As a public entity, Capital Metro is prohibited by Texas law from entering into a traditional collective bargaining agreement with a labor union in the United States. In 1991, however, to comply fully with a state law prohibiting public entities from supervising unionized employees with collective bargaining rights, the Capital Metro board determined that its unionized employees and their supervisors should be transferred to a separate non-profit company. In January 1992, Capital Metro created Startran, Inc., a private entity that acts as the authority's agent in managing its unionized workforce.