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 have a population of not less than 50,000 according to the most recent federal census and that are not served by an authority, as that term is defined in §31.3 of this title (relating to Definitions) 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 located in urbanized areas that have a population of not less than 50,000 according to the most recent federal census and 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, as that term is defined in §31.3 of this title (relating to Definitions), 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, each with a population of not less than 50,000, according to the most recent federal census, 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, each with a population of not less than 50,000, according to the most recent federal census and receiving funds in accordance with §5307 of the Federal Transit Act (49 United States Code §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 that includes 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 title (relating to Discretionary Program) which 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 urban areas, each with a population of less than 50,000, according to the most recent federal census, or in rural 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: D = T x F/A where: "D" = the amount distributed to a designated recipient; "T" = the total amount apportioned under this subparagraph for a fiscal year of the state; "F" = the amount of federal public transportation money available to the state through the federal formula grant program for areas other than urbanized areas in accordance with §5311 of the Federal Transit Act (49 United States Code §5311), including money transferred for that purpose in accordance with §5307 of that Act (49 United States Code §5307), that was approved during the state's preceding fiscal year for the designated recipient; and "A" = the amount of federal public transportation money available to the state through the federal formula grant program for areas other than urbanized areas in accordance with §5311 of the Federal Transit Act (49 United States Code §5311), including money transferred for that purpose in accordance with §5307 of that Act (49 United States Code §5307), that was approved during the state's preceding fiscal year for all designated recipients eligible to receive money under this subparagraph.

   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 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 shall be administered by the commission under the discretionary program described in §31.13 of this title (relating to Discretionary Program).
4. (d) Application. To receive funds allocated under this section, a designated recipient must first submit an application, in the form prescribed by the department, to the director which shall include certification that the proposed public transportation project is consistent with continuing, cooperating, and comprehensive regional transportation planning implemented in accordance with the Federal Transit Act of 1964 (49 United States Code §5301 et seq.) and the Federal-Aid Highway Act of 1973 (49 United States Code §1602a). (Federal approval of a proposed public transportation project shall be accepted as a determination that all federal planning requirements have been met.)
5. (e) Project evaluation. In evaluating a project under this section, the department shall consider the need for fast, safe, efficient, and economical public transportation and the approval of the federal FTA, or its successor.
6. (f) Reporting requirements. A designated recipient that receives funds allocated under this section shall submit to the department, on the format prescribed by the department, quarterly reports which include the following information: operating cost per passenger; operating cost per revenue mile; fare recovery rate; average vehicle occupancy; on-time performance; the number of accidents per 100,000 vehicle miles; and the number of total miles between mechanical road calls. The reports shall be submitted based on calendar quarters and shall be provided to the department within 45 days of the end of the calendar quarter.

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.