S.B. No. 650
AN ACT
relating to management of certain metropolitan rapid transit
authorities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 451, Transportation Code, is amended by
adding Subchapter C-1 to read as follows:
SUBCHAPTER C-1. ADDITIONAL MANAGEMENT PROVISIONS FOR CERTAIN
AUTHORITIES
Sec. 451.131. APPLICABILITY. This subchapter applies only
to an authority confirmed before July 1, 1985, in which the
principal municipality has a population of less than one million.
Sec. 451.132. FIVE-YEAR CAPITAL IMPROVEMENT PLAN. (a) The
board shall adopt a five-year plan for capital improvement projects
that supports the strategic goals outlined in Section 451.135 and
that:
(1) describes planned projects, including type and
scope;
(2) prioritizes the projects;
(3) addresses proposed project financing, including
any effect a project may have on ongoing operational costs;
(4) identifies sources of funding for projects,
including local and federal funds; and
(5) establishes policies for projects, including
policies on:
(A) planning;
(B) approval;
(C) cost estimation;
(D) project reports;
(E) expense tracking;
(F) participation of historically underutilized
businesses; and
(G) cost-benefit analyses.
(b) The board shall hold a public meeting on a proposed
capital improvement plan before adopting the plan and must make the
proposed plan available to the public for review and comment.
(c) The board shall annually reevaluate and, if necessary,
amend the capital improvement plan to ensure compliance with this
section.
(d) The capital improvement plan should, as appropriate,
align with the long-range transportation plan of the metropolitan
planning organization that serves the area of the authority.
(e) The board may not adopt a plan for participation of
historically underutilized businesses in capital improvement
projects that require a quota or any similar requirement. The board
may not conduct a capital improvement project in a way that has the
effect of creating a quota for the participation of historically
underutilized businesses.
Sec. 451.133. OPERATING EXPENSES AND CAPITAL EXPENDITURES.
(a) An authority may not spend for capital improvements money in
excess of the total amount allocated for major capital expenditures
in the annual budget.
(b) The board shall adopt rules requiring each major
department of the authority to report quarterly on operating
expenses and capital expenditures of the department.
(c) The board shall establish a system for tracking the
progress of the authority's capital improvement projects.
(d) The board shall maintain, update, and post on the
authority's Internet website accounting records for each authority
account, including:
(1) the account's balance at the end of the fiscal
year;
(2) deposits to the account;
(3) account expenditures; and
(4) interest income to the account.
Sec. 451.134. OPERATING RESERVE ACCOUNT. (a) The board
shall establish, in an account separate from other funds, a reserve
account in an amount that is not less than an amount equal to actual
operating expenses for two months.
(b) The board shall adjust the amount held in the reserve
account at least once annually based on the authority's actual
operating reserves for the 12 months immediately preceding the
adjustment.
(c) The board may make an expenditure from the reserve
account that causes the balance in the account to be less than the
amount required under Subsection (b) only if the board considers
the expense necessary to address circumstances that could not have
been planned for or anticipated. The board shall adopt criteria for
expenditures under this subsection.
(d) If reserve funds are spent under Subsection (c), the
board shall, as soon as practicable, restore the balance of the
reserve account to at least the amount in the account at the
beginning of the fiscal year in which the spending occurred.
(e) The board shall maintain, update, and post on the
authority's Internet website accounting records of the reserve
account's:
(1) balance at the end of the fiscal year;
(2) deposits;
(3) expenditures; and
(4) interest income.
Sec. 451.135. STRATEGIC PLAN. (a) The board shall adopt a
strategic plan that establishes the authority's mission and goals
and summarizes planned activities to achieve the mission and goals.
(b) The plan must set policies and service priorities to
guide the authority in developing a budget and allocating
resources.
(c) The plan should, as appropriate, align with the
long-range transportation plan of the metropolitan planning
organization that serves the area of the authority.
(d) The board shall annually reevaluate and, if necessary,
amend the plan to ensure compliance with this section.
Sec. 451.136. RAIL SAFETY PLAN AND REPORTS. (a) The board
shall adopt and the general manager shall implement a rail safety
plan in accordance with federal and industry standards for all
authority rail activities, including commuter and freight rail
activities.
(b) The plan must address and emphasize ongoing maintenance
and safety of the authority's railroad bridges.
(c) To ensure that contractor services on the authority's
rail system meet safety obligations, the plan must include
specifics regarding monitoring of contractors for safety-related
performance, including regular:
(1) hazard analyses;
(2) risk assessments; and
(3) safety audits.
(d) The general manager shall report quarterly to the board
on the safety of the authority's rail system. The authority shall
provide to the Texas Department of Transportation all reports
provided to the Federal Railroad Administration or Federal Transit
Administration regarding any aspect of the rail system's safety at
the time the reports are delivered to the Federal Railroad
Administration or Federal Transit Administration.
Sec. 451.137. COMPETITIVE BIDS FOR AND PURCHASE OF TRANSIT
SERVICES. (a) Except as provided by Subsection (f), after
providing notice of a proposal, a board must submit to competitive
bids a contract for and must purchase transit services that:
(1) include:
(A) administration of motor bus or sedan transit
services;
(B) motor bus or sedan driving, maintenance, or
repair;
(C) transit services for persons who have
disabilities, including through a program established under
Section 451.254; or
(D) rail transit services; and
(2) are not provided wholly by an employee of the
authority who is directly paid by the authority and works under the
daily supervision of the authority's general manager.
(b) For the purposes of Subsection (a)(2), services are not
provided wholly by an employee of the authority if the person is an
employee of an entity incorporated as a state nonprofit by the board
of the authority and with which the authority contracts for transit
or employee services.
(c) Notice under Subsection (a) must be published in a
newspaper of general circulation in the area in which the authority
is located at least once each week for eight consecutive weeks
before the date set for receiving the bids. The first notice must
be published at least 60 days before the date set for receiving
bids.
(d) A contract let under this section must include:
(1) performance control measures;
(2) incentives for performance;
(3) penalties for noncompliance; and
(4) a contract termination date.
(e) The board shall adopt rules on:
(1) the taking of bids;
(2) the awarding of contracts; and
(3) the waiver of the competitive bidding requirement
if there is:
(A) an emergency; or
(B) only one source for the service or purchase.
(f) Subsection (a) does not apply to a contract or purchase:
(1) in an amount of $25,000 or less;
(2) for personal or professional services; or
(3) for the acquisition of an existing transit system.
Sec. 451.138. PUBLIC INVOLVEMENT POLICY. (a) The board
shall adopt a policy of involving the public in board decisions
regarding authority policies. The policy must:
(1) ensure that the public has an opportunity to
comment on board matters before a vote on the matters;
(2) ensure that any consent agenda or expedition of
consideration of board matters at board meetings is used only for
routine, noncontroversial matters;
(3) establish a time frame and mechanism for the board
to obtain public input throughout the year; and
(4) plan for dissemination of information on how the
public can be involved in board matters.
(b) The board shall post the policy adopted under this
section on the authority's Internet website.
Sec. 451.139. ISSUANCE OF BONDS FOR SELF-INSURANCE OR
RETIREMENT OR PENSION FUND RESERVES. (a) An authority may issue
bonds only in an amount necessary for managing or funding retiree
pension benefit obligations for pension plans existing as of
January 1, 2011, and that result from the competitive bidding of
transit services required by Section 451.137.
(b) Section 451.352(c) does not apply to bonds described by
Subsection (a).
SECTION 2. Section 451.610, Transportation Code, is amended
to read as follows:
Sec. 451.610. CONTINUATION OF SERVICES TO PERSONS WITH
DISABILITIES. (a) An authority shall continue to provide
transportation services for persons with disabilities in a
withdrawn unit of election. The authority may not charge a fare for
transportation services to persons with disabilities in the
withdrawn unit that is more than the fare for those services for
persons in the authority.
(b) An authority shall provide the same level of
transportation services under Subsection (a) to persons with
disabilities in a unit of election that withdrew from the authority
before January 1, 2011, as those persons received on January 1,
2011. This subsection applies only to an authority to which
Subchapter C-1 applies.
SECTION 3. Subchapter M, Chapter 451, Transportation Code,
is amended by adding Section 451.6101 to read as follows:
Sec. 451.6101. CONTINUATION OF SERVICES TO PERSONS WITH
DISABILITIES; ALTERNATIVE PROGRAM. (a) This section applies only
to an authority to which Subchapter C-1 applies.
(b) Notwithstanding Section 451.610, an authority shall
establish an alternative program to provide transportation
services to persons with disabilities in a withdrawn unit of
election who are eligible to receive services under the program. An
authority shall require interested persons with disabilities to
apply to be program participants. The program must be available to
a person with a disability who:
(1) resides, at the time of application to the
program, in a withdrawn unit of election;
(2) can prove, at the time of application, residence
in the corporate limits of the withdrawn unit of election as those
limits existed at the time of the withdrawal and continuous
residence in the corporate limits of the withdrawn unit of election
since withdrawal;
(3) meets eligibility criteria established by the
authority for demand-responsive transportation service for persons
with disabilities and can prove, at the time of application, that
the person has had the same disability since the unit of election
withdrew; and
(4) applies to the program before January 1, 2012.
(c) The program must:
(1) include only transportation services that meet the
requirements of all applicable federal laws, rules, or regulations;
and
(2) include transportation services between the
residence of a program participant and a destination within the
authority's service area or a destination within the withdrawn unit
of election where the person with a disability resides that is:
(A) the participant's place of work or a place
where the participant is seeking employment;
(B) a physician's office;
(C) a pharmacy;
(D) the participant's place of voting;
(E) a grocery store within five miles of the
participant's residence or within the withdrawn unit of election;
or
(F) a government building.
(d) Subsection (c)(1) does not expand the service area or
add to the destinations in Subsection (c)(2).
(e) The requirement for transportation services to a
grocery store under Subsection (c)(2)(E) is for services once per
week. The requirement for transportation services to a government
building under Subsection (c)(2)(F) is for services twice per week.
(f) A withdrawn unit of election must reimburse the
authority for the costs of all services in the manner provided by
Section 451.616 unless otherwise agreed to in a memorandum of
understanding between the authority and the withdrawn unit of
election.
(g) A withdrawn unit of election that does not provide
transportation services to a program participant in the withdrawn
unit of election through a third-party service provider shall
provide the participant with use of the authority's transportation
services. If a withdrawn unit of election chooses to have a
third-party service provider provide services under this
subsection, the authority may, with the withdrawn unit's consent:
(1) provide necessary dispatch services; and
(2) ensure the provider receives payment from the
withdrawn unit of election.
(h) An individual may not receive transportation services
under the program and subsequently receive transportation services
under Section 451.610.
(i) A person who ceases to reside in the withdrawn unit of
election may not continue as a program participant.
(j) This section and any program established under this
section expire on January 1, 2020.
SECTION 4. Subsection (a), Section 451.133, Transportation
Code, as added by this Act, applies only to a budget adopted on or
after September 1, 2012.
SECTION 5. Not later than September 1, 2016, a metropolitan
rapid transit authority required to establish a reserve account
under Section 451.134, Transportation Code, as added by this Act,
shall establish the account. Not later than December 31, 2014, the
authority shall file a report on the authority's progress in
fulfilling this requirement with the lieutenant governor, speaker
of the house of representatives, and each member of the
legislature.
SECTION 6. Not later than September 30, 2012, a
metropolitan rapid transit authority required by Section 451.132,
Subsection (c), Section 451.133, and Sections 451.135, 451.136, and
451.138, Transportation Code, as added by this Act, to establish a
five-year capital improvement plan, a capital improvement projects
tracking system, a strategic plan, a rail safety plan, and a public
involvement policy, respectively, shall develop the plans, policy,
and system.
SECTION 7. Not later than September 1, 2012, individuals
providing for a metropolitan rapid transit authority transit
services described by Section 451.137, Transportation Code, as
added by this Act, must be providing those services as employees of
the authority or under a contract or agreement that complies with
the competitive bidding and purchase requirements of that section.
SECTION 8. Not later than September 30, 2012, a
metropolitan rapid transit authority required to adopt rules under
Subsection (b), Section 451.133, Transportation Code, as added by
this Act, shall adopt those rules.
SECTION 9. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2011.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 650 passed the Senate on
April 14, 2011, by the following vote: Yeas 31, Nays 0; and that
the Senate concurred in House amendments on May 23, 2011, by the
following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 650 passed the House, with
amendments, on May 19, 2011, by the following vote: Yeas 138,
Nays 1, one present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor