1. (a) Purpose. This section describes reporting requirements for designated recipients and subrecipients 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) Incident reports. Subrecipients shall report all incidents that meet criteria established by the department. The subrecipient shall submit the report within five days of the incident or discovery of the incident.
   2. (2) Asset inventory. Each subrecipient shall provide information on state and federally funded equipment as described in §31.50 of this chapter.
   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 Historically Underutilized Business (HUB) Program).

   5. (5) Operations reports. All FTA designated recipients and subrecipients shall submit quarterly and annual operations reports.

      1. (A) Pursuant to 49 U.S.C. §5311 and §5335, subrecipients of assistance under Section 5311 shall submit to the department data required by the department for reporting to the National Transit Database.

      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 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 incidents 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.

      3. (C) 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--Operating expense per vehicle mile.
         2. (ii) Cost effectiveness--Operating expense per unlinked passenger trip.
         3. (iii) Service effectiveness--Unlinked passenger trips per capita and unlinked passenger trips per vehicle mile.
         4. (iv) Safety--Total incidents 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.

   6. (6) 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.
   7. (7) Rail Transit Agency Report. Rail Transit Agency Reports shall be submitted in accordance with §31.61 of this chapter.
   8. (8) 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 and the subrecipient at least quarterly will discuss problems encountered by the subrecipient, 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 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, 5316, and 5317 subrecipient shall comply with Federal Motor Carrier Safety Administration requirements for drug and alcohol compliance if it owns a vehicle that requires a commercial driver's license to operate. If the subrecipient also receives Section 5307 or 5311 funding, the subrecipient shall include Section 5310, 5316, and 5317 employees in their FTA testing program.
   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(d) of this chapter. The plans, schedules, and logs are subject to periodic on-site inspection by the department.
   6. (6) Incidental vehicle use. A vehicle purchased with federal or state funds may be used for incidental uses that do not conflict with the primary purposes for which the vehicle was purchased. An example of permissible incidental use is using the vehicle for other public transportation activities when it is not required for project purposes. The vehicle shall not be altered in any way to accommodate an incidental use.
   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 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.
   2. (2) Major deficiencies. A major deficiency is cited when the department finds that a subrecipient has pursued actions that are illegal or that pose a safety hazard to employees, passengers, or other members of the public. Examples include 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 address the deficiency immediately. The subrecipient's compliance will be verified by department personnel. If the subrecipient does not comply 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.

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; amended to be effective April 17, 2003, 28 TexReg 3080; amended to be effective February 21, 2008, 33 TexReg 1380.