1. (a) Purpose. This section describes reporting requirements for recipients of state and federal public transportation grant funds and monitoring activities to be performed by the department.

2. (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. (1) Accident reports. Subrecipients shall report all accidents that meet criteria established by the department. The subrecipient shall submit the report within five days of the accident or discovery of the accident.
   2. (2) Asset inventory. Each subrecipient shall provide information on state and federally funded equipment as described in §31.50 of this title (relating to Recordkeeping and Inventory Requirements).
   3. (3) Charter service. Section 5311 subrecipients shall provide charter service only under the specific circumstances established by the FTA. Operators shall advise the department of any charter service provided and the exemption under which charter service is provided.
   4. (4) Disadvantaged Business Enterprises and Historically Underutilized Businesses. Subrecipients shall submit reports in accordance with §9.54 of this title (relating to Good Faith Effort).

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

      1. (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.

         1. (i) Service efficiency - Operating expense per vehicle revenue hour and operating expense per vehicle revenue mile.
         2. (ii) Cost effectiveness - Operating expense per unlinked passenger trip.
         3. (iii) Service effectiveness - Unlinked passenger trips per vehicle revenue mile and unlinked passenger trips per vehicle revenue hour.
         4. (iv) Safety - Total accidents per 100,000 miles of service and average number of miles between road calls.

      2. (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.

         1. (i) Service efficiency - Cost per vehicle mile and average vehicle utilization.
         2. (ii) Cost effectiveness - Cost per unlinked passenger trip.
         3. (iii) Service effectiveness - Unlinked passenger trips per capita and unlinked passenger trips per vehicle mile.
         4. (iv) Safety - Total accidents per 100,000 miles of service and average number of miles between road calls.
   6. (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.

   7. (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:

      1. (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
      2. (B) favorable developments and events that will enable meeting time schedules and goals sooner than anticipated or producing more work units than originally projected.
   8. (8) Rail Transit Agency Report. Rail Transit Agency Reports shall be submitted in accordance with §31.61 and §31.65 of this chapter.
   9. (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.

3. (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. (1) Civil rights. The department will monitor Section 5310 and Section 5311 subrecipients for compliance with Title VI Civil Rights requirements.

   2. (2) Drugs and alcohol.

      1. (A) Each Section 5311 subrecipient and each of its subcontractors with safety-sensitive employees shall have policies and programs in place that comply with drug and alcohol standards established by the FTA. The department will monitor subrecipients for compliance with these regulations. In addition, the FTA requires each subrecipient to file a calendar year report (January 1 - December 31) with the department on drug and alcohol testing and compliance activities.
      2. (B) Each Section 5310 subrecipient shall comply with Federal Highway Administration requirements for drug and alcohol compliance if it owns a vehicle that requires a commercial drivers license to operate. The department will monitor Section 5310 subrecipients for compliance with these regulations.
   3. (3) Fiscal responsibility. The district employee responsible for coordinating the district's public transportation program will make on-site quarterly visits to review agency financial records that support requests for payment.
   4. (4) Insurance. Subrecipients of state or federal funds through the department shall insure all facilities, equipment, and vehicles from loss. Checks for appropriate insurance levels will occur at the time the local agency renews its policies.
   5. (5) Maintenance. Subrecipients are required to have written maintenance plans, schedules, and logs to ensure the proper care and longevity of vehicles and facilities in accordance with §31.53 (c) of this chapter. The plans, schedules, and logs are subject to periodic on-site inspection by the department.
   6. (6) Meal delivery. State and FTA funded vehicles shall be used only for incidental meal delivery that does not interfere with passenger transportation. Special warming, cooling, or carrying racks shall not be installed in the vehicles. Physical inspection of vehicles may occur at any time.
   7. (7) Procurement. The district employee responsible for coordinating the district's public transportation program will work with subrecipients to ensure that procurement activities meet applicable state and federal requirements and that all required documents are received and actions completed in a timely manner. Checksheets developed by the department will be maintained by the district to ensure all benchmark activities are accomplished in the proper sequence.

4. (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. (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 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. (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, 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 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 subcontractor is ineligible for financial assistance because of a major deficiency may be appealed in accordance with the provisions of §1.21 et seq. of this title (relating to Procedures in Contested Cases).

Source Note:The provisions of this §31.48 adopted to be effective August 11, 1994, 19 TexReg 5880; amended to be effective February 15, 2001, 26 TexReg 1365.