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