1. (a) Purpose. Transportation Code, Chapter 456 requires the commission to allocate, at the beginning of each fiscal biennium, certain appropriated amounts from the public transportation fund on the basis of a prescribed formula. This section sets out the policies, procedures, and requirements for that formula allocation.

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

      1. (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 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.

         1. (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.
         2. (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 §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.

      2. (B) Fifty percent of the funds available under this section will be allocated in nonurbanized areas. Any eligible recipient may receive formula program funds described in paragraph (2) of this subsection. Of the money allocated under this paragraph, the commission will distribute:

         1. (i) 10% of the total amount to designated recipients for state or federally assisted rural public transportation projects selected by the commission; and
         2. (ii) 90% of the total amount to designated recipients operating public transportation services in nonurbanized areas. These monies will be distributed in accordance with the following formula.
            Attached Graphic
            

   2. (2) Funds allocated under this section and any local funds may be used for any transit-related activity except that a designated recipient not included in a transit authority but located in an urbanized area that includes one or more transit authorities may only use funds to provide:

      1. (A) 65% of the local share requirement for federally financed projects for capital improvements;
      2. (B) 50% of the local share requirement for projects for operating expenses and administrative costs;
      3. (C) 50% of the total cost of a public transportation capital improvement, if the designated recipient certifies that federal money is unavailable for the proposed project and the commission finds that the proposed project is vitally important to the development of public transportation in the state; and
      4. (D) 65% of the local share requirement for federally financed planning activities.
3. (c) Unobligated funds. Any money under this section that the designated recipient has not applied for before the November commission meeting in the second year of a state fiscal biennium will be administered by the commission under the discretionary program described in §31.13 of this subchapter.
4. (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.
5. (e) Application. To receive funds allocated under this section, a designated recipient must first submit a completed application, in the form prescribed by the department, to the appropriate district. 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 §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.
6. (f) 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.

Source Note:The provisions of this §31.11 adopted to be effective November 23, 1989, 14 TexReg 5938; amended to be effective January 10, 1992, 17 TexReg 47; amended to be effective January 13, 1994, 19 TexReg 90; amended to be effective March 22, 1996, 21 TexReg 2096; amended to be effective March 26, 1998, 23 TexReg 3044; amended to be effective February 15, 2001, 26 TexReg 1365; amended to be effective April 17, 2003, 28 TexReg 3080.