TITLE 43.TRANSPORTATION

Part 1. TEXAS DEPARTMENT OF TRANSPORTATION

Chapter 31. PUBLIC TRANSPORTATION

The Texas Department of Transportation (department) adopts amendments to §§31.1, 31.3, 31.11, 31.13, 31.16, 31.21, 31.22, 31.26, 31.31, and 31.36, 31.42 - 31.50, 31.55, 31.57, 31.60 - 31.63, and 31.65, and new §31.40 and §31.41, concerning public transportation. Section 31.31 is adopted with changes to the proposed text as published in the January 3, 2003, issue of the Texas Register (28 TexReg 38). Sections 31.1, 31.3, 31.11, 31.13, 31.16, 31.21, 31.22, 31.26, 31.36, 31.40 - 31.50, 31.55, 31.57, 31.60 - 31.63, and 31.65 are adopted without changes to the proposed text as published in the January 3, 2003, issue of the Texas Register and will not be republished.

EXPLANATION OF ADOPTED AMENDMENTS AND NEW SECTIONS

In recent months the department has drafted a manual to assist with the administration of public transportation functions carried out by the department and the entities to which it grants funds.

The amendments include the addition of the allocation formula for federal Section 5307 funds and revisions of the allocation formula for federal Section 5303 funds. Changes in language are made to enhance readability and clarity, to improve grammar, to update citation forms, and to be more consistent with the Code Construction Act, Government Code, Chapter 311.

Section 31.3 is amended to add one new definition, to eliminate a definition no longer used in Chapter 31, to clarify and expand existing definitions, and to conform definitions more closely to existing practice, federal standards, and state law.

Former §31.3(1) is deleted to eliminate the definition of "accident," which is no longer used in Chapter 31. "Incident" will be used in place of "accident."

Renumbered §31.3(23) is amended to redefine "incident" to conform to federal standards.

Renumbered §31.3(25) is amended to redefine "injury" to conform to federal standards.

Renumbered §31.3(26) is amended to redefine "investigation" to reflect that it is used only in relation to rail accidents.

Renumbered §31.3(35) is amended to remove unnecessary language and references to terms that are not used in the rules.

New §31.3(40) is added to define "property damage," a component in the definition of "incident." The new definition conforms to comparable federal terminology.

Section 31.11(d) is added to establish that the Texas Transportation Commission (commission) will reallocate funds that are returned to it and that the reallocation will be made under the discretionary program. This avoids the possibility of unused funding.

Section 31.11(e) is amended to clarify which of the department's organizational units should receive an application for funds.

Section 31.13(c) is amended to provide that applications for funds should be submitted to the districts rather than to the Public Transportation Division.

Section 31.16(c)(3)(A) and (B) are added to provide additional detail explaining the criteria used in allocating Section 5309 funds for replacing vehicles and for replacing other equipment. The added information conforms to current department practice and is included to provide the public with additional information.

Former §31.21(c)(1) is deleted because this function is now handled by the department's Transportation Planning and Programming Division in conjunction with applications for other transportation funding.

Renumbered §31.21(c)(1)(B) and (C) are amended to parallel federal requirements more closely.

Renumbered §31.21(c)(2) is amended to provide additional information about the manner in which the state's Section 5303 funding application is submitted to the Federal Transit Administration.

Section 31.22(c) is amended to permit local share requirements to be met with in-kind contributions. This will provide local entities with greater flexibility in meeting the local share requirements.

Section 31.22(d) is added to provide additional information about the manner in which the state's Section 5313 funding application is submitted to the Federal Transit Administration.

Section 31.26 is amended to address the department's role in allocating Section 5307 funds and the manner in which those funds are allocated to designated recipients.

Section 31.26(c) is added to explain the function of the added subsections.

Section 31.26(d) is added to explain the department's role in allocating Section 5307 funds.

Section 31.26(e) is added to set forth the formula that the department will use in allocating Section 5307 funds to designated recipients. This addition provides additional detail that is consistent with the department's preexisting practices.

Section 31.31(c)(4) is amended by deleting the requirement that contracts for Section 5310 funds include performance goals and management objectives. Experience has shown that these items have not been useful to the department or to subrecipients.

Section 31.31(j)(1) is amended to provide further detail and explanation of the planning and development process.

Section 31.36(b)(3) and (g)(4) is amended to delete the requirement for Section 5311 recipients to establish performance goals and management objectives. Experience has shown that these items have not been useful to the department or to subrecipients.

New §31.40 and §31.41 are added to clarify that all recipients of state and federal funds must adhere to federal requirements for public involvement and reliance on private mass transportation companies. These requirements have always applied to recipients of federal funds. Applying them to recipients of state funds will ensure that all designated recipients are treated equally.

Section 31.43(c) is amended to clarify the organizational unit in the department to which notice must be given. It is also amended to adjust the threshold amount for purchases so that it will correspond to the comparable state requirement.

Section 31.44(b) and (c) is amended to adjust the threshold amount for purchases so that it will correspond to the comparable state requirement. Section 31.44(b)(1)(A) is also amended to clarify that requests for proposals are covered, in addition to competitive bids.

Subsection (c)(2) is amended to add that the department will provide subrecipients with assistance in generating documentation for procurements.

Section 31.48 is amended throughout to substitute "incident" for "accident." This change conforms to current federal and transit industry standards.

Section 31.48(b)(5) is also amended to eliminate the requirement of monthly operations reports. Experience has shown that quarterly reports are adequate, while monthly reports are unnecessarily burdensome.

Section 31.48(b)(5)(A)(iv) and (b)(5)(B)(iv) is amended to substitute a more complete explanation for the term "road calls." This change clarifies the coverage of these sections without significantly changing that coverage.

Section 31.48(b)(5)(B)(i) and (ii) is amended to use the term operating expense in place of the term cost to conform to the federal standard for this reporting requirement.

Former §31.48(b)(6) is deleted to eliminate the requirement that all transit operators develop annual performance goals and management objectives. Experience has shown that these items have not been useful to the department or to subrecipients.

Section 31.48(c)(2)(B) is amended to name the federal oversight agency that is now responsible for drug and alcohol compliance. In addition, a reference to the department's monitoring of subrecipients is removed because the department is not charged with this responsibility.

Section 31.48(d)(1) and (2) is amended to permit the department to terminate funding contracts if minor deficiencies are not corrected after reasonable notice. If a contract is terminated for uncorrected minor deficiencies, the subrecipient will not be eligible for financial assistance for two years. The amendment also replaces the cumbersome contested case process with a less formal appeal to the commission. These changes will enhance the responsiveness and flexibility of the department's response to contract violations while continuing to ensure that subrecipients have reasonable opportunities to correct problems before definitive action is taken.

Section 31.50(c) is amended to establish a date for data to be provided to the department regarding transit inventory and to provide additional detail about the kind of data that must be provided. This amendment will reduce confusion over the nature of the reporting requirement.

Section 31.55(b) is amended to require the recording of liens on the titles of property purchased with state or federal funds. This amendment protects the public investment in public transportation and implements federal and state requirements regarding the use of public funds.

Section 31.61(a) is amended to establish a deadline for submitting a system safety program plan to the department.

Section 31.61(b) is amended to allow a transit agency to notify the department of rail accidents and unacceptable hazardous conditions by electronic mail. This will provide transit agencies with more flexibility in reporting.

Section 31.61(c) is amended to establish a deadline for a transit agency to submit audit forms to the department.

Section 31.63(a) and (b) are deleted because the confidentiality of information is governed exclusively by the Public Information Act, Government Code, Chapter 552.

Section 31.65 is amended to establish that the deadline for submitting the security system program portion of the safety plan is the same as the deadline for submitting the rest of the system safety program plan. This will facilitate review of the plan by the department.

COMMENTS

No oral or written comments were received on the proposed amendments and new sections. However, the department is making two nonsubstantive corrections.

Section 31.31(g)(1)(B)(i) is amended to reference the United States Census Bureau instead of the state data center. The state data center does not report the level of detail necessary for calculating allocations in this program.

Section 31.31(j)(1)(F) and (G) are amended to correct the names of the Transportation Improvement Program and the Statewide Transportation Improvement Program.

Subchapter A. GENERAL

43 TAC §31.1, §31.3

STATUTORY AUTHORITY: Transportation Code, §§201.101, 455.005, and 456.026.

CROSS REFERENCE TO STATUTE: Transportation Code, Chapters 201, 455, and 456.

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 March 28, 2003.

TRD-200302068

Richard D. Monroe

General Counsel

Texas Department of Transportation

Effective date: April 17, 2003

Proposal publication date: January 3, 2003

For further information, please call: (512) 463-8630


Subchapter B. STATE PROGRAMS

43 TAC §31.11, §31.13

STATUTORY AUTHORITY: Transportation Code, §§201.101, 455.005, and 456.026.

CROSS REFERENCE TO STATUTE: Transportation Code, Chapters 201, 455, and 456.

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 March 28, 2003.

TRD-200302069

Richard D. Monroe

General Counsel

Texas Department of Transportation

Effective date: April 17, 2003

Proposal publication date: January 3, 2003

For further information, please call: (512) 463-8630


Subchapter C. FEDERAL PROGRAMS

43 TAC §§31.16, 31.21, 31.22, 31.26, 31.31, 31.36

STATUTORY AUTHORITY: Transportation Code, §§201.101, 455.005, and 456.026.

CROSS REFERENCE TO STATUTE: Transportation Code, Chapters 201, 455, and 456.

§31.31.Section 5310 Grant Program.

(a) Purpose. The Federal Transit Act, codified at 49 USC §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 the elderly and persons with disabilities. 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 the elderly and persons with disabilities 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 the elderly and persons with disabilities 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 the elderly and persons with disabilities.

(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;

(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 CFR 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 subsection (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 population of the elderly and persons with disabilities in each district will be calculated by using the latest census figures for counties available from the United States Census Bureau.

(ii) Each district's subtotal of the population of the elderly and persons with disabilities 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 the elderly and persons with disabilities.

(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) Transportation planning and development for the elderly and persons with disabilities.

(1) Planning and development process. In urbanized and nonurbanized 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 transit development plan, updated annually, that will demonstrate and include:

(A) a process for public involvement;

(B) the identification and evaluation of service delivery resources;

(C) the promotion of a transportation network;

(D) the evaluation of the efficiency and effectiveness of the transportation network;

(E) the creation of the district-wide program of transit projects;

(F) recommendations for projects to be included in local Transportation Improvement Programs; and

(G) the selection of projects in nonurbanized areas for inclusion into the Statewide Transportation Improvement Program.

(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 and information related to the project selection process.

(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 March 28, 2003.

TRD-200302070

Richard D. Monroe

General Counsel

Texas Department of Transportation

Effective date: April 17, 2003

Proposal publication date: January 3, 2003

For further information, please call: (512) 463-8630


Subchapter D. PROGRAM ADMINISTRATION

43 TAC §§31.40 - 31.49

STATUTORY AUTHORITY: Transportation Code, §§201.101, 455.005, and 456.026.

CROSS REFERENCE TO STATUTE: Transportation Code, Chapters 201, 455, and 456.

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 March 28, 2003.

TRD-200302071

Richard D. Monroe

General Counsel

Texas Department of Transportation

Effective date: April 17, 2003

Proposal publication date: January 3, 2003

For further information, please call: (512) 463-8630


Subchapter E. PROPERTY MANAGEMENT STANDARDS

43 TAC §§31.50, 31.55, 31.57

STATUTORY AUTHORITY: Transportation Code, §§201.101, 455.005, and 456.026.

CROSS REFERENCE TO STATUTE: Transportation Code, Chapters 201, 455, and 456.

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 March 28, 2003.

TRD-200302072

Richard D. Monroe

General Counsel

Texas Department of Transportation

Effective date: April 17, 2003

Proposal publication date: January 3, 2003

For further information, please call: (512) 463-8630


Subchapter F. RAIL SAFETY OVERSIGHT PROGRAM

43 TAC §§31.60 - 31.63, 31.65

STATUTORY AUTHORITY: Transportation Code, §§201.101, 455.005, and 456.026.

CROSS REFERENCE TO STATUTE: Transportation Code, Chapters 201, 455, and 456.

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 March 28, 2003.

TRD-200302073

Richard D. Monroe

General Counsel

Texas Department of Transportation

Effective date: April 17, 2003

Proposal publication date: January 3, 2003

For further information, please call: (512) 463-8630