TITLE 43.TRANSPORTATION

Part 1. TEXAS DEPARTMENT OF TRANSPORTATION

Chapter 31. PUBLIC TRANSPORTATION

The Texas Department of Transportation (department) proposes 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.

EXPLANATION OF PROPOSED 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 proposed 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.

FISCAL NOTE

James Bass, Director, Finance Division, has determined that for each year of the first five years the amendments and new sections are in effect, there will be no fiscal implications for the state government as a result of enforcing or administering the amendments or new sections. There are no anticipated economic costs for persons required to comply with the amendments and new sections as proposed.

The amendments and new sections as proposed will not impose any costs on local governments, nor will they affect the funding received by local governments in the aggregate. Particular local governmental entities may receive more or less funding than before.

Margot Massey, Director, Public Transportation Division, has certified that there will be no significant impact on local economies or overall employment as a result of enforcing or administering the amendments and new sections.

PUBLIC BENEFIT

Ms. Massey has also determined that for each year of the first five years the sections are in effect, the public benefit anticipated as a result of enforcing or administering the amendments and new sections will be to provide a safer and more efficient public transportation network in the State of Texas through the department's oversight role, the decreased level of reporting by transit systems, and the increased emphasis on efficiency.

There will be no adverse economic effect on small businesses. This conclusion is based on an analysis of the proposed changes, which primarily clarify and expand on existing practice, and on the fact that urban and rural transit districts, which might be affected, are political subdivisions of the state and are not small businesses.

PUBLIC HEARING

Pursuant to the Administrative Procedure Act, Government Code, Chapter 2001, the Texas Department of Transportation will conduct a public hearing to receive comments concerning the proposed amendments and new sections. The public hearing will be held at 9:00 a.m. on January 23, 2003, in the first floor hearing room of the Dewitt C. Greer State Highway Building, 125 East 11th Street, Austin, Texas and will be conducted in accordance with the procedures specified in 43 TAC §1.5. Those desiring to make comments or presentations may register starting at 8:45 a.m. Any interested persons may appear and offer comments, either orally or in writing; however, questioning of those making presentations will be reserved exclusively to the presiding officer as may be necessary to ensure a complete record. While any person with pertinent comments will be granted an opportunity to present them during the course of the hearing, the presiding officer reserves the right to restrict testimony in terms of time and repetitive content. Organizations, associations, or groups are encouraged to present their commonly held views and identical or similar comments through a representative member when possible. Comments on the proposed text should include appropriate citations to sections, subsections, paragraphs, etc. for proper reference. Any suggestions or requests for alternative language or other revisions to the proposed text should be submitted in written form. Presentations must remain pertinent to the issues being discussed. A person may not assign a portion of his or her time to another speaker. Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services such as interpreters for persons who are deaf or hearing impaired, readers, large print or Braille, are requested to contact Randall Dillard, Director, Public Information Office, 125 East 11th Street, Austin, Texas 78701-2483, 512/463-8588 at least two working days prior to the hearing so that appropriate services can be provided.

SUBMITTAL OF COMMENTS

Written comments on the proposed amendments and new sections may be submitted to Margot Massey, Director, Public Transportation Division, 125 East 11th Street, Austin, Texas 78701-2483. The deadline for receipt of comments is 5:00 p.m. on February 3, 2003.

Subchapter A. GENERAL

43 TAC §31.1, §31.3

STATUTORY AUTHORITY

The amendments are proposed under Transportation Code, §201.101, which provides the commission with the authority to establish rules for the conduct of the work of the department. In addition, some sections are proposed under Transportation Code, §455.005, which directs the commission to adopt rules governing fixed guideway safety oversight, and under Transportation Code, §456.026, which directs the commission to adopt rules establishing a performance-based reporting system.

No statutes, articles, or codes are affected by the proposed amendments.

§31.1.Scope and Purpose.

This chapter sets out policies and procedures to be followed by the Texas Department of Transportation in accomplishing the duties prescribed by Transportation Code, Chapters 455 and 456, concerning public transportation. This chapter also describes the administration of federal public transportation grant monies by the department pursuant to 49 USC [ United States Code (U.S.C.) ] §5301[ , ] et seq.

§31.3.Definitions.

The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise:

[ (1) Accident--An incident that involves a transit vehicle or occurs on transit property, and:]

[ (A) results in a fatality, an injury, or transit property damage greater than $1,000; or]

[ (B) involves a non-arson fire.]

(1) [ (2) ] Administrative expenses--Include, but are not limited to, general administrative expenses such as salaries of the project director, secretary, and bookkeeper; marketing expenses; insurance premiums or payments to a self-insurance reserve; office supplies; facilities and equipment rental; and standard overhead rates.

(2) [ (3) ] Allocation--A preliminary distribution of grant funds representing the maximum amount to be made available to a subrecipient during the fiscal year, subject to the subrecipient's completion of and compliance with all application requirements, rules, and regulations applicable to the specific funding program.

(3) [ (4) ] APTA guidelines--The "Manual for the Development of Rail Transit System Safety Program Plans" published by the American Public Transportation Association on May 1, 1999, and subsequent revisions.

(4) [ (5) ] Authority--A metropolitan or regional authority created under Transportation Code, Chapter 451 or 452, or a city transit department created under Transportation Code, Chapter 453, by a municipality having a population of not less than 200,000 according to the most recent federal census.

(5) [ (6) ] Average revenue vehicle capacity--The number of seats in all revenue vehicles divided by the number of revenue vehicles.

(6) [ (7) ] Capital expenses--Include the acquisition, construction, and improvement of public transit facilities and equipment needed for a safe, efficient, and coordinated public transportation system.

(7) [ (8) ] Commission--The Texas Transportation Commission.

(8) [ (9) ] Common rule--49 CFR, [ Code of Federal Regulations ] Part 18, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments.

(9) [ (10) ] Contractor--A recipient of public transportation funds through a contract with the department. This definition is synonymous with subrecipient.

(10) [ (11) ] Department--The Texas Department of Transportation.

(11) [ (12) ] Deputy executive director --The deputy executive director of the department.

(12) [ (13) ] Designated recipient--The state, an authority, a municipality that is not included in an authority, a local governmental body, or a nonprofit entity providing rural public transportation services, that receives federal or state public transportation money through the department or the Federal Transit Administration, or its successor.

(13) [ (14) ] Director--The director of public transportation for the department.

(14) [ (15) ] District--One of the 25 districts of the department having responsibility for administration of public transportation programs in a designated geographic area.

(15) [ (16) ] District engineer--The chief executive officer in charge of a district [ of the department ].

(16) [ (17) ] Equipment--Tangible, nonexpendable, personal property having a useful life of more than one year and an acquisition cost of $5,000 or more per unit.

(17) [ (18) ] Executive director--The chief executive officer of the department.

(18) [ (19) ] Fatality--A death that results [ resulting ] from an incident and that occurs [ occurring ] within 30 days following the incident.

(19) [ (20) ] Federally funded project--A public transportation project that is being funded in part under the provisions of the Federal Transit Act, as amended, 49 USC [ U.S.C. ] §5301 et seq., the Federal-Aid Highway Act of 1973, as amended, 23 USC [ U.S.C. ] §101 et seq., or any other federal program for funding public transportation.

(20) [ (21) ] Fiscal year--The state accounting period of 12 months that begins on September 1 of each calendar year and ends on August 31 of the following calendar year.

(21) [ (22) ] FTA--The Federal Transit Administration, an agency of the United States Department of Transportation.

(22) [ (23) ] Hazardous condition--A condition that may endanger human life or property, including an unacceptable hazardous condition.

(23) Incident--An intentional or unintentional act that occurs on or in association with transit-controlled property and that threatens or affects the safety or security of an individual or property.

[ (24) Incident--A collision; a loss of vehicle control that results in a vehicle's leaving the roadway or in an injury; a non-arson fire; or transit property damage that is greater than $1,000 and that is associated with a transit agency revenue vehicle, that is associated with any other facility on the transit property, or that is associated with a service vehicle, a maintenance area, or transit agency right of way.]

(24) [ (25) ] Individual--A natural person, including a passenger, trespasser, employee, or bystander.

(25) Injury--Any physical damage or harm that occurs to an individual as a result of an incident and that requires immediate medical attention away from the scene.

[ (26) Injury--Any harm to an individual if the harm necessitates medical treatment, or any harm to an individual if the harm is reported to a law enforcement authority at approximately the time and place of the harm's occurrence. For an employee of a transit agency, this definition includes an incident resulting in time lost from duty and also includes any other definition followed by the transit agency with regard to its current employee injury reporting practice.]

(26) [ (27) ] Investigation--A process to determine the probable cause of a rail [ an ] accident or an unacceptable hazardous condition, including a review by the department, or its agent, of a rail transit agency's determination of the probable cause of a rail [ an ] accident or an unacceptable hazardous condition.

(27) [ (28) ] Like-kind exchange--The trade-in or sale of a transit vehicle before the end of its useful life to acquire a replacement vehicle of like kind.

(28) [ (29) ] Local funds--Money from the purchase of service agreements, contract income, advertising revenue, local tax receipts, and private donations, in-kind contributions, and passenger revenue, notwithstanding any statutory requirement to apply that money to offset operating deficits.

(29) [ (30) ] Local governmental entity--Any local unit of government including a city, town, village, municipality, county, city transit department, metropolitan transit authority, or regional transit authority.

(30) [ (31) ] Local public body--Includes cities, counties, and other political subdivisions of states; public agencies; and instrumentalities of one or more states, municipalities, or political subdivisions of states.

(31) [ (32) ] Local share requirement--The amount of funds that is required and is eligible to match federally funded projects for the improvement of public transportation.

(32) [ (33) ] MPO--Metropolitan Planning Organization, the organization designated by the governor as the responsible entity for transportation planning in urbanized areas over 50,000 in population.

(33) [ (34) ] Net operating expenses--Those expenses that remain after operating revenues are subtracted from eligible operating expenses.

(34) [ (35) ] Nonprofit organization--A corporation or association determined by the Secretary of the Treasury of the United States to be an organization described by 26 USC [ U.S.C ] §501(c), one that is exempt from taxation under 26 USC [ U.S.C. ] §504(a) or §101, or one that has been determined under state law to be nonprofit and for which the state has received documentation certifying the status of the nonprofit organization.

(35) [ (36) ] Nonurbanized area--An area outside an urbanized area[ , as designated by the United States Census Bureau. This definition is synonymous with a rural or small urban area ].

(36) [ (37) ] Obligated funds--Monies made available under a valid, unexpired contract between the department and a public transportation subrecipient.

(37) [ (38) ] Operating expenses--Costs directly related to system operations of a transit agency. At a minimum, this definition includes fuel, oil, replacement tires, replacement parts that do not meet the criteria for capital items, drivers' and mechanics' salaries and fringe benefits, dispatchers' salaries, and licenses. This definition also includes the maintenance, repair, servicing, and inspection of transit agency property, including both vehicles and other property, whether routine or to remedy the effects of collision damage or vandalism.

(38) [ (39) ] Private--Pertaining to nonpublic entities. This definition does not include municipalities or other political subdivisions of the state; public agencies or instrumentalities of one or more states; Indian tribes (except private nonprofit corporations formed by Indian tribes); public corporations, boards, or commissions established under the law of any state; or entities subject to control by public authority, whether state or municipal.

(39) [ (40) ] Project--The public transportation activities to be carried out by a subrecipient, as described in its application for funding.

(40) Property damage--The dollar amount required to replace any vehicle, whether transit or non-transit, and any property or facility damaged during an incident, or to repair it to a state equivalent to the state that existed before the incident.

(41)-(42) (No change.)

(43) Rail fixed guideway system--Any light, heavy, or rapid rail system, monorail, inclined plane, funicular, trolley, or automated guideway that:

(A) is included in FTA's computation of fixed guideway route miles or receives funding under FTA's formula program for urbanized areas, found in 49 USC [ U.S.C. ] §5336; and

(B) is not regulated by the Federal Railroad Administration.

(44)-(49) (No change.)

(50) Rural public transportation (RPT) [ RPT (rural public transportation) ]--A generic term used to identify subrecipients who provide service in nonurbanized areas.

(51)-(54) (No change.)

(55) Stakeholders--All individuals or groups that are potentially affected by transportation decisions. Examples include [ , but are not limited to, ] public agencies, representatives of transportation agency employees or other affected employees, private providers of transportation, non-governmental agencies, local businesses, persons in diverse and traditionally underserved communities, and other interested parties.

(56)-(65) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 20, 2002.

TRD-200208434

Richard D. Monroe

General Counsel

Texas Department of Transportation

Earliest possible date of adoption: February 2, 2003

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


Subchapter B. STATE PROGRAMS

43 TAC §31.11, §31.13

STATUTORY AUTHORITY

The amendments are proposed under Transportation Code, §201.101, which provides the commission with the authority to establish rules for the conduct of the work of the department. In addition, some sections are proposed under Transportation Code, §455.005, which directs the commission to adopt rules governing fixed guideway safety oversight, and under Transportation Code, §456.026, which directs the commission to adopt rules establishing a performance-based reporting system.

No statutes, articles, or codes are affected by the proposed amendments.

§31.11.Formula Program.

(a) (No change.)

(b) Formula allocation. At the beginning of each state fiscal biennium, an amount equal to the amount appropriated from all sources to the commission by the legislature for that biennium for public transportation, other than federal funds and amounts specifically appropriated for coordination, technical support, or other costs of administration, will be allocated to designated recipients.

(1) The commission will allocate those funds as follows.

(A) Fifty percent of the funds available under this section will be allocated to municipalities that are designated recipients or transit providers in urbanized areas that are not served by an authority and to designated recipients that received state transit funding during the fiscal biennium ending August 31, 1997, that are not served by an authority but are located in urbanized areas that include one or more authorities. Any local governmental entity having the power to operate or maintain a public transportation system, except [ for ] an authority, may receive formula program funds described in paragraph (2) of this subsection. The commission will distribute the money allocated under this paragraph as follows.

(i) Ten percent of the total amount will be distributed to designated recipients for state or federally assisted public transportation projects in urbanized areas selected by the commission.

(ii) Ninety percent of the total amount will be distributed to designated recipients operating public transportation services in urbanized areas and receiving funds in accordance with 49 USC [ United States Code (U.S.C.) ] §5307. The monies will be distributed in a ratio of the amount received by that entity during the preceding fiscal biennium, less any amount returned by the entity at the end of the first year of the preceding fiscal biennium, to the total amount received by all entities during the preceding fiscal biennium. However, designated recipients located in an urbanized area including one or more transit authorities that received state transit funding during the fiscal biennium ending August 31, 1997, cannot receive funding under this section or §31.13 of this subchapter that exceeds the amount the designated recipient received during the fiscal biennium ending August 31, 1997.

(B) (No change.)

(2) (No change.)

(c) (No change.)

(d) Returned funds. Any money under this section that the designated recipient agrees to return to the department will be administered by the commission under the discretionary program described in §31.13 of this subchapter.

(e) [ (d) ] Application. To receive funds allocated under this section, a designated recipient must first submit a completed [ an ] application, in the form prescribed by the department, to the appropriate district [ director ]. The application must include certification that the proposed public transportation project is consistent with continuing, cooperating, and comprehensive regional transportation planning implemented in accordance with 49 USC [ U.S.C. ] §5301 and §1602a. Federal approval of a proposed public transportation project will be accepted as a determination that all federal planning requirements have been met.

(f) [ (e) ] Project evaluation. In evaluating a project under this section, the department will consider the need for fast, safe, efficient, and economical public transportation and the approval of the FTA, or its successor.

§31.13.Discretionary Program.

(a) (No change.)

(b) Discretionary allocation. The commission will allocate funds to a local governmental entity, except an authority or a private nonprofit organization that has the power to operate or maintain a public transportation system. Funds may be used for:

(1) the same purposes as described in §31.11(b) [ §31.11(b)(2) ] of this subchapter; and

(2) 80% of the cost of capital expenditures associated with ridesharing activities.

(c) Application. To receive funds under this section, a designated recipient [ an applicant ] must first submit a completed [ an ] application, in the form prescribed by the department, to the appropriate district [ director ]. The application must include:

(1)-(3) (No change.)

(d) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 20, 2002.

TRD-200208435

Richard D. Monroe

General Counsel

Texas Department of Transportation

Earliest possible date of adoption: February 2, 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

The amendments are proposed under Transportation Code, §201.101, which provides the commission with the authority to establish rules for the conduct of the work of the department. In addition, some sections are proposed under Transportation Code, §455.005, which directs the commission to adopt rules governing fixed guideway safety oversight, and under Transportation Code, §456.026, which directs the commission to adopt rules establishing a performance-based reporting system.

No statutes, articles, or codes are affected by the proposed amendments.

§31.16.Section 5309 Grant Program.

(a) Purpose. The Federal Transit Act, codified at 49 USC [ United States Code (U.S.C.) ] §5309, authorizes the Secretary [ secretary ] of the United States Department of Transportation to make capital investment grants and loans.

(b) (No change.)

(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 based on the purpose as specified in the grant ;

(3) develop evaluation criteria and select projects for funding so that:

(A) for vehicle replacement, each eligible subrecipient will receive a proportional share of available funding based on the remaining useful life of its fleet and the cost of replacing its fleet; and

(B) for non-vehicle replacement, each eligible subrecipient will receive a proportional share of available 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) (No change.)

§31.21.Section 5303 Grant Program.

(a) Purpose. The Federal Transit Act, codified at 49 USC [ U.S.C. ] §5303, authorizes the Secretary [ secretary ] of the United States Department of Transportation to make grants to MPOs to support the development of transportation plans and programs. The secretary is required to apportion [ allocate ] planning funds to the states, who must allocate [ further suballocate ] them to MPOs.

(b) (No change.)

(c) Department role. The department acts as the designated recipient for Section 5303 metropolitan planning grants. As the administering agency the department will:

(1) allocate the available program funds using the latest census data for the population of the urbanized area served by the MPO, so that all MPOs receive funds based on the ratio of each MPO's population to the total population of all MPOs, except that:

(A) any MPO that would otherwise receive less than an established minimum threshold amount will have its funding level adjusted upward to that amount; and

(B) to the maximum extent practical no MPO will be allocated less than the amount it received by administrative formula at the time of the last decennial census;

(2) prepare the state's funding application in conjunction with the state's application for a Section 5313 grant and submit the material to the FTA for approval;

(3) execute contracts with MPOs;

(4) prepare requests for federal reimbursement and process payment requests from MPOs;

(5) monitor and evaluate the progress of annual work programs, including compliance with federal regulations; and

(6) provide technical assistance as necessary.

[ (c) Department role. The department acts as the designated recipient for Section 5303 metropolitan planning grants. As the administering agency the department will:]

[ (1) develop application materials and disseminate information to MPOs;]

[ (2) allocate the available program funds using the latest census data for population for the urbanized area served by the MPO, so that:]

[ (A) all MPOs will receive funds based on the ratio of each MPO's population to the total population of all MPOs;]

[ (B) any MPO that would otherwise receive less than $20,000 will have its share adjusted upward to $20,000, except that the minimum funding amount for Texarkana will be $12,999; and]

[ (C) the balance of FTA Section 5303 funds will be redistributed to the remaining MPOs based on the ratio of each MPO's population to the total population of all MPOs;]

[ (3) prepare the state's funding application and submit that material to the FTA for approval;]

[ (4) execute contracts with MPOs;]

[ (5) prepare requests for federal reimbursement and process payment requests from MPOs;]

[ (6) monitor and evaluate the progress of annual work programs, including compliance with federal regulations; and]

[ (7) provide technical assistance as necessary.]

(d) (No change.)

§31.22.Section 5313 Grant Program.

(a) Purpose. The Federal Transit Act, codified at 49 USC [ U.S.C. ] §5313, authorizes the Secretary of the United States Department of Transportation to make grants to states for planning and research activities.

(b) (No change.)

(c) Local share requirements. Section 5313 grants require a 20% cash or in-kind match as the local share.

(d) Department role. The department will prepare the state's funding application in conjunction with the state's application for a Section 5303 grant and submit the material to the FTA for approval.

§31.26.Section 5307 Grant Program.

(a) Purpose. The Federal Transit Act, codified at 49 USC [ U.S.C. ] §5307, authorizes the Secretary of the United States Department of Transportation to make capital and operating grants for public transportation projects in urbanized areas.

(b) (No change.)

(c) Allocation of funds. For the urbanized areas with populations of 200,000 or more, funds are apportioned to the urbanized area by the FTA. For the urbanized areas with populations of less than 200,000, funds are apportioned to the governor for allocation to those areas. This section governs the allocation of those funds if the governor delegates this responsibility to the commission or to the department.

(d) Department role. After notification from the FTA that the Section 5307 governor's apportionment funds are available, the department will notify the FTA of the amounts allocated to each designated recipient from the governor's apportionment and will notify the designated recipient of that amount.

(e) Funding distribution. The department will allocate Section 5307 funds to designated recipients in the following manner.

(1) Each designated recipient will receive the amount published in the Federal Register under the Section 5307 formula apportionment, except as provided in paragraphs (2) - (5) of this subsection.

(2) Any deobligated funds still available to Texas from previous years will be distributed to designated recipients on a pro rata basis except for urbanized areas that are under 200,000 in population and that are located within the planning boundaries of a transportation management area.

(3) Designated recipients must notify the department if allocated funds are not needed in a given year. These funds may be distributed to the remaining designated recipients on a pro rata basis or distributed at the commission's discretion.

(4) Except for urbanized areas that are under 200,000 in population and that are located within the planning boundaries of a transportation management area, the department may review grant balances from previous years and adjust individual awards. Adjustments that increase the overall apportionment will be distributed to all remaining designated recipients on a pro rata basis.

(5) In federal fiscal years 2003 and 2004, any designated recipient that receives an allocation that is less than the previous year will be supplemented by up to 50% of the reduction. All other designated recipients will share in this supplementation on a pro rata basis, except urbanized areas that are under 200,000 in population and that are located within the planning boundaries of a transportation management area.

§31.31.Section 5310 Grant Program.

(a) Purpose. The Federal Transit Act, codified at 49 USC [ 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 the elderly and persons with disabilities [ 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 the elderly and persons with disabilities [ 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 the elderly and persons with disabilities [ 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 the elderly and persons with disabilities [ 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) (No change.)

(e) Eligible assistance categories. The following categories of expenses are eligible for federal reimbursement under the Section 5310 program.

(1) (No change.)

(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 [ 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)-(C) (No change.)

(f) (No change.)

(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 population of the elderly and persons with disabilities in [ 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 the population of the elderly and persons with disabilities [ disabled population ] will then be divided by the state total of that population to determine the district's formula allocation.

(2) (No change.)

(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 [ disabled persons ].

(i) (No change.)

(j) Transportation [ Elderly and disabled transportation ] planning and development for the elderly and persons with disabilities .

(1) Planning and development process. In urbanized and nonurbanized [ 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 transit development plan [ Public Transportation Development Plan ], updated annually, that will demonstrate and include[ , but will not be limited to ]:

(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 Plans; and

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

[ (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 and information related to the project selection process [ 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)-(m) (No change.)

§31.36.Section 5311 Grant Program.

(a) Purpose. The Federal Transit Act, codified at 49 USC [ U.S.C. ] §5311, authorizes the Secretary of the United States Department of Transportation to make grants for public transportation projects in nonurbanized areas. The department has been designated by the governor to administer the Section 5311 program.

(b) Goal and objectives. The Department's goal in administering the Section 5311 program is to promote the availability of professional, cost-effective, efficient, and coordinated passenger transportation services to the general public in nonurbanized areas 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 general public transportation services in nonurbanized areas throughout the state, in partnership with local officials;

(2) fully integrate the Section 5311 program with other federal, state, and local resources that are designed to serve nonurbanized populations;

(3) improve the efficiency, effectiveness, and safety of Section 5311 systems through the provision of technical assistance [ and the establishment of performance goals and management objectives ]; and

(4) include private sector operators in the overall plan to provide public transportation services.

(c)-(d) (No change.)

(e) Eligible assistance categories. The following categories of expenses are eligible for federal reimbursement under the Section 5311 program.

(1) (No change.)

(2) Capital expenses.

(A) Eligible items include, but are not limited to:

(i)-(xiii) (No change.)

(xiv) the lease of equipment or facilities, provided that the local subrecipient, with the concurrence of the department, determines that a lease is more cost effective than the purchase of equipment or facilities after considering management efficiency, availability of equipment, staffing capabilities and guidelines on capital leases as contained in 49 CFR [ C.F.R. ] Part 639;

(xv)-(xix) (No change.)

(B)-(C) (No change.)

(3)-(4) (No change.)

(f) (No change.)

(g) Allocation of funds. As part of its administration of the Section 5311 program, the department is charged with ensuring that there is a fair and equitable distribution of program funds within the state (FTA Circular 9040.1E, or its latest version). The department will allocate Section 5311 funds to local subrecipients in the following manner.

(1) Unless the governor certifies to the Secretary of the United States Department of Transportation that the intercity bus service needs of the state are being adequately met, the department will reserve not less than 15% of the Section 5311 federal apportionment for the development and support of intercity bus transportation. If it is determined that all or a portion of the set-aside monies is not required for intercity bus service, those funds will be applied to the formula apportionment process described in paragraph (3) of this subsection. Procedures for determining if a certification of adequacy is warranted are as follows.

(A)-(B) (No change.)

(C) Based on the findings of subparagraphs (A) and (B) of this paragraph, the commission may certify or recommend that the governor certify to the adequacy of intercity bus service.

(2)-(3) (No change.)

(4) A contract for the allocation of funds pursuant to paragraph (3) of this subsection shall have an effective date of September 1 and [ , ] shall be for a 12-month period unless otherwise authorized by the department [ , and shall provide for performance goals and management objectives for the RPT subrecipient that are acceptable to the commission ].

[ (A) Performance goals for each fiscal year shall at a minimum include at least one measure deemed appropriate by that RPT subrecipient and the department after consultation with the affected RPT subrecipient from each of the categories listed in clauses (i)-(iii) of this subparagraph and may include at least one measure as provided in clause (iv) of this subparagraph.]

[ (i) Cost efficiency. Examples include, but are not limited to, specific performance targets related to revenue recovery ratio, cost per vehicle mile, or cost per service hour.]

[ (ii) Cost effectiveness. Examples include, but are not limited to, specific performance targets related to cost per passenger trip or cost per passenger mile.]

[ (iii) Service utilization. Examples include, but are not limited to, specific performance targets related to passenger trips per capita, passenger trips per mile, or passenger trips per hour.]

[ (iv) Other measures. The department and the RPT subrecipient may also adopt other performance goals that are deemed appropriate by the department and that RPT subrecipient to address particular operational issues. For example, if an RPT subrecipient has experienced a number of vehicular accidents during the preceding year, the department and that RPT subrecipient might agree to institution of a safety program with the goal of reducing the number of accidents by a specified percentage.]

[ (B) Management objectives for each fiscal year shall at a minimum include at least one measure deemed appropriate by that RPT subrecipient and the department after consultation with the affected RPT subrecipient from each of the following categories.]

[ (i) Training. Examples include, but are not limited to, a target for hours of training to be provided to drivers, renewal of first aid and related certifications for all drivers and management employees, or completion of a total quality management course by a specified number of supervisory staff members.]

[ (ii) Marketing and public involvement. Examples include, but are not limited to, the expenditure of a specified budget percentage or amount on marketing activities, the completion of a specified number of public meetings to obtain comments on system operations, or the administration of a passenger survey on quality of service.]

[ (iii) Disadvantaged business enterprise participation. Examples include, but are not limited to, achievement of a specified percentage increase in the use of disadvantaged business enterprises, or recruitment and certification of a specified number of disadvantaged business enterprises.]

[ (iv) General management activities. Examples include, but are not limited to, the automation of all financial and personnel records, preparation of a business plan to foster private sector partnerships, or completion of a staffing plan that identifies funding resources for anticipated personnel increases.]

[ (C) A subrecipient's performance goals and management objectives will serve as a basis for the department's annual review of the subrecipient's efficiency and effectiveness in providing public transportation services. If the subrecipient fails to meet those goals or objectives, and fails to demonstrate a good faith effort for their accomplishment, the commission may rule the subrecipient ineligible to receive nonurbanized public transportation funding. However, the department will make all possible efforts to ensure continuity of service in that area to accommodate the needs of public transportation riders.]

[ (i) The department will notify the subrecipient of any deficiencies noted in the annual review, and will allow the subrecipient a minimum grace period of one calendar year from the date of notification to correct those deficiencies. During the grace period, the department will make every reasonable effort to provide appropriate technical assistance to the RPT subrecipient.]

[ (ii) If at the end of the grace period the deficiencies have not been corrected, the commission may by written order authorize the department to terminate funding to the RPT subrecipient. The RPT subrecipient may request a public hearing before the commission to present input on why termination is not warranted in accordance with the provisions of §1.5 of this title (relating to Public Hearing).]

(h) Application requirements. To receive funds allocated under this section, a designated recipient must submit a completed application, in a form prescribed by the department, to the appropriate district office. [ A prospective applicant must submit an application for Section 5311 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 general public passenger transportation services.

(i)-(j) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 20, 2002.

TRD-200208436

Richard D. Monroe

General Counsel

Texas Department of Transportation

Earliest possible date of adoption: February 2, 2003

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


Subchapter D. PROGRAM ADMINISTRATION

43 TAC §§31.40 - 31.49

STATUTORY AUTHORITY

The amendments and new sections are proposed under Transportation Code, §201.101, which provides the commission with the authority to establish rules for the conduct of the work of the department. In addition, some sections are proposed under Transportation Code, §455.005, which directs the commission to adopt rules governing fixed guideway safety oversight, and under Transportation Code, §456.026, which directs the commission to adopt rules establishing a performance-based reporting system.

No statutes, articles, or codes are affected by the proposed amendments and new sections.

§31.40.Public Involvement.

Recipients of state and federal public transportation funds through the department shall adhere to the requirements of 23 CFR §450.212 and the annual FTA certifications and assurances, as applicable.

§31.41.Private Sector Participation.

In accordance with 49 USC §5323 (a)(1), recipients of state and federal public transportation funds shall to the maximum extent feasible provide for the participation of private mass transportation companies.

§31.42.Standard Federal Requirements.

(a) Purpose. This section describes the standard federal requirements that apply to recipients of FTA grant funds under the following programs codified at 49 USC [ United States Code (U.S.C.) ]:

(1) Section 5303 Grants to MPOs;

(2) Section 5307 Urbanized Area Formula Grants;

(3) Section 5309 Capital Investment Grants and Loans;

(4) Section 5310 Formula Grants and Loans for Special Needs of Elderly Individuals and Individuals with Disabilities;

(5) Section 5311 Formula Grants for Other Than Urbanized Areas; and

(6) Section 5313 State Planning and Research Programs.

(b) Requirements. All entities that receive funds under the Federal Transit Act, codified at 49 USC [ U.S.C. ] §5301 et seq., shall comply with the provisions of the following statutes and regulations:

(1) Title VI of the Civil Rights Act of 1964, 42 USC [ U.S.C. ] §2000(e);

(2) Title VII of the Civil Rights Act of 1964, 42 USC [ U.S.C. ] §2000(e), as it applies to equal employment opportunity;

(3) §105(f) of the Surface Transportation Assistance Act of 1982, §1003(b) of the Intermodal Surface Transportation Efficiency Act of 1991 (Public Law 102-240), and the United States Department of Transportation Minority Business Enterprise Regulations (49 CFR [ Code of Federal Regulations (C.F.R.) ] Part 23) as they apply to disadvantaged business enterprises;

(4) §504 of the Rehabilitation Act of 1973, 29 USC [ U.S.C. ] §794, as it relates to the prohibition of discrimination on the basis of handicap;

(5) Americans with Disabilities Act of 1990, 42 USC [ U.S.C. ] §12101 et seq.;

(6) Federal Transit Act, 49 USC [ U.S.C. ] §5333(b), and 29 CFR [ C.F.R. ] Part 215, as they relate to the protection of labor;

(7) National Environmental Policy Act, 42 USC [ U.S.C. ] §4321 et seq.;

(8) Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 42 USC [ U.S.C. ] §4601 et seq.;

(9) National Historical Preservation Act of 1966, 16 USC [ U.S.C. ] §470a et seq.;

(10) Archaeological and Historic Preservation Act of 1966, 16 USC [ U.S.C. ] §469a-1 et seq.;

(11) Federal Water Pollution Control Act, as amended by the Clean Water Act of 1977, 33 USC [ U.S.C. ] §1251 et seq.;

(12) Clear Air Act of 1991, 42 USC [ U.S.C. ] §7401 et seq.;

(13) Energy Policy and Conservation Act, 42 USC [ U.S.C. ] §6321;

(14) §165 of the Surface Transportation Assistance Act of 1982 (Public Law 97-424), as amended by §337 of the Surface Transportation and Uniform Relocation Assistance Act of 1987 (Public Law 100-17), as they relate to "Buy America" requirements for products purchased with financial assistance from the FTA;

(15) FTA regulations on preaward and post-delivery audits of vehicle purchases, 49 CFR [ C.F.R. ] Part 663;

(16) Drug-Free Workplace Act of 1988, 41 USC [ U.S.C. ] §701 et seq.;

(17) drug and alcohol testing program regulations, 49 CFR [ C.F.R. ] Part 655 [ 653 ];

(18) charter service regulations, 49 CFR [ C.F.R. ] Part 604;

(19) school bus operations regulations, 49 CFR [ C.F.R. ]; and

(20) Surface Transportation and Uniform Relocation Assistance Act of 1987 (Public Law 100-17, §317) as it relates to the testing of new model buses.

§31.43.Contracting Requirements.

(a)-(b) (No change.)

(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 greater than $25,000 [ $15,000 ] for those entities not covered by the Government Code or Local Government Code) requiring formal competitive procurement. Notice shall be given to the district or to the Public Transportation Division, whichever is responsible for administering the contract. 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) (No change.)

(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 ( greater than $25,000 [ $15,000 or greater ] for those entities not covered by the Government Code or Local Government Code) shall require sealed bids or proposals . 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 ( $25,000 or less [ 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)-(3) (No change.)

(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 greater than $25,000 [ $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 procurement [ bidding ] procedures , and assistance in developing procurement documentation 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.

§31.45.Accounting and Financial Recordkeeping Requirements.

(a) (No change.)

(b) Standards. The contractor's financial management system shall meet or exceed the requirements of the common rule. Those requirements include[ , but are not limited to ]:

(1) accurate, current, and complete disclosure of the financial transactions of each grant program in accordance with state and federal reporting requirements;

(2) records that [ which ] identify adequately the source and application of funds for grant-supported activities ([ such ] records shall contain information pertaining to grant awards and authorization, obligations, commitments, assets, liabilities, outlays, and income);

(3) effective control over and accountability for all funds, property, and other assets (the contractor shall adequately safeguard all [ such ] assets and shall assure that they are used solely for authorized purposes);

(4) comparison of actual with budgeted amounts for each contract, and relation of financial information to performance or productivity data, including the production of unit cost information;

(5) procedures for determining the eligibility for reimbursement and proper allocation of cost;

(6) accounting records that [ which ] are supported by source documentation; and

(7) a systematic method to assure timely and appropriate resolution of audit findings and recommendations.

§31.46.Reimbursement Procedures.

(a) (No change.)

(b) Contractor responsibilities. Unless the department provides written authorization to the contrary, the contractor shall:

(1) submit reimbursement requests in a timely fashion, with all supporting documentation as required by the department and specified in the project agreement;

(2) submit a final project billing within 45 days of the termination date specified in the project agreement; and

(3) make payments promptly to subcontractors and suppliers , and [ as ] failure to do so shall be grounds for termination of the grant contract by the department (the department shall not be responsible for the debts of the contractor).

(c) Department responsibilities. The department will reimburse contractors within 30 days of the receipt of properly prepared and documented requests for payment. Payment [ Such payment ] is contingent upon the availability of federal and state appropriated funds.

§31.47.Audit and Project Close-Out Standards.

(a) (No change.)

(b) Audit standards. Contractor audit procedures shall meet or exceed the single audit report requirement outlined in Office of Management and Budget (OMB) publications as follows: state or local governments follow OMB Circular A-128; and institutions of higher education and other nonprofit organizations follow OMB Circular A-133.

(1) Access. The United States Secretary of Transportation, the Comptroller General of the United States, the executive director of the department, and the State Auditor, and [ or ] any of their authorized representatives , shall have access to the financial and other project records at all reasonable times during the contract period and for the record retention period for the purpose of making audits, examinations, excerpts and transcripts.

(2) Documentation. The contractor shall maintain financial records, supporting documents, statistical records , and all other records of the public transportation grant.

(3) Records retention. Financial records, supporting documents, statistical records , and all other records of the public transportation grant shall be retained for a period of three years after final payment, with the following qualifications.

(A) Litigation. If any litigation, claim, or audit is started before the expiration of the three-year period, the records shall be retained until all litigations, claims, and [ or ] audit findings involving the records have been resolved.

(B)-(C) (No change.)

(4) (No change.)

§31.48.Project Oversight.

(a) (No change.)

(b) Reporting requirements. The subrecipient shall submit reports to the department in a format prescribed by the department within deadlines established by the department.

(1) Incident [ Accident ] reports. Subrecipients shall report all incidents [ accidents ] that meet criteria established by the department. The subrecipient shall submit the report within five days of the incident [ accident ] or discovery of the incident [ accident ].

(2) Asset inventory. Each subrecipient shall provide information on state and federally funded equipment as described in §31.50 of this chapter [ title (relating to Recordkeeping and Inventory Requirements) ].

(3) (No change.)

(4) Disadvantaged Business Enterprises and Historically Underutilized Businesses. Subrecipients shall submit reports in accordance with §9.54 of this title (relating to Historically Underutilized Business (HUB) Program [ Good Faith Effort ]).

(5) Operations reports. All FTA Section 5307, Section 5310, and Section 5311 subrecipients shall submit [ monthly, ] quarterly[ , ] and annual operations reports.

(A) Pursuant to the requirements of Transportation Code, §456.008(a) and (b), the department will publish annually the following performance-based indicators for recipients of FTA Section 5307 funds, including metropolitan transportation authorities.

(i) Service efficiency - Operating expense per vehicle revenue hour and operating expense per vehicle revenue mile.

(ii) Cost effectiveness - Operating expense per unlinked passenger trip.

(iii) Service effectiveness - Unlinked passenger trips per vehicle revenue mile and unlinked passenger trips per vehicle revenue hour.

(iv) Safety - Total incidents [ accidents ] per 100,000 miles of service and average number of miles between revenue vehicle mechanical system failures that prevent the vehicle from completing a scheduled revenue trip [ road calls ].

(B) Pursuant to the requirements of Transportation Code, §456.008(a) and (b), the department will publish annually the following performance-based indicators for RPT subrecipients of FTA Section 5311 funds : [ . ]

(i) Service efficiency - Operating expense [ Cost ] per vehicle mile [ and average vehicle utilization ].

(ii) Cost effectiveness - Operating expense [ Cost ] per unlinked passenger trip.

(iii) Service effectiveness - Unlinked passenger trips per capita and unlinked passenger trips per vehicle mile.

(iv) Safety - Total incidents [ accidents ] per 100,000 miles of service and average number of miles between revenue vehicle mechanical system failures that prevent the vehicle from completing a scheduled revenue trip [ road calls ].

[ (6) Performance goals and management objectives. All recipients of state and federal assistance through the department shall develop annual performance goals and management objectives in accordance with §31.36 of this chapter. A written status report shall be submitted at the end of the state fiscal year.]

(6) [ (7) ] Significant events. The recipient shall promptly advise the department in writing of events that have a significant effect on the delivery of public transportation services, including:

(A) problems, delays, and adverse conditions that will materially affect the ability to attain program objectives, prevent the meeting of time schedules and goals, or preclude the attainment of project work units by established time periods, accompanied by a statement of the action taken or contemplated and any departmental assistance needed to resolve the situation; and

(B) favorable developments and events that will enable meeting time schedules and goals sooner than anticipated or producing more work units than originally projected.

(7) [ (8) ] Rail Transit Agency Report. Rail Transit Agency Reports shall be submitted in accordance with §31.61 and §31.65 of this chapter.

(8) [ (9) ] Miscellaneous reports. Entities receiving funds from either the department or the FTA shall cooperate with the department in providing other information as requested by state and federal funding agencies.

(c) Department monitoring. The department will rely on subrecipient reports as described in subsection (b) of this section as the primary means of monitoring subrecipient performance. In addition, department personnel will meet with the subrecipient at least quarterly to discuss problems encountered, the subrecipient's need for technical assistance, and other topics related to the provision of public transportation services. Routine monitoring activity will occur in the following areas according to a schedule that accommodates federal deadlines and department and operator workloads. Most, but not all, monitoring activities will occur on a quarterly basis.

(1) (No change.)

(2) Drugs and alcohol.

(A) (No change.)

(B) Each Section 5310 subrecipient shall comply with Federal Motor Carrier Safety [ Highway ] Administration requirements for drug and alcohol compliance if it owns a vehicle that requires a commercial driver's [ drivers ] license to operate. [ The department will monitor Section 5310 subrecipients for compliance with these regulations. ]

(3)-(7) (No change.)

(d) Noncompliance. A subrecipient's failure to observe and comply with federal and state program requirements will cause the department to find that subrecipient in noncompliance and take actions as specified in this subsection.

(1) Minor deficiencies. A minor deficiency is cited when an error occurs that can generally be attributed to a subrecipient's lack of knowledge about a particular requirement, is easily corrected, and does not create legal, safety, or other hazards to employees, passengers, or other members of the public. An example of a minor deficiency is failure to submit a required report. In these cases, the department will issue a warning letter to the subrecipient describing the deficiency and allowing the subrecipient 45 calendar days to comply with an established plan of corrective action. If the subrecipient does not comply in the prescribed manner, the department may exercise its contract termination rights, direct the disposition of equipment purchased with grant funds, or both. Subrecipients that have been cited for minor deficiencies that are not corrected will be ineligible to receive financial assistance from the department for a period of two years from the date of the certified notification letter. A decision that a subrecipient is ineligible for financial assistance because of a minor deficiency may be appealed to the commission by filing five copies of a petition with the executive director. [ establishing a deadline for compliance. Failure to respond in the prescribed manner will cause the department to consider this a major deficiency as described in paragraph (2) of this subsection ].

(2) Major deficiencies. A major deficiency is cited when the department finds that a subrecipient has [ knowingly violated program requirements or has ] pursued actions that are illegal or that pose a safety hazard to employees, passengers, or other members of the public. Examples include [ , but are not limited to, ] failure to maintain required insurance coverage, violation of charter regulations, and nonpayment of subcontractors or vendors. In these cases, the department will issue a certified letter advising the subrecipient to [ immediately ] address the deficiency immediately. The [ , and the ] subrecipient's compliance will be verified by department personnel [ within 48 hours of the subrecipient's receipt of the certified letter ]. If the subrecipient does not comply [ respond ] in the prescribed manner, the department will, within ten working days, exercise its contract termination rights, direct the disposition of equipment purchased with grant funds, or both. Subrecipients that have been cited for major deficiencies that were not corrected will be ineligible to receive financial assistance from the department for a period of two years from the date of the certified notification letter. A decision that a subrecipient [ subcontractor ] is ineligible for financial assistance because of a major deficiency may be appealed to the commission by filing five copies of a petition with the executive director [ in accordance with the provisions of §1.21 et seq. of this title (relating to Procedures in Contested Cases) ].

§31.49.Transportation Needs of Clients of Health and Human Service Agencies and Coordination of Services.

(a) (No change.)

(b) Planning for client transportation.

(1) (No change.)

(2) An applicant for state or federal financial assistance under this chapter must submit evidence of coordination efforts to the department. This [ Such ] evidence must include a certification that, whenever possible, and to the maximum extent feasible, the existing network of transportation providers, and in particular the fixed route components of public transportation systems, will be used to meet the client transportation requirements of the state's social service agencies and their clients.

(3) (No change.)

(c) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 20, 2002.

TRD-200208437

Richard D. Monroe

General Counsel

Texas Department of Transportation

Earliest possible date of adoption: February 2, 2003

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


Subchapter E. PROPERTY MANAGEMENT STANDARDS

43 TAC §§31.50, 31.55, 31.57

STATUTORY AUTHORITY

The amendments are proposed under Transportation Code, §201.101, which provides the commission with the authority to establish rules for the conduct of the work of the department. In addition, some sections are proposed under Transportation Code, §455.005, which directs the commission to adopt rules governing fixed guideway safety oversight, and under Transportation Code, §456.026, which directs the commission to adopt rules establishing a performance-based reporting system.

No statutes, articles, or codes are affected by the proposed amendments.

§31.50.Recordkeeping and Inventory Requirements.

(a) Purpose. To protect the public investment in real property and equipment purchased in whole or in part with state or [ and/or ] federal public transportation funds administered by the department, subrecipients shall [ contractors will ] comply with the standards described in this section.

(b) Property records. The subrecipient shall [ contractor must ] maintain records that include:

(1) a description of the property;

(2) a serial number or other identification number;

(3) the source of the property;

(4) who holds title;

(5) the acquisition date and cost of the property;

(6) the percentage of state and the percentage of federal [ and/or federal ] participation in the cost of the property;

(7) the location, use, and condition of the property; and

(8) any ultimate disposition data , including the date of disposal and sale price of the property.

(c) Inventory. The subrecipient shall [ contractor will ] cooperate with department representatives in performing at least once every two years a physical inventory of all real property and equipment, as defined in §31.3 of this chapter [ title (relating to Definitions) ], purchased in whole or in part with state or [ and/or ] federal capital funds administered by the department. However, during the time period between these physical inventories, the subrecipient [ contractor ] shall promptly notify the department in writing of all changes in the status of that [ such ] real property and equipment in order that department records may be kept current. On or before November 1 of each year, the subrecipient shall provide the department with an accurate inventory, including the mileage, of all vehicles used in public transportation service. Property shall remain on the department's and subrecipient's [ contractor's ] inventories until such time as the property is formally disposed of in accordance with the requirements outlined in §31.57 of this subchapter [ title (relating to Disposition) ]. Notwithstanding the foregoing, the subrecipient [ contractor ] shall, where applicable, be bound by, and shall comply with, the inventory requirements specified in the common rule.

(d) Control system. The subrecipient [ contractor ] must develop a control system to ensure adequate safeguards to prevent loss, damage, or theft of the property. The subrecipient [ contractor ] shall investigate any loss, damage, or theft.

§31.55.Title.

(a) Purpose. To protect the public investment in real property and equipment purchased in whole or in part with state or [ and/or ] federal public transportation funds administered by the department, subrecipients shall [ contractors must ] observe the requirements described in this section.

(b) Ownership. With regard to vehicles and real property purchased with funds provided by the department through grants executed on or after January 1, 2002, including vehicles and real property transferred from one subrecipient to another, a subrecipient shall record a lien naming the Texas Department of Transportation, Public Transportation Division, as the lienholder. The department may waive this requirement or may approve in writing an alternative form of recording its interest.

[ (b) Ownership. Unless explicitly authorized in writing by the department, title to all real property and equipment shall be vested in the contractor].

(c) Nonencumbrance. Except as specifically authorized by these rules, a subrecipient [ A contractor ] shall not execute any lease, pledge, mortgage, lien, or other contract touching or affecting the federal or state interest in any project facilities or equipment; nor shall the subrecipient [ contractor ], by any act or omission of any kind, adversely affect the federal or state interest or impair its continuing control over the use of project facilities or equipment.

§31.57.Disposition.

(a) Purpose. This section describes the standards that apply to the disposition of equipment purchased in whole or in part with state or federal public transportation funds.

(b) Like-kind exchanges. In the case of like-kind exchanges, the percentage of the department's original contractual interest shall be applied to the fair market value of the equipment being sold at the time of the exchange. That dollar value shall then be transferred as the department's interest in the equipment being acquired and, as appropriate, added to any additional funding provided by the department towards the purchase of the new equipment.

(c) Federal standards. The federal standards contained in the common rule shall govern the disposition of real property and equipment purchased under contracts in which the department provides all or part of the local share requirement of federally assisted capital improvements. In cases in which the common rule does not require reimbursement of the federal grantor agency, the department will similarly release the state interest in the capital improvement provided that the state's percentage share of any proceeds derived by the subrecipient in the disposition process shall be used by the subrecipient for public transportation purposes similar to those for which the contract award was originally made. If the subrecipient does not intend to use the state's percentage share of the proceeds for public transportation purposes, those monies shall be refunded as described in subsection (d)(2)(B) of this section. In cases in which the common rule requires reimbursement of the federal grantor agency, the subrecipient shall provide the department a percentage of the proceeds of the disposition equal to the percentage of the state's original investment in the property or equipment. Once disposition is authorized, the subrecipient shall relinquish title to the property through either sale, auction, or transfer to a third party. The department shall be notified of the disposition and shall be provided information necessary to delete the property from inventory records described in §31.50 of this subchapter [ title (relating to Recordkeeping and Inventory Requirements) ].

(d) State standards. All real property and equipment obtained through contracts in which the department's contractual interest includes federal funds or state monies shall be governed by the disposition standards contained in paragraphs (1) and (2) of this subsection. The department shall be notified of the subrecipient's intent to proceed with the dispositions and provided information necessary to delete the property from inventory records described in §31.50 of this subchapter [ title (relating to Recordkeeping and Inventory Requirements) ]. Prior to disposition of property under the terms of this subsection, the subrecipient shall obtain written concurrence from the department and receive disposition instructions. Once disposition is authorized, the subrecipient shall relinquish title to the property through either sale, auction, or transfer to a third party.

(1) Disposition criteria.

(A) Vehicles. Disposition may occur when the current per-unit market value is less than $5,000.

(B) Other equipment. Disposition may occur when the current per-unit market value is less than $5,000.

(C) Real property. When real property is no longer needed for the originally authorized purpose, the subrecipient shall request disposition instructions from the department pursuant to this subsection.

(D) Exceptions. As allowed under the Federal Transit Act of 1946, §12(k), as amended, 49 USC [ United States Code (U.S.C.) ] §1608, a subrecipient may petition the department to allow the transfer of the federal interest in any real property and equipment subject to the standards contained in this subsection. If a petition is filed, the subrecipient must furnish information requested by the department to determine if the real property or equipment is no longer needed for public transportation purposes. The department will consider other exceptions to the standards contained in subparagraphs (A) and (B) of this paragraph on a case-by-case basis. If an exception is claimed, the subrecipient must furnish information requested by the department to determine if an exception is warranted due to special circumstances.

(2) Distribution of disposition proceeds.

(A) Refund not required. In cases in which the disposition criteria contained in paragraph (1)(A) and (B) of this subsection have been met, the department will release its contractual interest in the capital improvement. The department will similarly release its contractual interest in cases in which exceptions are granted for early disposition in accordance with the provisions contained in paragraph (1)(D) of this subsection. However, the department's release of its interest in a capital improvement is contingent upon the subrecipient's assurance that the department's contractually specified percentage share of any proceeds derived by the subrecipient in the disposition process will be used by the subrecipient for public transportation purposes similar to those for which the contract award was originally made. In the case of transfers to non-transit uses, as allowed under the Federal Transit Act of 1964, §12(k), as amended, 49 USC [ U.S.C. ] §1608, the department will release only the federal portion of its contractual interest. The state's percentage share shall be refunded as described in subparagraph (B) of this paragraph.

(B) Refund required. In cases in which the disposition criteria contained in paragraph (1)(A) and (B) of this subsection have not been met, but the subrecipient has received authorization from the department to proceed with the disposition of property, the subrecipient shall provide the department a percentage of the proceeds of the disposition equal to the percentage of the department's original contractual interest in the property or equipment. In cases of real property, as described in paragraph (1)(C) of this subsection, and when exceptions are not granted for early disposition, as described in paragraph (1)(D) of this subsection, the subrecipient shall similarly provide the department a percentage of the proceeds of the disposition equal to the percentage of the department's original contractual interest in the property or equipment. In the case of transfers to non-transit uses, as allowed under the Federal Transit Act of 1964, §12(k), as amended, 49 USC [ U.S.C. ] §1608, the subrecipient shall provide the department a percentage of the proceeds of the disposition equal to the percentage of the original state percentage interest in the property or equipment, excluding any federal percentage interest that might have been included in the contract of assistance.

(C) Net proceeds from sale of capital assets. In cases in which the common rule requires a reimbursement, when the subrecipient receives proceeds from the disposition of the capital property or equipment and those funds will be used for subsequent federal public transportation purposes, the subrecipient shall establish a record of liability demonstrating that these funds are owed. The liability will be removed when the subrecipient uses the proceeds for a subsequent transit project.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 20, 2002.

TRD-200208438

Richard D. Monroe

General Counsel

Texas Department of Transportation

Earliest possible date of adoption: February 2, 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

The amendments are proposed under Transportation Code, §201.101, which provides the commission with the authority to establish rules for the conduct of the work of the department. In addition, some sections are proposed under Transportation Code, §455.005, which directs the commission to adopt rules governing fixed guideway safety oversight, and under Transportation Code, §456.026, which directs the commission to adopt rules establishing a performance-based reporting system.

No statutes, articles, or codes are affected by the proposed amendments.

§31.60.Purpose.

The department is required by 49 USC [ Title 49, United States Code, ] §5330 [ requires the department ] to establish and carry out a safety program plan for each fixed guideway mass transportation system. Transportation Code, Chapter 455 requires the commission to establish standards for and implement state oversight of safety and security practices of rail fixed guideway systems in compliance with 49 USC §5330. The sections under this subchapter prescribe the policies and procedures governing state oversight of rail fixed guideway systems' safety and security practices.

§31.61.Rail Transit Agency Responsibilities.

(a) Plan. A rail transit agency shall develop a system safety program plan and submit it to the department 120 days before beginning revenue service. The plan shall: [ a system safety program plan that: ]

(1) address [ addresses ] the topics outlined in "Implementation Guidelines for State Safety Oversight of Rail Fixed Guideway Systems," DOT-FTA-MA-90-7006-96-3(available from the department);

(2) comply [ complies ] with the APTA guidelines (available from the department) including:

(A) standards for the personal security of passengers and employees of the rail fixed guideway system;

(B) lines of authority;

(C) levels of responsibility and accountability; and

(D) methods of documentation for the system; and

(3) contain [ contains ] a security system program plan that complies with the "Transit Security Procedures Guide," FTA-MA-90-7001-94-2 and the "Transit System Security Program Planning Guide," FTA-MA-90-7001-94-1 (available from the department), and include [ includes ]:

(A) current security conditions and existing security capabilities and practices;

(B) management of the system security plan and roles and responsibilities for planning, proactive measures, training, and day-to-day activities;

(C) threat and vulnerability identification, assessment, and resolution;

(D) prevention and resolution of security problems, including general security issues and crimes against passengers, the rail transit system, and the public; and

(E) implementation, evaluation, and modification of system security plan.

(b) Rail accident notification and report. A rail transit agency shall report rail accidents and unacceptable hazardous conditions to the department by telephone , electronic mail, or facsimile within 24 hours of the occurrence of the rail accident or the discovery of the unacceptable hazardous condition and in writing within 30 days of the last day of the reporting month, including a final corrective action plan and a summary report for the month.

(c) Internal safety audit. A rail transit agency shall conduct an annual internal safety audit in accordance with APTA guidelines , submit audit forms for approval six weeks prior to the audit, and submit a written report to the department that shall, at a minimum:

(1) summarize the rail transit agency's safety activities for the preceding 12 months including a report of the internal safety audits performed during the preceding 12 months; and

(2) describe major findings of the rail transit agency's safety audits and inspections , including:

(A) areas of non-compliance and corrective actions taken;

(B) outcomes of safety and related initiatives; and

(C) progress of training efforts and evaluations.

(d) Hazardous conditions and investigations. A rail transit agency shall:

(1) minimize, control, correct, or eliminate any investigated unacceptable hazardous conditions as required by §31.62(c) of this subchapter; and

(2) provide all necessary assistance to allow the department, or its agent, to conduct:

(A) appropriate on-site investigations of rail accidents and unacceptable hazardous conditions under §31.62(c) of this subchapter; and

(B) an on-site triennial safety review under §31.62(c) of this subchapter.

(e) Reports and certification. A rail transit agency shall submit:

(1) reports and other information to the department as required by 49 USC [ United States Code ] §5330 and Transportation Code, Chapter 455; and

(2) a certification, signed by an authorized official of the rail transit agency, to the department stating that the rail transit agency has complied with the provisions of this subchapter.

§31.62.State Responsibilities.

(a) Department guidelines. In carrying out its responsibilities under this subchapter, the department will follow the principles and procedures outlined in "Implementation Guidelines for State Safety Oversight of Rail Fixed Guideway Systems" (DOT-FTA-MA-90-7006-96-3) (available from the department).

(b) Plan. The department, or its agent, will review the rail transit agency's system safety program plan required by §31.61(a) of this subchapter [ title (relating to Transit Agency Responsibilities) ]; and

(1) approve the plan, if it meets the required standards in §31.61(a) of this subchapter [ title ]; or

(2) notify the rail transit agency in writing and identify the specific sections of the plan that [ which ] are not in compliance with the state standards, and recommend appropriate modifications or additions, specifying a time frame during which the revisions must be accomplished.

(c) Probable cause. The department will review the rail transit agency's findings of probable cause of a rail [ an ] accident or unacceptable hazardous condition in accordance with the APTA guidelines, Transit Security Procedures Guide, and the Transit System Security Program Planning Guide, including operating hazard, subsystem interface, and human factors analyses; and

(1) approve the findings of probable cause in accordance with those guidelines; or

(2) conduct an independent investigation, either with department personnel or an outside agent if the findings of probable cause are not approved under paragraph (1) of this subsection and will:

(A) advise the rail transit agency by telephone at least 24 hours in advance of the arrival of an investigator at the transit property; and

(B) provide written confirmation to the rail transit agency within 48 hours that [ which ] explains the reasons the department is conducting an independent investigation and provide the names of the personnel who will be conducting the investigation.

(d) Security and safety reviews.

(1) The department will require, review, and approve in accordance with APTA guidelines, the Transit Security Procedures Guide, and the Transit System Security Program Planning Guide:

(A) any plan of a rail transit agency to minimize, control, correct, or eliminate any investigated rail accident; and

(B) the agency's annual safety audit report required by §31.61(c) of this subchapter [ title ].

(2) At least every three years, the department will:

(A) conduct an on-site safety review of each rail transit agency's system safety program plan based upon the criteria in §31.61(a) of this subchapter [ title ]; and

(B) prepare and issue a report containing findings and recommendations resulting from that review that, at a minimum, include:

(i) an analysis of the efficacy of the system safety program plan; and

(ii) a determination of whether it should be revised to meet the requirements of §31.61(a) of this subchapter [ title ].

(e) Reports. The department will submit reports or other information required by the United States Department of Transportation.

§31.63.Disclosure of Information.

[ (a) Investigation documents. Data collected or a report of any investigation conducted by the department or its agent are confidential and subject to disclosure, inspection, or copying under Government Code, Chapter 552.]

[ (b) Security documents. Data collected, a security plan, or a report concerning security are confidential and not subject to disclosure, inspection, or copying under Government Code, Chapter 552.]

[ (c) Evidence. ] An investigative or security report may not be admitted in evidence or used for any purpose in any action or proceeding arising out of any matter referred to in an investigation except in an action or a proceeding instituted by the department.

§31.65.Deadlines.

A rail transit agency shall submit to the department:

(1) prior to beginning revenue service, a system safety program plan required by §31.61(a) of this subchapter, including [ excluding ] the system security portion of the plan required by §31.61(a)(3) of this subchapter ;

(2) by February 1 of each year, a written report of its annual internal safety audit conducted as required by §31.61(c) of this subchapter;

(3) by February 1 of each year, a certification, signed by an authorized official of the rail transit agency, that the rail transit agency has complied with the provisions of this subchapter; and

[ (4) the security system program portion of the safety plan required by §31.61(a)(3) of this subchapter and;]

(4) [ (5) ] by February 1 of each year, a written report of the rail transit agency's safety activities for the preceding 12 months as required by §31.61(c) of this subchapter.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 20, 2002.

TRD-200208439

Richard D. Monroe

General Counsel

Texas Department of Transportation

Earliest possible date of adoption: February 2, 2003

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