43 Tex. Admin. Code § 31.31 – Section 5310 Grant Program

(a) Purpose. Section 5310, Federal Transit Act, (49 USC §5310), authorizes the Secretary of the U.S. DOT to make capital grants for the provision of transportation services meeting the special needs of elderly individuals and individuals with disabilities. The department has been designated by the governor to administer the Section 5310 program.
(b) Goal and objectives. The department's goal in administering the Section 5310 program is to promote the availability of professional, cost-effective, efficient, and coordinated passenger transportation services to elderly individuals and individuals with disabilities using the most efficient combination of financial and other resources. To achieve this goal, the objectives of the department are to:
1. (1) promote the development and maintenance of a network of transportation services for elderly individuals and individuals with disabilities throughout the state, in partnership with local stakeholders;
2. (2) promote and encourage local participation in decision-making;
3. (3) fully integrate the Section 5310 program with other federal, state, and local resources and programs that are designed to serve similar populations;
4. (4) improve the efficiency, effectiveness, and safety of Section 5310 transit systems through the provision of technical assistance; and
5. (5) include private sector operators in the overall plan to provide transportation services for elderly individuals and individuals with disabilities.
(c) Department role. The department acts as the designated recipient for all Section 5310 funds appropriated to the state. As the administering agency, the department will:
1. (1) develop application materials and disseminate information to prospective applicants and other interested parties;
2. (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. (3) prepare the state's annual program of projects and funding application and submit that material to the FTA for approval;
4. (4) negotiate and execute contracts with local Section 5310 recipients;
5. (5) prepare requests for federal reimbursement and process payment requests from Section 5310 recipients;
6. (6) monitor and evaluate the progress of ongoing transportation operations, including compliance with federal regulations and coordination of services; and
7. (7) provide technical assistance to Section 5310 recipients to aid them in improving and coordinating transit services.
(d) Eligible recipients. Existing rural and urban transit districts and metropolitan transit authorities will be the primary recipients of funds from this program for their respective service areas. For those areas not covered by transit providers, or in cases where the existing provider is not willing and able to provide the transportation, the director may choose an alternative primary recipient. Private, nonprofit organizations and associations are eligible to receive Section 5310 funds as secondary recipients. Local public bodies approved by the state to coordinate transportation services, as selected in subsection (i) of this section, and any public body that certifies to the selecting entity that nonprofit organizations in the area are not readily available to carry out the services, may also receive Section 5310 funds as secondary recipients. Examples of local public bodies approved by the state to coordinate transportation services are a county agency on aging and a public transit provider that the state has identified as the lead agency to coordinate transportation services funded by multiple federal or state human service programs.
(e) Eligible assistance categories. The following categories of expenses are eligible for federal reimbursement under the Section 5310 program.
1. (1) State administrative expenses. The department may use up to 10% of the annual federal program apportionment to defray its expenses incurred for the administration of the Section 5310 program. State administrative expenses do not require a non-federal match.
2. (2) Capital expenses.
  1. (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:
    1. (i) buses;
    2. (ii) vans or other paratransit vehicles;
    3. (iii) radios and communication equipment;
    4. (iv) vehicle shelters;
    5. (v) wheelchair lifts and restraints;
    6. (vi) vehicle rehabilitation, remanufacture, or overhaul, if done with the concurrence of the department;
    7. (vii) microcomputer hardware and software;
    8. (viii) initial component installation costs;
    9. (ix) vehicle procurement, testing, inspection, and acceptance costs;
    10. (x) vehicle extended warranties that do not exceed industry standards;
    11. (xi) the lease of equipment, provided that the local recipient, with the concurrence of the department, determines a lease is more cost effective than the purchase of equipment after considering management efficiency, availability of equipment, staffing capabilities and guidelines on capital leases as contained in 49 CFR Part 639;
    12. (xii) the acquisition of transportation services under a contract, lease, or other arrangement;
    13. (xiii) the acquisition of preventive maintenance services and vehicle parts associated with preventive maintenance services, with the concurrence of the department;
    14. (xiv) transit-related intelligent transportation systems;
    15. (xv) the introduction of new technology, through innovative and improved products, into mass transportation; and
    16. (xvi) support for new mobility management and coordination programs among public transportation providers and other human service agencies providing transportation.
  2. (B) When a subrecipient chooses to include the acquisition of transportation services under a contract, lease or other arrangement, both capital and operating costs associated with the contracted services are eligible expenses. User-side subsidies are considered one form of eligible arrangement. The department, as the recipient, has the option to decide whether to provide funding for these acquired services. Funds may be requested for contracted services covering a period of more than one year.
  3. (C) Based on funding availability, federal funds may be used to defray up to 80% of the cost of eligible capital expenditures. The federal share may increase to up to 90% for incremental costs related to compliance with the Clean Air Act in areas of air quality non-attainment or with the Americans with Disabilities Act of 1990, with concurrence from the department. The federal share may also increase in accordance with 23 U.S.C. 120(b)(2) as determined by FTA regarding the area of nontaxable Indian land, public domain lands (reserved and unreserved), national forest, and national parks and monuments. Eligibility standards for the higher federal share are defined in FTA Circular 9070.1F, or its latest version.
(f) Local share requirements. The local share required must be provided from sources other than federal funds except when authorized by federal law.
(g) Funding distribution.
1. (1) Formula basis. The balance of the annual Section 5310 federal apportionment, after the state administrative expenses described in subsection (e)(1) of this section are set aside, will be allocated to districts on a formula basis as follows.
  1. (A) 25% of the total available funds will be distributed equally among the districts.
  2. (B) 75% of the total available funds will be allocated as follows.
    1. (i) The population of elderly individuals and individuals with disabilities in each district will be calculated by using the latest census figures for counties available from the United States Census Bureau.
    2. (ii) Each district's subtotal of the population of elderly individuals and individuals with disabilities will then be divided by the state total of that population to determine the district's formula allocation.
2. (2) Allocation.
  1. (A) Preliminary formula allocations for the next fiscal year will be announced by the department no later than January 1.
  2. (B) Final allocations will be announced within 30 days of the federal apportionment to the state.
  3. (C) Upon completion of the project selection procedures described in subsection (i) of this section, if a district does not need the entire allocation, the commission or the executive director will distribute the balance to the remaining districts in accordance with paragraph (1)(B) of this subsection or to individual projects identified in subsection (i)(1) of this section.
(h) Application requirements. A prospective applicant must submit an application for Section 5310 grant funds to the appropriate district office on the forms and at the time specified by the department. The application must document the need and demand for passenger transportation services for elderly individuals and individuals with disabilities.
(i) Project selection. The district office will consult with all local parties, including any existing MPOs. Up to 10% of a district's annual allocation or suballocation may be reserved for contingencies or unidentified projects in keeping with the Category C allowances in the program of projects that is described in subsection (k) of this section. Project selection will be as follows.
1. (1) The district office will select projects in priority order as described in subsection (j) of this section, including up to five reserve projects should additional funding be made available, based on the following criteria:
  1. (A) the demonstrated need for capital equipment, examples of which include, but are not limited to, a needs assessment that documents the demand for new services, a vehicle inventory that establishes the need for replacement of older equipment, dispatcher logs that document requests for service that cannot be met with existing equipment, and purchase of service contracts that substantiate the need for additional vehicles;
  2. (B) the applicant's financial and managerial capability to maintain and operate the equipment, examples of which include, but are not limited to, audited financial statements and review letters from grantor agencies;
  3. (C) the applicant's efforts to coordinate services and related activities with other local entities, examples of which include, but are not limited to, contracts that outline purchase of service agreements, shared maintenance or dispatching functions, and joint training initiatives; and
  4. (D) evidence of local support for the proposal, examples of which include, but are not limited to, resolutions by local governing bodies and endorsement letters from other organizations or individuals.
2. (2) Upon receipt of the applications selected for funding from the district offices, the director, or the director's designee, will review all funding requests for completeness and compliance with all statutory and program administrative requirements. The department will negotiate a contract with the selected local entities and organizations to implement the projects selected for funding.
(j) Transportation planning and development for elderly individuals and individuals with disabilities.
1. (1) Planning and development process. In urbanized and nonurbanized areas each district will establish, after consultation with local stakeholders, a local planning and development process. The local planning and development process will result in a three-year transit development plan, updated annually, that will demonstrate and include:
  1. (A) a process for public involvement;
  2. (B) the identification and evaluation of service delivery resources;
  3. (C) the promotion of a transportation network;
  4. (D) the evaluation of the efficiency and effectiveness of the transportation network;
  5. (E) the creation of the district-wide program of transit projects;
  6. (F) recommendations for projects to be included in local Transportation Improvement Programs; and
  7. (G) the selection of projects in nonurbanized areas for inclusion into the Statewide Transportation Improvement Program.
2. (2) Annual report. Each district will submit an annual report to the Public Transportation Division no later than October 1st. The October 1st report will include an annual program of projects prioritizing projects selected for funding and information related to the project selection process.
(k) Program of projects. Upon completion of the evaluation and selection of projects, the department will prepare a program of projects as described in FTA Circular 9070.1F, or its latest version. Projects listed in category A of the program of projects are those that have met all statutory and administrative requirements for project approval and for which contracts will be issued upon receipt of federal grant approval. A selected project that is not yet complete will be listed in category B and a contract will not be issued until all requirements are met. Up to 10% of the annual federal apportionment may be listed as a program reserve in category C. Projects advance to the next category in the program until all listings are in category A.
(l) Vehicle leasing. Vehicles acquired under the Section 5310 program may be leased to other entities such as local public bodies or agencies, other private non-profit agencies, or private for-profit operators. The lessee shall operate the vehicles on behalf of the Section 5310 recipient and provide the transportation services as described in the original grant application.
(m) Incidental vehicle use. A vehicle that is purchased with Section 5310 funds may be used for incidental uses that do not conflict with the primary use of the vehicle to provide transportation services for elderly individuals and individuals with disabilities. Examples of permissible incidental uses are: allowing riders who are neither elderly nor disabled to occupy vacant seats, delivering meals, or using the vehicle for other public transportation activities when it is not required for elderly individuals or individuals with disabilities project purposes. The vehicle shall not be altered in any way to accommodate incidental use.

Source Note:The provisions of this §31.31 adopted to be effective August 14, 1989, 14 TexReg 3704; amended to be effective July 20, 1992, 17 TexReg 4891; amended to be effective November 21, 1994, 19 TexReg 8776; amended to be effective February 15, 2001, 26 TexReg 1365; amended to be effective April 17, 2003, 28 TexReg 3080; amended to be effective February 21, 2008, 33 TexReg 1380.