properly executed by
the seller of the motor vehicle and acknowledged by the purchaser, if applicable;
(iii)
a release of any liens.
(B)
The application for certificate of title for a rebuilt
salvage vehicle must be supported by, at a minimum, the following documents:
(i)
evidence of vehicle ownership, as described in subsection
(b)(2) of this section;
(ii)
an odometer disclosure statement properly executed by
the seller of the motor vehicle and acknowledged by the purchaser, if applicable;
(iii)
proof of financial responsibility in the title applicant's
name, as required by Transportation Code, §502.153;
(iv)
the identification certificate required by Transportation
Code, §548.256, and Transportation Code, §501.030, if the vehicle
was last registered in another state or country;
(v)
a release of any liens, unless there is no transfer of
ownership from an out-of-state title and the same lienholder is being recorded
on the Texas application as is recorded on the out-of-state title, and except
that if a lien recorded on out-of-state evidence is not released and transfer
is not authorized by the lienholder, the lien will not be carried forward
to a Texas title for a rebuilt salvage vehicle when there is a transfer of
ownership; and
(vi)
a written statement signed by a specially trained commissioned
officer of the Department of Public Safety certifying to the department that
the vehicle identification numbers and parts identification numbers are accurate,
that the applicant has proof that the applicant owns the parts used to repair
the vehicle, that the vehicle can be safely operated, and that the vehicle
complies with all applicable motor vehicle safety standards of this state,
except that Texas Salvage Certificates or comparable Salvage Certificates
or Salvage Certificates of Title issued by another jurisdiction prior to March
1, 1996, are exempt from this requirement if an affidavit for a rebuilt motor
vehicle, as prescribed by the department, is submitted with the application
for certificate of title and the rebuilt salvage vehicle complies with all
applicable motor vehicle safety standards of this state.
(b)
Evidence of salvage motor vehicle ownership.
(1)
Evidence of salvage motor vehicle ownership properly assigned
to the applicant must accompany the salvage and nonrepairable motor vehicle
certificate of title application. Evidence must include documentation sufficient
to show ownership, such as one of the following documents:
(A)
an Original Texas Certificate of Title;
(B)
a Certified Texas Certificate of Title;
(C)
a Texas Salvage Certificate; or
(D)
a comparable ownership document issued by another jurisdiction.
(2)
Evidence of motor vehicle ownership of a rebuilt salvage
vehicle must be properly assigned to the applicant and must accompany the
certificate of title application. Evidence must include one of the following
documents:
(A)
a Texas Salvage Motor Vehicle Certificate of Title;
(B)
a Texas Nonrepairable Motor Vehicle Certificate of Title;
(C)
a Texas Salvage Certificate; or
(D)
a comparable Salvage Certificate or Salvage Certificate
of Title issued by another jurisdiction, except that this ownership document
will not be accepted if it indicates that the vehicle may not be rebuilt in
the jurisdiction that issued the ownership document.
(c)
Certificate of title issuance for salvage vehicles.
(1)
Upon receipt of a completed salvage and nonrepairable motor
vehicle certificate of title application, along with the prescribed fee of
$3.00 and the required documentation, the department will, before the sixth
business day after the date of receipt, issue the applicant a salvage or nonrepairable
motor vehicle certificate of title, as appropriate. If the condition of salvage
is caused exclusively by flood, a "Flood Damage" notation will be reflected
on the face of the document and will be carried forward upon subsequent title
issuance.
(A)
Transportation Code, §501.0921(a), provides that a
person who holds a salvage motor vehicle certificate of title is entitled
to record a lien on the vehicle. If a salvage and nonrepairable motor vehicle
certificate of title application records a lien, the lien is only applicable
with the issuance of a salvage motor vehicle certificate of title. Presentation
of the application disclosing the lien and surrender of the current salvage
motor vehicle certificate of title, along with the applicable fee, to the
department will constitute the notation of a lien on a salvage motor vehicle
certificate of title. When a salvage motor vehicle certificate of title recording
a lien is issued, the original will be mailed to the lienholder. For proof
of ownership purposes, the applicant will be mailed a receipt or printout
of the newly established motor vehicle record, which will record the lien.
(B)
A nonrepairable motor vehicle certificate of title will
state on its face that, except as provided by Transportation Code, §501.0925
and §501.0927, the vehicle:
(i)
may not be issued a regular certificate of title and may
not be registered in this state; and
(ii)
may only be used for parts or scrap metal.
(2)
Upon receiving a completed certificate of title application
for a rebuilt salvage transaction, along with the applicable fees and required
documentation, the department or its designated agent will process and issue
a certificate of title that will include a "Rebuilt Salvage" remark on its
face and describes or discloses the vehicle's former condition in a manner
that is understandable to a potential purchaser of the vehicle. If the application
is for a new or late model salvage vehicle that has been assembled from component
parts or a new or late model salvage vehicle for which a Texas Salvage Certificate
is being surrendered, only the "Rebuilt Salvage" remark will be reflected
on the face of the certificate of title.
(3)
On proper application by the owner of a vehicle that is
brought into this state from another jurisdiction and for which a certificate
of title issued by the other jurisdiction contains a "Rebuilt," "Salvage,"
"Nonrepairable," or analogous notation, the department will issue the applicant
a certificate of title or other appropriate document for the vehicle. A certificate
of title or other appropriate document issued under this subsection will show
on its face:
(A)
the date of issuance;
(B)
the name and address of the owner;
(C)
any registration number assigned to the vehicle;
(D)
a description of the vehicle as determined by the department;
and
(E)
any notation the department considers necessary or appropriate.
(d)
Replacement of certificates of title for salvage vehicles.
If a salvage or nonrepairable certificate of title is lost, the department
will issue a certified copy of the certificate of title to the vehicle owner,
lienholder, or verifiable agent on submission of verifiable proof and payment
of the appropriate fee as provided in §17.3(e). An application for a
certified copy of a salvage and nonrepairable certificate of title will only
be processed at the department's Austin Headquarters Office. The certified
copy will contain the words "Certified Copy" and the date issued. The motor
vehicle record will be noted accordingly until ownership of the vehicle is
transferred, when the notation will be eliminated from the new certificate
of title.
(e)
Transfer of ownership.
(1)
New or late model salvage motor vehicles.
(A)
Transfer of a salvage or nonrepairable motor vehicle without
a salvage or nonrepairable motor vehicle certificate of title. A person who
owns a new or late model salvage motor vehicle may not sell, transfer, or
release the vehicle to a person other than a salvage vehicle dealer, the former
owner of the vehicle, a governmental entity, an out-of-state licensed buyer,
a buyer in a casual sale at auction, or a person described by Texas Civil
Statutes, Article 6687-2b(g), and shall deliver to that person a properly
assigned certificate of title for the vehicle. If the assigned certificate
of title is not a salvage motor vehicle certificate of title, a nonrepairable
motor vehicle certificate of title, or a comparable ownership document issued
by another jurisdiction, the purchaser shall follow the procedures described
in subsections (a)(1)(A), (a)(2)(A), (a)(3)(A), and (b)(1) of this section.
(B)
Transfer of a salvage or nonrepairable motor vehicle by
assignment of a salvage or nonrepairable motor vehicle certificate of title.
An owner, including an insurance company, may sell a new or late model salvage
motor vehicle by assignment of a salvage or nonrepairable motor vehicle certificate
of title for the vehicle only to a salvage vehicle dealer in this state, an
out-of-state licensed buyer, a buyer in a casual sale at auction, or a person
described by Texas Civil Statutes, Article 6687-2b(g).
(C)
Exemption. The owner of a new or late model salvage motor
vehicle or a nonrepairable motor vehicle so classified solely because of water
damage caused by flood conditions is not prohibited from selling the vehicle
to any person.
(2)
Motor vehicle other than a new or late model salvage or
nonrepairable motor vehicle.
(A)
If an insurance company acquires ownership of a motor vehicle
other than a new or late model salvage or nonrepairable motor vehicle through
payment of a claim, the company shall, on delivery of the vehicle to a buyer
of the vehicle, deliver to the buyer a properly assigned certificate of title
for the vehicle.
(B)
An insurance company or other person who acquires ownership
of a motor vehicle other than a new or late model salvage or nonrepairable
motor vehicle may voluntarily and upon proper application obtain a salvage
or nonrepairable motor vehicle certificate of title.
(f)
Notification required of an insurance company. When an
insurance company pays a total loss claim on a late model salvage or nonrepairable
motor vehicle and does not acquire ownership of that vehicle, the company
shall submit to the department, before the 31st day after the date of the
payment of the claim, on the form prescribed by the department, a report stating
that:
(1)
the insurance company has paid a total loss claim on the
late model salvage motor vehicle or nonrepairable motor vehicle; and
(2)
the insurance company has not acquired ownership of the
late model salvage motor vehicle or nonrepairable motor vehicle.
(g)
Noting of motor vehicle record with total loss claim information.
Upon receipt of the report described in subsection (f) of this section, the
department will place an appropriate notation on the motor vehicle record
to prevent transfer of ownership prior to the issuance of a salvage or nonrepairable
motor vehicle certificate of title.
(h)
Acquisition of salvage vehicles for the purpose of dismantling,
scrapping, or destruction.
(1)
A salvage vehicle dealer that acquires ownership of a new
or late model salvage or nonrepairable motor vehicle for the purpose of dismantling,
scrapping, or destruction shall, before the 31st day after the date the dealer
acquires the vehicle, submit to the department, on the form prescribed by
the department, a report stating that the vehicle will be dismantled, scrapped,
or destroyed, accompanied by a properly assigned regular certificate of title,
a salvage or nonrepairable motor vehicle certificate of title, or a comparable
ownership document issued by another jurisdiction for the vehicle.
(2)
A salvage vehicle dealer that acquires an older model vehicle
for the purpose of dismantling, scrapping, or destruction shall submit the
report addressed in paragraph (1) of this subsection and shall keep on the
dealer's business premises a record of the vehicle until the third anniversary
of the date the report on the vehicle is submitted to the department.
(i)
Receipt of the report and the ownership documents by the
department. On receipt of the report and the ownership documents, the department
will issue the salvage vehicle dealer a receipt.
(j)
Noting of motor vehicle records on which ownership documents
have been surrendered to the department. The department will place an appropriate
notation on motor vehicle records on which ownership documents have been surrendered
to the department by salvage vehicle dealers.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on January 26, 2001.
TRD-200100451
Richard D. Monroe
General Counsel
Texas Department of Transportation
Effective date: February 15, 2001
Proposal publication date: November 10, 2000
For further information, please call: (512) 463-8630
43 TAC §17.51
The Texas Department of Transportation adopts amendments
to §17.51, concerning registration reciprocity agreements. The amendments
are adopted without changes to the text as proposed by publication in the
November 10, 2000, issue of the
Texas Register
(25 TexReg 11267), and will not be republished.
EXPLANATION OF ADOPTED AMENDMENTS
The International Registration Plan (IRP) is a registration reciprocity
agreement among states of the United States and Canada. (Mexico may also join
in the near future.) The department has previously adopted by reference the
International Registration Plan with Official Commentary. The amended section
provides for the adoption by reference of the most recent edition of the International
Registration Plan published August 22, 1994 and revised in 1999. Recent changes
to this document, including changes associated with the implementation of
the "audit netting" program, have necessitated that the department's administrative
rules be revised as well. The "audit netting" program is a program under which
audit refunds and assessments are "netted," which reduces jurisdictional costs
and errors associated with IRP audits. Implementation of the "audit netting"
program requires that, if an audit results in a refund being due to a carrier
for another jurisdiction, Texas must issue the refund on behalf of the other
jurisdiction; however, any refund issued to a carrier for a jurisdiction will
be deducted from registration funds collected and transmitted to that same
jurisdiction. The department has also determined that certain information
contained in §17.51 is unnecessary because the information is already
clearly set forth in Transportation Code, Chapter 502. Additionally, certain
information is no longer necessary because the jurisdictions to which the
information previously applied are now members of the IRP. Finally, some changes
have been made throughout the section to enhance readability and clarity,
to improve grammar and spelling, and to correct references and cross-references.
Subsection (a) is amended to correct a cross-reference.
Subsection (b) is amended to add definitions previously located in subsection
(c)(2)(C). This collects all definitions in one subsection for ease of reference.
Subsection (c)(2)(B) is amended to correct the name and address of the
Vehicle Titles and Registration Division.
Existing subsection (c)(2)(C) is eliminated. Three definitions relate to
terms that are used in this section and are moved to subsection (b) for clarity.
The remaining definitions relate only to terms that are used in the IRP or
in other definitions within this subparagraph. The following subsections are
renumbered to reflect the deletion of existing subsection (c)(2)(C).
Renumbered subsection (c)(2)(F)(ii) is eliminated because the jurisdictions
to which it applied are now members of the IRP.
Renumbered subsection (c)(2)(G)(v) is eliminated because the department
no longer assesses additional registration fees if an audit reveals mileage
generated in a jurisdiction in which the carrier does not wish to be apportioned
for the next year. Clause (vi) is renumbered as clause (iv) and is amended
to eliminate the $10 minimum assessment because it is no longer needed due
to implementation of the "audit netting" program.
Renumbered subsection (c)(2)(H) is amended to bring the rules into compliance
with IRP guidelines. The $10 minimum refund is eliminated because it is no
longer needed due to implementation of the "audit netting" program. Language
is added to permit the department to refund fees for other jurisdictions.
Language is also added to reflect that any registration fees refunded to a
carrier for another jurisdiction will be deducted from registration fees collected
for and transmitted to that jurisdiction.
Renumbered subsection (c)(2)(J) is amended to reflect that a notice will
be sent to a registrant if an audit reveals that the registrant should be
assessed additional registration fees. Previously, the rules required a notice
only if the registrant's privileges and plates were canceled. Additionally,
the subsection is amended to allow a registrant 30 days from the date of a
notice of assessment or cancellation to request a conference.
Subsection (d) is eliminated in its entirety because the information is
already clearly set forth in Transportation Code, Chapter 502.
COMMENTS
No comments were received on the proposed amendments.
STATUTORY AUTHORITY
The amendments are adopted under Transportation Code, §201.101, which
provides the Texas Transportation Commission with the authority to establish
rules for the conduct of the work of the Texas Department of Transportation,
and more specifically, Transportation Code, §502.0021, which authorizes
the department to adopt rules governing the issuance of motor vehicle registration.
The amendments are also adopted under Transportation Code, §502.054,
which authorizes the department to enter into agreements with duly authorized
officials of other jurisdictions, including any state of the United States,
the District of Columbia, a state or province of a foreign country, or a territory
or possession of either the United States or of a foreign country, or to provide
for the registration of vehicles by Texas residents and nonresidents on an
allocation or mileage apportionment basis, or to grant exemptions from the
payment of registration fees by nonresidents provided such grants are reciprocal
to Texas residents.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on January 26, 2001.
TRD-200100458
Richard D. Monroe
General Counsel
Texas Department of Transportation
Effective date: February 15, 2001
Proposal publication date: November 10, 2000
For further information, please call: (512) 463-8630
The Texas Department of Transportation adopts new §31.22 and
amendments to §§31.1-31.3, §31.11, §31.13, §31.16, §31.21, §31.26, §31.31, §31.36, §31.37, §§31.42-31.44, §31.48, §31.53, §31.57, §31.61,
and §31.65, concerning public transportation. The amendments to §§31.1-31.3, §31.11, §31.13, §31.21, §31.26, §31.36, §31.37, §31.42, §31.48, §31.53, §31.57, §31.61,
and §31.65 and new section §31.22 are adopted without changes to
the text as proposed by publication in the October 13, 2000, issue of the
EXPLANATION OF ADOPTED AMENDMENTS AND NEW SECTION
In 1996 the department underwent a federal triennial review, which resulted
in several changes in the department's administration of the various federal
programs. The amendments incorporate these changes in rules. House Bill 1980,
76th Legislature, 1999, amended Transportation Code, §456.008, to remove
statutory performance measures and to direct the commission to develop new
performance measures. The amendments respond to this directive by establishing
new performance measures. The department has also decided to revamp the administration
of the Section 5310 grant program serving elderly persons and persons with
disabilities to encourage more public input in the selection of projects.
Changes in language have been made to enhance readability and clarity,
to improve grammar, and to correct cross-references. The amendments also update
citations to federal law to reflect its codification and modify terminology
to reflect the latest federal guidance. These changes are both non-substantive
and pervasive, and therefore they have not been separately addressed in each
instance in which they occur.
Section 31.2 is amended to add rail safety oversight to the duties of the
department in accordance with Transportation Code, §455.005.
Section 31.3 is amended to add new definitions, to clarify and expand existing
definitions, and to conform definitions more closely to existing practice,
federal standards, and state law.
The definition of "accident" is amended to create a general definition
applicable to all non-rail accidents. The previous definition, applicable
only to rail fixed guideways, has been renamed "rail accident."
Existing subsections (5) and (6) are eliminated to reflect changes in the
department's organizational structure.
A definition is added for "average revenue vehicle capacity," a component
in the definition of "vehicle utilization."
The term "Deputy executive director" is defined to reflect changes in the
department's organizational structure.
New paragraph (19) is added to define "fatality," a component in the definition
of "accident."
New paragraph (24) is added to define "incident," a component in the definitions
of "accident," "fatality," and "injury."
New paragraph (26) is added to define "injury," a component in the definitions
of "accident," "incident," and "rail accident."
New paragraph (33) is added to define "MPO," a shorthand form for Metropolitan
Planning Organization, to facilitate references throughout the chapter.
Paragraph (38) is amended to clarify and expand the scope of the term "operating
expenses."
New paragraph (42) is added to define "rail accident." The definition is
the same as the existing definition of "accident."
New paragraph (46) is added to define "revenue vehicle," a component in
the definitions of "average revenue vehicle capacity," "incident," and "vehicle
utilization."
New paragraph (47) is added to define "revenue service," a component in
the definitions of "rail accident," "vehicle miles," and "vehicle revenue
hours or miles."
New paragraph (55) is added to define "stakeholders," a concept used to
encourage more public input into the selection of projects for the Section
5310 program serving elderly persons and persons with disabilities.
New paragraph (56) is added to define "subrecipient." This term is now
used in federal regulations to refer to a person previously known as a "contractor."
New paragraph (60) is added to define "unlinked passenger trips," a concept
used in new reporting requirements for cost effectiveness and service effectiveness.
Paragraph (61) is amended to clarify and expand "urban transit district"
to match the definition in Transportation Code, §458.001.
New paragraph (63) is added to define "vehicle miles," a concept used in
new reporting requirements for cost efficiency, service efficiency, and service
effectiveness.
New paragraph (64) is added to define "vehicle revenue hours or miles,"
a concept used in new reporting requirements for service efficiency and service
effectiveness.
New paragraph (65) is added to define "vehicle utilization," a concept
used in new reporting requirements for service efficiency.
Section 31.11 is amended to eliminate existing reporting requirements.
House Bill 1980, 76th Legislature, 1999, amended Transportation Code §456.008,
by removing statutory performance measures. Figure: 43 TAC §31.11(b)(1)(B)
has been added to enhance readability and clarity. Section 31.11(f) has therefore
been deleted. Reporting requirements will now be set forth in §31.48(b).
Section 31.16 is amended to conform to the pattern of the rule sections
dealing with other grant programs. These amendments conform to current practice.
Subsections (c) and (d) are added to clarify the department's role in administering
the Section 5309 grant program and the federal requirements for local match.
Section 31.21 is amended to conform to the pattern of the rule sections
dealing with other grant programs. These amendments conform to current practice.
Subsections (a) and (b) are amended to conform more closely to federal
requirements concerning administration of the Section 5303 grant program.
Subsections (c) and (d) are added to clarify the department's role in administering
the Section 5309 grant program and the federal requirements for local match.
New §31.22 is added to provide guidance concerning the Section 5313
grant program, which currently is not addressed in the rules. The new rule
conforms to the pattern of the rule sections dealing with other grant programs
and identifies the purpose, eligible recipients, and local share requirements
mandated by federal regulations. The new section follows the department's
current practice.
Section 31.31 is amended to provide for greater local participation in
the selection of projects for the Section 5310 grant program for elderly persons
and persons with disabilities.
Subsection (b)(2) is added to state the department's objective of promoting
and encouraging greater local participation in decisions regarding the Section
5310 grant program.
Subsection (c)(2) is added to establish the department's role in ensuring
input from local entities and individuals.
Subsection 31.31(d) is amended to provide that the primary recipient of
funds will be local metropolitan transit authorities and rural and urban transit
districts for their respective service areas and to provide for an alternative
recipient in areas not served by those entities. Secondary recipients of funds
will continue to be local public bodies, and subsection d) is also amended
to provide examples of local public bodies that would be eligible as ultimate
recipients of Section 5310 funds and to ensure that these local public bodies
must be approved by the department. These changes are intended to foster decentralized
decision-making and broaden local participation in the selection process.
Subsection (i), paragraph (1) is amended and paragraph (2) is deleted to
provide that in all cases, the department's districts will select projects
in priority order from the list of projects developed by the districts with
substantial local participation.
Subsection (j) is amended to create a new local planning and development
process. This new process is carefully crafted to maximize local participation
in the selection process for projects and is designed to be implemented through
a three-year plan, which will be updated annually. This process will identify
local transportation needs and available local transportation resources and
generate a plan for meeting those needs. Each department district will submit
an annual report setting forth that district's plan and the process used in
establishing it.
Subsection (m) is amended to clarify that vehicles purchased under the
Section 5310 grant program cannot be altered to accommodate meal deliveries.
This clarification is consistent with federal law and current practice.
Section 31.36 is amended to correct an oversight in the existing rule,
to clarify eligible capital costs under the Section 5311 grant program, and
to update various references to percentages.
Subsection (d) is amended to provide that for-profit transit operators
may receive Section 5311 funds under the intercity bus program. This amendment
brings the language of this section into conformity with federal law and current
practice.
Subsection (e)(2) is amended to bring these allowable costs into conformity
with federal law and current practice.
Subsection (g) is amended to eliminate obsolete references to percentages
that have expired.
Section 31.37 is amended to eliminate references to an advisory committee
that no longer exists.
Subsection (d) is amended to delete references to the Transit Operators'
Advisory Committee, a departmental advisory committee that was abolished in
recent amendments to 43 TAC §1.85. Also deleted are references to ad
hoc advisory committees, also abolished in the recent amendments to 43 TAC §1.85.
Section 31.42 is amended to identify the specific federal programs administered
by the department and the specific federal laws applicable to grant recipients.
Section 31.43 is amended to require that subrecipients notify the department
in advance of purchases which require competitive procurement as outlined
in the State's Government Code and Local Government Code, and to prevent purchases
from being split to evade this requirement. This will allow the department
to fulfill its federal and state oversight responsibilities and to take preventive
action before a potential violation becomes actual. A $15,000 limit has been
set for those entities to which the department may grant dollars, but are
not covered by the Government Code or Local Government Code.
Section 31.44 is amended to conform bidding requirements to current practice
and to enhance the department's role in overseeing subrecipients of grant
funds.
Existing subsection (b)(1) is eliminated so that subrecipients may purchase
vehicles below the statutory threshold without using formal competitive bidding.
Subsection (b) is amended to set a limit, which corresponds to the state
requirement for formal competitive bidding. A $15,000 limit has been set for
those entities to which the department may grant dollars, but are not covered
by the state requirement.
Subsection (c) is amended to require that subrecipients notify the department
in advance of pending large purchases and to prevent purchases from being
split to evade this requirement. This will allow the department to fulfill
its federal and state oversight responsibilities and to take preventive action
before a potential violation becomes actual.
Section 31.48 is amended to establish reporting requirements and performance
standards for subrecipients. These reporting requirements are in response
to the directive of House Bill 1980, 76th Legislature, 1999, amending Transportation
Code, §456.008, which requires the commission to develop new performance
measures for transit operators.
Subsection (b) is amended to provide for nine categories of reports that
must be filed by subrecipients of grant funds. These categories include accident
reports, asset inventory reports, charter service reports, reports on Disadvantaged
Business Enterprises and Historically Underutilized Businesses, operations
reports, reports on performance goals and management objectives, reports on
significant events, rail transit agency reports, and miscellaneous reports.
Of these, the only new requirement is the accident report. This report will
comply with the department's responsibility to oversee federal assets and
with expected federal requirements for bus safety. Under existing federal
and state regulations, the department is already requiring all the other reports
listed in this subsection.
Subsection (b) is also amended to renumber and rearrange the various reports
that are already required. Asset inventory reports were formerly listed as
Biennial inventory. The provision for operations reports now includes revised
language formerly found in subsection 31.11(f) and incorporates requirements
of the former quarterly report. The report on significant events is relocated
to item number 7, and miscellaneous reports are reworded and relocated to
item number 9. Survey forms are unnecessary because the information previously
gathered under this report is now collected under other required reports.
Subsection (b)(5)(A) and (B) set out the performance standards for recipients
of Section 5307 and Section 5311 funds. The performance standards measure
service efficiency, cost effectiveness, service effectiveness, and safety,
but apply different measures of these qualities to recipients of the two programs.
These performance measures were chosen because they contain elements that
are readily available, that are already collected by the department, or that
are already being reported to the National Transit Database. Different measures
are used for urban and rural operators because urban operators already collect
more-detailed information.
Subsection (c) is amended to reflect current practice and federal requirements
that were implemented following the department's federal triennial review
in 1996.
Section 31.53 is amended to establish a consistent maintenance program
for subrecipients receiving federal funds through the department for the procurement
of equipment. The department's federal triennial review of 1996 included the
absence of a maintenance program, and these changes are made in response to
that federal mandate.
Section 31.57 is amended to eliminate an invalid reference and to add language
reflecting the department's role in providing instructions concerning the
disposition of property.
Subsection (d) is amended to delete the section's restriction to real property
and equipment in which the department has an interest as 50% of a nonfederally-assisted
capital improvement. This restriction is invalid because all property and
equipment acquired with federal or state funds is subject to the department's
regulations on disposition. In addition, language has been added to clarify
the department's role in providing disposition instructions.
Subsection (d)(2)(C) has been added to require record-keeping when proceeds
from a sale of property will later be devoted to federal public transportation
purposes. The new language conforms to the latest edition of federal program
guidance.
Section 31.61 is amended to clarify the reporting requirements of rail
transit agencies. Initial reports of accidents and unacceptable hazardous
conditions can now be filed by facsimile, and a summary report is now due
monthly. These changes are expected to facilitate reporting by rail transit
agencies.
Section 31.65 is amended to conform to current practice, to eliminate obsolete
time references, to clarify the reporting requirements of newly started rail
transit agencies, and to clarify the due date for the safety report described
in §31.61(c).
RESPONSE TO COMMENTS
The Public Transportation Advisory Committee preliminarily reviewed the
proposed rules on August 18, 2000, and offered advice and recommendations.
The Public Transportation Advisory Committee finally reviewed and commented
on the proposed rules on December 15, 2000.
A public hearing was held on October 30, 2000. Two oral comments were received:
one from the Texas Taxicab Association, and the other from American Red Cross
(Greater Houston Area Chapter), Harris County Transportation Coordination
Council, and the Area Planning Advisory Council of the Area Agency on Aging
(Houston Area). The department received written comments from Sexton Enterprises
(representing Texas Taxicab Association), American Red Cross (Greater Houston
Area Chapter), City of Wichita Falls, City of Grand Prairie, United Way of
Texas Gulf Coast, Texas Transit Association, Sun Metro in El Paso, and Houston
METRO.
Comment: The Texas Taxicab Association expressed concern about the use
of tax dollars to transport the general public without specific wording to
protect for-profit transportation providers. A recommendation was made to
include language specifying that no 5307, 5310, or 5311 funds will be spent
in a manner that will damage or destroy for-profit transportation providers.
Response: With regard to Section 5307, funding received under this program
is dispensed and administered by the Federal Transit Administration directly
to the eligible recipients. The department withholds comment concerning the
administration of funds under this program. Concerning Section 5310 and 5311,
the department appreciates the resources of the private industry and lists
the involvement of the private sector under the goals and objectives of the
respective programs in §31.31(b)(5) and §31.36(b)(4). Furthermore,
subrecipients of federal funds from the Section 5310 and 5311 programs have
specific requirements that subrecipients must address in the areas of labor
protection and public hearings. Subrecipient compliance with these specific
regulations must be demonstrated in the application to the department. Lastly,
the revisions to the Section 5310 process to utilize a planning and development
process provide an excellent opportunity for private sector companies to participate
in transportation planning in their respective areas. Therefore, the recommended
language is unnecessary.
Comment: American Red Cross, Harris County Transportation Coordination
Council, and the Area Planning Advisory Council of the Area Agency on Aging
(Houston Area) expressed belief that passengers will suffer if the proposed
amendments are accepted. They recommended that the rules be amended to state
that all providers of public transportation who are currently primary recipients
of 5310 funding, including non-profit organizations, are eligible as primary
recipients.
Response: Since the commenter did not specifically detail items in the
proposed rules that would cause passengers to suffer, the department recognizes
this as an opinion and will therefore refrain from response. Concerning the
recommendation that current recipients of Section 5310 funding be included
as the primary recipients, the department fully appreciates the work and value
offered by the current Section 5310 providers and therefore provides an option
for alternative primary recipients to be selected when the existing rural
and urban transit districts and metropolitan transit authorities are unable
or unwilling to provide transportation under the Section 5310 program. Economies
of scale and coordination will be realized by channeling the funds through
legislatively established transit districts and authorities either to provide
the service or to subcontract to secondary recipients (which may include American
Red Cross and other current Section 5310 transportation providers). This should
provide for increased transportation by employing efficient local decisions
and input on the provision of service.
Comment: American Red Cross, Harris County Transportation Coordination
Council, and the Area Planning Advisory Council of the Area Agency on Aging
(Houston Area) suggest that in addition to the current amendments, language
be added to eliminate current and potential funding recipients from any decision-making
role regarding the selection of funding recipients.
Response: There appears to be some confusion concerning the roles and responsibilities
of TxDOT and the local planning and development process with regard to the
selection of funding recipients. Changes in the Section 5310 program include
a new process in which local input is gathered to identify public transportation
needs and existing services. This process gathers information from all local
interested parties, which may include private citizens as well as existing
private and public transportation providers, and the local assessment will
be incorporated into a three-year Public Transportation Development Plan.
It is important that all local interests be represented in this planning process,
those with resources as well as those with needs. The department does not
limit or discourage the level of local input, but instead encourages all existing
providers and users of the service to be afforded an opportunity for input
as required by federal regulation. With each annually updated plan, TxDOT
district offices will select projects, not funding recipients, based on, but
not limited to: (A) the decision-making process; (B) the local area's continuous
plan for coordinating transportation services in the area; (C) an annual evaluation
of projects and areas previously funded; (D) the providers in the local area
participating in the program; (E) the resources available in the area (i.e.,
purchase of services or wheelchair lift vehicles); (F) a local assessment
of the program; (G) a needs assessment; and (H) a three-year service plan.
After TxDOT has selected projects, funds will contractually flow through the
legislatively established rural and urban transit districts and metropolitan
transit authorities. TxDOT will monitor these entities and their subcontractors
to ensure that funding is utilized in accordance with the items identified
in the local Public Transportation Development Plan.
Comment: The City of Wichita Falls submitted comments on §31.44. Concerning
subsection (a)(1)(A), it feels that the current $15,000 threshold for requiring
competitive bidding is adequate, and there is no substantiation for reducing
the requirement to $10,000. Concerning subsection (a)(1)(B), it recommends
that this paragraph be reworded to require the solicitation of bids from three
sources when the unit cost is between $2,500 and $15,000. Concerning subsection
(a)(1)(C), it recommends that goods with a unit cost of less than $2,500 not
be required to be purchased after a solicitation of bids from three sources.
Response: After further review of the proposed amendment and existing statutes,
which cover a majority of the transit operators, the department agrees with
the comment of Wichita Falls concerning the $15,000 bidding threshold and
therefore has decided not to adopt the proposed revision. In place of the
original language setting a rigid $15,000 threshold, the department is making
a nonsubstantive amendment tying the threshold to the level set in the Local
Government Code and in the Government Code, which currently is $15,000. For
those entities that are not covered by statutory levels, a threshold of $15,000
has been set. Regarding the comment recommending additional language in §31.44(a)(1)(B)
and (C), the department appreciates the comment and will study the proposed
changes in relation to other statutory requirements for possible inclusion
in future amendments to the rules.
Comment: The City of Grand Prairie expressed a concern that its spending
pattern might change the subsequent funding distribution under the distribution
formula for state funds. They also expressed a concern about criteria that
categorize their system differently than other systems merely from the fact
that they are located in a service area served by a transit authority of which
they are not a member.
Response: The rule reflects the language in the statute. Any changes in
state law will be incorporated if they are made.
Comment: United Way of Texas Gulf Coast summarized the changes in the Section
5310 program as excluding nonprofit organizations from being eligible as primary
recipients of the program and instead opening up the primary recipient funding
to additional governmental bodies, while moving nonprofit entities into the
secondary category. Furthermore, they commented that the rules add Area Agencies
on Aging and other entities to the secondary category.
United Way of Texas Gulf Coast also stated support for the recommendations
made by the American Red Cross - Greater Houston Area Chapter.
Response: Concerning the recommendation that current recipients of Section
5310 funding be included as the primary recipients, the department fully appreciates
the work and value offered by the current Section 5310 providers and therefore
provides an option for alternative primary recipients to be selected when
the existing rural and urban transit districts and metropolitan transit authorities
are unable or unwilling to provide transportation under the Section 5310 program.
Economies of scale and coordination will be realized by channeling the funds
through legislatively established transit districts and authorities either
to provide the service or to subcontract to secondary recipients (which may
include United Way of Texas Gulf Coast and other current Section 5310 transportation
providers). This should provide for increased transportation by employing
efficient local decisions and input on the provision of service.
Comment: Concerning §31.16(c) and (d), the Texas Transit Association
suggests increasing the threshold for reporting accidents to include fatalities,
injury, or transit property damage greater than $10,000, to reflect a more
reasonable level for reporting accidents.
Response: Section 31.3(1), refers to the definition of accident and §31.48(b)(1)
refers to accident reports. The proposed level defining an accident conforms
to national standards as set forth by the National Transit Database. Conformity
to one standard, specifically a standard already in use and governing national
reporting, achieves two goals. First, it yields a uniform measurement, and
second, it ensures a reporting level consistent with that already required
by the National Transit Database for the small urban transit districts and
metropolitan transit authorities. The term accident is defined by several
elements; one such element is transit property damage greater than $1,000.
Although part of the definition, the $1,000 limit does not necessarily require
that a transit property file an accident report with the department when it
is exceeded. In accordance with §31.48(b)(1), the department will establish
appropriate criteria for completing an accident report for those instances
that meet the definition of an accident, including the threshold of $1,000.
Comment: The Texas Transit Association also suggests that §31.16(d)
include a reference to tollway credits in the definition of local share requirements
to avoid any confusion.
Response: The department agrees. Tollway credits have been added to clarify §31.16(d).
This clarification is nonsubstantive in nature.
Comment: The Texas Transit Association applauds and supports TxDOT's proposal
to coordinate the Section 5310 grants as amended in §31.31. The Texas
Transit Association views such a move as progressive and fiscally and logistically
efficient.
Response: Comment noted.
Comment: Sun Metro submitted various questions as follows. Concerning §31.31(d):
What is the relationship between the primary and secondary recipients? In
an urban area can there be a primary and secondary recipient or is it either
a primary or secondary recipient?
Concerning §31.31(e)(2)(C): What is an example of the incremental
cost related to compliance with the Clean Air Act or with ADA?
Concerning §31.31(j)(1): Will the Public Transportation Development
Plan need to be in place before the initial funding year or can it be developed
during the initial funding year (August 2001)?
Concerning §31.31(1): If vehicles are leased to private agencies under
an original grant application, will there be a standard Department (TxDOT)
vehicle lease agreement or will the primary recipient develop its own leasing
agreement?
Response: Since these are questions rather than comments on the proposed
amendments, the department will respond to Sun Metro separately by letter.
Comment: Houston METRO comments that transit authorities are not in a position
to assume the administration of the Section 5310 grants or the Medicaid transportation
services. Metro recommends that TxDOT consider the MPO as the most effective
agency to assume the oversight role. They have significant transportation
planning experience and already handle state and federal grant programs and
the associated reporting.
METRO also comments on the fact that primary recipients will not be reimbursed
for the Section 5310 program grant administration. The same may be true for
future Medicaid transportation administration. Significant dollars could be
spent overseeing the programs, providing centralized routing and scheduling,
and ensuring that secondary recipients adhere to drug testing programs and
other reporting requirements. Full cost reimbursement should go to the primary
recipients for all time and materials rendered in program administration services.
Response: The proposed rules do not cover Medicaid transportation or Medicaid
funding. TxDOT does not have oversight of the Medicaid program. As allowed
in §31.31(d), the director may choose an eligible alternative primary
recipient if the primary recipient is not willing or able to provide the transportation.
Eligible federal expenses of the Section 5310 program do not include operating
or administrative costs. Any changes in eligible federal expenses will be
incorporated if they are made.
For clarification, the department is adopting §31.31(d) with a change
to state that the "director" and not the "department" is the person responsible
for choosing an alternative primary recipient.
Subchapter A. GENERAL
43 TAC §§31.1-31.3
STATUTORY AUTHORITY
The amendments are adopted under Transportation Code, §201.101, which
provides the Texas Transportation Commission with the authority to establish
rules for the conduct of the work of the Texas Department of Transportation,
and more specifically, Transportation Code, §455.005, which requires
the commission to adopt rules concerning rail fixed guideway mass transportation
system safety oversight, and Transportation Code, §456.008, which requires
the commission to by rule prepare and issue a report on the performance of
certain public transportation providers in this state.
No statutes, articles, or codes are affected by the adopted amendments.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on January 26, 2001.
TRD-200100452
Richard Monroe
General Counsel
Texas Department of Transportation
Effective date: February 15, 2001
Proposal publication date: October 13, 2000
For further information, please call: (512) 463-8630
43 TAC §31.11, §31.13
STATUTORY AUTHORITY
The amendments are adopted under Transportation Code, §201.101, which
provides the Texas Transportation Commission with the authority to establish
rules for the conduct of the work of the Texas Department of Transportation,
and more specifically, Transportation Code, §455.005, which requires
the commission to adopt rules concerning rail fixed guideway mass transportation
system safety oversight, and Transportation Code, §456.008, which requires
the commission to by rule prepare and issue a report on the performance of
certain public transportation providers in this state.
No statutes, articles, or codes are affected by the adopted amendments.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed
with the Office of the Secretary of State on January 26, 2001.
TRD-200100453
Richard D. Monroe
General Counsel
Texas Department of Transportation
Effective date: February 15, 2001
Proposal publication date: October 13, 2000
For further information, please call: (512) 463-8630
43 TAC §§31.16, 31.21, 31.22, 31.26, 31.31, 31.36, 31.37
STATUTORY AUTHORITY
The amendments and new section are adopted under Transportation Code, §201.101,
which provides the Texas Transportation Commission with the authority to establish
rules for the conduct of the work of the Texas Department of Transportation,
and more specifically, Transportation Code, §455.005, which requires
the commission to adopt rules concerning rail fixed guideway mass transportation
system safety oversight, and Transportation Code, §456.008, which requires
the commission to by rule prepare and issue a report on the performance of
certain public transportation providers in this state.
No statutes, articles, or codes are affected by the adopted amendments
and new section.
§31.16.Section 5309 Grant Program.
(a)
Purpose. The Federal Transit Act, codified at 49 United
States Code (U.S.C.) §5309, authorizes the secretary of the United States
Department of Transportation to make capital investment grants and loans.
(b)
Eligible recipients. Section 5309 funds are available to
states and local public bodies.
(c)
Department role. The department acts as the designated
recipient for Section 5309 statewide grants. As the administering agency the
department will:
(1)
develop application materials and disseminate information
to prospective applicants and other interested parties;
(2)
allocate the available program funds in a fair and equitable
manner;
(3)
develop evaluation criteria and select projects for funding;
(4)
prepare the state's funding application and submit that
material to the FTA for approval;
(5)
negotiate and execute contracts with subrecipients;
(6)
prepare requests for federal reimbursement and process
payment requests from subrecipients;
(7)
monitor and evaluate the progress of local projects, including
compliance with federal regulations; and
(8)
provide technical assistance to subrecipients as necessary.
(d)
Local share requirements. Section 5309 grants require a
20% match as the local share. FTA program funds cannot be used as the local
share. Eligible match sources include local or state programs, unrestricted
federal funds, and toll credits. Donations are eligible as local share if
the value is documented.
§31.31.Section 5310 Grant Program.
(a)
Purpose. The Federal Transit Act, codified at 49 U.S.C. §5310
(a)(2), authorizes the Secretary of the United States Department of Transportation
to make capital grants or loans for the provision of transportation services
meeting the special needs of elderly and disabled persons. The department
has been designated by the governor to administer the Section 5310 program.
(b)
Goal and objectives. The department's goal in administering
the Section 5310 program is to promote the availability of professional, cost-effective,
efficient, and coordinated passenger transportation services to elderly and
disabled persons using the most efficient combination of financial and other
resources. To achieve this goal, the objectives of the department are to:
(1)
promote the development and maintenance of a network of
transportation services for elderly and disabled persons throughout the state,
in partnership with local stakeholders;
(2)
promote and encourage local participation in decision-making;
(3)
fully integrate the Section 5310 program with other federal,
state, and local resources and programs that are designed to serve similar
populations;
(4)
improve the efficiency, effectiveness, and safety of Section
5310 transit systems through the provision of technical assistance and the
establishment of performance goals and management objectives; and
(5)
include private sector operators in the overall plan to
provide transportation services for elderly and disabled persons.
(c)
Department role. The department acts as the designated
recipient for all Section 5310 funds appropriated to the state. As the administering
agency, the department will:
(1)
develop application materials and disseminate information
to prospective applicants and other interested parties;
(2)
develop evaluation criteria and select projects for funding,
with input from local entities and local individuals in accordance with the
standards set forth in subsection (j) of this section;
(3)
prepare the state's annual program of projects and funding
application and submit that material to the FTA for approval;
(4)
negotiate and execute contracts with local Section 5310
recipients that include performance goals and management objectives for those
recipients;
(5)
prepare requests for federal reimbursement and process
payment requests from Section 5310 recipients;
(6)
monitor and evaluate the progress of ongoing transportation
operations, including compliance with federal regulations and coordination
of services; and
(7)
provide technical assistance to Section 5310 recipients
to aid them in improving and coordinating transit services.
(d)
Eligible recipients. Existing rural and urban transit districts
and metropolitan transit authorities will be the primary recipients of funds
from this program for their respective service areas. For those areas not
covered by transit providers, or in cases where the existing provider is not
willing and able to provide the transportation, the director may choose an
alternative primary recipient. Private, nonprofit organizations and associations
are eligible to receive Section 5310 funds as secondary recipients. Local
public bodies approved by the state to coordinate transportation services,
as selected in subsection (i) of this section, and any public body that certifies
to the selecting entity that nonprofit organizations in the area are not readily
available to carry out the services, may also receive Section 5310 funds as
secondary recipients. Examples of local public bodies approved by the state
to coordinate transportation services are a county agency on aging and a public
transit provider that the state has identified as the lead agency to coordinate
transportation services funded by multiple federal or state human service
programs.
(e)
Eligible assistance categories. The following categories
of expenses are eligible for federal reimbursement under the Section 5310
program.
(1)
State administrative expenses. The department will use
up to 10% of the annual federal program apportionment to defray its expenses
incurred for the administration of the Section 5310 program. The department
must provide a 20% match for any federal administrative monies.
(2)
Capital expenses.
(A)
Eligible recipients, as defined in subsection (d) of this
section, may use program funds for the purchase of capital items. Eligible
items include, but are not limited to:
(i)
buses;
(ii)
vans or other paratransit vehicles;
(iii)
radios and communication equipment;
(iv)
vehicle shelters;
(v)
wheelchair lifts and restraints;
(vi)
vehicle rehabilitation, remanufacture, or overhaul, if
done with the concurrence of the department;
(vii)
microcomputer hardware and software;
(viii)
initial component installation costs;
(ix)
vehicle procurement, testing, inspection, and acceptance
costs;
(x)
vehicle extended warranties that do not exceed industry
standards;
(xi)
the lease of equipment, provided that the local recipient,
with the concurrence of the department, determines a lease is more cost effective
than the purchase of equipment after considering management efficiency, availability
of equipment, staffing capabilities and guidelines on capital leases as contained
in 49 Code of Federal Regulations (C.F.R.) Part 639;
(xii)
the acquisition of transportation services under a contract,
lease, or other arrangement;
(xiii)
the acquisition of preventive maintenance services and
vehicle parts associated with preventive maintenance services, with the concurrence
of the department;
(xiv)
transit-related intelligent transportation systems; and
(xv)
the introduction of new technology, through innovative
and improved products, into mass transportation.
(B)
When a subrecipient chooses to include the acquisition
of transportation services under a contract, lease or other arrangement, both
capital and operating costs associated with the contracted services are eligible
expenses. User-side subsidies are considered one form of eligible arrangement.
The department, as the recipient, has the option to decide whether to provide
funding for these acquired services. Funds may be requested for contracted
services covering a period of more than one year.
(C)
Based on funding availability, federal funds may be used
to defray up to 80% of the cost of eligible capital expenditures. The federal
share may increase to up to 90% for incremental costs related to compliance
with the Clean Air Act in areas of air quality non-attainment or with the
Americans with Disabilities Act of 1990, with concurrence from the department.
Eligibility standards for the higher federal share are defined in FTA Circular
9070.1E, or its latest version. The local subrecipient must provide a 20%
or 10% cash match at the time the equipment is delivered or the services are
received.
(f)
Local share requirements. The local share required under
subsection (e)(2) of this section must be provided from sources other than
federal funds except when authorized by federal law.
(g)
Funding distribution.
(1)
Formula basis. The balance of the annual Section 5310 federal
apportionment, after the state administrative expenses described in paragraph
(e)(1) of this section are set aside, will be allocated to districts on a
formula basis as follows.
(A)
25% of the total available funds will be distributed equally
among the districts.
(B)
75% of the total available funds will be allocated as follows.
(i)
The elderly and disabled population of each district will
be calculated by using the latest census figures for counties available from
the state data center.
(ii)
Each district's subtotal of elderly and disabled population
will then be divided by the state total of that population to determine the
district's formula allocation.
(2)
Allocation.
(A)
Preliminary formula allocations for the next fiscal year
will be announced by the department no later than January 1.
(B)
Final allocations will be announced within 30 days of the
federal apportionment to the state.
(C)
Upon completion of the project selection procedures described
in subsection (i) of this section, if a district does not need the entire
allocation, the commission or the executive director will distribute the balance
to the remaining districts in accordance with paragraph (1)(B) of this subsection
or to individual projects identified in subsection (i)(1) of this section.
(h)
Application requirements. A prospective applicant must
submit an application for Section 5310 grant funds to the appropriate district
office on the forms and at the time specified by the department. The application
must document the need and demand for passenger transportation services for
elderly and disabled persons.
(i)
Project selection. The district office will consult with
all local parties, including any existing MPOs. Up to 10% of a district's
annual allocation or suballocation may be reserved for contingencies or unidentified
projects in keeping with the Category C allowances in the program of projects
that is described in subsection (k) of this section. Project selection will
be as follows.
(1)
The district office will select projects in priority order
as described in subsection (j) of this section, including up to five reserve
projects should additional funding be made available, based on the following
criteria:
(A)
the demonstrated need for capital equipment, examples of
which include, but are not limited to, a needs assessment that documents the
demand for new services, a vehicle inventory that establishes the need for
replacement of older equipment, dispatcher logs that document requests for
service that cannot be met with existing equipment, and purchase of service
contracts that substantiate the need for additional vehicles;
(B)
the applicant's financial and managerial capability to
maintain and operate the equipment, examples of which include, but are not
limited to, audited financial statements and review letters from grantor agencies;
(C)
the applicant's efforts to coordinate services and related
activities with other local entities, examples of which include, but are not
limited to, contracts that outline purchase of service agreements, shared
maintenance or dispatching functions, and joint training initiatives; and
(D)
evidence of local support for the proposal, examples of
which include, but are not limited to, resolutions by local governing bodies
and endorsement letters from other organizations or individuals.
(2)
Upon receipt of the applications selected for funding from
the district offices, the director, or the director's designee, will review
all funding requests for completeness and compliance with all statutory and
program administrative requirements. The department will negotiate a contract
with the selected local entities and organizations to implement the projects
selected for funding.
(j)
Elderly and disabled transportation planning and development.
(1)
Planning and development process. In urbanized and non-urbanized
areas each district will establish, after consultation with local stakeholders,
a local planning and development process. The local planning and development
process will result in a three-year Public Transportation Development Plan,
updated annually, that will demonstrate and include, but will not be limited
to:
(A)
local public input identifying public transportation needs
and services;
(B)
evaluation criteria for project selection that will include
researching and establishing the best possible service and the best possible
provider to carry out service;
(C)
efforts to encourage local coordinated services in all
areas and to create a coordinated transportation network; and
(D)
procedures for evaluating the efficiency and effectiveness
of the transportation network.
(2)
Annual report. Each district will submit an annual report
to the Public Transportation Division no later than October 1st. The October
1st report will include an annual program of projects prioritizing projects
selected for funding that will include, but not be limited to:
(A)
the decision-making process;
(B)
the local area's continuous plan for coordinating transportation
services in the area;
(C)
an annual evaluation of projects and areas previously funded;
(D)
the providers in the local area participating in the program;
(E)
the resources available in the area (i.e., purchase of
services or wheelchair lift vehicles);
(F)
a local assessment of the program;
(G)
a needs assessment; and
(H)
a three-year service plan.
(k)
Program of projects. Upon completion of the evaluation
and selection of projects, the department will prepare a program of projects
as described in FTA Circular 9070.1E, or its latest version. Projects listed
in category A of the program of projects are those that have met all statutory
and administrative requirements for project approval and for which contracts
will be issued upon receipt of federal grant approval. A selected project
that is not yet complete will be listed in category B and a contract will
not be issued until all requirements are met. Up to 10% of the annual federal
apportionment may be listed as a program reserve in category C. Projects advance
to the next category in the program until all listings are in category A.
(l)
Vehicle leasing. Vehicles acquired under the Section 5310
program may be leased to other entities such as local public bodies or agencies,
other private non-profit agencies, or private for-profit operators. The lessee
shall operate the vehicles on behalf of the Section 5310 recipient and provide
the transportation services as described in the original grant application.
(m)
Meal delivery. Section 5310 program subrecipients may coordinate
and assist in providing meal delivery services for homebound persons on a
regular basis if meal delivery services do not conflict with the provision
of transit services or result in a reduction of service to transit passengers.
Section 5310 funds shall not be used to purchase special vehicles to be used
solely for meal delivery or to purchase specialized equipment such as racks
or heating or refrigeration units related to meal delivery. Vehicles shall
not be altered to accommodate meal deliveries.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed
with the Office of the Secretary of State on January 26, 2001.
TRD-200100454
Richard D. Monroe
General Counsel
Texas Department of Transportation
Effective date: February 15, 2001
Proposal publication date: October 13, 2000
For further information, please call: (512) 463-8630
43 TAC §§31.42-31.44, 31.48
STATUTORY AUTHORITY
The amendments are adopted under Transportation Code, §201.101, which
provides the Texas Transportation Commission with the authority to establish
rules for the conduct of the work of the Texas Department of Transportation,
and more specifically, Transportation Code, §455.005, which requires
the commission to adopt rules concerning rail fixed guideway mass transportation
system safety oversight, and Transportation Code, §456.008, which requires
the commission to by rule prepare and issue a report on the performance of
certain public transportation providers in this state.
No statutes, articles, or codes are affected by the adopted amendments.
§31.43.Contracting Requirements.
(a)
Purpose. This section describes contracting standards and
related requirements for recipients of state and federal public transportation
grant funds.
(b)
Standards. The standards contained in the common rule apply
to public transportation contracting activities. The department will monitor
subrecipient compliance with those standards.
(c)
Subcontracts. Subrecipients shall furnish the department
notice of the intent to award a purchase order or contract to any individuals
or organizations not a part of the subrecipient's organization when the amount
of the purchase meets or exceeds the threshold level in the Government Code
or Local Government Code (or $15,000 for those entities not covered by the
Government Code or Local Government Code) requiring formal competitive procurement.
Purchases shall not be split out to stay below the threshold amount. No subcontract
will relieve the subrecipient of the subrecipient's legal responsibilities
to the department. All subcontracts in excess of $25,000 shall contain the
following required provisions from the pro forma grant contract between the
department and the subrecipient:
(1)
financial management;
(2)
civil rights; and
(3)
disadvantaged business enterprise program requirements.
§31.44.Procurement Requirements.
(a)
Purpose. This section describes procurement standards and
related requirements for recipients of state and federal public transportation
grant funds.
(b)
Standards. The standards contained in the common rule apply
to public transportation procurement activities. All subrecipients shall maintain
written procurement policies. Those policies shall, at a minimum, provide
the following.
(1)
Goods, services and equipment purchases.
(A)
Goods, services, or equipment requiring formal competitive
procurement in accordance with the applicable provisions in the Government
Code or Local Government Code ($15,000 or greater for those entities not covered
by the Government Code or Local Government Code) shall require sealed bids.
Bids for computer and radio systems shall include all subcomponents necessary
for the system to be operated in the unit cost. Exceptions will be allowed
for those entities that are eligible to purchase items through the state open
contract procedures.
(B)
Goods, services, or equipment not requiring formal competitive
procurement in accordance with the applicable provisions in the Government
Code or Local Government Code (less than $15,000 for those entities not covered
by the Government Code or Local Government Code) do require the solicitation
of bids from at least three sources. The subrecipient shall retain a written
record of these solicitations. Exceptions will be allowed for those entities
that are eligible to purchase items through the state open contract procedures.
(2)
Real property.
(A)
Acquisition of real property shall be accomplished in accordance
with federal and state statutes, regulations, and policies. In particular,
projects that receive federal funds shall comply with the uniform relocation
and real property acquisition standards established in 49 CFR Part 25.
(B)
Specific standards for construction and rehabilitation
projects will be negotiated as part of the project agreement between the department
and the subrecipient.
(3)
Records retention. All procurement documents are public
information and shall be maintained by the subrecipient for at least three
years after award of the purchase order or subcontract.
(c)
Department role.
(1)
Oversight and approval. The subrecipient shall furnish
the department notice of the intent to award a purchase order or contract
to any individuals or organizations not a part of the subrecipient's organization
when the amount of the purchase meets or exceeds the threshold level in the
Government Code or Local Government Code (or $15,000 for those entities not
covered by the Government Code or Local Government Code) requiring formal
competitive procurement. Purchases shall not be split out to stay below the
threshold amount. The subrecipient shall at a minimum provide the following
documentation as requested by the department describing the procurement history:
(A)
the rationale the subrecipient used for the method of procurement;
(B)
the rationale the subrecipient used for the selection of
contract type;
(C)
the reasons the bidder or proposer was selected; and
(D)
the methodology used to determine the contract price, including
a cost justification.
(2)
Technical assistance. The department will provide vehicle
specifications and guidance on competitive bidding procedures to a subrecipient
upon request. If subrecipients choose to develop their own specifications,
they assume full responsibility for ensuring that the specifications do not
restrict competition.
This agency hereby certifies that the adoption has been
reviewed by legal counsel and found to be a valid exercise of the agency's
legal authority.
Filed
with the Office of the Secretary of State on January 26, 2001.
TRD-200100455
Richard D. Monroe
General Counsel
Texas Department of Transportation
Effective date: February 15, 2001
Proposal publication date: October 13, 2000
For further information, please call: (512) 463-8630
Subchapter B. MOTOR VEHICLE REGISTRATION
Chapter 31.
PUBLIC TRANSPORTATION
Subchapter B. STATE PROGRAMS
Subchapter C. FEDERAL PROGRAMS
Subchapter D. PROGRAM ADMINISTRATION
Subchapter E. PROPERTY MANAGEMENT STANDARDS