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