<num value="43">TITLE 43</num><heading>TRANSPORTATION</heading><part identifier="/us/state/tx/tac/t43/p1"><num value="1">PART 1</num><heading>TEXAS DEPARTMENT OF TRANSPORTATION</heading><chapter identifier="/us/state/tx/tac/t43/p1/c1"><num value="1">CHAPTER 1</num><heading>MANAGEMENT</heading><subchapter identifier="/us/state/tx/tac/t43/p1/c1/scA"><num value="A">SUBCHAPTER A</num><heading>ORGANIZATION AND RESPONSIBILITIES</heading><section identifier="/us/state/tx/tac/t43/p1/c1/scA/s1.1"><num value="1.1">§1.1</num><heading>Texas Transportation Commission</heading><content>(a) Commission.(1) The Texas Department of Transportation is governed by the Texas Transportation Commission, consisting of five commissioners appointed by the governor with the advice and consent of the senate.(2) The governor designates one commissioner as the chair of the commission.(b) Commission responsibilities.(1) The Texas Transportation Commission, with the advice and recommendations of the executive director, will:(A) plan and make policies for the location, construction, and maintenance of a comprehensive system of state highways and public roads;(B) lay out, construct, maintain, and operate a modern state highway system;(C) develop a statewide transportation plan that contains all modes of transportation, including highways and turnpikes, aviation, mass transportation, railroads and high-speed railroads, and water traffic;(D) award contracts necessary for the improvement of the state highway system, as provided by Transportation Code, Chapter 223, and §§9.10-9.21 of this title (relating to Highway Improvement Contracts);(E) encourage, foster, and assist in the development of public and mass transportation in the state;(F) encourage, foster, and assist in the development of aeronautics in the state and encourage, aid, and assist in the establishment of airports, airstrips, and air navigational facilities in the state;(G) fulfill the local sponsorship requirements of the Gulf Intracoastal Waterway as agent for the state;(H) provide for the development and operation of toll projects on the state highway system;(I) approve a toll project constructed by a private entity or corporation if the project connects to the state highway system;(J) approve the construction of a toll project by a governmental or private entity other than a county with a population of more than 2 million people, a local government corporation created by such a county, or a regional tollway authority, if it is to become a part of the state highway system;(K) appoint an internal auditor for the department who shall report directly to the commission on the conduct of departmental affairs;(L) adopt rules for the operation of the department;(M) divide the department into districts to accomplish the department's functions and the duties assigned to it;(N) carry out such transportation functions as may be delegated by the governor pursuant to applicable federal law;(O) establish policy necessary to carry out the duties and functions of the department and the commission;(P) administer the state infrastructure bank;(Q) organize the department into divisions to accomplish the department's functions and duties assigned to it;(R) plan and make policies for the location, construction, maintenance, and operation of rail facilities;(S) administer the Texas Mobility Fund as a revolving fund to provide a method of financing the construction, reconstruction, acquisition, and expansion of state highways, and for the construction of other transportation projects;(T) approve the creation of regional mobility authorities;(U) establish a compliance program; and(V) perform other duties required by law.(2) The commission may, consistent with applicable law, delegate one or more of the functions listed under paragraph (1) of this subsection to the executive director. The executive director may further delegate such functions to one or more employees of the department.(c) Attendance at meetings. Each commissioner shall: attend at least half of the regularly scheduled meetings that the commissioner is eligible to attend during a calendar year unless the absence is excused by majority vote of the commission.(d) Chair of the commission.(1) The chair of the commission, with the advice and recommendations of the executive director and the executive director's staff, shall:(A) preside over commission meetings, make rulings on motions and points of order, and determine the order of business;(B) represent the department in dealing with the governor;(C) report suggestions made by the governor for departmental operations to the commission;(D) designate one or more employees of the department as a civil rights division of the department and receive regular reports from the division on the department's efforts to comply with civil rights legislation and administrative rules;(E) create subcommittees, appoint commissioners to subcommittees, and receive the reports of subcommittees to the commission as a whole;(F) appoint a commissioner to act in the chair's absence;(G) serve as the departmental liaison with the governor and the Office of State-Federal Relations to maximize federal funding for transportation;(H) oversee the preparation of an agenda for each commission meeting and ensure that a copy is provided to each commissioner at least seven days before a regular meeting; and(I) perform any other duties assigned by law.(2) The chair may, consistent with applicable law, delegate one or more of the functions listed under paragraph (1) of this subsection to the executive director, who in turn may further delegate such functions to one or more employees of the department.(3) The chair will designate a person to serve as a representative of the department on the Coastal Coordination Advisory Committee.</content><note type="source"><p>Source Note: The provisions of this §1.1 adopted to be effective February 23, 1993, 18 TexReg 890; amended to be effective August 23, 1996, 21 TexReg 7664; amended to be effective July 19, 1998, 23 TexReg 7241; amended to be effective January 8, 2004, 29 TexReg 226; amended to be effective December 8, 2005, 30 TexReg 8178; amended to be effective May 20, 2010, 35 TexReg 3850; amended to be effective September 15, 2011, 36 TexReg 5945.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scA/s1.2"><num value="1.2">§1.2</num><heading>Texas Department of Transportation</heading><content>(a) Executive director.(1) The commission will elect an executive director for the department who shall be skilled in transportation planning and development and in organizational management. The executive director, as the chief executive officer of the department, is authorized to administer the day-to-day operations of the department. The executive director may hold that position until removed by the commission.(2) To assist in discharging the duties and responsibilities of the executive director, the executive director may organize, appoint, and retain such administrative staff as he or she deems appropriate, including the chief financial officer of the department.(3) The executive director shall:(A) serve the commission in an advisory capacity, without vote;(B) submit quarterly, annually, and biennially to the commission detailed reports of the progress of public road construction, public and mass transportation development, and detailed statement of expenditures;(C) hire, promote, assign, re-assign, transfer, and, consistent with applicable law and policy, terminate staff necessary to accomplish the roles and missions of the department;(D) notify the chair of grounds for removal of a commissioner if the executive director knows that a potential ground for removal exists, or, if the potential ground for removal relates to the chair, notify another commissioner;(E) under the direction and with the approval of the commission, prepare a comprehensive plan providing a system of state highways; and(F) perform other responsibilities as required by law or assigned by the commission.(4) The executive director may, consistent with applicable law, delegate one or more of the functions listed under paragraph (3)(B) - (F) of this subsection to the staff of the department.(b) Department staff. The staff of the Texas Department of Transportation, under the direction of the executive director, is responsible for:(1) implementing the policies and programs of the commission by:(A) formulating and applying operating procedures; and(B) prescribing such other operating policies and procedures as may be consistent with and in furtherance of the roles and missions of the department;(2) providing the chair and commissioners administrative support necessary to perform their respective duties and responsibilities, including:(A) assigning staff to assist commissioners;(B) providing necessary office space and equipment;(C) furnishing in-house legal counsel;(D) providing all information and documents necessary for the commission to effectively perform its responsibilities; and(E) preparing an agenda under the direction of the chair, providing notice, and transcribing commission meetings and hearings as required by the Texas Open Meetings Act, Government Code, Chapter 551; and(3) performing all other duties as prescribed by law or as assigned by the commission.(c) Divisions. Consistent with commission direction provided under §1.1(b)(1)(Q) of this subchapter, the executive director shall organize the department into headquarters operating divisions reflecting the various functions and duties assigned to the department, and shall designate a division director who shall administer each division .(d) Districts.(1) District office. The department is divided into geographical districts, each containing one district office. Each district is administered by a district engineer who is a registered professional engineer and is appointed by the executive director.(2) Area office. A district contains one or more area offices, each of which is responsible for carrying out the department's primary functions at the local level for a designated geographical area. Each area office is normally administered by an area engineer who shall be a registered professional engineer.(3) Project office. A district may contain one or more project offices, which is normally responsible for a specific project within an area.(4) District Classification. Each district of the department is classified as metropolitan, urban, or rural, according to the population within the district's boundaries. A district's population is determined using the most recent population information provided to the department by the Texas Demographic Center and after the publication of the data from each federal decennial census, the department will review the population levels and recommend to the commission any adjustments to the classification criteria that it considers necessary. A district is classified as:(A) metropolitan if it has a population of more than 1 million;(B) urban if it has a population of not less than 400,000 and not more than 1 million; or(C) rural if it has a population of less than 400,000.</content><note type="source"><p>Source Note: The provisions of this §1.2 adopted to be effective February 23, 1993, 18 TexReg 890; amended to be effective August 23, 1996, 21 TexReg 7664; amended to be effective July 19, 1998, 23 TexReg 7241; amended to be effective March 19, 2000, 25 TexReg 2161; amended to be effective January 8, 2004, 29 TexReg 226; amended to be effective December 8, 2005, 30 TexReg 8178; amended to be effective January 7, 2009, 34 TexReg 65; amended to be effective December 10, 2009, 34 TexReg 8793; amended to be effective May 20, 2010, 35 TexReg 3850; amended to be effective September 15, 2011, 36 TexReg 5945; amended to be effective February 20, 2014, 39 TexReg 997;amended to be effective July 17, 2024, 49 TexReg 5160.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c1/scB"><num value="B">SUBCHAPTER B</num><heading>PUBLIC MEETINGS AND HEARINGS</heading><section identifier="/us/state/tx/tac/t43/p1/c1/scB/s1.3"><num value="1.3">§1.3</num><heading>Commission Meetings</heading><content>(a) The Texas Transportation Commission will hold at least one regular business meeting each calendar month and, subject to the call of the chair, any special or emergency meetings necessary for the performance of the commission's duties. Each meeting will be conducted in accordance with applicable provisions of the Open Meetings Act, Government Code, Chapter 551.(b) The chair or, in the chair's absence, the commissioner designated by the chair as acting chair, shall preside at all commission meetings. The chair or acting chair rules on motions and points of order and determines the order of business.(c) The chair may create subcommittees, appoint commissioners to subcommittees, and receive the reports of subcommittees to the commission as a whole. A formal meeting of a subcommittee will follow the procedures set forth in the Open Meetings Act, Government Code, Chapter 551, but compliance is not required for an informal meeting of two commissioners if the informal meeting would not otherwise be independently subject to the Open Meetings Act.</content><note type="source"><p>Source Note: The provisions of this §1.3 adopted to be effective February 23, 1993, 18 TexReg 890; amended to be effective August 23, 1996, 21 TexReg 7666; amended to be effective January 8, 2004, 29 TexReg 226; amended to be effective March 18, 2004, 29 TexReg 2691.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scB/s1.4"><num value="1.4">§1.4</num><heading>Public Access to Commission Meetings</heading><content>(a) Purpose. This section provides policies and procedures governing public access to the commission in order to facilitate that access and maximize public participation in the decision-making process, while ensuring orderly and effective conduct of meetings.(b) Posted agenda items. A person may speak before the commission on any matter on a posted agenda by submitting a request, in a form and manner as prescribed by the department, prior to the matter being taken up by the commission. A person speaking before the commission on an agenda item will be allowed an opportunity to speak:(1) prior to a vote by the commission on the item; and(2) for a maximum of three minutes, except as provided in subsection (g)(6) of this section.(c) New agenda items.(1) A person may request the addition of an item to the commission agenda by submitting, no less than 20 days prior to the date which has been set for the next meeting, the following information:(A) the name and address of the person making the request;(B) a clear and concise statement of the subject of the proposed agenda item; and(C) a brief summary of the action sought.(2) If the chair determines that the proposed item is within the jurisdiction of the department and that the proposed item concerns a matter in which there is sufficient public interest to warrant consideration by the commission as an agenda item, the chair may place the matter on the posted agenda for the next or a subsequent meeting, consistent with available time.(d) Open comment period.(1) At the conclusion of the posted agenda of each regular business meeting the commission will allow an open comment period, not to exceed one hour, to receive public comment on any other matter that is under the jurisdiction of the department.(2) A person desiring to appear under this subsection must complete a registration form, as provided by the department, prior to the beginning of the open comment period.(3) Except as provided in subsection (g)(6) of this section, each person will be allowed to speak for a maximum of three minutes for each presentation in the order in which he or she registered.(e) Disability accommodation. Persons with disabilities who have special communication or accommodation needs and who plan to attend a meeting may contact the person or office specified in the notice of the meeting. Requests should be made at least three working days before a meeting. The department will make every reasonable effort to accommodate these needs.(f) Notice. For each commission meeting an agenda will be filed with the Office of the Secretary of State in accordance with the requirements of the Open Meetings Act, Government Code, Chapter 551.(g) Conduct and decorum. The commission will receive public input as authorized by this section, subject to the following guidelines.(1) Questioning of those making presentations will be reserved to commissioners and the department's administrative staff.(2) Organizations, associations, or groups are encouraged to present their commonly held views, and same or similar comments, through a representative member where possible.(3) Presentations shall remain pertinent to the issue being discussed.(4) A person who disrupts a meeting must leave the meeting room if ordered to do so by the chair.(5) Time allotted to one speaker may not be reassigned to another speaker.(6) The time allotted for presentations or comments under this section may be increased or further limited by the chair, or, in the chair's absence, the acting chair, as may be appropriate to assure opportunity for the maximum number of persons to appear.(h) Waiver. Subject to the approval of the chair, a requirement of this section may be waived in the public interest if necessary for the performance of the responsibilities of the commission or the department.</content><note type="source"><p>Source Note: The provisions of this §1.4 adopted to be effective February 23, 1993, 18 TexReg 890; amended to be effective January 8, 2004, 29 TexReg 226; amended to be effective October 18, 2007, 32 TexReg 7298; amended to be effective December 10, 2009, 34 TexReg 8793; amended to be effective May 17, 2012, 37 TexReg 3604; amended to be effective August 17, 2016, 41 TexReg 6086.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scB/s1.5"><num value="1.5">§1.5</num><heading>Public Hearings</heading><content>(a) Subject of hearings. The commission may hold public hearings to:(1) consider the adoption of rules, in accordance with the Administrative Procedure Act, Government Code, Chapter 2001;(2) receive evidence and testimony concerning the desirability of acquiring dredge material disposal sites and of any widening, relocation, or alteration of the main channel of the Gulf Intracoastal Waterway, in accordance with Transportation Code, §51.006 and Chapter 2 of this title (relating to Environmental Review of Transportation Projects);(3) provide for public input regarding the design, schematic layout, and environmental impact of transportation projects, in accordance with Transportation Code, §203.021, and Chapter 2 of this title;(4) consider maximum prima facie speed limits on highways in the state highway system that are near public or private elementary or secondary schools or institutions of higher education, in accordance with Transportation Code, §545.357;(5) annually receive public input on the commission's highway project selection process and the relative importance of the various criteria on which the commission bases its project selection decisions, in accordance with Transportation Code, §201.602;(6) receive comments from interested parties prior to approving any financial assistance under Transportation Code, §21.111, relating to aviation facilities development; and(7) provide, when deemed appropriate by the commission or when otherwise required by law, for public input regarding any other issue under the jurisdiction of the department.(b) Authorized representative. The executive director or an employee of the department designated by the executive director may conduct public hearings held under subsection (a)(1), (3), (6), and (7) of this section.(c) Conduct and decorum. Public hearings will be conducted in a manner that maximizes public access and input while maintaining proper decorum and orderliness, and will be governed by the following guidelines.(1) Questioning of those making presentations will be reserved to commissioners, the executive director, or, if applicable, the presiding officer.(2) Organizations, associations, or groups are encouraged to present their commonly held views and same or similar comments through a representative member where possible.(3) Presentations shall remain pertinent to the issue being discussed.(4) A person who disrupts a public hearing must leave the hearing room if ordered to do so by the chair or the presiding officer.(5) Time allotted to one speaker may not be reassigned to another speaker.(d) Disability accommodation. Persons with disabilities who have special communication or accommodation needs and who plan to attend a hearing to be held by the commission may contact the person or office specified in the notice of the hearing. In the case of a hearing to be conducted by the department, those persons may contact the public affairs officer whose address and telephone number appear in the public notice for that hearing. Requests should be made at least three working days before the hearing. The department will make every reasonable effort to accommodate these needs.(e) Language accommodation. For a hearing held in an area with a substantial Spanish speaking population, the department will provide:(1) notice of the hearing in both English and Spanish; and(2) upon request, Spanish translation.</content><note type="source"><p>Source Note: The provisions of this §1.5 adopted to be effective February 23, 1993, 18 TexReg 890; amended to be effective August 23, 1996, 21 TexReg 7666; amended to be effective January 4, 2001, 25 TexReg 13006; amended to be effective January 8, 2004, 29 TexReg 226; amended to be effective December 8, 2005, 30 TexReg 8178; amended to be effective May 17, 2012, 37 TexReg 3604; amended to be effective August 17, 2016, 41 TexReg 6086.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c1/scD"><num value="D">SUBCHAPTER D</num><heading>PROCEDURE FOR ADOPTION OF RULES</heading><section identifier="/us/state/tx/tac/t43/p1/c1/scD/s1.11"><num value="1.11">§1.11</num><heading>Petition</heading><content>Any interested person, as described by Government Code, §2001.021, may petition the department requesting the adoption of a rule. Such petition must be in writing directed to the executive director at the department's headquarters building in Austin and shall contain a clear and concise statement of the substance of the proposed rule, together with a brief explanation of the purpose to be accomplished through such adoption. Within 60 days after receipt, the department will either deny the petition in writing, stating its reasons therefor, or will initiate rulemaking proceedings in accordance with the Administrative Procedure Act (Government Code, Chapter 2001, Subchapter B).</content><note type="source"><p>Source Note: The provisions of this §1.11 adopted to be effective January 1, 1976; amended to be effective January 7, 2009, 34 TexReg 66; amended to be effective August 17, 2016, 41 TexReg 6086.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scD/s1.12"><num value="1.12">§1.12</num><heading>Negotiated Rulemaking</heading><content>(a) The Texas Transportation Commission (commission) encourages the use of negotiated rulemaking for the adoption of commission rules in appropriate situations.(b) The general counsel of the Texas Department of Transportation is the commission's negotiated rulemaking coordinator. The general counsel may designate a person to perform the duties and functions of the coordinator.(c) The negotiated rulemaking coordinator, on the coordinator's own determination or on the request of the commission or the executive director, will begin the negotiated rulemaking process on a specified subject.(d) The negotiated rulemaking coordinator will follow the procedures provided in the Negotiated Rulemaking Act (Government Code, Chapter 2008) to determine whether the negotiated rulemaking process is a feasible method to develop a particular rule. If the coordinator determines that the negotiated rulemaking process is feasible and appropriate, the coordinator will ensure compliance with the Negotiated Rulemaking Act in developing the rule.</content><note type="source"><p>Source Note: The provisions of this §1.12 adopted to be effective November 17, 2011, 36 TexReg 7676.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c1/scE"><num value="E">SUBCHAPTER E</num><heading>PROCEDURES IN CONTESTED CASE</heading><section identifier="/us/state/tx/tac/t43/p1/c1/scE/s1.21"><num value="1.21">§1.21</num><heading>Scope and Purpose</heading><content>This subchapter describes the procedures to be followed in a contested case. The procedures in this subchapter may be used only if a statute provides that the matter may be the subject of a contested case hearing under the Administrative Procedure Act (Government Code, Chapter 2001) or a department rule expressly provides for a hearing under this subchapter.</content><note type="source"><p>Source Note: The provisions of this §1.21 adopted to be effective November 18, 2010, 35 TexReg 10053.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scE/s1.22"><num value="1.22">§1.22</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) APA--The Administrative Procedure Act (Government Code, Chapter 2001).(2) Contested case--A proceeding in which the legal rights, duties, or privileges of a party are to be determined after opportunity for an adjudicative hearing.(3) Department--The Texas Department of Transportation.(4) Executive director--The chief administrative officer of the department.(5) Judge--The administrative law judge assigned by the State Office of Administrative Hearings' chief administrative law judge to preside at an administrative hearing held under this subchapter.(6) Party--A person, including the department, that is named or permitted to participate in a contested case hearing by the judge.(7) Person--An individual, representative, corporation, or other entity, including any public or non-profit corporation, or any agency or instrumentality of federal, state, or local government.(8) Petition--The document that initiates a contested case hearing.(9) Petitioner--A person who files a petition under this subchapter.(10) SOAH--The State Office of Administrative Hearings.</content><note type="source"><p>Source Note: The provisions of this §1.22 adopted to be effective November 18, 2010, 35 TexReg 10053.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scE/s1.23"><num value="1.23">§1.23</num><heading>Computation of Time</heading><content>In computing a period of days for the purposes of this subchapter, unless otherwise provided by statute, the period begins on the day after the act, event, or default in question and concludes at the end of the last day of that designated period, unless that day is a Saturday, Sunday, or legal holiday on which the office of the executive director is closed, in which event the period concludes at the end of the next day that is not a Saturday, Sunday, or legal holiday.</content><note type="source"><p>Source Note: The provisions of this §1.23 adopted to be effective November 18, 2010, 35 TexReg 10053.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scE/s1.24"><num value="1.24">§1.24</num><heading>Filing of Petition; Procedure for Filing Petition and Other Documents</heading><content>(a) A person begins a contested case by filing an original and one copy of a petition with the executive director. If the petition is sent by electronic mail, the additional copy of the petition is not required.(b) Filing a document, including a petition, with the executive director must be made by:(1) sending the document by United States mail or by overnight delivery service to: Executive Director, Texas Department of Transportation, 125 East 11th Street, Austin, Texas 78701;(2) hand delivering the document to: Executive Director, Texas Department of Transportation, 125 East 11th Street, Austin, Texas; or(3) sending the document by electronic mail in accordance with subsection (e) of this section.(c) The time and date of the filing of a document, other than an electronically filed document, is determined by the file stamp affixed by the office of the executive director.(d) For a document other than a petition, only an original is required to be filed.(e) A document sent by electronic mail must be sent to CONTESTEDCASE@txdot.gov with the subject line entry of "Filing of Contested Case Matter."(f) An electronically filed document received by the department is considered to be filed at the time indicated in the header of the electronic mail containing the document.</content><note type="source"><p>Source Note: The provisions of this §1.24 adopted to be effective November 18, 2010, 35 TexReg 10053; amended to be effective October 17, 2018, 43 TexReg 6848.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scE/s1.25"><num value="1.25">§1.25</num><heading>Procedure for Service of Documents</heading><content>(a) On the date that a party files a document, other than a petition, with the executive director, the party shall also serve a copy of the document on the judge and each party or the party's authorized representative. If the judge has designated a department employee as a party in the case, the Office of the Attorney General is the employee's authorized representative and service must be made on the Office of the Attorney General rather than the employee.(b) Service of the document on the judge must be in accordance with SOAH rules. To any person other than the judge, service of the document must be made by:(1) hand-delivery;(2) regular, certified, or registered mail;(3) overnight delivery service; or(4) electronic mail, if the parties have agreed to that manner of service.(c) A person who files a document must include with the document a certificate of service that certifies compliance with this section.(d) If a certificate of service is not included with the document, the executive director may:(1) return the document;(2) send notice of noncompliance to all parties, stating the document will not be considered until all parties have been served; or(3) send a copy of the document to the judge and all parties.</content><note type="source"><p>Source Note: The provisions of this §1.25 adopted to be effective November 18, 2010, 35 TexReg 10053; amended to be effective October 17, 2018, 43 TexReg 6848.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scE/s1.26"><num value="1.26">§1.26</num><heading>Content of Petition</heading><content>(a) A petition must include:(1) the name of the petitioner;(2) a department reference number, if applicable;(3) a concise statement of the facts on which the petitioner relies, including as an attachment, if applicable, the document issued by the department that notified the petitioner of the decision or action challenged by the petitioner;(4) a statement of the relief demanded by the petitioner;(5) the names of all known persons, other than the petitioner, with an interest in the outcome of the contested case;(6) any other matter required by statute; and(7) the signature of the petitioner or the petitioner's authorized representative.(b) A petition may not include any information showing a settlement offer by a party, and may not refer to the substance of a settlement offer.(c) A petition concerning a contract claim must include a copy of the contract claim request and detailed report, if such a report is required by statute or commission rule, that provides the basis of the claim. The petition must state the date on which the petitioner received written notice of the proposed disposition of the claim. The petition and its attachments may not otherwise refer to the proposed disposition and may not include a copy of the proposed disposition.</content><note type="source"><p>Source Note: The provisions of this §1.26 adopted to be effective November 18, 2010, 35 TexReg 10053.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scE/s1.27"><num value="1.27">§1.27</num><heading>Examination by Executive Director</heading><content>(a) The executive director will examine a petition and make a preliminary determination whether the petition states a claim that entitles the petitioner to initiate a contested case, and whether the petition meets the procedural requirements of this subchapter and of the APA.(b) If the executive director determines that the petition is deficient, the executive director will give written notice to the petitioner that explains the determination. For the deficient petition to become effective, the petitioner must file a corrected petition within 20 days of the date that the petitioner receives the written notice.(c) If the department rule that authorizes a person to file a request for a contested case hearing does not expressly refer to this subchapter concerning the filing of the request then the executive director shall examine the request concerning whether it meets the requirements of that rule and not this subchapter. In accordance with subsection (b) of this section, the executive director may require the petitioner to file an amended petition that satisfies the requirements of this subchapter.(d) The executive director's preliminary determination of a petition's legal sufficiency is without prejudice to the department's right to assert in litigation that a contested case should be dismissed for any reason.</content><note type="source"><p>Source Note: The provisions of this §1.27 adopted to be effective November 18, 2010, 35 TexReg 10053.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scE/s1.28"><num value="1.28">§1.28</num><heading>Initiation of Contested Case</heading><content>(a) The executive director will refer a petition to SOAH to initiate a contested case. The executive director's referral may request that the judge consider a summary disposition of the case if the executive director believes the petition was not timely filed or fails to meet other procedural requirements.(b) The department may initiate a contested case on its own initiative in accordance with the rules of SOAH.(c) The department's office of general counsel will transmit a request to SOAH to initiate a contested case.</content><note type="source"><p>Source Note: The provisions of this §1.28 adopted to be effective November 18, 2010, 35 TexReg 10053.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scE/s1.29"><num value="1.29">§1.29</num><heading>Notice of Hearing</heading><content>(a) Issuance. The department will issue notice of a hearing in accordance with the instructions of the judge and by certified or registered mail to each party's last known address as shown in the department's records.(b) Content. The content of a notice of hearing will conform with the requirements of the APA.</content><note type="source"><p>Source Note: The provisions of this §1.29 adopted to be effective November 18, 2010, 35 TexReg 10053; amended to be effective June 15, 2016, 41 TexReg 4293.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scE/s1.30"><num value="1.30">§1.30</num><heading>Standard of Review and Burden of Proof</heading><content>(a) Except as provided in §1.31 of this subchapter (relating to Provisions for Contract Claims), the standard of review is reasonableness.(b) The applicant bears the burden of proof in a case concerning an application for a permit, license, or other approval from the department. The claimant bears the burden of proof concerning a contract claim.(c) In a proceeding concerning an enforcement matter, including the department's imposition of a sanction, penalty, or temporary or permanent cancellation of an existing permit, license, or approval, the department bears the burden of proof to show the person's violations of law or department policy. The person bears the burden of proof to show mitigating factors that show enforcement is not necessary.</content><note type="source"><p>Source Note: The provisions of this §1.30 adopted to be effective November 18, 2010, 35 TexReg 10053.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scE/s1.31"><num value="1.31">§1.31</num><heading>Provisions for Contract Claims</heading><content>(a) This section applies only to a contested case concerning a contract claim.(b) If the parties to a contract agree to submit questions that arise under the contract to the decision of a department employee, the employee's decision is final and conclusive unless in making the decision, the employee is guilty of fraud, misconduct, or such gross mistake as would imply bad faith or a failure to exercise an honest judgment.(c) This subsection applies only to a claimant's request for interest under Government Code, Chapter 2251 (the Prompt Payment Act (PPA)).(1) A determination of the application of this subsection and the amount of interest due must be made for each claim made for a good or service.(2) If a claim is resolved in favor of a claimant, interest begins to accrue on the 31st day after the date that the claimant files the claim and detailed report, if such a report is required by statute or commission rule, that provides the basis of the claim under §9.1 or §9.2 of this title (relating to Claims for Purchase Contracts and Contract Claim Procedure, respectively). If a claim is not resolved in favor of the claimant, the claimant must submit a corrected invoice and interest will accrue on the claim only if the payment of the corrected amount becomes overdue under the PPA.(3) For purposes of this subsection, a claim is resolved in favor of a claimant only if it is determined that the amount to be paid on a claim is 50 percent or more of the greater of:(A) the claimant's original claim as shown in the claim and detailed report, if required, submitted under §9.1 or §9.2 of this title; or(B) the claimant's amended claim.(d) An offer by the executive director to settle a claim under §9.1 of this title or a decision by the contract claim committee under §9.2 of this title is an offer to compromise a disputed claim. Its admission into evidence is controlled by Rule 408, Texas Rules of Evidence.</content><note type="source"><p>Source Note: The provisions of this §1.31 adopted to be effective November 18, 2010, 35 TexReg 10053.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scE/s1.32"><num value="1.32">§1.32</num><heading>Ex parte Communications</heading><content>Unless required for the disposition of an ex parte matter authorized by law or as expressly authorized by this section, during the pendency of a contested case either at SOAH or before the commission or executive director, a party, person, or representative of a party or person is prohibited from communicating directly or indirectly with any commissioner, the executive director, or the judge, concerning any issue of fact or law relative to the pending case, except after notice and with the opportunity for all parties to participate. For the purpose of using the special skills or knowledge of the department and its staff in evaluating the evidence, a commissioner, the executive director, or the judge may communicate ex parte with a department employee who has not participated in a hearing in the case without providing notice of the communication to the parties.</content><note type="source"><p>Source Note: The provisions of this §1.32 adopted to be effective November 18, 2010, 35 TexReg 10053.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scE/s1.33"><num value="1.33">§1.33</num><heading>Issuance of Subpoena or Commission to Take Deposition</heading><content>(a) On proper request by a party, the department will issue subpoenas and commissions to take depositions in accordance with the APA, unless it appears that the subpoena or commission is sought for the purpose of harassment or that the subpoena or commission would unduly inconvenience the person to whom it is addressed.(b) The party requesting the issuance of a subpoena or commission must file the request with the executive director, and serve a copy of the request on the judge and each party or the party's representative. The request must identify any documents sought with as much detail as possible and must include a statement of the documents' relevance to the issues in the case. The requestor must submit a proposed subpoena or commission that satisfies the requirements of §1.34 of this subchapter (relating to Form of Subpoena or Commission to Take Deposition).(c) Before seeking issuance of a subpoena or commission, the requestor must attempt to secure the voluntary appearance of the witness or production of materials. If this is not possible, the requestor must indicate in the request the circumstances that prevent the voluntary appearance or production.(d) Except when the department as a party requests the subpoena, the requestor must submit a deposit that will reasonably ensure payment of the witness' or deponent's expenses as required by the APA. Only a non-party witness or deponent is entitled to receive reimbursement of expenses as provided by §1.35 of this subchapter (relating to Witness Fees). The amount of the required deposit is based on an estimate of the mileage to be traveled to and from the hearing or deposition, if over 25 miles, and days expected to be spent in the hearing or deposition. The requestor shall make the deposit in the appropriate amount by certified check payable to Texas Department of Transportation and filed with the request.(e) On receipt of the deposit, the department will issue the subpoena or commission. If the requestor and witness sign an Agreement to Waive Fee, the department may issue the subpoena or commission without a witness fee deposit.(f) A party who is granted a subpoena is responsible for having the subpoena served in accordance with Rule 176.5, Texas Rules of Civil Procedure.(g) A properly issued subpoena remains in effect until the judge releases the witness or grants a motion to quash or motion for protective order.</content><note type="source"><p>Source Note: The provisions of this §1.33 adopted to be effective November 18, 2010, 35 TexReg 10053.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scE/s1.34"><num value="1.34">§1.34</num><heading>Form of Subpoena or Commission to Take Deposition</heading><content>The heading of the subpoena or commission must be "The Texas Department of Transportation." It must state the style of the case, that the case is pending before SOAH, the time and place at which the witness is required to appear, the party at whose insistence the witness is summoned, and the date of its issuance. It must be signed by the executive director, the department's general counsel, or an attorney in the department's office of general counsel. It must be addressed to any sheriff or constable of the State of Texas or other person authorized to serve subpoenas or commissions as provided in Rule 176.5, Texas Rules of Civil Procedure.</content><note type="source"><p>Source Note: The provisions of this §1.34 adopted to be effective November 18, 2010, 35 TexReg 10053.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scE/s1.35"><num value="1.35">§1.35</num><heading>Witness Fees</heading><content>(a) A person who is not a party and is compelled to attend any hearing or proceeding or to produce books, records, papers, or other objects is entitled to receive reimbursement of expenses as provided in the APA. A witness or deponent who is a department employee may receive reimbursement for expenses only to the extent allowed by applicable law and commission policy.(b) The party at whose request a witness appears or a deposition is taken shall pay the expenses to which the witness or deponent is entitled under this section, on presentation of proper vouchers sworn by the witness or deponent and approved by the judge. On the party's payment of those expenses, the department will return to the party the certified check filed with the request for subpoena or commission under §1.33 of this subchapter (relating to Issuance of Subpoena or Commission to Take Deposition).</content><note type="source"><p>Source Note: The provisions of this §1.35 adopted to be effective November 18, 2010, 35 TexReg 10053.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scE/s1.36"><num value="1.36">§1.36</num><heading>Proposal for Decision; Filing of Exceptions and Replies</heading><content>(a) Proposal for decision. For contested cases in which the judge does not have authority to issue a final decision, the judge shall prepare a proposal for decision.(b) Submission of the proposal for decision. The judge shall submit the proposal for decision to the executive director and furnish a copy to each party.(c) Exceptions and replies. A party may submit to the judge an exception to the proposal for decision or a reply to an exception. The party must file a copy of the exception to the proposal for decision or the reply with the executive director, regardless of whether the final order in the case is to be issued by the executive director or the commission.(1) To be effective:(A) an exception must be submitted to the judge and filed with the executive director within 15 days after the date that the party receives service of the proposal for decision; and(B) a reply to an exception must be submitted to the judge and filed with the executive director within 15 days of the date on which the exception is filed.(2) If the proposal for decision is served by hand delivery or by electronic mail, the date of service of the proposal is presumed to be the date of delivery. If the proposal for decision is served by regular mail, interagency mail, certified mail, or registered mail, the date of service of the proposal is presumed to be the third calendar day after the date of the mailing.(3) The judge may extend or shorten the time to file exceptions or replies.(4) The parties shall submit to SOAH and file with the executive director any motion for an extension of time to file an exception or reply not later than the fifth day before the applicable deadline for submission of the exception or reply. The motion must show either:(A) good cause for the requested extension; or(B) agreement of all other parties to the extension.(d) Judge's review of exceptions and replies. The judge shall review all exceptions and replies and notify the executive director and parties whether the judge recommends any changes to the proposal for decision.(e) Judge's authority. The judge may:(1) amend the proposal for decision in response to exceptions and replies to exceptions; and(2) correct any clerical errors in the proposal for decision.(f) Response to amended proposal. A party is not entitled to file an exception or brief in response to an amended proposal for decision.</content><note type="source"><p>Source Note: The provisions of this §1.36 adopted to be effective November 18, 2010, 35 TexReg 10053; amended to be effective October 17, 2018, 43 TexReg 6848.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scE/s1.37"><num value="1.37">§1.37</num><heading>Notification of Decision</heading><content>(a) The commission or the executive director, as specified by statute or department rule, will issue the decision in a contested case.(b) After the decision is issued under subsection (a) of this section, the executive director will send a copy of the decision to each party or the party's authorized representative in the manner required by the APA.</content><note type="source"><p>Source Note: The provisions of this §1.37 adopted to be effective November 18, 2010, 35 TexReg 10053; amended to be effective June 15, 2016, 41 TexReg 4293.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scE/s1.38"><num value="1.38">§1.38</num><heading>Motions for Rehearing</heading><content>(a) Filing motion. A party must file a motion for rehearing with the executive director within the period provided by the APA for such a filing. In addition to information required by the APA, the motion must contain:(1) the name and representative capacity of the person filing the motion;(2) the style and official docket number assigned by SOAH, and a department reference number, if applicable;(3) the date of the decision or order; and(4) a concise statement of each alleged error.(b) Reply to motion for rehearing. A reply to a motion for rehearing must be filed with the executive director within the period provided by the APA for such a reply.(c) Ruling on motion for rehearing. The commission or the executive director, as specified by statute or department rule, will rule on a motion for rehearing and issue the ruling in accordance with the APA.(d) Notice of ruling. After a ruling is issued on a motion for rehearing, the executive director will send a copy of the ruling in the manner provided by the APA to each party or the party's authorized representative.</content><note type="source"><p>Source Note: The provisions of this §1.38 adopted to be effective November 18, 2010, 35 TexReg 10053; amended to be effective June 15, 2016, 41 TexReg 4293.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c1/scF"><num value="F">SUBCHAPTER F</num><heading>ADVISORY COMMITTEES</heading><section identifier="/us/state/tx/tac/t43/p1/c1/scF/s1.80"><num value="1.80">§1.80</num><heading>Scope and Purpose</heading><content>This subchapter prescribes the uniform procedures governing the operation of committees created to advise the Texas Transportation Commission or Texas Department of Transportation.</content><note type="source"><p>Source Note: The provisions of this §1.80 adopted to be effective March 20, 1992, 17 TexReg 1745; amended to be effective January 13, 1994, 19 TexReg 89; amended to be effective January 2, 2002, 26 TexReg 11046.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scF/s1.81"><num value="1.81">§1.81</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--The Texas Transportation Commission.(2) Department--The Texas Department of Transportation.(3) Department advisory committee--Any committee created by the department or the commission for the purpose of providing advice or recommendations in a purely advisory manner regarding certain matters within the jurisdiction of the department or the commission.(4) District engineer--The chief administrative officer in charge of a district of the department.(5) Executive director--The chief executive officer of the Texas Department of Transportation.(6) Statutory advisory committee--A committee expressly created by statute for the purpose of providing advice or recommendations in a purely advisory manner regarding certain matters within the jurisdiction of the commission.</content><note type="source"><p>Source Note: The provisions of this §1.81 adopted to be effective March 20, 1992, 17 TexReg 1745; amended to be effective January 13, 1994, 19 TexReg 89; amended to be effective January 2, 2002, 26 TexReg 11046.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scF/s1.82"><num value="1.82">§1.82</num><heading>Statutory Advisory Committee Operations and Procedures</heading><content>(a) Applicability. This section applies to statutory advisory committees and governs the operation of statutory advisory committees unless it is superseded by a specific provision in §1.84 of this subchapter (relating to Statutory Advisory Committees).(b) Election of officers and terms of members.(1) Unless otherwise specified with regard to a particular committee, each committee shall elect a chair and vice-chair by majority vote of the members of the committee. The chair and vice-chair shall each be elected for a term of not less than one year and not more than two years. Once elected, the chair and vice-chair may stand for reelection, without limit on the number of consecutive terms.(2) Members shall serve on an advisory committee until new members are appointed.(c) Meetings.(1) Meeting requirements. The division designated for an advisory committee under subsection (f) of this section shall submit to the Office of the Secretary of State notice of a meeting of the advisory committee at least 10 days before the date of the meeting. The notice must provide the date, time, place, and subject of the meeting. A meeting of an advisory committee must be open to the public. An advisory committee will follow the agenda set for each meeting under paragraph (2) of this subsection. Filing of notice of meetings with the Office of the Secretary of State shall be coordinated through the department's General Counsel Division.(2) Scheduling of meetings. Meeting dates, times, places, and agendas will be set by the division designated under subsection (f) of this section. Any committee member may suggest the need for a meeting or an agenda item, provided that the committee may only discuss items that are within the committee's and the department's jurisdiction. The division designated under subsection (f) of this section will provide notice of the time, date, place, and purpose of meetings to the members, by mail, email, telephone or any combination of the three, at least 10 calendar days in advance of each meeting. All meetings must take place in Texas and must be held in a location that is readily accessible to the general public.(3) Quorum. A majority of the membership of an advisory committee, including the chairman, constitutes a quorum. The committee may act only by majority vote of the members present at the meeting.(4) Removal. A committee member may be removed at any time without cause by the person or entity that appointed the member or by that person's or entity's successor.(5) Parliamentary procedure. Parliamentary procedures for all committee meetings shall be in accordance with the latest edition of Robert's Rules of Order, except that the chair may vote on any action as any other member of the committee, and except to the extent that Robert's Rules of Order are inconsistent with any statute or this subchapter.(6) Record. Minutes of all committee meetings shall be prepared and filed with the commission. The complete proceedings of all committee meetings must also be recorded by electronic means.(7) Public information. All minutes, transcripts, and other records of the advisory committees are records of the commission and as such may be subject to disclosure under the provisions of Government Code, Chapter 552.(d) Reimbursement. The department may, if authorized by law and the executive director, reimburse a member of a committee for reasonable and necessary travel expenses. Current rules and laws governing reimbursement of expenses for state employees shall govern reimbursement of expenses for advisory committee members.(e) Conflict of interest. Advisory committee members are subject to the same laws and policies governing ethical standards of conduct as those for commission members and employees of the department.(f) Administrative support. For each advisory committee, the executive director will designate a division of the department that will be responsible for providing any necessary administrative support essential to the functions of the committee.(g) Advisory committee recommendations. In developing department policies, the commission will consider the recommendations submitted by advisory committees.(h) Manner of reporting.(1) The division designated under subsection (f) of this section shall, in writing, report to the commission an official action of a statutory advisory committee, including any advice and recommendations, prior to commission action on the issue. The chair of the advisory committee or the chair's designee will also be invited by the department to appear before the commission prior to commission action on a posted agenda item to present the committee's advice and recommendations.(2) In the event a written report cannot be furnished to the commission prior to commission action, the report may be given orally, provided that a written report is furnished within 10 days of commission action.</content><note type="source"><p>Source Note: The provisions of this §1.82 adopted to be effective March 20, 1992, 17 TexReg 1745; amended to be effective January 13, 1994, 19 TexReg 89; amended to be effective May 19, 1995, 20 TexReg 3344; amended to be effective September 22, 1995, 20 TexReg 7079; amended to be effective August 25, 1997, 22 TexReg 7508; amended to be effective June 21, 1998, 23 TexReg 6250; amended to be effective July 23, 2000, 25 TexReg 6799; amended to be effective January 2, 2002, 26 TexReg 11046; amended to be effective September 18, 2003, 28 TexReg 8003; amended to be effective December 8, 2005, 30 TexReg 8179; amended to be effective December 6, 2007, 32TexReg 8855; amended to be effective April 17, 2008, 33 TexReg 2962; amended to be effective December 10, 2009, 34 TexReg 8794; amended to be effective December 8, 2011, 36 TexReg 8239; amended to be effective December 12, 2013, 38 TexReg 8916; amended to be effective December 9, 2015, 40 TexReg 8796; amended to be effective December 6, 2017, 42 TexReg 6814; amended to be effective December 4, 2019, 44 TexReg 7414.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scF/s1.83"><num value="1.83">§1.83</num><heading>Rulemaking</heading><content>(a) Purpose. This section governs the role of a statutory advisory committee in the adoption of new or amended rules pursuant to the Administrative Procedure Act, Government Code, Chapter 2001.(b) Preliminary notification. When the department determines that it is necessary or desirable for the commission to adopt new or amended rules, the department will:(1) notify the members of the relevant advisory committee, if any, of the nature of the rulemaking, including the reasons for the rules and the general subjects to be covered; and(2) take into consideration any written responses received from committee members prior to completing the final draft of the proposed rules.(c) Final review. Upon completing a final draft of proposed rules that are subject to this section and prior to submitting the draft to the commission for proposed adoption, the department will set a meeting of the relevant advisory committee to review and comment on the rules as drafted.(d) Comment. Prior to commission adoption of proposed rules that are subject to this section, the commission will provide the advisory committee and department staff an opportunity to appear before it for the purpose of advising the commission of the advisory committee's recommendations regarding the proposed rules.(e) Emergency rules. If the department submits emergency rules to the commission under Government Code, Chapter 2001, §2001.034, it is not required to comply with subsections (b) and (c) of this section. The members of the committee will be notified in writing of the adoption of emergency rules within 10 days of commission action.(f) Waiver. A committee may elect to waive preliminary or final review of rules presented under this section.(g) Deferral. A committee may elect to defer review of rules under this section until the public comment period.</content><note type="source"><p>Source Note: The provisions of this §1.83 adopted to be effective July 23, 2000, 25 TexReg 6799; amended to be effective January 2, 2002, 26 TexReg 11046.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scF/s1.84"><num value="1.84">§1.84</num><heading>Statutory Advisory Committees</heading><content>(a) Aviation Advisory Committee.(1) Purpose. Created pursuant to Transportation Code, §21.003, the Aviation Advisory Committee provides a direct link for general aviation users' input into the Texas Airport System. The committee provides a forum for exchange of information concerning the users' view of the needs and requirements for the economic development of the aviation system. The members of the committee are an avenue for interested parties to utilize to voice their concerns and have that data conveyed for action for system improvement. Additionally, committee members are representatives of the department and its Aviation Division, able to furnish data on resources available to the Texas aviation users.(2) Membership. The commission will appoint nine members to staggered terms of three years with three members' terms expiring August 31 of each year. A majority of the members of the committee must have five years of successful experience as an aircraft pilot, an aircraft facilities manager, or a fixed-base operator. A member may not serve more than three consecutive terms on the committee.(3) Duties. The committee shall:(A) periodically review the adopted capital improvement program;(B) advise the commission on the preparation and adoption of an aviation facilities development program;(C) advise the commission on the establishment and maintenance of a method for determining priorities among locations and projects to receive state financial assistance for aviation facility development;(D) advise the commission on the preparation and update of a multi-year aviation facilities capital improvement program; and(E) perform other duties as determined by order of the commission.(4) Meetings. The committee shall meet once a calendar year and such other times as requested by the Aviation Division Director. (5) Rulemaking. Section 1.83 of this subchapter (relating to Rulemaking) does not apply to the Aviation Advisory Committee.(b) Public Transportation Advisory Committee.(1) Purpose. Created pursuant to Transportation Code, §455.004, the Public Transportation Advisory Committee provides a forum for the exchange of information between the department, the commission, and committee members representing the transit industry and the general public. Advice and recommendations expressed by the committee provide the department and the commission with a broader perspective regarding public transportation matters that will be considered in formulating department policies.(2) Membership. Members of the Public Transportation Advisory Committee shall be appointed and shall serve pursuant to Transportation Code, §455.004.(3) Duties. The committee shall:(A) advise the commission on the needs and problems of the state's public transportation providers, including recommending methods for allocating state public transportation funds if the allocation methodology is not specified by statute;(B) comment on proposed rules or rule changes involving public transportation matters during their development and prior to final adoption unless an emergency requires immediate action by the commission;(C) advise the commission on the implementation of Transportation Code, Chapter 461; and(D) perform other duties as determined by order of the commission.(4) Meetings. The committee shall meet as requested by the commission or the division designated under §1.82(f) of this subchapter (relating to Statutory Advisory Committee Operations and Procedures).(5) Public transportation technical committees.(A) The Public Transportation Advisory Committee may appoint one or more technical committees to advise it on specific issues, such as vehicle specifications, funding allocation methodologies, training and technical assistance programs, and level of service planning. (B) A technical committee shall report any findings and recommendations to the Public Transportation Advisory Committee.(c) Port Authority Advisory Committee.(1) Purpose. Created pursuant to Transportation Code, §55.006, the purpose of the Port Authority Advisory Committee is to provide a forum for the exchange of information between the commission, the department, and committee members representing the maritime port industry in Texas and others who have an interest in maritime ports. The committee's advice and recommendations will provide the commission and the department with a broad perspective regarding maritime ports and transportation-related matters to be considered in formulating department policies concerning the Texas maritime port system.(2) Membership. Members shall be appointed pursuant to Transportation Code, §55.006. Members appointed by the commission serve staggered three-year terms unless removed sooner at the discretion of the commission.(3) Duties. The committee shall:(A) prepare a maritime port mission plan, in accordance with Transportation Code, §55.008 and submit the plan to the governor, lieutenant governor, speaker of the house of representatives and commission not later than December 1 of each even-numbered year;(B) review each project eligible to be funded under Transportation Code, Chapter 55, and make recommendations for approval or disapproval to the department; and(C) advise the commission and the department on matters relating to port authorities.(4) Meeting. The committee shall meet at least semiannually and such other times as requested by the commission, the executive director, or the executive director's designee. The chair may request the department to call a meeting.(d) Border Trade Advisory Committee.(1) Purpose. Created pursuant to Transportation Code, §201.114, the Border Trade Advisory Committee provides a forum for the exchange of communications among the commission, the department, the governor, and committee members representing border trade interests. The committee's advice and recommendations will provide the governor, the commission, and the department with a broad perspective regarding the effect of transportation choices on border trade in general and on particular communities. The members of the committee also provide an avenue for interested parties to express opinions with regard to border trade issues.(2) Membership. The border commerce coordinator designated under Government Code, §772.010, shall serve as the chair of the committee. The commission will appoint the other members of the committee in accordance with Transportation Code, §201.114. The commission will appoint members to staggered three-year terms expiring on August 31 of each year, except that the commission may establish terms of less than three years for some members in order to stagger terms.(3) Duties. The committee shall:(A) define and develop a strategy for identifying and addressing the highest priority border trade transportation challenges;(B) make recommendations to the commission regarding ways in which to address the highest priority border trade transportation challenges;(C) advise the commission on methods for determining priorities among competing projects affecting border trade; and(D) perform other duties as determined by the commission, the executive director, or the executive director's designee.(4) Meetings. The committee shall meet at least once a calendar year. The dates and times of meetings shall be set by the committee. The committee shall also meet at the request of the department. (5) Rulemaking. Sections 1.82(i) and 1.83 of this subchapter do not apply to the Border Trade Advisory Committee.(e) I-27 Advisory Committee.(1) Purpose. Created pursuant to Transportation Code, §201.623, the purpose of the I-27 Advisory Committee, as stated in subsection (b) of that section, is to provide the department with information on concerns and interests along the Ports-to-Plains Corridor, which is specified in Transportation Code, §225.069, and advise the department on transportation improvements impacting the Ports-to-Plains Corridor.(2) Membership. Composition of the committee is provided by Transportation Code, §201.623(c) and (d). A member serves in accordance with §201.623(e). The chair and vice-chair of the committee are elected in accordance with §201.623(g).(3) Duty. The duty of committee is to provide to the department the information and advice on the Ports-to-Plains Corridor for which it was formed.(4) Meeting. In accordance with Transportation Code, §201.623(h), the committee shall meet at least twice each state fiscal year and at other times, as requested by the department or the chair.(5) Compensation. In accordance with Transportation Code, §201.623(i), an advisory committee member is not entitled to receive compensation for service on the committee or reimbursement for expenses incurred in the performance of official duties as a member of the committee.</content><note type="source"><p>Source Note: The provisions of this §1.84 adopted to be effective July 23, 2000, 25 TexReg 6799; amended to be effective October 17, 2001, 26 TexReg 8193; amended to be effective January 2, 2002, 26 TexReg 11046; amended to be effective September 18, 2003, 28 TexReg 8003; amended to be effective December 8, 2005, 30 TexReg 8179; amended to be effective December 10, 2009, 34 TexReg 8794; amended to be effective December 8, 2011, 36 TexReg 8239; amended to be effective December 6, 2017, 42 TexReg 6814; amended to be effective August 15, 2018, 43 TexReg 5237; amended to be effective October 14, 2020, 45 TexReg 7279; amended to be effective December 20, 2021, 46 TexReg 8758;amended to be effective November 15, 2023, 48 TexReg 6610; amended to be effective December 3, 2025, 50 TexReg 7734.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scF/s1.85"><num value="1.85">§1.85</num><heading>Department Advisory Committees</heading><content>(a) Creation.(1) Project advisory committees.(A) Purpose. The executive director may authorize a district engineer to create, by written order, an ad hoc project advisory committee composed of the following members as may be deemed appropriate by the district engineer: department staff; affected property owners and business establishments; technical experts; professional consultants representing the department; and representatives of local governmental entities, the general public, chambers of commerce, and the environmental community. A project advisory committee shall serve the purpose of facilitating, evaluating, and achieving support and consensus from the affected community and governmental entities in the initial stages of a transportation project. Advice and recommendations of a committee provide the department with an enhanced understanding of public, business, and private concerns about a project from the development phase through the implementation phase, thus facilitating the department's communications and traffic management objectives, resulting in a greater cooperation between the department and all affected parties during project development and construction.(B) Duties. A project advisory committee shall:(i) maintain community and local government communication; and(ii) respond in a timely fashion to affected parties' concerns about project development and construction.(C) Manner of reporting. A project advisory committee shall report its advice and recommendations to the district engineer.(D) Duration. A project advisory committee may be abolished at any stage of project development, but in no event may a committee continue beyond completion of the project.(2) Rulemaking advisory committees.(A) Purpose. The commission, by order, may create ad hoc rulemaking advisory committees pursuant to Government Code, Chapter 2001, §2001.031, for the purpose of receiving advice from experts, interested persons, or the general public with respect to contemplated rulemaking.(B) Duties. A rulemaking advisory committee shall provide advice and recommendations with respect to a specific contemplated rulemaking.(C) Manner of reporting. A rulemaking advisory committee shall report its advice and recommendations to the division responsible for the development of the rules.(D) Duration. A rulemaking committee shall be abolished upon final adoption of rules by the commission.(3) Bicycle and Pedestrian Advisory Committee.(A) Purpose. The purpose of the Bicycle and Pedestrian Advisory Committee is to advise the commission on bicycle and pedestrian issues. The committee will also advise the commission on matters related to the Transportation Alternatives Program. By involving representatives of the public, including bicyclists, pedestrians, and other interested parties, the department helps ensure effective communication with the bicycle and pedestrian communities, and that the bicyclist's and pedestrian's perspectives will be considered in the development of departmental policies affecting bicycle use and pedestrian activity, including the design, construction, and maintenance of highways.(B) Duties. The committee shall:(i) review and make recommendations on items of mutual concern between the department and the bicycling and pedestrian communities;(ii) provide recommendations on the selection criteria for project applications for funding under Chapter 11, Subchapter G of this title (relating to Transportation Alternatives Set-Aside Program);(iii) in accordance with Transportation Code, §201.9025, advise and make recommendations to the commission on the development of bicycle tourism trails; and(iv) review and consider how personal mobility, or micromobility, devices relate to bicycling and pedestrian issues and to other road users.(C) Committee membership composition. Committee membership will reflect a diverse mix of bicycle and pedestrian stakeholders, including stakeholders representing the interests of persons with disabilities, and people knowledgeable about micromobility issues.(D) Manner of reporting. The committee shall report its advice and recommendations to the commission, except for matters relating to the Transportation Alternatives Program. Under the Transportation Alternatives Program, the committee shall report its recommendations to the director of the division responsible for administering the program.(4) Freight Advisory Committee.(A) Purpose. The purpose of the Freight Advisory Committee is to serve as a forum for discussion regarding transportation decisions affecting freight mobility and promote the sharing of information between the private and public sectors on freight issues. The committee's advice and recommendations will provide the department with a broad perspective regarding freight transportation matters and assist in identifying potential freight transportation facilities that are critical to the state's economic growth and global competitiveness.(B) Duties. The committee shall:(i) provide advice regarding freight-related priorities, issues, projects and funding needs;(ii) make recommendations regarding the creation of statewide freight transportation policies and performance measures;(iii) make recommendations regarding the development of a comprehensive and multimodal statewide freight transportation plan; and(iv) communicate and coordinate regional priorities with other organizations as requested by the department.(C) Manner of reporting. The committee shall report its advice and recommendations to the executive director or a department employee designated by the executive director and shall make reports to the commission as requested.(b) Operating procedures.(1) Membership. Except as otherwise specified in this section, an advisory committee shall be composed of not more than 24 members to be appointed by the division or official to whom the committee is to report. When applicable to the purpose and duties of the committee, the membership shall provide a balanced representation between:(A) industries or occupations regulated or directly affected by the department; and(B) consumers of services provided either by the department or by industries or occupations regulated by the department.(2) Meetings.(A) An advisory committee shall meet once a calendar year and at such other times as requested by the division to which it reports.(B) A majority of the membership of an advisory committee constitutes a quorum. A committee may take formal action only by majority vote of its membership.(3) Officers. Each committee shall elect a chair and vice-chair by majority vote of the members of the committee.(c) Reimbursement. The department may, if authorized by law and the executive director, reimburse a member of a committee for reasonable and necessary travel expenses. Current rules and laws governing reimbursement of expenses for state employees shall govern reimbursement of expenses for advisory committee members.</content><note type="source"><p>Source Note: The provisions of this §1.85 adopted to be effective January 13, 1994, 19 TexReg 89; amended to be effective August 9, 1994, 19 TexReg 5737; amended to be effective November 21, 1994, 19 TexReg 8768; amended to be effective March 8, 1995, 20 TexReg 1286; amended to be effective May 19, 1995, 20 TexReg 3345; amended to be effective September 22, 1995, 20 TexReg 7081; amended to be effective September 26, 1996, 21 TexReg 8954; amended to be effective August 25, 1997, 22 TexReg 7508; amended to be effective July 23, 2000, 25 TexReg 6799; amended to be effective January 2, 2002, 26 TexReg 11046; amended to be effective September 18, 2003, 28 TexReg 8003; amended to be effective April 21, 2005, 30 TexReg 2234; amended to be effective December 8, 2005, 30 TexReg 8179; amended to be effective July 20, 2006, 31 TexReg 5667; amended to be effective December 6, 2007, 32 TexReg 8855; amended to be effective December 10, 2009, 34 TexReg 8794; amended to be effective May 19, 2011, 36 TexReg 3109; amended to be effective December 8, 2011, 36 TexReg 8239; amended to be effective April 17, 2013, 38 TexReg 2377; amended to be effective December 12, 2013, 38 TexReg 8916; amended to be effective December 9, 2015, 40 TexReg 8796; amended to be effective December 6, 2017, 42 TexReg 6814; amended to be effective December 4, 2019, 44 TexReg 7414; amended to be effective March 17, 2021, 46 TexReg 1660.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scF/s1.86"><num value="1.86">§1.86</num><heading>Corridor Advisory Committees</heading><content>(a) Purpose. The commission by order may create an advisory committee for any other corridor. The purpose of an advisory committee is to facilitate and achieve support and consensus from affected communities, governmental entities, and other interested parties in the planning of transportation improvements in the corridor for which it is created and in the establishment of development plans for that corridor. An advisory committee's advice and recommendations will provide the department with an enhanced understanding of public, business, and private concerns about the corridor for which it is created, facilitating the department's communications and project development objectives and resulting in greater cooperation between the department and all affected parties during project planning and development.(b) Membership. An advisory committee may be composed of members of the following groups as deemed appropriate by the commission: affected property owners and owners of business establishments; technical experts; representatives of local governmental entities; members of the general public; economic development officials; chambers of commerce officials; members of the environmental community; department staff; and professional consultants representing the department.(c) Duties. An advisory committee shall report to the executive director its advice and recommendations on transportation improvements to be made in the corridor for which it is created, including facilities to be included in a development plan for that corridor and upgrades and other improvements to be made to existing facilities located in that corridor, and on other corridor level planning and development matters as requested by the department. The corridor advisory committee may also provide information to, coordinate with, or request information relating to the planning and development of a segment of the corridor from a corridor segment advisory committee established under §1.87 of this subchapter (relating to Corridor Segment Advisory Committees). In developing advice and recommendations, an advisory committee will evaluate economic, political, societal, and demographic population trends affecting transportation, and will consider existing facilities, upgrades to existing facilities, new or planned facilities, multimodal solutions, and available financing options.(d) Additional requirements. An advisory committee is subject to the requirements for operating procedures and reimbursement of expenses applicable to a department advisory committee under §1.85 of this subchapter (relating to Department Advisory Committees).</content><note type="source"><p>Source Note: The provisions of this §1.86 adopted to be effective September 15, 2010, 35 TexReg 8384; amended to be effective December 8, 2011, 36 TexReg 8239; amended to be effective December 12, 2013, 38 TexReg 8916; amended to be effective December 9, 2015, 40 TexReg 8796; amended to be effective December 6, 2017, 42 TexReg 6814; amended to be effective December 4, 2019, 44 TexReg 7414.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scF/s1.87"><num value="1.87">§1.87</num><heading>Corridor Segment Advisory Committees</heading><content>(a) Purpose. The commission by order may create a corridor segment advisory committee to assist the department in the transportation planning process for any highway corridor. The purpose of an advisory committee is to facilitate and achieve support and consensus from affected communities, governmental entities, and other interested parties in the planning of transportation improvements in the segment of a corridor for which it is created and in the establishment of development plans for that segment. An advisory committee's advice and recommendations will provide the department with an enhanced understanding of public, business, and private concerns about the segment for which it is created, facilitating the department's communications and project development objectives and resulting in greater cooperation between the department and all affected parties during project planning and development.(b) Membership. A corridor segment advisory committee may consist of the following members:(1) one member appointed by the county judge of each county in which the proposed segment may be located, representing the general public within the county;(2) one member appointed by each metropolitan planning organization within whose boundaries all or part of the proposed segment may be located, representing the general public within the metropolitan planning organization;(3) additional members representing the general public within cities designated by the commission, in which all or part of a proposed segment may be located, each of whom will be appointed by the mayor of a designated city; and(4) additional members, each of whom:(A) will represent, and be appointed by the governing body of, a port, chamber of commerce, economic development council or corporation, or other organization that has an interest in transportation, within whose service area all or part of a proposed segment may be located and that is designated by the commission to appoint a member of the committee; or(B) is an individual who resides or has a business in the area in which the segment may be located, has an interest in transportation, and is appointed to the committee by the commission.(c) Duties. An advisory committee shall report to the executive director its advice and recommendations on transportation improvements to be made in the segment of a corridor for which it is created, including facilities to be included in a development plan for that segment and upgrades and other improvements to be made to existing facilities located in that segment, and other segment level planning, development, and financing matters as requested by the department. A corridor segment advisory committee may provide information to, coordinate with, or request information from a corridor advisory committee created under §1.86 of this subchapter (relating to Corridor Advisory Committees). In developing advice and recommendations, a corridor segment advisory committee will evaluate economic, political, societal, and demographic population trends affecting transportation, and will consider existing facilities, upgrades to existing facilities, new or planned facilities, multimodal solutions, and available financing options.(d) Additional requirements. A corridor segment advisory committee is subject to the requirements for operating procedures applicable to a department advisory committee under §1.85 of this subchapter (relating to Department Advisory Committees).</content><note type="source"><p>Source Note: The provisions of this §1.87 adopted to be effective September 15, 2010, 35 TexReg 8384; amended to be effective December 8, 2011, 36 TexReg 8239; amended to be effective December 12, 2013, 38 TexReg 8916; amended to be effective December 9, 2015, 40 TexReg 8796; amended to be effective December 6, 2017, 42 TexReg 6814; amended to be effective December 4, 2019, 44 TexReg 7414.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scF/s1.88"><num value="1.88">§1.88</num><heading>Duration of Advisory Committees</heading><content>(a) Except as provided by this section, each statutory advisory committee or department advisory committee is abolished on December 31, 2025.(b) The following advisory committees are abolished on December 31, 2027:(1) a statutory or department advisory committee created after December 31, 2025;(2) the Aviation Advisory Committee;(3) the Public Transportation Advisory Committee;(4) the Port Authority Advisory Committee;(5) the Bicycle and Pedestrian Advisory Committee;(6) the Freight Advisory Committee; and(7) the Commission for High-Speed Rail in the Dallas/Fort Worth Region.(c) A corridor segment advisory committee created under §1.87 of this subchapter (relating to Corridor Segment Advisory Committees) after December 31, 2025 is abolished on the date provided in the minute order creating the committee or if a date is not provided in the order, on the earlier of:(1) the date of the completion of the segment for which the committee was created; or(2) December 31, 2027.(d) This section does not apply to the Border Trade Advisory Committee or the I-27 Advisory Committee.</content><note type="source"><p>Source Note: The provisions of this §1.88 adopted to be effective December 4, 2019, 44 TexReg 7414; amended to be effective December 20, 2021, 46 TexReg 8758; amended to be effective November 15, 2023, 48 TexReg 6610; amended to be effective December 3, 2025, 50 TexReg 7734.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c1/scG"><num value="G">SUBCHAPTER G</num><heading>ALTERNATIVE DISPUTE RESOLUTION</heading><section identifier="/us/state/tx/tac/t43/p1/c1/scG/s1.101"><num value="1.101">§1.101</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise.(1) Commission--The Texas Transportation Commission.(2) Department--The Texas Department of Transportation.(3) Executive director--The executive director of the Texas Department of Transportation.</content><note type="source"><p>Source Note: The provisions of this §1.101 adopted to be effective November 15, 2012, 37 TexReg 8976.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scG/s1.102"><num value="1.102">§1.102</num><heading>Policy</heading><content>In accordance with Transportation Code, §201.118, the commission encourages the use of appropriate alternative dispute resolution processes to assist in the resolution of internal and external disputes under the department's jurisdiction.</content><note type="source"><p>Source Note: The provisions of this §1.102 adopted to be effective November 15, 2012, 37 TexReg 8976.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scG/s1.103"><num value="1.103">§1.103</num><heading>Alternative Dispute Resolution Description</heading><content>Alternative dispute resolution uses a wide variety of processes that may be informal or formal and that are intended to achieve conflict resolution through agreement of the parties to the conflict. Those processes include non-binding arbitration, collaborative problem-solving, conciliation, consensus building, and mediation, and may consist of a combination of two or more of those or other dispute resolution processes. An alternative dispute resolution process is conducted by an individual who is referred to as an impartial third party.</content><note type="source"><p>Source Note: The provisions of this §1.103 adopted to be effective November 15, 2012, 37 TexReg 8976.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scG/s1.104"><num value="1.104">§1.104</num><heading>Impartial Third Party</heading><content>(a) A person may not act as an impartial third party unless the person has the qualifications specified in Civil Practice and Remedies Code, §154.052 and has no personal interest or stake in the outcome of the dispute.(b) An impartial third party is subject to the standards and duties prescribed by Civil Practice and Remedies Code, §154.053.(c) To serve as the impartial third party for an alternative dispute resolution process, a person must be approved by the parties to the process.</content><note type="source"><p>Source Note: The provisions of this §1.104 adopted to be effective November 15, 2012, 37 TexReg 8976.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scG/s1.105"><num value="1.105">§1.105</num><heading>Alternative Dispute Resolution Coordinator</heading><content>(a) The executive director shall designate a department employee as the department's alternative dispute resolution coordinator.(b) The person designated as the alternative dispute resolution coordinator must have completed a minimum of 40 classroom hours of training in dispute resolution techniques in a course conducted by an alternative dispute resolution system established under Civil Practice and Remedies Code, Chapter 152, or another dispute resolution organization approved by a court of this state at the time of or as soon as practicable after the designation.(c) The alternative dispute resolution coordinator may act as the impartial third party for an alternative dispute resolution process.(d) The alternative dispute resolution coordinator shall develop the process to be used by the department for alternative dispute resolution. The process must conform, to the extent possible, to the model guidelines issued by the State Office of Administrative Hearings for the use of alternative dispute resolution by state agencies. The process should provide the method that will be used by the coordinator for the selection of impartial third parties.(e) The alternative dispute resolution coordinator shall collect data on the effectiveness of the department's use of alternative dispute resolution and before December 31 of each year shall file with the commission a report interpreting the data collected for the preceding fiscal year.</content><note type="source"><p>Source Note: The provisions of this §1.105 adopted to be effective November 15, 2012, 37 TexReg 8976.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scG/s1.106"><num value="1.106">§1.106</num><heading>Use of Alternative Dispute Resolution</heading><content>(a) Alternative dispute resolution is available for a dispute relating to the department unless a rule of the commission provides an exclusive procedure to address that type of dispute or specifically provides that alternative dispute resolution will not be used for that type of dispute.(b) The alternative dispute resolution procedure provided under this subchapter is not applicable to:(1) employee disputes, disciplinary actions, grievances, and appeals, all of which are subject to the department's Human Resources Manual;(2) contract claims, which are subject to the procedures provided by §9.1 or §9.2 of this title (relating to Contract Claims under Government Code, Chapter 2260 or Contract Claim Procedure, respectively);(3) protests in connection with the solicitation, evaluation, or award of a purchase of commodities or non-professional services under the State Purchasing and General Services Act (Government Code, Title 10, Subtitle D), which are subject to §9.3 of this title (relating to Protest of Department Purchases under the State Purchasing and General Services Act); or(4) appeals, regardless of how denominated, that request the review of decisions that are final or not reviewable under this title or for which this title provides an exclusive appeals process.</content><note type="source"><p>Source Note: The provisions of this §1.106 adopted to be effective November 15, 2012, 37 TexReg 8976.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scG/s1.107"><num value="1.107">§1.107</num><heading>Assessment of the Use of Alternative Dispute Resolution</heading><content>(a) When the alternative dispute resolution coordinator receives a referral or request for the use of alternative dispute resolution, the coordinator will assess whether an alternative dispute resolution process is appropriate for the dispute and, if so, will determine the type of process that is most likely to result in an agreement.(b) Reasons that the coordinator may determine that the use of an alternative dispute resolution process is not appropriate include:(1) previous determinations concerning the matter in dispute provide a clearly established precedent for resolving the matter;(2) the use of an alternative dispute resolution process is an inefficient use of the department's resources compared to other processes that may be used to resolve the dispute;(3) the dispute involves significant unresolved legal issues that must be resolved before an alternative dispute resolution process is likely to be effective;(4) the dispute significantly affects organizations or individuals who would not be participants in the process and whose interests would not be adequately represented by participants; and(5) the use of an alternative dispute resolution process cannot provide a public record of the proceeding, which is important or necessary for the particular type of dispute.</content><note type="source"><p>Source Note: The provisions of this §1.107 adopted to be effective November 15, 2012, 37 TexReg 8976.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scG/s1.108"><num value="1.108">§1.108</num><heading>Confidentiality of Certain Records and Communications</heading><content>The confidentiality of a communication or record relating to an alternative dispute resolution process is governed by Civil Practice and Remedies Code, §154.073.</content><note type="source"><p>Source Note: The provisions of this §1.108 adopted to be effective November 15, 2012, 37 TexReg 8976.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c1/scM"><num value="M">SUBCHAPTER M</num><heading>DONATIONS</heading><section identifier="/us/state/tx/tac/t43/p1/c1/scM/s1.500"><num value="1.500">§1.500</num><heading>Purpose</heading><content>This subchapter establishes procedures concerning the acceptance of private gifts and donations made to the department.</content><note type="source"><p>Source Note: The provisions of this §1.500 adopted to be effective April 1, 1997, 22 TexReg 2625; amended to be effective September 23, 1997, 22 TexReg 9259.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scM/s1.501"><num value="1.501">§1.501</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--The Texas Transportation Commission.(2) Department--The Texas Department of Transportation.(3) Executive director--The executive director of the department or the executive director's designee not below the level of district engineer, division director, or special office director.(4) Gift or donation--A contribution of anything of value given to the department, but not including:(A) reimbursement for an employee's travel expenses that is received from a governmental entity that provides funding to the department;(B) reimbursement for an employee's travel expenses that is received from an organization of which the department is a member, including a federal pooled fund project; and(C) participation in the Adopt-a-Highway, Adopt-a-Highway for Landscaping, Adopt-a-Freeway, and Adopt-an-Airport programs.</content><note type="source"><p>Source Note: The provisions of this §1.501 adopted to be effective April 1, 1997, 22 TexReg 2625; amended to be effective September 23, 1997, 22 TexReg 9259; amended to be effective December 9, 2004, 29 TexReg 11370.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scM/s1.502"><num value="1.502">§1.502</num><heading>Acceptable Gifts and Donations</heading><content>The department may accept donations or gifts for the purpose of performing the department's functions and duties.</content><note type="source"><p>Source Note: The provisions of this §1.502 adopted to be effective April 1, 1997, 22 TexReg 2625; amended to be effective September 23, 1997, 22 TexReg 9259.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scM/s1.503"><num value="1.503">§1.503</num><heading>Acceptance</heading><content>(a) Acceptance of a gift or donation made to the department under this subchapter must be approved by the executive director. If the gift or donation has a value of $500 or more, it must be acknowledged by order of the commission not later than the 90th day after the date the donation is accepted by the department.(b) Except as provided in subsection (c) of this section, the executive director may approve acceptance of a gift or donation if the executive director determines that:(1) the gift or donation will further the department's responsibilities;(2) the donor is not a party to a contested case before the department, unless the decision in the case became final under Government Code, §2001.144, at least 30 days prior to the donation; and(3) the donor is not subject to department regulation or oversight, or interested in or likely to become interested in any contract, purchase, payment, or claim with or against the department.(c) The executive director may approve the acceptance of a gift or donation notwithstanding subsection (b)(3) of this section if the executive director determines that acceptance:(1) would provide a significant public benefit; and(2) would not influence or reasonably appear to influence the department in the performance of its duties.</content><note type="source"><p>Source Note: The provisions of this §1.503 adopted to be effective April 1, 1997, 22 TexReg 2625; amended to be effective September 23, 1997, 22 TexReg 9259; amended to be effective November 21, 2002, 27 TexReg 10753; amended to be effective December 9, 2004, 29 TexReg 11370; amended to be effective February 20, 2014, 39 TexReg 998.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scM/s1.504"><num value="1.504">§1.504</num><heading>Donation Agreement</heading><content>(a) Agreement. The donor and the department must execute a donation agreement if the donation involves real estate, has an estimated value of more than $1,500, or it is necessary to:(1) warrant or indemnify the department as to ownership;(2) prevent possible claims that could result from the use of the property; or(3) document conditions of the gift.(b) Content. The agreement shall include:(1) a description of the donation, including a determination of its value;(2) a statement by the donor attesting to its ownership rights in the property;(3) any conditions restricting the use of the donation;(4) the mailing address of the donor and principal place of business if the donor is a business entity;(5) a statement identifying the official relationship between the donor and the department;(6) a statement advising the donor that the department neither approves nor is responsible for any representations by the donor for tax purposes; and(7) the signature of the donor if the donor is an individual or its official representative if the donor is an entity other than an individual;(8) relocation benefits, if any; and(9) the signature of the executive director.(c) Public information. A donation agreement entered into in accordance with this subsection is public information.</content><note type="source"><p>Source Note: The provisions of this §1.504 adopted to be effective April 1, 1997, 22 TexReg 2625; amended to be effective September 23, 1997, 22 TexReg 9259; amended to be effective November 21, 2002, 27 TexReg 10753.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scM/s1.505"><num value="1.505">§1.505</num><heading>Disposition of Accepted Gift or Donation</heading><content>(a) Monetary gift or donation. The department will deposit monetary donations in the state treasury, in an approved account, to the credit of the department. The money shall be used to carry out the purposes of the department and the purposes specified by the donor.(b) Gift of tangible goods. The department's General Services Division will record or inventory a gift of tangible goods donated under this section in accordance with department procedures.(c) Real property. A deed that conveys any interest in real property to the state shall be recorded in the real property records of the county in which the real property is located, and shall be deposited and retained by the department's Right of Way Division after recordation.</content><note type="source"><p>Source Note: The provisions of this §1.505 adopted to be effective April 1, 1997, 22 TexReg 2625; amended to be effective September 23, 1997, 22 TexReg 9259.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c1/scM/s1.506"><num value="1.506">§1.506</num><heading>Private Participation in Highway Construction Projects</heading><content>(a) A private entity may participate in a department highway construction project through a gift of money or tangible goods.(b) The department may accept private participation in a department highway construction project only if it determines that the private participation will serve the interest of the traveling public.(c) A gift governed by this section must meet all the requirements of this subchapter, including, when required, commission approval and the execution of a donation agreement.(d) In addition to the requirements of §1.504 of this subchapter, a donation agreement governed by this section shall include the following provisions.(1) Funding arrangement. The agreement shall specify the portion of construction costs, as defined in §15.56 of this title (relating to Local Financing of Highway Improvement Projects on the State Highway System), to be paid by each party.(2) Indirect Costs. For service projects, as defined in §15.56 of this title, the private entity shall be responsible for all indirect costs, as identified by the department.(3) Interest. The department will not pay interest on funds provided by the private entity. Funds provided by the private entity will be deposited and retained in the state treasury.(4) Conditions. The agreement shall establish any conditions on the donation, including the method and timing of the donation. If the donation is a gift of money, full payment must be received before the department incurs any costs for the project.(5) Responsibilities of the parties. The agreement shall identify the responsibilities of each party.(6) Design and construction.(A) All aspects of the project shall be carried out in compliance with applicable federal and state laws and regulations.(B) The project shall be designed in accordance with the latest department policies, procedures, standards, and guidelines.(C) The department shall award and manage all construction work.(7) Termination. If the private entity withdraws from the project after the agreement is executed, it shall be responsible for all direct and indirect project costs incurred by the department for the portion of the project in which the private entity was participating.</content><note type="source"><p>Source Note: The provisions of this §1.506 adopted to be effective June 20, 2002, 27 TexReg 5252.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c1/scN"><num value="N">SUBCHAPTER N</num><heading>VEHICLE FLEET MANAGEMENT</heading><section identifier="/us/state/tx/tac/t43/p1/c1/scN/s1.600"><num value="1.600">§1.600</num><heading>Restrictions on Assignment of Vehicles</heading><content>(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Department--The Texas Department of Transportation.(2) Executive Director--The executive director of the Texas Department of Transportation or the director's designee not below the level of division director, district engineer, or office director.(b) Motor pool. Each department vehicle, with the exception of a vehicle assigned to a field employee, will be assigned to the department's motor pool and be available for checkout.(c) Regular vehicle assignment. The department may assign a vehicle to an individual administrative or executive employee on a regular or everyday basis only if the executive director makes a written documented finding that the assignment is critical to the needs and mission of the department.</content><note type="source"><p>Source Note: The provisions of this §1.600 adopted to be effective April 19, 2001, 26 TexReg 2852.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c1/scO"><num value="O">SUBCHAPTER O</num><heading>ELECTRONIC SIGNATURES</heading><section identifier="/us/state/tx/tac/t43/p1/c1/scO/s1.700"><num value="1.700">§1.700</num><heading>Digital Certificates</heading><content>(a) Purpose. This section prescribes the requirements that govern the issuance, use, and revocation of digital certificates issued by the department for electronic commerce in eligible department programs. Texas Administrative Code, Title 1, Part 10, Chapter 203, Subchapter B governs to the extent of any conflict between that subchapter and a provision of this section.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Business entity--An entity recognized by law through which business is conducted with the department, including a sole proprietorship, partnership, limited liability company, corporation, joint venture, educational institution, governmental agency, or non-profit organization.(2) Certificate holder--An individual to whom a digital certificate is issued.(3) Digital certificate--A certificate, as defined in Title 1, Texas Administrative Code, Chapter 203, Subchapter A, §203.1 (relating to Key Terms and Technologies for Electronic Transactions and Signed Records), issued by the department for purposes of electronic commerce.(4) Digital signature--An electronic identifier assigned in a digital certificate and intended by the person using it to have the same force and effect as the use of a manual signature for signing an electronic document.(5) Division director--The chief administrative officer of a division or office of the department.(c) Program authorization. A division director may authorize the use of digital signatures for a particular program based on whether the applicable industries or organizations are using such technology, the frequency of document submission, and the appropriateness for the program. The solicitation documentation for eligible programs will include the information that digital signatures may be used.(d) Application and issuance of digital certificate.(1) A request for a digital certificate must be in writing and must be signed by the individual authorized by the business entity to request a digital certificate.(2) The department may request information necessary to verify the identity of the individual requestor or the business entity that has authorized the request. To verify identity under this paragraph a person must present:(A) a Texas driver's license or identification certificate with a photograph that is within two years after its expiration date;(B) an unexpired United States passport;(C) a United States citizenship (naturalization) certificate with identifiable photograph;(D) an unexpired United States Bureau of Citizenship and Immigration Services document that was issued for a period of at least one year, that is valid for not less than six months from the date it is presented to the department with a completed application, and that contains verifiable data and an identifiable photograph;(E) an unexpired United States military identification card for active duty, reserve, or retired personnel with an identifiable photograph; or(F) a foreign passport with a valid or expired visa issued by the United States Department of State with an unexpired United States Bureau of Citizenship and Immigration Services Form I-94:(i) that was issued for a period of at least one year, is marked valid for a fixed duration, and is valid for not less than six months from the date it is presented to the department with a completed application; or(ii) that is marked valid for the duration of the person's stay and is accompanied by appropriate documentation.(3) The department may take actions necessary to confirm that the individual who signed the request is authorized to act on behalf of the business entity, including requiring the individual requestor or the person authorizing the request to personally appear at the department office responsible for the issuing of the certificate.(4) The department will issue a digital certificate only to an individual. Information identifying the business entity that authorized the issuance of the certificate may be embedded in the digital certificate.(e) Refusal to issue a digital certificate. The department will not issue a digital certificate if the identity of the individual to whom the certificate is to be issued or the identity of the individual requesting the certificate on behalf of a business entity cannot be established. The department will not issue a digital certificate if the business entity on whose behalf the request is allegedly being made does not authorize its issuance.(f) Responsibilities of certificate holder. A certificate holder must:(1) maintain the security of the digital certificate;(2) use the certificate solely for the purpose for which it was issued; and(3) renew the certificate in a timely manner, if continued use is intended.(g) Responsibilities of business entity. A business entity is responsible for:(1) determining the individual who may request a certificate for the business entity;(2) determining the individual to whom a certificate is to be issued; and(3) requesting within a reasonable time the revocation of its certificate if the security of the certificate has been compromised or if the business entity is changing its certificate holder.(h) Revocation of certificate. The department will revoke a digital certificate:(1) on receipt of a written request for its revocation signed by an individual authorized to act on behalf of the business entity for which it was issued;(2) for suspension or debarment of the individual or business entity; or(3) if the department has reason to believe that continued use of the digital certificate would present a security risk.(i) Use of digital certificate.(1) A digital signature assigned in a digital certificate issued by the department must be used for digitally signing electronic documents filed with the department and only such a signature may be used for that purpose. The use of the digital signature is binding on the individual to whom the certificate was issued and the represented business entity, as if the document were signed manually.(2) The department may use the digital certificate to identify the certificate holder when granting or verifying access to secure computer systems used for electronic commerce.(j) Forms. The department may prescribe forms to request, modify, or revoke a digital certificate.</content><note type="source"><p>Source Note: The provisions of this §1.700 adopted to be effective December 11, 2008, 33 TexReg 10052.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p1/c2"><num value="2">CHAPTER 2</num><heading>ENVIRONMENTAL REVIEW OF TRANSPORTATION PROJECTS</heading><subchapter identifier="/us/state/tx/tac/t43/p1/c2/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t43/p1/c2/scA/s2.1"><num value="2.1">§2.1</num><heading>Purpose of Rules</heading><content>This chapter implements Transportation Code, §§91.033, 91.034, 201.6035, 201.604, 201.606, 201.607, 201.610, 201.611, 201.617, 201.751 - 201.761, 201.762(b), 203.022, 203.052 and 222.006.</content><note type="source"><p>Source Note: The provisions of this §2.1 adopted to be effective April 16, 2012, 37 TexReg 1727; amended to be effective April 16, 2014, 39 TexReg 2941; amended to be effective July 20, 2016, 41 TexReg 5234.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scA/s2.2"><num value="2.2">§2.2</num><heading>Environmental Policy</heading><content>The Texas Transportation Commission (commission) and the Texas Department of Transportation (department) will integrate environmental considerations into department activities to achieve compliance with applicable laws, regulations and standards. The department will focus on delivering safe, efficient transportation projects and making sound decisions based on a balanced consideration of transportation needs and of social, economic and environmental impacts of proposed transportation improvements.</content><note type="source"><p>Source Note: The provisions of this §2.2 adopted to be effective April 16, 2012, 37 TexReg 1727; amended to be effective April 16, 2014, 39 TexReg 2941.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scA/s2.3"><num value="2.3">§2.3</num><heading>Applicability; Exceptions</heading><content>(a) Application of chapter. This chapter prescribes the environmental review and public participation requirements for:(1) an FHWA transportation project; or(2) any portion of a state transportation project that will take place on the state highway system or other real property owned by the department.(b) Compliance with rules of federal transportation agency other than FHWA. For transportation projects conducted or supported by a federal transportation agency other than FHWA, and for transportation projects conducted or supported by multiple federal transportation agencies and for which FHWA is not the lead federal agency, the department delegate and project sponsor will comply with the environmental review rules of the lead federal agency, and not the rules in this chapter.(c) Excepted activities. For the purposes of this chapter:(1) a contractor activity that is not directed or directly controlled by the department and that is in an area outside of the right-of-way, including a staging area, disposal site, equipment storage site, or borrow site selected by a contractor, is not part of a transportation project; and(2) the relocation of an individual, family, business, farm operation, nonprofit organization, or utility to a location outside of the right-of-way is not part of a transportation project.</content><note type="source"><p>Source Note: The provisions of this §2.3 adopted to be effective April 16, 2012, 37 TexReg 1727; amended to be effective July 20, 2016, 41 TexReg 5234; amended to be effective February 19, 2020, 45 TexReg 1040.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scA/s2.4"><num value="2.4">§2.4</num><heading>Other Applicable Laws</heading><content>For a transportation project, in addition to the requirements in this chapter, the project sponsor will ensure compliance with all other applicable local, state, and federal laws, including FHWA's rules.</content><note type="source"><p>Source Note: The provisions of this §2.4 adopted to be effective April 16, 2012, 37 TexReg 1727.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scA/s2.5"><num value="2.5">§2.5</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise.(1) Affected local government--The governing body of a county or municipality in which a project is located.(2) Best management practices--Practices that are determined to be the most efficient, practical, and cost effective measures to guide a particular activity or address a particular problem.(3) Bicycle lane--A portion of a roadway that is designated by striping, signing, or pavement markings for the exclusive use of bicyclists.(4) CE (Categorical Exclusion)--Is covered by §2.81 of this chapter (relating to Categorical Exclusions).(5) Commission--The Texas Transportation Commission.(6) DEIS (Draft Environmental Impact Statement)--Is covered by §2.84 of this chapter (relating to Environmental Impact Statements).(7) Department--The Texas Department of Transportation.(8) Disposal plan--An operationally suitable method for the placement of dredged material that avoids or minimizes adverse environmental impacts.(9) District--One of the 25 geographical districts into which the department is divided.(10) Division--One of the department's divisions listed on the department's organizational chart.(11) EA (Environmental Assessment)--Is covered by §2.83 of this chapter (relating to Environmental Assessments).(12) EIS (Environmental Impact Statement)--Is covered by §2.84 of this chapter.(13) Environmental Affairs Division--The Environmental Affairs Division of the department.(14) Environmental report--A report, form, checklist, or other documentation analyzing an environmental issue in the context of a specific transportation project or presenting a thorough summary of an environmental study conducted in support of an environmental review document, or demonstrating compliance with a specific environmental requirement. The term does not include a permit or other approval outside the scope of the environmental review process. The term also does not include an environmental issues checklist prepared to demonstrate a CE determination or a checklist used to perform a reevaluation of a project.(15) Environmental review document--An environmental assessment, an environmental impact statement, a documented reevaluation, a supplemental environmental impact statement, or, for an FHWA transportation project, a document prepared to demonstrate that it qualifies as a categorical exclusion when FHWA requires a narrative document as opposed to a checklist. An environmental review document includes any attached environmental reports.(16) FEIS (Final Environmental Impact Statement)--Is covered by §2.84 of this chapter.(17) FHWA--The United States Department of Transportation Federal Highway Administration.(18) FHWA transportation project--A transportation project for which:(A) FHWA's approval is required by law to comply with NEPA, FHWA is the lead federal agency, and FHWA agrees the department may act as the joint lead agency under 23 Code of Federal Regulations §771.109; or(B) FHWA has assigned its environmental review responsibilities under NEPA or other federal environmental laws to the department pursuant to a memorandum of understanding.(19) FONSI (Finding of No Significant Impact)--Is covered by §2.83 of this chapter.(20) Highway project--A project that is:(A) for the construction or maintenance of a highway or related improvement on the state highway system; or(B) for the construction or maintenance of a highway or related improvement not on the state highway system but that is funded wholly or partly with federal money.(21) NEPA--The National Environmental Policy Act, codified at 42 United States Code §§4321, et seq.(22) NOI (Notice of Intent)--Is covered by §2.102 of this chapter (relating to Notice of Intent (NOI)).(23) ROD (Record of Decision)--Is covered by 2.84 of this chapter.(24) SEIS (Supplemental Environmental Impact Statement)--Is covered by §2.86 of this chapter (relating to Supplemental Environmental Impact Statements).(25) Significant--As used in reference to the significance of the impact of a project, has the meaning as that term is used and has been interpreted under NEPA and its related regulations, including 40 Code of Federal Regulations §1508.27.(26) State highway system--The system of highways designated by the commission under Transportation Code, §203.002.(27) State transportation project--A transportation project that is not subject to NEPA.(28) Toll project--Has the meaning assigned by Transportation Code, §201.001.(29) Transportation project--A project to construct, maintain or improve a highway, rest area, toll facility, aviation facility, public transportation facility, rail facility, ferry, or ferry landing.</content><note type="source"><p>Source Note: The provisions of this §2.5 adopted to be effective April 16, 2012, 37 TexReg 1727; amended to be effective April 16, 2014, 39 TexReg 2941; amended to be effective July 20, 2016, 41 TexReg 5234; amended to be effective September 19, 2018, 43 TexReg 5987.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scA/s2.6"><num value="2.6">§2.6</num><heading>FHWA Transportation Projects</heading><content>(a) Applicable requirements. For an FHWA transportation project, the department delegate and project sponsor will comply with FHWA's rules concerning the environmental review of the project, as appropriate, in addition to the requirements of this chapter. To the extent there is a conflict between FHWA's rules and the requirements of this chapter, FHWA's rules will control. Project sponsors should consider FHWA's rule requirements at the outset of the environmental review process if there is any possibility that FHWA approval of the project will later be required.(b) Issuance of approval; delegation of authority.(1) For an FHWA transportation project, the entity with the authority to issue final approval of an environmental review document, or make a final determination that a project qualifies as a categorically excluded project is FHWA.(2) Notwithstanding paragraph (1) of this subsection, the department delegate may, if provided by a programmatic agreement or memorandum of understanding with FHWA, exercise approval authority in accordance with the terms of the agreement.(3) If the department assumes any of FHWA's responsibilities under a memorandum of understanding, references to FHWA in this chapter shall mean the department delegate for those responsibilities assumed by the department as described in the memorandum of understanding.(4) If the department has a programmatic agreement or memorandum of understanding with FHWA applicable to a project, the project sponsor and department delegate will comply with the terms of the agreement. If federal law, including FHWA's rules, or an agreement with FHWA conflicts with this chapter, the federal law or agreement provision controls to the extent of the conflict.</content><note type="source"><p>Source Note: The provisions of this §2.6 adopted to be effective April 16, 2012, 37 TexReg 1727; amended to be effective April 16, 2014, 39 TexReg 2941.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scA/s2.7"><num value="2.7">§2.7</num><heading>Project Sponsor</heading><content>(a) Project sponsor required. Each transportation project must have a project sponsor that accepts responsibility for preparing the environmental review document or documentation of categorical exclusion, and performing related tasks.(b) Project sponsor for projects developed by the department.(1) For transportation projects developed by the department, the project sponsor will be the department district or division that is developing the project.(2) A district or division, at its discretion, may allow a public entity that does not qualify as a project sponsor under subsection (c) of this section, a public entity that qualifies as a project sponsor under subsection (c) of this section but does not wish to be the official project sponsor, or a private entity to develop an environmental review document or documentation of categorical exclusion for the district's or division's use, but neither a public entity that does not qualify under subsection (c) of this section nor a private entity may be a project sponsor.(c) Local government as project sponsor. A local governmental entity that is eligible under this subsection may be a project sponsor for a highway project under Subchapter C of this chapter (relating to Environmental Review Process for Highway Projects) if the department approves the notice submitted by the local government under §2.47 of this chapter (relating to Approval of Local Government as Project Sponsor). To be eligible, an entity must be a municipality; a county; a group of adjoining counties; a county acting under Transportation Code, Chapter 284; a regional tollway authority operating under Transportation Code, Chapter 366; a regional mobility authority operating under Transportation Code, Chapter 370; a local government corporation; or a transportation corporation created under Transportation Code, Chapter 431.</content><note type="source"><p>Source Note: The provisions of this §2.7 adopted to be effective April 16, 2012, 37 TexReg 1727; amended to be effective April 16, 2014, 39 TexReg 2941; amended to be effective September 19, 2018, 43 TexReg 5987.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scA/s2.8"><num value="2.8">§2.8</num><heading>Department Delegate</heading><content>(a) Designation of department delegate. For each class of transportation project under Subchapter D of this chapter (relating to Requirements for Classes of Projects), the department's executive director will designate the department district division, or other operational unit of the department that has the authority to review and approve on the department's behalf work conducted under this chapter, including an environmental review document. The executive director may designate exceptions to any delegation made under this section for specific projects or types of projects.(b) Dual roles permitted. The department's executive director may designate a district or division as both the project sponsor and the department delegate for a project. If a district or division has both of those roles and this chapter requires the project sponsor to submit a document to the department delegate, the district or division will place documentation in the project file showing completion of the task by the date specified.</content><note type="source"><p>Source Note: The provisions of this §2.8 adopted to be effective April 16, 2012, 37 TexReg 1727; amended to be effective April 16, 2014, 39 TexReg 2941.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scA/s2.9"><num value="2.9">§2.9</num><heading>Emergency Action Procedures</heading><content>(a) Any request for deviations from the procedures in this chapter because of emergency circumstances will be handled on a case by case basis by the department delegate. Emergency circumstances include natural disasters, such as floods, hurricanes, tidal waves, earthquakes, severe storms, landslides, or catastrophic failures from any cause.(b) All applicable state and federal emergency environmental permitting and approval processes will be followed.(c) The work will be limited to actions that are directly related to public health and safety and that are necessary to minimize loss of public infrastructure.(d) The project file must contain copies of all coordination and approvals obtained.</content><note type="source"><p>Source Note: The provisions of this §2.9 adopted to be effective April 16, 2012, 37 TexReg 1727.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scA/s2.10"><num value="2.10">§2.10</num><heading>Computation of Time</heading><content>In computing a period of days for the purposes of this chapter, unless otherwise provided by statute, the period begins on the day after the act, event, or default in question and ends at the end of the last day of that designated period, unless that day is a Saturday, Sunday, or legal holiday on which the office of the executive director is closed, in which event the period ends at the end of the next day that is not a Saturday, Sunday, or legal holiday. All time periods and deadlines are expressed in calendar days, unless expressly provided otherwise.</content><note type="source"><p>Source Note: The provisions of this §2.10 adopted to be effective April 16, 2012, 37 TexReg 1727.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scA/s2.11"><num value="2.11">§2.11</num><heading>Employee Certification Process</heading><content>(a) Certification required. A person who is employed by a department district and holds the job title of environmental specialist must successfully complete a certification process under this section.(b) Timing. A person must successfully complete the certification process within one year after the date that the person begins employment in a district.(c) Recertification. To maintain certification under this section, a person must document that the person has attended a minimum number of hours of continuing education related to the preparation and review of environmental reports, environmental review documents, and documentation of categorical exclusions during the previous two years. The Environmental Affairs Division will set the minimum number of hours of continuing education required to be completed in each two-year period.</content><note type="source"><p>Source Note: The provisions of this §2.11 adopted to be effective April 16, 2012, 37 TexReg 1727; amended to be effective April 16, 2014, 39 TexReg 2941; amended to be effective July 20, 2016, 41 TexReg 5234.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scA/s2.13"><num value="2.13">§2.13</num><heading>Mitigation</heading><content>(a) The project sponsor will seek to avoid and minimize adverse environmental impacts.(b) If adverse environmental impacts cannot be avoided, and efforts to minimize those impacts have been exhausted, the project sponsor may, in consultation with the department delegate and appropriate agency or agencies, propose compensatory mitigation, in accordance with this section, that will be included in an environmental review document. Compensatory mitigation may rectify impacts by repairing, rehabilitating, or restoring the affected environment, or by replacing or providing for substitute resources or environments.(c) For a transportation project developed by the department, the project sponsor may propose as compensatory mitigation any of the actions described by this subsection.(1) Under Transportation Code, §201.606, if the department acquires for a transportation project property that is habitat of one or more species listed as endangered under the Endangered Species Act (16 U.S.C. §1531 et seq.) and the property is within the boundaries of a regional habitat conservation plan, the department may participate in the regional habitat conservation plan.(2) If the comptroller has designated the department to undertake functions under Government Code, Chapter 403, Subchapter Q (relating to Support for Habitat Protection Measures), the department may develop or coordinate the development of a habitat conservation plan or candidate conservation plan in accordance with that subchapter, or undertake any other actions authorized under that subchapter.(d) For a highway project developed by the department, the project sponsor may propose as compensatory mitigation any of the actions described by this subsection, in addition to those described in subsection (c) of this section.(1) Under Transportation Code, §201.617, if authorized by the appropriate regulatory agency or agencies, the department may undertake any of the following as compensatory mitigation for adverse environmental impacts that are a direct result of the construction, improvement, or maintenance of a state highway or the construction, improvement or maintenance of a facility used in connection with the construction, maintenance, or operation of a state highway:(A) payment of a fee to an appropriate public agency or private entity in lieu of acquiring or agreeing to manage property;(B) the transfer of any interest in real property to an appropriate public agency or private entity with or without monetary consideration if the property is used or is proposed to be used for mitigation purposes; or(C) a contractual agreement with any public or private entity for the management of property owned by the department and used for mitigation purposes.(2) Under Transportation Code, §201.617, before the department acquires by purchase or condemnation real property to mitigate an adverse environmental impact that is the direct result of a state highway improvement project, the department will, if authorized by the appropriate regulatory authority, offer to purchase a conservation easement from the owner of the real property. If the landowner does not accept the offer before the 61st day after the date the offer is made, the department may acquire the property by purchase or condemnation.(3) Under Transportation Code, §203.052, the department may acquire an interest in real property, a property right, or a material under Transportation Code, §203.051, if the commission determines that the acquisition is necessary or convenient to mitigate an adverse environmental effect that directly results from construction or maintenance of the state highway system.(4) Under Transportation Code, §201.610, the department may erect a sound barrier to reduce noise from a road or highway on the state highway system.(e) For highway projects for which a local government is the project sponsor and is responsible for mitigation, the local government may, in consultation with the department delegate and the appropriate agency or agencies, propose compensatory mitigation in any of the forms listed in subsection (c) or (d) of this section, or in any other form authorized by law. If the project concerns a segment of the state highway system, this chapter does not prevent a local government sponsor from seeking to use a department-funded mitigation bank for compensatory mitigation on a given project. However, as between the department and a local government sponsor, use of such a mitigation bank, and the terms of that use, will be decided by the department at its sole discretion.</content><note type="source"><p>Source Note: The provisions of this §2.13 adopted to be effective April 16, 2012, 37 TexReg 1727.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scA/s2.14"><num value="2.14">§2.14</num><heading>Project File</heading><content>The project sponsor will, as directed by the department delegate, maintain the documentation showing work completed under this chapter in a project file. If the project sponsor is a local government, prior to approval of the environmental review document or documentation of categorical exclusion, the local government will forward the project file to the department as directed by the department delegate.</content><note type="source"><p>Source Note: The provisions of this §2.14 adopted to be effective April 16, 2012, 37 TexReg 1727; amended to be effective April 16, 2014, 39 TexReg 2941; amended to be effective July 20, 2016, 41 TexReg 5234; amended to be effective September 19, 2018, 43 TexReg 5987.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c2/scC"><num value="C">SUBCHAPTER C</num><heading>ENVIRONMENTAL REVIEW PROCESS FOR HIGHWAY PROJECTS</heading><section identifier="/us/state/tx/tac/t43/p1/c2/scC/s2.41"><num value="2.41">§2.41</num><heading>Applicability and Voluntary Opt-In</heading><content>(a) This subchapter applies in its entirety to all highway projects for which an environmental review document or documentation of categorical exclusion for the project has not been provided, in whole or in part, to the department delegate as of April 16, 2012.(b) For highway projects for which an environmental review document or documentation of categorical exclusion has been provided, in whole or in part, to the department delegate as of April 16, 2012, this subchapter applies only if the project sponsor notifies the department delegate in writing that it elects to have the project processed under this subchapter, in which case the subchapter applies in its entirety.</content><note type="source"><p>Source Note: The provisions of this §2.41 adopted to be effective April 16, 2012, 37 TexReg 1727; amended to be effective April 16, 2014, 39 TexReg 2941.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scC/s2.42"><num value="2.42">§2.42</num><heading>Environmental Review Limited to Certain Projects</heading><content>(a) The project sponsor may prepare an environmental review document or documentation of categorical exclusion for a highway project only if the highway project is:(1) identified in the financially constrained portion of:(A) the approved state transportation improvement program; or(B) the approved unified transportation program; or(2) identified in a commission order as being eligible for participation under this subchapter or;(3) not required to be included in the State Transportation Improvement Program or the Unified Transportation Program under §16.103 or §16.105 of this title (relating to Statewide Transportation Improvement Program (STIP) and Unified Transportation Program (UTP), respectively).(b) Notwithstanding subsection (a) of this section, a local government may prepare an environmental review document or documentation of categorical exclusion for a highway project that is not identified in a program or by the commission as described by subsection (a) of this section if:(1) the local government pays a fee in an amount established under §2.46 of this subchapter (relating to Optional Payment of Fee by Local Government); and(2) the department delegate designates the local government as the project sponsor under §2.47 of this subchapter (relating to Approval of Local Government as Project Sponsor).(c) If a highway project is identified in the financially constrained portion of the approved state transportation improvement program or the approved unified transportation program on the date that the department delegate approves the notice submitted by a local government sponsor in accordance with §2.47 of this subchapter, it will be treated as being identified in the respective program for purposes of the department delegate's review under this subchapter even if it is later removed from the respective program.</content><note type="source"><p>Source Note: The provisions of this §2.42 adopted to be effective April 16, 2012, 37 TexReg 1727; amended to be effective April 16, 2014, 39 TexReg 2941.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scC/s2.43"><num value="2.43">§2.43</num><heading>Project Sponsor Responsibilities</heading><content>Unless the project sponsor and department delegate agree in the project scope to alternative roles and responsibilities in accordance with §2.44(d) of this subchapter (relating to Project Scope), the project sponsor for a highway project is responsible for:(1) preparing the project scope, in collaboration with the department delegate, in accordance with §2.44 of this subchapter;(2) preparing any environmental reports identified in the project scope that support an environmental review document or documentation of categorical exclusion, and performing all related studies and surveys identified in the project scope;(3) preparing the environmental review document or documentation of categorical exclusion in accordance with Subchapter D of this chapter (relating to Requirements for Classes of Projects);(4) preparing all materials for and obtaining or implementing all required permits and commitments;(5) preparing necessary materials for any required coordination and, if both the department and the entity with whom coordination is being conducted agree, conducting the coordination;(6) preparing all materials for and conducting all required and appropriate public participation in accordance with Subchapter E of this chapter (relating to Public Participation); and(7) arranging, paying for, and performing all mitigation of project impacts undertaken in accordance with §2.13 of this chapter (relating to Mitigation).</content><note type="source"><p>Source Note: The provisions of this §2.43 adopted to be effective April 16, 2012, 37 TexReg 1727; amended to be effective April 16, 2014, 39 TexReg 2941; amended to be effective September 19, 2018, 43 TexReg 5987.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scC/s2.44"><num value="2.44">§2.44</num><heading>Project Scope</heading><content>(a) Project scope required. If an environmental review document is expected to be prepared for a highway project, or if the project sponsor for a highway project is a local government and documentation of categorical exclusion is expected to be prepared for the project, the project sponsor, in collaboration with the department delegate, will prepare a detailed project scope that describes the preparation of the environmental review document or documentation of categorical exclusion and performance of related tasks. A district or division that has dual roles as both project sponsor and department delegate satisfies this requirement by placing the project scope in the project file. For purposes of this section, a project sponsor includes a local government that proposes to serve as a project sponsor and intends to seek the department's approval of such a designation under §2.47 of this subchapter (relating to Approval of Local Government as Project Sponsor).(b) Form. The project scope must be prepared using standardized information requirements approved by the Environmental Affairs Division. The Environmental Affairs Division will establish the required content for development of a project scope. A project scope may be prepared electronically in the department's environmental database. The level of detail for any issue on the scope should be commensurate with the nature of the highway project and the potential complexity and risk of the issue.(c) Optional agreement between local government project sponsor and department. Notwithstanding any provision of this subchapter, the project scope may include the department delegate's agreement to complete a task that §2.43 of this subchapter (relating to Project Sponsor Responsibilities) otherwise directs is the responsibility of the project sponsor. Any such agreement must clearly identify the task that the department delegate has agreed to complete.(d) Participation by FHWA. For a highway project for which an environmental decision requires FHWA approval, the FHWA may also be a party to the project scope. The project sponsor and department delegate will determine whether to invite FHWA to be a party to the project scope as soon as possible, but in no event later than the initial meeting between the project sponsor and the department delegate. Any matter agreed to by the project sponsor and the department delegate in the project scope, including the anticipated classification, may be subject to FHWA approval for an FHWA transportation project.(e) Deadline for issuing classification letter. For projects for which a local government proposes to be the project sponsor, the department delegate will issue to the local government on or before the 30th day after the date that the local government submits its proposed project scope to the department delegate, a letter indicating the anticipated classification of the project based on the information provided by the local government. If the department delegate indicates its approval of the project scope by signing it on or before the 30th day after the date that the local government submits its proposed project scope to the department delegate, a separate classification letter is not required.(f) Receipt of optional fee. If the project sponsor is a local government that proposes to pay an optional fee under §2.46 of this subchapter (relating to Optional Payment of Fee by Local Government), the fee must be received by the department before the department delegate may indicate its approval of the project scope by signing it.(g) Amendment of project scope. The project sponsor shall promptly notify the department delegate of any change in the description of the project. If, after completion of the project scope, there is a material change in the description of the project, or any other change that materially affects how the project sponsor will satisfy the requirements of this chapter, the project scope must be amended accordingly. An amendment must be agreed to in writing by the project sponsor and the department delegate.</content><note type="source"><p>Source Note: The provisions of this §2.44 adopted to be effective April 16, 2012, 37 TexReg 1727; amended to be effective April 16, 2014, 39 TexReg 2941; amended to be effective July 20, 2016, 41 TexReg 5234.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scC/s2.45"><num value="2.45">§2.45</num><heading>Optional Early Submittal of Environmental Reports</heading><content>(a) Submittal. The project sponsor may submit to the department delegate any environmental reports as they are developed in the course of preparing an environmental review document.(b) Review. The department delegate will review an environmental report submitted under this section and inform the project sponsor in writing of any deficiencies, flaws, or omissions within 60 days of receipt of the environmental report. The project sponsor and department delegate may agree to extend this deadline.</content><note type="source"><p>Source Note: The provisions of this §2.45 adopted to be effective April 16, 2012, 37 TexReg 1727; amended to be effective September 19, 2018, 43 TexReg 5987.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scC/s2.46"><num value="2.46">§2.46</num><heading>Optional Payment of Fee by Local Government</heading><content>(a) Applicability. This section applies to a local government that proposes to be designated the project sponsor for a highway project and also proposes to pay to the department a fee to cover the cost to review an environmental review document or documentation of categorical exclusion.(b) Effect of payment. Payment of a fee under this section allows a project sponsor that is a local government to prepare, and the department to review, an environmental review document or documentation of categorical exclusion for a highway project that does not meet the requirements of §2.42(a) of this subchapter (relating to Environmental Review Limited to Certain Projects). The department may not defer under §2.51 of this subchapter (relating to Deferral of Review) its review of an environmental review document or documentation of categorical exclusion for which a local government has paid a fee under this section.(c) Determination of fee. The amount of the fee will be determined in accordance with this subsection.(1) The local government will indicate on its proposed project scope submitted to the department delegate under §2.44 of this subchapter (relating to Project Scope) whether it is requesting calculation of an optional fee.(2) If calculation of the fee is requested by a local government, the department delegate will determine the fee for the review of the environmental review document or documentation of categorical exclusion based on the department's estimate of the actual cost of reviewing the document.(3) The department delegate will provide the local government with written notice of the calculated fee not later than the date the department delegate provides its proposed project scope.(d) Timing of payment. A local government must pay to the department any fee under this section before the department delegate may finally approve the project scope prepared under §2.44 of this subchapter.(e) Recalculation of fee. The department will recalculate the fee if, at any time, there are changes to the project description or the project classification that significantly increase the department's actual cost of reviewing the environmental review document or documentation of categorical exclusion. The local government shall pay to the department any cost increases calculated under this subsection.(f) Deposit and use. A fee received by the department under this section will be deposited in the state highway fund and used to pay costs incurred under this subchapter.(g) Additional payment; return of excess funds. If the department determines that the actual cost of reviewing a document was more than the fee collected, the local government will submit the additional payment to the department. If the department determines that the fee collected is in excess of the actual cost of reviewing a document, the excess funds paid by the local government shall be returned.</content><note type="source"><p>Source Note: The provisions of this §2.46 adopted to be effective April 16, 2012, 37 TexReg 1727; amended to be effective April 16, 2014, 39 TexReg 2941.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scC/s2.47"><num value="2.47">§2.47</num><heading>Approval of Local Government as Project Sponsor</heading><content>(a) Notice of Intent.(1) For a local government that does not pay an optional fee under §2.46 of this subchapter (relating to Optional Payment of Fee by Local Government), its provision of a proposed project scope to the department delegate will serve as the local government's notice that it intends to be the project sponsor under Transportation Code, §201.755.(2) For a local government that pays an optional fee under §2.46 of this subchapter, its payment of the fee serves as the local government's notice that it intends to be a project sponsor under Transportation Code, §201.755.(b) Determination. The department delegate will, in its sole discretion, determine whether the local government may be designated the project sponsor based on the nature and extent of the local government's and the department's involvement in the project, and whether the local government possesses the required resources and a demonstrated ability to prepare the environmental review document or documentation of categorical exclusion and perform related tasks. If the department delegate agrees that the local government may be the project sponsor, it will issue its decision in writing in the project scope prepared under §2.44 of this subchapter (relating to Project Scope). If the department delegate determines that the local government may not be the project sponsor, it will provide the reasons for its decision in writing.</content><note type="source"><p>Source Note: The provisions of this §2.47 adopted to be effective April 16, 2012, 37 TexReg 1727; amended to be effective April 16, 2014, 39 TexReg 2941.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scC/s2.48"><num value="2.48">§2.48</num><heading>Administrative Completeness Review</heading><content>(a) Administrative completeness required. All draft EAs, FEISs, documented reevaluations, and CEs for which a narrative document, rather than a checklist, is prepared must be determined to be administratively complete by the department delegate before it begins a technical review. After a document is declared to be administratively complete, no further administrative completeness review is required for future revised, amended, or final versions of that document.(b) Initiation of review. To initiate administrative completeness review of an environmental review document, the project sponsor will submit the document to the department delegate with a written statement that the document is administratively complete, ready for technical review, and compliant with all applicable requirements.(c) Project sponsor's deadline to submit certain types of documents.(1) Applicability. This subsection applies to EAs, and FEISs, but does not apply if the project sponsor is a local government that has paid a fee under §2.46 of this subchapter (relating to Optional Payment of Fee by Local Government).(2) Deadline. The project sponsor will submit to the department delegate for administrative completeness review any environmental review document subject to this subsection at least two years before the date planned for publishing notice to let the construction contract for the project, as indicated in whichever of the following documents was most recently approved:(A) the financially constrained portion of:(i) the approved state transportation improvement program; or(ii) the approved unified transportation program; or(B) a commission order identifying the project as being eligible for environmental review.(3) Date planned for publishing letting notice. If the date planned for publishing letting notice described in paragraph (2) of this subsection is identified in the applicable document only by the fiscal year, for the purposes of this subsection the date is September 1 of the previous year. If it is identified only by the calendar year, for the purposes of this subsection the date is January 1 of that year. If it is identified only by month and year, for the purposes of this section it is the first day of that month.(4) No waiting period for letting contract. This subsection does not require that the project sponsor wait any amount of time after the department delegate renders an environmental decision under §2.49 of this subchapter (relating to Technical Review) before letting the construction contract for the project.(d) Requirements for administrative completeness. The department delegate will not determine an environmental review document to be administratively complete unless it determines that:(1) the description of the project is the same as shown in the project scope prepared under §2.44 of this subchapter (relating to Project Scope) including any amendments of the project scope;(2) the document contains a discussion of each issue required to be addressed in the document by the project scope;(3) all surveys and studies required by the project scope have been completed and are documented in the environmental review document, and any environmental reports prepared have been submitted to the department delegate;(4) all coordination with agencies required by the project scope to be completed before approval of the environmental review document has been completed, and both agencies' comments and the project sponsor's responses to those comments are documented in the environmental review document;(5) any other tasks required by the project scope before submission of the environmental review document have been completed and documented; and(6) any other tasks required by the project scope to be undertaken after approval of the environmental review document are appropriately identified in writing.(e) Deadline for determination. Not later than the 20th day after the date the department delegate receives the project sponsor's environmental review document for administrative completeness review, the department delegate will:(1) issue a letter confirming that the document is administratively complete and ready for technical review; or(2) decline to issue a letter confirming that the document is administratively complete and ready for technical review, and instead send a written response to the project sponsor specifying in reasonable detail the basis for the department delegate's conclusions, including a listing of any required information determined by the department delegate to be missing from the document.(f) Cooperation by department delegate. If the department delegate declines to issue a letter confirming that an environmental review document is administratively complete under subsection (e) of this section, the department delegate will undertake all reasonable efforts to cooperate with the project sponsor in a timely manner to ensure that the environmental review document is administratively complete.(g) Re-submittal. The project sponsor may revise and re-submit any environmental review document determined by the department delegate to not be administratively complete. The department delegate will, in accordance with subsection (e) of this section, issue a determination letter on the re-submitted document not later than the 20th day after the date the department delegate receives it. There is no limit on the number of times an environmental review document may be revised and re-submitted under this subsection.</content><note type="source"><p>Source Note: The provisions of this §2.48 adopted to be effective April 16, 2012, 37 TexReg 1727; amended to be effective April 16, 2014, 39 TexReg 2941; amended to be effective July 20, 2016, 41 TexReg 5234.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scC/s2.49"><num value="2.49">§2.49</num><heading>Technical Review</heading><content>(a) Environmental issues checklist. For categorically excluded projects for which an environmental issues checklist is prepared, the department delegate will begin a technical review of the documentation of categorical exclusion when it is received from the project sponsor, or in the case of an electronic checklist, when the project sponsor indicates that the checklist is ready for review. The project sponsor shall ensure that all tasks and coordination required prior to making the environmental decision are complete when the documentation or electronic checklist is submitted for technical review.(b) Environmental review document. The department delegate will begin a technical review of a draft EA, FEIS, documented reevaluation, or a CE for which a narrative document, rather than a checklist, is prepared when the department delegate determines that it is administratively complete under §2.48 of this subchapter (relating to Administrative Completeness Review). The department delegate will begin a technical review of a DEIS when it is received from the project sponsor.(c) Purpose. The purpose of a technical review is for the department delegate to confirm that:(1) for a categorically excluded project for which an environmental issues checklist is prepared, the documentation provided by the project sponsor shows that the project qualifies as a categorically excluded project, as applicable; or(2) for all other projects, the environmental review document prepared by the project sponsor is:(A) an evaluation of all required subject areas;(B) written in a professional and understandable manner;(C) based on sound reasoning and accepted scientific and engineering principles; and(D) compliant with all applicable regulatory requirements including the requirements of Subchapter D of this chapter (relating to Requirements for Classes of Projects).(d) Disapproval. The department delegate may conclude that the environmental review document or documentation of categorical exclusion cannot be approved because it does not meet the requirements of this section. The department delegate will provide the project sponsor with a written explanation for its disapproval of an environmental review document or documentation of categorical exclusion.</content><note type="source"><p>Source Note: The provisions of this §2.49 adopted to be effective April 16, 2012, 37 TexReg 1727; amended to be effective April 16, 2014, 39 TexReg 2941; amended to be effective July 20, 2016, 41 TexReg 5234; amended to be effective September 19, 2018, 43 TexReg 5987.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scC/s2.50"><num value="2.50">§2.50</num><heading>Deadlines for Completing Certain Types of Technical Reviews; Suspension of Review Deadlines</heading><content>(a) Deadlines. This subsection sets out the deadlines that apply to the department delegate's technical review.(1) CEs. For a highway project classified as a CE, the department delegate will render an environmental decision not later than the 90th day after it receives the environmental issues checklist, or, for CEs for which an environmental review document is prepared, not later than the 90th day after it determines that the environmental review document is administratively complete under §2.48 of this subchapter (relating to Administrative Completeness Review). For purposes of this paragraph, the department delegate renders an environmental decision by:(A) approving documentation showing the project meets applicable CE criteria under §2.81 of this chapter (relating to Categorical Exclusions) or declining in writing to do so; or(B) for an FHWA transportation project, by forwarding such documentation to FHWA with an appropriate recommendation.(2) EAs. This paragraph provides the deadlines for a highway project that requires the preparation of an EA.(A) Comment deadline. The department delegate will provide to the project sponsor any department comments on the EA not later than the 90th day after the day that the department delegate determines that the EA is administratively complete under §2.48 of this subchapter.(B) Environmental decision deadline. The department delegate will render an environmental decision not later than the 60th day after the later of:(i) the date that the department delegate receives from the project sponsor a revised EA responsive to and in satisfaction of comments provided by the department delegate under subparagraph (A) of this paragraph; or(ii) the date the public participation process concludes, which is:(I) if no hearing is held and no public comments are received on the draft EA, the date on which the project sponsor submits to the department delegate a written confirmation that no further public participation is required and none will be conducted; or(II) if a hearing is held or public comments are received on the draft EA, the date that the project sponsor submits to the department delegate the documentation of public hearing required by §2.107 of this chapter (relating to Public Hearing), if applicable, and a revised EA responsive to any public comments received.(3) Rendering an environmental decision on an EA. For the purposes of paragraph (2)(B) of this subsection, the department delegate renders an environmental decision by:(A) issuing a written FONSI, as provided by §2.83 of this chapter (relating to Environmental Assessments) or declining in writing to do so; or(B) for an FHWA transportation project, forwarding the EA and other documentation to FHWA with an appropriate recommendation.(4) EISs. For a highway project that requires an EIS, the department delegate will render an environmental decision not later than the 120th day after the date the department delegate determines that the project sponsor's draft of the final EIS is administratively complete under §2.48 of this subchapter. For purposes of this paragraph, the department delegate renders an environmental decision by:(A) signing and dating the FEIS cover page as provided for by §2.84 of this chapter (relating to Environmental Impact Statements) or declining in writing to do so; or(B) for an FHWA transportation project, forwarding the FEIS to FHWA with an appropriate recommendation.(5) Reevaluations. For a highway project that requires a documented reevaluation, the department delegate will render an environmental decision not later than the 120th day after the date the department delegate determines that the documented reevaluation document is administratively complete under §2.48 of this subchapter. For the purposes of this paragraph, the department delegate renders an environmental decision by:(A) signing and dating the documented reevaluation or declining in writing to do so; or(B) for an FHWA transportation project, forwarding the documented reevaluation to FHWA with an appropriate recommendation.(b) Suspension of technical review deadlines.(1) Amendments, corrections, and revisions.(A) If, at any time during its technical review, the department delegate identifies deficiencies, errors, or needed revisions in an environmental review document or documentation of categorical exclusion, the department delegate will notify, in writing, the project sponsor that it is suspending its technical review, and identify any needed amendments, corrections, and revisions.(B) The department delegate will provide to the project sponsor any comments, if possible, in a single set of comments unless the project sponsor and department delegate agree to process comments in batches, which may result in multiple suspensions of the technical review deadline under this subsection.(C) The project sponsor may make any corrections or revisions to the environmental review document or documentation of categorical exclusion identified by the department delegate, and re-submit the revised documentation in whole or in part, as appropriate, for continuation of technical review.(D) The department delegate's compliance with the deadlines set forth in subsection (a) of this section is suspended from the time the department delegate provides written notice under subparagraph (A) of this paragraph until the time the project sponsor re-submits the environmental review document or documentation of categorical exclusion, in whole or in part, in accordance with subparagraph (C) of this paragraph.(2) Additional work regarding highway project.(A) If, at any time during technical review, the project becomes the subject of additional work, including a design change or identification and resolution of new significant issues, the project sponsor will notify the department delegate in writing.(B) If the department delegate determines that a design change is material, compliance with the deadlines set forth in subsection (a) of this section is suspended from the time the department delegate provides written notice of its determination to the project sponsor until the project sponsor gives written notice to the department delegate that the additional work is completed and, if appropriate, submits a revised environmental review document or documentation of categorical exclusion, in whole or in part, reflecting the outcome of the additional work.(C) If as a result of additional work the classification of the project changes, technical review under this section is terminated, and the project sponsor may submit the new environmental review document or documentation of categorical exclusion to the department delegate under §2.48 of this subchapter.(3) Issues raised by the department's legal counsel. If, at any time during technical review, the department delegate provides written notice to the project sponsor of an issue concerning compliance with applicable law identified by the department's legal counsel, compliance with the deadlines set forth in subsection (a) of this section is suspended from the time the department delegate provides that notice until the time that the project sponsor provides a satisfactory written response to the department delegate and, if appropriate, submits a revised environmental review document or documentation of categorical exclusion, in whole or in part, reflecting any warranted changes.(4) Number of suspensions. There is no limit on the number of times technical review of an environmental review document or documentation of categorical exclusion may be suspended as provided by this subsection. The department will use its best efforts to minimize the number and duration of suspensions of technical reviews.(5) Suspension by agreement. The project sponsor and department delegate may suspend compliance with the deadlines set forth in subsection (a) of this section at any time by written agreement, in which case the deadlines are suspended until the project sponsor and department delegate lift the suspension and resume technical review by written agreement.</content><note type="source"><p>Source Note: The provisions of this §2.50 adopted to be effective April 16, 2012, 37 TexReg 1727; amended to be effective April 16, 2014, 39 TexReg 2941; amended to be effective July 20, 2016, 41 TexReg 5234.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scC/s2.51"><num value="2.51">§2.51</num><heading>Deferral of Review</heading><content>(a) Deferral. Not later than 20 days after the date that the project sponsor submits an EA or FEIS, the department delegate may defer undertaking administrative completeness review and technical review of the document if the department delegate, in its sole discretion, determines that it lacks resources to timely review and process all environmental review documents and documentation of categorical exclusion that have been, or are expected to be submitted for review. On deferral, the review deadlines set forth in §2.48 of this subchapter (relating to Administrative Completeness Review) and §2.50 of this subchapter (relating to Deadlines for Completing Certain Types of Technical Reviews; Suspension of Review Deadlines) do not apply.(b) Projects eligible for deferral. The only types of environmental review documents that are subject to possible deferral under this section are EAs and FEISs. However, the department delegate may not defer review of an EA or FEIS for any project for which a local government sponsor has paid a fee under §2.46 of this subchapter (relating to Optional Payment of Fee by Local Government).(c) Notice to project sponsor. The department delegate will provide written notice to the project sponsor of any determination to defer review of a document under this section.(d) Deadline for review of deferred projects. The department delegate will render an environmental decision on a project for which review of the environmental review document is deferred under this section not later than one year before the date that is planned for publishing notice to let the construction contract for the project, as indicated in whichever of the following documents was most recently approved:(1) the financially constrained portion of the approved:(A) state transportation improvement program; or(B) unified transportation program; or(2) a commission order identifying the project as being eligible for environmental review.(e) Date planned for publishing letting notice. If the date planned for publishing letting notice described in subsection (d) of this section is identified in the applicable document only by the fiscal year, for the purposes of this subsection the date is September 1 of the previous year. If it is identified only by the calendar year, for the purposes of this subsection the date is January 1 of that year. If it is identified only by month and year, for the purposes of this section it is the first day of that month.(f) No waiting period for letting. Subsection (d) of this section does not require the project sponsor to wait any amount of time after the department delegate renders an environmental decision before letting the construction contract for the project.</content><note type="source"><p>Source Note: The provisions of this §2.51 adopted to be effective April 16, 2012, 37 TexReg 1727; amended to be effective April 16, 2014, 39 TexReg 2941.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scC/s2.52"><num value="2.52">§2.52</num><heading>Dispute Resolution Process</heading><content>(a) Informal resolution. The project sponsor and department delegate will attempt to informally resolve any dispute concerning implementation of this subchapter before using other methods of dispute resolution. The informal dispute resolution procedures described in the project scope shall be implemented in accordance with the deadlines indicated in the project scope.(b) Project sponsor is a department district or division. If a project sponsor is a department district or division, a dispute between the project sponsor and department delegate concerning implementation of this subchapter that cannot be resolved informally under subsection (a) of this section will be brought to the attention of and resolved by the department's executive director within 60 days after that date that the project sponsor or department delegate requests resolution.(c) Project sponsor is a local government. If the project sponsor is a local government, disputes between the project sponsor and department delegate concerning implementation of this subchapter that cannot be resolved informally under subsection (a) of this section will be resolved according to the procedures set out in this subsection.(1) The project sponsor and department delegate will ask their respective attorneys to meet and attempt to resolve the dispute.(2) If the project sponsor's and department delegate's respective attorneys are unable to resolve the dispute, the project sponsor or department delegate may refer the dispute to mediation or other alternative dispute resolution process for resolution. The project sponsor and the department will share equally the expenses of the mediation or other alternative dispute resolution process.(3) Any mediation or other alternative dispute resolution process must be concluded not later than the 60th day after the first date that either the project sponsor or the department delegate requests dispute resolution under paragraph (2) of this subsection.</content><note type="source"><p>Source Note: The provisions of this §2.52 adopted to be effective April 16, 2012, 37 TexReg 1727; amended to be effective April 16, 2014, 39 TexReg 2941.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c2/scD"><num value="D">SUBCHAPTER D</num><heading>REQUIREMENTS FOR CLASSES OF PROJECTS</heading><section identifier="/us/state/tx/tac/t43/p1/c2/scD/s2.81"><num value="2.81">§2.81</num><heading>Categorical Exclusions</heading><content>(a) Applicability.(1) This section applies to a transportation project that is classified by the department delegate as a CE. A CE is a category of actions that have been found to have no significant effect on the environment, individually or cumulatively.(2) This section applies to a transportation project that is a state transportation project or an FHWA transportation project, except that subsection (e) of this section applies only if the project is an FHWA transportation project.(3) This section does not apply to the purchase of an option to acquire real property, or to the exercise of an option or other early and advance acquisition of land.(b) Approval for classification as CE.(1) If the project sponsor satisfies the requirements of this subsection the department delegate may approve the classification of a transportation project as a CE.(2) Except as provided in paragraph (4) of this subsection, the project sponsor will submit to the department delegate an environmental issues checklist, prepared electronically in the department's environmental database, showing compliance with the section. The checklist does not constitute an environmental review document. FHWA may require an environmental review document for one of its projects, in which case the project sponsor must submit to the department delegate a brief environmental review document discussing and analyzing the potential environmental impacts. If the department delegate determines that a transportation project qualifies as a CE, it will document that determination in the project file.(3) The environmental issues checklist must show that the project does not violate the restrictions in subsection (c) of this section and that significant environmental impacts will not result based on the results of an evaluation of the project.(4) The department's environmental affairs division may direct that certain types of projects meeting specified criteria be processed as CEs, without preparation of individual environmental issues checklists, by recording verification that the project meets the specified criteria.(c) Restrictions on classification.(1) A CE project directly, indirectly, or cumulatively, may not:(A) induce significant impacts to planned growth or land use for the area;(B) cause any significant environmental impacts to any natural, cultural, recreational, historic, or other resource;(C) cause any significant impacts to air, noise, or water quality;(D) relocate significant numbers of people; or(E) cause significant impacts on travel patterns.(2) The CE action may not involve unusual circumstances such as:(A) significant environmental impacts;(B) substantial controversy on environmental grounds; or(C) inconsistencies with federal or state law.(d) Categories of projects. For a state transportation project or an FHWA transportation project, the categories of projects listed at 23 C.F.R. §771.117(c) and (d) normally will qualify as categorical exclusions, unless unusual circumstances make the project ineligible for designation as a categorical exclusion under subsection (c) of this section. The categories of projects listed at 23 C.F.R. §771.117(c) and (d) are not the only types of projects that may qualify as categorical exclusions.(e) FHWA transportation projects.(1) For an FHWA transportation project, in addition to subsections (a) - (d) of this section, the department delegate and project sponsor must comply with any federal laws, including FHWA's rules, applicable to the processing of the project as a CE.(2) If federal law, including FHWA's rules, or a programmatic agreement conflicts with this chapter, the federal law or programmatic agreement provision controls to the extent of the conflict.</content><note type="source"><p>Source Note: The provisions of this §2.81 adopted to be effective April 16, 2012, 37 TexReg 1727; amended to be effective April 16, 2014, 39 TexReg 2941; amended to be effective July 20, 2016, 41 TexReg 5234; amended to be effective September 19, 2018, 43 TexReg 5987.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scD/s2.83"><num value="2.83">§2.83</num><heading>Environmental Assessments</heading><content>(a) Applicability.(1) This section applies to a transportation project that the department delegate has not classified as a categorical exclusion and that does not clearly require the preparation of an EIS, or if the department delegate believes an EA would assist in determining the need for an EIS.(2) This section applies to a transportation project that is a state transportation project or an FHWA transportation project, except that subsection (i) of this section applies only if the project is an FHWA transportation project.(b) Purpose and content.(1) An EA describes the purpose and need for the project, any alternatives considered, any mitigation measures that are to be incorporated into the project, and the extent of environmental impact, including direct, indirect, and cumulative impacts. The project sponsor will investigate environmental impacts and prepare an EA to determine the nature and extent of environmental impacts, and to provide full disclosure of project impacts to the public.(2) If, taking into account any mitigation measures or commitments documented in the EA, the EA shows that the environmental impacts are not significant, the EA will conclude with a FONSI. If, taking into account any mitigation measures or commitments documented in the EA, the EA shows that the impacts are significant, the EA will conclude that an EIS is required.(c) Coordination. The project sponsor will coordinate with any governmental entities that have indicated interest in the project to advise them of basic project information and will take into consideration such an entity's input regarding social, economic, or environmental impacts, alternatives and measures that might mitigate adverse environmental impacts, and other environmental review and consultation requirements that should be performed concurrently with the EA. As provided in §2.43 of this chapter (relating to Project Sponsor Responsibilities), the project sponsor will conduct any required coordination only if both the department and the entity with whom coordination is being conducted agree. The project sponsor will include in the EA the results of coordination.(d) Public participation. The project sponsor will conduct appropriate public participation in accordance with Subchapter E of this chapter (relating to public participation) and will include in the EA a summary of the results of public participation and the comments received. If changes resulting from public participation are minimal, the project sponsor may incorporate the results into the EA by appending errata sheets, rather than revising the EA as a whole.(e) Organization of EA. To the maximum extent possible, an EA should summarize and incorporate by reference any separately prepared environmental reports supporting the EA's conclusions. If these reports are not included as appendices, the reports must be available for public inspection on request.(f) Circulation of draft EA. The project sponsor will comply with §2.108 of this chapter (relating to Notice of Availability).(g) Change in determination of impact. If the department delegate, taking into account any mitigation measures or commitments documented in the EA, determines at any point prior to the issuance of a FONSI that the project may have a significant impact on social, economic, or environmental concerns, the department delegate will direct the project sponsor to prepare an EIS.(h) Preparation of FONSI.(1) Finding of no significant impact (FONSI) means a document that is issued by the department delegate that briefly concludes that, taking into account any mitigation measures or commitments documented in the EA, the transportation project will not have a significant effect on the human environment and, therefore, for which an environmental impact statement will not be prepared. To describe the impacts of the project, and to identify any mitigation measures or commitments that factor into the determination that impacts are not significant, a FONSI will reference the EA and any other environmental documents related to the FONSI rather than repeating the information contained in those documents within the body of the FONSI.(2) The department delegate will review the EA, any proposed mitigation measures, the results of project coordination, and if a public hearing was held, the documentation of public hearing required by §2.107 of this chapter (relating to Public Hearing). The department delegate, if appropriate, will present the decision in a written FONSI.(3) The project sponsor will give notice of availability of a FONSI in accordance with §2.108 of this chapter.(i) FHWA transportation project. For an FHWA transportation project, in addition to the requirements of subsections (a) - (h) of this section, the department delegate and project sponsor must comply with any federal laws, including FHWA's rules, applicable to the processing of the project as an EA. If federal law, including FHWA's rules, conflicts with this chapter, federal law controls to the extent of the conflict. At the conclusion of the technical review, the department delegate will forward the environmental review document and any other relevant documentation to FHWA with an appropriate recommendation.</content><note type="source"><p>Source Note: The provisions of this §2.83 adopted to be effective April 16, 2012, 37 TexReg 1727; amended to be effective April 16, 2014, 39 TexReg 2941; amended to be effective July 20, 2016, 41 TexReg 5234; amended to be effective September 19, 2018, 43 TexReg 5987.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scD/s2.84"><num value="2.84">§2.84</num><heading>Environmental Impact Statements</heading><content>(a) Applicability.(1) This section applies to a transportation project if there are likely to be significant environmental impacts. The project sponsor will prepare an EIS that is a detailed public disclosure document that evaluates the impacts of the project.(2) This section applies to a transportation project that is a state transportation project or an FHWA transportation project, except that subsection (g) of this section applies only if the project is an FHWA transportation project.(b) Content.(1) An EIS must include:(A) a discussion of the purpose and need for the project;(B) an evaluation of all reasonable alternatives satisfying the purpose and need, their associated social, economic, and environmental impacts, an evaluation of alternatives eliminated from detailed study, and a determination of the preferred alternative;(C) a summary of studies conducted to determine the nature and extent of environmental impacts;(D) a description of the environmental impact of the project, any unavoidable adverse environmental impacts and associated measures to minimize harm, and any irreversible and irretrievable commitments of resources involved if the project is implemented;(E) a description of the direct, indirect, and cumulative effects of the project; and(F) a discussion of compliance with all applicable laws or reasonable assurances that the requirements can be met, and a description of the mitigation measures that are to be incorporated into the project.(2) Coordination. The project sponsor will include in the EIS the results of coordination conducted before final approval of the EIS.(3) Public participation. The project sponsor will conduct appropriate public participation in accordance with Subchapter E of this chapter (relating to Public Participation) and will include in the EIS the results of public participation and the comments received.(4) Organization. To the maximum extent possible, an EIS should summarize, incorporate by reference and include as appendices any separately prepared environmental reports supporting the EIS's conclusions, rather than repeat the detailed information from environmental reports in the body of the EIS.(c) Processing the EIS.(1) The project sponsor will in the following order:(A) publish a notice of intent under §2.102 of this chapter (relating to Notice of Intent (NOI)) and develop a coordination plan under §2.103 of this chapter (relating to Coordination Plan for EIS);(B) conduct public participation and, subject to agreement by both the department and the entity with whom coordination is being conducted, coordination in the manner and at the times prescribed by law;(C) prepare the draft EIS (DEIS);(D) issue the notice of availability of the DEIS;(E) conduct the public hearing;(F) prepare the final EIS (FEIS);(G) issue the notice of availability of the FEIS; and(H) prepare the record of decision (ROD).(2) Accelerated Decision-making.(A) If public comments are minor, and changes are limited to factual corrections or explanations of why comments do not warrant additional agency response, the project sponsor may prepare errata sheets and attach them to the DEIS, rather than preparing the FEIS. When errata sheets are attached to the DEIS in lieu of a separately prepared FEIS, all other applicable requirements for completing the EIS set forth in subsection (e) of this section apply.(B) The project sponsor may prepare the FEIS and ROD as a single document unless:(i) the FEIS makes substantial changes to the proposed project that are relevant to environmental or safety concerns; or(ii) there are significant new circumstances or information relevant to environmental concerns that bear on the proposed action or the impacts of the proposed action.(3) The project sponsor will prepare a supplemental DEIS, a supplemental FEIS, or both if required by §2.86 of this subchapter (relating to Supplemental Environmental Impact Statements).(d) Preparation of DEIS.(1) The project sponsor will prepare a DEIS that meets the requirements of subsection (b) of this section. A preferred alternative may be designated, if appropriate. The preferred alternative may be developed to a higher level of detail than other alternatives. The higher level detail must be limited to work necessary for preliminary design, as described by paragraph (5) of this subsection. The department delegate will review, and will approve the development of the preferred alternative to a higher level of detail if appropriate, and only if that development does not prevent the department from making an impartial decision as to whether to accept another alternative under consideration in the environmental review process.(2) The DEIS is subject to the department delegate's approval before it is made available to the public as a department document. For highway projects processed under Subchapter C of this chapter (relating to Environmental Review Process for Highway Projects), the DEIS is approved for public review on the department delegate's completing the technical review of the DEIS under §2.49 of this chapter (relating to Technical Review).(3) After the department delegate approves the DEIS, the project sponsor will circulate the DEIS and give notice of its availability in accordance with §2.108 of this chapter (relating to Notice of Availability).(4) After the DEIS is circulated, public hearing held, and comments reviewed, the project sponsor will prepare an FEIS, or a supplemental DEIS if required.(5) For the purposes of paragraph (1) of this subsection, preliminary design defines the general project location and design concepts. It includes, but is not limited to, preliminary engineering and other activities and analyses, such as environmental investigations, topographic surveys, metes and bounds surveys, geotechnical investigations, hydrologic analysis, hydraulic analysis, utility engineering, traffic studies, financial plans, revenue estimates, hazardous materials assessments, general estimates of the types and quantities of materials, and other work needed to establish parameters for the final design.(e) Preparation of FEIS.(1) The project sponsor will prepare an FEIS that meets the requirements of subsection (b) of this section and will prepare a public hearing record under §2.107 of this chapter (relating to Public Hearing). The FEIS may consist of the DEIS and attached errata sheets, if appropriate.(2) After the department delegate approves the FEIS, the project sponsor will circulate the FEIS and issue notice of its availability in accordance with §2.108 of this chapter.(f) Preparation of ROD.(1) The department delegate will issue a ROD that:(A) presents the basis for the department's decision;(B) identifies all alternatives considered;(C) specifies the alternative or alternatives that were considered to be environmentally preferable;(D) states whether all practical means to avoid or minimize environmental harm have been adopted, and if practical means were not adopted, why they were not adopted; and(E) summarizes mitigation measures.(2) If the FEIS and ROD are prepared as a single document, the document will indicate on the cover of the document that it is both the FEIS and ROD, and the department delegate's approval of that document represents approval of both the FEIS and ROD.(3) If the FEIS and ROD are not prepared as a single document, the department delegate will complete and sign the ROD not earlier than the 30th day after the date that the notice of the availability of the FEIS is published in the Texas Register or Federal Register, and the department delegate will separately issue notice of the availability of the ROD in accordance with §2.108 of this chapter.(4) Until the ROD is signed, neither the department nor any local government project sponsor may take any action concerning the project that would have an adverse environmental impact or limit the choice of reasonable alternatives.(5) If after a ROD is issued for a project the department approves an alternative that was not identified as the preferred alternative, the department delegate will prepare a revised ROD and will publish notice of the availability of the revised ROD in accordance with §2.108 of this chapter.(g) FHWA transportation project. For an FHWA transportation project, in addition to subsections (a) - (f) of this section, the department delegate and project sponsor must comply with any federal laws, including FHWA's rules, applicable to the processing of the project as an EIS. If federal law, including FHWA's rules, conflicts with this chapter, federal law controls to the extent of the conflict. At the conclusion of technical review, the department delegate will forward the environmental review document and any other relevant documentation to FHWA with an appropriate recommendation.</content><note type="source"><p>Source Note: The provisions of this §2.84 adopted to be effective April 16, 2012, 37 TexReg 1727; amended to be effective April 16, 2014, 39 TexReg 2941; amended to be effective July 20, 2016, 41 TexReg 5234; amended to be effective September 19, 2018, 43 TexReg 5987.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scD/s2.85"><num value="2.85">§2.85</num><heading>Reevaluations</heading><content>(a) Applicability.(1) This section applies to a transportation project that is classified by the department delegate as a CE, EA, or EIS.(2) This section applies to a transportation project that is a state transportation project or an FHWA transportation project, except that subsection (c) of this section applies only if the project is an FHWA transportation project.(b) Purpose and content.(1) A documented reevaluation of a DEIS, which may be in the form of a checklist, will be prepared by the project sponsor in cooperation with the department delegate if an acceptable FEIS is not submitted to the department delegate within three years after the date that the DEIS is circulated. The purpose of this reevaluation is to determine whether or not a supplement to the DEIS or a new DEIS is needed.(2) A documented reevaluation of a FEIS, which may be in the form of a checklist, will be required before further approvals may be granted if major steps to advance the project, such as authority to undertake final design, authority to acquire a significant portion of the right-of-way, or approval of the plans, specifications, and estimates, have not occurred within three years after the date of the approval of the FEIS, FEIS supplement, or the last major department approval or grant.(3) A consultation reevaluation will be required after approval of a ROD, FONSI, or CE designation if changed circumstances could affect the continued validity of the ROD, FONSI, or CE designation. When a consultation reevaluation is required, the project sponsor will consult with the department delegate before requesting any major approvals or grants from the department to establish whether or not the approved environmental document or CE designation remains valid for the project. The project sponsor will record the consultation reevaluation in the project file. If, as a result of consultation, the department delegate determines that a documented reevaluation is appropriate, the project sponsor shall prepare a documented reevaluation, which may be in the form of a checklist.(c) FHWA transportation project. For an FHWA transportation project, in addition to subsections (a) and (b) of this section, the department delegate and project sponsor must comply with any federal laws, including FHWA's rules, applicable to the processing of the reevaluation. If federal law, including FHWA's rules, conflicts with this chapter, federal law controls to the extent of the conflict. At the conclusion of technical review, the department delegate will forward the environmental review document and any other relevant documentation to FHWA with an appropriate recommendation.</content><note type="source"><p>Source Note: The provisions of this §2.85 adopted to be effective April 16, 2012, 37 TexReg 1727; amended to be effective April 16, 2014, 39 TexReg 2941; amended to be effective July 20, 2016, 41 TexReg 5234; amended to be effective September 19, 2018, 43 TexReg 5987.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scD/s2.86"><num value="2.86">§2.86</num><heading>Supplemental Environmental Impact Statements</heading><content>(a) This section applies to a transportation project that is a state transportation project or an FHWA transportation project, except that subsection (h) of this section applies only if the project is an FHWA transportation project.(b) A DEIS, FEIS, or supplemental EIS may be supplemented at any time. An EIS will be supplemented if the department delegate determines that:(1) changes to the project would result in significant environmental impacts that were not evaluated in the EIS; or(2) new information or circumstances relevant to environmental concerns and bearing on the project or its impacts would result in significant environmental impacts not evaluated in the EIS.(c) A supplemental EIS will not be necessary if:(1) the changes to the project, new information, or new circumstances result in a lessening of adverse environmental impacts evaluated in the EIS without causing other environmental impacts that are significant and were not evaluated in the EIS; or(2) the department delegate decides to approve an alternative fully evaluated in an approved final EIS but not identified as the preferred alternative, in which event a revised ROD will be prepared and circulated in accordance with §2.84 of this subchapter (relating to Environmental Impact Statements) and §2.108 of this subchapter (relating to Notice of Availability).(d) If the department delegate is uncertain of the significance of the new impacts, the project sponsor will develop appropriate environmental reports or, if the department delegate considers appropriate, an EA to assess the impacts of the changes, new information, or new circumstances. If, based on the studies, the department delegate determines that a supplemental EIS is not necessary, the department delegate must indicate that determination in the project file.(e) To the extent of the significant new impact, a supplement is to be developed using the same process and format (i.e., DEIS, FEIS, and ROD) as an original EIS, except that scoping is not required.(f) In some cases, a supplemental EIS may be required to address issues of limited scope, such as the extent of proposed mitigation or the evaluation of location or design variations for a limited portion of the overall project. In such an event, the preparation of a supplemental EIS does not necessarily:(1) prevent the granting of new approvals;(2) require the withdrawal of previous approvals; or(3) require the suspension of any project activities not directly affected by the supplement.(g) If the changes in question are of such a magnitude as to require a reassessment of the entire project, or more than a limited portion of the overall project, the department delegate will suspend any activities that would have an adverse environmental impact or limit the choice of reasonable alternatives, until the supplemental EIS is completed.(h) For an FHWA transportation project, in addition to the requirements of subsections (a) - (g) of this section, the department delegate and project sponsor must comply with any federal laws, including FHWA's rules, applicable to the processing of the supplemental EIS. If federal law, including FHWA's rules, conflicts with this chapter, federal law controls to the extent of the conflict. At the conclusion of technical review, the department delegate will forward the environmental review document and any other relevant documentation to FHWA with an appropriate recommendation.</content><note type="source"><p>Source Note: The provisions of this §2.86 adopted to be effective April 16, 2012, 37 TexReg 1727; amended to be effective April 16, 2014, 39 TexReg 2941.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c2/scE"><num value="E">SUBCHAPTER E</num><heading>PUBLIC PARTICIPATION</heading><section identifier="/us/state/tx/tac/t43/p1/c2/scE/s2.101"><num value="2.101">§2.101</num><heading>General Requirements</heading><content>(a) Guidelines. The department will publish guidelines that identify a selection of outreach methods that project sponsors may choose in collaboration with the department delegate to inform the public and maximize participation in the public involvement process. Outreach methods may include posting information on a website, publishing a notice in the newspaper, or use of changeable message signs.(b) Notification to interested parties. Each project sponsor shall maintain a list of elected public officials, individuals, and affected interest groups that have expressed an interest in a transportation project. The project sponsor will provide notification to these individuals and groups of any public participation opportunities related to the project, apart from a Notice and Opportunity to Comment.(c) Minimum Requirements. This subchapter establishes the minimum requirements for public participation for a project.(d) FHWA Transportation Projects. For an FHWA transportation project, in addition to the public participation requirements set forth in this subchapter, the project sponsor will comply with any additional public participation or coordination requirements that may apply under Federal law, such as the requirements at 23 U.S.C. §139, 23 U.S.C §128 and 40 C.F.R. Part 1500. To the extent there is a conflict between this subchapter and an applicable Federal law, the Federal law will prevail.(e) Limited English Proficiency. The project sponsor, in consultation with the department delegate, will determine whether any notice required by this chapter must be provided in a language, in addition to English, to comply with Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency (LEP).(f) Joint Public Participation. The department may collaborate with local governments, metropolitan planning organizations, or other transportation entities to conduct joint public participation activities. Public participation hosted by other entities may satisfy department public participation requirements provided the requirements established in this subchapter are met.</content><note type="source"><p>Source Note: The provisions of this §2.101 adopted to be effective April 16, 2014, 39 TexReg 2941; amended to be effective September 19, 2018, 43 TexReg 5987.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scE/s2.102"><num value="2.102">§2.102</num><heading>Notice of Intent (NOI)</heading><content>(a) Purpose. An NOI formally initiates the process for preparing an EIS or a supplemental EIS.(b) Notice of Intent Required. The project sponsor will prepare an NOI before the preparation of an EIS or supplemental EIS. An NOI must be prepared according to guidelines and procedures established by the department. The department delegate will review the NOI and submit it for publication in the Texas Register if the project is a state transportation project or in the Federal Register if the project is an FHWA transportation project.(c) Notice Requirements. The project sponsor will publish the approved NOI in a local newspaper having general circulation in the area affected by the project. If there is no local newspaper in the area affected by the project, the project sponsor will publish the NOI in any newspaper having general circulation in the area affected by the project.</content><note type="source"><p>Source Note: The provisions of this §2.102 adopted to be effective April 16, 2014, 39 TexReg 2941; amended to be effective July 20, 2016, 41 TexReg 5234.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scE/s2.103"><num value="2.103">§2.103</num><heading>Coordination Plan for EIS</heading><content>(a) Purpose. A coordination plan is a plan for coordinating public and agency participation in and comment on the environmental review process when an EIS is required. A coordination plan is intended to involve the agencies with an interest in the project and the public in the early stages of development of an EIS, and is distinct from the process for preparation of the project scope prepared by a project sponsor and department delegate under §2.44 of this chapter (relating to Project Scope). A coordination plan must include, at a minimum, participation by any agency for which participation is required under a memorandum of understanding with the department, including the memoranda of understanding under Subchapters G, H, and I of this chapter (relating to Memorandum of Understanding with the Texas Parks and Wildlife Department, Memorandum of Understanding with the Texas Historical Commission, and Memorandum of Understanding with the Texas Commission on Environmental Quality).(b) Coordination Plan Required. The project sponsor, in collaboration with the department delegate, will prepare a coordination plan after publication of the NOI for an EIS or supplemental EIS, in accordance with guidelines and procedures established by the department.(c) Notice Requirements.(1) The project sponsor will circulate the draft of the coordination plan to the agencies identified in the coordination plan and will make it available to the public at a public meeting. The project sponsor will allow not less than 30 days for comment on the draft coordination plan and schedule.(2) A deadline for comment by agencies and the public may be extended for good cause. The good cause must be documented in the project file.(3) The project sponsor will give a copy of the approved coordination plan and any approved schedule for completion of the environmental review process to the agencies identified in the coordination plan and will make it available to the public on request.</content><note type="source"><p>Source Note: The provisions of this §2.103 adopted to be effective April 16, 2014, 39 TexReg 2941; amended to be effective September 19, 2018, 43 TexReg 5987.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scE/s2.104"><num value="2.104">§2.104</num><heading>Notice and Opportunity to Comment</heading><content>(a) Applicability. Subject to the exception in subsection (b) of this section, this section applies to any project that would:(1) require the acquisition of new right-of-way;(2) add capacity; or(3) involve the construction of a highway at a new location.(b) Exception. This section does not apply to a project for which a public meeting is held under §2.105 of this subchapter (relating to Public Meeting), an opportunity for public hearing is afforded under §2.106 of this subchapter (relating to Opportunity for Public Hearing), or a public hearing is held under §2.107 of this subchapter (relating to Public Hearing), provided that notice of the meeting, opportunity for public hearing, or public hearing is provided to the entities specified in subsections (c) and (d) of this section.(c) Notice and opportunity to comment for property owners. Prior to the environmental decision on a project subject to this section, the project sponsor will provide written notice to the owner or owners of real property that would be acquired for the project and, for a project described by subsection (a)(2) or (3) of this section, the owner or owners of real property that is adjacent to the project. The purpose of this notice is to inform the real property owner or owners of the project and allow them an opportunity to submit comments on the project prior to the environmental decision.(d) Notice and opportunity to comment for local governments. Prior to the environmental decision on a project described by subsection (a)(2) or (3), the project sponsor will provide written notice to affected local governments and public officials. The purpose of this notice is to inform the affected local governments and public officials of the project and allow them an opportunity to submit comments on the project prior to the environmental decision.(e) Comment deadline. The notice required by subsections (c) and (d) of this section will specify a comment deadline of not sooner than 15 days after the date that the notice is made. If the notice is sent by United States mail, the minimum comment period begins on the third day after the date that the notice is mailed.(f) Documentation requirements. The project sponsor will maintain records of all notices provided and written comments received.</content><note type="source"><p>Source Note: The provisions of this §2.104 adopted to be effective September 19, 2018, 43 TexReg 5987.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scE/s2.105"><num value="2.105">§2.105</num><heading>Public Meeting</heading><content>(a) Purpose. Public meetings are intended to gather input from the public and keep the public informed during the development of a project.(b) When to hold a Public Meeting.(1) A project sponsor may hold one or more public meetings for any project. The decision to hold a public meeting should be based on the project's type, complexity, and level of public concern.(2) The project sponsor shall hold a public meeting during the drafting of a DEIS to present the draft coordination plan.(c) Notice Requirements. The project sponsor may select one or more appropriate outreach methods to inform the public of a public meeting. Outreach methods will be appropriate for the anticipated audience to maximize attendance. At a minimum, notice of the meeting will be provided to any public official, individual, or affected interest group that has expressed interest in the relevant transportation project.(d) Documentation Requirements. After a public meeting, the project sponsor will assemble documentation of the public meeting. The public meeting documentation will be forwarded to the department delegate for review and maintained in the project file.</content><note type="source"><p>Source Note: The provisions of this §2.105 adopted to be effective April 16, 2014, 39 TexReg 2941; amended to be effective July 20, 2016, 41 TexReg 5234; amended to be effective September 19, 2018, 43 TexReg 5987.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scE/s2.106"><num value="2.106">§2.106</num><heading>Opportunity for Public Hearing</heading><content>(a) Purpose. An opportunity for a public hearing permits the public to request a public hearing for a project when the project sponsor is not otherwise obligated to hold a public hearing under §2.107 of this subchapter (relating to Public Hearing).(b) When to afford an opportunity for public hearing.(1) The project sponsor will afford an opportunity for a public hearing for a project if:(A) the project requires the acquisition of significant amounts of right-of-way;(B) the project has a substantial adverse impact on abutting real property; or(C) the project is the subject of an environmental assessment.(2) A project sponsor is not required to comply with this section if the project sponsor holds a public hearing for the project under §2.107 of this subchapter.(c) Notice Requirements.(1) The project sponsor will publish, at a minimum, one notice of the opportunity to request a public hearing in a local newspaper having general circulation. If there is no local newspaper in the area affected by the project, the project sponsor will publish notice in a newspaper having general circulation in the area affected by the project.(2) In addition, the project sponsor will select a minimum of one additional outreach method to inform the public of an opportunity to request a public hearing.(3) The project sponsor will provide notice of the opportunity to request a public hearing to landowners abutting the roadway within the proposed project limits, as identified by tax rolls or other reliable land ownership records, and to affected local governments and public officials.(4) The project sponsor will provide notice of the opportunity to request a public hearing to any public official, individual, or affected interest group that has expressed interest in the relevant transportation project.(5) Notice of an opportunity for public hearing will be provided under this section at least 15 days prior to the deadline for requesting a public hearing. If the notice is sent by United States mail, the notice is considered to be provided on the third day after the date of mailing.(d) Procedural Requirements. The project sponsor will provide notice of the opportunity after preliminary location and design studies are developed and, if an environmental review document is being prepared, after the environmental review document is approved for public disclosure by the department delegate.(e) Documentation Requirements. If, after providing an opportunity for a public hearing under this section, the project sponsor does not hold a public hearing, the project sponsor will submit to the department delegate an original certification of the public participation process containing a statement that the requirements of this section have been met.</content><note type="source"><p>Source Note: The provisions of this §2.106 adopted to be effective April 16, 2014, 39 TexReg 2941; amended to be effective July 20, 2016, 41 TexReg 5234; amended to be effective September 19, 2018, 43 TexReg 5987.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scE/s2.107"><num value="2.107">§2.107</num><heading>Public Hearing</heading><content>(a) Purpose. A public hearing is held to present project alternatives and to encourage and solicit public comment.(b) When to hold a public hearing. A project sponsor will hold a public hearing if:(1) an agency with jurisdiction over the project submits a written request for a hearing that is supported by reasons why a hearing will be helpful, or ten or more individuals submit a written request for a hearing, except that a public hearing is not required under this paragraph if:(A) a public hearing has been held concerning the project before the request or requests are received;(B) the hearing request or requests are received after the environmental review document or documentation of categorical exclusion for the project is approved;(C) the hearing request or requests are received after the deadline specified in a notice issued under §2.106 of this subchapter (relating to Opportunity for Public Hearing); or(D) the project sponsor has addressed all concerns of the agency or persons requesting the public hearing;(2) the department delegate determines it is in the public interest; or(3) the project is:(A) a project with substantial public interest or controversy;(B) an EIS project; or(C) subject to subsection (c) of this section, a project that substantially changes the layout or function of a connecting roadway or an existing facility, including but not limited to the addition of managed lanes, high-occupancy vehicle lanes, bicycle lanes, bus lanes, and transit lanes.(c) Exceptions for certain types of actions relating to bicycle lanes.(1) For purposes of subsection (b)(3)(C) of this section, none of the following actions are considered to substantially change the layout or function of a connecting roadway or an existing facility:(A) striping bicycle lanes when the pre-existing roadway already accommodated bicycles;(B) striping one or more non-continuous bicycle lanes approaching or through intersections, driveways, or other conflict areas; or(C) striping bicycle lanes not along, but across a roadway at an intersection to allow the continuation of planned or existing bicycle lanes on crossing local streets or other bicycle facilities.(2) Notwithstanding subsection (b) of this section, a hearing is not required under this section by the addition of bicycle lanes to a roadway if the project was addressed in a local hearing held under §25.55 of this title (relating to Comment Solicitation on Bicycle Road Use).(d) Notice requirements.(1) At a minimum, the project sponsor will publish one notice of the hearing in a local newspaper having general circulation in the area affected by the project. If there is no local newspaper in the area affected by the project, the project sponsor will publish notice in a newspaper having general circulation in the area affected by the project. For a project that constructs a reliever route, notice must also be published in a newspaper of general circulation in the bypassed area.(2) In addition to the other notice required by this subsection, the project sponsor will select a minimum of one additional outreach method to inform the public of the public hearing.(3) The project sponsor will provide notice of the public hearing to landowners abutting the roadway within the proposed project limits, as identified by tax rolls or other reliable land ownership records, and to affected local governments and public officials.(4) The project sponsor will provide notice of the public hearing to any public official, individual, or affected interest group that has expressed interest in the relevant transportation project.(5) Notice of public hearing will be provided under this section at least 15 days prior to the date of the public hearing. If the notice is sent by United States mail, the notice is considered to be provided on the third day after the date of mailing.(e) Procedural requirements.(1) The hearing will be held after preliminary location and design studies are developed and, if an environmental review document is being prepared, after the environmental review document is approved for public disclosure by the department delegate.(2) The project sponsor will make the maps, drawings, environmental reports, and documents concerning the project available to the public for not less than the 15 consecutive days before the date of the public hearing.(3) The project sponsor shall establish a deadline for accepting public comments of not less than 15 days after the date of the public hearing.(f) Documentation requirements.(1) After a public hearing, the project sponsor will assemble documentation of the public hearing. The public hearing documentation will be forwarded to the department delegate for review and maintained in the project file.(2) For a public hearing regarding an EIS, the project sponsor will document the number of positive, negative, and neutral public comments received in accordance with Transportation Code, §201.811(b). This information must be presented to the commission in an open meeting and reported on the department's website in a timely manner.(g) Role of department staff. One or more department employees must begin a public hearing by making opening remarks to the audience of attendees. Additionally, one or more department employees must be physically present during any portion of a public hearing.(h) No effect on public meetings. Nothing in this section limits the department's ability to hold one or more public meetings on any project under §2.105 of this subchapter (relating to Public Meeting).</content><note type="source"><p>Source Note: The provisions of this §2.107 adopted to be effective April 16, 2014, 39 TexReg 2941; amended to be effective July 20, 2016, 41 TexReg 5234; amended to be effective September 19, 2018, 43 TexReg 5987.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scE/s2.108"><num value="2.108">§2.108</num><heading>Notice of Availability</heading><content>(a) Purpose. A notice of availability is issued to inform the public or recipient of when certain important documents are available for review, and how to obtain copies of those documents.(b) When to issue notice. A notice of availability is required for:(1) a draft EA;(2) a FONSI;(3) a DEIS;(4) a FEIS; or(5) a ROD.(c) Notice requirements.(1) The project sponsor will provide copies of all notices of availability to the appropriate metropolitan planning organization; any other affected units of federal, state, and local government; any entities that requested in writing to receive notices regarding the environmental review of the project; and any other entities with which environmental review of the project is being coordinated, except that if the project is being coordinated under a memorandum of understanding, the terms of the memorandum of understanding govern the provision of notice rather than this subsection.(2) The project sponsor, in collaboration with the department delegate, will publish a notice of availability on the department website regarding a FONSI, DEIS, FEIS, ROD, or draft EA.(3) The project sponsor, in collaboration with the department delegate, will publish in a local newspaper having general circulation in the area affected by the project a notice of availability regarding a draft EA for which no public hearing is held or an FEIS. If there is no local newspaper in the area affected by the project, the project sponsor will publish notice in a newspaper having general circulation in the area affected by the project. For a notice of availability regarding a draft EA for which no public hearing is held, the notice must establish a deadline for accepting public comments of not less than 30 days after the date of newspaper publication.(4) The department delegate also must submit for publication a notice of availability regarding a DEIS or FEIS in the Texas Register if the project is a state transportation project or in the Federal Register if the project is an FHWA transportation project. For an NOA for a DEIS published in the Texas Register or Federal Register, the NOA shall establish a period of not fewer than 45 days and no more than 60 days for the return of comments on the DEIS.(5) If the FEIS and ROD will be a single document, the notice of availability regarding the FEIS should indicate that fact.</content><note type="source"><p>Source Note: The provisions of this §2.108 adopted to be effective April 16, 2014, 39 TexReg 2941; amended to be effective July 20, 2016, 41 TexReg 5234; amended to be effective September 19, 2018, 43 TexReg 5987.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scE/s2.109"><num value="2.109">§2.109</num><heading>Additional Public Participation for Projects Affected by Significant Changes</heading><content>(a) Purpose. This section describes when additional notice and opportunity to comment must be provided to owners of adjoining property, and affected local governments and public officials, following project approval.(b) When to provide additional notice and opportunity to comment. Under Transportation Code, §203.022(b), the project sponsor will provide an additional notice and opportunity to comment for a project that has received project approval if:(1) the project adds capacity or involves the construction of a highway at a new location; and(2) conditions relating to land use, traffic volumes, and traffic patterns have changed significantly since the project was originally subject to public review and comment.(c) Comment deadline. The notice required by subsection (b) will specify a comment deadline of no sooner than 15 days after the date that such notice is provided. If the notice is sent by United States mail, the minimum comment period begins on the third day after the date that the notice is mailed.(d) Documentation requirements. The project sponsor will maintain records of all notices made and written comments received.</content><note type="source"><p>Source Note: The provisions of this §2.109 adopted to be effective April 16, 2014, 39 TexReg 2941; amended to be effective September 19, 2018, 43 TexReg 5987.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scE/s2.110"><num value="2.110">§2.110</num><heading>Notice of Impending Construction</heading><content>(a) Purpose. A notice of impending construction informs individuals affected by certain projects that construction will begin.(b) Notice Requirements under Transportation Code, §203.022(c). For a project that adds capacity or involves the construction of a highway at a new location, the project sponsor must provide owners of adjoining property and affected local governments and public officials with notice of impending construction by any means approved by the department's Environmental Affairs Division. The means of providing notice may include a sign or signs posted in the right-of-way, mailed notice, printed notice distributed by hand, or notice via website when the recipient has previously been informed of the relevant website address. The notice must be provided after a CE determination or issuance of a FONSI or ROD for the project, but before earthmoving or other activities requiring the use of heavy equipment begin.</content><note type="source"><p>Source Note: The provisions of this §2.110 adopted to be effective April 16, 2014, 39 TexReg 2941; amended to be effective July 20, 2016, 41 TexReg 5234; amended to be effective September 19, 2018, 43 TexReg 5987.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c2/scF"><num value="F">SUBCHAPTER F</num><heading>REQUIREMENTS FOR SPECIFIC TYPES OF PROJECTS AND PROGRAMS</heading><section identifier="/us/state/tx/tac/t43/p1/c2/scF/s2.133"><num value="2.133">§2.133</num><heading>Maintenance Projects and Programs</heading><content>(a) Maintenance programs. This section applies to the following maintenance programs and the maintenance projects undertaken under them:(1) Bridge maintenance--Activities to repair or perform preventive maintenance on bridges, culverts, retaining walls, and barrier walls.(2) Customer service--Activities related to providing the traveling public with services, including maintaining rest areas, picnic areas, and litter barrels.(3) Debris and spills--Activities related to removing debris from the right of way, including litter, roadway debris, spills, and sweeping.(4) Drainage--Activities related to maintaining drainage systems and slopes on the right of way and within drainage easements, including roadside ditches, slopes, channels, creeks, streams, and rivers.(5) Ferry maintenance--The maintenance and operation of ferries under Transportation Code, §342.001.(6) Maintenance enhancement--Maintenance activities that improve the access to a highway or improve the performance of the highway system such as the installation of turn lanes, turnouts, turn-arounds, driveways, or shoulders.(7) Pavement maintenance--Activities to repair or perform preventive maintenance on pavements, including work performed on the pavement surface, base, sub-base, sub-grade, or embankment.(8) Roadside appurtenances--Activities related to fixtures along the roadways, including signs, delineators, mailboxes, guard rails, attenuators, illumination, and signals.(9) Traffic pavement markings--Activities related to markings on the pavement to control vehicular movement, including installing and removing striping, specialty markings, and pavement markings.(10) Vegetation management--Activities performed to establish and maintain the condition of the roadway and roadside on the state highway right of way, including mowing operations, pest management, revegetation techniques, erosion control, wildflower preservation and propagation, tree and brush trimming and removal, and the preservation of threatened and endangered plant species.(b) Environmental review.(1) Programs. At least every ten years the department will conduct an environmental review following the requirements of this chapter for each of the maintenance programs listed in subsection (a) of this section.(2) Projects. Except as provided in the next succeeding sentence, no individual environmental review under this chapter will be required for maintenance projects undertaken under programs listed in subsection (a) of this section. An individual environmental review under this chapter will be required for a maintenance project that is conducted or supported by FHWA, unless FHWA has approved an environmental review of the program under which the project is conducted.</content><note type="source"><p>Source Note: The provisions of this §2.133 adopted to be effective April 16, 2012, 37 TexReg 1727.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scF/s2.134"><num value="2.134">§2.134</num><heading>Coastal Management Program</heading><content>(a) Scope. The approval of transportation projects and programs located in whole or in part within the coastal boundary, as defined in 31 TAC §503.1 (relating to Coastal Management Program Boundary), are actions subject to the Texas Coastal Management Program (CMP), 31 TAC Part 16. A project or program will be approved unless it is found to be inconsistent with the goals and policies of the CMP, as described in 31 TAC Chapter 501 (relating to the Coastal Management Program). For the purposes of this section, "transportation projects and programs" includes the projects and programs for which an environmental review document or documentation of categorical exclusion is prepared under this chapter and Gulf Intracoastal Waterway projects for which the commission authorizes right-of-way acquisition and beneficial use projects.(b) Thresholds. In accordance with 31 TAC §505.26 (relating to Approval of Thresholds for Referral), the department's threshold for referral of actions to the commissioner of the General Land Office is the approval of transportation projects and programs requiring an environmental impact statement. The threshold for actions concerning the Gulf Intracoastal Waterway is the approval by the commission for acquisitions of rights of way for dredged material disposal and for beneficial use projects, unless:(1) the federal agency's consistency determination for the federal activity or the federal development project included the dredged material disposal plan or the beneficial use project, and the consistency is affirmed in accordance with 31 TAC Chapter 506 (relating to Council Procedures for Federal Consistency with Coastal Management Program Goals and Priorities);(2) the Coastal Coordination Council or General Land Office previously issued a consistency agreement under 31 TAC Chapter 506 for the federal activity or the federal development project that included the disposal plan or the beneficial use project; or(3) the disposal or placement of dredged material in existing dredge disposal sites or within existing beneficial use projects meets the provisions of 31 TAC Chapter 506.</content><note type="source"><p>Source Note: The provisions of this §2.134 adopted to be effective April 16, 2012, 37 TexReg 1727; amended to be effective April 16, 2014, 39 TexReg 2941.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c2/scG"><num value="G">SUBCHAPTER G</num><heading>MEMORANDUM OF UNDERSTANDING WITH THE TEXAS PARKS AND WILDLIFE DEPARTMENT</heading><section identifier="/us/state/tx/tac/t43/p1/c2/scG/s2.201"><num value="2.201">§2.201</num><heading>Purpose</heading><content>(a) Transportation Code §201.607 requires the Texas Department of Transportation (TxDOT) to adopt a memorandum of understanding (MOU) with each state agency that has responsibilities for the protection of the natural environment or for the preservation of historical or archeological resources, and requires TxDOT and each of the agencies to adopt the memoranda and all revisions by rule. This subchapter contains the MOU between TxDOT and the Texas Parks and Wildlife Department (TPWD) that implements that section.(b) This subchapter furthers TxDOT's environmental policy, as found in §2.2 of this chapter (relating to Environmental Policy), to integrate environmental considerations into department activities to achieve compliance with applicable laws, regulations and standards. TxDOT will focus on delivering safe, efficient transportation projects and making sound decisions based on a balanced consideration of transportation needs and of social, economic, and environmental impacts of proposed transportation improvements.(c) According to Parks and Wildlife Code §12.0011, TPWD is the state agency with primary responsibility for protecting the state's fish and wildlife resources; providing recommendations that will protect fish and wildlife resources to local, state, and federal agencies that approve, permit, license, or construct developmental projects; providing information on fish and wildlife resources to any local, state, and federal agencies or private organizations that make decisions affecting those resources.(d) Except as specified in subsection (f) of this section, this MOU supersedes the MOU adopted on September 1, 2013 and associated programmatic agreements. Nothing in this subchapter supersedes, modifies, or nullifies any other agreement entered into by TxDOT and TPWD.(e) TxDOT and TPWD shall examine and revise this MOU not later than the fifth anniversary of its effective date, as required by Transportation Code, §201.607. Notwithstanding the above, this MOU remains in effect until revised or terminated by written agreement of TxDOT and TPWD.(f) The effective date of this MOU is the date on which this Subchapter G takes effect. Projects for which coordination with TPWD has been initiated prior to the effective date of this MOU will complete coordination under the procedures of the September 2013 MOU. Projects for which coordination with TPWD has not been initiated prior to the effective date of this MOU will be governed by this MOU. A project that requires reevaluation, and subsequently requires coordination as specified in §2.203 of this subchapter (relating to Applicability), will be governed by this MOU.(g) The intent of the MOU is to foster communication, collaboration, and cooperation between TPWD and TxDOT on the review of transportation projects and protection of State natural resources.</content><note type="source"><p>Source Note: The provisions of this §2.201 adopted to be effective July 20, 2021, 46 TexReg 4375.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scG/s2.202"><num value="2.202">§2.202</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, or in documents prepared by TxDOT or TPWD pursuant to this subchapter, have the following meanings.(1) Best or Beneficial Management Practices (BMPs)--Measures provided by TPWD that will result in avoidance and minimization of potential impacts to natural resources.(2) Categorical Exclusion (CE)--A category of actions that have been found to have no significant effect on the environment, individually or cumulatively, and are excluded from the requirement to prepare an Environmental Assessment or Environmental Impact Statement as defined in §2.81 of this chapter (relating to Categorical Exclusions).(3) Environmental Assessment (EA)--Environmental documentation required for a transportation project that TxDOT has not classified as a categorical exclusion and that does not clearly require the preparation of an EIS, or if TxDOT believes that an EA would assist in determining the need for an EIS, as defined in §2.83 of this chapter (relating to Environmental Assessments).(4) Environmental decision--The official record created after coordination, analysis, and reviews are completed concluding that an action and its environmental impacts have been adequately identified and assessed. A Finding of No Significant Impact (FONSI) is the environmental decision document for an EA and a Record of Decision (ROD) is the environmental decision document for an EIS.(5) Environmental Impact Statement (EIS)--Environmental documentation required for a transportation project if there are likely to be significant environmental impacts, as defined in §2.84 of this chapter (relating to Environmental Impact Statements).(6) Interagency Team (IAT)--As defined in §2.206 of this subchapter (relating to Interagency Team), TPWD and TxDOT staff identified to communicate on behalf of TPWD and TxDOT to carry out the MOU.(7) Qualified biologist--A qualified biologist must have, at a minimum, a successful completion of a full 4-year course of study in an accredited college or university leading to a bachelor's or higher degree with a major in biological sciences, natural resource management, wildlife science or management, ecology, zoology, botany, conservation biology, or a closely related field and have experience relevant to the species, habitat, or ecosystems that are being studied or described.(8) Reevaluation--The review and determination of the validity of the environmental decision under certain circumstances involving changes or delays subsequent to the environmental decision as defined in §2.85 of this chapter (relating to Reevaluations).(9) Riparian habitat--The area of interface between land and a waterway (e.g., river or stream). River or creekdependent habitats which rely on periodic flooding or flushing, subirrigated substrates, and other influences of the ephemeral or perennial rivers or creeks to which they are adjacent, including floodplains, wet woodlands, gallery riverine forests, oxbows, swamps, and vegetated islands.(10) Texas Natural Diversity Database (TXNDD)--A TPWD-owned and maintained database of natural resource records, including species of greatest conservation need (SGCN) and other tracked species, important remnant native vegetation, and other features of Texas natural history.(11) TPWD--Texas Parks and Wildlife Department.(12) TPWD Transportation Staff--The qualified biologist at TPWD that is assigned to work solely on transportation projects and related matters.(13) TxDOT--Texas Department of Transportation.</content><note type="source"><p>Source Note: The provisions of this §2.202 adopted to be effective July 20, 2021, 46 TexReg 4375.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scG/s2.203"><num value="2.203">§2.203</num><heading>Applicability</heading><content>(a) TxDOT will coordinate with TPWD on federal and state transportation projects that require an EA or EIS.(b) TxDOT may coordinate other projects that do not require an EA or EIS with TPWD at TxDOT's discretion.(c) If TxDOT prepares a reevaluation for a transportation project that was previously coordinated with TPWD under the 2013 MOU, TxDOT will coordinate the reevaluation with TPWD when any of the following apply:(1) New impacts not included in previous coordination or increase in impacts from previous coordination to terrestrial and aquatic state-listed species or their habitat as determined by a qualified biologist or rare plant communities with a record in the TXNDD or any state rank or rank range that includes a 1, 2, or 3.(2) New or increased impacts to riparian habitat or water resources.(3) Change to commitments made during previous coordination, including BMPs.(4) Reevaluations of CE level projects with new or increased impacts may be re-coordinated at TxDOT's discretion.(d) This subchapter does not apply to individual maintenance projects for which a programmatic environmental review is conducted under §2.133 of this chapter (relating to Maintenance Projects and Programs).</content><note type="source"><p>Source Note: The provisions of this §2.203 adopted to be effective July 20, 2021, 46 TexReg 4375.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scG/s2.204"><num value="2.204">§2.204</num><heading>Coordination and Communication</heading><content>(a) For projects requiring an EA or EIS, TxDOT will contact TPWD when TxDOT has completed its analysis of potential impacts to fish, wildlife, and other natural resources. To facilitate collaborative review, TxDOT will provide access to TxDOT's Environmental Compliance Oversight System (ECOS).(b) TxDOT will post on the Environmental Compliance Toolkit webpage the set of BMPs as recommended by TPWD. This set of BMPs is non-project specific. The application of specific BMPs to individual projects will be determined by TxDOT at its discretion.(c) TxDOT will indicate in the draft EA or draft EIS the TPWD-recommended BMPs that will be applied to the project. TxDOT may also include information shared by TPWD during collaborative review.(d) To ensure TxDOT will benefit from any recommendations or information provided by TPWD early in the environmental review process, TxDOT will follow the procedure indicated below.(1) At or around the same time that a draft EA or draft EIS is made available for public review, but no less than 45 days before the issuance of an environmental decision, TxDOT will email the notice of availability of the document required by §2.108 of this chapter (relating to Notice of Availability) to TPWD at the following email address: WHAB_TxDOT@tpwd.texas.gov or the email account designated by TPWD.(2) The email communication described in subsection (1) will serve as the "request for comments" in Parks and Wildlife Code §12.0011(b-1).(3) To facilitate review of a draft EA or EIS, TxDOT will provide access to TxDOT's ECOS.(e) If TPWD has any information or recommendations to conserve fish and wildlife species and other natural resources it wishes to provide to TxDOT in response to a request for comments, TPWD will provide them in writing to TxDOT within 45 days of the date on which TxDOT submitted the request for comments by email.(f) If TPWD provides any recommendations or information regarding fish and wildlife to TxDOT after the 45-day deadline specified in subsection (e) of this section, then TxDOT will consider such recommendations or information to the extent practicable.(g) TxDOT will respond as outlined in Parks and Wildlife Code §12.0011(c).(h) Electronic communication will be used to the maximum extent practical.</content><note type="source"><p>Source Note: The provisions of this §2.204 adopted to be effective July 20, 2021, 46 TexReg 4375.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scG/s2.205"><num value="2.205">§2.205</num><heading>Commitments</heading><content>(a) TxDOT will provide funding, through an interagency contract, for one TPWD employee to review transportation projects under this agreement. TxDOT will actively and consistently engage this employee in project development, conservation actions, and other natural resource coordination needs as determined appropriate by TxDOT. The interagency contract to fund the review of transportation projects will be renewed biennially at TxDOT's discretion.(b) Through that same interagency contract or other authority as appropriate, TxDOT and TPWD will identify and collaborate on mutually agreeable conservation actions. Conservation actions to be undertaken will be described in detail in an interagency contract document or associated workplan agreed upon by the IAT.</content><note type="source"><p>Source Note: The provisions of this §2.205 adopted to be effective July 20, 2021, 46 TexReg 4375.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scG/s2.206"><num value="2.206">§2.206</num><heading>Interagency Team</heading><content>(a) Each agency shall mutually appoint members to IAT which will meet at least on a bi-annual basis.(b) An Interagency Team shall discuss and make recommendations for opportunities for the agencies to partner on conservation actions including but not limited to research, offsets, specification development, and restoration opportunities.</content><note type="source"><p>Source Note: The provisions of this §2.206 adopted to be effective July 20, 2021, 46 TexReg 4375.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scG/s2.207"><num value="2.207">§2.207</num><heading>Texas Natural Diversity Database (TXNDD)</heading><content>(a) This MOU authorizes certain limited use and distribution of TXNDD information and specifies security requirements.(b) TPWD will continue to provide TXNDD information to TxDOT on a schedule agreed upon by both parties.(c) Except as provided in subsections (d), (e) and (f) of this section, TxDOT will not release the TXNDD or any portion of it to outside parties unless TxDOT receives a request under the Texas Public Information Act for the TXNDD or information contained therein, in which case TxDOT will notify TPWD of the request.(d) Texas Public Information Act requests for copies of approved environmental review documents and environmental reports that contain information from the TXNDD do not require TPWD notification. Such documents and reports are not subject to the restrictions in subsection (c) of this section and may be disclosed to the public by TxDOT.(e) TxDOT will conduct training on access and use of the TXNDD as it relates to transportation projects for TxDOT environmental staff and environmental contract employees. TPWD will assist in training development and implementation if requested.(f) TxDOT will provide completed TXNDD reporting forms or any other format preferred by TPWD for observations of SGCN occurrences, which include federally and state protected species, within TxDOT project areas and collected by TxDOT staff and contract individuals.</content><note type="source"><p>Source Note: The provisions of this §2.207 adopted to be effective July 20, 2021, 46 TexReg 4375.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c2/scH"><num value="H">SUBCHAPTER H</num><heading>MEMORANDUM OF UNDERSTANDING WITH THE TEXAS HISTORICAL COMMISSION</heading><section identifier="/us/state/tx/tac/t43/p1/c2/scH/s2.251"><num value="2.251">§2.251</num><heading>Purpose and Authority</heading><content>This subchapter contains the memorandum of understanding (MOU) entered into by the Texas Historical Commission (THC) and the Texas Department of Transportation (TxDOT) in accordance with Government Code, §442.005 and §442.007; Natural Resources Code, §191.0525(f); and Transportation Code, §201.607. The purpose of this MOU is to provide a formal mechanism for expediting THC review of TxDOT's transportation projects that potentially pose adverse effects on cultural resources. This MOU supersedes the previous MOU made effective on May 20, 2013.</content><note type="source"><p>Source Note: The provisions of this §2.251 adopted to be effective August 15, 2018, 43 TexReg 5237.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scH/s2.252"><num value="2.252">§2.252</num><heading>Applicability</heading><content>(a) Except as provided in subsection (b) of this section, this subchapter generally applies to:(1) a transportation project for which an environmental review is being or will be performed under this chapter; or(2) any other type of project coordinated by TxDOT in compliance with the requirements of this section.(b) Work in TxDOT right-of-way that is not associated with a project for which TxDOT is the project sponsor under 43 TAC §2.7 of this chapter (relating to Project Sponsor) is the responsibility of the project sponsor and not of TxDOT (see Natural Resources Code, §191.0525). The project sponsor is responsible for coordinating directly with THC for such work. Examples of projects that will be coordinated by the non-TxDOT project sponsor directly with THC include but are not limited to:(1) on-system highway projects funded entirely with local funds;(2) utility relocations or installations within TxDOT right-of-way sponsored by other entities; and(3) driveway and access connections sponsored by other entities.(c) TxDOT transportation projects may be coordinated with THC outside the terms of this MOU with notification of THC.</content><note type="source"><p>Source Note: The provisions of this §2.252 adopted to be effective August 15, 2018, 43 TexReg 5237.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scH/s2.253"><num value="2.253">§2.253</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Antiquities permit--A permit issued by THC in order to regulate the taking, alteration, damage, exhumation, destruction, salvage, archeological survey, testing, excavation and study of State Antiquities Landmarks including prehistoric, historic and underwater archeological sites, and the preservation, rehabilitation, restoration, reconstruction, architectural investigation, hazard abatement, relocation, demolition, or new construction related to historic structures and buildings designated as a State Antiquities Landmark).(2) Area of potential effects (APE)--The geographic space or spaces within which a project may cause changes in the character or use of historic properties, if any such properties exist.(A) The area of potential effects for archeological properties will be confined to the limits of the proposed project right of way (including permanent and temporary easements), utility relocations designated by TxDOT, and project-specific locations designated by TxDOT. The area of potential effects also extends to the depth of impacts caused by the undertaking.(B) The area of potential effects for non-archeological historic properties will be confined to the limits of the proposed project right of way (including permanent and temporary easements), utility relocations designated by TxDOT, and project-specific locations designated by TxDOT.(3) Cultural resources--A general term referring to cemeteries; buildings; structures; objects; archeological sites, including shipwrecks; and districts more than 50 years of age with the potential to have significance in local, state, or national history.(4) Effect--Alteration to the characteristics of a historic property qualifying it for formal designation as a State Antiquities Landmark.(5) Eligibility--A property's eligibility for designation as a State Antiquities Landmark, as set forth in 13 TAC Chapter 26 (relating to Practice and Procedure).(6) Emergency permit--A permit that may be used by TxDOT under certain emergency circumstances for the purposes of performing investigations prior to formal application for an antiquities permit.(7) Historic property--Any prehistoric or historic district, site, building, structure, or object that meets the requirements for designation as a State Antiquities Landmark as set forth in 13 TAC Chapter 26 (relating to Practice and Procedure).(8) Minor widening--Roadway projects resulting in pavement profile widened to less than double their original width, resulting from adding travel/center-turn lanes or paved shoulders.(9) Project-specific location--The location of specific material sources (e.g., base material, borrow and sand pits) and other sites used by a construction contractor for a specific project.(10) State Antiquities Landmarks (SAL)--Both Archeological and Non-archeological historic properties that are designated as landmarks as defined in Subchapter D of the Antiquities Code of Texas (Natural Resources Code, Chapter 191), or treated as landmarks under the interim protection described in §26.8(d) of 13 TAC Chapter 26 (relating to Designation Procedures for Publicly Owned Landmarks), and identified in accordance with 13 TAC Chapter 26 (relating to Practice and Procedure).(11) THC--Texas Historical Commission.(12) Transportation project--A project to construct, maintain or improve a highway, rest area, toll facility, aviation facility, public transportation facility, rail facility, ferry, or ferry landing. A transportation enhancement project funded under 23 USC 133(h) is also a transportation project.(13) TxDOT--Texas Department of Transportation.</content><note type="source"><p>Source Note: The provisions of this §2.253 adopted to be effective August 15, 2018, 43 TexReg 5237.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scH/s2.254"><num value="2.254">§2.254</num><heading>Coordination Responsibilities</heading><content>(a) TxDOT. The coordination responsibilities of TxDOT under this MOU are defined as follows.(1) All coordination required by this MOU shall be conducted by or through TxDOT's Environmental Affairs Division or its successor as established by TxDOT administration, unless the Environmental Affairs Division (or its successor) and THC agree in writing to allow other appropriate organizational units of TxDOT or other entities approved by the respective agencies to conduct the coordination.(2) TxDOT shall not be a signatory to any permit issued by THC to another entity for work on a project funded or sponsored by such other entity.(b) THC. The coordination responsibilities of THC under this MOU are to conduct any review required by this subchapter in an efficient manner, to provide timely feedback to TxDOT about projects coordinated under this section, and to apply any funding provided by TxDOT solely to the review of TxDOT's projects in a manner that most efficiently streamlines THC's effective review and early coordination.</content><note type="source"><p>Source Note: The provisions of this §2.254 adopted to be effective August 15, 2018, 43 TexReg 5237.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scH/s2.255"><num value="2.255">§2.255</num><heading>Qualifications of Staff and Use of Consultants</heading><content>(a) All cultural resource investigations executed under the terms of this MOU shall be implemented by staff who meet the requirements for professional personnel as defined and set forth in 13 TAC Chapter 26 (relating to Practice and Procedure) or the Secretary of the Interior's Professional Qualification Standards (36 C.F.R. Part 61, Appendix A), and are qualified and eligible to receive an antiquities permit.(b) TxDOT has the right to perform cultural resource investigations using staff or consultants who meet the professional standards cited in subsection (a) of this section.(c) Cultural resource surveys, investigations, permit applications, and other work performed by consultants shall be coordinated with THC by or through TxDOT's Environmental Affairs Division, or its successor as established by TxDOT administration, unless it and THC agree in writing to allow other appropriate organizational units of TxDOT or other entities approved by the respective agencies to coordinate the work.</content><note type="source"><p>Source Note: The provisions of this §2.255 adopted to be effective August 15, 2018, 43 TexReg 5237.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scH/s2.256"><num value="2.256">§2.256</num><heading>Projects Excluded from Review for Archeological Sites and Cemeteries</heading><content>(a) Projects with ground disturbance of less than 100 cubic yards of impacts to undisturbed sediments, by their nature and definition, do not have the potential to affect historic properties. Such a project does not require review of its potential project impacts on archeological resources or cemeteries by THC under this chapter or under this MOU. The following list provides examples of activities with this low level of new disturbance that do not require review of their potential impacts on archeological resources or cemeteries under this chapter or under this MOU:(1) installation, repair, or replacement of fencing, signage, traffic signals, railroad warning devices, safety end treatments, cameras and intelligent highway system equipment;(2) projects involving purchase or acquisition of land without associated ground-disturbing activities;(3) routine structural maintenance and repair of bridges, highways, railroad crossings, picnic areas, and rest areas;(4) in-kind repair, replacement of lighting, signals, curbs and gutters, and sidewalks;(5) crack seal, overlay, milling, grooving, resurfacing, and restriping;(6) replacement, upgrade, and repair of safety barriers, ditches, storm drains, and culverts;(7) intersection improvements, including repair or replacement of overpasses, that require less than 0.5 acres of additional right of way at each intersection;(8) placement of riprap to prevent erosion of waterway banks and bridge piers provided no ground disturbance is required;(9) all maintenance work between a highway and an adjacent frontage road;(10) installation of noise barriers or alterations to existing publicly owned buildings less than 50 years old, to provide for noise reduction except in potential or listed National Register districts;(11) driveway and street connections;(12) all work within interchanges and within medians of divided highways;(13) all work between the flowlines of the ditches and channels and above the original line and grade;(14) ditch and channel maintenance, provided removal of fill is above the original line and grade;(15) repairs needed as a result of an event, natural or man-made, which causes damage to a designated state highway, resulting in an imminent threat to life or property of the traveling public or which substantially disrupts or may disrupt the orderly flow of traffic and commerce;(16) the installation and modification of sidewalks (including the addition of American with Disabilities Act (ADA) ramps) except:(A) sidewalk installations where the depth of impact exceeds one foot;(B) sidewalk and ADA ramp projects within the historic districts in the following cities or towns: Goliad, Rio Grande City, Roma, San Antonio, San Elizario, and San Ygnacio; and(C) sidewalk or ADA ramp projects within the limits of the following cities or towns: Anahuac, Nacogdoches, San Patricio, and Socorro;(17) routine maintenance projects;(18) vegetation control;(19) traffic control; and(20) routine painting and striping.(b) Design changes for projects that have completed all applicable review and consultation where the new activities would have less than 100 cubic yards of impacts to undisturbed sediments do not require additional review or coordination.(c) Projects that are exempt from project-specific review for compliance with 13 TAC Chapter 26 and review under this MOU, as specified in subsections (a) and (b) of this section, are also exempt from compliance with other THC rules regarding project-specific investigations or coordination for potential impacts to cemeteries promulgated under Health and Safety Code, §711.012(c), unless one of the following two conditions is present:(1) pavement would be extended to within 15 feet of the boundary of a known cemetery founded earlier than 1955; or(2) a project element would directly affect known burials.</content><note type="source"><p>Source Note: The provisions of this §2.256 adopted to be effective August 15, 2018, 43 TexReg 5237.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scH/s2.257"><num value="2.257">§2.257</num><heading>Procedures for Project Coordination when the Project Requires Review for Archeological Sites and Cemeteries</heading><content>(a) For projects subject to review for archeological sites and cemeteries under this MOU, TxDOT will evaluate the APE for potential project effects to archeological historic properties and to determine whether the APE contains cemeteries. TxDOT must make reasonable efforts and act in good faith when complying with this requirement.(b) TxDOT may approve projects to proceed to construction without review by THC when TxDOT staff finds that the project will not affect archeological historic properties and the project APE will not contain cemeteries.(c) TxDOT will submit projects to THC for review when TxDOT staff finds the project may affect archeological historic properties or the project APE contains cemeteries. TxDOT may, at its discretion, submit projects for THC review in cases where TxDOT staff finds that the project will not affect archeological historic properties, and the project APE does not contain cemeteries.(d) In cases where TxDOT seeks comment from THC on proposed identification or evaluation methods, TxDOT will recommend one or more methods.(e) In its request for review, TxDOT will make one or more of the following findings, determinations, and recommendations.(1) In cases where no archeological sites or cemeteries occur or are likely to occur in some or all of the APE, TxDOT will propose a finding of no effect in those portions of the APE and recommend that the project proceed to construction in those portions.(2) In cases where an archeological site occurs within the APE but the portion of the site within the APE does not have characteristics that qualify it as an archeological historic property or is not likely to have such characteristics, TxDOT will propose a determination that the portion of the site in the APE is not an archeological historic property, find that the project will have no effect on archeological historic properties at the site location, and recommend that the project proceed to construction at the location of the site.(3) In cases where the portion of a site within the APE has characteristics that qualify it as an archeological historic property, TxDOT will propose a determination that an archeological historic property occurs within the APE.(4) In cases where the APE contains an archeological historic property or cemetery, TxDOT will either propose a finding that the project will have no adverse effect on the site or propose a finding that the project will have an adverse effect on the site.(5) If a project will have an adverse effect on an archeological historic property or cemetery within the APE, TxDOT will also recommend to THC an appropriate means by which to resolve the adverse effect.(A) The resolution of adverse effects may take one of the following forms:(i) the avoidance of the site during construction;(ii) an alternative mitigation strategy, such as the preservation of a comparable site or the re-analysis of an existing collection;(iii) data recovery excavation or exhumation; or(iv) another form of resolution approved by THC.(B) In cases where data recovery is the selected means for resolving adverse effects, TxDOT will coordinate with THC at several stages during the data recovery process according to each of the following procedures, unless TxDOT and THC agree in writing to different procedures.(i) TxDOT will submit an initial data recovery plan as part of a permit application for data recovery to THC for review.(ii) TxDOT will submit a brief report, documenting whether the fieldwork met the terms of the initial data recovery plan and justifying any deviation, to THC for review. When appropriate, TxDOT will recommend that the project be approved to proceed to construction and destruction of any remaining portion of the site within the APE.(iii) TxDOT will submit a revised data recovery plan, based on a preliminary review of field data and recovered materials, to THC for review. When appropriate, TxDOT will recommend that the revised plan be adopted for the completion of data recovery analysis and reporting.(iv) TxDOT will submit a draft data recovery report to THC for review. When appropriate, TxDOT will recommend that the report be accepted in partial satisfaction of the terms of the permit and in satisfaction of TxDOT's obligations for resolving the adverse effects of the project on the site.(v) TxDOT will ensure that data recovery investigations do not begin before the State of Texas' legal right to ownership of the artifacts to be recovered has been secured.(6) THC will respond within 20 calendar days of receipt of the TxDOT request for review, in accordance with and pursuant to the terms set out by an interagency contract executed by THC and TxDOT. This final response will include:(A) a statement of concurrence or nonconcurrence with TxDOT's findings and recommendations;(B) a determination of site eligibility for all evaluated sites; and(C) any other comments relevant to the archeological sites or cemeteries which could be affected by the project.(f) If THC does not respond within 20 calendar days, TxDOT may assume that THC concurs with TxDOT's findings, determinations, and recommendations and may proceed in accordance with the procedures required in this MOU.</content><note type="source"><p>Source Note: The provisions of this §2.257 adopted to be effective August 15, 2018, 43 TexReg 5237.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scH/s2.258"><num value="2.258">§2.258</num><heading>Background Studies for Archeological Resources and Cemeteries</heading><content>(a) For projects subject to review for archeological sites and cemeteries under this MOU, based on the results of background research, TxDOT will identify projects or portions of projects' APEs that require archeological field investigation.(b) Eligibility determinations that TxDOT performs under this MOU will not require field investigations if sufficient background information exists to demonstrate that the portion of the site to be affected does not have potential research value.(c) Determinations that TxDOT makes under this MOU regarding the presence of cemeteries in project APEs may be made through the use of maps, project-area photographs, or other background research.</content><note type="source"><p>Source Note: The provisions of this §2.258 adopted to be effective August 15, 2018, 43 TexReg 5237.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scH/s2.259"><num value="2.259">§2.259</num><heading>Permits for Archeological Sites and Cemeteries</heading><content>(a) THC shall issue antiquities permits for reconnaissance survey, intensive survey, monitoring, eligibility testing, exhumations, and emergencies to archeological staff at TxDOT under the following terms:(1) The archeological staff of TxDOT's Environmental Affairs Division, or its successor as established by TxDOT administration, oversees the work.(2) The work shall be completed in accordance with the provisions of the MOU.(3) THC shall not require TxDOT to submit an antiquities permit application.(b) In lieu of a permit application, TxDOT archeological staff shall notify THC in writing (by email or letter) of:(1) the principal investigator;(2) the investigation type and scope of work;(3) the county in which the project will occur;(4) the project name or identifier (site trinomial, if applicable); and(5) the period of time for which the permit is desired.(c) TxDOT staff may initiate work following notification of THC.(d) THC shall issue a permit number within five business days of receiving the notification.(e) TxDOT may revise the type of investigation based on observations made during the conduct of work as long as TxDOT provides to THC notification of the change prior to submission of the report.(f) TxDOT may determine the appropriate amount of time a principal investigator will be in the field for a project based on the complexity of that project. TxDOT principal investigators will document their estimated proportion of field time on the corresponding reports of investigation.(g) When conditions of natural disasters, man-made disasters, or post-review discovery necessitate immediate action, TxDOT may initiate work under an emergency permit without having first requested and received the permit number subject to the each of the following conditions.(1) TxDOT staff shall only conduct work under an emergency permit when archeological deposits are discovered during development or other construction projects or under conditions of natural or man-made disasters that necessitate immediate action to deal with the situation and findings.(2) TxDOT will provide notification to THC to obtain the permit number within five working days of initiating the work.(3) All categories of investigations can be authorized under an emergency permit, but an emergency permit will only be issued under emergency conditions where the investigations must be initiated or performed prior to notification under subsection (b) of this section.(h) THC shall consider the work conducted under the permit completed upon receipt of:(1) one unbound report;(2) two tagged pdf format reports on an archival quality CD or DVD, one containing all maps and locational information and one with maps and locational information redacted;(3) a shape file of the project area subject to investigation; and(4) a completed abstract form.(i) The number of defaulted permits accrued by particular TxDOT staff while working for TxDOT shall not affect the issuance of additional permits to other TxDOT staff by THC for TxDOT projects.(j) The inspection of a project APE or proposed APE for purposes of evaluating the kind of archeological investigation that may be required (scoping) shall not constitute an activity that requires a permit from THC when that activity does not result in a report to be coordinated under the terms of the MOU.(k) All types of archeological investigations conducted by TxDOT but not covered by this section shall require submission of an antiquities permit application and adhere to the terms of the permit and 13 TAC Chapter 26 (relating to Practice and Procedure) with the exception that any permit issued to TxDOT under this paragraph, including data recovery permits, shall not include a requirement for project-specific outreach to be completed as part of the scope of work. TxDOT shall conduct public outreach at a program level regarding its activities under this MOU as specified in §2.269 of this subchapter (regarding Public Outreach Regarding Archeological Sites and Cemeteries).</content><note type="source"><p>Source Note: The provisions of this §2.259 adopted to be effective August 15, 2018, 43 TexReg 5237.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scH/s2.260"><num value="2.260">§2.260</num><heading>Surveys for Archeological Sites and Cemeteries</heading><content>(a) Surveys may be limited to an evaluation of existing impacts or stratigraphic integrity when these activities are sufficient to determine that any sites present are unlikely to be eligible.(b) Eligibility determinations made by TxDOT under this MOU will not require further investigation if TxDOT demonstrates that the portion of the site to be affected is not likely to have sufficient integrity to be eligible.(c) For portions of the APE where deposits may retain sufficient integrity for sites to be eligible, TxDOT survey methods will conform with THC's Archeological Survey Standards, underwater survey standards promulgated in 13 TAC Chapter 28, or with other appropriate methods, except as provided in paragraphs (1) and (2) of this subsection:(1) TxDOT reserves the right to depart from published survey standards in cases where it deems appropriate.(2) THC reserves the right to review non-standard procedures for their adequacy.(d) Survey methods will be considered adequate for the identification of burials and cemetery boundaries when the portions of the APE within 25 feet of a known cemetery have been investigated and the survey included scraping to a depth adequate to determine whether grave shafts or burials occur in the APE.(e) A survey to identify burials does not comprise an activity with the potential to cause an adverse effect to a historic property.</content><note type="source"><p>Source Note: The provisions of this §2.260 adopted to be effective August 15, 2018, 43 TexReg 5237.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scH/s2.261"><num value="2.261">§2.261</num><heading>Archeological Eligibility Testing Phase</heading><content>(a) Each of the following methods will be employed for test excavations.(1) Mechanical trenches will be excavated and profiles documented in order to characterize the area's potential for archeological deposits with sufficient integrity to be eligible to occur at the site.(2) The extent of the site within the APE will be sampled through some combination of shovel-testing, column sampling, augering with an auger diameter of not less than 12 inches, surface collection, and geophysical prospection in order to characterize the distribution of archeological materials across the site.(3) Additional units will be excavated and screened to evaluate site areas that appear to have the best potential for yielding important data with good integrity, based on the results of previous work.(4) The materials analyzed will comprise those materials most likely to contribute important information about prehistory or history.(5) TxDOT reserves the right to depart from these methods in cases where it deems appropriate and shall justify deviations in the report.(6) Testing procedures conducted for underwater archeological investigations shall be coordinated and approved by THC Marine Archeological Program (MAP).(b) Data from test excavation projects shall be made available to qualified researchers.</content><note type="source"><p>Source Note: The provisions of this §2.261 adopted to be effective August 15, 2018, 43 TexReg 5237.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scH/s2.262"><num value="2.262">§2.262</num><heading>Archeological Excavation and Data Recovery</heading><content>(a) When appropriate and established in the final research design approved by THC, TxDOT will develop public educational outreach projects for significant data recovery investigations.(b) Data from data recovery projects shall be made available to qualified researchers.(c) Research designs for underwater excavation and data recovery shall be reviewed and approved by the THC MAP.</content><note type="source"><p>Source Note: The provisions of this §2.262 adopted to be effective August 15, 2018, 43 TexReg 5237.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scH/s2.263"><num value="2.263">§2.263</num><heading>Exhumation</heading><content>(a) Exhumation is a form of investigation to resolve the adverse effects of a project on a cemetery.(b) Exhumation efforts may be staged as a separate phase of work from burial identification. Following procedures set forth in Health and Safety Code, Chapter 711, exhumation may begin once any required notifications of next of kin or other procedures required by Health and Safety Code, Chapter 711 have been conducted.(c) The following tasks represent a sufficient, reasonable and good faith effort to identify remains and any next of kin associated with burials in unknown or abandoned cemeteries:(1) making inquiries through the local County Historical Commission;(2) posting notices with local news outlets; and(3) posting notices with local churches.(d) An exhumation project is itself not a type of investigation that requires an outreach effort or curation of materials at a state-certified facility.</content><note type="source"><p>Source Note: The provisions of this §2.263 adopted to be effective August 15, 2018, 43 TexReg 5237.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scH/s2.264"><num value="2.264">§2.264</num><heading>Archeological Sites and Cemeteries found after Award of Contract</heading><content>(a) When potential historic properties are identified during implementation of a TxDOT project or unanticipated effects on historic properties are determined, work in the immediate area of the discovery shall cease, and TxDOT shall be notified of the discovery; if appropriate, security measures will be initiated to protect the discovery.(b) TxDOT will notify the THC within 48 hours of the discovery.(c) For unanticipated discoveries of archeological materials that do not contain human burials, TxDOT will undertake each of the following additional actions.(1) TxDOT will verify that the discovery does not contain human burials. As necessary, TxDOT will obtain and perform this investigation under an emergency permit or other appropriate Antiquities Permit category.(2) Upon confirmation that the discovery does not contain human burials, TxDOT may allow construction at the site to proceed.(3) TxDOT shall complete or update a State of Texas Archeological Site Data Form based on the available information.(4) TxDOT will find that the property comprises an archeological historic property.(5) TxDOT will develop a mitigation proposal to resolve the adverse effects of the undertaking on the archeological historic property. This proposal shall not necessarily involve any further excavations at the historic property.(6) The level of effort described in the proposal shall be commensurate with the nature of the resource, based on the available information.(7) TxDOT will develop the proposal in coordination with THC and obtain the appropriate Antiquities Permit for this work.(d) For unanticipated discoveries involving human burials, TxDOT shall follow the applicable requirements of the Health and Safety Code, Title 1, Section 711.(1) Work may resume in areas outside the boundaries of the cemetery.(2) Work may resume in a cemetery area if that cemetery has been removed in compliance with the applicable requirements of the Health and Safety Code, Title 1, Section 711.</content><note type="source"><p>Source Note: The provisions of this §2.264 adopted to be effective August 15, 2018, 43 TexReg 5237.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scH/s2.265"><num value="2.265">§2.265</num><heading>Standard Treatments for Particular Resource Types</heading><content>Isolated wells or cisterns unassociated with other remains will be treated as follows.(1) Isolated wells or cisterns that post-date 1900 A.D. do not warrant notification of THC or additional investigation. Removal or sealing of these features does not constitute an adverse effect.(2) Isolated wells or cisterns that pre-date 1900 A.D. require research and documentation of their location, construction, condition, and original context. Upon completion of the research and documentation, these features may be backfilled and capped. These activities do not constitute an adverse effect.</content><note type="source"><p>Source Note: The provisions of this §2.265 adopted to be effective August 15, 2018, 43 TexReg 5237.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scH/s2.266"><num value="2.266">§2.266</num><heading>Artifact Recovery and Curation</heading><content>(a) Artifact recovery.(1) Artifacts or analysis samples (such as soil samples) that are recovered from survey, testing, or data recovery investigations by TxDOT or their contracted agents that address the research questions must be cleaned, labeled, and processed in preparation for long-term curation unless the artifacts or samples are approved by THC for discard under 13 TAC Chapter 26 (relating to Practice and Procedure) and 13 TAC Chapter 29 (relating to Management and Care of Artifacts and Collections).(2) To ensure proper care and curation, recovery methods must conform to the applicable requirements of 13 TAC Chapter 26 (relating to Practice and Procedure) and 13 TAC Chapter 29 (relating to Management and Care of Artifacts and Collections).(3) Artifacts recovered from underwater testing and data recovery projects require conservation as stated in §26.15 of 13 TAC Chapter 26 and the conservation facility must be included in the permit application and data recovery plan.(b) Artifact curation.(1) TxDOT or its permitted contractor may temporarily house artifacts and samples during laboratory analysis and research, but upon completion of the analysis, artifacts and accompanying documentation must be transferred to a permanent curatorial facility in accordance with the terms of the antiquities permit.(2) Artifacts and samples will be placed at an appropriate artifact curatorial repository which fulfills the applicable requirements of 13 TAC Chapter 29 (relating to Management and Care of Artifacts and Collections), as approved by THC. When appropriate, TxDOT will consult with THC to identify for disposal collections or portions of collections that do not have identifiable value for future research or public interpretation. Final approval regarding the disposition of collections will be made by THC.(3) TxDOT is responsible for the curatorial preparation of all artifacts to be submitted for curation so that they are acceptable to the receiving curatorial repository and fulfill the applicable requirements of 13 TAC Chapter 26 (relating to Practice and Procedure) and 13 TAC Chapter 29 (relating to Management and Care of Artifacts and Collections), as approved by THC.</content><note type="source"><p>Source Note: The provisions of this §2.266 adopted to be effective August 15, 2018, 43 TexReg 5237.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scH/s2.267"><num value="2.267">§2.267</num><heading>Documentation for Archeological Sites and Cemeteries</heading><content>(a) Projects subject to review for archeological sites and cemeteries under this MOU will be documented by TxDOT in the manner described in this section. Documentation in the project file for each such project will include, at a minimum:(1) a description of the project, defining the APE or the investigated portion of the APE in three dimensions;(2) a project location map, plotting the project location on 7.5' Series USGS quadrangle maps;(3) information regarding the setting that is relevant for the assessment of the integrity of any archeological sites within the APE;(4) information on previously-recorded archeological sites in the project location;(5) description and justification of the level of effort undertaken for the investigation; and(6) results and recommendations.(b) All TxDOT survey and testing reports will also include:(1) description and justification of field methods, including the sampling strategy;(2) description and quantification of any archeological materials identified;(3) accurate plotting of any sites found on 7.5' Series USGS quadrangle maps;(4) submission of electronic TexSite archeological site survey forms to the Texas Archeological Research Laboratory; and(5) recommendations regarding whether any site merits further investigation.</content><note type="source"><p>Source Note: The provisions of this §2.267 adopted to be effective August 15, 2018, 43 TexReg 5237.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scH/s2.268"><num value="2.268">§2.268</num><heading>Quarterly Reports for Archeological Sites and Cemeteries</heading><content>Reports will be submitted by TxDOT to THC at least once per quarter, within 60 business days after the end of the calendar quarter. The report will list all projects for which TxDOT has documented that no historic properties and cemeteries are present in the project's area of potential effect, and those projects that will have no adverse effects on archeological historic properties and cemeteries.</content><note type="source"><p>Source Note: The provisions of this §2.268 adopted to be effective August 15, 2018, 43 TexReg 5237.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scH/s2.269"><num value="2.269">§2.269</num><heading>Public Outreach Regarding Archeological Sites and Cemeteries</heading><content>(a) TxDOT will conduct programmatic outreach in order to broaden understanding of Texas archeology and history and TxDOT's role in studying these topics, capitalize on partnerships to reach more stakeholders and maximize outreach success, create opportunities to do outreach using content from many different projects, and establish and maintain a link between TxDOT's public involvement and consultation efforts.(b) The outreach program will take the following forms.(1) TxDOT will develop and implement a communications plan.(2) TxDOT will increase stakeholder outreach by conducting studies of existing and potential audiences, sharing information and opportunities with partners, partnering with other agencies on educational and outreach activities, and participating in conferences and events to raise awareness of TxDOT's work.(3) TxDOT will create special projects or campaigns to support the goals of the program.(4) TxDOT will streamline public involvement by working with other internal offices to identify and engage with parties who may wish to engage in consultation on FHWA undertakings under Section 106 of the National Historic Preservation Act.(5) TxDOT will monitor the effectiveness of its efforts and make appropriate adjustments to achieve the outreach goals.</content><note type="source"><p>Source Note: The provisions of this §2.269 adopted to be effective August 15, 2018, 43 TexReg 5237.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scH/s2.270"><num value="2.270">§2.270</num><heading>Projects Excluded from Review for Non-Archeological Historic Properties</heading><content>(a) For the purposes of this section, the term historic properties will refer only to non-archeological historic properties.(b) Based on previous coordination outcomes, TxDOT and THC agree that the following types of routine roadway projects pose limited potential to affect historic properties:(1) maintenance, repair, installation, or replacement, of transportation-related features, including fencing, signage, traffic signals, railroad warning devices, safety end treatments, cameras and intelligent highway system equipment, non-historic bridges, railroad crossings, lighting, curbs and gutters, safety barriers, ditches, storm drains, non-historic culverts, overpasses, channels, rip rap, and noise barriers;(2) maintenance and in-kind repair of designated historic bridges, picnic areas, rest areas, roadside parks, and, culverts;(3) maintenance, repair, or replacement of roadway surfacing, including crack seal, overlay, milling, grooving, resurfacing, and restriping;(4) maintenance, repair, reconfiguration, or correction of roadway geometrics, including intersection improvements and driveway and street connections;(5) maintenance, repair, installation or modification of pedestrian and cycling-related features, including American with Disabilities Act ramps, trails, sidewalks, and bicycle and pedestrian lanes unless they are on historic properties protected as SAL, county courthouse, or by preservation easement or covenant;(6) maintenance, repair, relocation, addition, or minor widening of roadway, highway, or freeway features, including turn bays, center turn lanes, shoulders, U-turn bays, right turn lanes, travel lanes, interchanges, medians, and ramps;(7) maintenance, repair, replacement, or relocation of features at crossings of irrigation canals, including bridges, new vehicle crossings, bank reshaping, pipeline and standpipe components, canal conversion to below-grade siphons, and utilities;(8) repairs needed as a result of an event, natural or man-made, which causes damage to a designated state highway, resulting in an imminent threat to life or property of the traveling public, or which substantially disrupts or may disrupt the orderly flow of traffic and commerce;(9) design changes for projects that have completed all applicable review and consultation where the new project elements comprise only one or more of the activities listed in this subsection; and(10) other kinds of undertakings jointly agreed to in writing by THC and TxDOT as not requiring review.(c) For projects described in subsection (b) of this section, TxDOT qualified professional staff shall determine whether additional evaluation is required due to direct effects to historic properties. If no such evaluation is deemed necessary, such projects are determined to pose no effect on historic properties and do not require review by THC under 13 TAC Chapter 26 (relating to Practice and Procedure) or under this MOU.(d) For review-exempt projects, documentation shall be limited to that maintained in TxDOT's project files. THC may audit TxDOT files for specific projects upon request.</content><note type="source"><p>Source Note: The provisions of this §2.270 adopted to be effective August 15, 2018, 43 TexReg 5237.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scH/s2.271"><num value="2.271">§2.271</num><heading>Procedures for Project Coordination when the Project Requires Review for Non-Archeological Historic Properties</heading><content>(a) Historic properties. For the purposes of this section, the term historic properties will refer only to non-archeological historic properties.(b) Internal Review Projects. For projects subject to review for historic properties under this MOU, TxDOT qualified professional staff shall determine the presence or absence of historic properties in the area of potential effects. Such efforts should focus on the types of historic properties within public rights-of-way and other sensitive areas, including but not limited to historic bridges, historic road corridors, historic roadside parks and rest areas, historic Depression Era masonry culverts, historic districts, historic courthouse squares and other historic commercial zones. Project activities that TxDOT determines will have no effect or no adverse effect on historic properties may be internally reviewed by TxDOT and are approved for construction.(c) Coordinated Projects. If TxDOT qualified professional staff determines that a project requires individual coordination with THC for a courthouse review, easement review, or antiquities permit or due to a potential adverse effect on historic properties, TxDOT shall submit that project to THC.(1) THC will respond within 20 calendar days of receipt of TxDOT's request for review, in accordance with and pursuant to the terms set out by an interagency contract executed by THC and TxDOT, by indicating whether an affected historic property will require a historic structures permit for an SAL, whether THC intends to initiate an SAL nomination for the affected property, or whether additional consultation pursuant to a preservation easement or covenant will be required. If THC does not respond within 20 calendar days, TxDOT may assume THC's concurrence with its determinations, and TXDOT may proceed with the project to construction.(2) In accordance with Government Code, §442.008 and 13 TAC §17.2 (relating to Review of Work on County Courthouses), TxDOT will notify THC of any work affecting a county courthouse or its surrounding site, up to and including the curb. THC will respond within 20 calendar days of receipt of TxDOT's notification by indicating whether a historic structures permit for an SAL or additional consultation pursuant to a preservation covenant or easement will be required.(d) Documentation. For projects that are internally reviewed or individually coordinated under subsections (b) and (c) of this section, TxDOT will comply with the following project documentation requirements.(1) Projects that are internally reviewed under subsection (b) of this section, TxDOT shall retain all documentation in the project file and will provide documentation to the THC upon request with memos and basic project information submitted through the THC's electronic review and compliance (eTRAC) system or other means, as appropriate.(2) Projects that are individually coordinated under subsection (c) of this section, documentation submitted to THC will include:(A) project description and scope;(B) project location map with delineation of the APE and location of historic properties;(C) methodology used to identify historic properties;(D) photographic and descriptive information for each identified property;(E) justification for findings of historic properties, including setting, integrity, and contextual information;(F) justification of effects on historic properties, including evaluations, reports, and other information relevant to the findings by TxDOT; and(G) a description of efforts to avoid or minimize harm, mitigation, and commitments.</content><note type="source"><p>Source Note: The provisions of this §2.271 adopted to be effective August 15, 2018, 43 TexReg 5237.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scH/s2.272"><num value="2.272">§2.272</num><heading>Project File</heading><content>TxDOT's Environmental Compliance and Oversight System (ECOS) is the project file of record for each project coordinated under this MOU.</content><note type="source"><p>Source Note: The provisions of this §2.272 adopted to be effective August 15, 2018, 43 TexReg 5237.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scH/s2.273"><num value="2.273">§2.273</num><heading>Denial of Access</heading><content>In cases where access to private land for conducting investigations is denied prior to the approval of the environmental review document, TxDOT will make a commitment to complete appropriate investigations once access is obtained, but prior to any construction related impacts.</content><note type="source"><p>Source Note: The provisions of this §2.273 adopted to be effective August 15, 2018, 43 TexReg 5237.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scH/s2.274"><num value="2.274">§2.274</num><heading>MOU to Govern TxDOT Procedures</heading><content>TxDOT satisfies applicable THC requirements if it utilizes the procedures of this MOU in lieu of other applicable THC procedures. In cases where TxDOT is utilizing this MOU in lieu of other THC procedures, TxDOT must follow the requirements of this MOU.</content><note type="source"><p>Source Note: The provisions of this §2.274 adopted to be effective August 15, 2018, 43 TexReg 5237.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scH/s2.275"><num value="2.275">§2.275</num><heading>Project-Specific Agreements</heading><content>Any project-specific agreements reached between TxDOT and THC regarding the evaluation or treatment of project effects shall be honored by both parties and shall supersede the requirements of this MOU. TxDOT and THC may deviate from the terms of the agreement only when both parties concur that the agreement requires revision.</content><note type="source"><p>Source Note: The provisions of this §2.275 adopted to be effective August 15, 2018, 43 TexReg 5237.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scH/s2.276"><num value="2.276">§2.276</num><heading>Continuous Improvement Agreement</heading><content>TxDOT and THC agree to collaborate on improvements to their programs and development of innovative solutions for expedited review procedures. Such mechanisms may include using project outcomes to refine approaches to resource identification, evaluation, treatment methods, programmatic mitigation measures and interagency agreements that facilitate early coordination, and streamlining and expedited review of TxDOT's transportation projects.</content><note type="source"><p>Source Note: The provisions of this §2.276 adopted to be effective August 15, 2018, 43 TexReg 5237.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scH/s2.277"><num value="2.277">§2.277</num><heading>THC Review of TxDOT Project Files</heading><content>THC may review TxDOT project files for specific undertakings carried out under this MOU. THC may recommend process improvements based on issues identified during the review.</content><note type="source"><p>Source Note: The provisions of this §2.277 adopted to be effective August 15, 2018, 43 TexReg 5237.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scH/s2.278"><num value="2.278">§2.278</num><heading>Dispute Resolution</heading><content>THC and TxDOT staff will be responsible for attempting to resolve any conflict between THC and TxDOT that results from the implementation of this subchapter before elevating to agency management.</content><note type="source"><p>Source Note: The provisions of this §2.278 adopted to be effective August 15, 2018, 43 TexReg 5237.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scH/s2.279"><num value="2.279">§2.279</num><heading>Review of MOU</heading><content>This MOU shall be reviewed and updated as provided by law or by agreement between the parties. THC and TxDOT agree to convene every four years to review, update, or extend this agreement.</content><note type="source"><p>Source Note: The provisions of this §2.279 adopted to be effective August 15, 2018, 43 TexReg 5237.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c2/scI"><num value="I">SUBCHAPTER I</num><heading>MEMORANDUM OF UNDERSTANDING WITH THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY</heading><section identifier="/us/state/tx/tac/t43/p1/c2/scI/s2.301"><num value="2.301">§2.301</num><heading>Purpose</heading><content>This subchapter contains the Memorandum of Understanding (MOU) between the Texas Department of Transportation (TxDOT) and the Texas Commission on Environmental Quality (TCEQ) concerning the review of the potential environmental effect of transportation projects as required by Transportation Code §201.607. The MOU does not affect coordination or permits required by other state or federal laws; however, as set forth in this MOU, TxDOT may elect to coordinate with TCEQ under this MOU concerning transportation projects that this MOU does not require to be coordinated. The purpose of this MOU is to provide a formal mechanism by which TCEQ reviews transportation projects that have the potential to affect resources within TCEQ's jurisdiction. This MOU also promotes the mutually beneficial sharing of information between TxDOT and TCEQ, which will assist TxDOT in making environmentally sound decisions.</content><note type="source"><p>Source Note: The provisions of this §2.301 adopted to be effective March 20, 2019, 44 TexReg 1447.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scI/s2.302"><num value="2.302">§2.302</num><heading>Authority</heading><content>(a) Transportation Code, §201.607, directs the Texas Department of Transportation to adopt memoranda of understanding with each agency that has responsibilities for the protection of the natural environment.(b) Under Water Code, §5.104(b) and Health and Safety Code, §382.035, the Texas Commission on Environmental Quality (TCEQ) may enter into a memorandum of understanding with any other state agency and shall adopt by rule any memorandum of understanding between TCEQ and any other state agency.</content><note type="source"><p>Source Note: The provisions of this §2.302 adopted to be effective March 20, 2019, 44 TexReg 1447.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scI/s2.303"><num value="2.303">§2.303</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise. Any other words or terms used in this Memorandum of Understanding have their ordinary meaning, except to the extent such words or terms are defined in §2.5 of this chapter (relating to Definitions), in which case such definitions shall apply.(1) Assessment unit--For a water body in the state, the smallest geographic area of use support analyzed for such body in Texas Commission on Environmental Quality's most recent integrated report prepared under the Clean Water Act §305(b) that includes a Clean Water Act §303(d) list that has been approved by the U.S. Environmental Protection Agency. An assessment unit is based on the primary segment assessment unit identified in the integrated report.(2) Construction--Activities that involve the building of transportation projects on new location; or the expansion, rehabilitation, or reconstruction, of an existing facility.(3) EPA--The United States Environmental Protection Agency.(4) Federal Clean Air Act (FCAA)--The federal statute, including all amendments, that establishes National Ambient Air Quality Standards (NAAQS) and mandates procedures for reaching and maintaining these standards, codified at 42 United States Code §§7401, et seq.(5) Maintain or maintenance--Activities which involve the upkeep or preservation of an existing facility to prevent that facility's degradation to an unsafe or irreparable state, or which involve the treatment of an existing facility or its environs to meet acceptable standards of operation or aesthetic quality. The activities generally do not require the acquisition of additional right of way or result in increased roadway capacity.(6) Maintenance area--A geographic area previously designated as a non-attainment area and subsequently redesignated to attainment subject to the requirement to develop a maintenance plan under 42 United States Code §7505a of the FCAA, and other areas designated as maintenance areas by the EPA.(7) Non-attainment area--A geographic area designated nonattainment by the EPA as failing to meet the NAAQS for a pollutant for which a standard exists. The EPA designates counties (or portions thereof) as nonattainment under the provisions of 42 United States Code §7407(d). For the official list and boundaries of nonattainment areas, see 40 Code of Federal Regulations Part 81 and relevant notices in the Federal Register. (8) State Implementation Plan (SIP)--The plan prepared by the TCEQ under 42 United States Code §7410 of the FCAA to attain, maintain, implement, or enforce NAAQS. An approved SIP is the implementation plan, or most recent revision of this plan, that has been approved by EPA under 42 United States Code §7410 of the FCAA.(9) TCEQ--Texas Commission on Environmental Quality.(10) TxDOT--Texas Department of Transportation.(11) Total Maximum Daily Load (TMDL)--The total amount of a substance that a water body can assimilate and still meet the Texas Surface Water Quality Standards as adopted by the TCEQ for a particular water body.(12) TMDL Implementation Plan (I-Plan)--A plan describing the strategy and activities TCEQ and watershed partners will carry out to improve water quality in the affected watershed.(13) Transportation enhancement--An activity that is listed under 23 United States Code §101(a)(29), that relates to a transportation project, and is eligible for federal funding under 23 United States Code §133.(14) Transportation project--A project to construct, maintain, or improve a highway, rest area, toll facility, aviation facility, public transportation facility, rail facility, ferry, or ferry landing. A transportation enhancement is also a transportation project.</content><note type="source"><p>Source Note: The provisions of this §2.303 adopted to be effective March 20, 2019, 44 TexReg 1447.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scI/s2.304"><num value="2.304">§2.304</num><heading>Responsibilities</heading><content>(a) TxDOT is responsible for the development, construction, maintenance, and operation of the state highway system and other transportation systems as designated by the legislature.(b) TCEQ is the state air and water pollution control agency and is the principal authority in Texas on matters relating to the quality of the state's air and water resources, including the following:(1) Air quality. TCEQ's primary responsibility relating to air, as designated by Health and Safety Code, §382.002, includes, but is not limited to, setting standards, criteria, levels, and emission limits for air quality and air pollution control; and(2) Water quality. TCEQ is charged with the protection of water quality, water rights, and the adoption and enforcement of rules and performance of other acts relating to the safe construction, maintenance, and removal of dams. TCEQ's jurisdiction over water quality, water rights, and enforcement of both water quality, water rights, and dam safety includes, but is not limited to, those items outlined in Water Code §5.013.</content><note type="source"><p>Source Note: The provisions of this §2.304 adopted to be effective March 20, 2019, 44 TexReg 1447.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scI/s2.305"><num value="2.305">§2.305</num><heading>Coordination during Environmental Review Process</heading><content>(a) Applicability. This section specifies when TxDOT shall coordinate a transportation project with TCEQ. TxDOT may elect to coordinate with TCEQ concerning other transportation projects that this MOU does not require to be coordinated.(1) Not applicable. This MOU does not apply to a project that TxDOT classifies as a categorical exclusion under §2.81 of this chapter (relating to Categorical Exclusions) and TxDOT is not required to coordinate such projects with TCEQ.(2) Applicable. TxDOT will coordinate with TCEQ on transportation projects that require environmental impact statements, supplemental environmental impact statements, and environmental assessments as defined in §2.5 of this chapter, in the manner described in subsection (b) of this section.(3) Reevaluations. If TxDOT prepares a written reevaluation for an EIS or EA level transportation project under §2.85 of this chapter (relating to Reevaluations), TxDOT shall coordinate the reevaluation with TCEQ if the earlier coordination concerning the project is no longer valid as a result of changes in the project.(b) Coordination Process.(1) TxDOT will submit a notice of availability for each draft environmental impact statement, supplemental environmental impact statement, and environmental assessment pursuant to §2.108 (relating to Notice of Availability) to the e-mail address specified by TCEQ in writing.(2) If required by the applicable sections, a notice of availability submitted to TCEQ pursuant to this section will include notice of an opportunity for public hearing as provided by §2.106 (relating to Opportunity for Public Hearing) or notice of a public hearing as provided by §2.107 (relating to Public Hearing).(3) TxDOT shall ensure that each review document for which TCEQ receives notice under paragraph (1) of this subsection meets the following criteria.(A) Air quality. The review document shall indicate whether the project adds capacity in a nonattainment or maintenance area for one or more federal Clean Air Act National Ambient Air Quality Standards.(B) Water resources. The review document shall include:(i) The location of the project in the watershed, segment name, segment number, and the assessment unit number. The review document shall also provide:(I) information identifying the associated activities which will be implemented, operated, and maintained in a manner that is consistent with an approved TMDL or approved I-Plan when the project is located within five miles of, and within the watershed of, an impaired assessment unit under Section 303(d) of the federal Clean Water Act; and(II) information describing the process for compliance, when applicable, with the Texas Pollutant Discharge Elimination System (TPDES) program and the TCEQ's Water Quality Certification Program under Section 401 of the CWA.(ii) Whether the transportation project will require Tier II individual Clean Water Act Section 401 certification under procedures defined in the most recent version of the memorandum of agreement between the U.S. Army Corps of Engineers and TCEQ.(iii) For a transportation project located in the recharge, transition, or contributing zones of the Edwards Aquifer, pursuant to 30 TAC Chapter 213, Subchapters A and B (relating to Edwards Aquifer), the location of the project within the Edwards Aquifer and a statement that the proposed project and associated activities shall be implemented, operated, and maintained in a manner that complies with the Edwards Aquifer rules and any applicable TCEQ guidance documents in effect to implement the rules.(4) TCEQ shall have a minimum period of 30 days, from the date of receipt, to review the draft environmental impact statement, supplemental environmental impact statement, or environmental assessment and provide written comments. Before the deadline for review, TCEQ may, if necessary, notify TxDOT that it is extending the review period for no more than 15 additional days. TCEQ will submit any comments to the e-mail address specified by TxDOT in writing.(5) If TCEQ provides comments within the timeframe described in paragraph (4) of this subsection, TxDOT will consider TCEQ's comments as applicable. TCEQ's comments will be made part of the project file. TxDOT will consider TCEQ comments submitted to TxDOT after the timeframe described in paragraph (4) of this subsection to the extent possible, given the stage of the environmental review process at the time of the submission.</content><note type="source"><p>Source Note: The provisions of this §2.305 adopted to be effective March 20, 2019, 44 TexReg 1447.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scI/s2.306"><num value="2.306">§2.306</num><heading>Exchange of Air Quality Information</heading><content>(a) Upon request by TxDOT, TCEQ will provide publicly available information to TxDOT related to air quality, such as:(1) information useful for establishing existing air quality conditions to be described in an environmental review document;(2) the location and severity of conditions in non-attainment areas;(3) information affecting transportation-related activity and mobile sources in the state implementation plan; and(4) proposed and existing locations of roadside air monitors.(b) TxDOT and TCEQ will exchange data useful for developing mobile source budgets, and data on transportation conformity determinations, including for any area newly designated by EPA as a non-attainment area.</content><note type="source"><p>Source Note: The provisions of this §2.306 adopted to be effective March 20, 2019, 44 TexReg 1447.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scI/s2.307"><num value="2.307">§2.307</num><heading>No Waiver of Rights</heading><content>As the state environmental regulatory agency, TCEQ reserves all rights it has to enforce relevant laws, and the parties intend that TCEQ's participation in this MOU does not have the effect of waiving those rights or the requirements of any laws that apply to the projects covered by this MOU. The parties agree that this MOU does not preclude either party from making any legal argument.</content><note type="source"><p>Source Note: The provisions of this §2.307 adopted to be effective March 20, 2019, 44 TexReg 1447.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scI/s2.308"><num value="2.308">§2.308</num><heading>Review of MOU</heading><content>This MOU shall be reviewed and updated no later than five years from the adoption date. TxDOT and TCEQ by rule shall adopt the MOU and all revisions to the MOU. If a change in state or federal law or a change in the SIP necessitates a change in this MOU, or if the parties agree that there has been a significant increase in the number of transportation projects requiring TxDOT to coordinate with TCEQ, then representatives from both TxDOT and TCEQ will meet to work out a mutually agreeable amendment to the MOU.</content><note type="source"><p>Source Note: The provisions of this §2.308 adopted to be effective March 20, 2019, 44 TexReg 1447.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c2/scJ"><num value="J">SUBCHAPTER J</num><heading>GULF INTRACOASTAL WATERWAY PROJECTS</heading><section identifier="/us/state/tx/tac/t43/p1/c2/scJ/s2.351"><num value="2.351">§2.351</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise.(1) Beneficial use--The productive and positive use of dredged material as proposed by the U.S. Army Corps of Engineers.(2) Disposal plan--A plan that evaluates and identifies preferred alternative dredge material placement areas to accommodate the U.S. Army Corps of Engineers' dredging needs along the GIWW.(3) Gulf Intracoastal Waterway (GIWW)--The main channel, not including tributaries or branches, of the shallow draft navigation channel running from the Sabine River southward along the Texas coast to the Brownsville Ship Channel near Port Isabel.</content><note type="source"><p>Source Note: The provisions of this §2.351 adopted to be effective March 13, 2024, 49 TexReg 1504.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scJ/s2.352"><num value="2.352">§2.352</num><heading>Maintenance and Sponsorship of GIWW</heading><content>(a) The U.S. Army Corps of Engineers is responsible for maintaining the GIWW.(b) The State of Texas, under Transportation Code, Chapter 51, is the nonfederal sponsor of the GIWW, and the commission is the state's designee.</content><note type="source"><p>Source Note: The provisions of this §2.352 adopted to be effective March 13, 2024, 49 TexReg 1504.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scJ/s2.353"><num value="2.353">§2.353</num><heading>Disposal Plans</heading><content>(a) The department may participate in the development of a disposal plan for dredged material.(b) Legislative approval is required for any substantive change to the disposal plan developed for the Laguna Madre reach of the GIWW dated October 11, 2002.</content><note type="source"><p>Source Note: The provisions of this §2.353 adopted to be effective March 13, 2024, 49 TexReg 1504.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scJ/s2.354"><num value="2.354">§2.354</num><heading>State Participation in a Beneficial Use Project</heading><content>(a) The department may participate in the development of a beneficial use project for dredged material.(b) The department will accept from the U.S. Army Corps of Engineers proposals for beneficial use projects in one or more of the following categories:(1) habitat development;(2) beach nourishment;(3) aquaculture;(4) parks and recreation;(5) agriculture, forestry, and horticulture;(6) strip mine reclamation and solid waste management;(7) shoreline stabilization and erosion control;(8) construction and industrial use; or(9) material transfer, such as transfer for fill, dikes, levees, parking lots, roads.(c) The U.S. Army Corps of Engineers will submit a proposal in writing to the executive director or the executive director's designee. The proposal will include:(1) a description of the proposed beneficial use project and anticipated benefits;(2) a map delineating the location or locations of the proposed beneficial use project;(3) a proposed project schedule including an anticipated completion date;(4) a detailed estimate of the project cost, including an estimate of the U.S. Army Corps of Engineers' financial contributions to the project; and(5) a plan addressing the operation and maintenance of the facility created by or benefiting from the beneficial use project.</content><note type="source"><p>Source Note: The provisions of this §2.354 adopted to be effective March 13, 2024, 49 TexReg 1504.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scJ/s2.355"><num value="2.355">§2.355</num><heading>Interagency Coordination</heading><content>(a) The interagency coordination team is a group established by the U.S. Army Corps of Engineers to review proposed federal development projects related to the GIWW. The department is a member of the team. The team's duties include advising on the determinations of consistency with the Texas Coastal Management Program.(b) The department will coordinate with appropriate state and federal agencies to develop a proposal for disposal plans or beneficial use projects.</content><note type="source"><p>Source Note: The provisions of this §2.355 adopted to be effective March 13, 2024, 49 TexReg 1504.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scJ/s2.356"><num value="2.356">§2.356</num><heading>Investigation of Proposed Disposal Plan or Beneficial Use Project</heading><content>(a) The interagency coordination team described by §2.355(a) of this subchapter (relating to Interagency Coordination) will investigate disposal plans and beneficial use projects and evaluate the environmental and operational suitability of each.(b) The department or U.S. Army Corps of Engineers will lead any field investigations. The agencies that are members of the interagency coordination team will be requested to participate in field investigations and to provide to the department written evaluations of the disposal plans and beneficial use projects investigated.(c) The interagency coordination team will discuss with the department any proposed disposal plans or beneficial use projects.</content><note type="source"><p>Source Note: The provisions of this §2.356 adopted to be effective March 13, 2024, 49 TexReg 1504.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scJ/s2.357"><num value="2.357">§2.357</num><heading>Preparation of Environmental Review Document and Public Participation</heading><content>After a disposal plan or beneficial use project related to the GIWW has been proposed, the department will assist with:(1) the preparation of the environmental review document by the U.S. Army Corps of Engineers under 42 U.S.C. §4321 et seq. and applicable federal rules; and(2) any public participation process conducted by the U.S. Army Corps of Engineers.</content><note type="source"><p>Source Note: The provisions of this §2.357 adopted to be effective March 13, 2024, 49 TexReg 1504.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scJ/s2.358"><num value="2.358">§2.358</num><heading>Notification of and Assistance to Property Owners</heading><content>(a) Before a public hearing under §2.360 of this subchapter (relating to Procedures for State Acquisition of Real Property), the department will:(1) provide to each public or private owner of real property to be acquired notice of the environmental and operational suitability of the property for the proposed disposal plan, use as a dredged material placement area, or beneficial use project;(2) offer to meet with such an owner to answer questions about the proposed disposal plan, dredged material placement area, or beneficial use project related to the proposed acquisition; and(3) notify the owner of any public meeting or public hearing on the proposed disposal plan, dredged material placement area, or beneficial use project.(b) Before a public hearing under §2.360 of this subchapter, the department also will hold meetings on the proposed disposal plan, dredged material placement area, or beneficial use project related to the proposed acquisition with the owners of property adjacent to the property being acquired and with other affected property owners, if those owners request such a meeting.</content><note type="source"><p>Source Note: The provisions of this §2.358 adopted to be effective March 13, 2024, 49 TexReg 1504.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scJ/s2.359"><num value="2.359">§2.359</num><heading>Public Meeting</heading><content>(a) The department may hold one or more public meetings on a proposed disposal plan, dredged material placement area, or beneficial use project.(b) The department will publish notice of a public meeting under this section in a newspaper having general circulation in each county in which the proposed disposal plan, dredged material placement area, or beneficial use project is located and post the notice on the department's website.</content><note type="source"><p>Source Note: The provisions of this §2.359 adopted to be effective March 13, 2024, 49 TexReg 1504.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scJ/s2.360"><num value="2.360">§2.360</num><heading>Procedures for State Acquisition of Real Property</heading><content>(a) If the commission proposes the acquisition of real property necessary to enable it to meet its responsibilities as the nonfederal sponsor of the GIWW, or if the commission proposes to participate in the cost of a project to beneficially use dredge material that requires the acquisition of an interest in real property, the commission, through the department, will hold a public hearing to receive evidence and testimony concerning the desirability of the disposal plan, the proposal to use the real property as a dredged material placement area under an existing disposal plan, or the beneficial use project.(b) The department will publish notice of the plan, proposal, or project and the date, time, and place of the public hearing at least once a week for three successive weeks before the hearing in a newspaper of general circulation of each county in which any part of a proposed dredge material disposal site, channel alteration, or beneficial use project would be located.(c) The department also will:(1) publish notice of the hearing in at least one edition of the Texas Register; and(2) post notice of the hearing on the department's website.(d) The department will display the U.S. Army Corps of Engineers' environmental documents and findings at the public hearing. (e) Comments, testimony, or evidence may be given in person or in writing during the public hearing or may be submitted in writing to the department during the prescribed public comment period.</content><note type="source"><p>Source Note: The provisions of this §2.360 adopted to be effective March 13, 2024, 49 TexReg 1504.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scJ/s2.361"><num value="2.361">§2.361</num><heading>Commission Approval</heading><content>(a) After a public hearing under §2.360 of this subchapter (relating to Procedures for State Acquisition of Real Property), the commission may approve and implement the proposed disposal plan, property use as a dredged material placement area, or beneficial use project, including the acquisition of real property, if it determines that the plan, property use, or project can be accomplished without an unjustifiable waste of publicly or privately owned natural resources or a permanent and substantial adverse impact on the environment, wildlife, or fisheries.(b) To approve and implement a beneficial use project, in addition to the determination required under subsection (a) of this section, the commission must determine that the project:(1) is proposed by the U.S. Army Corps of Engineers;(2) is for one or more beneficial use activities having a direct relationship to the GIWW;(3) has local support;(4) is limited to a logical unit of work and capable of being implemented and completed within a reasonable time as determined by the department; and(5) is consistent with the Texas Coastal Management Program.(c) Local support under subsection (b)(3) of this section is shown by a resolution or other official document that is adopted or approved by the governing body of the city or county with jurisdiction over the area in which the project is located or, if the project area is located in more than one jurisdiction, by the governing body of the city or county within which a majority of the area of the project is located, with the adoption or approval occurring after that governing body has consulted with the other jurisdictions. The jurisdiction of a city is the area within the incorporated city limits and the extraterritorial jurisdiction of the city. The jurisdiction of a county is the area within the boundaries of the county that is not within the jurisdiction of the cities located in the county.</content><note type="source"><p>Source Note: The provisions of this §2.361 adopted to be effective March 13, 2024, 49 TexReg 1504.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scJ/s2.362"><num value="2.362">§2.362</num><heading>Agreement to Participate in Beneficial Use Project</heading><content>If the commission approves the department's participation in a beneficial use project, the commission will enter into an agreement with the U.S. Department of the Army to participate in the cost of the project.</content><note type="source"><p>Source Note: The provisions of this §2.362 adopted to be effective March 13, 2024, 49 TexReg 1504.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scJ/s2.363"><num value="2.363">§2.363</num><heading>Participation in Existing Beneficial Use Project</heading><content>(a) The department, with the commission's approval and in accordance with this section, may participate financially in an existing beneficial use project.(b) The U.S. Army Corps of Engineers will submit proposals in writing to the executive director or the executive director's designee. A proposal must include:(1) a description of the beneficial use project and its benefits;(2) a map delineating the location of the beneficial use project;(3) a proposed project schedule that includes an anticipated completion date;(4) a detailed estimate of the project cost and an estimate of each amount contributed to the project by the U.S. Army Corps of Engineers and each other participating entity;(5) a plan addressing the operations and maintenance of the facility created by or benefiting from the beneficial use project; and(6) existing documentation related to the operational and environmental suitability of the project and existing results of field investigations, if available.(c) The commission may approve participation under this section if it determines that the project:(1) can be accomplished without:(A) an unjustifiable waste of publicly or privately owned natural resources; and(B) a permanent and substantial adverse impact on the environment, wildlife, or fisheries; and(2) will result in one or more beneficial use activities having a direct relationship of function or impact to the GIWW.</content><note type="source"><p>Source Note: The provisions of this §2.363 adopted to be effective March 13, 2024, 49 TexReg 1504.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c2/scJ/s2.364"><num value="2.364">§2.364</num><heading>Prohibition on Use of Funds</heading><content>Funds provided by the department under this subchapter may not be used for maintenance or operation of a beneficial use project.</content><note type="source"><p>Source Note: The provisions of this §2.364 adopted to be effective March 13, 2024, 49 TexReg 1504.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p1/c3"><num value="3">CHAPTER 3</num><heading>PUBLIC INFORMATION</heading><subchapter identifier="/us/state/tx/tac/t43/p1/c3/scB"><num value="B">SUBCHAPTER B</num><heading>ACCESS TO OFFICIAL RECORDS</heading><section identifier="/us/state/tx/tac/t43/p1/c3/scB/s3.10"><num value="3.10">§3.10</num><heading>Purpose and Scope</heading><content>It is the policy of the Texas Department of Transportation to provide the public complete information regarding the affairs of the department in a manner that will facilitate and maximize public access. In compliance with the Public Information Act, Government Code, Chapter 552, and other statutes relating to the availability of public information, the sections under this subchapter provide policies and procedures governing public access to official department public records.</content><note type="source"><p>Source Note: The provisions of this §3.10 adopted to be effective September 26, 1996, 21 TexReg 8955; amended to be effective October 21, 2001, 26 TexReg 8194.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c3/scB/s3.11"><num value="3.11">§3.11</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--Texas Transportation Commission.(2) Department--Texas Department of Transportation.(3) District engineer--The chief administrative officer of a district of the department.(4) Division director--The chief administrative officer of a division or office of the department.(5) Written request--A request made in writing, including a request made by electronic means.</content><note type="source"><p>Source Note: The provisions of this §3.11 adopted to be effective September 26, 1996, 21 TexReg 8955; amended to be effective October 20, 1997, 22 TexReg 10155; amended to be effective July 23, 2000, 25 TexReg 6802; amended to be effective October 21, 2001, 26 TexReg 8194; amended to be effective May 20, 2010, 35 TexReg 3851; amended to be effective February 20, 2014, 39 TexReg 998; amended to be effective June 17, 2020, 45 TexReg 4057.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c3/scB/s3.12"><num value="3.12">§3.12</num><heading>Public Access</heading><content>(a) Request for records. A person seeking records under Government Code, Chapter 552, Public Information, must submit a request in writing to the department. The department will accept only a written request that is delivered to the officer for public information or a person designated by that officer and that is made using one of the following methods:(1) United States mail to any district or division office;(2) hand delivery to any district or division office;(3) electronic mail to TxDOT_ORR@txdot.gov; or(4) electronic submission through the open records portal on the department's Internet website, located at http://www.txdot.gov.(b) Production of records. Except as provided in subsections (d), (e), and (f) of this section, the department will provide copies or promptly produce official department records for inspection, duplication, or both. If the requested information is unavailable for inspection at the time of the request because it is in active use or otherwise not readily available, the department will certify this fact in writing within 10 business days after the date the information is requested to the applicant and specify a date within a reasonable time when the record will be available for inspection or duplication.(c) Examination of information.(1) A person requesting to examine official records in the offices of the department must complete the examination without disrupting the normal operations of the department and not later than the 10th day after the date the records are made available to the person. Upon written request, the department will extend the examination period by increments of 10 days, not to exceed a total of 30 days.(2) The inspection of records may be interrupted by the department if the records are needed for use by the department. The period of interruption will not be charged against the requestor's 10-day period to examine the records.(3) A person may not remove an original copy of an official department record from the offices of the department.(d) Request for opinion. If the department considers that requested records fall within an exception under the Government Code, and that the records should be withheld, the department will ask for a decision from the attorney general about whether the records are within that exception if there has not been a previous determination about whether the records fall within one of the exceptions. The request for a decision from the attorney general will be made by the 10th business day after the date of receiving the written request.(e) Certified records. In accordance with Transportation Code, §201.501, the following officials shall serve as the executive director's authorized representatives for the purpose of certifying official department records.(1) The department's chief clerk to the commission or assistant chief clerk may certify commission minute orders. The executive director may delegate certification authority to other officials to assure sufficient availability of authorized certifying officials.(2) Other official records of the department may be certified by the district engineer, division director, or other department official having official custody of the records. A district engineer or division director may delegate certification authority to other officials to assure sufficient availability of authorized certifying officials.(f) Correction of Information. An individual may request the correction of information about that individual in the following manner:(1) A request to correct information may be submitted in writing or through the department's Internet site, located at http://www.txdot.gov. The request must be directed to the district engineer or division director of the district or division responsible for the information.(2) The request must include the individual's name, address, and telephone number.(3) The request must identify the record to be corrected with as much specificity as reasonably possible. The department will not process requests that do not identify particular records.(4) This subsection applies only to a request to correct information that relates directly to an individual, including the individual's name, address, telephone number, and similar information.(5) The department may contact the individual or take other steps as necessary to obtain additional information with regard to the record to be corrected, the nature of the correction to be made, the reasons that the current information maintained by the department is incorrect, or other relevant matters.(6) The district engineer or division director responsible for the information will determine if the current information maintained by the department is incorrect.(A) If the current information maintained by the department is determined to be incorrect, the department's records will be corrected. The district engineer or division director responsible for the information will determine the manner in which the correction will be made.(B) If the current information maintained by the department is determined to be correct, the request for correction will be noted in connection with the relevant record.(C) The department may refuse to alter records that were correct at the time they were first prepared, but are no longer correct. If the department refuses to alter a record that was correct at the time it was first prepared, but is no longer correct, the request for correction will be noted in connection with the relevant record.(7) This subsection does not authorize the cancellation, issuance, or alteration of any official record, including a title, a license, or a permit. Application for a new official record must be made in the manner required by law.</content><note type="source"><p>Source Note: The provisions of this §3.12 adopted to be effective September 26, 1996, 21 TexReg 8955; amended to be effective October 20, 1997, 22 TexReg 10155; amended to be effective June 21, 1998, 23 TexReg 6254; amended to be effective July 23, 2000, 25 TexReg 6802; amended to be effective October 21, 2001, 26 TexReg 8194; amended to be effective November 18, 2004, 29 TexReg 10582; amended to be effective May 20, 2010, 35 TexReg 3851; amended to be effective March 21, 2013, 38 TexReg 1877; amended to be effective February 20, 2014, 39 TexReg 998; amended to be effective June 17, 2020, 45 TexReg 4057.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c3/scB/s3.13"><num value="3.13">§3.13</num><heading>Waiver of Fees for Certain Copies of Official Records</heading><content>(a) On request, the department will provide copies of relevant records free of charge to an official party to an internal employee complaint regarding discrimination, harassment, retaliation, or unprofessional conduct. The division responsible for performing the complaint investigation will determine which records are relevant under this subsection.(b) The department may waive or reduce the fees charged for copies of records if the executive director or the district engineer or division director with jurisdiction over the records determines a waiver to be in the public interest because providing the records primarily benefits the general public or because the records can be produced at a minimal expense to the public.</content><note type="source"><p>Source Note: The provisions of this §3.13 adopted to be effective September 26, 1996, 21 TexReg 8955; amended to be effective October 20, 1997, 22 TexReg 10155; amended to be effective July 23, 2000, 25 TexReg 6802; amended to be effective October 21, 2001, 26 TexReg 8194; amended to be effective November 18, 2004, 29 TexReg 10582; amended to be effective January 3, 2008, 32 TexReg 10057; amended to be effective May 20, 2010, 35 TexReg 3851; amended to be effective February 20, 2014, 39 TexReg 998; amended to be effective June 17, 2020, 45 TexReg 4057.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c3/scC"><num value="C">SUBCHAPTER C</num><heading>COMPLAINT RESOLUTION</heading><section identifier="/us/state/tx/tac/t43/p1/c3/scC/s3.20"><num value="3.20">§3.20</num><heading>Purpose</heading><content>(a) Transportation Code, §201.801, requires the department to:(1) maintain a system to promptly and efficiently act on complaints filed with the department;(2) maintain information about the parties to and the subject matter of a complaint and a summary of the review or investigation of the complaint and the disposition of the complaint;(3) periodically notify the parties to the complaint of its status until final disposition unless notice would jeopardize an undercover investigation; and(4) make information available describing its procedures for complaint investigation and resolution.(b) This subchapter prescribes the policies and procedures by which complaints may be filed, resolved, and recorded, and by which the department will notify customers of its complaint process.</content><note type="source"><p>Source Note: The provisions of this §3.20 adopted to be February 16, 2012, 37 TexReg 715.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c3/scC/s3.21"><num value="3.21">§3.21</num><heading>Applicability</heading><content>The policies and procedures of this subchapter do not apply to a:(1) contested case under §§1.21 - 1.38 of this title (relating to Procedures in Contested Case);(2) vendor protest of a delegated purchase under Government Code, Chapter 2155;(3) department employee complaint governed by the department's Human Resources Manual;(4) routine inquiry, report of a condition on a state highway, or request for information; or(5) report of a matter or an investigation request submitted to the department's internal compliance office established under Transportation Code, Chapter 201, Subchapter F-1.</content><note type="source"><p>Source Note: The provisions of this §3.21 adopted to be effective December 16, 1996, 21 TexReg 11823; amended to be effective February 16, 2012, 37 TexReg 715.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c3/scC/s3.22"><num value="3.22">§3.22</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Complainant--A person who files a complaint.(2) Complaint--An oral or written statement, including an electronic complaint submitted under §3.23(c) of this subchapter (relating to Filing a Complaint), concerning a matter which the department has the authority to resolve, and that:(A) expresses dissatisfaction about:(i) a department policy, program, procedure, action, or operation; or(ii) an action or operation of a department contractor; and(B) requests or implies that the department respond or take some action.(3) Department--The Texas Department of Transportation.(4) Person--An individual, firm, corporation, company, partnership, or other legal entity.</content><note type="source"><p>Source Note: The provisions of this §3.22 adopted to be effective December 16, 1996, 21 TexReg 11823; amended to be effective February 16, 2012, 37 TexReg 715.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c3/scC/s3.23"><num value="3.23">§3.23</num><heading>Filing a Complaint</heading><content>(a) Written complaint. A person may file a written complaint addressed to the department, attention: Public Information Officer, at:(1) its main business office, 125 East 11th Street, Austin, Texas 78701-2483; or(2) any other business office of the department.(b) Oral complaint. A person may file an oral complaint:(1) at any department business office in person or by telephone; or(2) by calling:(A) 1-800-558-9368 (55-TxDOT); or(B) 1-888-885-8248 (Report-a-Pothole).(c) Electronic complaint. A person may file an electronic complaint by completing and submitting the standard "Contact Us" form on the department's Internet site at www.txdot.gov or by submitting an email to AskTxDOT@txdot.gov.(d) Content. A complaint should contain the following information:(1) the name of the complainant;(2) the mailing address, telephone number, or email address of the complainant;(3) a concise statement of the nature of the complaint, including the underlying facts; and(4) the specific action or measure, if any, requested of the department.</content><note type="source"><p>Source Note: The provisions of this §3.23 adopted to be effective December 16, 1996, 21 TexReg 11823; amended to be effective February 16, 2012, 37 TexReg 715.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c3/scC/s3.24"><num value="3.24">§3.24</num><heading>Notice to Customers</heading><content>The department will provide contact information as may be appropriate to geographical locations and subject matter for purposes of directing complaints to the department. In addition to any other method used by the department to provide the information, the department will publish notice of how to direct complaints:(1) in selected public information literature;(2) on the department's Internet site; and(3) at each business office of the department.</content><note type="source"><p>Source Note: The provisions of this §3.24 adopted to be effective December 16, 1996, 21 TexReg 11823; amended to be effective November 22, 1998, 23 TexReg 11657; amended to be effective May 20, 2010, 35 TexReg 3851; amended to be effective February 16, 2012, 37 TexReg 715.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c3/scC/s3.25"><num value="3.25">§3.25</num><heading>Complaint Resolution</heading><content>(a) Review. The department will promptly review a complaint filed under §3.23 of this subchapter (relating to Filing a Complaint) and will make every reasonable effort to resolve the matter consistent with applicable law.(b) Resolution. After reviewing the complaint the department will determine:(1) the action that the department plans to take, or that action has been taken, to address the matter that is the subject of the complaint; or(2) that the department will take no action on the matter.(c) Department response.(1) The department will provide to a person who files a complaint under §3.23 of this subchapter an oral, written, or electronic response that sets out the department's determination under subsection (b) of this section. If the department determines that it will take no action, the response will provide the reasons that determination was made.(2) If the department does not provide a response under paragraph (1) of this subsection within 90 days after the date the complaint was received by the department, the department periodically will notify the complainant of the status of the complaint until it is resolved. A complaint is considered to be resolved when the department informs the complainant of the department's determination under subsection (b) of this section.</content><note type="source"><p>Source Note: The provisions of this §3.25 adopted to be effective February 16, 2012, 37 TexReg 715.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c3/scC/s3.26"><num value="3.26">§3.26</num><heading>Complaint Data Collection, Analysis, and Reporting</heading><content>(a) Data collection. The department will maintain a computer database for complaints. The database will contain for each complaint filed under §3.23 of this subchapter (relating to Filing a Complaint) customer information that is appropriate for the compilation and analysis of detailed complaint data. The information will include:(1) the date the complaint is filed;(2) the name of the person filing the complaint;(3) the subject matter of the complaint;(4) a record of each person contacted in relation to the complaint;(5) a summary of the results of the review or investigation of the complaint;(6) if the department takes no action on the complaint, an explanation of the reasons that no action was taken;(7) the length of time required to provide a response to the customer from the date that the complaint was received by the department; and(8) if applicable, the county and district where the person, thing, or condition that is the subject of the complaint is located.(b) Data analysis.(1) The department will provide detailed statistics and analyze trends on a district and division basis.(2) The department will identify trends related to similar complaints, including the number of persons who filed each type of complaint.(c) Data reporting. The department will report complaint information:(1) monthly to division and office directors, district engineers, and individuals filling senior leadership positions; and(2) quarterly to the Texas Transportation Commission.</content><note type="source"><p>Source Note: The provisions of this §3.26 adopted to be effective February 16, 2012, 37 TexReg 715; amended to be effective February 20, 2014, 39 TexReg 998.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p1/c4"><num value="4">CHAPTER 4</num><heading>EMPLOYMENT PRACTICES</heading><subchapter identifier="/us/state/tx/tac/t43/p1/c4/scB"><num value="B">SUBCHAPTER B</num><heading>JOB APPLICATION PROCEDURES</heading><section identifier="/us/state/tx/tac/t43/p1/c4/scB/s4.10"><num value="4.10">§4.10</num><heading>Purpose</heading><content>It is the policy and practice of the Texas Transportation Commission and the Texas Department of Transportation to ensure and promote internal and external equal employment opportunity and to use affirmative action to achieve these ends. In keeping with this policy and with the requirements of Transportation Code, §§201.401-201.404 and Government Code, Chapters 656, 657, and 672, this subchapter prescribes the procedures for notifying potential applicants of vacant positions within the department, making applications for employment, and obtaining employment preferences related to military service and for former foster children.</content><note type="source"><p>Source Note: The provisions of this §4.10 adopted to be effective August 1, 2022, 47 TexReg 7558; amended to be effective March 13, 2024, 49 TexReg 1505.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scB/s4.11"><num value="4.11">§4.11</num><heading>Definition</heading><content>In this subchapter, "department" means the Texas Department of Transportation.</content><note type="source"><p>Source Note: The provisions of this §4.11 adopted to be effective August 1, 2022, 47 TexReg 7558.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scB/s4.12"><num value="4.12">§4.12</num><heading>Job Postings</heading><content>(a) The department will post all vacant positions in salary groups B17 and above for which the public will be considered on the department's website and send the information in those postings to the Texas Workforce Commission.(b) The posting will include:(1) job identification number;(2) department and state code and title;(3) salary group and salary;(4) work location;(5) travel requirements;(6) a link to the website of the State Auditor's Office containing the military occupational specialty codes identified and reported under Government Code, §654.0375;(7) general description and job duties;(8) education, work experience, competencies, and licenses and certifications required of the job;(9) the position's full-time or part-time and regular or temporary designations;(10) conditions of employment or remarks, including application procedures and special requirements;(11) job posting open date; and(12) job posting closing date and time or indication that the position is open until filled.(c) The department will notify the Texas Workforce Commission when a vacant position described by subsection (a) of this section has been filled.</content><note type="source"><p>Source Note: The provisions of this §4.12 adopted to be effective August 1, 2022, 47 TexReg 7558.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scB/s4.13"><num value="4.13">§4.13</num><heading>Application</heading><content>(a) To be considered for a position posted under §4.12 of this subchapter (relating to Job Postings), an applicant must submit a completed online state of Texas application through the Texas Workforce Commission's WorkinTexas website or an application or resume through the department's online application system that includes the applicant's work experience, education, and all necessary information or documentation regarding the applicant's qualifications and competencies that pertain to the requirements of the job.(b) An application will not be accepted if the applicant will not be 16 years of age or older on date of hire.(c) Applications must be received before the date and time included in the job posting under §4.12(b)(12) of this subchapter.</content><note type="source"><p>Source Note: The provisions of this §4.13 adopted to be effective August 1, 2022, 47 TexReg 7558.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scB/s4.14"><num value="4.14">§4.14</num><heading>Screening</heading><content>The department's qualification screening process considers an applicant's education, work experience, and licenses and certifications to ensure that the applicant meets the minimum job requirements.</content><note type="source"><p>Source Note: The provisions of this §4.14 adopted to be effective August 1, 2022, 47 TexReg 7558.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scB/s4.15"><num value="4.15">§4.15</num><heading>Preferences</heading><content>The department will give an applicant employment preference over other applicants who do not have greater qualifications for the same position, if the applicant:(1) qualifies for employment preference under Government Code, Chapter 657, Military Employment Preferences; or(2) is entitled to an employment preference under Government Code, Chapter 672, Employment Preference For Former Foster Children.</content><note type="source"><p>Source Note: The provisions of this §4.15 adopted to be effective August 1, 2022, 47 TexReg 7558; amended to be effective March 13, 2024, 49 TexReg 1505.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scB/s4.16"><num value="4.16">§4.16</num><heading>Medical Examination</heading><content>(a) After a conditional job offer is made and accepted, the department will require that an applicant for a physically demanding position pass a medical examination to verify that the applicant is able to perform the essential functions of the job, with or without reasonable accommodation. For purposes of this subsection, "physically demanding position" means a full-time, part-time, temporary, project, or seasonal position that the director of the Human Resources Division has determined requires the performance of one or more essential functions that involve a high level and long duration of physical exertion.(b) The department may designate practicing physicians to make the physical examination of applicants.</content><note type="source"><p>Source Note: The provisions of this §4.16 adopted to be effective August 1, 2022, 47 TexReg 7558.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c4/scC"><num value="C">SUBCHAPTER C</num><heading>EMPLOYMENT AND EDUCATION PROGRAMS</heading><section identifier="/us/state/tx/tac/t43/p1/c4/scC/s4.20"><num value="4.20">§4.20</num><heading>Purpose and Scope</heading><content>It is the policy and practice of the Texas Department of Transportation to integrate academic studies with supervised work experience by providing employment in cooperative education and internship programs. These programs increase a student's job potential, while assisting the student financially and bringing new educational methods to the workplace. The programs enrich secondary institutions' and universities' curricula and help the institutions retain students. It is also the policy of the department to provide financial assistance to eligible minority and female students who intend to work for the department in professions identified by the department as having a significant statistical underrepresentation of minorities or women in the department's workforce. The programs provide the department's managers with a recruiting source for professional, ethnic and workforce diversity for long-range staffing goals by building an understanding of the department's career opportunities. In keeping with these policies and with the requirements of Texas Civil Statutes, Articles 6668a, 6668b, 6669a, and Education Code, Chapter 56, Subchapter I, this subchapter prescribes the policies and procedures by which the department selects students to participate in these programs.</content><note type="source"><p>Source Note: The provisions of this §4.20 adopted to be effective September 16, 1994, 19 TexReg 6919; amended to be effective December 22, 1995, 20 TexReg 10391.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scC/s4.21"><num value="4.21">§4.21</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Academic school year--Two academic semesters (i.e., fall semester and spring semester, or if the educational institution is on a trimester system then fall, winter, or spring quarters).(2) Available grants--The number of grants, based on available funding, the conditional grant coordinator determines may be awarded in an academic year.(3) College cooperative student--A person who is enrolled in an eligible higher educational institution's cooperative education program.(4) Commission--Texas Transportation Commission.(5) Conditional grant--Financial assistance awarded to an eligible student.(6) Cooperative education program--A plan of education that provides for alternating periods of study and employment during the academic year; working agreements among the department, educational institution and student; paid supervised work experiences related to the student's academic studies or career goals; and experience sufficient in duration to qualify for career entry level position, if applicable.(7) Cooperative Education Program Standards Form--A form that states the rules of the High School Cooperative Education Program.(8) Declaration of intent--A signed and notarized document stating that the student intends to work for the department in an eligible profession for two academic years immediately following the date of the student's receipt of an eligible degree.(9) Department--The Texas Department of Transportation.(10) Economically disadvantaged student--A student who is a member of a household with a family annual adjusted gross income of not more than 225% of the Federal Poverty Level.(11) Eligible degree--A baccalaureate degree from an accredited public institution in the State of Texas in a field of study that satisfies the department's minimum education requirement for an eligible profession.(12) Eligible professions--Professions for which the department determines there is a critical need.(13) Form I-9 Employment Verification--A form attesting to eligibility to work in the United States in compliance with the Immigration Reform and Control Act of 1986.(14) HSCEP--High School Cooperative Education Program.(15) Intern--A post-secondary school student who is employed for a specific length of time.(16) Institution--Any public senior (four-year) college or university of higher education as certified by the Coordinating Board, Texas College and University System in accordance with the Education Code, §61.003.(17) Stipend--A monthly amount of financial assistance based on financial need which is determined by the financial aid or scholarship office at the student's educational institution.(18) Student cooperative program performance evaluation--The department's employment evaluation form used to evaluate college cooperative students.(19) Student intern program performance evaluation--The department's employment evaluation form used to evaluate interns.(20) Texas resident--A person qualifying as a Texas resident as defined by Texas Higher Education Coordinating Board rule.</content><note type="source"><p>Source Note: The provisions of this §4.21 adopted to be effective September 16, 1994, 19 TexReg 6919; amended to be effective December 22, 1995, 20 TexReg 10391; amended to be effective December 15, 2003, 28 TexReg 11115.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scC/s4.22"><num value="4.22">§4.22</num><heading>College Cooperative Education Program</heading><content>(a) Purpose. The College Cooperative Education Program is designed to combine collegiate classroom education with full-time practical employment experience through alternating periods of work and study.(b) Institution eligibility. In order to be eligible to participate in the cooperative education program, a higher education institution must:(1) be located in the United States;(2) be an institution with a college or graduate, technical, trade, vocational, or business school curriculum that is accredited by an association of colleges and schools, or licensed by a state agency;(3) have the authority to administer requirements, standards, and credits necessary to award degrees, diplomas, and certificates; and(4) have a cooperative education program.(c) Student eligibility. In order to be eligible to participate in the cooperative education program, a student must:(1) be at least 17 years of age;(2) be a United States citizen, lawful permanent resident alien, or a non-citizen with proof of eligibility to work in the United States;(3) be enrolled in an eligible institution's cooperative education program, other than by correspondence;(4) have attended that institution for at least one semester;(5) have passed at least 28 semester hours toward formal degree requirements in a master or doctorate degree program, a baccalaureate degree program, an associate degree program of no less that one academic year, or an undergraduate certificate or diploma program of not less than one academic year; and(6) have an overall institutional grade point average of at least 2.5 on a four-point scale.(d) Application. To apply for the cooperative education program, the student must:(1) attend an orientation at the institution concerning the cooperative education program; and(2) submit a completed application to the institution on a form prescribed by the department.(e) Interview. If the institution's cooperative office refers a student to the department, the student must interview with the department.(f) Selection criteria. The department's selection is based upon the student's:(1) current enrollment and participation in a field of study related to the assigned work;(2) skill, knowledge, and ability as related to the job description;(3) grade point average;(4) relevant previous work experience; and(5) availability to work for three successive alternating periods of employment between three successive alternating periods of study.(g) Employment eligibility. If selected, the student must:(1) complete a Form I-9 Employment Verification;(2) if the student's work assignment in the cooperative education program will be to a position for which a medical examination is required under §4.16(a) of this chapter (relating to Medical Examination), pass the medical examination; and(3) if the cooperative employment requires driving, pass a driver's record check.(h) Role of eligible institution. The institution will:(1) provide an orientation briefing which will include application instructions;(2) screen and refer the student to the department based on the criteria in the job description;(3) schedule the student's initial interview with the department;(4) forward the student's application, degree plan, and transcript to the department;(5) enter into a written cooperative education agreement with the department;(6) visit the department as requested; and(7) review supervisor reports and evaluations.(i) Role of department. To implement this program, the department will:(1) provide the eligible institution with a job description;(2) interview and select the student;(3) enter into a written cooperative agreement with the institution;(4) determine the work assignment;(5) consider the cooperative student eligible for the same benefits and training as a full-time employee;(6) retain the college cooperative student for three successive alternating periods of employment between three successive alternating periods of study as long as the student's performance is satisfactory; and(7) evaluate the college cooperative student as provided in subsection (l) of this section.(j) Role of the college cooperative student. The college cooperative student must:(1) abide by the program's rules and the department's policies and procedures;(2) adhere to the established work schedule;(3) notify the institution's cooperative education office and the department of any changes in academic status;(4) meet the academic and conduct standards set forth by the institution;(5) maintain at least an overall grade point average of at least 2.5 on a four-point scale during the cooperative education period;(6) meet the conduct standards set forth by the department; and(7) notify his or her department supervisor in writing if the overall job assignment is significantly incompatible with the academic degree.(k) Duration. A college cooperative student is eligible to work as a regular full-time employee during alternating academic semesters or quarters. A college cooperative student must apply separately to participate in the department's summer program as a regular employee.(l) Evaluation. The department will evaluate the performance of the college cooperative student at the end of work semester or quarter by:(1) using the department's student cooperative program performance evaluation;(2) discussing the evaluation with the college cooperative student;(3) submitting the evaluation to the institution for inclusion in the institution records; and(4) conducting a student exit questionnaire to assess the overall education experience.</content><note type="source"><p>Source Note: The provisions of this §4.22 adopted to be effective September 16, 1994, 19 TexReg 6919; amended to be effective August 1, 2022, 47 TexReg 4558.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scC/s4.23"><num value="4.23">§4.23</num><heading>High School Cooperative Education Program</heading><content>(a) Purpose. The High School Cooperative Education Program is designed to combine high school classroom education with part-time practical employment experience in office and industrial arts environments.(b) High school eligibility. In order to be eligible to participate in the HSCEP, a high school must:(1) be located in Texas; and(2) have a cooperative education program.(c) Student eligibility. In order to be eligible to participate in the HSCEP, a high school student must be:(1) at least 16 years of age;(2) attending an eligible high school; and(3) working towards employment as an accounting clerk, business data entry operator, clerk-typist, file clerk (records management), general office clerk, information communications clerk, insurance clerk, receptionist, word processing operator, or industrial equipment operators.(d) Application. To apply for the HSCEP, the high school student must submit a completed application to the high school on a form prescribed by the department.(e) Interview. If the high school's cooperative office refers a student to the department, the student must interview with the department.(f) Selection criteria. The department selection is based upon the student's:(1) current enrollment and participation in a field of study related to the assigned work;(2) skill, knowledge, and ability as related to the job description;(3) relevant previous work experience; and(4) grade point average.(g) Employment eligibility. If selected, the student must:(1) complete a Form I-9 Employment Verification; and(2) if the student's work assignment in the cooperative education program will be to a position for which a medical examination is required under §4.16(a) of this chapter (relating to Medical Examination), pass the medical examination.(h) Role of eligible high school. The high school will:(1) screen and refer the student to the department based upon the criteria in the job description;(2) forward the high school student's application to the department;(3) schedule the high school student's interview with the department;(4) provide the department with the independent school district's approved cooperative training plan;(5) visit each student's workplace station at least once during a grading period; and(6) provide the department with the independent school district's evaluation form.(i) Role of department. To implement this program, the department will:(1) provide the high school with a job description, general information brochures about the department, a copy of the HSCEP procedure and employment applications;(2) interview and select the HSCEP student;(3) enter into a cooperative training plan;(4) determine the work assignment according to the department's functional classification system;(5) consider the HSCEP student eligible for the same benefits as a part-time employee; and(6) evaluate the student as provided for in subsection (l) of this section.(j) Role of HSCEP student. The student must:(1) sign a cooperative education program standards form;(2) abide by the program's rules and the department's policies and procedures;(3) adhere to the established work schedule;(4) notify the high school's cooperative education office and the department of any changes in academic status;(5) meet the academic and conduct standards set forth by the high school; and(6) meet the work performance and conduct standards set forth by the high school and the department.(k) Duration. A HSCEP student is eligible to work as a regular part-time employee (15 to 25 hours a week) during the academic semesters. A cooperative high school student must apply separately to participate in the department's summer program as a regular employee.(l) Evaluation. The department will evaluate the HSCEP student every six weeks by:(1) using the evaluation form prescribed by the student's independent school district; and(2) submitting the evaluation to the high school every six weeks.</content><note type="source"><p>Source Note: The provisions of this §4.23 adopted to be effective September 16, 1994, 19 TexReg 6919; amended to be effective August 1, 2022, 47 TexReg 4558.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scC/s4.24"><num value="4.24">§4.24</num><heading>College Intern Program</heading><content>(a) Purpose. The college intern program is designed to furnish a college student with full-time practical employment.(b) Institution eligibility. In order to be eligible to participate in the intern program, a higher education institution must:(1) be located in the United States;(2) be an institution with a college or graduate, technical, trade, vocational, or business school curriculum that is accredited by an association of colleges and schools, or licensed by a state agency; and(3) have the authority to administer requirements, standards, and credits necessary to award degrees, diplomas, and certificates.(c) Student eligibility. In order to be eligible to participate in the intern program, a student must:(1) be at least 17 years of age;(2) be a United States citizen, lawful permanent resident alien, or a non-citizen with proof of eligibility to work in the United States;(3) be enrolled in an eligible institution's intern program, other than by correspondence;(4) have attended that institution for at least one semester;(5) have passed at least 28 semester hours toward formal degree requirements in a master or doctorate degree program, a baccalaureate degree program, an associate degree program of no less that one academic year, or an undergraduate certificate or diploma program of not less than one academic year;(6) have an overall institutional grade point average of at least 2.5 on a four-point scale if an undergraduate student; and(7) have an overall institutional grade point average of 3.0 on a four-point scale if a graduate student.(d) Application. To apply for the intern program, the student must submit a completed application to the institution on a form prescribed by the department.(e) Interview. If the institution's placement office or student advisor refers a student to the department, the student must interview with the department.(f) Selection criteria. The department selection is based upon the student's:(1) current enrollment and participation in a field of study related to the assigned work;(2) skill, knowledge, and ability as related to the job description;(3) grade point average; and(4) relevant previous work experience.(g) Employment eligibility. If selected, the student must:(1) complete a Form I-9 Employment Verification;(2) if the student's work assignment in the college intern program will be to a position for which a medical examination is required under §4.16(a) of this chapter (relating to Medical Examination), pass the medical examination; and(3) if the internship requires driving, pass a driver's record check.(h) Role of eligible institution. The institution:(1) may provide an orientation briefing to prospective interns which will include application instructions;(2) may screen and refer the student to the department based on the criteria in the job description;(3) may schedule the student's initial interview with the department;(4) will forward the student's application, degree plan, and transcript to the department;(5) may visit the department as requested; and(6) will review supervisor reports and evaluations.(i) Role of department. To implement this program, the department will:(1) provide the institution with a job description;(2) interview and select the student;(3) determine the work assignment;(4) consider the intern eligible for the same benefits and training as a full-time employee; and(5) evaluate the intern as provided in subsection (l) of this section.(j) Role of the intern. The intern must:(1) abide by the program's rules and the department's policies and procedures;(2) adhere to the established work schedule;(3) notify the institution's department chair and the department of any changes in academic status;(4) meet the academic and conduct standards set forth by the institution;(5) maintain an overall grade point average of at least 2.5 on a four-point scale if an undergraduate student;(6) maintain an overall grade point average of at least 3.0 on a four-point scale if a graduate student;(7) meet the conduct standards set forth by the department; and(8) notify his or her department supervisor in writing if the overall job assignment is significantly incompatible with the academic degree.(k) Duration. An intern is eligible to work as a regular full-time employee during three months of the summer or up to five months during the semester. The intern must apply separately to extend employment beyond that period in accordance with the needs of the department.(l) Evaluation. The department will evaluate the performance of the intern at the end of the work tour by:(1) using the department's student performance evaluation;(2) discussing the evaluation with the intern;(3) providing a copy of the evaluation to the institution; and(4) conducting a student exit questionnaire to assess the overall education experience.</content><note type="source"><p>Source Note: The provisions of this §4.24 adopted to be effective September 16, 1994, 19 TexReg 6919; amended to be effective August 1, 2022, 47 TexReg 4558.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scC/s4.25"><num value="4.25">§4.25</num><heading>Conditional Grant Program</heading><content>(a) Purpose. This section establishes procedures for the administration of a conditional grant program that will provide financial assistance to eligible economically disadvantaged students who intend to work for the department in civil engineering or any other profession for which the department determines there is a critical need. Authority for the creation of the conditional grant program is contained in Education Code, Chapter 56, Subchapter I.(b) Program. Upon determination by the executive director or the director's designee, the department may provide financial assistance to eligible students who:(1) declare an intent to seek a baccalaureate degree from an institution in the State of Texas in a field of study that satisfies the department's minimum education requirement for an eligible profession;(2) intend to work for the department for the two academic years immediately following the date of the student's receipt of an eligible degree from an institution in the State of Texas; and(3) exhibit a high level of academic performance.(c) Eligibility.(1) Initial eligibility. To be initially eligible for a conditional grant, a student must:(A) complete and file with the department evidence of household income and, on forms prescribed by the department, a conditional grant application and a declaration of intent to become a member of an eligible profession and work for the department for the two academic years immediately following the date of the student's receipt of an eligible degree;(B) enroll in an institution;(C) be a Texas resident as defined by the Texas Higher Education Coordinating Board;(D) be an economically disadvantaged student; and(E) have complied with any other requirements adopted by the department.(2) Maintaining eligibility. In order to maintain eligibility, a student must be enrolled each semester in an institution in a course of instruction leading toward a degree in an eligible profession and, except as provided in paragraph (4) of this subsection, must:(A) maintain an overall institutional grade point average of at least 2.5 on a four-point scale; and(B) receive credit for not fewer than 12 hours each semester toward the student's degree program.(3) Exception.(A) If, during not more than one semester, a student fails to meet the grade point or credit hour requirements of this subsection, he or she will continue to maintain eligibility.(B) Subparagraph (A) of this paragraph does not apply to a freshman student, unless the director of the department's Human Resources Division or designee determines that the student has a reasonable opportunity to comply with the requirements of Subparagraph (C) of this paragraph. The director will base his or her decision on an overall assessment of the student's freshman academic record.(C) Students who fail to meet the grade point requirement, but are allowed to maintain eligibility under this paragraph, must receive credit for not fewer than 12 hours each semester and attain a semester grade point average of 2.5 during all semesters thereafter until the student graduates.(4) Hardship waiver. The department may waive, upon approval of the executive director, the requirement that a student receive credit for not fewer than 12 hours each semester if a student demonstrates hardship. Hardship may involve serious illness, family emergency, or other extraordinary circumstances beyond the control of the student.(d) Application.(1) To apply for a conditional grant, a student must submit to the department:(A) a completed application in a form prescribed by the department; and(B) a declaration of intent.(2) The application will require information and documentation relating to residency status, secondary school performance or college performance, the current or intended enrollment institution, the sworn statement as required by subsection (k) of this section, and such other information the department deems necessary to determine eligibility pursuant to subsection (c) of this section.(3) An application must be submitted by April 1st of each year for the subsequent fall and spring semesters admission.(e) Selection.(1) Academics. The department will rank applicants according to the following selection criteria:(A) secondary school or college grade point average;(B) SAT or ACT score;(C) honors and awards from, and participation in technical or academic organizations such as Texas Prefreshman Engineering Program, Texas Alliance for Minorities in Engineering, National Honor Society, Debate Team, or Dean's List;(D) vocational education;(E) work experience; and(F) whether the applicant is the first generation of the applicant's family to attend or graduate from an undergraduate program or from a graduate or professional program.(2) Financial need. Applicants that meet a minimum academic threshold using the criteria in paragraph (1) of this subsection will be ranked giving highest priority to students who demonstrate the greatest financial need as measured by the Federal Poverty Guidelines.(f) Grant agreement.(1) The department will send written notice to applicants selected to receive a grant informing them of the amount to be awarded for the conditional grant as certified by their educational institution.(2) Each selected student will be required to execute a grant agreement prior to receiving a conditional grant. The grant agreement will be in a form prescribed by the department and will set forth the terms and conditions of the grant, including, but not limited to, the amount of the grant and the requirements of continued eligibility pursuant to subsection (c) of this section.(g) Conditional grant.(1) The amount of a conditional grant is the sum of:(A) the amount of tuition and fees for the student, as certified by the institution; and(B) a stipend based upon financial need as provided by subsection (h) of this section.(2) Each semester the department will distribute a conditional grant for each eligible student on receipt of an enrollment report and certification of the amount of tuition, fees, and stipend (if any) for the student from the institution.(3) The total amount of any one conditional grant may not exceed the certified amount of tuition and fees for the student and a stipend for each whole calendar month in an amount determined by the department, but may not exceed $4,000 per academic semester based on financial need.(4) If the amount appropriated to the department for conditional grants is less than the estimated amount of all unpaid conditional grants, the department will proportionally reduce each unpaid conditional grant.(h) Stipend.(1) A student desiring to receive a stipend must:(A) sign a financial information release statement; and(B) complete the required financial need forms at the institution.(2) The department will award a stipend to the student upon certification by the institution of the student's certified financial need.(3) Costs of room and board will be included in the stipend amount.(i) Default. The department will declare a student to be in default of the grant agreement and will require the student to repay all conditional grant funds received from the department if the student:(1) withdraws from the institution; or(2) fails to comply with one or more requirements of the grant agreement.(j) Repayment.(1) If a student fails to meet the requirements of the program or chooses to leave the program before the student's completion of at least 30 college credit hours, the department will terminate the agreement and the student will not be required to repay any expended funds. If the student is declared to be in default of the program agreement after the student's completion of at least 30 college credit hours, the student is required to repay all funds received from the department.(2) If a student is required to repay funds pursuant to subsection (i) of this section, the department will establish a repayment schedule of:(A) 120 equal monthly installments for students who received grants for four years or more;(B) 96 equal monthly installments for students who received grants for more than three years, but less than four years;(C) 72 equal monthly installments for students who received grants for more than two years, but less than three years; or(D) 48 equal monthly installments for students who received grants for less than two years.(3) The installment is based on the amount owed the department and must be paid each month. Repayments may be made in fewer than the required number of installments.(4) A student will not be required to begin payments until after the student's expected date of graduation as determined on the date of the determination of default.(5) A student who completes an eligible degree and does not work for the department for two academic years immediately following the date of the student's receipt of an eligible degree from a Texas institution will be required to:(A) begin payments three months subsequent to the determination of default; and(B) pay a minimum monthly installment of $200.(6) The department will waive repayment of any remaining amounts for a student who defaults and graduates with an eligible degree and honors the original agreement to work for the department in an eligible profession for at least two academic years commencing immediately upon graduation.(7) The department may temporarily reduce or defer the required payments or extend the prescribed repayment period, upon approval of the executive director, if a student submits a formal request, demonstrates his or her inability to pay due to catastrophic illness or family emergency, and follows all conditional grant requirements during the deferment period. Any reduction, deferral, or extension will not relieve a student of his or her responsibility to repay all funds.(8) Credit bureau notification. The department will notify the appropriate credit bureaus or agencies if a student fails to repay the department or fails to adhere to the terms of the conditional grant agreement.(k) Child support statement.(1) In accordance with the Family Code, §231.006, a child support obligor who is 30 or more days delinquent in paying child support is not eligible to receive funds under this subchapter.(2) A student shall provide along with the application submitted as required by subsection (d) of this section a signed, sworn statement, in a form and manner prescribed by the department, affirming that the student is not 30 or more days delinquent in providing child support under a court order or a written repayment agreement.(3) A student who is ineligible under this section shall remain ineligible to receive funds under this subchapter until:(A) all arrearages have been paid; or(B) the student is in compliance with a written repayment agreement or court order as to any existing delinquency.(4) A student who is found to have submitted a falsely sworn statement under this section shall, upon demand, remit to the department all funds received while ineligible under paragraph (1) of this subsection.</content><note type="source"><p>Source Note: The provisions of this §4.25 adopted to be effective December 22, 1995, 20 TexReg 10391; amended to be effective October 24, 1999, 24 TexReg 9054; amended to be effective November 14, 2001, 26 TexReg 9226; amended to be effective December 11, 2002, 27 TexReg 11623; amended to be effective December 15, 2003, 28 TexReg 11115; amended to be effective August 1, 2022, 47 TexReg 4558.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c4/scD"><num value="D">SUBCHAPTER D</num><heading>SUBSTANCE ABUSE PROGRAM</heading><section identifier="/us/state/tx/tac/t43/p1/c4/scD/s4.30"><num value="4.30">§4.30</num><heading>Purpose</heading><content>This subchapter contains the Texas Transportation Commission's substance abuse program. The goal is to achieve an alcohol- and drug-free workplace, which will help protect the health and safety of the public and of the department's most valuable resource, its employees. The department is committed to rehabilitating and restoring employees whose performance may be impaired by alcohol or drug abuse.</content><note type="source"><p>Source Note: The provisions of this §4.30 adopted to be effective November 21, 2002, 27 TexReg 10754.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scD/s4.31"><num value="4.31">§4.31</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Alcohol--The intoxicating agent in beverage alcohol, ethyl alcohol, or other low molecular weight alcohols including methyl and isopropyl alcohol.(2) Alcohol test result--The alcohol in a volume of breath expressed in terms of grams of alcohol per 210 liters of breath as indicated by a breath test.(3) Alcohol- or drug-related driving offense--A conviction or deferred adjudication for any offense involving the driving of a vehicle, whether on-duty or off-duty, while under the influence of alcohol or drugs or while intoxicated.(4) Commercial driver--An employee who operates a commercial motor vehicle for the department, regardless of the frequency.(5) Commercial motor vehicle--A motor vehicle or combination of vehicles used to transport passengers or property if it:(A) has a gross combination weight rating of 26,001 or more pounds inclusive of a towed unit with a gross vehicle weight rating of more than 10,000 pounds;(B) has a gross vehicle weight rating of 26,001 or more pounds;(C) is designed to transport 16 or more passengers, including the commercial driver; or(D) is of any size and is used in the transportation of materials that are considered hazardous under the Hazardous Materials Transportation Act, 49 U.S.C. §5103(b), and that require the motor vehicle to be placarded under the Hazardous Materials Regulations, 49 C.F.R. Part 172, Subpart F.(6) Completion of treatment--Compliance with all EAP treatment recommendations and requirements, passing all required drug and alcohol tests, and finishing all treatment as prescribed by the EAP counselor or by the treatment program's staff physician.(7) Critical duties--Driving, commercial driving, performing safety-impact activities, performing vessel crewmember duties, operating motorized equipment, supervising or assisting with the loading or unloading of a motor vehicle, and inspecting, servicing, or maintaining any vehicle.(8) Department--The Texas Department of Transportation.(9) Directly involved--The employee's order, action, or failure to act is determined to be or cannot be ruled out as a causative factor in the events leading to or causing a serious accident or a serious marine incident.(10) Driving for the department--Operating a vehicle, including an automobile, truck, motor-driven equipment, roller, tractor, grader, ferry, or aircraft, during the course and scope of employment, without regard to ownership of the vehicle or the frequency of operation. An employee holds a position that involves driving for the department if the position may require driving for the department.(11) Drug--A narcotic drug, controlled substance, or marijuana, as defined in the Comprehensive Drug Abuse Prevention and Control Act of 1970, 21 U.S.C. §802, not including a substance legally available by prescription or over the counter.(12) Employee--A person employed by the department in a full-time, part-time, temporary, project, or seasonal position, including temporary recruitment employees, but not including other temporary employees under contract to the department.(13) Employee Assistance Program (EAP)--A program designed to assist employees and their immediate family members in dealing with emotional and personal problems, including alcohol and drug abuse, that potentially affect an employee's work performance and safety.(14) EAP counselors--Licensed medical doctors; licensed doctors of osteopathy; psychologists licensed or certified by the Texas State Board of Examiners of Psychologists or another regulating board; social workers licensed or certified by the Texas State Board of Social Worker Examiners or another regulating board; employee assistance professionals licensed or certified by the Employee Assistance Professionals Association, Inc., or another regulating board; and addiction counselors certified by the National Association of Alcoholism and Drug Abuse Counselors Certification Commission, by the International Certification and Reciprocity Consortium/Alcohol and Other Drug Abuse, or by another regulating board, with knowledge of and clinical experience in the diagnosis and treatment of alcohol- and drug-related disorders, including Substance Abuse Professionals as defined in 49 C.F.R. Part 40.(15) Final applicant--A person who is given a conditional offer of initial employment.(16) Human Resources Division--An organizational unit in the department that oversees human resource functions for the department.(17) Inhalant--A breathable chemical that produces mind-altering vapors, including volatile solvents, aerosols, nitrites, and anesthetics.(18) Mandatory referral--A referral to the EAP that requires an employee to report to the EAP and complete treatment or be terminated from employment with the department.(19) Medical review officer--A licensed physician who is responsible for reviewing laboratory results generated by an employer's drug testing program and evaluating medical explanations for certain drug test results.(20) Possession of alcohol or drugs--The presence of alcohol or drugs in an area under an employee's effective control.(21) Safety-impact employee--An employee who holds a safety-impact position.(22) Safety-impact position--A full-time, part-time, temporary, project, or seasonal position, as determined by the director of the Human Resources Division, that requires the performance of one or more activities that:(A) could present a threat to the health or safety of employees or the public if performed with inattentiveness, errors in judgment, diminished coordination, reduced dexterity, or lack of composure; and(B) are performed with such independence that it cannot reasonably be assumed that mistakes could be prevented by a supervisor or another employee.(23) Serious accident--Any accident that occurs in the workplace, and results in:(A) injury to an employee who is directly involved in the accident and who requires professional medical treatment beyond first aid;(B) death or injury to another person who requires professional medical treatment beyond first aid;(C) damage to a vehicle that causes it to be inoperable; or(D) receipt of a citation by the employee under state or local law for a moving traffic violation in connection with the accident.(24) Serious marine incident--Any reportable marine incident resulting in:(A) injury to an employee who is directly involved in the incident, who requires professional medical treatment beyond first aid, and who does not return to work or who returns to work to perform restricted duties;(B) death or injury to another person who requires professional medical treatment beyond first aid;(C) damage to property in excess of $100,000;(D) actual or constructive total loss of any ferry subject to Coast Guard inspection under 46 U.S.C. §3301 or to any self-propelled vessel of 100 gross tons or more if not subject to Coast Guard inspection;(E) a discharge of 10,000 or more gallons of oil into navigable waters of the United States; or(F) a discharge of a reportable quantity of a hazardous substance into the environment or into the navigable waters of the United States.(25) Substance control officer--An employee who administers the substance abuse program.(26) Treatment--Medical or psychological therapy or education for alcohol or drug dependency, whether conducted on an inpatient basis, on an intensive outpatient basis, or as educational or counseling sessions. Treatment includes any aftercare following inpatient treatment or intensive outpatient treatment, including weekly counseling sessions as designated by the EAP counselors.(27) Supervisor--Any employee who has formal supervisory or managerial responsibilities, who is designated to coordinate the work activities of other employees, or who is designated to direct a team of employees.(28) Use of alcohol or a drug--The ingestion by any means of any substance containing alcohol, including medication; the use in any way of a drug; or being under the influence of alcohol, an inhalant, or a drug. Drug use and drug abuse include the use of an inhalant in a manner other than that for which it was intended and that causes or is known to cause intoxication.(29) Vessel Crewmember--An individual who:(A) is working on board a vessel, whether or not as a member of the vessel's crew;(B) occupies or performs the functions of a position required by the vessel's Certificate of Inspection;(C) performs the duties of a patrolman or watchman; or(D) is assigned during an emergency to warn passengers or control the movement of passengers on a vessel.(30) Workplace--Any location where an employee works, whether or not on state-owned property. An employee is in the workplace when operating or riding in a state vehicle.</content><note type="source"><p>Source Note: The provisions of this §4.31 adopted to be effective November 21, 2002, 27 TexReg 10754; amended to be effective January 1, 2009, 33 TexReg 10053; amended to be effective March 18, 2015, 40 TexReg 1523.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scD/s4.32"><num value="4.32">§4.32</num><heading>Department Actions Relating to Substance Abuse</heading><content>(a) Administrative and disciplinary actions. An employee who violates the policies and prohibitions of this subchapter will be subject to discipline, up to and including termination from the department.(b) Mandatory referral. In addition to or instead of disciplinary action, an employee may be mandatorily referred to the EAP and required to complete treatment.(c) Voluntary referral. The department provides the EAP and encourages employees to use its services voluntarily to deal with alcohol or drug abuse before job performance is affected. Completion of treatment may mitigate the need for discipline.(d) Acknowledgement of policy. As a condition of employment, each employee must comply with this subchapter and must sign a form acknowledging these standards of conduct.</content><note type="source"><p>Source Note: The provisions of this §4.32 adopted to be effective November 21, 2002, 27 TexReg 10754.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scD/s4.33"><num value="4.33">§4.33</num><heading>Prohibited Conduct</heading><content>(a) Employee obligation. Department employees have an obligation to uphold the public's trust in the department by projecting a positive image to other employees and the public at all times.(b) Alcohol and drug use. An employee is prohibited from using alcohol or drugs, possessing an open container of an alcoholic beverage, or possessing a drug in the workplace.(c) Alcohol use after accident. An employee is prohibited from using alcohol within eight hours after an accident or before undergoing a post-accident alcohol test, whichever comes first.(d) Sale of drugs. An employee is prohibited from the illegal sale, distribution, dispensing, transportation, or manufacture of drugs, whether in the workplace or outside the workplace. This prohibition includes any violation of state and federal controlled substances acts.(e) Lawful medication. An employee is prohibited from reporting to work, working, or operating a state vehicle while under the influence of lawfully prescribed or over-the-counter substances if the employee's performance is impaired. An employee may appropriately use prescribed or over-the-counter medications if work performance is not impaired.(f) Responsibilities of supervisors. A supervisor may not allow an employee to continue to work if the supervisor has actual knowledge that the employee in the workplace is using alcohol or drugs in the workplace, possesses an open container of an alcoholic beverage in the workplace, or possesses a drug in the workplace.</content><note type="source"><p>Source Note: The provisions of this §4.33 adopted to be effective November 21, 2002, 27 TexReg 10754; amended to be effective March 18, 2015, 40 TexReg 1523; amended to be effective April 18, 2017, 42 TexReg 2008.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scD/s4.34"><num value="4.34">§4.34</num><heading>Illegal Drugs</heading><content>(a) Distribution. An employee will be terminated from the department if convicted of a criminal drug violation relating to the sale, distribution, dispensing, transportation, or manufacture of drugs, whether in the workplace or outside the workplace. A final applicant will not be hired if the final applicant is on probation or parole for a felony conviction related to the sale, distribution, dispensing, transportation, or manufacture of drugs or the possession with the intent to sell, distribute, dispense, transport, or manufacture drugs. An employee will be terminated from the department if it is determined that at the time of hire, the employee was on probation or parole for a felony conviction related to the sale, distribution, dispensing, transportation, or manufacture of drugs or the possession with the intent to sell, distribute, dispense, transport, or manufacture drugs.(b) Suspicious substance. The following procedure will be followed if a substance appearing to be a drug is found in the possession of an employee in the workplace. It will also be followed if an employee is reasonably suspected of selling, distributing, dispensing, transporting, or manufacturing drugs, or conspiring to sell, distribute, dispense, transport, or manufacture drugs, whether in the workplace or outside the workplace. Reasonable suspicion may be based on any circumstance, including direct observation in the workplace or an arrest, charge, or indictment for an offense related to selling, distributing, dispensing, transporting, or manufacturing drugs.(1) The employee's supervisor will immediately place the employee on administrative leave pending investigation by the department.(2) The employee will immediately be provided with a letter that:(A) summarizes the facts on which reasonable suspicion is based;(B) notifies the employee that involvement in selling, distributing, dispensing, transporting, or manufacturing drugs subjects the employee to termination from the department;(C) advises that the employee will have a specified time in which to provide a reasonable explanation to the employee's supervisor or substance control officer; and(D) advises that the employee may be terminated from the department if the employee refuses to offer a reasonable explanation, if the response indicates that the employee sold, distributed, dispensed, transported, or manufactured drugs, or conspired to sell, distribute, dispense, transport, or manufacture drugs, or if the response is insufficient or unacceptable.(3) An employee who is suspected of involvement in selling, distributing, dispensing, transporting, or manufacturing drugs will be terminated from the department if:(A) the employee fails to respond within the specified time or to provide a sufficient and acceptable explanation;(B) the substance control officer confirms the illegal acts; or(C) investigation by law enforcement or other governmental authorities confirms the illegal acts.(4) An employee who used or possessed drugs in the workplace, but did not sell, distribute, dispense, transport, or manufacture drugs, or conspire to sell, distribute, dispense, transport, or manufacture drugs, will be mandatorily referred to the EAP and required to complete treatment if:(A) the employee fails to respond within the specified time or to provide a sufficient and acceptable explanation;(B) the substance control officer confirms the illegal acts; or(C) investigation by law enforcement or other governmental authorities confirms the illegal acts.(5) An employee will be made aware of the EAP if it is determined that the employee used drugs outside the workplace and did not use drugs in the workplace or sell, distribute, dispense, transport, or manufacture drugs.(6) If an employee is reasonably suspected of selling, distributing, dispensing, transporting, or manufacturing drugs, or conspiring to sell, distribute, dispense, transport, or manufacture drugs, the substance control officer shall contact the Compliance Division or the substance abuse program staff of the Human Resources Division immediately, before turning the matter over to law enforcement authorities.(c) Notifications.(1) An employee shall notify the employee's supervisor in writing if the employee is arrested, charged, or indicted for an offense related to selling, distributing, dispensing, transporting, or manufacturing drugs, whether in the workplace or outside the workplace. If the employee fails to make this notification within one day after returning to work following the occurrence, the employee will be suspended three days without pay.(2) An employee shall notify the employee's supervisor in writing if the employee is convicted of an offense related to selling, distributing, dispensing, transporting, or manufacturing drugs, whether in the workplace or outside the workplace. If the employee fails to make this notification within one day after returning to work following the occurrence, the employee will be terminated from the department whenever it is discovered.(3) An employee shall notify the employee's supervisor in writing if the employee is convicted of any violation of any criminal drug statute based on the employee's conduct in the workplace for which notification is not required under paragraph (2) of this subsection. This notification must occur within one work day after the employee returns to work following the conviction if the violation is related to conduct that occurred in the workplace. If the employee fails to make this notification on time, the department will suspend the employee within 30 days after it discovers the conviction. The suspension will be for three days without pay. Under the Drug Free Workplace Act 1988, 41 U.S.C. §§701 - 707, the department will notify the appropriate federal agency of the conviction within 10 days after receipt of the notice.</content><note type="source"><p>Source Note: The provisions of this §4.34 adopted to be effective November 21, 2002, 27 TexReg 10754; amended to be effective January 1, 2009, 33 TexReg 10053; amended to be effective April 18, 2017, 42 TexReg 2008.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scD/s4.35"><num value="4.35">§4.35</num><heading>Administrative Actions</heading><content>(a) Removal from critical duties. A supervisor or substance control officer will immediately remove an employee from critical duties if the employee is suspected of violating this subchapter.(b) Sufficient documentation. An employee will be tested for cause if a supervisor has a reasonable suspicion that the employee was working under the influence of alcohol or drugs. This determination must be based on observed and documented physical, behavioral, or performance indications.(c) Insufficient documentation. An employee will be given an opportunity to offer an explanation if a supervisor has a reasonable suspicion that the employee was working under the influence of alcohol or drugs, but does not have sufficient observed and documented indications to justify testing for cause.(d) Sufficient response. If an employee provides a sufficient and acceptable response under subsection (c) of this section, the employee will remain subject to administrative and disciplinary actions if it is later discovered that the employee has worked under the influence of alcohol or drugs. The supervisor or substance control officer will so advise the employee.(e) Procedural response.(1) The department will follow the procedures established in paragraph (2) of this subsection under either of the following circumstances.(A) A supervisor has a reasonable suspicion under subsection (b) of this section that an employee was working under the influence of alcohol or drugs.(B) An employee refuses to offer an explanation under subsection (c) of this section, the response indicates that the employee violated this subchapter, or the response is insufficient or unacceptable.(2) Under any of the circumstances listed in paragraph (1) of this subsection, the department will follow the following procedures.(A) The supervisor or the substance control officer will mandatorily refer the employee to the EAP and require the employee to complete treatment.(B) The department may take disciplinary action.(C) For 24 hours the employee will be prohibited from working and will be required to take sick leave, vacation leave, compensatory time, or leave without pay. The employee will only be required to take leave without pay if the employee has exhausted all accrued leave.(f) Lawful medications. When an employee is unable to work in a safe and effective manner because of the use of lawfully prescribed or over-the-counter substances, the employee will be reassigned to temporary modified duties or will be required to take sick leave, vacation leave, compensatory time, or leave without pay. The employee will only be required to take leave without pay if the employee has exhausted all accrued leave.(g) Final applicants. The department will not hire a final applicant if the applicant has engaged in conduct that would justify terminating an employee from the department.</content><note type="source"><p>Source Note: The provisions of this §4.35 adopted to be effective November 21, 2002, 27 TexReg 10754.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scD/s4.36"><num value="4.36">§4.36</num><heading>Testing</heading><content>(a) Notification to employees. An employee will be notified in writing that the employee is subject to drug and alcohol testing before being required to submit to an alcohol or drug test.(b) Pre-employment testing.(1) A final applicant must pass a drug test before being hired for a position that involves driving for the department.(2) The department will notify a final applicant of the results of a pre-employment drug test if the applicant requests those results in writing within 60 calendar days after being notified of the disposition of the employment application. The department will also inform the applicant which drugs, if any, were verified as positive.(c) Testing for cause. Any employee who is reasonably suspected of using alcohol or drugs in the workplace will be required to undergo an alcohol or drug test.(1) An employee's direct involvement in a serious accident is considered to be grounds for reasonable suspicion that the employee is using alcohol or drugs in the workplace.(2) The decision to test an employee who was not directly involved in a serious accident must be based on the reasonable belief of a supervisor who has been trained on the signs and symptoms of alcohol and drug use. The decision must be based on specific, contemporaneous, articulable observations concerning appearance, behavior, speech, body odor, performance, or other indications of probable use. These observations may include indications of chronic use and withdrawal symptoms.(3) When a supervisor reasonably suspects an employee who was not directly involved in a serious accident of using alcohol or drugs in the workplace, the supervisor will contact the substance control officer immediately. The supervisor will make an immediate inquiry into all relevant surrounding circumstances and may confer with the employee. The substance control officer will document whether testing is justified based on the supervisor's observations and the substance control officer's independent analysis. Within 24 hours the supervisor or substance control officer will submit that person's observations in writing to the substance abuse program staff in the Human Resources Division.(4) Testing for cause must be approved by the director of the Human Resources Division or designee and by the relevant district engineer, district administrator, division director, office director, or designee not below the level of deputy district engineer, deputy division director, deputy office director, or business services coordinator.(5) Pending a decision to test or if testing is not available, the employee will be removed from critical duties. The employee will be reassigned to temporary modified duties or will be required to take sick leave, vacation leave, compensatory time, or leave without pay. The employee will only be required to take leave without pay if the employee has exhausted all accrued leave. This will continue until:(A) an alcohol test indicates a result of less than 0.02;(B) a negative drug test result is reported; or(C) twenty-four hours elapse after the decision to test.(6) An alcohol test should be administered as soon as possible and preferably within two hours after the decision to test was made. If the test is not administered within two hours, the substance control officer will record why the test was not administered until later. An alcohol test may not be administered after more than eight hours after the decision to test was made.(7) A drug test should be administered as soon as possible. A drug test may not be administered more than 32 hours after the decision to test was made.(d) Required training. Before making a decision to test, a supervisor or substance control officer must have been trained in the indications of drug and alcohol use and on the department's policy and procedures related to testing for cause.</content><note type="source"><p>Source Note: The provisions of this §4.36 adopted to be effective November 21, 2002, 27 TexReg 10754; amended to be effective March 18, 2015, 40 TexReg 1523.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scD/s4.37"><num value="4.37">§4.37</num><heading>Test Results</heading><content>(a) Requirements after violation. An employee shall complete the following requirements if the employee has a positive drug test result or an alcohol test result of 0.04 or greater, or if the employee is a commercial driver, safety-impact employee, or vessel crewmember who violated §4.44(b)(1) - (5) of this subchapter.(1) The supervisor or the substance control officer will mandatorily refer the employee to the EAP and require the employee to complete treatment.(2) The employee will undergo a return-to-duty alcohol or drug test. An alcohol test must indicate a result of less than .02, and a drug test must indicate a verified negative result. An employee will be terminated from the department if the employee fails to pass the return-to-duty drug or alcohol test.(3) The employee will provide a completed return-to-work form before resuming any critical duties. Commercial drivers, vessel crewmembers, and safety-impact employees who are not required to provide a return-to-work form will still be subject to a return-to-duty test.(4) The employee will undergo follow-up testing for alcohol or drugs for up to 60 months. Follow-up testing will include at least 6 tests in the first 12 months after the employee's return to duty. The number and frequency of follow-up tests will be established by the EAP counselors. The EAP counselors may terminate the requirement for further testing at any time after the first six tests have been administered. An employee who fails to pass a follow-up drug or alcohol test has not completed treatment and will be terminated from the department.(b) Termination. An employee who has accrued twelve months or less of employment with the department or who is a project or temporary employee will be terminated from the department if the employee has a positive drug test result or an alcohol test result of 0.04 or greater.(c) Required leave. If an employee has an alcohol test with a result of 0.02 or greater but less than 0.04, the supervisor or the substance control officer will prohibit the employee from working for 24 hours and will require the employee to take sick leave, vacation leave, compensatory time, or leave without pay. The employee will only be required to take leave without pay if the employee has exhausted all accrued leave.</content><note type="source"><p>Source Note: The provisions of this §4.37 adopted to be effective November 21, 2002, 27 TexReg 10754; amended to be effective January 1, 2009, 33 TexReg 10053; amended to be effective March 18, 2015, 40 TexReg 1523; amended to be effective April 18, 2017, 42 TexReg 2008.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scD/s4.38"><num value="4.38">§4.38</num><heading>Test Procedures</heading><content>(a) General procedures. A person to be tested shall report to the test site designated by the department and follow the directions of testing officials. Alcohol and drug testing conducted under this title will comply with the procedures set forth in 49 CFR, Part 40.(b) Costs. Alcohol and drug tests will be conducted at department expense with the exception of a split specimen test. The employee must pay for a split specimen test, which occurs when the employee requests separate testing of the second of two contemporaneous samples.(c) Retest. If a negative drug test has a creatinine and specific gravity value lower than expected for human urine, the employee will be directed to take another test immediately.</content><note type="source"><p>Source Note: The provisions of this §4.38 adopted to be effective November 21, 2002, 27 TexReg 10754.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scD/s4.39"><num value="4.39">§4.39</num><heading>Refusal to Test</heading><content>(a) Termination for refusal. An employee who refuses to test will be terminated from the department.(b) Characterization of refusal. An employee will be considered to have refused to test under any of the following circumstances.(1) The employee explicitly declines to take a required test, whether a first test or a subsequent test.(2) The employee fails to appear for an alcohol or drug test, except a pre-employment test, within a reasonable time, as determined by the department, after being directed to do so.(3) The employee fails to remain at the testing site until the testing process is complete. In the case of a pre-employment test, a final applicant who leaves the testing site before the testing process begins has not refused to test.(4) The employee does not attempt to provide a breath specimen for a required alcohol test or to provide a urine specimen for a required drug test.(5) The employee does not permit the observation or monitoring of the employee's provision of a specimen in the case of directly observed or monitored collection.(6) The employee fails to provide a sufficient breath specimen or a sufficient amount of urine when directed and there is no adequate medical explanation for the failure, as determined through a required medical evaluation.(7) The employee fails to undergo a medical examination or evaluation that was directed by an appropriate official. In the case of a pre-employment test, the final applicant has refused to test on this basis only if the test is conducted after the final applicant has been given a conditional offer of employment.(8) The employee fails to sign the certification at Step 2 of the Alcohol Testing Form.(9) The employee fails to cooperate in any part of the testing process, including refusing to empty pockets when so directed by the collector, behaving in a confrontational way that disrupts the collection process, fails to wash hands after being directed to do so by the collector, or any other uncooperative behavior.(10) The specimen contains levels of a substance that is lower than expected for human urine, a specimen that contains levels of a substance that are inconsistent with human urine, or a specimen has a creatinine and specific gravity value lower than expected for human urine.(11) An employee does not remain available for any mandatory alcohol or drug test.(12) For an observed collection, the employee fails to follow the observer's instructions to raise clothing above the waist, lower clothing and underpants, or to turn around to permit the observer to determine if the employee has any type of prosthetic or other device that could be used to interfere with the collection process.(13) The employee possesses or wears a prosthetic or other device that could be used to interfere with the collection process.(14) The employee admits to the collector or medical review officer that the employee adulterated or substituted the specimen.</content><note type="source"><p>Source Note: The provisions of this §4.39 adopted to be effective November 21, 2002, 27 TexReg 10754; amended to be effective January 1, 2009, 33 TexReg 10053; amended to be effective March 18, 2015, 40 TexReg 1523; amended to be effective April 18, 2017, 42 TexReg 2008.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scD/s4.40"><num value="4.40">§4.40</num><heading>Mandatory Referral and Treatment</heading><content>(a) Effect of referral. Except as otherwise provided in this subchapter, an employee who has a problem associated with alcohol or drug use will be mandatorily referred to the EAP if the problem may affect the employee's conduct or performance in the workplace. Until an employee provides a return-to-work form, the employee will be removed from critical duties.(b) Procedure. The department will pay for the cost of counseling sessions provided by the EAP vendor, including an initial assessment. Employees who are referred by the EAP vendor to an outside treatment provider are responsible for any costs incurred as a result of the referral. An EAP counselor shall evaluate a referred employee to determine the extent of the dependence on alcohol or drugs and refer the employee to appropriate initial treatment, which shall include one or more of the following elements.(1) An employee may participate in an inpatient rehabilitation treatment program and will not be able to work while enrolled in the program.(2) An employee may participate in an intensive outpatient treatment program, which will provide individual counseling, group therapy, and educational services for varying lengths of time, normally up to 10 weeks. An employee participating in an outpatient program will normally be able to continue to work while participating in the program.(3) An employee may participate in a counseling program that includes education or counseling sessions. The EAP counselors will prescribe the content, frequency, and duration of these sessions, as appropriate, and may include group or individual education or counseling sessions.(c) Return to work. The EAP counselor will then refer the employee to a medical doctor or other licensed practitioner to complete a return-to-work form.(d) No assistance needed. The EAP counselor will notify the employee's substance control officer in writing if the employee does not need assistance in resolving a problem associated with alcohol or drug use. A completed return-to-work form will not be required.(e) Failure to complete treatment. An employee will be terminated from the department if the employee is mandatorily referred to the EAP and fails to complete treatment.</content><note type="source"><p>Source Note: The provisions of this §4.40 adopted to be effective November 21, 2002, 27 TexReg 10754.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scD/s4.41"><num value="4.41">§4.41</num><heading>Voluntary Admissions</heading><content>(a) Scope. In this section the term alcohol or drug problem includes alcohol or drug use in the workplace.(b) Employees in general. An employee, other than a commercial driver, safety-impact employee, or vessel crewmember, will be subject to the following provisions if the employee voluntarily admits to an alcohol or drug problem.(1) The employee will be removed from driving duties until the employee provides a completed return-to-work form.(2) The employee will be mandatorily referred to the EAP and required to complete treatment.(c) Commercial drivers, safety-impact employees, and vessel crewmembers. An employee who is a commercial driver, safety-impact employee, or vessel crewmember will be subject to the following provisions if the employee voluntarily admits to an alcohol or drug problem.(1) The employee will be removed from critical duties until the employee provides a completed return-to-work form. The employee will be reassigned to temporary modified duties or will be required to take sick leave, vacation leave, compensatory time, or leave without pay. The employee will only be required to take leave without pay if the employee has exhausted all accrued leave.(2) The employee will be mandatorily referred to the EAP and required to complete treatment.(3) The employee will be subject to all the requirements of §4.37 of this subchapter, except that the employee will not be required to undergo follow-up testing unless the employee admitted using alcohol or drugs while performing a critical duty.(d) Disciplinary action. No disciplinary action will be taken against an employee solely because the employee voluntarily admitted having a drug or alcohol problem if the admission occurred prior to a determination that the employee should be subjected to testing for cause. This subsection supersedes any other provision in this subchapter.</content><note type="source"><p>Source Note: The provisions of this §4.41 adopted to be effective November 21, 2002, 27 TexReg 10754; amended to be effective March 18, 2015, 40 TexReg 1523.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scD/s4.42"><num value="4.42">§4.42</num><heading>Recurrence of Substance Abuse</heading><content>(a) Recurrence as grounds for termination. An employee will be terminated on the need to be mandatorily referred to the EAP a second time. A second referral after a break in service will be treated as if there had been no break in service.(b) Exceptions. It is not considered a mandatory referral within the meaning of this section if:(1) an employee is assessed by the EAP counselors as not needing assistance in resolving problems associated with alcohol or drug use on a first mandatory referral; or(2) an employee is referred for an alcohol- or drug-related driving offense.(c) Effect of pre-1999 referrals. An employee will be terminated from the department if the employee received and completed one or two mandatory referrals before January 1, 1999, and that employee becomes subject to mandatory referral for a third time.</content><note type="source"><p>Source Note: The provisions of this §4.42 adopted to be effective November 21, 2002, 27 TexReg 10754; amended to be effective January 1, 2009, 33 TexReg 10053.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scD/s4.43"><num value="4.43">§4.43</num><heading>Employees Who Drive for the Department</heading><content>(a) Scope. An employee who drives for the department is subject both to the requirements of this section and to the general requirements that apply to all employees.(b) Records. Each employee's driving record will be checked at least once each year. Each employee who drives for the department shall sign a form acknowledging awareness of the department's driving policies.(c) Driver's licenses. An employee must have a valid driver's license to drive for the department. An occupational driver's license will be accepted if it allows the employee to perform driving duties for the department, other than operating a commercial motor vehicle. Employees without a valid driver's license will be removed from all driving duties, and the supervisor will assign non-driving duties, if available.(d) Loss of legal authority to drive.(1) An employee shall notify the employee's supervisor if the employee loses the legal authority to drive as a result of any alcohol- or drug-related driving offense or any other offense involving alcohol or drugs, including administrative license revocation due to multiple tickets for moving traffic violations. If the employee fails to make this report within one day after returning to work following the loss of legal authority to drive, the employee will be suspended three days without pay.(2) An employee will be terminated from the department if the employee drives for the department after losing the legal authority to drive as a result of any alcohol- or drug-related driving offense or any other offense involving alcohol or drugs, including administrative license revocation due to multiple tickets for moving traffic violations.(e) Alcohol- and drug-related driving offenses. If an employee has an alcohol- or drug-related driving offense, the following procedures will be followed.(1) An employee shall report an alcohol- or drug-related driving offense to the employee's supervisor. If the employee fails to make this report within one day after returning to work following the occurrence, the employee will be suspended three days without pay.(2) The employee will be mandatorily referred to the EAP and required to complete treatment.(3) The employee will be given a letter summarizing these actions. The employee shall acknowledge receipt by signing the letter and returning it to the supervisor.(4) The employee will be removed from critical duties until the employee provides a completed return-to-work form. The employee will be reassigned to temporary modified duties or will be required to take sick leave, vacation leave, compensatory time, or leave without pay. The employee will only be required to take leave without pay if the employee has exhausted all accrued leave.(5) An employee will be terminated from the department after a second alcohol- or drug-related driving offense within ten years.(f) Final applicants.(1) The department will not hire a final applicant for a position that may involve driving for the department if the final applicant has two alcohol- or drug-related driving offenses within three years before the date of application.(2) The department will not hire a final applicant for a seasonal position that requires driving for the department if the final applicant has an alcohol- or drug-related driving offense within the three years before the date of application. A seasonal employee will be terminated if hired in violation of this paragraph.(3) The department will not hire a final applicant for a position that involves driving for the department if the final applicant has an alcohol- or drug-related driving offense within three years before the date of application unless the final applicant agrees to:(A) complete treatment; and(B) comply with the procedures described in subsection (e) of this section.</content><note type="source"><p>Source Note: The provisions of this §4.43 adopted to be effective November 21, 2002, 27 TexReg 10754; amended to be effective January 1, 2009, 33 TexReg 10053; amended to be effective March 18, 2015, 40 TexReg 1523.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scD/s4.44"><num value="4.44">§4.44</num><heading>Commercial Drivers, Safety-Impact Employees, and Vessel Crewmembers</heading><content>(a) Scope. Commercial drivers, safety-impact employees, and vessel crewmembers are subject both to the requirements of this section and to the general requirements that apply to all employees.(b) Prohibited activities. Commercial drivers, safety-impact employees, and vessel crewmembers shall not:(1) report to work within four hours of consuming alcohol;(2) report to work or remain at work while under the influence of alcohol or drugs;(3) consume or possess alcohol while on duty or while driving a commercial motor vehicle;(4) use alcohol within eight hours after an accident or before undergoing a post-accident alcohol test, whichever comes first;(5) have a positive drug test result or an alcohol test result of 0.04 or greater; or(6) refuse to test.(c) Testing.(1) The department will not hire or employ a final applicant for a position as a commercial driver, a safety-impact employee, or a vessel crewmember unless that final applicant passes a drug test.(A) A current employee must pass a drug test before being transferred or promoted into a position as a commercial driver, safety-impact employee, or vessel crewmember. If a current employee fails that drug test, the employee will not be transferred or promoted into the position and will be mandatorily referred to the EAP and required to complete treatment.(B) The department will notify a final applicant of the results of a pre-employment drug test if the applicant requests those results in writing within 60 calendar days after being notified of the disposition of the employment application. The department will also inform the applicant which drugs, if any, were verified as positive.(C) Pre-employment inquiries for commercial drivers and vessel crewmembers will be conducted in accordance with 49 C.F.R. Part 40.(2) Commercial drivers are subject to post-accident testing if directly involved in a serious accident. Safety-impact employees are subject to post-accident testing if directly involved in a serious accident that occurs on a day in which the employee has performed or will perform a safety-impact function. Vessel crewmembers are subject to post-accident testing if directly involved in a serious marine incident.(A) Nothing in this section requires or permits delaying medical attention for injured people or prohibits an employee from leaving the scene of an accident for as long as necessary to obtain assistance in responding to the accident or to obtain emergency medical care.(B) Alcohol and drug tests will be administered after a serious accident or a serious marine incident.(i) An alcohol test should be administered as soon as possible after a serious accident or a serious marine incident and preferably within two hours. If the test is not administered within two hours, it may be administered within eight hours. In that case, the substance control officer will record why the test was not promptly administered.(ii) A drug test should be administered as soon as possible after a serious accident and in any event within 32 hours.(iii) A drug test should be administered as soon as possible after a serious marine incident. If a drug test is not administered within 32 hours due to safety concerns, it may be administered as soon as the safety concerns are addressed. If the drug test was not administered within 32 hours, the substance control officer will record why the test was not promptly administered.(C) The department will rely on a breath or blood test for the use of alcohol or a urine test for the use of drugs if it is conducted by federal, state, or local officials having independent authority for the test, if it conforms to applicable federal, state or local requirements, and if the department obtains the results of the tests.(3) Commercial drivers, safety-impact employees, and vessel crewmembers are subject to random alcohol and drug testing.(A) Commercial drivers, safety-impact employees, and vessel crewmembers will be selected for alcohol and drug testing on a random basis so that each employee has a substantially equal chance of selection. A commercial driver, safety-impact employee, or vessel crewmember will be subject to the possibility of random testing as long as the employee is employed by the department in that capacity. The department may randomly test all commercial drivers in one or more sections if each section is equally subject to selection, the department may randomly test all safety-impact employees in one or more sections if each section is equally subject to selection, and the department may randomly test all vessel crewmembers on one vessel as long as each vessel is equally subject to selection.(B) The Human Resources Division will ensure that the commercial drivers and safety-impact employees are tested annually at a rate equal to or higher than the U.S. Department of Transportation annual random testing rate for the Federal Motor Carrier Safety Administration for alcohol and for drugs and vessel crewmembers are tested annually at a rate equal to or higher than the U.S. Department of Transportation annual random testing rate for the U.S. Coast Guard requirements for alcohol and for drugs.(d) Administrative and disciplinary actions.(1) A commercial driver, safety-impact employee, or vessel crewmember who violates subsection (b) of this section will be subject to all potential administrative and disciplinary actions available under this subchapter.(2) The commercial driver, safety-impact employee, or vessel crewmember will be removed from critical duties until the employee provides a completed return-to-work form. The employee will be reassigned to temporary modified duties or will be required to take sick leave, vacation leave, compensatory time, or leave without pay. The employee will only be required to take leave without pay if the employee has exhausted all accrued leave.(3) A final applicant for a position as a commercial driver, safety-impact employee, or vessel crewmember will not be hired if the final applicant has engaged in conduct that would violate subsection (b) of this section and has not received the equivalent of the required treatment. A commercial driver, safety-impact employee, or vessel crewmember will be terminated from the department if it is determined that at the time of hire, the applicant had engaged in conduct that would violate subsection (b) of this section and had not received the equivalent of the required treatment.(e) Education. Each commercial driver, safety-impact employee, vessel crewmember, and supervisor of an employee in any of those categories will receive training on indications of alcohol or drug use and on the effects of alcohol and drug use on personal health, safety, and the work environment.(f) Additional reporting requirements for vessel crewmembers.(1) If a vessel crewmember receives a positive drug test result, the substance control officer shall report it in writing to the nearest Coast Guard Officer in Charge, Marine Inspection.(2) A vessel crewmember who has received a positive drug test result may not perform vessel crewmember duties until found by the medical review officer to be drug free and to pose a sufficiently low risk for further illegal drug use and the requirements of 46 C.F.R. Part 5 have been satisfied. The employee must agree to follow-up testing determined by the medical review officer for an additional period of up to 60 months.</content><note type="source"><p>Source Note: The provisions of this §4.44 adopted to be effective November 21, 2002, 27 TexReg 10754; amended to be effective January 1, 2009, 33 TexReg 10053; amended to be effective March 18, 2015, 40 TexReg 1523.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scD/s4.45"><num value="4.45">§4.45</num><heading>Confidentiality</heading><content>(a) Prohibition on disclosure. Alcohol and drug test information shall be kept confidential except as required by law or in accordance with 49 CFR, Part 40.(b) Records. All information relating to the substance abuse program will be maintained by the substance control officer in a locked file that is separate from that employee's standard personnel file. The information in this separate file will include mandatory referrals to the EAP, documentation of post-accident and reasonable cause determinations, and records of treatment, appeals, and litigation.(c) Disciplinary action. An employee who willfully discloses confidential information relating to the substance abuse program, except in accordance with this subchapter, will be subject to disciplinary action, which may include termination from the department.</content><note type="source"><p>Source Note: The provisions of this §4.45 adopted to be effective November 21, 2002, 27 TexReg 10754.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scD/s4.46"><num value="4.46">§4.46</num><heading>Education</heading><content>The department will conduct an alcohol and drug-free awareness program providing all employees and supervisors with training on the department's policy, actions that will be taken for violations of the policy, the dangers of alcohol and drug abuse in the workplace, and the EAP.</content><note type="source"><p>Source Note: The provisions of this §4.46 adopted to be effective November 21, 2002, 27 TexReg 10754.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c4/scE"><num value="E">SUBCHAPTER E</num><heading>SICK LEAVE POOL PROGRAM</heading><section identifier="/us/state/tx/tac/t43/p1/c4/scE/s4.50"><num value="4.50">§4.50</num><heading>Purpose</heading><content>The purpose of the sick leave pool program is to provide additional sick leave for an employee when the employee or the employee's immediate family member has a catastrophic illness or injury which causes the employee to exhaust all paid leave. Authority for the creation of the sick leave pool program is contained in Government Code, Chapter 661, Subchapter A, State Employee Sick Leave Pool.</content><note type="source"><p>Source Note: The provisions of this §4.50 adopted to be effective October 27, 1995, 20 TexReg 8479; amended to be effective November 15, 2000, 25 TexReg 11294; amended to be effective November 1, 2008, 33 TexReg 8546.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scE/s4.51"><num value="4.51">§4.51</num><heading>Definitions</heading><content>The following words and terms, when used in the sections under this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Catastrophic illness or injury--A severe condition or combination of conditions affecting the mental or physical health of an employee or an employee's immediate family member that requires the services of a health care provider for a prolonged period of time and that forces the employee to exhaust all paid leave earned by that employee.(2) Contribute--To give sick leave from an employee's personal sick leave account to the agency sick leave pool or to a specific employee.(3) Different but related condition--A secondary catastrophic condition that occurs at a later date and is caused by a primary catastrophic condition such as cancer, which spreads from one part of the body to another.(4) Discipline--Written reprimand, probation, suspension without pay, involuntary demotion, involuntary transfer (lateral), or disciplinary reduction in pay.(5) Employee--A person, other than the executive director, who is employed by the department.(6) Health care provider--A medical doctor (MD) or a doctor of osteopathy (DO) who is licensed and authorized to practice in this country or in a country other than the United States in accordance with the law of that country, and who is performing within the scope of his or her practice as defined under applicable law.(7) Human resources officer--An employee with a human resources business job title and who is responsible for verifying the accuracy of all employee paid leave records. If more than one employee has these responsibilities, their activities will be coordinated for the purpose of this subchapter.(8) Immediate family--Individuals related by kinship, adoption, or marriage who are living in the same household, foster children living in the same household and certified by the Texas Department of Family and Protective Services, or a spouse, child, or parent of the employee who does not live in the same household and who needs care and assistance as a direct result of a documented medical condition.(9) Incapacitated--Unable to perform the individual's normal daily activities, including working and activities that are fundamental for self care such as dressing, eating, ambulating, toileting, and hygiene, due to the catastrophic medical condition.(10) Licensed psychiatrist--A psychiatrist licensed by a state medical licensing board.(11) Paid Leave--Accrued sick leave, annual leave, and regular or Fair Labor Standards Act compensatory time earned by an employee.(12) Pool administrator--The Director of the Human Resources Division or designee who administers the department's sick leave pool program.(13) Request--A Sick Leave Pool Contribution/Withdrawal of Contribution form prescribed by the pool administrator and used to contribute sick leave, request leave from the sick leave pool or request an extension of a withdrawal due to a catastrophic illness or injury.(14) Severe physical condition--A physical illness or injury that will likely result in death or causes the patient to be incapacitated for 12 continuous weeks or more for the current episode.(15) Severe psychological condition--A psychological illness that results in:(A) a patient being suicidal or capable of harming themselves or others and requires five days or more inpatient hospitalization; or(B) electroshock treatment.(16) Sick leave--Leave taken when sickness, injury, or pregnancy and confinement prevent the employee's performance of duty or when the employee is needed to care and assist a member of his or her immediate family who is actually ill.(17) Sick leave pool--A department-wide pool that receives voluntary contributions of sick leave from employees and which transfers approved amounts of sick leave to eligible employees.(18) Withdrawal--An approved transfer of sick leave hours from the department sick leave pool.</content><note type="source"><p>Source Note: The provisions of this §4.51 adopted to be effective October 27, 1995, 20 TexReg 8479; amended to be effective March 24, 1997, 22 TexReg 2637; amended to be effective November 22, 1998, 23 TexReg 11657; amended to be effective October 24, 1999, 24 TexReg 9055; amended to be effective November 15, 2000, 25 TexReg 11294; amended to be effective September 16, 2004, 29 TexReg 8834; amended to be effective November 1, 2008, 33 TexReg 8546; amended to be effective January 6, 2016, 41 TexReg 292.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scE/s4.52"><num value="4.52">§4.52</num><heading>Administration of the Pool</heading><content>The pool administrator is responsible for developing procedures for the operation of the pool; developing forms for contributing leave to, or requesting leave from the sick leave pool; and issuing interpretations and clarifications of the sick leave pool program.</content><note type="source"><p>Source Note: The provisions of this §4.52 adopted to be effective October 27, 1995, 20 TexReg 8479.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scE/s4.53"><num value="4.53">§4.53</num><heading>Eligibility</heading><content>(a) All employees may participate in the sick leave pool program.(b) An employee with a catastrophic illness or injury is not required to contribute to the pool before he or she may apply for pool leave.(c) An employee who has previously contributed to the pool and does not suffer a catastrophic illness or injury may apply to use sick leave from the sick leave pool as specified in §4.55 of this title (relating to Contribution Returns).</content><note type="source"><p>Source Note: The provisions of this §4.53 adopted to be effective October 27, 1995, 20 TexReg 8479.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scE/s4.54"><num value="4.54">§4.54</num><heading>Contributions</heading><content>(a) An employee may voluntarily contribute any amount of sick leave hours allowed by Government Code, Chapter 661, Subchapter A, State Employee Sick Leave Pool to:(1) the sick leave pool; or(2) a department employee who has exhausted the employee's sick leave, including any time the employee may be eligible to withdraw from the sick leave pool.(b) The department will encourage all employees, including an employee who is planning to retire, terminate employment, or resign, to contribute sick leave hours.(c) An employee who wishes to contribute sick leave to the pool or to a specific employee shall submit a request to his or her human resources officer.(d) After verifying the accuracy of information on the request, the human resources officer shall sign the request and submit it to the pool administrator.(e) Once the request is approved by the pool administrator, the pool administrator shall transfer hours from the employee's account to the sick leave pool account or to the specified employee.</content><note type="source"><p>Source Note: The provisions of this §4.54 adopted to be effective October 27, 1995, 20 TexReg 8479; amended to be effective March 22, 1996, 21 TexReg 2092; amended to be effective November 22, 1998, 23 TexReg 11657; amended to be effective January 6, 2016, 41 TexReg 292.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scE/s4.55"><num value="4.55">§4.55</num><heading>Contribution Returns</heading><content>(a) Scope of Section. Sick leave contributed to a specific employee will not be returned to the employee who contributed the leave. This section provides the restrictions and procedures for the return of sick leave contributed to the sick leave pool.(b) Restrictions.(1) An employee or employee's immediate family member must suffer an illness or injury, not necessarily catastrophic, to have the employee's sick leave pool contribution returned.(2) Regardless of the number of requests, the number of hours that may be returned to an employee shall not exceed the total number of hours he or she has contributed since the beginning of the program, June 1, 1990.(3) All accrued sick leave must be exhausted by the employee before hours will be returned from a previous contribution.(4) The maximum number of hours that may be returned per request shall not exceed the amount needed. The amount needed is determined from the information provided by the health care provider.(5) If the pool balance cannot accommodate the amount needed, the employee shall be refunded one-third the balance of the pool.(6) An employee who is planning to retire and who has contributed sick leave to the pool may not have his or her contributions refunded in order to receive a retirement credit.(c) Procedures.(1) The employee shall complete a request for the return of sick leave.(2) The human resources officer shall verify all sick leave balances and the date and time all accrued sick leave was or will be exhausted.(3) The pool administrator shall review the request and approve or deny the transfer of hours from the sick leave pool to the employee's personal sick leave account.</content><note type="source"><p>Source Note: The provisions of this §4.55 adopted to be effective October 27, 1995, 20 TexReg 8479; amended to be effective March 24, 1997, 22 TexReg 2637; amended to be effective November 22, 1998, 23 TexReg 11657; amended to be effective November 1, 2008, 33 TexReg 8546; amended to be effective January 6, 2016, 41 TexReg 292.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scE/s4.56"><num value="4.56">§4.56</num><heading>Withdrawals</heading><content>(a) Restrictions.(1) An employee or an employee's immediate family must have a catastrophic illness or injury to be eligible to withdraw from the pool. The patient's health care provider must certify in writing that the illness or injury of the employee or member of the employee's immediate family is catastrophic and that the catastrophic illness is the reason the employee needs to be out of work.(2) A written certification from a health care provider must be submitted with all requests for withdrawals. Requests related to severe psychological conditions must be certified by a licensed psychiatrist. The certification:(A) shall include:(i) the diagnosis and prognosis of the condition or combination of conditions;(ii) the date the employee or employee's immediate family member will be able to return to activities of daily living;(iii) the amount of time the employee will be needed to provide primary care if the certification is for the employee's immediate family member; and(iv) if the certification is for the employee's immediate family member, the specific type of care the employee needs to provide;(B) shall be in a form prescribed by the pool administrator; and(C) is confidential, unless otherwise required by law, and may only be released to the human resources officer.(3) With the request for withdrawal, an employee who has been formally disciplined for abuse of leave in the 12 months preceding the date on which the leave from the pool will be needed must provide, at his or her expense, a second health care provider certification from a different doctor chosen by the department. The pool administrator will deny the request if the second health care provider does not certify that a catastrophic condition exists.(4) The employee must submit an updated health care provider's certification that certifies that the catastrophic illness or injury still exists, and that it is necessary for the employee to be off work to recover or assist in the recovery from the catastrophic illness or injury before an extension may be approved.(5) An employee's use of a transfer from the sick leave pool for family members not residing in that employee's household is strictly limited to the time necessary to provide assistance to a spouse, child, or parent of the employee who needs such care and assistance as a direct result of a documented medical condition.(6) The maximum number of hours that may be granted per catastrophic condition per employee is 720 hours (90 work days) or one third of the pool balance, whichever is less at the time a request is received. If there is a different but related physical catastrophic condition, an employee may receive a second grant of up to 720 hours (90 work days) or one-third of the pool balance, whichever is less at the time the request is received.(7) When the pool balance is below 7200 hours, an employee may not be transferred more than 340 hours (approximately two months) per request, unless unpaid leave is incurred before the request is approved. If unpaid leave is incurred, the employee may not be transferred more than the sum of the unpaid leave and 340 hours. Additionally, the pool administrator will approve or deny all requests in the order in which they are received.(8) The time transferred will begin on the date and time the employee exhausted all paid leave or, in cases that are eligible for workers' compensation payments, after the period covered by the last workers' compensation check distributed.(9) An employee who uses pool sick leave in accordance with this subchapter is not required to pay back that leave.(10) An employee must exhaust all paid leave before using hours approved from the sick leave pool.(11) All withdrawals from the pool must be used solely for the catastrophic illness or injury for which they were granted.(12) An employee who is in need of additional sick leave after exhausting all paid leave shall exhaust all available extended sick leave before using time granted from the sick leave pool.(13) An employee who is injured on the job, who is entitled to receive workers' compensation payments, and who chooses to integrate his or her sick leave, and vacation leave, or compensatory time is also eligible to receive a withdrawal in accordance with this subchapter.(14) Hours from the sick leave pool may be granted in a block of time and used on an as needed basis. The pool administrator may require the unused hours to be returned to the pool after such time has expired unless an immediate need for such leave still exists.(15) The pool administrator may require the patient's condition to be recertified by a health care provider on a monthly basis. If the employee is determined to be able to return to work sooner than indicated on a previous certification, the pool administrator may require the unused portion of a withdrawal to be returned to the pool. If the employee fails to cooperate with recertification requirements and reevaluation procedures, the pool administrator may deny the request or require the unused portion of a withdrawal be returned to the sick leave pool.(16) Unused sick leave from the pool shall be returned to the pool when the need for such leave ceases to exist or the pool administrator requires it in accordance with this subchapter.(17) The estate of a deceased employee is not entitled to payment for unused sick leave from the pool.(b) Procedures.(1) The employee shall complete a request form. The human resources officer shall assist the employee by verifying all paid leave balances and the date and time all paid leave was or will be exhausted.(2) The employee shall submit the request and the health care provider's certification form and a copy of the employee's functional job description to his or her health care provider no earlier than 15 workdays before the need for the withdrawal. The health care provider will complete the certification form and mail it, with the completed request, directly to the employee's human resources officer.(3) The pool administrator will consider requests in the order in which they are received and shall approve or deny the request within five working days of that date.(4) If the pool administrator questions the validity of the certification completed by the employee's health care provider, based on the average expected duration or severity of the condition, the administrator may request a health care provider, contracted by the department, to review the patient's medical records. The contracted health care provider may consult with the patient's health care provider if more information is needed. If the determination of the contracted health care provider differs from the patient's health care provider, the request may be denied. If necessary, the pool administrator may request that the patient's medical records be reviewed by a third health care provider who is not under contract with the department. The pool administrator and the employee must agree on the third health care provider. The determination of the third health care provider is binding. The department will pay for both reviews. If the employee fails to cooperate with the medical records review, the pool administrator may deny the request.(5) The pool administrator may require that the unused portion of the withdrawal be returned to the sick leave pool if the employee:(A) fails to cooperate with a medical records review;(B) submits false information;(C) remains off work because the employee is not following the doctor's prescribed treatment; or(D) is abusing sick leave pool hours.(6) The pool administrator will determine the amount of sick leave transferred for each request based on:(A) the number of hours requested by the employee;(B) the health care provider's certification which indicates the approximate date the patient will be able to return to light and normal duties or the amount of time that the employee is needed to provide primary care for the immediate family member;(C) the date and time all paid leave was or will be exhausted; and(D) the balance of the pool.(7) The pool administrator shall approve or deny the transfer of hours from the sick leave pool to the employee's personal sick leave account.(8) The human resources officer shall inform the pool administrator of the amount of leave the employee used for the illness or injury at the end of each month, and, if the employee has returned to work, the total number of hours used and how many hours are being returned.(9) The pool administrator shall return all unused hours to the pool.</content><note type="source"><p>Source Note: The provisions of this §4.56 adopted to be effective October 27, 1995, 20 TexReg 8479; amended to be effective March 22, 1996, 21 TexReg 2092; amended to be effective March 24, 1997, 22 TexReg 2637; amended to be effective November 22, 1998, 23 TexReg 11657; amended to be effective November 15, 2000, 25 TexReg 11294; amended to be effective September 16, 2004, 29 TexReg 8834; amended to be effective November 1, 2008, 33 TexReg 8546; amended to be effective January 6, 2016, 41 TexReg 292.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c4/scF"><num value="F">SUBCHAPTER F</num><heading>EMPLOYEE TRAINING AND EDUCATION</heading><section identifier="/us/state/tx/tac/t43/p1/c4/scF/s4.61"><num value="4.61">§4.61</num><heading>Tuition Assistance Program</heading><content>The department shall develop programs for the continuing education of employees under the State Employees Training Act, Texas Government Code §§656.041 - 656.104. The eligibility of employees for training and education provided or funded by the department under the programs, and the obligations, including restrictions and potential liability, assumed by employees on receiving training or education, shall be provided in the department's policies.</content><note type="source"><p>Source Note: The provisions of this §4.61 adopted to be effective September 18, 2013, 38 TexReg 6230.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c4/scG"><num value="G">SUBCHAPTER G</num><heading>FAMILY LEAVE POOL PROGRAM</heading><section identifier="/us/state/tx/tac/t43/p1/c4/scG/s4.70"><num value="4.70">§4.70</num><heading>Purpose</heading><content>The purpose of the family leave pool program is to make leave available to an eligible employee who has exhausted all eligible leave for the purposes of bonding with and caring for the employee's children or a person over whom the employee has guardianship or caring for an immediate family member's or the employee's serious illness. Authority for the creation of the family leave pool program is contained in Government Code, Chapter 661, Subchapter A-1, State Employee Family Leave Pool.</content><note type="source"><p>Source Note: The provisions of this §4.70 adopted to be effective August 1, 2022, 47 TexReg 4558.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scG/s4.71"><num value="4.71">§4.71</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Department--The Texas Department of Transportation.(2) Employee--A person, other than the executive director, who is employed by the department.(3) Health care provider--A licensed physician.(4) Immediate family member--A person who lives in the same household as an employee and who is related to the employee by kinship, adoption, or marriage or is a foster child of the employee, a parent of the employee, or any person 18 years of age or older requiring guardianship for whom the employee is appointed the guardian.(5) Pool administrator--The Director of the Human Resources Division or the employee designated by the director to administer the department's family leave pool program.(6) Serious illness--An illness, injury, impairment, or physical or mental condition that requires continuing in-home care under the direction the services of a health care provider.(7) Sick leave--Paid absence from work because of illness, injury, or pregnancy.</content><note type="source"><p>Source Note: The provisions of this §4.71 adopted to be effective August 1, 2022, 47 TexReg 4558.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scG/s4.72"><num value="4.72">§4.72</num><heading>Administration of the Pool</heading><content>The pool administrator is responsible for:(1) developing and implementing policies, operating procedures, and forms for the administration of this subchapter; and(2) issuing interpretations and clarifications relating to the family leave pool program.</content><note type="source"><p>Source Note: The provisions of this §4.72 adopted to be effective August 1, 2022, 47 TexReg 4558.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scG/s4.73"><num value="4.73">§4.73</num><heading>Eligibility</heading><content>(a) An employee may participate in the family leave pool program regardless of whether the employee has previously contributed to the family leave pool.(b) An employee is eligible to use time contributed to the family leave pool if the employee has exhausted all eligible compensatory, discretionary, sick, and vacation leave because of:(1) the birth of a child;(2) the placement of a foster child or adoption of a child under 18 years of age;(3) the placement of any person 18 years of age or older requiring guardianship;(4) a serious illness to an immediate family member or the employee, including a pandemic-related illness;(5) an extenuating circumstance created by an ongoing pandemic, including providing essential care to an immediate family member; or(6) a previous contribution of time to the pool.(c) An employee is not eligible to use time contributed to the family leave pool if the employee has been formally disciplined for abuse of leave during the 12-month period preceding the date on which the employee requests withdrawal from the pool.</content><note type="source"><p>Source Note: The provisions of this §4.73 adopted to be effective August 1, 2022, 47 TexReg 4558.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scG/s4.74"><num value="4.74">§4.74</num><heading>Contributions</heading><content>(a) An employee may contribute one or more days of the employee's accrued sick or vacation leave to the family leave pool. A retiring employee may designate the number of the retiring employee's accrued sick or vacation leave hours to be donated to the family leave pool.(b) After the pool administrator approves an employee's contribution, the pool administrator will deduct from the employee's account the contributed amount and credit that amount to the family leave pool. Deducted amounts will not be returned to the employee's account.</content><note type="source"><p>Source Note: The provisions of this §4.74 adopted to be effective August 1, 2022, 47 TexReg 4558.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scG/s4.75"><num value="4.75">§4.75</num><heading>Requests for Withdrawals</heading><content>(a) An eligible employee may apply for permission to withdraw time from the family leave pool by completing a form designated by the department and submitting to the pool administrator the completed form and:(1) a written statement from the health care provider who is treating the employee or the employee's immediate family member if the permission being sought is due to a serious illness, including a pandemic-related illness; or(2) applicable documentation, including an essential caregiver designation, proof of a school or daycare closure, or other appropriate documentation if the permission being sought is due to extenuating circumstances created by an ongoing pandemic.(b) Subject to subsection (c) of this section, an employee may not withdraw time from the family leave pool in an amount that is more than 720 hours or one-third of the pool balance at the time of the approval of the request, whichever is less.(c) When the pool balance is below 7,200 hours, an employee may not withdraw from the family leave pool more than the sum of 340 hours plus the hours of unpaid leave that, as a result of the cause for which the time is requested, was incurred by the employee before the request is approved.</content><note type="source"><p>Source Note: The provisions of this §4.75 adopted to be effective August 1, 2022, 47 TexReg 4558.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scG/s4.76"><num value="4.76">§4.76</num><heading>Decision on a Request</heading><content>(a) The pool administrator will consider requests in the order in which they are received and will determine an employee's eligibility and approve or deny the request within five business days after the date on which a completed request form is received.(b) If the pool administrator approves the request, the pool administrator will determine the amount of time that an employee may withdraw from the family leave pool based on:(1) the number of hours requested by the employee;(2) the documentation submitted in support of the requested leave;(3) the date and time the employee exhausted or will exhaust all eligible compensatory, discretionary, sick, and vacation leave; and(4) the limitations on the amount of withdrawals from the family leave pool provided by §4.75 of this subchapter (relating to Requests for Withdrawals).</content><note type="source"><p>Source Note: The provisions of this §4.76 adopted to be effective August 1, 2022, 47 TexReg 4558.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scG/s4.77"><num value="4.77">§4.77</num><heading>Unused Leave</heading><content>(a) Unused leave granted under the family leave pool program shall be returned to the pool when the need for that leave ceases.(b) The pool administrator may require that the unused leave be returned to the family leave pool if the employee:(1) fails to provide required documentation in accordance with the applicable department policies and procedures;(2) submits false information; or(3) abuses the use of family leave pool hours.(c) The estate of a deceased employee is not entitled to payment for unused leave withdrawn by the employee from the family leave pool.</content><note type="source"><p>Source Note: The provisions of this §4.77 adopted to be effective August 1, 2022, 47 TexReg 4558.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c4/scG/s4.78"><num value="4.78">§4.78</num><heading>Equal Treatment</heading><content>An employee absent while using time withdrawn from the family leave pool shall be treated as if the employee is absent on earned sick leave.</content><note type="source"><p>Source Note: The provisions of this §4.78 adopted to be effective August 1, 2022, 47 TexReg 4558.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p1/c5"><num value="5">CHAPTER 5</num><heading>FINANCE</heading><subchapter identifier="/us/state/tx/tac/t43/p1/c5/scA"><num value="A">SUBCHAPTER A</num><heading>ETHICS REQUIREMENTS FOR FINANCIAL ADVISORS AND SERVICE PROVIDERS</heading><section identifier="/us/state/tx/tac/t43/p1/c5/scA/s5.1"><num value="5.1">§5.1</num><heading>Purpose</heading><content>Government Code, §2263.004, requires the governing body of a state governmental entity to adopt by rule standards of conduct applicable to certain financial advisors or service providers who provide financial services to the state governmental entity or advise the state governmental entity or a member of the governing body of the state governmental entity in connection with the management or investment of state funds. This subchapter prescribes standards of conduct and disclosure requirements for financial advisors and service providers that provide financial services and advice to the Texas Transportation Commission and the Texas Department of Transportation.</content><note type="source"><p>Source Note: The provisions of this §5.1 adopted to be effective January 8, 2004, 29 TexReg 227.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scA/s5.2"><num value="5.2">§5.2</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--The Texas Transportation Commission.(2) Comptroller--The Comptroller of Public Accounts of the State of Texas.(3) Department--The Texas Department of Transportation.(4) Direct placement investment--The direct sale of securities, generally to institutional investors, with or without the use of brokers or underwriters.(5) Executive director--The executive director of the department.(6) Financial advisor or service provider--A business entity or a person who is not an employee of the department, who acts as a financial advisor, financial consultant, money or investment manager, or broker, or who acts in another capacity to provide services in connection with the management or investment of state funds, and who:(A) may reasonably be expected to receive, directly or indirectly, more than $10,000 in compensation from the department during a fiscal year; or(B) renders investment or funds management advice to the department or the commission.(7) Fiscal year--An accounting period of 12 months that begins on September 1 of each calendar year and ends on August 31 of the following calendar year.(8) State funds--Funds managed or invested by the commission or the department, and not by the comptroller, including bond proceeds held in trust outside the state treasury.</content><note type="source"><p>Source Note: The provisions of this §5.2 adopted to be effective January 8, 2004, 29 TexReg 227.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scA/s5.3"><num value="5.3">§5.3</num><heading>General Ethical Standards</heading><content>(a) Financial advisors and service providers must comply with the standards of conduct and conflict of interest provisions of Government Code, Chapter 572 and the provisions of Penal Code, Chapters 36 and 39 that are applicable to a state officer or employee.(b) Financial advisors and service providers who are members of professional organizations that have promulgated standards of conduct must comply with those standards, and with other applicable ethics codes and standards of conduct. Financial advisors and service providers must also comply with the Code of Ethics and Standards of Professional Conduct of the Association for Investment Management and Research.(c) Financial advisors and service providers must be honest in providing services and advice to the commission and the department, and loyal to the interests of the commission and the department to the extent that conflicting duties do not legally have priority. Financial advisors and service providers shall avoid personal, employment, or business relationships that create conflicts of interest, and shall disclose any conflicts of interest in the manner prescribed in §5.4 of this subchapter.(d) Financial advisors and service providers shall not use nonpublic information gained through a relationship with the commission or the department to seek or obtain personal gain beyond agreed compensation and any authorized expense reimbursement.(e) Financial advisors and service providers shall disclose in writing to the executive director any business or financial transaction greater than $50 in value with a member of the commission or a department employee within 10 days of the transaction. This obligation does not apply to a financial account that is provided to a member of the commission or a department employee under the same terms and conditions as are provided to members of the general public.</content><note type="source"><p>Source Note: The provisions of this §5.3 adopted to be effective January 8, 2004, 29 TexReg 227.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scA/s5.4"><num value="5.4">§5.4</num><heading>Conflicts of Interest</heading><content>(a) A conflict of interest exists whenever financial advisors and service providers have a personal, private, commercial, or business relationship that could reasonably be expected to diminish their independence of judgment in the performance of their responsibilities for the commission or the department, including where an action taken by the financial advisor or service provider reasonably appears to be influenced by considerations of personal gain or benefit rather than motivated by the interests of the commission and the department.(b) Financial advisors and service providers shall promptly disclose in writing to the executive director any relationship the financial advisor or service provider has with any party to a transaction with the commission or the department, other than a relationship necessary to the investment or funds management services performed for the commission or the department, when a reasonable person would consider a conflict of interest to exist because of that relationship.(c) Financial advisors and service providers shall promptly disclose in writing to the executive director all direct or indirect pecuniary interests the financial advisor or service provider has in any party to a transaction with the commission or the department, if the transaction is connected with any services and advice provided to the commission and the department.(d) Financial advisors and service providers shall annually file with the executive director and the state auditor a statement disclosing each relationship and pecuniary interest described by subsections (b) and (c) of this section, or a statement that no such relationships or pecuniary interests existed during the disclosure period. The statement shall be in the form prescribed by the department or the state auditor. A revised statement shall be promptly filed whenever a new relationship subject to subsection (b) of this section is entered into or a new pecuniary interest subject to subsection (c) of this section is created.(e) Financial advisors and service providers shall promptly disclose in writing to the executive director any other possible conflicts of interest. Written disclosures sent to the executive director under this subsection or under subsection (b) of this section shall contain actions proposed by the financial advisor or service provider to avoid conflicts of interest. Financial advisors and service providers may not give advice or provide services relating to a matter affected by the possible conflict of interest unless the executive director or designee waives this prohibition in writing.</content><note type="source"><p>Source Note: The provisions of this §5.4 adopted to be effective January 8, 2004, 29 TexReg 227.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scA/s5.5"><num value="5.5">§5.5</num><heading>Prohibited Interests and Transactions</heading><content>(a) Financial advisors and service providers may not, unless waived in writing by the executive director or designee:(1) have a financial interest in a direct placement investment of state funds;(2) serve as an officer, director, or employee of an entity in which a direct placement investment of state funds is made; or(3) serve as a consultant to, or receive any fee, commission, or payment from, an entity in which a direct placement investment of state funds is made.(b) Financial advisors and service providers that provide investment or funds management advice to the department or the commission shall not engage in any transaction involving state funds with another financial advisor or service provider providing investment or funds management advice to the department or the commission.</content><note type="source"><p>Source Note: The provisions of this §5.5 adopted to be effective January 8, 2004, 29 TexReg 227.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scA/s5.6"><num value="5.6">§5.6</num><heading>Contracts</heading><content>(a) The department shall notify any financial advisor or service provider under contract with the department of the requirements of this subchapter.(b) Any contract with a financial advisor or service provider shall contain a provision requiring compliance by the financial advisor or service provider with the requirements of this subchapter, and provisions relating to termination of the contract for failure to comply.</content><note type="source"><p>Source Note: The provisions of this §5.6 adopted to be effective January 8, 2004, 29 TexReg 227.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c5/scB"><num value="B">SUBCHAPTER B</num><heading>COLLECTION OF DEBTS</heading><section identifier="/us/state/tx/tac/t43/p1/c5/scB/s5.10"><num value="5.10">§5.10</num><heading>Collection of Debts</heading><content>(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Attorney general--The Office of the Attorney General of Texas.(2) Debtor--Any person liable for an obligation owed to the department or against whom a claim or demand for payment has been made.(3) Delinquent--Payment is past due by law or by customary business practice, and all conditions precedent to payment have occurred or been performed.(4) Department--The Texas Department of Transportation.(5) District--A subdivision of the department responsible for the day-to-day operations of the department in a specific geographically defined area.(6) Division --An organizational unit in the department's Austin headquarters. The term includes an organizational unit that is designated as an office.(7) Obligation--A debt, judgment, claim, account, fee, fine, tax, penalty, interest, loan, charge, or grant.(8) Person--An individual, corporation, organization, business trust, estate, trust, partnership, association, and any other legal entity.(9) Security--Any right to have property owned by an entity with an obligation to the department sold or forfeited in satisfaction of the obligation, and any instrument granting a cause of action in favor of the department against another entity or that entity's property, such as bond, letter of credit, or other collateral that has been pledged to the department to secure an obligation.(b) Collection from contractors. If an obligation of a contractor of the department is delinquent and the department owes payment to that contractor, the department will subtract the amount of the obligation from the payment if practical.(c) Notification of obligation and demand letters.(1) The division or district responsible for determining that an obligation is owed to the department will send to the debtor written notice of the obligation that contains the amount owed and the date payment is due.(2) If no satisfactory response is received within 30 days after the date that the notice is sent under paragraph (1) of this subsection, the obligation becomes delinquent on the 31st day after the date that notice is sent. The district or division will send a first demand letter not later than the 30th day after the date on which the obligation becomes delinquent.(3) If no satisfactory response is received within 30 days after the day on which the first demand letter was sent, the division or district will send a final demand letter no later than 60 days after the date on which the first demand letter was sent. The final demand letter will include a deadline by which the debtor must respond and, if the department determines in accordance with subsection (e) of this section that the obligation should be referred to the attorney general, a statement that the obligation, if not paid, will be referred to the attorney general.(4) Each demand letter will set forth the nature and amount of the obligation owed to the department and will be mailed by first class United States mail, in an envelope bearing the notation "address correction requested." If an address correction is provided by the United States Postal Service, the division or district will resend the demand letter to that address prior to referral to the attorney general.(d) Records. The department will retain records of a delinquent obligation. A record shall contain documentation of the following information:(1) the identity of each person liable on all or any part of the obligation;(2) the physical address of the debtor's place of business;(3) the physical address of the debtor's residence, where applicable;(4) a post office box address where it is impractical to obtain a physical address, or when the post office box address is in addition to a correct physical address;(5) attempted contacts with the debtor;(6) the substance of communications with the debtor;(7) efforts to locate the debtor and the assets of the debtor;(8) state warrants that may be issued to the debtor;(9) current contracts with the department;(10) security interests that the department has against any assets of the debtor;(11) notices of bankruptcy, proofs of claim, dismissals and discharge orders received from the United States bankruptcy courts; and(12) other information relevant to collection of the delinquent account.(e) Referrals of a delinquent obligation to the attorney general.(1) Prior to referral of a delinquent obligation to the attorney general, the department will:(A) verify the debtor's address and telephone number;(B) send a first and final demand letter to the debtor in accordance with subsection (c) of this section;(C) verify that the obligation is not considered uncollectible under paragraph (2) of this subsection;(D) prepare and file a proof of claim in the case of a bankruptcy unless the department is represented by the attorney general; and(E) file a claim in the probate proceeding if the debtor is deceased unless the department is represented by the attorney general.(2) The department will consider a delinquent obligation uncollectible and will make no further effort to collect if the obligation:(A) has been dismissed or discharged in bankruptcy;(B) is subject to an applicable limitations provision that would prevent collection as a matter of law;(C) is owed by a corporation which has been dissolved, is in liquidation under Chapter 7 of the United States Bankruptcy Code, has forfeited its corporate privileges or charter, or, in the case of a foreign corporation, had its certificate of authority revoked unless circumstances indicate that the account is nonetheless collectible or that fraud was involved;(D) is owed by an individual who is located out-of-state, or outside the United States, unless a determination is made that the domestication of a Texas judgment in the foreign forum would more likely than not result in collection of the obligation, or that the expenditure of department funds to retain foreign counsel to domesticate the judgment and proceed with collection attempts is justified;(E) is owed by a debtor who is deceased, where probate proceeding have concluded, and where there are no remaining assets available for distribution; or(F) is owed by a debtor whose circumstances demonstrate a permanent inability to pay or make payments toward the obligation.(3) In making a determination of whether to refer a delinquent obligation to the attorney general, the department will consider:(A) the expense of further collection procedures;(B) the size of the debt;(C) the existence of any security;(D) the likelihood of collection through passive means such as the filing of a lien;(E) the availability of resources to collect the obligation; and(F) policy reasons or other good cause.(4) The department will refer a delinquent obligation to the attorney general for further collection efforts if the department determines in accordance with this subsection that the delinquent obligation should be referred.(f) Supplemental and alternative collection procedures.(1) Liens. The department, unless represented by the attorney general, will record a lien securing the delinquent obligation in the appropriate records of the county where the debtor's principal place of business, or, where appropriate, the debtor's residence, is located or in such county as may be required by law as soon as is practicable. Unless the delinquent obligation has been paid in full, any lien securing the indebtedness may not be released without the approval of the attorney representing the department after the matter has been referred to the attorney general.(2) Warrants. The department will utilize the "warrant hold" procedures of the Comptroller of Public Accounts authorized by Government Code, §403.055, to ensure that no treasury warrants are issued to debtors until the debt is paid.</content><note type="source"><p>Source Note: The provisions of this §5.10 adopted to be effective October 27, 1995, 20 TexReg 8482; amended to be effective February 19, 2009, 34 TexReg 1099.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scB/s5.11"><num value="5.11">§5.11</num><heading>Charges for Dishonored Checks</heading><content>(a) Purpose. Business and Commerce Code, Section 3.506, authorizes the holder of a dishonored check seeking collection of the face value of the check to charge the drawer or endorser of the check a processing fee in an amount authorized by that section. This section prescribes policies and procedures for the processing of dishonored checks made payable to the department and the collection of fees because of the dishonor of a check made payable to the department.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Department--The Texas Department of Transportation.(2) Dishonored check--A check, draft, order, or other instrument that is drawn or made upon a bank or other financial institution, and that is not honored upon presentment because the account upon which the instrument has been drawn or made does not exist or is closed, or does not have sufficient funds or credit for payment of the instrument in full.(c) Processing of dishonored checks. Upon receipt of notice from a bank or other financial institution of refusal to honor a check made payable to the department, the department will process the returned check using the following procedures.(1) The department will send a written notice by certified mail, return receipt requested, to the drawer or endorser at the drawer or endorser's address as shown on:(A) the dishonored check;(B) the records of the bank or other financial institution; or(C) the records of the department.(2) The written notice will notify the drawer or endorser of the dishonored check and will request payment of the face amount of the check and a processing fee no later than 10 days after the date of receipt of the notice. The written notice will also contain the statement required by Penal Code, §32.41(c)(3).(3) The face amount of the check and the processing fee must be paid to the department:(A) with a cashier's check or money order, made payable to the Texas Department of Transportation; or(B) with a valid credit card issued by a financial institution chartered by a state or the United States.(4) Payments made by credit card must include the fee required by §5.43(c) of this chapter (relating to Methods of Payment).(5) If payment is not received within 10 days after the date of receipt of the notice, the obligation will be considered delinquent and will be processed in accordance with §5.10 of this subchapter (relating to Collection of Debts).(d) Supplemental collection procedures. In addition to the procedures described in §5.10 of this subchapter, the department may notify appropriate credit bureaus or agencies if the drawer or endorser fails to pay the face amount of a dishonored check and the processing fee, or may refer the matter for criminal prosecution.</content><note type="source"><p>Source Note: The provisions of this §5.11 adopted to be effective December 5, 2001, 26 TexReg 9914; amended to be effective April 16, 2014, 39 TexReg 2957.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c5/scD"><num value="D">SUBCHAPTER D</num><heading>PAYMENT OF FEES FOR DEPARTMENT GOODS AND SERVICES</heading><section identifier="/us/state/tx/tac/t43/p1/c5/scD/s5.41"><num value="5.41">§5.41</num><heading>Purpose</heading><content>Transportation Code, §201.208 authorizes the commission to adopt rules regarding the method of payment of a fee for any goods sold or services provided by the department, or for the administration of any department program. This subchapter prescribes acceptable payment methods and requirements for payment by that method.</content><note type="source"><p>Source Note: The provisions of this §5.41 adopted to be effective May 21, 2000, 25 TexReg 4354.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scD/s5.42"><num value="5.42">§5.42</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings unless the context clearly indicates otherwise.(1) Commission--The Texas Transportation Commission.(2) Department--The Texas Department of Transportation.(3) Goods and services--Any goods sold or services provided by the department, including the issuance of licenses and permits.</content><note type="source"><p>Source Note: The provisions of this §5.42 adopted to be effective May 21, 2000, 25 TexReg 4354; amended to be effective May 20, 2010, 35 TexReg 3853; amended to be effective March 21, 2013, 38 TexReg 1877.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scD/s5.43"><num value="5.43">§5.43</num><heading>Methods of Payment</heading><content>(a) Except as provided in subsection (b) of this section, all fees for department goods and services and any fees required in the administration of any department program may be paid to the department:(1) with a valid credit card issued by a financial institution chartered by a state or the United States;(2) by electronic funds transfer;(3) with a personal check, business check, cashier's check, or money order, payable to the Texas Department of Transportation; or(4) by cash in person at locations made available for that purpose by the department.(b) The department may disallow one or more methods of payment for specified goods or services or at specified locations based on the administrative cost to process that method of payment.(c) Persons paying by credit card may be required to pay a service charge per transaction along with the applicable fee.</content><note type="source"><p>Source Note: The provisions of this §5.43 adopted to be effective May 21, 2000, 25 TexReg 4354; amended to be effective March 15, 2001, 26 TexReg 2052; amended to be effective May 20, 2010, 35 TexReg 3853; amended to be effective April 16, 2014, 39 TexReg 2957.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c5/scE"><num value="E">SUBCHAPTER E</num><heading>PASS-THROUGH FARES AND TOLLS</heading><section identifier="/us/state/tx/tac/t43/p1/c5/scE/s5.51"><num value="5.51">§5.51</num><heading>Purpose</heading><content>Transportation Code, §222.104(b) authorizes the Texas Department of Transportation to enter into an agreement with a public or private entity that provides for the payment of pass-through tolls to the public or private entity as reimbursement for the design, development, financing, construction, maintenance, or operation of a toll or non-toll facility on the state highway system by the public or private entity. Transportation Code, §222.104(c) authorizes the department to enter into an agreement with a private entity that provides for the payment of pass-through tolls to the department as reimbursement for the department's design, development, financing, construction, maintenance, or operation of a toll or non-toll facility on the state highway system by the public or private entity. Transportation Code, §91.075(b) authorizes the department to enter into an agreement with a public or private entity that provides for the payment of pass-through fares to the public or private entity as reimbursement for the acquisition, design, development, financing, construction, relocation, maintenance, or operation of a passenger railway facility or a freight railway facility by the entity. This subchapter prescribes the policies and procedures governing the department's implementation of these statutory provisions.</content><note type="source"><p>Source Note: The provisions of this §5.51 adopted to be effective April 15, 2004, 29 TexReg 3640; amended to be effective April 20, 2006, 31 TexReg 3269.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scE/s5.52"><num value="5.52">§5.52</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--The Texas Transportation Commission.(2) Department--The Texas Department of Transportation.(3) Department estimate--An estimate of what it would cost the department to perform the work proposed by the public or private entity, whether the work is proposed to be performed by the department or whether it is proposed to be performed by the public or private entity. The estimate is developed or updated by the department after receipt of a public or private entity's request and prior to the time the department executes an agreement with the public or private entity.(4) Environmental Permits, Issues, and Commitments (EPIC)--Any permit, issue, coordination, commitment, or mitigation obtained to satisfy social, economic, or environmental impacts of a project, including sole source aquifer coordination, wetland permits, stormwater permits, traffic noise abatement, threatened or endangered species coordination, archeological permits, and any mitigation or other commitment associated with any of those issues.(5) Executive director--The executive director of the department or the executive director's designee not below district engineer, division director, or office director.(6) Highway--Includes any facility convenient or necessary to the operation of a highway.(7) Operation--Includes maintenance.(8) Pass-through agreement--A pass-through toll agreement or a pass-through agreement entered under the terms of this subchapter by the department and a public or private entity.(9) Pass-through fare--A dollar amount, including a surcharge or user fee for freight shipments, that is tied to a measure of actual usage of a railway and is used under this subchapter as a means of calculating payments made by one entity to another to provide reimbursement for some or all of the costs of acquiring, designing, developing, financing, constructing, relocating, maintaining, or operating a passenger or freight railway.(10) Pass-through toll--A dollar amount that is tied to a measure of actual usage of a highway and is used under this subchapter as a means of calculating payments made by one entity to another to provide reimbursement for some or all of the costs of designing, developing, financing, constructing, maintaining, or operating a highway on the state highway system.(11) Public or private entity--Any entity authorized by law to enter into a pass-through agreement with the department under this subchapter for the acquisition, design, development, financing, construction, relocation, maintenance, or operation of a highway or railway.(12) Railway--Includes both passenger and freight railways and any facility convenient or necessary to the operation of a railway.</content><note type="source"><p>Source Note: The provisions of this §5.52 adopted to be effective April 15, 2004, 29 TexReg 3640; amended to be effective April 20, 2006, 31 TexReg 3269.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scE/s5.53"><num value="5.53">§5.53</num><heading>Proposal</heading><content>(a) Proposal requirements. A public or private entity may submit in writing to the department a proposal for a project or a series of projects to be developed under a pass-through agreement. The proposal must include:(1) a description of the project, including the project limits, connections with other transportation facilities, any services to be provided, and the geographic area affected;(2) an application, on a form provided by the department, that includes all scope and estimate documentation forms and related attachments and any other materials and information required by the application;(3) a statement of the benefits anticipated to result from completion of the project, including the economic development potential in the area, reduced congestion on the state highway system, enhanced safety, and improved air quality in the region;(4) a description of and documentation evidencing the local public support for the project and any local public opposition;(5) a proposed project development and implementation schedule, including an estimated date when the project will be open to traffic;(6) a description of the entity's experience in developing highway projects, if the proposer is a public entity and if the proposal is for the development of a highway project by that entity;(7) a description of the entity's experience in developing railway projects, if the proposer is a public entity and if the proposal is for the development of a railway project by that entity;(8) complete information concerning the experience, expertise, technical competence, and qualifications of the proposer and of each member of the proposer's management team and of other key employees or consultants, including the name, address, and professional designation of each member of the proposer's management team and of other key employees or consultants, and the capability of the proposer to develop the proposed projects, if the proposer is a private entity and if the proposal is for the development of a project by that entity;(9) financial information sufficient to show the financial strength and capability of the proposer to develop and complete the project, or to make all projected future payments if the proposal is for the development of a project by the department;(10) the total amount and period of reimbursement requested and proposed pass-through payment schedule;(11) the project funding sources and amounts proposed for each of the project cost categories including design, development, financing, construction, maintenance, and operation;(12) the type of funding and other kinds of department contributions and participation requested for the project, other than reimbursement from the pass-through toll program;(13) for a highway project, a statement indicating whether the proposer intends for the project to be tolled and, if the proposer intends for a tolled project to be first opened to traffic as a non-tolled highway, the approximate date on which the highway will begin to be tolled;(14) a statement indicating whether the proposer intends to enter into a comprehensive development agreement, if the proposer is a private entity and if the proposal is for the development of a project by that entity;(15) a statement indicating whether the entity has or intends to designate a contiguous geographic area in the jurisdiction of the entity as a transportation reinvestment zone under Transportation Code, Chapter 222, Subchapter E, if the proposer is a public entity;(16) a statement indicating whether the project is intended to function as part of a hurricane evacuation route; and(17) a statement indicating whether the project has application to a military base realignment or closure.(b) Public release of proposal. If requested, and unless prohibited by law, the department will release to the public a proposal submitted under this section.(c) Certain contracting requirements. The private entity and the department may agree to develop a project under a comprehensive development agreement if authorized by other law. For a highway project that is developed by the proposer, notwithstanding any other provision of this subchapter, Chapter 27, Subchapter A, of this title (relating to Comprehensive Development Agreements), applies to the solicitation, advertisement, negotiation, and execution of a comprehensive development agreement. For a railway project that is developed by the proposer, notwithstanding any other provision of this subchapter, Chapter 7, Subchapter B, of this title (relating to Contracts) applies to the solicitation, advertisement negotiation, and execution of a comprehensive development agreement.</content><note type="source"><p>Source Note: The provisions of this §5.53 adopted to be effective April 15, 2004, 29 TexReg 3640; amended to be effective April 20, 2006, 31 TexReg 3269; amended to be effective January 3, 2008, 32 TexReg 10057; amended to be effective February 19, 2009, 34 TexReg 1100.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scE/s5.54"><num value="5.54">§5.54</num><heading>Participation in the Program</heading><content>(a) If the commission determines that funds available for use in the pass-through toll program are limited, or other circumstances exist that may impair the ability of entities to equally participate in the program, the commission may periodically limit the periods of time during which the department will accept proposals for projects to be developed and, for each specific period, prescribe conditions for submission and the costs that may be reimbursed under a pass-through agreement. (b) Upon the commission's designation of a specific period for acceptance of proposals and determination of the applicable conditions, the department will publish a notice in the Texas Register soliciting proposals for projects to be developed under a pass-through agreement under this subchapter. The notice will specify: (1) the deadline for submitting proposals under the notice; (2) the estimated amount of funds available in the pass-through toll program that can be allocated to proposals submitted under the notice; (3) whether submissions will be accepted from only public entities or from both public and private entities; (4) whether submissions will be accepted for only highway projects, only railway projects, or for both highway and railway projects; (5) the categories of project costs, as described by §5.53(a)(11) of this subchapter, that will be considered as eligible for reimbursement; and (6) any other condition deemed appropriate by the commission. (c) A proposal submitted in response to a notice must contain the information required by §5.53 of this subchapter. (d) The department will evaluate the submitted proposals using the items of consideration set forth in §5.55 of this subchapter and present its analyses to the commission.</content><note type="source"><p>Source Note: The provisions of this §5.54 adopted to be effective February 19, 2009, 34 TexReg 1100.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scE/s5.55"><num value="5.55">§5.55</num><heading>Commission Approval to Negotiate</heading><content>The commission may authorize the executive director to negotiate the financial terms of a potential pass-through agreement under this subchapter or, if the proposer is a private entity, authorize the department to solicit competitive proposals under §5.56 of this subchapter, after considering:(1) the proposer's proposed financial contribution to the project from sources other than the department, in relation to total project cost;(2) the geographic area affected;(3) local public support for the project;(4) for a highway project, whether the project is included in the department's Unified Transportation Program;(5) the extent to which the project will relieve congestion on the state highway system;(6) the potential safety benefit that may be derived from the project;(7) potential benefits to regional air quality that may be derived from the project;(8) the compatibility of the proposed project with existing and planned transportation facilities;(9) the extent to which the project will close gaps in the state transportation system;(10) whether the entity has or intends to designate a contiguous geographic area in the jurisdiction of the entity as a transportation reinvestment zone under Transportation Code, Chapter 222, Subchapter E, if the proposer is a public entity;(11) the proposer's proposed amount and period for department reimbursement and proposed pass-through payment schedule;(12) the economic development potential in the area;(13) the financial strength of the proposer;(14) whether the project is part of a hurricane evacuation route;(15) whether the project has application to a military base realignment or closure;(16) the experience of the proposer in developing similar transportation projects; and(17) the relationship of the proposed project to stated commission goals.</content><note type="source"><p>Source Note: The provisions of this §5.55 adopted to be effective February 19, 2009, 34 TexReg 1100.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scE/s5.56"><num value="5.56">§5.56</num><heading>Proposals from Private Entities</heading><content>(a) If the commission approves the further evaluation of a proposal of a private entity under §5.55 of this subchapter, the department will publish notice of that decision and provide an opportunity for the submission of competing proposals. (b) The department will publish a notice in the Texas Register and in one or more newspapers of general circulation. The notice will state that the department has received a proposal under this subchapter, that it intends to evaluate the proposal, that it may negotiate a pass-through agreement with the proposer based on the proposal, and that it will accept for simultaneous consideration any competing proposals that the department receives in accordance with this subchapter within 45 days of the initial publication of the notice in the Texas Register, or such additional time as authorized by the commission. In determining whether to authorize additional time for submission of competing proposals, the commission will consider the complexity of the proposal. (c) The notice will summarize the proposed project and identify its proposed location. The notice will also specify the general criteria that will be used to evaluate all proposals. Specific evaluation criteria will be set forth in the request for proposals. The criteria will include: (1) the factors listed in §5.55 of this subchapter, to the extent applicable; (2) the proposer's qualifications, technical competence, and financial capability; (3) an analysis of the proposer's project implementation schedule; and (4) any other factor deemed appropriate by the department. (d) A proposal submitted in response to a notice must contain the information required by §5.53 of this subchapter. (e) The original proposer may submit a revised proposal in response to a notice. (f) Upon expiration of the 45-day period, or such additional time as authorized by the commission, the department will evaluate the proposal of the original proposer and any properly submitted competing proposals, utilizing the evaluation criteria set forth in the request for proposals. (g) The department will rank all proposals after the evaluation described in subsection (f) of this section, and may select the private entity whose proposal provides the best value to the department. The executive director will direct the department's attempt to negotiate a pass-through agreement with that proposer. (h) If an agreement satisfactory to the executive director cannot be negotiated with the proposer, the department will formally end negotiations with that proposer. The department may reject all proposals or proceed to the next most highly ranked proposal and attempt to negotiate an agreement with that party.</content><note type="source"><p>Source Note: The provisions of this §5.56 adopted to be effective February 19, 2009, 34 TexReg 1100.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scE/s5.57"><num value="5.57">§5.57</num><heading>Final Approval</heading><content>(a) Authorization to negotiate final agreement. The executive director will submit to the commission a summary of the final financial terms of a proposed pass-through agreement. The final financial terms may consist of specific payment terms and schedules or may consist of a range of acceptable parameters. The commission may authorize the executive director to negotiate and execute a final agreement only if it finds that:(1) the project serves the public interest and not merely a private interest;(2) the proposed pass-through agreement is in the best interest of the state;(3) the project is compatible with existing and planned transportation facilities; and(4) the project furthers state, regional, and local transportation plans, programs, policies, and goals.(b) Contents of pass-through agreement. Before any work is done for which reimbursement will be requested through a pass-through toll or fare, the department and the public or private entity shall execute a pass-through agreement containing, at a minimum, the following:(1) identification of the scope and nature of the work to be performed;(2) identification of the one or more categories of project costs, as described by §5.53(a)(11) of this subchapter, that the department will reimburse;(3) all financial terms, as applicable, including the levels of pass-through tolls or fares, maximum and minimum periodic payments, and maximum and minimum total payments;(4) allocation of responsibility for all significant work to be performed, including environmental documentation, right of way acquisition, utility adjustments, engineering, construction, and maintenance;(5) provision for the collection and use of toll or other revenues, if applicable;(6) all provisions required by state or federal law;(7) a map showing the location of the project;(8) a proposed project schedule;(9) an estimated budget;(10) deadlines for key stages of project development;(11) procedures and timelines for the submission of materials and for approvals;(12) for a local government, a copy of the resolution or ordinance authorizing execution of the agreement;(13) provisions for termination of the agreement; and(14) if applicable, a copy of the order, resolution, or ordinance designating a contiguous geographic area in the jurisdiction of a public entity as a transportation reinvestment zone under Transportation Code, Chapter 222, Subchapter E.</content><note type="source"><p>Source Note: The provisions of this §5.57 adopted to be effective February 19, 2009, 34 TexReg 1100.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scE/s5.58"><num value="5.58">§5.58</num><heading>Calculation of Pass-Through Fares and Tolls</heading><content>(a) Pass-through fares.(1) Amount to be reimbursed.(A) General. The commission shall establish the level of pass-through fares or shall establish parameters within which the department may negotiate the level of pass-through fares. In establishing the level of pass-through fares or parameters within which the department may negotiate the level of pass-through fares, the commission shall consider whether:(i) the project's estimated benefits to mobility warrant a pass-through fare at a level that is more or less than the department's estimate of project costs;(ii) the project will result in a significant economic gain or loss to the entity responsible for its development;(iii) the public or private entity proposes to share in the cost of the project; and(iv) the state or the public or private entity will benefit, and to what extent, if the project is built sooner than would be the case in the absence of a pass-through agreement.(B) Limits on pass-through fare levels.(i) The commission will not approve payment by the department of a level of pass-through fares that exceeds the department's estimate, except as permitted by this subparagraph. The commission may approve the department's payment of a level of pass-through fares that exceeds the department's current estimate, but only by the difference between the department's current estimate and the department's estimate for the time when the project would likely have been completed in the absence of a pass-through agreement.(ii) In determining the level of pass-through fares, the commission will not consider any financing cost incurred by the public or private entity.(2) Payment schedule and method.(A) Payment schedule. The schedule of pass-through fare payments will be calculated based on the department's traffic projections for the railway and a number and frequency of payments to be negotiated between the department and the public or private entity. The payment schedule may include a maximum and a minimum periodic amount to be paid annually or in total.(B) Variable payments. The pass-through fare may vary on any basis that reasonably reflects the value of improvements, the nature of the railway traffic, or benefits to the highway system, including:(i) number, type, and class of passengers;(ii) type of freight;(iii) tonnage of freight;(iv) number or type of cars;(v) mileage traveled; or(vi) characteristics of track.(3) Allocation of risk.(A) Cost overruns and underruns. Unless otherwise authorized by the commission and incorporated in a pass-through agreement by the department, the department's liability under a pass-through agreement shall be neither increased nor decreased by cost overruns or underruns. Pass-through fare payments by the department shall not be increased if there is a cost overrun or decreased if there is a cost underrun unless an adjustment is specifically authorized by the commission and incorporated in a pass-through agreement by the department.(B) Traffic volume. If traffic volume exceeds or falls below expectations, the pass-through fare will not be adjusted. Payments shall not exceed the maximum annual amount specified in the pass-through agreement and shall not be below the minimum annual amount specified in the pass-through agreement. The pass-through agreement shall provide that if required, payments shall continue until the total of all payments equals the total pass-through fare amount specified by the commission in approving the pass-through fare.(b) Pass-through tolls.(1) Level of pass-through tolls.(A) General. The commission shall establish the level of pass-through tolls or shall establish parameters within which the department may negotiate the level of pass-through tolls. In establishing the level of pass-through tolls or parameters within which the department may negotiate the level of pass-through tolls, the commission shall consider whether:(i) the project's estimated benefits to mobility warrant a pass-through toll at a level that is more or less than the department's estimate of project costs;(ii) the project will result in a significant economic gain or loss to the entity responsible for its development;(iii) the public or private entity proposes to share in the cost of the project; and(iv) the state or the public or private entity will benefit, and to what extent, if the project is built sooner than would be the case in the absence of a pass-through agreement.(B) Limits on pass-through toll levels.(i) The commission will not approve payment by the department of a level of pass-through tolls that exceeds the department's estimate, except as permitted by this subparagraph. The commission may approve the department's payment of a level of pass-through tolls that exceeds the department's current estimate, but only by the difference between the department's current estimate and the department's estimate for the time when the project would likely have been completed in the absence of a pass-through agreement.(ii) In determining the level of pass-through tolls, the commission will not consider any financing cost incurred by the public or private entity.(2) Payment schedule and method.(A) Payment schedule. The schedule of pass-through toll payments will be calculated based on the department's traffic projections for the highway and a number and frequency of payments to be negotiated between the department and the public or private entity. The payment schedule may include a maximum and a minimum annual amount to be paid periodically or in total.(B) Variable payments. The pass-through toll may vary on any basis that reasonably reflects the value of improvements, the nature of the highway, or benefits to other aspects of the highway system, including:(i) the number of vehicles using the highway;(ii) the number of vehicle-miles traveled on the highway;(iii) the condition of the highway; and(iv) whether the highway is tolled.(3) Allocation of risk.(A) Cost overruns and underruns. Unless otherwise authorized by the commission and incorporated in a pass-through agreement by the department, the department's liability under a pass-through agreement shall be neither increased nor decreased by cost overruns or underruns.(i) Projects developed by the public or private entity. If the project is being developed by the public or private entity, the pass-through toll payments by the department shall not be increased if there is a cost overrun or decreased if there is a cost underrun unless an adjustment is specifically authorized by the commission and incorporated in a pass-through agreement by the department.(ii) Projects developed by the department. If the project is being developed by the department, the pass-through agreement shall provide that the pass-through toll or the maximum amount payable, or both, shall be adjusted to reflect the department's actual costs unless the commission specifically directs that the department shall bear the risk of cost overruns or underruns.(B) Traffic volume. If traffic volume exceeds or falls below expectations, the pass-through toll will not be adjusted. Payments shall not exceed the maximum annual amount specified in the pass-through agreement and shall not be below the minimum annual amount specified in the pass-through agreement. The pass-through agreement shall provide that if required, payments shall continue until the total of all payments equals the total pass-through toll amount specified by the commission in approving the pass-through toll.</content><note type="source"><p>Source Note: The provisions of this §5.58 adopted to be effective February 19, 2009, 34 TexReg 1100.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scE/s5.59"><num value="5.59">§5.59</num><heading>Project Development by Public or Private Entity</heading><content>(a) Social and environmental impact.(1) General. A public or private entity that is responsible for the construction of a project shall conduct the environmental review and public involvement for the project in the manner prescribed by Chapter 2, Subchapter A of this title (relating to Environmental Review and Public Involvement for Transportation Projects). The department may choose to conduct the environmental review and public involvement.(2) Department approval. The department must approve each environmental review under this section before construction of the project begins.(b) Right of way and utilities.(1) Responsibility. This subsection applies when the public or private entity is responsible for the acquisition of right of way or the adjustment of utilities.(2) Right of way procedures.(A) Manual requirements. The acquisition of right of way performed by or on behalf of the public or private entity shall comply with the latest version of each of the department's manuals.(B) Alternative procedures. A public or private entity may request written approval to use a different accepted procedure for a particular item or phase of work. The use of an alternative procedure is subject to the approval of the Federal Highway Administration. The executive director may approve the use of an alternative procedure if the alternative procedure is determined to be sufficient to discharge the department's state and federal responsibilities in acquiring real property.(3) Utility adjustments. The adjustment, removal, or relocation of utility facilities performed by or on behalf of the public or private entity shall comply with applicable federal and state laws and regulations.(c) Design and construction.(1) Responsibility. This subsection applies when the public or private entity is responsible for the design, construction, and, operation, as applicable, of each project it undertakes. This responsibility includes ensuring that all EPIC are addressed in project design and carried out during project construction and operation.(2) Design criteria.(A) State criteria. All designs developed by or on behalf of the public or private entity shall comply with the latest version of the department's manuals.(i) Highway projects. Each highway project shall, at a minimum, comply with the:(I) Roadway Design Manual;(II) Pavement Design Manual;(III) Hydraulic Design Manual;(IV) Texas Manual on Uniform Traffic Control Devices;(V) Bridge Design Manual;(VI) Texas Accessibility Standards;(VII) 16 TAC Chapter 68 relating to Elimination of Architectural Barriers; and(VIII) Americans with Disabilities Act Accessibility Guidelines.(ii) Railway projects. Each railway project shall comply, at a minimum, with the current version of the American Railway Engineering and Maintenance of Right of Way Association standards.(B) Alternative criteria. A public or private entity may request approval to use different accepted criteria for a particular item of work. Alternative criteria may include the latest version of the AASHTO Policy on Geometric Design of Highways and Streets, the AASHTO Pavement Design Guide, and the AASHTO Bridge Design Specifications. The use of alternative criteria is subject to the approval of the Federal Highway Administration or the Federal Railroad Administration for those projects involving federal funds. The executive director may approve the use of alternative criteria if the alternative criteria are determined to be sufficient to protect the safety of the traveling public and protect the integrity of the transportation system.(C) Exceptions to design criteria. A public or private entity may request approval to deviate from the state or alternative criteria for a particular design element on a case-by-case basis. The request for approval shall state the criteria for which an exception is being requested and must include a comprehensive description of the circumstances and engineering analysis supporting the request. The executive director may approve an exception after determining that the particular criteria could not reasonably be met due to physical, environmental, or other relevant factors and that the proposed design is a prudent engineering solution.(3) Access to a highway project.(A) Access management. Access to a highway shall be in compliance with the department's access management policy.(B) Interstate access. For proposed highway projects that will change the access control line to an interstate highway, the public or private entity shall submit to the department all data necessary for the department to request Federal Highway Administration approval.(4) Preliminary design submission and approval. When design is approximately 30% complete or as otherwise provided in a pass-through agreement, the public or private entity shall send the following preliminary design information to the department for review and approval in accordance with the procedures and timeline established in the project development agreement described in subsection (d) of this section:(A) for a highway project, a completed Design Summary Report form as contained in the department's Project Development Process Manual;(B) a design schematic depicting plan, profile, and superelevation information for each roadway or a design schematic depicting plan, profile, and superelevation based on top of railway for each railway line;(C) typical sections showing existing and proposed horizontal dimensions, cross slopes, location of profile grade line, pavement layer thickness and composition, earthen slopes, and right of way lines for each roadway or subballast and ballast layer thickness and composition for each railway line;(D) bridge, retaining wall, and sound wall layouts;(E) hydraulic studies and drainage area maps showing the drainage of waterways entering the project and local project drainage;(F) an explanation of the anticipated handling of existing traffic during construction;(G) when structures meeting the definition of a bridge as defined by the National Bridge Inspection Standards are proposed, an indication of structural capacity in terms of design loading;(H) an explanation of how the U.S. Army Corps of Engineers permit requirements, including associated certification requirements of the Texas Commission on Environmental Quality, will be satisfied if the project involves discharges into waters of the United States; and(I) for a highway project, the location and text of proposed mainlane guide signs shown on a schematic that includes lane lines or arrows indicating the number of lanes.(5) Highway construction specifications.(A) All plans, specifications, and estimates developed by or on behalf of the public or private entity for a highway project shall conform to the latest version of the department's Standard Specifications for Construction and Maintenance of Highways, Streets, and Bridges, and shall conform to department-required special specifications and special provisions.(B) The executive director may approve the use of an alternative specification if the proposed alternative specification is determined to be sufficient to ensure the quality and durability of the finished product for the intended use and the safety of the traveling public.(6) Railway construction specifications.(A) All plans, specifications, and estimates developed by or for the public or private entity for a railway project shall conform to all construction and material specifications established in the American Railway Engineering and Maintenance of Right of Way Association standards.(B) The executive director may approve the use of an alternative specification if the proposed alternative specification is determined to be sufficient to ensure the quality and durability of the finished product for the intended use and the safety of the public and the railway system.(7) Submission and approval of final design plans and contract administration procedures. When final plans are complete, the public or private entity shall send the following information to the department for review and approval in accordance with the procedures and timelines established in the contract described in §5.57(b) of this subchapter:(A) seven copies of the final set of plans, specifications, and engineer's estimate (PS&E) that have been signed and sealed by the responsible engineer;(B) revisions to the preliminary design submission previously approved by the department in a format that is summarized or highlighted for the department;(C) a proposal for awarding the construction contract in compliance with applicable state and federal requirements;(D) contract administration procedures for the construction contract with criteria that comply with the applicable national or state administration criteria and manuals; and(E) the location and description of all EPIC addressed in construction.(8) Construction inspection and oversight.(A) Unless the department agrees in writing to assume responsibility for some or all of the following items, the public or private entity is responsible for:(i) overseeing all construction operations, including the oversight and follow through with all EPIC;(ii) assessing contract revisions for potential environmental impacts; and(iii) obtaining any necessary EPIC required for contract revisions.(B) The department may inspect the construction of the project at times and in a manner it deems necessary to ensure compliance with this section.(9) Contract revisions. All revisions to any construction contract entered into under a pass-through agreement under this subchapter shall comply with the latest version of the applicable national or state administration criteria and manuals, and must be submitted to the department for its records. Any revision that affects prior environmental approvals or significantly revises project scope or the geometric design must be submitted to the department for approval prior to beginning the revised construction work. Procedures governing the department's approval, including time limits for department review, shall be included in the agreement described in §5.57(b) of this subchapter.(10) As-built plans. Within six months after final completion of the construction project, the public or private entity shall file with the department a set of the as-built plans incorporating any contract revisions. These plans shall be signed, sealed, and dated by a professional engineer licensed in Texas certifying that the project was constructed in accordance with the plans and specifications.(11) Document and information exchange. The public or private entity agrees to deliver to the department all materials used in the development of the project including aerial photography, computer files, surveying information, engineering reports, environmental documentation, general notes, specifications, contract provision requirements, and all information necessary for the department to update legacy data systems.(12) State and federal law. The public or private entity shall comply with all federal and state laws and regulations applicable to the project and the state highway system, and shall provide or obtain all applicable permits, plans, and other documentation required by a federal or state entity.(d) Contracts. All contracts for the development, construction, or operation of a project shall be awarded in compliance with applicable law.(e) Federal law. If any federal funds are used in the development or construction of a project under this subchapter, or if the department intends to fund pass-through toll payments with federal funds, the development and construction of the project shall be accomplished in compliance with all applicable federal requirements.(f) Bond financing.(1) Department review. If any public or private entity responsible for financing a portion of a project to be developed under a pass-through agreement intends to sell bonds and use pass-through toll or fare payments from the department as evidence of financial capability to repay the bonds, the entity shall provide the department an opportunity to review and comment on bond offering documents prior to sale of the bonds.(2) Pass-through agreement. The pass-through agreement must provide that:(A) the department will have at least five business days after the date on which it receives all of the bond offering documents to review those documents; and(B) the public or private entity must obtain department pre-approval of any provision in the bond offering documents that describes the pass-through agreement, the department's obligations under the agreement, the interrelationship of the department, commission, and state highway fund, and the department's obligation to provide bond investors with updated information on the status of the state highway fund.(3) Business day. For purposes of this subsection, "business day" excludes Saturday, Sunday, a federal holiday, the Friday after Thanksgiving, and December 24 and 26.</content><note type="source"><p>Source Note: The provisions of this §5.59 adopted to be effective February 19, 2009, 34 TexReg 1100.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scE/s5.60"><num value="5.60">§5.60</num><heading>Operation</heading><content>(a) Agreement. A pass-through agreement may provide for a public or private entity to operate a highway or a railway.(b) Responsibility. To the extent provided in the agreement, a public or private entity shall perform or cause to be performed all work required to operate the highway or railway. This work includes all maintenance and repair required to ensure that the highway or railway functions as intended and meets the performance standards established for maintenance under subsection (c) of this section.(c) Maintenance of highways. In performing work under this section on a highway, the public or private entity shall meet or exceed the most current "Texas Maintenance Assessment Program" minimum rating requirements for non-interstate state highways as established by the commission in its implementation of Government Accounting Standards Board Statement No. 34. If the highway will be tolled, the public or private entity shall meet or exceed the minimum rating requirements for interstate highways.(d) Maintenance of railways. In performing work under this section on a railway, the public or private entity shall meet all standards for safety and maintenance established by the Federal Railroad Administration and the National Transportation Safety Board, including all standards published in 49 CFR Subtitle B, Chapters II and VIII.(e) Alternative standards. A public or private entity may request approval to use alternative maintenance standards. The executive director may approve the use of alternative maintenance standards if the director determines that the alternative standards are sufficient to protect the safety of the public and to protect the integrity of the transportation system.</content><note type="source"><p>Source Note: The provisions of this §5.60 adopted to be effective February 19, 2009, 34 TexReg 1100.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c5/scG"><num value="G">SUBCHAPTER G</num><heading>PRIVATE ACTIVITY BONDS</heading><section identifier="/us/state/tx/tac/t43/p1/c5/scG/s5.81"><num value="5.81">§5.81</num><heading>Purpose</heading><content>(a) Transportation Code, §222.035, requires the Texas Department of Transportation to establish and administer a program for private activity bonds issued for highway facilities or surface freight transfer facilities in this state that includes a process by which the department and the Texas Bond Review Board receive and evaluate applications for issuance of private activity bonds for highway facilities or surface freight transfer facilities prior to submission of a request for private activity bond allocation authorization to the US Department of Transportation (US DOT). This subchapter establishes a process and procedures governing applications for the issuance of private activity bonds for highway or surface freight transfer facility projects by any eligible entity authorized to submit an application to the Texas Transportation Commission.(b) Pursuant to Transportation Code, §222.035, the program established in this subchapter provides a method for processing applications submitted by eligible entities other than the department. The department has established a separate method for processing department applications, which will be given priority due to department projects being priority projects with statewide significance. Applications for the issuance of private activity bonds for highway or surface freight transfer facility projects of the department are exempt from the requirements of this subchapter, and shall be submitted to the US DOT pursuant to procedures established by the department in accordance with applicable law. The department shall provide the Texas Bond Review Board with a copy of an application submitted by the department pursuant to §5.87(a)(1) of this subchapter (relating to Department Action).(c) For other eligible entities authorized to submit an application for the issuance of private activity bonds to the commission, the process and procedures established in this subchapter identify submission requirements and criteria by which the commission will receive and evaluate such applications.</content><note type="source"><p>Source Note: The provisions of this §5.81 adopted to be effective June 14, 2007, 32 TexReg 3371.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scG/s5.82"><num value="5.82">§5.82</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter shall have the following meanings, unless the context clearly indicates otherwise.(1) Board--The Texas Bond Review Board.(2) Commission--The Texas Transportation Commission.(3) Department--The Texas Department of Transportation.(4) Eligible entity--An entity authorized by law to finance an eligible project by the issuance of bonds.(5) Eligible project--A qualified highway or surface freight transfer facility.(6) Executive director--The executive director of the department or designee not below the level of assistant executive director.(7) Qualified highway or surface freight transfer facility--Has the meaning assigned by Section 142(m)(1) of the Internal Revenue Code (26 U.S.C. §142(m)(1)).</content><note type="source"><p>Source Note: The provisions of this §5.82 adopted to be effective June 14, 2007, 32 TexReg 3371.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scG/s5.83"><num value="5.83">§5.83</num><heading>General Policies</heading><content>(a) Consideration of all applications for private activity bond issuance will be in accordance with applicable federal and state law, and applicable rules and regulations.(b) The federal government shall not be obligated by any act of the commission or department under this subchapter.(c) Favorable consideration of any application for private activity bond issuance does not pledge the credit of the state, commission, or department.(d) The Federal Highway Administration, the Comptroller General of the United States, the Texas State Auditor's Office, and the department, or any of their authorized representatives, shall have the right of access to any books, documents, papers, or other records of an applicant approved for an allocation that are pertinent to the application, in order to make audits, examinations, excerpts, and transcripts.</content><note type="source"><p>Source Note: The provisions of this §5.83 adopted to be effective June 14, 2007, 32 TexReg 3371.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scG/s5.84"><num value="5.84">§5.84</num><heading>Department Contact</heading><content>The executive director will designate a contact within the department for the purpose of providing information and assistance to potential applicants. Assistance may include non-binding advice, counsel, and consultation regarding all aspects of a possible application. Any advice, assistance, or aid provided will not constitute a commitment or liability on the part of the department or commission. Potential applicants are encouraged to communicate with the contact at the earliest possible date.</content><note type="source"><p>Source Note: The provisions of this §5.84 adopted to be effective June 14, 2007, 32 TexReg 3371.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scG/s5.85"><num value="5.85">§5.85</num><heading>Application Procedure</heading><content>An eligible entity shall submit an application to the executive director in a form prescribed by the department. An original application and five copies are to be delivered to the executive director. The application must, at a minimum, include the following information:(1) an overview of the project, which shall include a description of the project (location and scope), the total cost of the project, and the amount and proposed use of the requested private activity bond allocation;(2) a copy of the resolution authorizing the issuance of bonds adopted by the eligible entity;(3) financing and development team information, including the proposed issuer of the bonds, the borrower, and any other key participants (with prior experience in projects similar to the project proposed listed);(4) project development schedule, including timelines for major financial milestones (particularly the date for issuance of the private activity bonds) and major construction milestones (permits, environmental, right of way, etc.);(5) estimated project cost information, including a summary of capital costs by category, table of all project costs by category, identification of costs that are eligible for private activity bond funding, and a project expenditure schedule by category type;(6) identification of other (in addition to private activity bonds) project funding sources and a construction period sources and uses table;(7) assumptions used for private activity bond financing (terms, rate, structure, reserves, legal provisions, etc.), as well as other funding sources;(8) cash flow operating pro forma, with a narrative description of and assumptions on traffic and revenue (including supporting documentation) and operating and maintenance costs;(9) the proposed pledge of collateral or security, including the priority of claim, for repayment of the private activity bonds and other funding sources;(10) identification of any financial assistance, guarantees, or credit enhancement;(11) draft bond counsel opinion letter;(12) a description of the need for the project and how the project will reduce congestion, enhance economic opportunity, enhance safety, improve air quality, and increase the value of transportation assets;(13) identification of any revisions or changes to state highway system facilities necessitated by the project;(14) a description of Title 23 or 49, United States Code funding received by the project, including the date (or anticipated date) of receipt and types and amount of financial assistance; and(15) any additional information the department deems necessary to fully consider the application.</content><note type="source"><p>Source Note: The provisions of this §5.85 adopted to be effective June 14, 2007, 32 TexReg 3371.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scG/s5.86"><num value="5.86">§5.86</num><heading>Suspension of Applications</heading><content>If the commission determines that private activity bond allocations from the US DOT are fully committed or other uncertainties exist that warrant suspension of acceptance of applications, the department will publish a notice in the Texas Register providing that applications will no longer be accepted. When conditions change, as determined by the commission, the department will publish a notice in the Texas Register that applications are again being accepted.</content><note type="source"><p>Source Note: The provisions of this §5.86 adopted to be effective June 14, 2007, 32 TexReg 3371.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scG/s5.87"><num value="5.87">§5.87</num><heading>Department Action</heading><content>(a) Notification to Texas Bond Review Board.(1) The department will notify the executive director of the Board of all department applications to the US DOT for the issuance of private activity bonds for highway or surface freight transfer facility projects. The notification will include a copy of the application. The notification will be provided concurrently with the submission of an application to the US DOT.(2) The department will notify the executive director of the Board once an application submitted by an eligible entity under this subchapter is received. Two copies of the application will be forwarded to the executive director of the Board.(b) Review of applications. The department will coordinate its review of applications with the review carried out by the Board. The department and the Board will each review the entire application. After Board action on an application, the department shall be provided with a letter indicating the results of the Board's evaluation of the application. The letter with any Board comments shall be submitted to the department no later than 60 days after the executive director of the Board receives a copy of an application. Applications will be reviewed to assess if:(1) the application submitted is from an eligible entity;(2) the application submitted is for an eligible project and is otherwise eligible under federal law; and(3) the overall financial plan submitted in the application is reasonable and supports the project's financing (including the issuance of the private activity bonds), including an assessment of:(A) whether the proposed project funding sources are sufficient to cover estimated project costs;(B) whether projected revenues are sufficient to make required debt service payments;(C) the sufficiency of projected debt service coverage ratios; and(D) the capability of the proposed financing and development team.(c) Report to commission. Department staff will provide a summary memorandum to the commission on the findings of the application review by the department and the Board. The summary memorandum shall include a copy of the letter indicating the results of the Board's evaluation.</content><note type="source"><p>Source Note: The provisions of this §5.87 adopted to be effective June 14, 2007, 32 TexReg 3371.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scG/s5.88"><num value="5.88">§5.88</num><heading>Commission Action</heading><content>(a) Commission analysis. The commission may consider the advice of department staff and their consultants regarding the sufficiency of the information, the probable accuracy of projections, the anticipated financial condition of the application and the project, and any other information the commission determines appropriate.(b) Criteria. In determining whether to approve an application, the commission will consider:(1) the reasonableness of the financial plan submitted in the application;(2) the transportation need for and anticipated public benefit of the project, including the impact of the project on reducing congestion, enhancing economic opportunity, enhancing safety, improving air quality, and increasing the value of transportation assets;(3) the analysis of the application by the Board; and(4) the ability of the department to construct any improvements to the state highway system required by the project.(c) Notification to applicant, the Board, and the US DOT. The executive director will notify the applicant and the executive director of the Board, in writing, upon completion of the review and analysis and of the determination on whether the application is approved for consideration by the US DOT or disapproved. For approved applications, the executive director will notify the US DOT and forward the application for US DOT consideration. The department shall provide the executive director of the Board with a copy of the US DOT disposition of any application forwarded to the US DOT under this section.</content><note type="source"><p>Source Note: The provisions of this §5.88 adopted to be effective June 14, 2007, 32 TexReg 3371.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c5/scH"><num value="H">SUBCHAPTER H</num><heading>TRANSPORTATION DEVELOPMENT CREDIT PROGRAM</heading><section identifier="/us/state/tx/tac/t43/p1/c5/scH/s5.101"><num value="5.101">§5.101</num><heading>Purpose</heading><content>Under 23 U.S.C. §120, a state may use certain toll revenue expenditures, known as transportation development credits, as credit toward the non-federal share of certain projects. This subchapter specifies the policies and procedures for the implementation of the Transportation Development Credit Program.</content><note type="source"><p>Source Note: The provisions of this §5.101 adopted to be effective October 18, 2012, 37 TexReg 8204.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scH/s5.102"><num value="5.102">§5.102</num><heading>Program Goals</heading><content>The goals of the Transportation Development Credit Program are:(1) to maximize the use of available federal funds, particularly in situations in which federal funds otherwise would be unused because of the inability to provide the non-federal share;(2) to increase the availability of state and local funds that otherwise would be used as the non-federal share, so that:(A) a limited number of priority projects may be funded without federal funds, in an effort to streamline project delivery;(B) a limited number of priority projects that are not eligible for federal funding may be supported from state or local funds; and(C) available federal transit funds may be used that otherwise would be unused because of the inability to provide the non-federal share or to allow funds that would be used as the non-federal share to be used for other transit projects;(3) to support public transit; and(4) to further any other stated goals of the commission or the metropolitan planning organization responsible for awarding credits.</content><note type="source"><p>Source Note: The provisions of this §5.102 adopted to be effective October 18, 2012, 37 TexReg 8204.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scH/s5.103"><num value="5.103">§5.103</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--The Texas Transportation Commission.(2) Department--The Texas Department of Transportation.(3) Eligible entity--Any entity that is eligible for funding under Title 23, U.S.C. or Chapter 53 of Title 49, U.S.C., is in good standing with the department, and has no deficiencies or findings of noncompliance.(4) Eligible project--A highway, rail, transit, bicycle or pedestrian project, as authorized by Title 23, U.S.C., other than an emergency relief program authorized by 23 U.S.C. §125, or Chapter 53 of Title 49, U.S.C.(5) Locally earned credits--Transportation development credits earned from:(A) a project of a regional tollway authority;(B) a project of a county acting under Transportation Code, Chapter 284;(C) a project of a regional mobility authority;(D) an international bridge not owned by the state; and(E) a department project located within the geographic area of a regional tollway authority, a county acting under Transportation Code Chapter 284, or a regional mobility authority that has developed one or more toll projects.(6) Metropolitan planning organization--An organization designated in certain urbanized areas to carry out the transportation planning process as required by 23 U.S.C §134.(7) MPO--A metropolitan planning organization.(8) Transportation development credits--A financing tool approved by the Federal Highway Administration that allows states to use federal obligation authority without the requirement of non-federal matching dollars. Credits are earned when the state, a toll authority, or a private entity funds a capital transportation investment with toll revenues earned on existing toll facilities, excluding revenues needed for debt service, returns to investors or the operation and maintenance of toll facilities.</content><note type="source"><p>Source Note: The provisions of this §5.103 adopted to be effective October 18, 2012, 37 TexReg 8204.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scH/s5.104"><num value="5.104">§5.104</num><heading>Availability of Credits</heading><content>The department will provide information on the availability of transportation development credits as part of the development and periodic update of the Unified Transportation Program.</content><note type="source"><p>Source Note: The provisions of this §5.104 adopted to be effective October 18, 2012, 37 TexReg 8204.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scH/s5.105"><num value="5.105">§5.105</num><heading>Regional Allocation</heading><content>The commission will allocate for award under §5.106 of this subchapter (relating to Award by Metropolitan Planning Organizations) 75 percent of the state's locally earned credits to the MPO in whose planning area they were earned.</content><note type="source"><p>Source Note: The provisions of this §5.105 adopted to be effective October 18, 2012, 37 TexReg 8204.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scH/s5.106"><num value="5.106">§5.106</num><heading>Award by Metropolitan Planning Organizations</heading><content>(a) Each MPO will award to projects within its planning area the locally earned transportation development credits allocated to it under §5.105 of this subchapter (relating to Regional Allocation).(b) The MPO must develop and use a documented process for the receipt and evaluation of applications and the award of credits. This process must also provide opportunities for public review and comment at key decision points.(c) The MPO must consider how the award of credits will expand the availability of funding for transportation projects, based on the goals specified in §5.102 of this subchapter (relating to Program Goals).(d) The MPO will notify each applicant of the results of the selection process.(e) The MPO will incorporate information regarding the award of credits into the Transportation Improvement Program, as appropriate.(f) Not later than December 1st of each year, the MPO will submit a report to the department documenting the management of its credit allocations for the previous fiscal year.(g) A public transit agency located within the planning area of an MPO must first seek the award of credits under this section for an eligible project, unless the credits will serve as the non-federal share for a public transit program that is administered by the department on a statewide basis.</content><note type="source"><p>Source Note: The provisions of this §5.106 adopted to be effective October 18, 2012, 37 TexReg 8204.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scH/s5.107"><num value="5.107">§5.107</num><heading>Award by Commission</heading><content>(a) Process. The commission will award the transportation development credits that are not locally earned credits and the state's locally earned credits that are not allocated to MPOs under §5.105 of this subchapter (relating to Regional Allocation). The commission will make the awards:(1) using the competitive process described in §5.108 of this subchapter (relating to Competitive Process); or(2) in its sole discretion subject to §5.109 of this subchapter (relating to Discretionary Award).(b) Allocation for public transit projects. The commission will allocate for award by the commission an amount of transportation development credits that may be used only to support public transit projects. For each fiscal year the minimum number of credits available under this subsection shall be equal to the lesser of 15 million credits or fifty percent of the total number of credits available for award by the commission on the 1st day of that fiscal year. The allocation under this subsection is not intended to set the maximum number of credits that may ultimately be awarded for public transit projects under this subchapter during that fiscal year.</content><note type="source"><p>Source Note: The provisions of this §5.107 adopted to be effective October 18, 2012, 37 TexReg 8204; amended to be effective June 20, 2013, 38 TexReg 3819.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scH/s5.108"><num value="5.108">§5.108</num><heading>Competitive Process</heading><content>(a) Program call. The department may periodically publish a notice in the Texas Register soliciting proposals for award of transportation development credits under this section. (b) Proposal. An eligible entity may submit a proposal for an eligible project in response to the notice published under subsection (a) of this section. The proposal must include: (1) a detailed description of the project and the need for the project; (2) a detailed explanation of how the award of credits will expand the availability of funding for transportation projects, considering the goals specified in §5.102 of this subchapter (relating to Program Goals); and (3) if the project is located within the planning area of an MPO, evidence that the eligible entity obtained the concurrence of the MPO before the entity submitted the proposal under this section. (c) Additional information. The executive director of the department or the executive director's designee may require supplemental information to clarify the issues described in subsection (b)(1) of this section. (d) Award. The commission will award credits under this section after considering the potential of the project to expand the availability of funding for transportation projects, based on the goals specified in §5.102 of this subchapter.</content><note type="source"><p>Source Note: The provisions of this §5.108 adopted to be effective October 18, 2012, 37 TexReg 8204.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scH/s5.109"><num value="5.109">§5.109</num><heading>Discretionary Award</heading><content>(a) In making an award solely in its discretion, the commission will consider:(1) the potential of a project to expand the availability of funding for transportation projects, based on the goals specified in §5.102 of this subchapter (relating to Program Goals); and(2) if the project is located within the planning boundaries of an MPO, the expressed opinion, if any, of the MPO.(b) The commission may allocate a lump sum of transportation development credits to the department for use on a program or category of projects which support a department goal or initiative. The individual projects, and the exact amount of credits to be used for each project, need not be specified at the time of the allocation. The department will award the credits on behalf of the commission after considering the potential of the project to expand the availability of funding for transportation projects, based on the goals specified in §5.102 of this subchapter.</content><note type="source"><p>Source Note: The provisions of this §5.109 adopted to be effective October 18, 2012, 37 TexReg 8204; amended to be effective June 20, 2013, 38 TexReg 3819.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scH/s5.110"><num value="5.110">§5.110</num><heading>Administration</heading><content>(a) Before an entity that is awarded transportation development credits under this subchapter may use those credits, the entity must enter into a project agreement with the department if the credits are awarded by the commission or with the MPO that awarded the credits.(b) If an entity does not sign a project agreement within two years after the date of the award of the credits, the credits may be awarded to another eligible entity under this subchapter.(c) An entity that enters into a project agreement under this section shall comply with all specified terms and conditions of the agreement.</content><note type="source"><p>Source Note: The provisions of this §5.110 adopted to be effective October 18, 2012, 37 TexReg 8204.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c5/scH/s5.111"><num value="5.111">§5.111</num><heading>Transfer of Credits</heading><content>(a) An MPO may transfer transportation development credits allocated to it under §5.105 of this subchapter (relating to Regional Allocation) to another MPO or to the commission.(b) The transferring MPO shall document each transfer under this section in its annual report required under §5.106 of this subchapter (relating to Award by Metropolitan Planning Organizations).</content><note type="source"><p>Source Note: The provisions of this §5.111 adopted to be effective October 18, 2012, 37 TexReg 8204.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p1/c6"><num value="6">CHAPTER 6</num><heading>STATE INFRASTRUCTURE BANK</heading><subchapter identifier="/us/state/tx/tac/t43/p1/c6/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t43/p1/c6/scA/s6.1"><num value="6.1">§6.1</num><heading>Purpose</heading><content>(a) Transportation Code, Chapter 222, Subchapter D, establishes a state infrastructure bank as an account within the state highway fund, to be administered by the Texas Transportation Commission. Consistent with applicable legal restrictions on its use, the commission shall use money deposited in the bank to:(1) encourage public and private investment in transportation facilities both within and outside of the state highway system, including facilities that contribute to the multimodal and intermodal transportation capabilities of the state; and(2) develop financing techniques designed to:(A) expand the availability of funding for transportation projects and to reduce direct state costs;(B) maximize private and local participation in financing projects; and(C) improve the efficiency of the state transportation system.(b) This chapter specifies the procedures and conditions by which an eligible entity may apply for and obtain financial assistance from the bank.</content><note type="source"><p>Source Note: The provisions of this §6.1 adopted to be effective January 8, 1998, 23 TexReg 151; amended to be effective January 5, 2006, 30 TexReg 8990; amended to be effective October 21, 2010, 35 TexReg 9361.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c6/scA/s6.2"><num value="6.2">§6.2</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Bank--The state infrastructure bank account in the state highway fund.(2) Commission--The Texas Transportation Commission.(3) Construction--A term as defined by Title 23, United States Code, §101, and which includes preliminary studies required to determine the feasibility of an eligible project.(4) Department--The Texas Department of Transportation.(5) Design manual--The latest editions of and successors to all design manuals available from the department, including the:(A) Roadway Design Manual;(B) Pavement Design Manual;(C) Bridge Design Manual;(D) Bridge Project Development Manual;(E) Bridge Geotechnical Manual;(F) Hydraulic Design Manual;(G) Texas Manual on Uniform Traffic Control Devices;(H) Project Development Process Manual;(I) Standard Highway Sign Designs for Texas; and(J) Traffic Control Standard Sheets booklet of the traffic operations division.(6) Environmental Permits, Issues, and Commitments (EPIC)--Any permit, issue, coordination, commitment, or mitigation obtained to satisfy social, economic, or environmental impacts of a project, including sole source aquifer coordination, wetland permits, stormwater permits, traffic noise abatement, threatened or endangered species coordination, archeological permits, and any mitigation or other commitment associated with any of those issues.(7) Executive director--The executive director of the Texas Department of Transportation, or his or her designee.(8) Expected financing period--The time taken to fully pay any and all liabilities incurred to finance an eligible project, including any period during which payments are deferred and all extensions of time through refunding or restructuring.(9) Federal Act--Section 350 of the National Highway System Designation Act of 1995 (Public Law Number 104-59) and all rules and regulations adopted under the Act.(10) Federal-aid highway--A term as defined in Title 23, United States Code, §101.(11) Financial assistance--A term which may include, as applicable:(A) extending credit by direct loan;(B) providing credit enhancements;(C) serving as a capital reserve for bond or debt instrument funding;(D) subsidizing interest rates;(E) insuring the issuance of a letter of credit or credit instrument;(F) financing a purchase or lease agreement in connection with a transit project;(G) providing security for bonds and other debt instruments; or(H) providing methods of leveraging money that have been approved by the United States Secretary of Transportation and which relate to the project for which the assistance is provided.(12) Investment grade rating--Creditworthiness sufficient to qualify a debt as eligible for commercial bank investment under regulations issued by the Comptroller of the Currency. For bonds, these debts are limited to ratings of "AAA," "AA," "A," and "BBB" by Standard and Poor's Rating Services or corresponding ratings used by other rating services.(13) Metropolitan planning organization (MPO)--An organization designated in certain urbanized areas to carry out the transportation planning process as required by Title 23, United States Code, §134.(14) Secondary Funds--A term which includes:(A) the repayment, with funds other than federal funds, of a loan, including interest, principal, fees, or charges, or other assistance that is provided with money deposited to the credit of the bank; and(B) the investment income generated by secondary funds deposited to the credit of the bank.(15) State Act--Transportation Code, Chapter 222, Subchapter D, §222.071 et.seq., relating to a State Infrastructure Bank.(16) Transit project--Capital expenditures eligible for funding under Title 49, United States Code, §§5307, 5309, and 5311.</content><note type="source"><p>Source Note: The provisions of this §6.2 adopted to be effective January 8, 1998, 23 TexReg 151; amended to be effective January 5, 2006, 30 TexReg 8990; amended to be effective October 21, 2010, 35 TexReg 9361; amended to be effective June 21, 2012, 37 TexReg 4433; amended to be effective October 16, 2024, 49 TexReg 8402.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c6/scA/s6.3"><num value="6.3">§6.3</num><heading>General Policies</heading><content>(a) All actions of the bank will be in accordance with applicable federal and state law, and applicable rules and regulations.(b) Grant financing will not be considered.(c) The commission will ensure that the bank maintains on a continuing basis an investment grade rating on its debt issuances or has a sufficient level of bond or debt financing instrument insurance to maintain the viability of the bank.(d) The Federal Highway Administration, the Federal Transit Administration, and the Comptroller General of the United States, each if applicable, and the Texas State Auditor's Office, and the department, or any of their authorized representatives, shall have the right of access to any books, documents, papers, or other records of the applicant which are pertinent to any agreement, in order to make audits, examinations, excerpts, and transcripts.(e) Federal funds received by the state under the federal act, matching state funds in an amount required by that act, proceeds from bonds issued under the state act, secondary funds, other state funds deposited into the bank by order of the commission, and other money received by the state that is eligible for deposit in the bank, may be deposited into the bank.(f) Financial assistance from the bank may be used to reimburse eligible project costs incurred before the execution of the financial assistance agreement evidencing the financial assistance provided that:(1) a request for reimbursement of eligible project costs must be submitted to the department for review;(2) eligible project costs approved for reimbursement will not be disbursed until after the financial assistance agreement evidencing the financial assistance is executed; and(3) costs that were incurred more than 12 months prior to the date of execution of the financial assistance agreement evidencing the financial assistance are not eligible for reimbursement.(g) If permissible under state and federal law, financial assistance from the bank may be used to pay for consultant costs, if any, incurred by the applicant in the preparation of the application for the financial assistance or preparation of the financial assistance agreement.(h) Financial assistance from the bank may not be used to pay for costs incurred for an application that did not result in the disbursement of financial assistance to the applicant.(i) Applicants requesting financial assistance from the bank for a toll facility may also be required to comply with Chapter 27, Subchapter E of this title (relating to Financial Assistance for Toll Facilities). If a provision of Chapter 27, Subchapter E of this title conflicts with this chapter, this chapter controls to the extent of the conflict.</content><note type="source"><p>Source Note: The provisions of this §6.3 adopted to be effective January 8, 1998, 23 TexReg 151; amended to be effective January 5, 2006, 30 TexReg 8990; amended to be effective October 21, 2010, 35 TexReg 9361; amended to be effective June 21, 2012, 37 TexReg 4433; amended to be effective October 16, 2024, 49 TexReg 8402.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c6/scA/s6.4"><num value="6.4">§6.4</num><heading>Separate Subaccounts</heading><content>(a) The bank consists of the separate subaccounts specified in this section.(b) The bank contains a highway subaccount and a transit subaccount, each of which may be capitalized with federal funds or a combination of state and federal funds.(c) The commission may create additional subaccounts capitalized with state funds only. Additional subaccounts capitalized with state funds only are not subject to the federal act.</content><note type="source"><p>Source Note: The provisions of this §6.4 adopted to be effective October 21, 2010, 35 TexReg 9361; amended to be effective June 21, 2012, 37 TexReg 4433; amended to be effective October 16, 2024, 49 TexReg 8402.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c6/scB"><num value="B">SUBCHAPTER B</num><heading>ELIGIBILITY</heading><section identifier="/us/state/tx/tac/t43/p1/c6/scB/s6.11"><num value="6.11">§6.11</num><heading>Eligible Entities</heading><content>As provided by this chapter, a public or private entity authorized by law to construct, maintain, or finance an eligible project is eligible to apply for financial assistance under Subchapter C of this chapter (relating to Procedures).</content><note type="source"><p>Source Note: The provisions of this §6.11 adopted to be effective January 8, 1998, 23 TexReg 151; amended to be effective October 21, 2010, 35 TexReg 9361.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c6/scB/s6.12"><num value="6.12">§6.12</num><heading>Eligible Projects</heading><content>(a) The following public or private projects are eligible for financial assistance:(1) construction of a federal-aid highway, including required preliminary studies;(2) a transit project, but only to the extent of funds in the bank that lawfully may be expended for a transit project; or(3) for the expenditure of secondary funds, a project that is eligible for assistance under Title 23 or Title 49, United States Code.(b) Financial assistance to a private entity shall be limited to an eligible project that:(1) provides transportation services or facilities that provide a demonstrated public benefit; or(2) is constructed or operated in cooperation with a state agency or political subdivision in accordance with an agreement between that state agency or political subdivision and a private entity.(c) Financial assistance to a public or private entity shall be limited, as applicable, to an eligible project that is consistent with the transportation plan developed by the metropolitan planning organization.</content><note type="source"><p>Source Note: The provisions of this §6.12 adopted to be effective January 8, 1998, 23 TexReg 151; amended to be effective January 5, 2006, 30 TexReg 8990; amended to be effective October 21, 2010, 35 TexReg 9361; amended to be effective June 21, 2012, 37 TexReg 4433; amended to be effective October 16, 2024, 49 TexReg 8402.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c6/scC"><num value="C">SUBCHAPTER C</num><heading>PROCEDURES</heading><section identifier="/us/state/tx/tac/t43/p1/c6/scC/s6.21"><num value="6.21">§6.21</num><heading>Department Contact</heading><content>The department's Chief Financial Officer or that officer's designee is the contact within the department for the purpose of providing information and assistance to potential applicants. Assistance may include non-binding advice, counsel, and consultation regarding all aspects of a possible eligible project. If the executive director determines that the project is otherwise eligible for assistance, that the department is authorized by state law to provide assistance, and that department resources are available, the department may provide engineering and other technical assistance to aid potential applicants in developing an application. Any advice, assistance, or aid provided will not constitute a commitment or liability on the part of the department or the commission. Potential applicants are encouraged to communicate with the contact at the earliest possible date.</content><note type="source"><p>Source Note: The provisions of this §6.21 adopted to be effective January 8, 1998, 23 TexReg 151; amended to be effective October 21, 2010, 35 TexReg 9361; amended to be effective June 21, 2012, 37 TexReg 4433.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c6/scC/s6.22"><num value="6.22">§6.22</num><heading>Requested Financial Assistance</heading><content>An applicant may request any form of financial assistance authorized by this chapter, but the form of financial assistance provided from money from the state highway fund that is dedicated under state law, and potentially other sources, is limited as provided by this chapter and other law.</content><note type="source"><p>Source Note: The provisions of this §6.22 adopted to be effective January 8, 1998, 23 TexReg 151; amended to be effective October 21, 2010, 35 TexReg 9361; amended to be effective June 21, 2012, 37 TexReg 4433.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c6/scC/s6.23"><num value="6.23">§6.23</num><heading>Application Procedure</heading><content>(a) Basic application. An eligible entity must submit an application to the executive director in a form prescribed by the department. The application must be accompanied by:(1) an overview of the project, including a description of the project, the total estimated cost of the project, and the proposed use of the requested financial assistance;(2) the amount of money required to supply the requested assistance, including any reserve funds that must be established and held by the bank for the applicant's benefit, but that may not be expended from the bank;(3) any proposed pledge of collateral or security and any prior claim to those items;(4) a description of the need for the project and its potential effect on traffic congestion and mobility;(5) the most recent offering document for any outstanding debt of the applicant payable from the revenue proposed to be used to repay the financial assistance, along with the financial documents related to that debt, including any master and supplemental resolutions, indentures of trust, and authorizing resolutions, ordinances, or orders, unless previously provided, or if not applicable, other evidence of creditworthiness, provided that the entity may provide any of the information described by this paragraph electronically;(6) official written approval of the project by the governing body of each entity that may become liable for repayment of any financial assistance;(7) a binding commitment that the environmental consequences of the proposed project will be fully considered, and that the proposed project will comply with all applicable local, state, and federal environmental laws, regulations, and requirements;(8) for public roadway projects, a preliminary design study, including:(A) an initial route and potential alignments; and(B) revisions or changes to state highway system facilities necessitated by the project; and(9) for transit projects, a preliminary scope study, including preliminary layouts, architectural drawings, equipment specifications, and other information necessary to describe the project fully and to comply with all requirements of the Federal Transit Administration.(b) Supplemental information and data. Except as provided in subsection (c) of this section, the applicant shall submit the supplemental information and data required by this subsection.(1) Financial feasibility study. The applicant shall submit a financial feasibility study that includes:(A) a project construction or asset acquisition schedule identifying the timing, amount, and source of all funds required;(B) an analysis of the expected financing period of the project;(C) a pro forma annual cash flow analysis for the expected financing period of the project showing:(i) anticipated revenues to be used in repayment by source, including a preliminary traffic and revenue study, acceptable to the executive director, for toll roads;(ii) anticipated disbursements for preliminary studies and engineering, construction, EPIC, right of way acquisition, utility adjustments, operations, and maintenance;(iii) funds used to meet the requirements of any sinking funds, reserve funds, and amortization payments; and(iv) loan (debt service) coverage ratios and associated cash flow surpluses or deficits;(D) a description of the methods used in preparing the financial feasibility study, the assumptions contained in the study, and persons responsible for the preparation of the study;(E) the length of time the amounts will be outstanding or obligated;(F) the anticipated interest rates applicable during the term of the financial assistance;(G) any interest rate subsidies requested by:(i) an economically disadvantaged county, as defined in Transportation Code, §222.053;(ii) a city located wholly or partially within an economically disadvantaged county; or(iii) another public entity within whose boundary is at least one entire disadvantaged county;(H) the expected savings to the applicant resulting from the assistance; and(I) a description of how the requested assistance will:(i) expand the availability of funding for transportation projects;(ii) reduce direct state costs;(iii) maximize private and local participation in financing projects;(iv) improve the efficiency of the state's transportation systems; and(v) accelerate the project's transportation benefits over conventional financing methods.(2) Other financial information. The applicant shall submit the following information, if the information is not provided with the feasibility study:(A) the applicant's most recent annual budget;(B) the five most recent comprehensive financial reports or audits of the applicant;(C) the current capital planning document that addresses uses of the revenue proposed to be used for repayment of the financial assistance; and(D) the most recent rating agency report on the credit of the applicant, if any.(3) Project impacts. The applicant shall submit:(A) information explaining how the project will be consistent with the metropolitan transportation plan developed by an MPO, if appropriate; and(B) an explanation of the status of obtaining an environmental approval under Chapter 2 of this title (relating to Environmental Review of Transportation Projects) and of obtaining any other required environmental permits.(c) Waiver of required information or data. The executive director may waive submission of any individual item of information or data required by this section under either of the following circumstances:(1) the information or data is not relevant to the project, applicant, or financial assistance requested (in determining the relevance of supplemental information and data, the executive director will consider the complexity and size of the project, the type of infrastructure or asset involved, the type and complexity of financial assistance requested, the complexity of the project's and the applicant's financial status, and how soon transportation benefits will begin); or(2) the department already possesses information or data in a format that can be substituted for the required information or data.(d) Requirement of additional information. The executive director may require the applicant to submit explanations and expansions of information or data required by this section. In determining when additional relevant explanations and expansions of information or data will be required, the executive director will consider the complexity and size of the project, the type of infrastructure or asset involved, the type, complexity, and amount of financial assistance requested, and the complexity of the project's and the applicant's financial status.</content><note type="source"><p>Source Note: The provisions of this §6.23 adopted to be effective January 8, 1998, 23 TexReg 151; amended to be effective September 19, 2002, 27 TexReg 8775; amended to be effective October 21, 2010, 35 TexReg 9361; amended to be effective June 21, 2012, 37 TexReg 4433; amended to be effective October 16, 2024, 49 TexReg 8402.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c6/scD"><num value="D">SUBCHAPTER D</num><heading>DEPARTMENT AND COMMISSION ACTION</heading><section identifier="/us/state/tx/tac/t43/p1/c6/scD/s6.31"><num value="6.31">§6.31</num><heading>Department Action</heading><content>(a) Review of application. The department will review an application submitted under Subchapter C of this chapter (relating to Procedures) and advise the applicant of any required information or data that is missing. When the application is complete, the department will so notify the applicant.(b) Analysis. The executive director will perform an analysis of the application and prepare findings and recommendations for the commission as soon as practicable in accordance with this chapter and commission policies.(c) Submission to commission. The executive director will submit the application together with findings and recommendations to the commission for consideration as soon as practicable in accordance with this chapter and commission policies.(d) Notice. The executive director shall develop guidelines and post information on the department's website regarding the amount of available funds, any limitations on the amount of funds available for various applicants or types of projects, application deadlines, and any other information that the executive director considers necessary for the administration of the bank in accordance with this chapter and the commission's direction to assure that bank funds will be available as needs arise for financial assistance to various applicants for various types of projects.</content><note type="source"><p>Source Note: The provisions of this §6.31 adopted to be effective January 8, 1998, 23 TexReg 151; amended to be effective October 21, 2010, 35 TexReg 9361; amended to be effective June 21, 2012, 37 TexReg 4433; amended to be effective July 20, 2016, 41 TexReg 5245.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c6/scD/s6.32"><num value="6.32">§6.32</num><heading>Commission Action</heading><content>(a) Commission analysis. The commission will consider all relevant information in the application together with the executive director's findings and recommendations.(b) Consideration of applications for preliminary and final approval.(1) Applications for financial assistance in the amount of $10 million or less will be considered by the commission for final approval without going through the preliminary approval process prescribed in subsection (c) of this section if the financial assistance is to be used for a project for which the department has primary responsibility, including for the payment of:(A) local participation in a highway improvement project under Transportation Code, Chapter 222, Subchapter C, and Chapter 15, Subchapter E of this title; or(B) the relocation of utilities necessary for a project under Transportation Code, Chapter 203, Subchapter E, and Chapter 21, Subchapter P of this title.(2) Applications for financial assistance that are not subject to paragraph (1) of this subsection must be submitted to the commission for consideration for preliminary and final approval separately unless, for a particular application, the commission waives the preliminary approval requirement for that application. In determining whether to waive the preliminary approval requirement for an application, the commission may consider the financial condition of the bank, the complexity and size of the project, the type of infrastructure or asset involved, the type and complexity of the financial assistance requested, the financial status of the applicant, the financial feasibility of the project, and the need to expedite the financing of the project.(3) Applications that are submitted to the commission for final approval without first being considered for preliminary approval must meet all the requirements and are subject to all the conditions applicable either to preliminary or final approval of financial assistance, except that the negotiation process under subsection (c)(3) of this section may be completed after final approval.(c) Prioritization and preliminary approval. For applications that must be considered for preliminary approval, the executive director will establish deadlines for the submittal of complete applications in accordance with commission policies. The executive director may suspend a deadline if the executive director determines that the suspension is necessary. As soon as practicable after each application deadline, the executive director shall present all complete applications submitted by the deadline with the executive director's analysis of the application and the executive director's findings and recommendations, including recommendations on prioritizing the applications.(1) Considerations. The executive director's analysis and recommendations to the commission must demonstrate the executive director's consideration of:(A) whether the project is on the state highway system;(B) the transportation need for and anticipated public benefit of the project;(C) the present and projected financial condition of the bank;(D) conformity with the purposes of the bank;(E) evidence of local public support;(F) rapidity of loan repayment;(G) plan of finance;(H) comparison of the proposed financial assistance to other funding alternatives;(I) whether the project is on the department's 24-month letting schedule; and(J) any other relevant consideration.(2) Project requirements. The commission may grant preliminary approval of an application for financial assistance from the bank if it finds that:(A) the project is consistent with the metropolitan transportation plan developed by an MPO, if appropriate;(B) the project will improve the efficiency of the state's transportation systems;(C) the project will expand the availability of funding for transportation projects or reduce direct state costs; and(D) the application shows that the project and the applicant are likely to have sufficient revenues to assure repayment of the financial assistance.(3) Authorized actions. By granting preliminary approval, the commission authorizes the executive director to negotiate:(A) the project's limits, scope, definition, design, and any other factors that may affect the financing of the project;(B) the amount, type, and timing of disbursements of financial assistance;(C) the interest rates, including subsidies;(D) the fees;(E) the charges;(F) the repayment schedules;(G) the term to maturity of any financial assistance;(H) the collateral securing the financial assistance;(I) the appropriate covenants applicable to the financial assistance;(J) the default provisions; and(K) all other provisions necessary to complete an agreement under Subchapter E of this chapter (relating to Financial Assistance Agreements).(d) Environmental review. If Chapter 2 of this title applies to the project, as provided under §2.3 of this title (relating to Applicability; Exceptions), construction of the project, other than construction activities described in Title 23, United States Code, §101(a)(4)(A), may not begin before an environmental review under Chapter 2 is completed. The applicant will be responsible for providing any studies, documentation, and information needed to complete the environmental review unless the department agrees to provide those studies, documentation, and information.(e) Final approval. After preliminary approval under subsection (c) of this section, if required, and the completion of negotiations under subsection (c)(3) of this section unless excepted under subsection (b)(3) of this section, the commission may grant final approval if it determines that providing financial assistance will protect the public's safety and prudently provide for the protection of public funds, while furthering the purposes of this chapter.(f) Postponement. The commission may postpone final approval if it finds that the current or projected financial condition of the bank warrants this action.(g) Contingencies. The commission may make its preliminary or final approval contingent on further actions by the applicant.(h) Order of approval or disapproval. Approval or disapproval of financial assistance, whether preliminary or final, will be by written order of the commission and will include the rationale, findings, and conclusions on which approval or disapproval is based. Approval or disapproval will be in the sole discretion of the commission, and nothing in this subchapter is intended to require approval of any financial assistance.</content><note type="source"><p>Source Note: The provisions of this §6.32 adopted to be effective January 8, 1998, 23 TexReg 151; amended to be effective October 18, 1998, 23 TexReg 10501; amended to be effective September 19, 2002, 27 TexReg 8775; amended to be effective October 21, 2010, 35 TexReg 9361; amended to be effective June 21, 2012, 37 TexReg 4433; amended to be effective July 20, 2016, 41 TexReg 5245; amended to be effective October 16, 2024, 49 TexReg 8402.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c6/scE"><num value="E">SUBCHAPTER E</num><heading>FINANCIAL ASSISTANCE AGREEMENTS</heading><section identifier="/us/state/tx/tac/t43/p1/c6/scE/s6.41"><num value="6.41">§6.41</num><heading>Financial Assistance Agreements</heading><content>(a) Form of agreement. An agreement evidencing a loan or other financial assistance may be in the form of a contract or similar document, or may be in the form of a bond, note, or other obligation issued by the applicant.(b) Negotiation of terms. The executive director will negotiate the terms of agreements deemed necessary to comply with any requirements of preliminary approval, to protect the public's safety, and to prudently provide for the protection of public funds while furthering the purposes of this chapter. These agreements shall include, but not be limited to, terms provided for in this subchapter, as applicable to a particular project.(c) Disbursement of funds. If §6.32(d) of this chapter (relating to Commission Action) applies to construction of the project, funds will not be disbursed for that construction unless it is authorized to begin under that subsection.(d) Initial repayment date. Except as provided by this subsection , repayment of any financial assistance from the bank will begin within 18 months after the date of the initial funding of the financial assistance. The commission may defer the initial repayment of financial assistance to a specified date that is not later than the fifth anniversary of the date of the initial funding of the financial assistance. The term for repaying any financial assistance will not exceed 30 years after the date of the first scheduled payment.(e) Payment dates. Interest and principal shall be paid on the dates specified in the financial assistance agreement. If a date for payment is not a business day the payment shall be made on the next following business day.(f) Prepayments. Principal and interest may be prepaid without penalty on any date or dates as provided in the financial assistance agreement.(g) Assurances. The department will provide in a financial assistance agreement assurances that are reasonably and customarily required by the applicant and that are necessary for obtaining financing for, developing, or operating a particular project, if, in the department's reasonable judgment, the assurances are consistent with the agreement.</content><note type="source"><p>Source Note: The provisions of this §6.41 adopted to be effective January 8, 1998, 23 TexReg 151; amended to be effective October 21, 2010, 35 TexReg 9361; amended to be effective June 21, 2012, 37 TexReg 4433; amended to be effective October 16, 2024, 49 TexReg 8402.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c6/scE/s6.42"><num value="6.42">§6.42</num><heading>Performance of Work</heading><content>(a) Work performed by the department. The department and the applicant may agree that the department will, consistent with state law, provide all or part of the work connected with the project in the department's normal course of business. For work performed by the department, the following provisions will apply.(1) The department will account for all costs of the project in the normal course of business in accordance with applicable law.(2) The department's actions and decisions regarding the project shall not be contestable by the applicant, except as expressly provided in the financial assistance agreement.(3) The applicant shall provide the department, and if applicable, the Federal Highway Administration, the Federal Transit Administration, or their authorized representatives , with right of entry or access to all properties or locations necessary to perform activities required to execute the work, inspect the work, or aid otherwise in the prompt pursuit of the work.(b) Work performed by applicant. For work performed by the applicant, the following provisions apply.(1) The applicant shall comply with applicable state and federal law, and with all terms and conditions of an applicable agreement. If approval or concurrence of the Federal Highway Administration, the Federal Transit Administration, or any other federal agency is required, the department may require that the applicant seek that approval or concurrence through the department.(2) At the applicant's cost, the applicant shall:(A) in a format prescribed by the department, submit an annual report to the department listing project expenditures, providing an accounting of financial assistance proceeds, and providing any other information requested by the department;(B) on request of the department and at the applicant's cost, provide a report containing the same or similar information as required in the annual report under subparagraph (A) of this paragraph or information relating to project expenditures that the applicant is required to provide to another local, state, or federal agency;(C) hold all project records, accounts, and supporting documents open for state or federal audits for the retention period described in paragraph (5) of this subsection; and(D) forward to the department, upon completion of the project, all project files and reports as requested by the department.(3) Unless the department in writing provides a shorter period, the applicant shall retain all original project files, records, accounts, and supporting documents until the later of the date that:(A) project is completed;(B) all financial assistance under this chapter has been repaid, if applicable; or(C) the retention period required by applicable federal and state law ends.(4) If a project will become a part of the state highway system and the department will assume jurisdiction of the project, the applicant shall ensure that the project, including all its components and appurtenances, is maintained in accordance with §6.44 of this subchapter (relating to Maintenance). The applicant shall transfer all design data, surveys, construction plans, right of way maps, utility permits, and agreements with other entities relating to the project to the department when the department assumes jurisdiction of the project.</content><note type="source"><p>Source Note: The provisions of this §6.42 adopted to be effective January 8, 1998, 23 TexReg 151; amended to be effective January 5, 2006, 30 TexReg 8990; amended to be effective March 20, 2008, 33 TexReg 2321; amended to be effective October 21, 2010, 35 TexReg 9361; amended to be effective June 21, 2012, 37 TexReg 4433; amended to be effective October 16, 2024, 49 TexReg 8402.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c6/scE/s6.43"><num value="6.43">§6.43</num><heading>Design, Construction, and Procurement Standards</heading><content>(a) Plans and specifications.(1) For state highway improvement projects, plans and specifications must be in compliance with the department's applicable design manuals and the latest version of the department's Standard Specifications for Construction of Highways, Streets, And Bridges.(2) For projects not on the state highway system, plans and specifications must be, at a minimum, in compliance with applicable American Association of State Highway and Transportation Officials (AASHTO) design standards.(b) Engineer approval. All construction plans shall be signed and dated by a professional engineer registered in Texas.(c) Change orders. The department may require standards and procedures to be used in making any design change orders.(d) Transit projects. Transit projects must comply with all requirements established under §§31.39 - 31.49 of this title (relating to Program Administration).</content><note type="source"><p>Source Note: The provisions of this §6.43 adopted to be effective January 8, 1998, 23 TexReg 151; amended to be effective October 21, 2010, 35 TexReg 9361; amended to be effective June 21, 2012, 37 TexReg 4433; amended to be effective October 16, 2024, 49 TexReg 8402.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c6/scE/s6.44"><num value="6.44">§6.44</num><heading>Maintenance</heading><content>(a) The department may require minimum specific standards and procedures to be used in maintenance of the project during the term of financial assistance.(b) All structures defined as a bridge by the National Bridge Inspection Standards shall be maintained in compliance with applicable state and federal requirements. The department will perform safety inspections of these structures in accordance with federal requirements.(c) In establishing the standards and procedures described in subsection (a) of this section, if any, or in considering exceptions to the standards and inspection procedures described in subsection (b) of this section, the department shall consider:(1) the applicant's past experience with similar projects (if applicable); and(2) whether the project is intended to become part of the state highway system or otherwise to be subject to the jurisdiction of the department.</content><note type="source"><p>Source Note: The provisions of this §6.44 adopted to be effective June 21, 2012, 37 TexReg 4433.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c6/scE/s6.45"><num value="6.45">§6.45</num><heading>Financial and Credit Requirements</heading><content>(a) An applicant receiving financial assistance under this chapter shall:(1) repay the financial assistance at the specified interest rate over a specified period as provided in the financial assistance agreement;(2) submit to the department within 30 days of the date of their adoption the annual operating and capital budgets adopted by the applicant each fiscal year under a trust agreement or indenture or equivalent document securing bonds issued for a project, and any amended or supplemental operating or capital budget, approved by the governing body of the applicant and certified as correct by its chief administrative officer or chief financial officer;(3) maintain its books and records in accordance with generally accepted accounting principles in the United States, as promulgated by the Governmental Accounting Standards Board, the Financial Accounting Standards Board, or pursuant to applicable federal or state laws or regulations, and with all other applicable federal and state requirements, subject to any exceptions required by existing bond indentures of the applicant that are applicable to the project, and any exceptions the applicant has historically implemented that have been acceptable to the public debt markets;(4) at the applicant's cost, have a full audit of its books and records that is performed annually by an independent certified public accountant selected by the applicant and reasonably acceptable to the department and that is conducted in accordance with generally accepted auditing standards promulgated by the Financial Accounting Standards Board, the Governmental Accounting Standards Board, or the standards of the Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non-profit Organizations, as applicable, and with all other applicable federal and state requirements;(5) retain, or cause the auditor to retain, all work papers and reports until the fourth anniversary of the date of the audit report, unless the department notifies the applicant in writing of a later date for the end of the retention period and during the retention period, shall make audit work papers available to the department within 30 days of the date that the department requests those papers;(6) for all debt payable from the same revenue that is to repay the financial assistance, within 30 days after the date of submission to the Electronic Municipal Market Access System (EMMA) of the Municipal Securities Rulemaking Board of annual financial information and notices of material events required to be disclosed under Rule 15c2-12 of the United States Securities and Exchange Commission (17 C.F.R. §240.15c2-12), submit the information or notice to the department or advise the department in writing that the submission to EMMA has been made and provide in that writing the associated CUSIP number; and(7) abide by provisions governing default.(b) The applicant shall cause the auditor to provide a full copy of the audit report required under subsection (a)(4) of this section and any other management letters or auditor's comments directly to the department within a reasonable period after they have been provided to the governing body of the applicant.</content><note type="source"><p>Source Note: The provisions of this §6.45 adopted to be effective June 21, 2012, 37 TexReg 4433; amended to be effective October 16, 2024, 49 TexReg 8402.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p1/c7"><num value="7">CHAPTER 7</num><heading>RAIL FACILITIES</heading><subchapter identifier="/us/state/tx/tac/t43/p1/c7/scB"><num value="B">SUBCHAPTER B</num><heading>CONTRACTS</heading><section identifier="/us/state/tx/tac/t43/p1/c7/scB/s7.10"><num value="7.10">§7.10</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--The Texas Transportation Commission.(2) Department--The Texas Department of Transportation.(3) Executive Director--The executive director of the department or the executive director's designee not below the level of division director.(4) Public entity--A governmental entity, including a political subdivision of this state, that is authorized by law to operate rail facilities.(5) Rail facility--Real or personal property, or any interest in that property, that is determined to be necessary or convenient for the provision of a freight or passenger rail facility or system, including commuter rail, intercity rail, and high-speed rail.</content><note type="source"><p>Source Note: The provisions of this §7.10 adopted to be effective January 5, 2006, 30 TexReg 8991; amended to be effective April 1, 2011, 36 TexReg 1690.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scB/s7.11"><num value="7.11">§7.11</num><heading>Comprehensive Development Agreements</heading><content>(a) To the extent and in the manner that the department may enter into a comprehensive development agreement with respect to a turnpike or toll project under Chapter 27, Subchapter A of this title (relating to Comprehensive Development Agreements), the department may enter into a comprehensive development agreement for the financing, design, acquisition, construction, maintenance, or operation of a rail facility or system.(b) The department shall utilize the processes and procedures provided in Chapter 27, Subchapter A of this title when considering the use of a comprehensive development agreement, including when:(1) requesting qualifications and proposals or accepting unsolicited proposals for the financing, design, acquisition, construction, maintenance, or operation of a rail facility or system;(2) evaluating and ranking submissions and proposals; and(3) selecting the proposal that provides the best value to the department.(c) The department may combine in a comprehensive development agreement a rail facility or system and a turnpike or toll project as defined in Transportation Code, §201.001.(d) In this section, "rail facility" and "system" have the meanings assigned in Transportation Code, Chapter 91.</content><note type="source"><p>Source Note: The provisions of this §7.11 adopted to be effective November 17, 2005, 30 TexReg 7496; amended to be effective April 1, 2011, 36 TexReg 1690.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scB/s7.12"><num value="7.12">§7.12</num><heading>Construction and Maintenance Contracts</heading><content>(a) The department shall comply with the policies and procedures prescribed in Chapter 9, Subchapter B of this title (relating to Highway Improvement Contracts) in the qualification of bidders, issuance of proposals and receipt of bids, and award and execution of a contract for the construction or maintenance of a rail facility.(b) The name and address of the individual to whom bids shall be submitted will be provided when a project is advertised. That individual will be responsible for opening and reading bids in accordance with the policies and procedures in §9.15 of this title (relating to Acceptance, Rejection, and Reading of Bids).(c) Bidder responsibility requirements shall be provided by the department with the proposal form issued for a project.(d) A construction or maintenance contract may provide for partial payments and retainage in the amounts provided in the contract.(e) Architectural, engineering, or surveying services that are needed for the construction or maintenance of a rail facility shall be acquired in accordance with the requirements of Government Code, Chapter 2254, and Chapter 9, Subchapter C of this title (relating to Contracting for Architectural, Engineering, and Surveying Services), except that the administrative qualification requirements of §9.42 of this title (relating to Administrative Qualification) shall not apply if the department does not have a precertification category for the work to be performed.</content><note type="source"><p>Source Note: The provisions of this §7.12 adopted to be effective January 5, 2006, 30 TexReg 8991; amended to be effective April 1, 2011, 36 TexReg 1690.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scB/s7.13"><num value="7.13">§7.13</num><heading>Contracts with Rail Operators and Leases</heading><content>(a) For any rail facility acquired or constructed by the department, the department may contract with a public or private entity to operate the facility or lease it. (b) Except as provided in this section, the department will use a competitive process to select the operator or lessee. For the selection of a rail operator, the department will select the lowest responsible bidder that complies with the department's criteria. For the selection of a lessee, the department will select the bidder whose proposal offers the apparent best value to the department. The department will publish a notice in the Texas Register and in a newspaper of general circulation in the area in which the rail facility is located, requesting proposals to operate or to lease the facility. In evaluating proposals submitted in response to a request under this subsection, the department will select the bidder considering the: (1) qualifications and capability of the proposer to operate the rail facility; (2) proposer's experience in constructing and maintaining rail facilities; (3) financial capability of the proposer to operate and maintain the rail facility; (4) relative effectiveness of the proposer's management team and staff; (5) extent to which the proposal minimizes the department's financial obligations in acquiring or maintaining the rail facility; (6) if within the scope of the published proposal, proposer's plan for maintaining and improving equipment, trackwork, and right of way, including the planned schedule for carrying out the maintenance and improvements and planned funding sources; and (7) if within the scope of the published proposal, proposer's planned operating rules and procedures for servicing markets served by the rail facility, including plans and proposed schedules for improving service and adding additional markets. (c) The department will rank all proposals submitted in response to a request under subsection (b) of this section using the criteria set out in the request for proposals. The criteria will, at a minimum, include the factors listed in subsection (b) of this section. The department will negotiate an agreement with the highest ranked proposer. (d) If an agreement satisfactory to the department cannot be negotiated with the proposer, the department will formally end negotiations with that proposer. The department may reject all proposals or proceed to the next highest ranked proposal and attempt to negotiate an agreement with that proposer. (e) The executive director will submit to the commission a summary of the final terms of the agreement. The commission may authorize the executive director to execute the agreement if it finds that the agreement is in the best interest of the state and furthers state, regional, and local transportation plans, programs, policies, and goals. (f) The department may enter into the following contracts without engaging in a competitive process: (1) a contract for rail operator services for 90 days or less, if the department first contacts at least three responsible operators; (2) a contract with a public entity; or (3) a lease of railroad track that connects to only one railroad line.</content><note type="source"><p>Source Note: The provisions of this §7.13 adopted to be effective April 1, 2011, 36 TexReg 1690.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c7/scC"><num value="C">SUBCHAPTER C</num><heading>ABANDONED RAIL</heading><section identifier="/us/state/tx/tac/t43/p1/c7/scC/s7.20"><num value="7.20">§7.20</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Abandoned rail facilities--Rail facilities for which:(A) a notice of intent to abandon or discontinue service has been filed with the Surface Transportation Board under 49 C.F.R. §1152.20;(B) an application for abandonment or discontinuance of service has been filed with the Surface Transportation Board under 49 C.F.R. Part 1152; or(C) abandonment or discontinuance of service has been authorized by the Surface Transportation Board.(2) Commission--The Texas Transportation Commission.(3) Department--The Texas Department of Transportation.(4) Notice of intent--The notice of intent to file an abandonment application described in 49 C.F.R. §1152.20.(5) Rail facility--Real or personal property, or any interest in that property, that is determined to be necessary or convenient for the provision of a freight or passenger rail facility or system, including commuter rail, intercity rail, and high-speed rail.(6) Service performed on the rail line--The number of trains operated on the line and their frequency, and the total tonnage and carloads on the line.(7) State funds--Funds provided by this state or an agency of this state for the purpose of acquiring or operating a rail line.</content><note type="source"><p>Source Note: The provisions of this §7.20 adopted to be effective January 5, 2006, 30 TexReg 8991; amended to be effective April 1, 2011, 36 TexReg 1690.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scC/s7.21"><num value="7.21">§7.21</num><heading>Abandonment of Rail Line by Rural Rail Transportation District</heading><content>(a) Purpose. Transportation Code, §172.210, provides that a rural rail transportation district created under that chapter may not abandon a rail line of the district with respect to which state funds have been loaned or granted unless the abandonment is approved by the commission as being consistent with the policies of that chapter. This section prescribes the policies and procedures by which a rural rail transportation district may apply for and obtain approval to abandon a rail line of the district. (b) Application. (1) To request approval of the abandonment of a segment of rail line with respect to which state funds have been loaned or granted, a district shall submit an application to: Director, Rail Division, Texas Department of Transportation, 125 East 11th Street, Austin, Texas 78701. (2) An application shall be submitted to the department no later than 45 days after the district filed the notice of intent under 49 C.F.R. §1152.20 and shall include a copy of: (A) documentation under which the district obtained state funds for the rail line; (B) the notice of intent filed with the Surface Transportation Board; (C) the application filed with the Surface Transportation Board under 49 C.F.R. Part 1152, Subpart C; and (D) documentation evidencing compliance with the requirements of 49 C.F.R. §1152.20. (c) Public Hearing. (1) If the department finds that the application meets the requirements of subsection (b) of this section, it will notify the district of its findings and will conduct one or more public hearings to receive public comment on the proposed abandonment. (2) The department will hold at least one hearing within at least one of the counties of the district. (3) The department will file a notice of each hearing with the Secretary of the State for publication in the Texas Register. (4) The district shall advertise each hearing in accordance with an outreach plan developed in consultation with the department. (d) Approval. In approving a request to abandon a segment of rail line, the commission will consider: (1) service performed on the line in the two years preceding the date of the notice of intent; (2) comments or other evidence of support of or opposition to the proposed abandonment received from interested parties; (3) alternate sources of transportation services available, including alternate sources of rail transportation service; (4) impact of the proposed abandonment on the operation of the state transportation system; (5) impact of the proposed abandonment on communities served by the rail line; and (6) viability of the rail line for continued rail transportation service. (e) Limitation. Abandonment of a rail line is subject to Surface Transportation Board permission pursuant to federal law.</content><note type="source"><p>Source Note: The provisions of this §7.21 adopted to be effective January 5, 2006, 30 TexReg 8991; amended to be effective April 1, 2011, 36 TexReg 1690.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scC/s7.22"><num value="7.22">§7.22</num><heading>Acquisition of Abandoned Rail Facilities</heading><content>(a) Purpose. Transportation Code, Chapter 91, authorizes the department to acquire abandoned rail facilities. In establishing criteria for the department's acquisition of abandoned rail facilities, the commission is required to consider the local and regional economic benefit realized from the disbursement of funds in comparison to the amount of the disbursement. This section prescribes policies and procedures for the department's acquisition of abandoned rail facilities. (b) Public involvement. (1) On receipt of a notice of intent to abandon or discontinue service, the department shall coordinate with the governing body of any municipality, county, or rural rail transportation district in which all or a segment of the rail facility is located to determine whether: (A) the department should acquire the rail facility; or (B) any other actions should be taken to provide for continued rail transportation service. (2) The department shall request that a municipality, county, or district in which all or a segment of the rail facility is located provide documentation concerning the local and regional economic impact of an abandonment or discontinuance of service. (3) If the department determines that there is a need to preserve the rail facility for continued rail service, or to preserve the corridor for another public-use condition under 49 C.F.R. §1152.28, it will notify the municipalities, counties, or districts in which all or a segment of the rail facility is located, and will conduct one or more public hearings to receive public comment on the proposed acquisition. (4) In making a determination under subsection (c) of this section, the department will consider: (A) information contained in the notice of intent to abandon or discontinue service and any application for abandonment or discontinuance of service filed with the Surface Transportation Board with respect to that rail facility under 49 C.F.R. Part 1152, including the extent of any service performed on the rail line; and (B) information provided by a municipality, county, or district concerning the economic impact of an abandonment or discontinuance of service. (5) The department will hold at least one public hearing within at least one of the counties in which the rail facility is located and will file a notice of each hearing with the Secretary of the State for publication in the Texas Register. (c) Criteria. In approving the acquisition of an abandoned rail facility, the commission will consider: (1) service performed on the rail line in the two years preceding the date of the notice of intent to abandon or discontinue service; (2) comments or other evidence in support of or opposition to the proposed abandonment or discontinuance of service received from interested parties; (3) alternate sources of transportation services available, including alternate sources of rail transportation service; (4) impact of the proposed abandonment or discontinuance of service on the operation of the state transportation system; (5) local and regional economic impact of the abandonment or discontinuance of service; (6) viability of the rail line for continued rail transportation service; and (7) the extent to which the monetary value of the economic benefits attributable to the acquisition exceed the amount of funds disbursed by the department to acquire the rail facility.</content><note type="source"><p>Source Note: The provisions of this §7.22 adopted to be effective January 5, 2006, 30 TexReg 8991; amended to be effective April 1, 2011, 36 TexReg 1690.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c7/scD"><num value="D">SUBCHAPTER D</num><heading>RAIL SAFETY</heading><section identifier="/us/state/tx/tac/t43/p1/c7/scD/s7.30"><num value="7.30">§7.30</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Department--The Texas Department of Transportation.(2) Division director--The director of the department's Rail Division.(3) FRA--The Federal Railroad Administration.(4) Railroad--Any form of nonhighway ground transportation that runs on rails or electromagnetic guideways.(A) Railroad includes:(i) commuter or other short-haul railroad passenger service in a metropolitan or suburban area; and(ii) high speed ground transportation systems that connect metropolitan areas, without regard to whether those systems use new technologies not associated with traditional railroads.(B) Railroad does not include rapid transit operations in an urban area that are not connected to the general railroad system of transportation.</content><note type="source"><p>Source Note: The provisions of this §7.30 adopted to be effective January 5, 2006, 30 TexReg 8993; amended to be effective April 1, 2011, 36 TexReg 1690; amended to be effective July 15, 2015, 40 TexReg 4462; amended to be effective June 17, 2020 45 TexReg 4057.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scD/s7.31"><num value="7.31">§7.31</num><heading>Safety Requirements</heading><content>(a) Applicability. A person, association, private corporation, public corporation, or any other entity that owns or operates a railroad shall comply with the requirements of this subchapter.(b) Governing statutes. Railroads operating within the state of Texas shall comply with the safety requirements contained in or adopted under:(1) 49 United States Code, Subtitle III, Chapter 51;(2) 49 United States Code, Subtitle V, Part A;(3) Transportation Code, Chapter 111;(4) Transportation Code, Chapters 191, 192, and 193;(5) 49 C.F.R. Part 40;(6) 49 C.F.R. Parts 107 and 171 - 180; and(7) 49 C.F.R. Subtitle B, Chapter II, Federal Railroad Administration, Department of Transportation, Parts 200 - 299.</content><note type="source"><p>Source Note: The provisions of this §7.31 adopted to be effective January 5, 2006, 30 TexReg 8993; amended to be effective April 1, 2011, 36 TexReg 1690; amended to be effective April 17, 2013, 38 TexReg 2378; amended to be effective July 20, 2016, 41 TexReg 5247.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scD/s7.32"><num value="7.32">§7.32</num><heading>Filing Requirements</heading><content>(a) A railroad shall file with the department:(1) the name, address, and telephone number of the principal operating officer in Texas;(2) a primary and secondary telephone number, which are manned 24 hours per day, for the railroad dispatcher or supervisor responsible for train operations in Texas.(b) When the department makes a written request, a railroad shall file with the department:(1) its code of operating rules, timetables, and timetable special instructions as follows:(A) the operating rules, timetables, and timetable special instructions; and(B) each amendment to the railroad's code of operating rules, each new timetable, and each new timetable special instruction;(2) a copy of monthly reports of excess service filed with the FRA under 49 C.F.R. §228.19;(3) a copy of its program for periodic conduct of operational tests and inspections filed with the FRA under 49 C.F.R. §217.9;(4) a copy of its program for periodic instruction of its employees filed with the FRA under 49 C.F.R. §217.11; and(5) a copy of its program for engineer certification filed with the FRA under 49 C.F.R. Part 240.(c) Filings required by subsection (b)(1)-(5) of this section may include only information pertaining to railroad operations conducted in the state of Texas.(d) It is preferred that filings required by this subsection be made using electronic digital media format.(e) Filings required by this section shall be submitted to: Rail Division, Texas Department of Transportation, 125 East 11th Street, Austin, Texas 78701.</content><note type="source"><p>Source Note: The provisions of this §7.32 adopted to be effective January 5, 2006, 30 TexReg 8993; amended to be effective April 1, 2011, 36 TexReg 1690; amended to be effective July 15, 2015, 40 TexReg 4462; amended to be effective June 17, 2020, 45 TexReg 4057.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scD/s7.33"><num value="7.33">§7.33</num><heading>Reports of Accidents/Incidents</heading><content>(a) Telephonic reports of certain accidents/incidents.(1) A railroad shall give immediate telephonic notice to the department of accidents/incidents and other events by calling the department's Rail Division at the telephone number posted on the department's website. Except as provided in paragraph (2) of this subsection, a railroad shall give reports to the department in the same manner and following the same requirements as the railroad shall give reports to the National Response Center under 49 C.F.R. §225.9.(2) In addition to giving the department telephonic notice of the accidents/incidents and other events described in 49 C.F.R. §225.9, a railroad shall give telephonic notice of accidents/incidents which:(A) result in the death of one or more persons;(B) result in the injury of two or more persons;(C) involve a fire or explosion; or(D) involve a passenger or commuter train.(b) Written reports. When the department makes a written request, a railroad shall furnish the department with a copy of an accident/incident report filed with the FRA under 49 C.F.R. Part 225, within 30 days after expiration of the month during which the accident/incident occurred. Only copies of reports that concern accidents/incidents occurring in the state of Texas shall be filed with the department. It is preferred that filings required by this section be made by electronic digital media format.</content><note type="source"><p>Source Note: The provisions of this §7.33 adopted to be effective January 5, 2006, 30 TexReg 8993; amended to be effective April 1, 2011, 36 TexReg 1690; amended to be effective July 15, 2015, 40 TexReg 4462; amended to be effective July 20, 2016, 41 TexReg 5247; amended to be effective June 17, 2020, 45 TexReg 4057.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scD/s7.34"><num value="7.34">§7.34</num><heading>Hazardous Materials--Telephonic Reports of Incidents</heading><content>A railroad shall give immediate telephonic notice to the department of hazardous materials incidents by calling the department's Rail Division at the telephone number posted on the department's website. A railroad shall give reports to the department in the same manner and following the same requirements as the railroad shall give reports to the National Response Center under 49 C.F.R. §171.15. A railroad shall give telephonic notice of only those accidents/incidents which involve the operation of railroad on-track equipment (standing or moving).</content><note type="source"><p>Source Note: The provisions of this §7.34 adopted to be effective January 5, 2006, 30 TexReg 8993; amended to be effective April 1, 2011, 36 TexReg 1690; amended to be effective July 15, 2015, 40 TexReg 4462; amended to be effective July 20, 2016, 41 TexReg 5247; amended to be effective June 17, 2020, 45 TexReg 4057.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scD/s7.35"><num value="7.35">§7.35</num><heading>Hazardous Materials--Written Reports</heading><content>(a) Policy. It is the policy of the department to provide information regarding the type and quantity of hazardous materials transported within the state to the Texas Division of Emergency Management for use by local emergency planning agencies in areas containing reported railroad operations. It is also department policy to collect such information in order for the department to more efficiently allocate hazardous materials inspection resources. To accomplish these policies, each railroad that transports a hazardous material into, out of, within, or through the state is required to adhere to certain reporting requirements relating to the transportation of hazardous materials.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Hazardous material--Any substance transported by a railroad which is included within the requirements of the railcar placarding regulations adopted by the United States Department of Transportation and published in the C.F.R., Title 49.(2) Railroad line --A length of railroad that is designated in the current railroad timetable. The term includes a railroad subdivision, branch line, industrial lead, and spur line. The term does not include a business track. (3) Reporting year--Calendar year (January 1-December 31) preceding the year the report is to be submitted.(c) Reporting requirements. A railroad that transports hazardous materials in or through the state is required to file the following information with the department:(1) when the department makes a written request, a copy of the report of each hazardous materials incident occurring within the state of Texas that the railroad company files with the United States Department of Transportation under 49 C.F.R. §171.16;(2) a map delineating the geographical limits of the railroad operating divisions or districts, the principal operating officer for the railroad in each operating division or district in the state, and the current timetable for railroad operations in the divisions or districts;(3) a primary and secondary telephone number, which are manned 24 hours per day, for the railroad dispatcher responsible for train operations in each operating division or district in the state;(4) the name and contact information of each railroad employee who is responsible for managing hazardous materials transportation in the state for the railroad; and(5) for each county, a hazardous materials commodity report that satisfies subsection (d) of this section and that shows each type of hazardous material transported in the state during the reporting year over each railroad line owned, leased, or operated by the railroad or railroad line over which hazardous material was transported by trackage rights or haulage rights.(d) Contents of hazardous materials commodity report.(1) A hazardous materials commodity report, at a minimum, must contain (A) the county name;(B) the railroad line name;(C) the Standard Transportation Commodity Code for the hazardous material;(D) the United Nations (UN)/ North American (NA) number assigned to the hazardous material;(E) the packing group of the hazardous material;(F) the proper shipping name of the hazardous material;(G) the current Emergency Response Guidebook number for the hazardous material, if applicable;(H) the United States Department of Transportation's hazard class and division for the hazardous material as assigned by 49 C.F.R. Part 173 or the identification designation specified in 40 C.F.R. Part 261;(I) the total number of residue cars transported in the county during the reporting year;(J) the total number of loaded cars transported in the county during the reporting year;(K) the total number of residue intermodal containers transported in the county during the reporting year;(L) the total number of loaded intermodal containers transported in the county during the reporting year; and(M) the sum of the numbers reported under subparagraphs (I), (J), (K), and (L) for the county (2) The railroad must label a hazardous materials commodity report as sensitive security information if the report contains information defined as sensitive security information under 49 C.F.R. Part 1520 (e) Reporting dates. Information required by subsection (c)(2) - (5) of this section shall be filed with the department not later than April 1 of each year.(f) Format. A railroad shall provide the information required by this section in the format prescribed by the department.(g) Variance. A railroad may request that the department grant a variance from the requirements of this section. The department shall process the application in accordance with §7.42 of this subchapter (relating to Administrative Review). The department may approve the variance only if the department will continue to receive information concerning the transportation of hazardous materials needed by local emergency planning agencies and needed to efficiently allocate the department's inspection resources. Any exception granted by the department shall be valid for a period not to exceed two years.</content><note type="source"><p>Source Note: The provisions of this §7.35 adopted to be effective January 5, 2006, 30 TexReg 8993; amended to be effective April 1, 2011, 36 TexReg 1690; amended to be effective February 19, 2025, 50 TexReg 865.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scD/s7.36"><num value="7.36">§7.36</num><heading>Clearances of Structures Over and Alongside Railway Tracks</heading><content>(a) The lowest part of a structure built over the tracks of a railroad, including a bridge, viaduct, foot bridge, or power line, may not be less than 22 feet above the top of the rails of the tracks.(b) A structure, including a platform or fence, or material may not be built or placed so that any part of the structure or material is less than 8-1/2 feet from the center line of a railroad track, including a main line, spur, switch, or siding.(c) The lowest part of a roof projection constructed for any purpose may not be less than 22 feet above the top of the rails of a railroad track and the horizontal edge of the roof projection may not be less than 8-1/2 feet from the center line of the track.(d) Transportation Code, §191.001 and §191.002 and the requirements of this section do not apply to engine houses or buildings into which locomotives or cars are moved for terminal inspection, attention, or repairs.(e) Waiver of Provision.(1) An individual or entity may apply for a waiver from the requirements of Transportation Code, §191.001 and §191.002, or this section, on a form to be prescribed by the department and provided on the department web site.(2) The department will process the application. On a showing of good cause by the applicant and after the department's notice to the attorney general, as required under Transportation Code, §191.005, the executive director or a designee may grant all or a part of the waiver request. The executive director or a designee may require appropriate measures such as posting warning signs and giving notice to railroads that use the facility.(3) If the applicant does not provide sufficient information to evaluate the waiver request, the executive director or a designee will deny the request.(4) The applicant is not entitled to a contested case hearing, and there is no right to appeal the decision on the waiver request.</content><note type="source"><p>Source Note: The provisions of this §7.36 adopted to be effective January 5, 2006, 30 TexReg 8993; amended to be effective April 1, 2011, 36 TexReg 1690; amended to be effective July 20, 2016, 41 TexReg 5247; amended to be effective February 19, 2025, 50 TexReg 865.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scD/s7.37"><num value="7.37">§7.37</num><heading>Visual Obstructions at Public Grade Crossings</heading><content>(a) Definitions. The following words or terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Active warning device--A bell, flashing light, gate, wigwag, or other automatically activated warning device that provides an active warning to a motorist of the approach of a train to the crossing.(2) Passive public grade crossing--A crossing or intersection of railroad track by a publicly maintained road or highway at which the traffic control devices consist entirely of signs or pavement markings and there are no active warning devices.(3) Vegetation--Grass, bushes, shrubbery, and trees having a trunk diameter of six inches or less.(b) Standing equipment. No railroad shall cause or allow trains, railway cars, or equipment to stand less than 250 feet from the centerline of any passive public grade crossing unless a closer distance cannot be avoided.(c) Vegetation. A railroad shall control vegetation on its right-of-way (except for the roadbed and areas immediately adjacent to the roadbed) for a distance of 250 feet each way from the centerline of a passive public grade crossing, so that vegetation does not block the vehicular highway traffic's view of approaching trains. The 250 feet shall be measured from the point where the centerline of the railroad crosses the centerline of the public road. Where the right-of-way is fenced, this subsection shall be deemed complied with if vegetation is controlled up to two feet from the fence.(d) Permanent structures. A railroad shall keep its right-of-way clear of unnecessary permanent obstructions, such as billboards and signs that are not authorized by the railroad and that are not required for the safe operation of the railroad, for a distance of 250 feet each way from a passive public grade crossing so that the obstructions do not block the vehicular highway traffic's view of approaching trains. Billboards and signs that are legally permitted by the state or a political subdivision are not unnecessary permanent obstructions, so long as they do not block the vehicular highway traffic's view of approaching trains. Permanent buildings, such as warehouses and equipment facilities, which existed prior to June 26, 1986, are exempt from the requirements of this subsection. The 250 feet shall be measured from the point where the centerline of the railroad crosses the centerline of the public road.(e) Variance. A railroad may apply for a variance from the requirements of subsections (c) and (d) of this section on a form to be prescribed by the department. The department shall process the application in accordance with §7.42 of this subchapter (relating to Administrative Review). The department may approve an application, provided there remains a clear line-of-site adequate to provide for the safe passage of vehicles. The department may require appropriate measures such as posting warning signs and giving notice to railroads that use the facility.</content><note type="source"><p>Source Note: The provisions of this §7.37 adopted to be effective January 5, 2006, 30 TexReg 8993; amended to be effective April 1, 2011, 36 TexReg 1690.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scD/s7.38"><num value="7.38">§7.38</num><heading>Wayside Detector Map, List, or Chart</heading><content>(a) When the department requests in writing, a railroad shall file a map, list, or chart with the department indicating the current locations within the state of Texas of the following wayside detectors:(1) hot box indicators;(2) dragging equipment detectors;(3) high water indicators;(4) shifted load detectors; and(5) other wayside detectors.(b) Filings required by this section shall be submitted to: Rail Division, Texas Department of Transportation, 125 East 11th Street, Austin, Texas 78701.</content><note type="source"><p>Source Note: The provisions of this §7.38 adopted to be effective January 5, 2006, 30 TexReg 8993; amended to be effective April 1, 2011, 36 TexReg 1690; amended to be effective July 15, 2015, 40 TexReg 4462; amended to be effective June 17, 2020, 45 TexReg 4057.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scD/s7.39"><num value="7.39">§7.39</num><heading>Right to Inspect</heading><content>(a) Railroad property. Authorized personnel of the department shall have the right to enter onto the property of any railroad operating within the state of Texas, for the purpose of conducting inspections, investigations, and surveillance of railroad tracks, facilities, equipment, records, and operations in order to determine the railroad's compliance with relevant safety requirements. Any inspection, investigation, or surveillance shall be conducted at a reasonable time and in a reasonable manner.(b) Hazardous materials. In accordance with Transportation Code, §111.102, authorized personnel of the department have the right to inspect facilities, equipment, records, and operations relating to the packaging, loading, unloading, or transportation of hazardous materials by railroad.</content><note type="source"><p>Source Note: The provisions of this §7.39 adopted to be effective January 5, 2006, 30 TexReg 8993; amended to be effective April 1, 2011, 36 TexReg 1690.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scD/s7.40"><num value="7.40">§7.40</num><heading>Enforcement of Safety Requirements</heading><content>(a) Federal enforcement action. The division director may refer violations of FRA's railroad safety requirements to the FRA with a recommendation that the FRA seek either imposition of civil penalties or an injunction against further railroad safety violations, or both.(b) State enforcement action. The department may, through the attorney general of Texas, bring an action in any court of competent jurisdiction and proper venue, seeking either imposition of a civil penalty or an injunction, or both, against violation of a railroad safety regulation or order issued under the provisions of the Texas Civil Statutes or Transportation Code, Chapter 111. The department may also, through the attorney general of Texas, bring an action in the United States district court for the judicial district in which the violation occurred or in which the defendant has its principal executive office, seeking either imposition of a civil penalty or an injunction, or both, for a violation of FRA's railroad safety requirements, if the division director has requested such action and the FRA has failed to take timely action on a request.</content><note type="source"><p>Source Note: The provisions of this §7.40 adopted to be effective January 5, 2006, 30 TexReg 8993; amended to be effective April 1, 2011, 36 TexReg 1690.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scD/s7.41"><num value="7.41">§7.41</num><heading>Rail Safety Program Fee</heading><content>(a) Annual fee. Each railroad operating within the state shall pay an annual fee as provided by this section.(b) Definitions. The following terms, when used in this section, shall have the following meanings unless the context clearly indicates otherwise.(1) Gross ton miles:(A) the combined weight of all rail cars and their contents, exclusive of locomotives, multiplied by the number of miles traveled in the state within a calendar year; or(B) if a railroad has reported its calendar year gross ton miles on a Form R-1 filed with the United States Surface Transportation Board (USSTB), that portion of the reported gross ton miles that are for operations within the state.(2) Rail cars interchanged--rail cars that are transferred from one railroad to another.(c) Annual report of gross ton miles. Each railroad operating within the state that is required to report its gross ton miles to the USSTB, shall report to the department, no later than July 1 of each calendar year, the railroad's gross ton miles for the preceding calendar year. The report shall be in writing, signed by a duly authorized officer of the railroad, and verified as to accuracy.(d) Annual report of rail cars interchanged. Each railroad operating within the state that is not required to report its gross ton miles to the USSTB, shall report to the department, no later than July 1 of each calendar year, the railroad's total number of rail cars interchanged for the preceding calendar year. The report shall be in writing, signed by a duly authorized officer of the railroad, and verified as to accuracy.(e) Calculation of fee. The department shall determine the annual fee for each railroad operating in the state as follows:(1) for each railroad that is required to report its gross ton miles to the department:(A) each railroad's gross ton miles will be divided by the total gross ton miles of all railroads required to report gross ton miles to the department; and(B) the result will be multiplied by 95% of the amount estimated by the department to be necessary to recover the costs of administering the department's rail safety program for the next state fiscal year;(2) for each railroad that is required to report its total rail cars interchanged to the department:(A) each railroad's total number of rail cars interchanged will be divided by the total number of rail cars interchanged by all railroads required to report rail car interchanges to the department; and(B) the result will be multiplied by 5% of the amount estimated by the department to be necessary to recover the costs of administering the department's rail safety program for the next state fiscal year.(f) Notice of fee due. The department shall, no later than September 1 of each calendar year, notify each railroad operating in the state of the amount of that railroad's fee that is due and payable.(g) Payment of fee. Each railroad operating in the state shall, no later than November 1 of each calendar year, pay its assessed fee to the department. The payment shall be made payable to the state of Texas and shall be considered by the department to be timely made if it is received by the department on or before November 1 of the same calendar year in which notice has been given under subsection (f) of this section, or is sent to the department by first-class United States mail in an envelope properly addressed, stamped, and postmarked on or before November 1 of the same calendar year in which notice has been given under subsection (f) of this section, and received by the department not more than 10 days later. A legible postmark affixed by the United States Postal Service shall be prima facie evidence of the date of mailing.(h) Determination of gross ton miles, total rail cars interchanged. The following requirements apply to railroad reports.(1) If a railroad does not timely report its gross ton miles as required by subsection (c) of this section, the department may make a good-faith estimate of the railroad's gross ton miles and assess the railroad's fee based on that estimate. Failure by a railroad to timely report its gross ton miles constitutes a waiver by the railroad to object to both the department's estimate and the fee based on the estimate.(2) If a railroad does not timely report its total rail cars interchanged as required by subsection (d) of this section, the department may make a good-faith estimate of the railroad's total cars interchanged and assess the railroad's fee based on that estimate. Failure by a railroad to timely report its total cars interchanged constitutes a waiver by the railroad to object to both the department's estimate and the fee based on the estimate.(3) If the department has a rational basis for questioning the gross ton miles or the total rail cars interchanged reported by a railroad, the department may, by letter, fax, or electronic mail, request the railroad provide documentation or other evidence demonstrating how the railroad determined its reported gross ton miles or its reported total rail cars interchanged. The request shall state the department's rational basis for questioning the reported gross ton miles or the reported total rail cars interchanged and shall inform the railroad that it may deliver such documentation or evidence to the department by hand delivery, mail, fax, electronic mail, or private carrier.(4) If the department determines that a railroad has not provided sufficient documentation or other evidence within 14 calendar days of the request, the department may, in the case of a railroad required to report its gross ton miles, proceed under paragraph (1) of this subsection as if the railroad did not timely report its gross ton miles or, in the case of a railroad required to report its total rail cars interchanged, proceed under paragraph (2) of this subsection as if the railroad did not timely report its total rail cars interchanged. The department shall inform a railroad whether it accepts the railroad's documentation or evidence or whether it is proceeding under paragraph (1) or (2) of this subsection.(i) Administrative review. A railroad may apply for administrative review of the department's determination under subsection (h)(3) and (4) of this section in accordance with §7.42 of this subchapter (relating to Administrative Review).</content><note type="source"><p>Source Note: The provisions of this §7.41 adopted to be effective January 5, 2006, 30 TexReg 8993; amended to be effective April 1, 2011, 36 TexReg 1690.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scD/s7.42"><num value="7.42">§7.42</num><heading>Administrative Review</heading><content>(a) Applicability. This section applies only when another section makes a specific reference to this section.(b) Application.(1) A railroad shall submit an application for administrative review to the following address: Director, Rail Division, Texas Department of Transportation, 125 East 11th Street, Austin, Texas 78701.(2) The application shall explain the relief requested, all relevant facts, and the legal basis for the relief sought.(3) If the application seeks review of a department decision given to the railroad in writing, the railroad shall submit an application for review no later than 30 days after receipt of the written decision.(c) Decision. The executive director, or his designee not below division director, shall decide whether to grant, grant in part, or deny the application. If an applicant does not provide information sufficient to evaluate the application, the application shall be denied. The applicant is not entitled to a contested case hearing, and there is no right to appeal the decision.</content><note type="source"><p>Source Note: The provisions of this §7.42 adopted to be effective January 5, 2006, 30 TexReg 8993; amended to be effective April 1, 2011, 36 TexReg 1690; amended to be effective July 15, 2015, 40 TexReg 4462; amended to be effective June 17, 2020, 45 TexReg 4057.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c7/scE"><num value="E">SUBCHAPTER E</num><heading>RAIL FIXED GUIDEWAY SYSTEM STATE SAFETY OVERSIGHT PROGRAM</heading><section identifier="/us/state/tx/tac/t43/p1/c7/scE/s7.80"><num value="7.80">§7.80</num><heading>Purpose</heading><content>Transportation Code, Chapter 455 requires the Texas Transportation Commission to establish standards for and implement state oversight of safety practices of rail fixed guideway systems in compliance with 49 U.S.C. §5329. This subchapter prescribes the policies and procedures governing state oversight of rail fixed guideway systems' safety practices.</content><note type="source"><p>Source Note: The provisions of this §7.80 adopted to be effective September 1, 2018, 43 TexReg 5238; amended to be effective May 15, 2024, 49 TexReg 3372.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scE/s7.81"><num value="7.81">§7.81</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Accident--An event that involves any of the following: A loss of life; a report of a serious injury to a person; a collision involving a rail transit vehicle; a runaway train; an evacuation for life safety reasons; or any derailment of a rail transit vehicle, at any location, at any time, whatever the cause.(2) Accountable Executive--A single, identifiable individual who has:(A) ultimate responsibility for carrying out the public transportation agency safety plan of a public transportation agency;(B) responsibility for carrying out the agency's transit asset management plan; and(C) control or direction over the human and capital resources needed to develop and maintain both the agency's public transportation agency safety plan, in accordance with 49 U.S.C. §5329(d), and the agency's transit asset management plan in accordance with 49 U.S.C. §5326.(3) Administrator--The Federal Transit Administrator or the Administrator's designee.(4) Contractor--An entity that performs tasks on behalf of FTA, a state safety oversight agency, or a rail transit agency, through contract or other agreement.(5) Corrective action plan--A plan developed by a rail transit agency that describes the actions the rail transit agency will take to minimize, control, correct, or eliminate risks and hazards, and the schedule for taking those actions. Either a state safety oversight agency or FTA may require a rail transit agency to develop and carry out a corrective action plan.(6) Department--The Texas Department of Transportation.(7) Event--An accident, incident, or occurrence.(8) Executive director--The executive director of the department.(9) Fatality--A death that results from an event and that occurs within 30 days after the date of the event.(10) FRA--The Federal Railroad Administration, an agency within the United States Department of Transportation.(11) FTA--The Federal Transit Administration, an agency of the United States Department of Transportation.(12) Hazard--any real or potential condition that can cause injury, illness, or death; damage to or loss of the facilities, equipment, rolling stock, or infrastructure of a rail fixed guideway public transportation system; or damage to the environment.(13) Incident--An event that involves any of the following: A personal injury that is not a serious injury; one or more injuries requiring medical transport; or damage to facilities, equipment, rolling stock, or infrastructure that disrupts the operations of a rail transit agency.(14) Investigation--The process of determining the causal and contributing factors of an accident, incident, or hazard, for the purpose of preventing recurrence and mitigating risk.(15) NTSB--The National Transportation Safety Board, an independent federal agency.(16) Occurrence--An event without any personal injury in which any damage to facilities, equipment, rolling stock, or infrastructure does not disrupt the operations of a rail transit agency.(17) Passenger--An individual who is on board, boarding, or alighting from a rail transit vehicle used for the individual's travel.(18) Pre-revenue Operations--Operation of the rail fixed guideway public transportation system prior to revenue service that includes identification and performance of tests, drills, exercises, and audits designed to verify the functional capability and readiness of the system.(19) Public transportation agency safety plan--The comprehensive agency safety plan for a transit agency, including a rail transit agency, that is required by 49 U.S.C 5329(d) and based on a safety management system.(20) Rail fixed guideway public transportation system--Any fixed guideway system that uses rail, is operated for public transportation, is within the jurisdiction of a State, and is not subject to the jurisdiction of the Federal Railroad Administration, or any such system in engineering or construction. Rail fixed guideway public transportation systems include but are not limited to rapid rail, heavy rail, light rail, monorail, trolley, inclined plane, funicular, and automated guideway.(21) Rail transit agency--Any entity that provides services on a rail fixed guideway public transportation system.(22) Rail transit controlled property--Property that is used by the rail transit agency.(23) Rail transit vehicle--The rail transit agency's rolling stock, including passenger and maintenance vehicles.(24) Revenue Service--Operation of the rail fixed guideway public transportation system to carry passengers that pay fares, provide payment through a contractual arrangement, or have the fares subsidized by public policy. Vehicles operated in fare free service are considered in revenue service.(25) Serious injury--Any injury that:(A) requires hospitalization for more than 48 hours, with the hospitalization beginning within 7 days after the date that the injury was received;(B) results in a fracture of any bone, other than a simple fracture of a finger, toe, or nose;(C) causes severe hemorrhages, nerve, muscle, or tendon damage;(D) involves any internal organ; or(E) involves second- or third-degree burns, or any burns affecting more than five percent of the body surface.(26) Vehicle--Any rolling stock used on a rail fixed guideway public transportation system, including passenger and maintenance vehicles.</content><note type="source"><p>Source Note: The provisions of this §7.81 adopted to be effective September 1, 2018, 43 TexReg 5238; amended to be effective February 19, 2020, 45 TexReg 1041.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scE/s7.82"><num value="7.82">§7.82</num><heading>Public Transportation Agency Safety Plan</heading><content>A transit agency, other than a small public transportation provider governed by Title 43, Chapter 31 of the Texas Administrative Code, must establish a public transportation agency safety plan that meets the requirements of 49 U.S.C. §5329(d), 49 C.F.R. Part 673, and the State Safety Oversight Program Standard.</content><note type="source"><p>Source Note: The provisions of this §7.82 adopted to be effective May 15, 2024, 49 TexReg 3372.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scE/s7.83"><num value="7.83">§7.83</num><heading>Modifications to a Public Transportation Agency Safety Plan</heading><content>(a) If a rail transit agency determines, or is notified by the department, that the public transportation agency safety plan needs to be modified, the rail transit agency shall submit the modified plan and any subsequently modified procedures to the department for review and approval.(b) Except as provided by subsection (c) of this section, the rail transit agency may not implement the proposed modifications before the modified plan is approved by the department.(c) If the rail transit agency determines that a modification is necessary to address an imminent safety hazard, the rail transit agency may make a temporary modification to its public transportation agency safety plan before that modification is approved by the department, but the modification must be approved by the department before it may become permanent.</content><note type="source"><p>Source Note: The provisions of this §7.83 adopted to be effective May 15, 2024, 49 TexReg 3372.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scE/s7.84"><num value="7.84">§7.84</num><heading>Safety Risk Management Process</heading><content>(a) Each rail transit agency shall develop, and document in its public transportation agency safety plan, a process to identify and resolve hazards during its operation, including any hazards resulting from a subsequent system extension, rehabilitation, or modification, from operational changes, or from other changes within the rail transit environment.(b) The safety risk management process must, at a minimum:(1) define the rail transit agency's approach to hazard management and the implementation of an integrated system-wide hazard resolution process;(2) specify the mechanisms used for the on-going identification of hazards;(3) define the process used to evaluate identified hazards and prioritize them for elimination or control;(4) identify the mechanism used to track through resolution the identified hazards;(5) define minimum thresholds for the notification and reporting of hazards to the department; and(6) specify the process used by the rail transit agency to provide on-going reporting of hazard resolution activities to the department.(c) A rail transit agency shall report to the department hazards in accordance with the State Safety Oversight Program Standard.</content><note type="source"><p>Source Note: The provisions of this §7.84 adopted to be effective February 19, 2020, 45 TexReg 1041; amended to be effective May 15, 2024, 49 TexReg 3372.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scE/s7.85"><num value="7.85">§7.85</num><heading>Ensuring Safety In New Rail Systems</heading><content>(a) A rail transit agency may not begin operation before a public transportation agency safety plan is approved by the department.(b) Each new rail transit agency is required to submit its public transportation agency safety plan to the department not later than 180 days before the target date of pre-revenue operations.(c) The department will conduct an on-site pre-revenue review of each new rail transit agency's public transportation agency safety plan within 60 days after the date that the plan is received by the department under subsection (b) of this section.(d) The department may request additional information or clarification related to, or revisions of, the public transportation agency safety plan.(e) On approval, the department will issue to the chief executive of the rail transit agency a formal letter of approval of the initial public transportation agency safety plan.</content><note type="source"><p>Source Note: The provisions of this §7.85 adopted to be effective February 19, 2020, 45 TexReg 1041; amended to be effective May 15, 2024, 49 TexReg 3372.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scE/s7.86"><num value="7.86">§7.86</num><heading>Risk Based Inspections</heading><content>(a) In addition to the generally applicable State Safety Oversight Program Standard, the department will develop and maintain an individual risk-based inspection program document in consultation with each rail transit agency in the State Safety Oversight Program. The program documents will be incorporated into the State Safety Oversight Program Standard and the rail transit agency safety plans. The program standard is detailed in the subsections below.(b) The department will conduct inspections, with or without notice, of rail transit agency infrastructure, equipment, records, personnel, and data, including the data that the rail agency collects when identifying and evaluating safety risks, in accordance with the State Safety Oversight Program Standard. A rail transit agency shall provide access to department State Safety Oversight Program (SSOP) staff and contractors to conduct inspections as prescribed in the State Safety Oversight Program Standard.(c) Department SSOP staff and contractors will comply with a rail transit agency's protective equipment policy and other safety requirements in the conduct of all inspections.(d) Department personnel will immediately report safety concerns revealed through inspection activities to the rail transit agency staff upon discovery.(e) The department will issue a draft inspection report to the rail transit agency within 30 days after the date of the completion of the inspection. The rail transit agency may submit written comments on the draft inspection report within 10 days of receiving the draft inspection report. The department will issue the final inspection report not later than 10 days after the rail transit agency's deadline to submit comments. The inspection report will contain:(1) Date and time of inspection;(2) Department personnel present;(3) Inspection purpose, functional area, and locations or items inspected;(4) Issues or deficiencies observed, if applicable;(5) Recommendations, if applicable;(6) Photographs, documentation, or diagrams, if available; and(7) Corrective actions required which may include remedial actions.(f) Rail transit agencies shall submit data to the department for qualitative and quantitative analysis to detect changes in rail transit safety performance, shifts in risk, and assure policy adherence. Data submission requirements for each rail transit agency are based on that agency's Safety Management System (SMS) hazard identification and risk assessment policies and procedures identified in the agency's public transportation agency safety plan. The type of data, format for submission, and schedule of submission shall be identified for each agency in its public transportation agency safety plan.(g) The department will review rail transit agency data to prioritize inspection activities at least annually for each rail transit agency.(h) The department will conduct on-going monitoring which will include at least four onsite inspections per year and other monitoring activities pursuant to 49 C.F.R. Part 674 and as described in the State Safety Oversight Program Standard.</content><note type="source"><p>Source Note: The provisions of this §7.86 adopted to be effective May 15, 2024, 49 TexReg 3372.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scE/s7.87"><num value="7.87">§7.87</num><heading>Rail Transit Agency's Annual Internal Safety Review</heading><content>(a) Annually, each rail transit agency shall conduct an internal review of its public transportation agency safety plan to ensure that all elements of the public transportation agency safety plan are performing as intended.(b) The internal review process must, at a minimum:(1) describe the process used by the rail transit agency to determine if all identified elements of its public transportation agency safety plan are performing as intended;(2) ensure that all elements of the public transportation agency safety plan are reviewed in an ongoing manner; and(3) include checklists or procedures that the rail transit agency will use for the review.(c) The rail transit agency shall notify the department at least 60 days before the day of conducting the internal safety review. This notification must include any checklists or procedures that will be used during the review.(d) The rail transit agency shall permit the department to participate in or observe the on-site portions of the rail transit agency's internal review.(e) Before February 1 of each year, the rail transit agency shall submit a report documenting internal safety review activities that have been performed since the last report and the findings and status of corrective actions.</content><note type="source"><p>Source Note: The provisions of this §7.87 adopted to be effective February 19, 2020, 45 TexReg 1041; amended to be effective May 15, 2024, 49 TexReg 3372.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scE/s7.88"><num value="7.88">§7.88</num><heading>Triennial Review of Rail Transit Agencies</heading><content>(a) The department will conduct an audit of the rail transit agency at least once every three years. The audit will evaluate whether the rail transit agency has implemented a public transportation agency safety plan that meets the requirements of, 49 C.F.R. Part 674.27, the department's State Safety Oversight Program Standard, and the National Public Transportation Safety Plan, and whether the rail transit agency complies with the plan.(b) The department will provide an audit checklist based on the required elements of the public transportation agency safety plan.(c) The department will verify the required elements by;(1) interviews;(2) document review;(3) field observations;(4) testing;(5) measurements;(6) spot checks; and(7) demonstrations provided by the rail transit agency staff.(d) To determine compliance with the public transportation agency safety plan, the department will sample accident reports, internal review reports, and the agency's hazard management program.(e) The audit may be conducted as a single on-site assessment or in an ongoing manner over a three-year cycle.(f) In planning the audit the department will:(1) develop the audit schedule in coordination with the rail transit agency;(2) designate the audit team and an audit team lead;(3) prepare an audit plan that includes all elements identified in the rail transit agency's public transportation agency safety plan;(4) prepare audit checklists and templates;(5) identify methods of verification for each checklist item; and(6) request and review the rail transit agency's safety documents.(g) In conducting the audit, the department will:(1) conduct an entrance meeting with the rail transit agency's administration;(2) conduct interviews with appropriate rail transit staff;(3) observe on-site operations;(4) evaluate documents and data maintained on-site;(5) take measurements and conduct spot checks;(6) review all checklist items for compliance; and(7) inform the rail transit agency of initial findings and observations.(h) The rail transit agency shall cooperate with the department during the audit review and provide access to all documents, records, equipment, and property necessary to complete the audit.(i) The department will issue a draft report to the rail transit agency within 60 days after the date of the completion of the audit.(j) The rail transit agency may submit written comments on the draft audit report. The department will include in the final audit report any comments received within 30 days after the date that the draft report was issued.(k) The department will prepare a final audit report and deliver a copy to the rail transit agency.(l) Within 30 days after the date of its receipt of the final audit report, the rail transit agency shall provide to the department all corrective action plans necessary to address the findings in the report.(m) The department will notify the rail transit agency when all findings have been addressed and the audit is closed.</content><note type="source"><p>Source Note: The provisions of this §7.88 adopted to be effective February 19, 2020, 45 TexReg 1041; amended to be effective May 15, 2024, 49 TexReg 3372.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scE/s7.89"><num value="7.89">§7.89</num><heading>Event Notification</heading><content>(a) Each rail transit agency shall notify the department and FTA within two hours of any accident involving a rail transit vehicle or taking place on property used by rail transit agency if the accident:(1) results in a fatality at the scene;(2) results in one or more persons suffering serious injury;(3) results in substantial damage from a collision involving a rail transit vehicle;(4) results in an evacuation for life safety reasons;(5) is a collision at a grade crossing resulting in serious injury or a fatality;(6) is a main-line or yard derailment;(7) is a collision with an individual resulting in serious injury or a fatality;(8) is a collision with an object resulting in serious injury or a fatality;(9) is a runaway train;(10) is a fire resulting in a serious injury or a fatality; or(11) is a collision between rail transit vehicles.(b) If an accident involving a rail transit vehicle or taking place on property used by rail transit agency results in a fatality away from the scene of the accident but within 30 days after the accident, the rail transit agency shall notify the department within two hours of the confirmation of the death of the individual.(c) A rail transit agency that shares track over the general railroad system of transportation and is subject to the Federal Railroad Administration notification requirements, shall notify the department within two hours of an incident for which the rail transit agency must notify the Federal Railroad Administration.(d) A rail transit agency must track and report to FTA each incident that does not qualify for reporting under subsection (a) of this section and that results in one or more non-serious injuries that require medical transportation from the incident scene or that results in non-collision related damage to equipment, rolling stock, or infrastructure that disrupts operation. The report must be filed within 30 days after the date of the incident.(e) A rail transit agency must track and make the resulting information available when requested by the department or FTA any event that does not qualify for reporting under subsection (a), (b), or (d) of this section.(f) Notification to the department under this section must be provided in the method specified by the department in the State Safety Oversight Program Standard.</content><note type="source"><p>Source Note: The provisions of this §7.89 adopted to be effective February 19, 2020, 45 TexReg 1041; amended to be effective May 15, 2024, 49 TexReg 3372.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scE/s7.90"><num value="7.90">§7.90</num><heading>Accident Investigations</heading><content>(a) The department will investigate any accident that is required to be reported under §7.89(a) or (b) of this subchapter (relating to Event Notification).(b) The department may authorize the rail transit agency to conduct the investigation on the department's behalf or may join the investigation being conducted by the National Transportation Safety Board through the NTSB's Party System.(c) If the department authorizes the rail transit agency to conduct the investigation, all personnel and contractors in the investigation must be certified in accordance with the Public Transportation Safety Certification Training Program provided by the U.S. Department of Transportation, and department-approved procedures shall be followed.(d) An investigation conducted by a rail transit agency shall be documented in a final report and submitted to the department within 30 days after the date of the accident. The final report must be in the form prescribed in the department's State Safety Oversight Program Standard.(e) If the department does not agree with the rail safety agency's accident report, the department will conduct an accident investigation and will issue a separate accident report.(f) The department may conduct an independent accident investigation for any accident required to be reported under §7.89(a), (b), or (d) of this subchapter. The rail transit agency shall provide all information and access to all property necessary for the department to conduct the investigation. The department's investigation report will be submitted to the rail transit agency within 45 days after the date of the completion of the report.(g) If the National Transportation Safety Board conducts the accident investigation, the department and the rail transit agency shall cooperate and provide information to the board when requested.</content><note type="source"><p>Source Note: The provisions of this §7.90 adopted to be effective February 19, 2020, 45 TexReg 1041; amended to be effective May 15, 2024, 49 TexReg 3372.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scE/s7.91"><num value="7.91">§7.91</num><heading>Corrective Action Plan</heading><content>(a) Each rail transit agency shall develop a corrective action plan for:(1) results from investigations in which identified causal and contributing factors are determined by the rail transit agency or the department to require corrective actions; and(2) findings from safety reviews performed by the department that require corrective action.(b) Each corrective action plan must identify the action to be taken by the rail transit agency, an implementation schedule, and the individual or department responsible for implementation of the plan.(c) The department will review the corrective action plan within 30 days after the date of receipt. If a plan is not approved, the department will work with the rail transit agency to develop appropriate corrective action plans.(d) The rail transit agency shall provide the department with verification that corrective actions have been implemented, as described in the corrective action plan, or that proposed alternate actions will be implemented, subject to department review and approval.(e) If the rail transit agency disputes the department's decision related to a corrective action plan, the rail transit agency shall submit an application for administrative review under §7.93 of this subchapter (relating to Administrative Review) not later than 30 days after the date of receipt of the written decision.(f) Failure to complete a corrective action plan is a violation under this subchapter.</content><note type="source"><p>Source Note: The provisions of this §7.91 adopted to be effective February 19, 2020, 45 TexReg 1041; amended to be effective May 15, 2024, 49 TexReg 3372.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scE/s7.92"><num value="7.92">§7.92</num><heading>Administrative Actions by the Department</heading><content>(a) If the department determines that a rail transit agency violates this subchapter, 49 C.F.R. Part 674.27, or Transportation Code, Chapter 455, the department may initiate an administrative action.(b) The department will notify the rail transit agency in writing of any findings of violations.(c) Notification under subsection (b) of this section will specify each violation identified by the department, the administrative action to be taken by the department, the compliance action needed to address the violation, and the information concerning the process for requesting administrative review of the department's determination.(d) Within 45 days after the date of receipt of notification under subsection (b) of this section, the rail transit agency shall submit documentation showing compliance with the action needed to address the violation or shall request administrative review under §7.93 of this subchapter (relating to Administrative Review).(e) Failure to act as required by subsection (d) of this section will lead to the escalation of an enforcement action under §7.94 of this subchapter (relating to Escalation of Enforcement Action) and may lead to the removal of the department's approval of the rail transit agency's public transportation agency safety plan.</content><note type="source"><p>Source Note: The provisions of this §7.92 adopted to be effective February 19, 2020, 45 TexReg 1041; amended to be effective May 15, 2024, 49 TexReg 3372.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scE/s7.93"><num value="7.93">§7.93</num><heading>Administrative Review</heading><content>(a) If a rail transit agency disagrees with a decision by the department regarding the corrective action plan under §7.91 of this subchapter (relating to Corrective Action Plan) or a violation finding under §7.92 of this subchapter (relating to Administrative Actions by the Department), the rail transit agency may file a request for an administrative review with the executive director.(b) The request for administrative review must:(1) be in writing; and(2) specify the reasons that the department's action is in error and provide evidence that supports the rail transit agency's position.(c) The executive director or the executive director's designee, who is not below the level of division director, will make a final determination on the appeal within 60 days after the date the executive director receives the request for the appeal and will notify the rail transit agency of the determination. If the final determination upholds the department's decision under §7.91 of this subchapter or finding under §7.92 of this subchapter, the executive director or the executive director's designee will send the final determination to the rail transit agency stating the reason for the decision and setting a deadline for compliance with the department's violation notice or the corrective action plan.(d) The determination of executive director or the executive director's designee under subsection (c) of this section is final. The rail transit agency is not entitled to a contested case hearing and has no right to appeal the decision of the executive director or the executive director's designee.(e) Failure of a rail transit agency to comply with a deadline provided by the executive director or the executive director's designee under subsection (c) of this section may result in the rescission of the department's approval of the rail transit agency's public transportation agency safety plan and the department may petition a court of competent jurisdiction to halt the operation of the rail transit agency's rail fixed guideway system program.</content><note type="source"><p>Source Note: The provisions of this §7.93 adopted to be effective February 19, 2020, 45 TexReg 1041; amended to be effective May 15, 2024, 49 TexReg 3372.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scE/s7.94"><num value="7.94">§7.94</num><heading>Escalation of Enforcement Action</heading><content>(a) If a rail transit agency fails to comply with an administrative action notification, the department will notify the executive director.(b) The executive director will notify the rail transit agency's governing body of the violation and the failure of the rail transit agency's correction of the violation.(c) Within 45 days after the date on which the rail transit agency's governing body receives notice under subsection (b) of this section, the governing body shall provide to the executive director evidence that the violation has been resolved.(d) If the rail transit agency's governing body is unable to show that the corrective action has been satisfactorily completed, the department shall rescind approval of the rail transit agency's public transportation agency safety plan.(e) If the department rescinds approval of a rail transit agency's public transportation agency safety plan, the department may petition a court of competent jurisdiction to halt the operation of the rail transit agency's rail fixed guideway system program.</content><note type="source"><p>Source Note: The provisions of this §7.94 adopted to be effective February 19, 2020, 45 TexReg 1041; amended to be effective May 15, 2024, 49 TexReg 3372.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scE/s7.95"><num value="7.95">§7.95</num><heading>Emergency Order to Address Imminent Public Safety Concerns</heading><content>(a) Notwithstanding §7.92 of this subchapter (relating to Administrative Actions by the Department), §7.93 of this subchapter (relating to Administrative Review), and §7.94 of this subchapter (relating to Escalation of Enforcement Action), if there is good cause for the executive director, or the executive director's designee, to believe that the operations of a rail transit agency poses an imminent threat to the safety of the general public, the executive director or the executive director's designee immediately will notify the governing body of the rail transit agency.(b) If the rail transit agency is unable to immediately eliminate the threat identified under subsection (a) of this section, the executive director will rescind approval of the public transportation agency safety plan and order the rail transit agency to cease all operations of its rail fixed guideway public transportation system until the rail transit agency eliminates the threat.(c) If the rail transit agency fails to cease operation of its rail fixed guideway public transportation system in accordance with an order issued under subsection (b) of this section, the department may seek a temporary injunction to enforce the executive director's order.</content><note type="source"><p>Source Note: The provisions of this §7.95 adopted to be effective February 19, 2020, 45 TexReg 1041; amended to be effective May 15, 2024, 49 TexReg 3372.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scE/s7.96"><num value="7.96">§7.96</num><heading>Admissibility; Use of Information</heading><content>The data collected and the report of any investigation conducted by the department or a contractor acting on behalf of the department, or any part of a system security plan or safety program plan that concerns security for the system, may not be admitted in evidence or used for any purpose in any action or proceeding arising out of any matter referred to in an investigation except in an action or a proceeding instituted by the state.</content><note type="source"><p>Source Note: The provisions of this §7.96 adopted to be effective February 19, 2020, 45 TexReg 1041.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c7/scF"><num value="F">SUBCHAPTER F</num><heading>RAILROAD GRADE CROSSINGS</heading><section identifier="/us/state/tx/tac/t43/p1/c7/scF/s7.101"><num value="7.101">§7.101</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise.(1) Active warning device--A traffic control device that is activated by the approach or presence of a train and warns motorists of the approach or presence of the train. The term includes a flashing light signal, automatic gate, or similar device.(2) Crossbuck--A standard highway-rail grade crossing sign designated as Number R15-1, and described in the Texas Manual on Uniform Traffic Control Devices.(3) Department--The Texas Department of Transportation.(4) District--One of the 25 geographical areas in which the department conducts its primary work activities.(5) Grade crossing--The intersection of a railroad and a public roadway at grade.(6) Person--An individual, corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, or any other legal entity.(7) Railroad company--A business operating and maintaining rail transportation of freight or passengers.(8) Retroreflectorized material--Material that reflects light back in the direction of the light source.</content><note type="source"><p>Source Note: The provisions of this §7.101 adopted to be effective October 18, 2012, 37 TexReg 8206.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scF/s7.102"><num value="7.102">§7.102</num><heading>Warning Sign Visibility at Railroad Grade Crossings</heading><content>(a) Purpose. This section provides the guidelines and specifications for the installation and maintenance of reflecting material at all public railroad grade crossings that are not protected by active warning devices, as required by Transportation Code, §471.004.(b) Installation.(1) The department shall affix retroreflectorized material to the back of crossbucks and support posts at all public railroad grade crossings that are not protected by active warning devices in a manner that reflects light from vehicle headlights to focus attention on the presence of such a crossing.(2) Each railroad company owning or operating a grade crossing that is not protected by an active warning device shall permit, by written agreement, department personnel to enter railroad company property at that crossing to affix retroreflectorized material as required under paragraph (1) of this subsection.(3) All new installations or replacements of crossbucks and supports must meet the design standards and retroreflectorized material requirements of the department and the Texas Manual on Uniform Traffic Control Devices for Streets and Highways that are applicable at the time of the installation or replacement, as appropriate. The design standards and retroreflectorized material requirements are available free of charge on request from the department at: Texas Department of Transportation, Rail Division, 125 East 11th Street, Austin, Texas 78701-2483.(c) Maintenance. Subject to subsections (d) and (e) of this section, the maintenance of crossbucks, support posts, and retroreflectorized material is the responsibility of the railroad company owning or operating the crossing.(d) Initial cost. The initial cost of affixing the retroreflectorized material will be paid from money appropriated to the department for the purpose of installing safety devices at public grade crossings.(e) Maintenance costs. The costs of maintaining the retroreflectorized material installed under this section is the responsibility of:(1) the department if the crossing is on a public roadway that is designated as part of the state highway system; or(2) the city or county government that is responsible for the maintenance of the public roadway if the crossing is on a public roadway that is not designated as part of the state highway system.</content><note type="source"><p>Source Note: The provisions of this §7.102 adopted to be effective October 18, 2012, 37 TexReg 8206.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scF/s7.103"><num value="7.103">§7.103</num><heading>Dismantling Active Warning Devices at Railroad Grade Crossings</heading><content>(a) Purpose. This section implements Transportation Code, §471.005, which provides that a person may not dismantle an active warning device at a grade crossing on an active rail line, if any part of the cost of the active warning device was originally paid from public funds, unless the person:(1) obtains a permit from the governmental entity that maintains the roadway at the intersection with the rail line; and(2) pays to that governmental entity an amount equal to the present salvage value of the active warning device, as determined by the governmental entity.(b) Exception. This section does not apply to a railroad company that is classified as a Class I or Class II railroad by the Surface Transportation Board.(c) Active rail line. For the purposes of this section, "active rail line" refers to any railroad tracks that are:(1) classified by the United States Department of Transportation to carry freight or passenger trains; and(2) currently being used and maintained by a railroad company.(d) Request for determination. A person desiring to dismantle an active warning device at a grade crossing may submit to the district office of the district in which the warning device is located a request for the department to determine:(1) which governmental entity is responsible for maintaining the roadway at which the warning device is located; and(2) whether any part of the cost of the warning device was originally paid from public funds.(e) Permit application. An applicant for a permit to dismantle an active warning device located at the intersection of a rail line with a roadway maintained by the department must submit an application, on a form prescribed by the department, to the district office of the district in which the device is located. The application must be accompanied by a statement that justifies the request. If the applicant is a corporation, the application must be accompanied by a resolution from the board of directors certifying the justification.(f) Conditional approval. The district engineer of the district in which the active warning device is located will approve the application, conditioned on payment of salvage value of the equipment, if, based on information provided in the permit application and the accompanying justification and after considering the factors set out by subsection (g) of this section, the district engineer determines that removal of the active warning device would not adversely affect public safety.(g) Factors. In determining if removal of the active warning device would adversely affect public safety, the district engineer will consider:(1) the current and projected average daily vehicle traffic using the grade crossing;(2) the nature or type of vehicle traffic using the grade crossing;(3) the total number and speed of trains conducted through the grade crossing daily;(4) the nature or type of train operations conducted through the grade crossing;(5) the sight distance in each quadrant on the roadway approaches to the grade crossing; and(6) the history of crashes at the grade crossing, including crashes in which trains were involved and in which trains were not involved.(h) Salvage value. After conditional approval of an application under subsection (f) of this section, the department will determine and inform the applicant of the salvage value of the active warning device. The salvage value is the total monetary value that is expected to be derived from the device proposed to be dismantled plus any material that is necessary for the device's operation. The salvage value includes:(1) the depreciated value of:(A) reusable electrical equipment, such as signal controllers, relays, rectifiers, and batteries;(B) equipment, such as signal heads, lenses, signal hoods and backgrounds, light bulbs, crossbuck signs, gate arm mechanisms, gate arms, lights, and counterweights; and(C) track circuit equipment, such as termination shunts, capacitors, chokes, tuned joint couplers, and insulated joints; and(2) the scrap value of items described by paragraph (1) of this subsection and other components, such as signal masts or cantilevers, gate mechanisms, counterweights, signal cabins, and signal cases if there is no reasonable prospect of the sale of those items.(i) Permit issuance. The department will issue a permit for removal of the active warning device after the department receives an amount equal to the salvage value of the device.(j) Appeals.(1) An applicant for a permit under this section may appeal to the director of the department's rail division:(A) the denial of a permit under this section; or(B) the amount of the salvage value of the device determined under subsection (h) of this section.(2) An applicant may appeal an adverse decision of the director of the department's rail division under paragraph (1) of this subsection by filing a petition for an administrative hearing under 43 TAC §§1.21, et seq. (relating to Procedures in Contested Case).</content><note type="source"><p>Source Note: The provisions of this §7.103 adopted to be effective October 18, 2012, 37 TexReg 8206.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scF/s7.104"><num value="7.104">§7.104</num><heading>Maintenance of Railroad Underpasses</heading><content>(a) Definition. In this section, "railroad underpass" means a grade separated structure that allows a roadway to cross under a railroad track.(b) Maintenance responsibilities. The department will pay for the maintenance of railroad underpass substructure units, which consist of the piers, abutments, and wing walls, but exclude any existing timber substructure for approach spans. A railroad company shall pay for the maintenance of the railroad underpass superstructure, including the beams, bearings, deck, waterproofing, and track structure, except as provided in subsection (c) of this section.(c) Payment for repair of damage to superstructure by highway traffic. If a railroad underpass superstructure is damaged by highway traffic, the department will pay the cost of repairs to the extent agreed to by the representative of the railroad company and the district engineer of the district in which the underpass is located. On notification by the railroad company, the department will prepare an agreement for execution and a job set up based on the estimated cost of repairs. The repair work will be performed by railroad forces or under contract, as agreed on by the railroad representative and the district engineer. In an extreme emergency, the railroad company, on approval of the district engineer, may undertake the work before the department and the railroad company execute a formal agreement to cover the proposed repairs. However, the department will not pay for work that is undertaken before the district engineer issues a work order.(d) Applicability limitations. The provisions of this section related to the maintenance of underpass substructure units and the assumption of costs for repair of damage to superstructure caused by highway traffic, apply only to underpass structures constructed or reconstructed after October 28, 1960.</content><note type="source"><p>Source Note: The provisions of this §7.104 adopted to be effective October 18, 2012, 37 TexReg 8206.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scF/s7.105"><num value="7.105">§7.105</num><heading>Tracks Crossing Existing Highways</heading><content>(a) Grade crossing by rail line. Grade crossing of any highway or road by a railroad track is discouraged.(b) Requirements for major routes. The department will allow a track crossing on an interstate highway or other major route only with initial separation of grades. The person requesting the crossing shall pay the total cost of constructing and maintaining such a grade separation.(c) Requirements for other roadways. The department may allow a track grade crossing on a roadway, other than a roadway to which subsection (b) of this section applies, including a frontage road if technically feasible, if the department determines that the anticipated volumes of train and vehicular traffic and other pertinent factors indicate that the crossing will not be unduly hazardous to the traveling public. If a grade crossing is allowed, the person requesting the crossing shall pay all initial costs of crossing pavement, highway adjustment, and crossing warning protection, including active warning devices that the department considers appropriate for the crossing, to assure that the design and function meets applicable safety requirements. Additionally, the department may specify conditions, such as changes in conditions or volumes of vehicular or train traffic, that will require future separation of grades, at no expense to the state.</content><note type="source"><p>Source Note: The provisions of this §7.105 adopted to be effective October 18, 2012, 37 TexReg 8206; amended to be effective June 17, 2020, 45 TexReg 4057.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scF/s7.106"><num value="7.106">§7.106</num><heading>Crossing and Maintenance of Highway-Railroad Grade Crossings</heading><content>(a) Grade crossings. The department, in the expansion, construction, reconstruction, and maintenance of the state highway system, finds it necessary from time to time to cross the tracks of a railroad at grade or to improve existing highway-railroad grade crossings. This section applies to those grade crossings.(b) Responsibilities. The railroad companies shall furnish to the department, free of cost, the necessary right of way, easement, or license for such a grade crossing. In recognition of those rights, the department will pay from available revenues the cost of construction and reconstruction of a highway or farm-to-market road at grade crossings with an existing railroad. The railroad company shall maintain the grade crossing surface over the tracks of the railroad from one end of the railroad ties to the other end. On a new farm-to-market road project, a county is responsible for the clearing of the right of way, including utility line adjustments and cattle guard adjustments, for the segment of the road located in the county.(c) Crossing pavement on existing crossings. On existing highway-railroad grade crossings, the department will pay, from available funds, for renewing the crossing approaches and crossing surface to provide a satisfactory riding surface for highway traffic. Asphalt or asphaltic concrete crossings are generally not acceptable. Full-depth concrete panels extending to the ends of railroad ties for the full crown width of the highway are the standard. Full-depth timber pavement or other more durable materials will be used if the railroad company and the department agree to their use.</content><note type="source"><p>Source Note: The provisions of this §7.106 adopted to be effective October 18, 2012, 37 TexReg 8206.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c7/scG"><num value="G">SUBCHAPTER G</num><heading>OFF-SYSTEM RAIL GRADE SEPARATION STATE FUND PROGRAM</heading><section identifier="/us/state/tx/tac/t43/p1/c7/scG/s7.120"><num value="7.120">§7.120</num><heading>Purpose</heading><content>This subchapter prescribes the policies and procedures for the implementation and administration of the Off-System Rail Grade Separation State Fund Program authorized by Transportation Code, §471.010.</content><note type="source"><p>Source Note: The provisions of this §7.120 adopted to be effective October 15, 2025, 50 TexReg 6685.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scG/s7.121"><num value="7.121">§7.121</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--Texas Transportation Commission.(2) Department--Texas Department of Transportation.(3) Director--Director of the department's Railroad Division.(4) Executive director--The executive director of the department or the executive director's designee.(5) Participating railroad--The railroad company that owns or otherwise has control of the railroad at the location of the project.(6) Program--The Off-System Rail Grade Separation State Fund Program.(7) Project--A project that is eligible for funding under this subchapter.(8) Project sponsor--An entity described by §7.122(b) of this subchapter (relating to Program Eligibility).</content><note type="source"><p>Source Note: The provisions of this §7.121 adopted to be effective October 15, 2025, 50 TexReg 6685.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scG/s7.122"><num value="7.122">§7.122</num><heading>Program Eligibility</heading><content>(a) To be eligible for funding under the program, a project must:(1) be for the construction of a grade separation structure that will either eliminate one or more adjacent at-grade rail-highway crossings or provide a grade-separated pedestrian-rail crossing;(2) be located off the state highway system; (3) increase public safety, enhance economic development, or reduce traffic; and(4) constitute a logical, self-contained unit of work that can be constructed as an independent project whether it is proposed as an independent project or as a part of a larger transportation project.(b) To be eligible to request funding under the program, the project sponsor must be the political subdivision of the state that has jurisdiction over the project's location, authority to undertake the project, and authority to enter into the agreement required under §7.132 of this subchapter (relating to Project Implementation). (c) The crossing may involve either freight or passenger rail.</content><note type="source"><p>Source Note: The provisions of this §7.122 adopted to be effective October 15, 2025, 50 TexReg 6685.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scG/s7.123"><num value="7.123">§7.123</num><heading>Funding and Eligible Costs</heading><content>(a) Funding under the program is subject to the Texas Grant Management Standards developed by the comptroller under the Government Code, Chapter 783.(b) Planning, detailed design activities, environmental, right of way acquisition, and utility adjustments are eligible costs.(c) A cost is not eligible for funding under the program if it:(1) was incurred before the department authorizes work to proceed under the agreement required under §7.132 of this subchapter (relating to Project Implementation); or(2) is related to rail capacity improvements or the addition of mass transit infrastructure. (d) A project may include elements that are not eligible for funding under the program. Funds used to pay for those elements do not qualify as matching funds under §7.124 of this subchapter (relating to Non-State Funding Match).</content><note type="source"><p>Source Note: The provisions of this §7.123 adopted to be effective October 15, 2025, 50 TexReg 6685.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scG/s7.124"><num value="7.124">§7.124</num><heading>Non-State Funding Match</heading><content>(a) In accordance with Transportation Code, §471.010(b), at least 10 percent of the total project costs must be provided by a source other than the state as matching funds, except that the commission may adjust the minimum local matching funds requirement for a project located in an economically disadvantaged county in accordance with Transportation Code, §222.053. (b) Except as provided by this section, the funding match required by this section must be cash provided by or through the project sponsor. The value of donated services will not be accepted as a funding match but may be used to reduce the overall cost of the project.(c) The project sponsor must provide the funding match required by this section before the beginning of project activities for each phase of work.(d) The department's direct costs for the oversight of preliminary engineering and construction of the project are included as a part of the total project costs under subsection (a) of this section.(e) The participating railroad must share in the project cost in accordance with 23 C.F.R. §646.210. This cost share may count as part of the overall non-state funding match requirement.</content><note type="source"><p>Source Note: The provisions of this §7.124 adopted to be effective October 15, 2025, 50 TexReg 6685.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scG/s7.125"><num value="7.125">§7.125</num><heading>Call for Project Nominations</heading><content>(a) Projects will be selected for available program funding through a competitive process.(b) The department will issue a notice of a program call for project nominations that is published in the Texas Register.(c) The notice will include information regarding the required content of the nomination package, the procedures applicable to the program call, and the specific evaluation criteria to be used during the project selection process.</content><note type="source"><p>Source Note: The provisions of this §7.125 adopted to be effective October 15, 2025, 50 TexReg 6685.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scG/s7.126"><num value="7.126">§7.126</num><heading>Nomination Package</heading><content>(a) To nominate one or more projects during a program call, the project sponsor must submit each nomination in the form prescribed by the department. (b) The nomination package must present persuasive evidence of support for the proposed project from the affected communities and, if applicable, include a commitment to provide the non-state funding match required by §7.124 of this subchapter (relating to Non-State Funding Match) or an explanation of the project sponsor's eligibility for a funding match adjustment under Transportation Code, §222.053. (c) A complete nomination package must be received by the department not later than the specified deadline published in the Texas Register. A nomination package that fails to include any of the items specified in this section or the respective program call is considered to be incomplete and will not be considered for funding. (d) The department may request supplemental information as needed to conduct project screening and evaluation.</content><note type="source"><p>Source Note: The provisions of this §7.126 adopted to be effective October 15, 2025, 50 TexReg 6685.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scG/s7.127"><num value="7.127">§7.127</num><heading>Project Evaluation Committee</heading><content>The executive director will appoint a project evaluation committee consisting of department staff to make recommendations for the selection of projects funded under the program.</content><note type="source"><p>Source Note: The provisions of this §7.127 adopted to be effective October 15, 2025, 50 TexReg 6685.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scG/s7.128"><num value="7.128">§7.128</num><heading>Nomination Screening</heading><content>(a) The project evaluation committee will screen each project nomination to determine whether the project is eligible for funding under the program and applicable federal and state law and whether it meets technical standards established by applicable law and accepted professional practice.(b) The department will notify the project sponsor if a project nomination is determined to be ineligible and the reasons for the determination.(c) A request for reconsideration of a finding of ineligibility may be initiated only by email or letter from the project sponsor to the director setting forth reasons in support of a finding of eligibility. The email or letter requesting reconsideration must be received by the director not later than the 15th day after the day that the project sponsor received the department's notification, as established by the return receipt.(d) The determination of the director in response to the request for reconsideration is final.</content><note type="source"><p>Source Note: The provisions of this §7.128 adopted to be effective October 15, 2025, 50 TexReg 6685.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scG/s7.129"><num value="7.129">§7.129</num><heading>Project Evaluation</heading><content>The project evaluation committee will evaluate the public safety, economic development enhancement, traffic reduction, and any other benefit of each nominated project that is determined to be eligible under §7.128(a) of this subchapter (relating to Nomination Screening) based on the specific selection criteria set forth in the program call. Evaluation criteria will be provided for each program call.</content><note type="source"><p>Source Note: The provisions of this §7.129 adopted to be effective October 15, 2025, 50 TexReg 6685.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scG/s7.130"><num value="7.130">§7.130</num><heading>Project Selection and Approval</heading><content>(a) The project evaluation committee will provide project selection recommendations and supporting documentation to the director.(b) The project evaluation committee will recommend that at least 10 percent of the total amount available in a program call go to eligible projects that are located in rural areas, unless the project evaluation committee determines that there are not sufficient eligible project applications to reach 10 percent of that amount.(c) The director will review the recommendations and supporting documentation submitted by the committee and will select projects for funding under the program based on recommendations from the project evaluation committee, consistent with the statutory requirements and the evaluation criteria.(d) The director will recommend projects selected under subsection (c) of this section to the commission for approval.(e) The department will notify the project sponsor whether the project was selected and approved for funding.</content><note type="source"><p>Source Note: The provisions of this §7.130 adopted to be effective October 15, 2025, 50 TexReg 6685.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scG/s7.131"><num value="7.131">§7.131</num><heading>Inclusion of Selected Projects in Planning Documents</heading><content>If a project selected is to be implemented in a metropolitan area, the department will request that the Metropolitan Planning Organization for that area immediately begin the process required to include the selected project in its Transportation Improvement Program.</content><note type="source"><p>Source Note: The provisions of this §7.131 adopted to be effective October 15, 2025, 50 TexReg 6685.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scG/s7.132"><num value="7.132">§7.132</num><heading>Project Implementation</heading><content>(a) In undertaking a project, the project sponsor and the participating railroad must comply with all applicable laws and regulations, including all applicable state procedures and requirements. (b) All projects shall be developed in compliance with the department's current standards and specifications.(c) All project sponsors must enter into with the department an agreement that:(1) includes a commitment from the project sponsor for the required non-state funding, if applicable;(2) describes the total scope and course of project activities; (3) states the maximum amount of the funding provided under this subchapter;(4) designates the department to manage the project on behalf of the project sponsor in accordance with Transportation Code, §471.010(d); and(5) outlines the responsibilities and duties of the parties to the agreement.(d) Before the department will fund any construction activities, the project sponsor must enter into the agreement required by subsection (c) of this section and demonstrate that required opportunities for public involvement have been provided and that all applicable environmental documentation has been completed.(e) Any change to the scope of work specified in the selected nomination package must have the advance written approval of the executive director.(f) The department is responsible for the inspection, final acceptance, and certification of a project.</content><note type="source"><p>Source Note: The provisions of this §7.132 adopted to be effective October 15, 2025, 50 TexReg 6685.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scG/s7.133"><num value="7.133">§7.133</num><heading>Elimination of Project from the Program</heading><content>The executive director may eliminate all or a part of a project from participation in the program if:(1) the project sponsor fails to satisfy any requirement of this subchapter or the agreement required under §7.132 of this subchapter (relating to Project Implementation);(2) implementation of the project would involve a significant deviation from the scope of work in the approved nomination package;(3) the project sponsor withdraws from participation in the project;(4) construction has not been initiated within three years after the date that the project was approved by the commission; or(5) the agreement required under §7.132 of this subchapter (relating to Project Implementation) is not executed within one year after the date that the project was approved by the commission.</content><note type="source"><p>Source Note: The provisions of this §7.133 adopted to be effective October 15, 2025, 50 TexReg 6685.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c7/scG/s7.134"><num value="7.134">§7.134</num><heading>Reporting to the Commission</heading><content>Annually, the department will submit a report to the commission on the project nominations and projects approved for funding.</content><note type="source"><p>Source Note: The provisions of this §7.134 adopted to be effective October 15, 2025, 50 TexReg 6685.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p1/c9"><num value="9">CHAPTER 9</num><heading>CONTRACT AND GRANT MANAGEMENT</heading><subchapter identifier="/us/state/tx/tac/t43/p1/c9/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL</heading><section identifier="/us/state/tx/tac/t43/p1/c9/scA/s9.1"><num value="9.1">§9.1</num><heading>Contract Claims under Government Code, Chapter 2260</heading><content>(a) Purpose. Government Code, Chapter 2260, provides a resolution process for certain contract claims against the state. This section governs the filing, negotiation, and mediation of such a claim.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Claim--A claim for breach of a contract between a vendor and the department.(2) Contract--A written contract, other than a contract specified in §9.2(a)(1) of this subchapter (relating to Contract Claim Procedure), between the department and a vendor for goods or services.(3) Department--The Texas Department of Transportation.(4) Director of contract services--The director of the department's Contract Services Office.(5) Executive director--The executive director of the department or the director's designee.(6) Vendor--An individual, partnership, corporation, or other entity that is a party to a contract with the department.(c) Filing of claim. A vendor may file a notice of claim with the director of contract services within 180 days after the date of the event giving rise to the claim. The claim must contain the:(1) nature of the alleged breach;(2) amount the vendor seeks as damages; and(3) legal theory of recovery.(d) Negotiation.(1) The executive director will begin negotiations with the vendor to resolve the claim. The negotiations will begin no later than the 120th day after the date the claim is received.(2) The negotiation may be written or oral. The executive director may afford the vendor an opportunity for a meeting to informally discuss the disputed matters and provide the vendor an opportunity to present relevant information.(e) Mediation.(1) The department and the vendor may agree to nonbinding mediation. The department will agree to mediation if the executive director determines that the mediation may speed resolution of the claim or otherwise benefit the department.(2) The executive director will appoint a department employee as mediator. The employee must not have had any previous involvement or participation in the administration of the contract or the resolution of the claim.(3) If the vendor objects to the appointment of a department employee as mediator, the department will select and hire a private mediator from outside the department. The costs for the services of a private mediator will be apportioned equally between the department and the vendor.(4) The role of a mediator is limited to assisting the parties in attempting to reach an agreed resolution of the issues.(f) Final offer.(1) The executive director will make a final offer to the vendor within 90 days of beginning negotiations.(2) If the disposition is acceptable to the vendor, the vendor shall advise the director of contract services in writing within 20 days of the date of the final offer. The department will forward an agreed disposition involving payment to the vendor for a final and binding order on the claim.(g) Contested case hearing. If the vendor is dissatisfied with the final offer, or if the claim is not resolved before the 90th day after negotiations begin, the vendor may petition the executive director for an administrative hearing to litigate the unresolved issues in the claim under the provisions of §1.21 et seq. of this title (relating to Procedures in Contested Case).</content><note type="source"><p>Source Note: The provisions of this §9.1 adopted to be effective July 23, 2000, 25 TexReg 6804; amended to be effective December 8, 2005, 30 TexReg 8180; amended to be effective November 15, 2012, 37 TexReg 8977.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scA/s9.2"><num value="9.2">§9.2</num><heading>Contract Claim Procedure</heading><content>(a) Applicability. A claim shall satisfy the requirements in paragraphs (1) - (3) of this subsection.(1) The claim is under a contract entered into and administered by the department, acting in its own capacity or as an agent of a local government, under one of the following statutes:(A) Transportation Code, §22.018 (concerning the designation of the department as agent in contracting and supervising for aviation projects);(B) Transportation Code, §391.091 (concerning erection and maintenance of specific information logo, major area shopping guide, and major agricultural interest signs);(C) Transportation Code, Chapter 223 (concerning bids and contracts for highway projects), subject to the provisions of subsection (c) of this section; or(D) Government Code, Chapter 2254, Subchapters A and B (concerning professional or consulting services).(2) The claim is for compensation, or for a time extension, or any other remedy.(3) The claim is brought by a prime contractor.(b) Pass-through claim; claim and counter claim.(1) A prime contractor may make a claim on behalf of a subcontractor only if the prime contractor is liable to the subcontractor on the claim.(2) Only a prime contractor may submit a claim to begin a claim proceeding under this section. After a claim proceeding has begun the department may make a counter claim.(3) This section does not abrogate the department's authority to file a claim in a court of competent jurisdiction. The procedure for the department to file a claim in a court of competent jurisdiction, including the deadline to file a claim, is set by other law.(c) Claim concerning comprehensive development agreement or certain design-build contracts. A claim under a comprehensive development agreement (CDA) entered into under Transportation Code, Chapter 223, Subchapter E, or under a design-build contract, as defined in §9.6 of this subchapter (relating to Contract Claim Procedure for Comprehensive Development Agreements and Certain Design-Build Contracts), may be processed under this section if the parties agree to do so in the CDA or design-build contract, or if the CDA or design-build contract does not specify otherwise. However, if the CDA or design-build contract specifies that a claim procedure authorized by §9.6 of this subchapter applies, then any claim arising under the CDA, or design-build contract shall be processed and resolved in accordance with the claim procedure authorized by §9.6 of this subchapter and not by this section.(d) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise, except that when used in subsection (c) of this section, the terms claim, comprehensive development agreement, CDA, and design-build contract shall have the meanings given such terms stated in §9.6 of this subchapter.(1) Claim--A claim for compensation, for a time extension, or for any other remedy arising from a dispute, disagreement, or controversy concerning respective rights and obligations under the contract.(2) Commission--The Texas Transportation Commission.(3) Committee--The Contract Claim Committee.(4) Department--The Texas Department of Transportation.(5) Department office--The department district, division, or office responsible for the administration of the contract.(6) Department office director--The chief administrative officer of the responsible department office; the officer shall be a district engineer, division director, or office director.(7) District--One of the 25 districts of the department.(8) Executive director--The executive director of the Texas Department of Transportation.(9) Prime contractor--An individual, partnership, corporation, or other business entity that is a party to a written contract with the state of Texas which is entered into and administered by the department under Transportation Code, §22.018, §391.091, Chapter 223, or Government Code, Chapter 2254, Subchapters A and B.(10) Project--The portion of a contract that can be separated into a distinct facility or work unit from the other work in the contract.(e) Contract claim committee. The executive director or the director's designee shall name the members and chair of a committee or committees to serve at the executive director's or designee's pleasure. The chair may add members to the committee, including one or more district engineers who will be assigned to the committee on a rotating basis, with a preference, if possible, for district engineers of districts that do not have a current contractual relationship with the prime contractor involved in a contract claim.(f) Negotiated resolution. To every extent possible, disputes between a prime contractor and the department's project engineer should be resolved during the course of the contract.(g) Procedure.(1) Exclusive procedure. Except as provided in subsection (c) of this section, a prime contractor shall file a claim under the procedure in this subsection. A claim filed by the prime contractor must be considered first by the committee before the claim is considered in a contested case hearing.(2) Filing claim.(A) The prime contractor shall file a claim after completion of the contract or when required for orderly performance of the contract. For a claim resulting from the enforcement of a warranty, a prime contractor shall file the claim no later than one year after expiration of the warranty period. For all other types of claims, a prime contractor shall file the claim no later than one year after the earlier of the date that the department sends to the contractor notice:(i) that the contractor is in default;(ii) that the department terminates the contract; or(iii) notice of final acceptance of the project that is the subject of the contract.(B) To file a claim, a prime contractor shall file a contract claim request and a detailed report that provides the basis for the claim. The detailed report shall include relevant facts of the claim, cost or other data supporting the claim, a description of any additional compensation requested, and documents supporting the claim. For a request for additional compensation, the prime contractor may not use a method, however denominated, by which the amount requested is determined by subtracting the contractor's bid prices from the contractor's actual performance costs. The prime contractor shall file the claim with the department's construction division, the department engineer under whose administration the contract was or is being performed, or the committee.(C) A claim filed by a prime contractor shall include a certification as follows: I certify that the claim is made in good faith; that the supporting data are accurate and complete to the best of my knowledge and belief; that the amount requested accurately reflects the contract adjustment for which the contractor believes the department is liable; and that I am duly authorized to certify the claim on behalf of the contractor.(D) A defective certification shall not deprive the department of jurisdiction over the claim. Prior to the entry by the department of a final decision on the claim the department shall require a defective certification to be corrected.(E) The construction division or department engineer shall forward the contract claim request and detailed report to the committee.(F) The deadline for the department to file a counter claim is 45 days before the committee holds an informal meeting under paragraph (3) of this subsection.(3) Evaluation of claim by the committee.(A) The committee's responsibility is to gather information, study the relevant issues, and meet informally with the prime contractor if requested. The committee shall attempt to resolve the claim.(B) The committee shall secure detailed reports and recommendations from the responsible department office and may confer with any other department office deemed appropriate by the committee. The committee shall give the prime contractor the opportunity to submit a responsive report and recommendation concerning a counter claim filed by the department.(C) If the department disputes the prime contractor's claim, the committee shall afford the prime contractor an opportunity for a meeting to informally discuss the disputed matters and to provide the prime contractor an opportunity to present relevant information and respond to information the committee has received from the department office. The committee chair, in the chair's sole discretion, may reschedule a meeting. Proceedings before the committee are an attempt to mutually resolve a claim without litigation and are not admissible for any purpose in a formal administrative hearing provided in subparagraph (D)(ii) of this paragraph. All oral communications, reports, or other written documentation prepared by department staff in connection with the analysis of a claim are part of the attempt to mutually resolve a claim without litigation and are also not admissible for any purpose in a formal administrative hearing provided in subparagraph (D)(ii) of this paragraph.(D) The committee chair shall give written notice of the committee's decision on the claim to the department and prime contractor. The department and prime contractor are presumed to receive the decision three days after it is sent by United States mail.(i) If the prime contractor does not object to the committee's decision, the prime contractor shall file a written statement with the committee's chair stating that the prime contractor does not object. The prime contractor shall file the statement no later than 20 days after receipt of the committee's decision. The chair shall then prepare a document showing the settlement of the claim including, when required, payment to the prime contractor, and the prime contractor's release of all claims under the contract. The prime contractor shall sign it. The executive director may approve the settlement or may request the commission to approve the settlement by issuance of an order. The executive director shall then implement the resolution of the claim. If contemplated in the committee's decision, the executive director shall expend funds as specified in the decision. If contemplated in the committee's decision, the executive director shall order the prime contractor to make payment to the department.(ii) If the prime contractor objects to the committee's decision the prime contractor shall file a petition with the executive director no later than 20 days after receipt of the committee's decision requesting an administrative hearing to litigate the claim under the provisions of §§1.21 et seq. of this title (relating to Procedures in Contested Cases).(iii) If the prime contractor fails to file a written petition under clause (ii) of this subparagraph within 20 days of receipt of the committee's decision, the prime contractor waives his right to a contested case hearing. All further litigation of claims on the project or contract by the prime contractor shall be barred by the doctrines of issue and claim preclusion. The chair shall then prepare an order implementing the resolution of the claim under the committee's decision and stating that further litigation on the claim is prohibited. The executive director shall then issue the order and implement the resolution of the claim. If contemplated in the committee's decision, the executive director shall expend funds as specified in the decision. If contemplated in the committee's decision, the executive director shall order the prime contractor to make payment to the department.(4) Decision after contested case hearing. This paragraph applies if a contested case hearing has been held on a claim. The administrative law judge's proposal for decision shall be submitted to the executive director for adoption. The executive director may change a finding of fact or conclusion of law made by the administrative law judge or may vacate or modify an order issued by the administrative law judge. The executive director shall provide a written statement containing the reason and legal basis for any change.(5) This section does not abrogate the department's authority to enforce in a court of competent jurisdiction a final department order issued under the section.(h) Claim forfeiture. A claim against the department shall be forfeited to the department by any person who corruptly practices or attempts to practice any fraud against the department in the proof, statement, establishment, or allowance thereof. In such cases the department shall specifically find such fraud or attempt and render judgment of forfeiture. This subsection applies only if there is clear and convincing evidence that a person knowingly presented a false claim for the purpose of getting paid for the claim.(i) Relation of contract claim proceeding and sanction proceeding.(1) Except as provided in paragraphs (2) and (3) of this subsection, the processing of a contract claim under this section is a separate proceeding.(2) If a contested issue arises that is relevant both to a contract claim proceeding and a sanction proceeding concerning the same contract, the issue shall be resolved in the proceeding that the executive director refers first for a contested case hearing under Chapter 1, Subchapter E of this title (relating to Procedures in Contested Cases). If the issue is decided in the first proceeding that decision shall apply to and be binding in all subsequent department proceedings.(3) This paragraph applies to a contract under which the parties agreed to submit questions which may arise to the decision of a department engineer. If a dispute under the contract leads to a contract claim proceeding or sanction proceeding, the engineer's decision shall be upheld unless it was based on fraud, misconduct, or such gross mistake as would imply bad faith or failure to exercise an honest judgment.</content><note type="source"><p>Source Note: The provisions of this §9.2 adopted to be effective December 7, 2006, 31 TexReg 9749; amended to be effective July 19, 2007, 32 TexReg 4448; amended to be effective September 20, 2012, 37 TexReg 7299; amended to be effective September 19, 2018, 43 TexReg 5996; amended to be effective January 6, 2025, 50 TexReg 189.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scA/s9.3"><num value="9.3">§9.3</num><heading>Protest of Department Purchases under the State Purchasing and General Services Act</heading><content>(a) Purpose. The purpose of this section is to provide a procedure for vendors to protest purchases made by the department. Purchases made by the Statewide Procurement Division of the Comptroller of Public Accounts office on behalf of the department are addressed in 34 TAC Chapter 20.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Act--Government Code, Chapters 2151-2177, the State Purchasing and General Services Act.(2) Commission--The Texas Transportation Commission.(3) Department--The Texas Department of Transportation.(4) Chief Administrative Officer--The Chief Administrative Officer of the department.(5) Statewide Procurement Director--The director of statewide procurement in the procurement division of the department, or other individual as designated by the Chief Administrative Officer.(6) Division--An organizational unit in the department's Austin headquarters.(7) Executive director--The executive director of the department.(8) Interested party--A vendor that has submitted a bid, proposal, or other expression of interest for the purchase involved.(9) Purchase--A procurement action for commodities or non-professional services under the Act.(c) Filing of protest.(1) An actual or prospective bidder or offeror who is aggrieved in connection with the solicitation, evaluation, or award of a purchase may file a written protest. The protest must be received in the office of the Chief Administrative Officer within 10 working days after such aggrieved person knows, or should have known, of the action.(2) The protest must be sworn and contain:(A) the provision of or rule adopted under the Act that the action is alleged to have violated;(B) a specific description of the alleged violation;(C) a precise statement of the relevant facts;(D) the issue to be resolved;(E) argument and authorities in support of the protest; and(F) a statement that copies of the protest have been mailed or delivered to other identifiable interested parties.(d) Suspension of award. If a protest or appeal of a protest has been filed, then the department will not proceed with the solicitation or the award of the purchase until the executive director or his or her designee, not below the level of division director, consults with the Chief Administrative Officer and makes a written determination that the award of the purchase should be made without delay to protect substantial interests of the department.(e) Informal resolution. The Statewide Procurement Director may informally resolve the dispute, including:(1) soliciting written responses to the protest from other interested parties; and(2) resolving the dispute by mutual agreement.(f) Written determination. If the protest is not resolved by agreement, the Statewide Procurement Director will issue a written determination to the protesting party and interested parties which sets forth the reason for the determination. The Statewide Procurement Director may determine that:(1) no violation has occurred; or(2) a violation has occurred and it is necessary to take remedial action which may include:(A) declaring the purchase void;(B) reversing the award; and(C) re-advertising the purchase using revised specifications.(g) Appeal.(1) An interested party may appeal the determination to the executive director. The written appeal must be received in the executive director's office no later than 10 working days after the date of the determination. The appeal is limited to a review of the determination.(2) The appealing party must mail or deliver copies of the appeal to the Statewide Procurement Director and other interested parties with an affidavit that such copies have been provided.(3) The general counsel shall review the protest, the determination, and the appeal, and prepare a written opinion with recommendation to the executive director.(4) The executive director may:(A) issue a final written determination; or(B) refer the matter to the commission for its consideration at a regularly scheduled open meeting.(5) The commission may consider oral presentations and written documents presented by the department and interested parties. The chair shall set the order and the amount of time allowed for presentation. The commission's determination of the appeal shall be adopted by minute order and reflected in the minutes of the meeting.(6) The decision of the commission or executive director shall be final.(h) Filing deadline. Unless the commission determines that the appealing party has demonstrated good cause for delay or that a protest or appeal raises issues significant to procurement practices or procedures, a protest or appeal that is not filed timely will not be considered.(i) Document retention. The department shall maintain all documentation on the purchasing process that is the subject of a protest or appeal in accordance with the retention schedule of the department.</content><note type="source"><p>Source Note: The provisions of this §9.3 adopted to be effective June 21, 1998, 23 TexReg 6257; amended to be effective June 19, 2008, 33 TexReg 4683; amended to be effective January 7, 2010, 35 TexReg 108; amended to be effective March 19, 2014, 39 TexReg 1936; amended to be effective February 18, 2015, 40 TexReg 720; amended to be effective March 15, 2017, 42 TexReg 1152.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scA/s9.4"><num value="9.4">§9.4</num><heading>Civil Rights - Title VI Compliance</heading><content>The department will conduct annual Title VI reviews of its special emphasis program areas (planning, project development, right-of-way, construction and research) and Title VI reviews of cities, counties, consultant contractors, suppliers, universities, colleges, planning agencies, and other subrecipients of Federal-aid highway funds to determine the effectiveness of program area activities at all levels in accordance with Title 42, United States Code, Section 2000d, et seq., and with Title 23, Code of Federal Regulations, Part 200.</content><note type="source"><p>Source Note: The provisions of this §9.4 adopted to be effective February 20, 2000, 25 TexReg 1144; amneded to be effective July 18, 2002, 27 TexReg 6344; amended to be effective January 3, 2013, 37 TexReg 10254.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scA/s9.5"><num value="9.5">§9.5</num><heading>Special Labor Provisions for Public Works Contracts</heading><content>(a) Purpose. Government Code, Chapter 2258, requires payment of the general prevailing rate of per diem wages, including legal holidays and overtime work, in the locality in which work is to be performed for each craft or type of worker needed to execute a public works contract on behalf of the state. This section prescribes the policies and procedures by which the Texas Department of Transportation will ascertain the prevailing rate of wages, and will administer and enforce the prevailing rate of wages as required by Government Code, Chapter 2258.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Area engineer - The chief administrative officer in charge of an area office of the department.(2) Building contract - A contract awarded by the department for the construction or repair of a department building structure, but not designated by the department as a maintenance contract.(3) Commission - The Texas Transportation Commission.(4) Complainant - A worker who files a complaint under this section.(5) Contractor - A firm awarded a public works contract.(6) Department - The Texas Department of Transportation.(7) District engineer - The chief administrative officer in charge of a district of the department.(8) Highway improvement contract - A contract awarded under Transportation Code, Chapter 223, for the improvement of a segment of the state highway system, but not designated by the department as routine maintenance.(9) Prevailing wage rate - The general prevailing rate of per diem wages, including legal holidays and overtime work, in the locality in which work is to be performed for each craft or type of worker needed to execute a public works contract on behalf of the state.(10) Public works contract - A building contract or a highway improvement contract.(c) Determination of prevailing wage rate.(1) Highway improvement contracts.(A) For highway improvement contracts, the department shall adopt prevailing wage rates as prescribed by Government Code, Chapter 2258.(B) For purposes of this paragraph, contributions made or costs reasonably anticipated for bona fide fringe benefits under the Davis-Bacon Act, §1(b)(2), on behalf of workers are considered wages paid to such workers. Whenever the prescribed minimum wage rate in the contract for workers includes a fringe benefit which is not expressed as an hourly rate, the contractor or subcontractors, as appropriate, shall either pay the benefit as stated in the wage determinations or shall pay another bona fide fringe benefit or an hourly cash equivalent.(2) Building contract. For building contracts, the department shall adopt the prevailing wage rate for each job classification as determined by the General Services Commission.(d) Contract procedures.(1) Contract specification. The department shall specify the applicable prevailing wage rates in its public works contracts and in the call for bids for such contracts. The specified rates shall apply as minimum wage rates for contracts. Failure of the department to specify the prevailing wage rate in the call for the contract shall relieve the contractor and any subcontractors from liability under Government Code, Chapter 2258.(2) Contractor responsibility. The contractor is responsible for carrying out the requirements of this section and it shall be the contractor's responsibility to ensure that each subcontractor working on the project complies with these requirements.(3) Rate by class and type. The prevailing wage rate shall be indicated in the contract for each class and type of worker whose services are considered necessary to execute the contract. These rates shall govern as minimum wage rates for the contract and shall be conspicuously posted on the project site by the contractor for inspection by all workers employed on the project.(4) Apprentices and trainees.(A) Apprentices and trainees may work at less than the predetermined minimum wage rate for work they perform when they are employed pursuant to and individually registered in a bona fide apprenticeship or trainee program registered with the United States Department of Labor, Employment and Training Administration. Proof of registration will be submitted to the department.(B) The allowable ratio of apprentices or trainees to journeyman-level employees on the project site in any craft classification shall not be greater than the ratio permitted to contractor or subcontractor under the registered program.(5) Additional classification.(A) This paragraph applies to highway improvement contracts.(B) If the work performed by a worker is not covered by a job classification in the department's wage determination, the contractor or subcontractor shall submit a request to the department for an additional classification with a recommended wage rate and supporting documentation. The recommendations must be based on industry practice and the rate of comparable classifications. The department may modify or disapprove the recommended classification minimum wage rate within 30 days of receipt if the department determines that the recommended classification minimum wage rate is not based on industry practice and the rate of comparable classifications.(C) The additional classification minimum wage rate established by the department will be effective retroactive to the first day on which work is performed in the job classification.(6) Overtime wages. The contractor or subcontractor shall pay overtime wages pursuant to the requirements of the Fair Labor Standards Act, 29 United States Code §201, et seq.(e) Records and inspections.(1) For those projects funded wholly with state funds, the contractor and all subcontractors shall keep, or cause to be kept, copies of weekly payrolls for review by the department. Payroll records should show the name, occupation, number of hours worked each day, and per diem wages paid each worker together with a complete record of all deductions made from those wages. Only deductions made in accordance with the regulations issued by the United States Department of Labor (29 Code of Federal Regulations Part 3) are permitted. The initial payroll for each worker shall also indicate the employee's address and phone number. For those projects funded wholly, or in part, with federal funds, record and inspection requirements as codified in 29 Code of Federal Regulations Part 3 will apply.(2) The contractor and subcontractor shall attach an affidavit to each payroll record certifying that the payroll is an accurate report of the full wages due and paid to each worker employed by the contractor and/or subcontractor.(3) The contractor and subcontractor shall keep originals or copies of canceled payroll checks issued for each payroll record. These canceled checks shall be provided to the department upon request.(4) All payroll records and related canceled checks shall be retained by the contractor and subcontractor for a period of three years after completion of the project.(f) Enforcement.(1) Violation. A contractor or subcontractor in violation of the prevailing wage rate is liable for penalties as set forth in this section.(2) Initiation of proceeding. A proceeding under this section to enforce the prevailing wage rate may be initiated by the filing of a complaint in accordance with paragraph (3) of this subsection or by the department on its own motion subsequent to review of records submitted in accordance with subsection (e) of this section.(3) Filing a complaint. A worker who is not paid the prevailing wage rate specified in the contract for his or her classification may file a complaint with the department's area engineer responsible for monitoring the project's completion. A complaint involving a building contract may be filed with the responsible area engineer or with the director of the department's Maintenance Division. The complainant shall provide, in writing, the following information:(A) name, phone number, and address;(B) employer;(C) job classification;(D) period when violation occurred and daily work hours during the period;(E) pay rate received and amount due; and(F) any information necessary to support the complaint.(4) Investigation. Within five days of receipt of a complaint, including necessary supporting information, or at any time upon its own motion, the department will provide written notice to the contractor or subcontractor of an alleged violation. The contractor or subcontractor shall have ten days in which to respond in writing to the information presented against it.(5) Good cause determination.(A) The director of the department's Construction Division shall determine, within 30 calendar days of the date a complaint is filed whether good cause exists to believe that a contractor or subcontractor has committed a violation of the contract's prevailing wage rate requirements. Such determination will be based upon information submitted by the complainant, the contractor or subcontractor, and in accordance with subsection (e) of this section. The department shall provide written notice of its determination to the contractor and/or subcontractor and to the complainant. The department shall retain any amount due under the contract pending a final determination of the violation.(B) For building contracts, the determination of good cause shall be made by the director of the department's Maintenance Division.(6) Discrimination. A contractor or subcontractor shall not discriminate against any employee filing a complaint under the provisions of Government Code, Chapter 2258.(7) Appeal. If the department determines that good cause does not exist, the complainant may file an appeal in accordance with §1.21 et seq. of this title (relating to Procedures in Contested Cases).(8) Resolution. If the department provides written notice to the parties that good cause exists, the parties shall have 14 days from the date of the written determination to voluntarily resolve the wage dispute by written agreement. If the parties fail to voluntarily resolve the dispute, the issue of the alleged violation, any penalties owed to the department, and any amounts owed to the worker shall be submitted to binding arbitration in accordance with the provisions of Civil Practice and Remedies Code, Chapter 171. The department is not a party to the arbitration proceeding.(9) Reimbursement.(A) If the arbitrator determines that a violation of this section occurred and awards backpay, the department shall use any amounts retained under this subsection to reimburse the worker and collect any penalties due under subsection (g) of this section. The department shall issue a check to the complainant within 30 days after receiving the arbitrator's decision.(B) If the worker and the contractor or subcontractor voluntarily resolve the wage dispute, a signed written agreement which specifies the terms of the agreement shall be submitted to the director of the department's Construction Division. If the agreement calls for backpay, a signed statement from the worker which acknowledges receipt of the backpay must be attached to the agreement. The department shall release any amounts retained within seven days of receiving this information.(g) Penalties. A contractor or subcontractor who violates the prevailing minimum wage requirements of a public works contract is liable to the department for a penalty of $60 for each worker employed, for each calendar day, or portion thereof, such worker is paid less than the minimum wage rate stipulated in the contract. The money collected under this subsection shall be used by the department to offset the costs incurred in the administration of this section.</content><note type="source"><p>Source Note: The provisions of this §9.5 adopted to be effective August 19, 1994, 19 TexReg 6120; amended to be effective February 20, 2000, 25 TexReg 1145; amended to be effective January 2, 2002, 26 TexReg 11047.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scA/s9.6"><num value="9.6">§9.6</num><heading>Contract Claim Procedure for Comprehensive Development Agreements and Certain Design-Build Contracts</heading><content>(a) Purpose. This section concerns processing and resolution of a claim under Transportation Code, §201.112 that arises under a comprehensive development agreement (CDA) or design-build contract.(b) Applicability.(1) The executive director may enter into a CDA or design-build contract containing a claim procedure and provisions authorized by this section. When a claim arises under a CDA or design-build contract containing a claim procedure authorized by this section, the requirements of this section apply, §9.2 of this subchapter (relating to Contract Claim Procedure) does not apply, and the parties shall follow the claim procedure contained in the CDA or design-build contract and shall be bound by the outcome of the claim procedure. If a CDA or design-build contract does not contain a claim procedure authorized by this section, either by express reference to this section or by inclusion of provisions required or permitted by this section, then a claim under the agreement shall be processed and resolved under §9.2 of this subchapter.(2) The claim procedure and provisions authorized by this section may be applied to claims that arise under the CDA or design-build contract, related agreements that collectively constitute a CDA or design-build contract, or other agreements entered into with or for the benefit of the department in connection with the CDA or design-build contract. A CDA or design-build contract shall identify the related agreements and any other agreements to which the claim procedure and provisions apply.(3) This section and §9.2 of this subchapter do not affect or impede the department's or the developer's or design-build contractor's rights to seek judicial relief in connection with the following types of actions or proceedings, and the claim procedures and provisions in this section or in §9.2 of this subchapter do not apply to such actions:(A) equitable relief that the department is permitted to seek to the extent allowed by law;(B) mandamus action that a developer or design-build contractor is permitted to bring against the department or the executive director under Government Code, §22.002(c);(C) mandamus relief sought by a developer under Transportation Code, §223.208(e) (relating to termination compensation and related security obligations); or(D) other matters or disputes expressly excluded from the dispute resolution procedures authorized by this section, as specified in the CDA or design-build contract or other related agreement between the department and the developer or design-build contractor that is part of the CDA or design-build contract.(c) Definitions. The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Claim--A claim for compensation, or other dispute, disagreement, or controversy concerning respective rights, obligations, and remedies under the CDA or design-build contract, or under related agreements that collectively constitute a CDA or design-build contract or other agreements entered into with or for the benefit of the department in connection with the CDA or design-build contract, including any alleged breach or failure to perform.(2) Comprehensive development agreement (CDA)--An agreement with a developer that, at a minimum, provides for the design and construction, reconstruction, extension, expansion, or improvement of a project described in Transportation Code, §223.201(a), and may also provide for the financing, acquisition, maintenance, or operation of such a project. A CDA is also authorized under Transportation Code, §91.054 (rail facilities). A CDA includes related agreements that collectively constitute a CDA or other agreements entered into with or for the benefit of the department in connection with the CDA.(3) Department--The Texas Department of Transportation.(4) Design-build contract--An agreement with a design-build contractor for a highway project with estimated total project costs of $500 million or more that includes both design and construction services for the construction, expansion, extension, related capital maintenance, rehabilitation, alteration, or repair of the highway project.(5) Design-build contractor--A partnership, corporation, or other legal entity or team that enters into a design-build contract with the department.(6) Developer--The private entity or entities that enter into a CDA with the department.(7) Disputes board--A group of one or more individuals appointed under the terms of a CDA or design-build contract to fairly and impartially consider and decide a claim between the department and a developer or design-build contractor.(8) Disputes board error--One or more of the following actions:(A) a disputes board acted beyond the limits of its authority established under subsection (b)(3) of this section;(B) a disputes board failed, in any material respect, to properly follow or apply the procedure for handling, hearing and deciding a claim established under the CDA or design-build contract and the failure prejudiced the rights of a party;(C) a disputes board decision was procured by, or there was evident partiality by a disputes board member due to a conflict of interest (which may be defined in the CDA or design-build contract), misconduct (which may be defined in the CDA or design-build contract), corruption, or fraud; or(D) any other error that the parties agree may be the subject of a contested case hearing, as set out in the CDA or design-build contract.(9) Executive director--The executive director of the Texas Department of Transportation.(10) Party--The department, or a developer or design-build contractor who has entered into a CDA or design-build contract with the department. The department and the developer or design-build contractor are together referred to as the "parties."(11) SOAH--State Office of Administrative Hearings.(d) Mandatory requirements. A CDA or design-build contract that authorizes the use of a claim procedure authorized by this section shall include (or incorporate by reference) provisions substantially consistent with the provisions in this subsection, but such provisions need not apply to claims excluded from the claim procedure under subsection (b)(3) of this section.(1) A claim under the CDA or design-build contract that is not resolved by the informal dispute resolution process set forth in the CDA or design-build contract shall be referred to a disputes board for rendering of a disputes board decision on the claim.(2) The processing of a claim shall include a mandatory informal dispute resolution process, such as mediation, and a mandatory dispute resolution procedure using a disputes board.(3) The party making a claim shall include in its notice of the claim a certification by an authorized or designated representative to the effect that:(A) the claim is made in good faith;(B) to the current knowledge of the party, except as to matters stated in the notice of claim as being unknown or subject to discovery, the supporting data is reasonably believed by the party to be accurate and complete, and the description of the claim contained in the certification accurately reflects the amount of money or other right, remedy, or relief to which the party asserting the claim reasonably believes it is entitled; and(C) the representative is duly authorized to execute and deliver the certificate on behalf of the party.(4) The certification required under paragraph (3) of this subsection, if defective, shall not deprive a disputes board of jurisdiction over the claim. Prior to the entry by the disputes board of a final decision on the claim, the disputes board shall require a defective certification to be corrected.(e) Permissive requirements. A CDA or design-build contract that provides for a claim procedure authorized by this section may include (or incorporate by reference) any or all of the provisions in this subsection, or provisions substantially consistent with them, and other terms and conditions regarding claim resolution that are not contrary to the mandatory requirements of this section.(1) The executive director shall adopt the decision of a disputes board as a ministerial act, subject to a party's right to request a contested case hearing in accordance with the terms of the CDA or design-build contract as to whether disputes board error occurred.(2) A decision by a disputes board, upon completion of the procedure required in Transportation Code, §201.112, this section, and in the CDA or design-build contract, is final, conclusive, binding upon, and enforceable against the parties, subject to any appeals allowed by the CDA or design-build contract or this section.(3) A disputes board, upon issuing a decision on a claim, is authorized to direct that an award be paid from the proceeds of any trust or other pool of project funds that the CDA or design-build contract provides shall be available for payment of such claims.(4) The executive director's discretion or actions in connection with the resolution of a claim are limited or may be purely ministerial in certain circumstances, including:(A) adoption of the disputes board's decision absent disputes board error;(B) referral of a disputes board decision to SOAH to determine whether disputes board error occurred; and(C) issuance of a final order based on the SOAH administrative law judge's proposal for decision.(5) Certain claims may be categorized and treated by the parties as expedited claims, and informal resolution procedures shall be expedited for such claims.(6) Certain claims may be categorized and treated by the parties as small claims, and informal resolution procedures shall be expedited for such claims.(7) The parties may execute a related disputes board agreement, or similar agreement, which shall be part of the CDA or design-build contract and which may govern all aspects of the creation of and procedures to be followed by a disputes board.(8) The evidence presented to a SOAH administrative law judge in a hearing regarding a claim, and to the Travis County District Court in any appeal, may include: the disputes board's written findings of fact, conclusions of law, and decision; any written dissenting findings, recommendation, or opinions of a disputes board member; all submissions to the disputes board by the parties; and an independent engineer's written evaluations, opinions, findings, reports, recommendations, objections, decisions, certifications, or other determinations, if any, delivered to the parties pursuant to the CDA or design-build contract and related to the claim under consideration.(9) Certain decisions, orders, or determinations of the executive director may be deemed to have been issued as of a certain date, or after a prescribed number of days, and setting out the parameters of the deemed decision, order, or determination.(10) The parties are authorized and required to comply with all or certain categories of interim orders of the disputes board, including discovery and procedural orders.(11) Except as agreed to by the parties in writing, a disputes board shall have no power to alter or modify any terms or provisions of the CDA or design-build contract, or to render any award that, by its terms or effects, would alter or modify any term or provision of the CDA or design-build contract. Notwithstanding the prior sentence, a disputes board decision that contains error in interpretation or application of a term or provision of the CDA or design-build contract but does not otherwise purport to alter or modify terms or provisions of the CDA or design-build contract may not be appealed on grounds of such error; and such error does not deprive the disputes board of power or authority over the claim.(12) A developer's claim for termination compensation, or to enforce the department's security obligations that secure payment of termination compensation, is not to be resolved under any dispute resolution procedure in the CDA. Rather, a developer may exercise its rights under Transportation Code, §223.208(e) (relating to Terms of Private Participation) by seeking mandamus against the department.(13) At all times during the processing of a contract claim, the developer or design-build contractor and its subcontractors shall continue with the performance of the work and their obligations, including any disputed work or obligations, diligently and without delay, in accordance with the CDA or design-build contract, except to the extent enjoined by order of a court or otherwise ordered or approved by the department in its sole discretion.(f) Pass-through claim. A CDA or design-build contract may provide that a developer or design-build contractor who is a party to a CDA or design-build contract with the department may make a claim on behalf of a subcontractor. In order to make such a claim the developer or design-build contractor must be liable to the subcontractor on the claim.(g) Mandatory requirements concerning disputes board. A CDA or design-build contract that authorizes the use of a disputes board shall include (or incorporate by reference) provisions substantially consistent with the provisions in this subsection.(1) A disputes board is not a supervisory, advisory, or facilitating body and has no role other than as expressly described in the CDA or design-build contract, including, if applicable, any disputes board agreement.(2) A disputes board member shall not have a financial interest in the CDA or design-build contract, in any contract or the facility that is the subject of the CDA or design-build contract, or in the outcome of any claim decided under the CDA or design-build contract, except for payments to that member for services on the disputes board. Any person appointed as a disputes board member shall disclose to the parties any circumstances likely to give rise to justifiable doubt as to such disputes board member's impartiality or independence, including any bias or any financial or personal interest in the result of the dispute resolution or any past or present relationship with the parties or their representatives, or developer's subcontractors and affiliates.(3) The scope of a SOAH contested case hearing on an appeal of a disputes board decision is limited solely to whether disputes board error occurred.(h) Punitive damages. A disputes board shall have no power or jurisdiction to award punitive damages.(i) Permissive requirements concerning disputes board. A CDA or design-build contract that authorizes the use of a disputes board may include (or incorporate by reference) any or all of the provisions in this subsection, or provisions substantially consistent with them, and other terms and conditions regarding the disputes board that are not contrary to the specific requirements of this section.(1) Each party shall endeavor to have a standing list of candidates from which to select a disputes board member. The CDA or design-build contract may specify the qualifications to be a board member, the procedure by which a party nominates a person to the list of candidates, and the method by which the other party may review and object to a proposed candidate. All disputes board members are chosen from the list of candidates of the department or of the developer or design-build contractor.(2) A disputes board conducts its proceedings in accordance with procedural rules specified in the CDA or design-build contract. The disputes board may allow for discovery similar to that allowed under the Texas Rules of Civil Procedure, and the admission of evidence conforming to the Texas Rules of Evidence, but may allow for exceptions to or deviations from such requirements and rules.(3) The parties may jointly modify the procedure applicable to the disputes board's proceedings, under the provisions of the CDA or design-build contract.(4) During the period that a disputes board member is serving on a disputes board, neither party may communicate ex parte with that member. A party may not communicate ex parte with a person on its list of candidates to be a disputes board member regarding the substance of a dispute.(5) Each party is responsible for paying one-half the costs of all facilities, fees, support services costs, and other expenses of a disputes board.(6) A disputes board does not have the authority to order that one party compensate the other party for attorney's fees and expenses.(j) Permissive requirements on a contested case hearing. A CDA or design-build contract that authorizes the use of a contract claim procedure authorized by this section may include (or incorporate by reference) any or all of the provisions in this subsection, or provisions substantially consistent with them, and other terms and conditions regarding a contested case hearing that are not contrary to the specific requirements of this section.(1) The executive director's referral of a developer's request to SOAH for a contested case hearing as to whether a decision by a disputes board was affected by disputes board error is a purely ministerial act.(2) If a determination is made after a contested case hearing that disputes board error occurred, the dispute shall be remanded to a disputes board for further consideration, except that if the error is lack of authority to hear the claim, the decision of the disputes board shall be vacated.(3) The executive director's issuance of a final order following a contested case hearing is a purely ministerial act, and that if by inaction the executive director does not issue a final order within the time frame established by the CDA or design-build contract, then a final order in a form recommended by the administrative law judge shall be deemed to be automatically issued.(4) As allowed by Government Code, §2001.144 and §2001.145, an order issued by the executive director after a contested case hearing is final on the date issued and no motion for rehearing is required to appeal the final order.(5) An executive director's order remanding a dispute to a disputes board, or an executive director's order implementing a disputes board decision following a contested case hearing before SOAH, are subject to judicial review under Government Code, Chapter 2001, under the substantial evidence rule. Review is limited to whether disputes board error occurred.(k) Other department rules on a contested case hearing.(1) The parties may agree in the CDA or design-build contract to adopt, modify or not follow procedural provisions, deadlines, evidentiary rules, and any other matters set out in Chapter 1, Subchapter E of this title (relating to Procedures in Contested Cases).(2) In the event of any conflict or difference between the procedures set out in this section or a CDA or design-build contract, and in Chapter 1, Subchapter E, of this title, the procedures in this section or the CDA or design-build contract shall govern with respect to any proceeding before SOAH.(3) In the event of an appeal to SOAH of a disputes board decision:(A) the department shall present a copy of this section to SOAH as a written statement of applicable rules or policies, under Government Code, §2001.058(c); and(B) the parties shall request that the administrative law judge modify and supplement SOAH contested case procedures as necessary or appropriate, and consider this section, consistent with 1 TAC §155.3 (relating to Application and Construction of this Chapter).(C) the parties shall provide the administrative law judge with a stipulation that the substantive provisions, scope of review, and procedural provisions of this section and the CDA or design-build contract shall apply to and govern the contested case proceeding before SOAH, consistent with 1 TAC §155.417 (relating to Stipulations).(l) Mandamus relief. Nothing in this section shall restrict a developer's or design-build contractor's rights to seek mandamus relief pursuant to Government Code, §22.002(c) if the executive director fails to perform one or more of the ministerial acts set out in this section and included in the CDA or design-build contract as a ministerial act, or any other act specified in the CDA or design-build contract as a ministerial act.(m) Confidential information.(1) The parties may agree that, with respect to the mandatory informal dispute resolution process required under subsection (d)(2) of this section, communications between the parties to resolve a dispute, and all documents and other written materials furnished to a party or exchanged between the parties during any such informal resolution procedure, shall be considered confidential and not subject to disclosure by either party.(2) The parties may agree that with respect to a proceeding before the disputes board, an administrative hearing before an administrative law judge, or a judicial proceeding in court, either or both parties may request a protective order to prohibit disclosure to third persons of information that the party believes is a trade secret, proprietary, or otherwise entitled to confidentiality under applicable law.</content><note type="source"><p>Source Note: The provisions of this §9.6 adopted to be effective December 7, 2006, 31 TexReg 9749; amended to be effective September 15, 2011, 36 TexReg 5948; amended to be effective September 20, 2012, 37 TexReg 7299.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scA/s9.7"><num value="9.7">§9.7</num><heading>Protest of Contract Practices or Procedures</heading><content>(a) Application of section. This section provides a general protest process for the award of a contract for which the rules of the commission do not provide a protest process. For the purpose of the application of this section, a rule that merely provides that a protest, appeal, or other type of request for review may be filed, without establishing any other steps that must be satisfied, does not provide a protest process.(b) Filing of protest.(1) A person who is aggrieved in connection with the solicitation, evaluation, or award of a contract to which this section applies may file a written protest. The protest must be received by the executive director not later than the sixth day after the first day that the aggrieved person knows, or should have known, of the action. A protest that is not filed within the six-day period will not be considered.(2) A protest must be filed in the manner and at the address for submitting protests specified in the solicitation for the contract. If the solicitation does not provide instructions on how to file a protest, a protest must be sent by United States Mail, overnight delivery, or hand delivery, to: Executive Director, Texas Department of Transportation, 125 East 11th Street, Austin, Texas 78701. The time and date of filing the protest is determined by the file stamp affixed by the office of the department that received the protest filed in accordance with this paragraph.(c) Contents of protest. The protest must contain:(1) the provision of the statute or rule that the action is alleged to have violated;(2) a specific description of the alleged violation;(3) a precise statement of the relevant facts;(4) the issue to be resolved;(5) argument and authorities in support of the protest; and(6) a statement that copies of the protest have been mailed or delivered to other identifiable interested parties.(d) Informal resolution. The executive director may refer the protest for alternative dispute resolution under Chapter 1, Subchapter G of this title (relating to Alternative Dispute Resolution). If the protest is resolved by agreement:(1) the agreement will be reduced to writing; and(2) if the solicitation or the award of the contract has been suspended under subsection (e) of this section, the solicitation or award will resume immediately after the agreement is reached.(e) Suspension of solicitation or award. If a protest has been filed, the solicitation or the award of the contract will proceed unless the executive director or, if the commission is to decide the protest, the commission, determines that the delay of the solicitation or award of the contract will not substantially harm the interests of the department.(f) Executive director's recommendation or decision. This subsection applies if the protest is not resolved by agreement. If the commission is to decide the protest, the executive director will deliver to the commission, protesting party, and interested parties identified in the protest a written recommendation for a decision that includes the reasons for the recommendation. If the department, rather than the commission, decides the protest, the executive director will issue a written decision to the protesting party and interested parties identified in the protest that includes reasons for the decision. The executive director may recommend to the commission or may decide, as appropriate, that:(1) no violation has occurred;(2) a violation has occurred, but remedial action is unnecessary; or(3) a violation has occurred and it is necessary to take remedial action that may include:(A) declaring the contract void;(B) reversing the award; or(C) re-advertising the contract using revised specifications.(g) Commission's decision. If the commission is to decide the protest, in addition to the executive director's recommendation provided under subsection (f) of this section, the commission may consider oral presentations and written documents presented by the department, protesting party, or interested parties. The chair shall set the order and the time allowed for presentations. The commission's decision on the protest will be adopted by order and may be made part of the order awarding the contract that is the subject of the protest.(h) Authority to make decision on protest. For the purposes of this section, the commission decides a protest if commission rules provide that the commission awards the contract that is the subject of the protest. The executive director decides the protests on other contracts. A decision of the commission or executive director is final and the protest may not be the subject of a contested case.</content><note type="source"><p>Source Note: The provisions of this §9.7 adopted to be effective November 15, 2012, 37 TexReg 8977.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scA/s9.8"><num value="9.8">§9.8</num><heading>Enhanced Contract and Performance Monitoring</heading><content>(a) The department shall monitor and report to the Texas Transportation Commission, on a quarterly basis, the performance and status of each contract, other than a low-bid construction and maintenance contract, that is valued at $50 million or more or that the department determines constitutes a high-risk to the department.(b) The department immediately shall notify the commission of any serious issue or risk that is identified in a contract and that has not been reported in a quarterly report provided under subsection (a) of this section.(c) This section does not apply to a memorandum of understanding, interagency contract, interlocal agreement, or contract for which there is not a cost.</content><note type="source"><p>Source Note: The provisions of this §9.8 adopted to be effective May 16, 2018, 43 TexReg 3121; amended to be effective November 17, 2021, 46 TexReg 7805.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scA/s9.9"><num value="9.9">§9.9</num><heading>Interlocal Contracts</heading><content>(a) Purpose and applicability. Transportation Code, §201.209 authorizes the department to enter into interlocal contracts with one or more local governments in accordance with Government Code, Chapter 791. The purpose of this section is to increase the efficiency and effectiveness of the department by establishing procedures for contracting with one or more local government agencies to perform governmental functions and services. This section does not apply to contracts governed by Chapter 15, Subchapter E of this title (relating to Federal, State, and Local Participation).(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Governmental functions and services--All or part of a governmental function or service in which the contracting parties are mutually interested.(2) Local government--A county, municipality, special district, or other political subdivision of this state or another state, or a combination of two or more of those entities.(3) Political subdivision--Any corporate and political entity organized under state law.(c) Request. One or more local governments may request the department to perform or receive governmental services or functions.(d) Approval. In approving the interlocal contract, the department will consider:(1) whether the parties individually have the authority to perform the governmental service or function;(2) whether the funding or resources would further the department's duties and responsibilities;(3) whether the project is in the best interest of the state;(4) whether the contract would be consistent with applicable state procurement practices;(5) whether the local government commits in the contract to comply with all federal, state, and department requirements;(6) the need for expeditious project completion;(7) the cost effectiveness of the proposal;(8) the location of the project; and(9) any other considerations relating to the traveling public and the operations of the department.(e) Requirements for services and functions provided to the department.(1) Design. Any plans shall be designed in accordance with the latest department policies, procedures, standards, and guidelines. All plans, specifications, and estimates shall be approved by the department prior to advertisement for bids on the project.(2) Materials. Any materials provided shall be in accordance with department specifications.(f) Contracts. All contracts will include, but not be limited to, the following provisions.(1) General provisions. The contract must:(A) be authorized by the governing body of the local government when required by law; and(B) contain a statement of the purpose, term, and rights and duties of the contracting parties.(2) Right of entry, if applicable. The local government will permit the department or its authorized representative access to the project site to perform all activities required to execute the work.(3) Funding and payment. The contract will include the amount of funding, resource allocation, and payment provisions, and will specify that each party paying for the performance of governmental functions or services must make payments from current revenues available to the paying party. Any payment provision will be in an amount that is the actual cost of providing the services or resources, or the nearest practicable estimate of that cost.(g) Amendments. The parties may amend the contract in the case of significantly changed conditions or other mutually agreed upon changes in the scope of work authorized in the contract. The amendments will set forth the reason for the change and establish the revised participation.(h) Termination. If the local government withdraws from the project after the contract is executed, it shall be responsible for all costs incurred by the department under the contract.</content><note type="source"><p>Source Note: The provisions of this §9.9 adopted to be effective December 5, 2001, 26 TexReg 9915.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c9/scB"><num value="B">SUBCHAPTER B</num><heading>CONTRACTS FOR HIGHWAY PROJECTS</heading><section identifier="/us/state/tx/tac/t43/p1/c9/scB/s9.10"><num value="9.10">§9.10</num><heading>Purpose</heading><content>(a) This subchapter prescribes the policies and procedures governing bidder qualification, bidding, award, and execution of a contract entered under Transportation Code, Chapter 223, Subchapters A-C.(b) As an alternative to using Transportation Code, Chapter 223, Subchapters A-C, and therefore, this subchapter, the department, if the department satisfies the requirements of Transportation Code, §223.001(c), may award under the State Purchasing and General Services Act, Subtitle D, Title 10, Government Code, a contract for certain materials to be used in the construction or maintenance of a highway or for traffic control or safety devices to be used on a highway as a purchase of goods.</content><note type="source"><p>Source Note: The provisions of this §9.10 adopted to be effective November 23, 1994, 19 TexReg 8867; amended to be effective December 12, 1999, 24 TexReg 10901; amended to be effective July 18, 2002, 27 TexReg 6345; amended to be effective December 7, 2006, 31 TexReg 9751; amended to be effective April 20, 2023, 48 TexReg 1968.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scB/s9.11"><num value="9.11">§9.11</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Advertisement--The public announcement required by law inviting bids for work to be performed or materials to be furnished.(2) Alternate bid item--A bid item identified by the department as an acceptable substitute for a regular bid item.(3) Apparent low bidder--The bidder determined to have the numerically lowest total bid as a result of the tabulation of bids by the department.(4) Award--The commission's acceptance of a bid for a proposed contract that authorizes the department to enter into a contract.(5) Bid--The offer of the bidder for performing the work described in the plans and specifications including any changes made by addenda.(6) Bid bond--The security executed by the bidder and the surety furnished to the department to guarantee payment of liquidated damages if the bidder fails to enter into an awarded contract.(7) Bid error--A mathematical mistake by the bidder in the unit bid price entered in the bid.(8) Bid guaranty--The security furnished by the bidder as a guaranty that the bidder will enter into a contract if awarded the work.(9) Bidder--A person that submits a bid for a proposed contract.(10) Bidder's Questionnaire--A prequalification form, prescribed by the department, that reflects detailed equipment and experience data but waives audited financial data.(11) Bidding capacity--The maximum dollar value, as determined by the department, of all of the highway improvement contracts, other than building contracts, that a person may have with the department at any given time.(12) Building contract--A contract entered under Transportation Code, Chapter 223, Subchapter A, for the construction or maintenance of a department building or appurtenant facilities. Building contracts are considered to be highway improvement contracts.(13) Certificate of insurance--A form approved by the department covering insurance requirements stated in the contract.(14) Certification of Eligibility Status form--A notarized form describing any suspension, voluntary exclusion, ineligibility determination actions by an agency of the federal government, indictment, conviction, or civil judgment involving fraud, official misconduct, each with respect to the bidder or any person associated with the bidder in the capacity of owner, partner, director, officer, principal investor, project director/supervisor, manager, auditor, or a position involving the administration of federal funds, covering the three-year period immediately preceding the date of the qualification statement.(15) Commission--The Texas Transportation Commission or authorized representative.(16) Confidential Questionnaire--A prequalification form, prescribed by the department, reflecting detailed financial and experience data.(17) Department--The Texas Department of Transportation.(18) Disadvantaged business enterprise (DBE)--Has the meaning assigned by §9.202(4) of this chapter (relating to Definitions).(19) District engineer--The chief executive officer in each of the designated district offices of the department.(20) Electronic Bidding System (EBS)--The department's automated system that allows bidders to enter and submit their bid information electronically.(21) Electronic vault--The secure location where electronic bids are stored prior to bid opening.(22) Emergency--Any situation or condition of a designated state highway, resulting from a natural or man-made cause, that poses an imminent threat to life or property of the traveling public or which substantially disrupts or may disrupt the orderly flow of traffic and commerce.(23) Executive director--The executive director of the Texas Department of Transportation or the director's designee not below the level of district engineer or division director.(24) Highway improvement contract--A contract entered into under Transportation Code, Chapter 223, Subchapter A, for the construction, reconstruction, or maintenance of a segment of the state highway system or for the construction or maintenance of a building or other facility appurtenant to a building. The term does not include a materials contract.(25) Historically underutilized business (HUB)--Has the meaning assigned by §9.352 of this chapter (relating to Definitions).(26) Joint venture--Any combination of individuals, partnerships, limited liability companies, or corporations submitting a single bid.(27) Letting official--The executive director or any department employee empowered by the executive director to officially receive bids and close the receipt of bids at a letting.(28) Maintenance contract--A contract entered under Transportation Code, Chapter 223, Subchapter A, for the maintenance of a segment of the state highway system. A maintenance contract is considered to be highway improvement contract.(29) Materially unbalanced bid--A bid which generates a reasonable doubt that award to the bidder submitting a mathematically unbalanced bid will result in the lowest ultimate cost to the state.(30) Materials contract--A contract entered under Transportation Code, Chapter 223, Subchapter A, for the purchase of maintenance materials, traffic control devices, or safety devices, as described by Transportation Code, §223.001(b)(2) or (3).(31) Materials supplier's questionnaire--A prequalification form, prescribed by the department, that gathers information, such as company contact, signature authority, and other requirements, to allow a person to bid on a materials contract.(32) Mathematically unbalanced bid--A bid containing lump sum or unit bid items that do not reflect reasonable actual costs plus a reasonable proportionate share of the bidder's anticipated profit, overhead costs, and other indirect costs.(33) Person--An individual, partnership, limited liability company, corporation, or joint venture.(34) Regular bid item--A bid item contained in a proposal form and not designated as an alternate bid item.(35) Small business enterprise (SBE)--Has the meaning assigned by §9.302 of this chapter (relating to Definitions).</content><note type="source"><p>Source Note: The provisions of this §9.11 adopted to be effective November 23, 1994, 19 TexReg 8867; amended to be effective May 25, 1995, 20 TexReg 3574; amended to be effective September 22, 1995, 20 TexReg 7085; amended to be effective December 12, 1999, 24 TexReg 10901; amended to be effective January 4, 2001, 25 TexReg 13007; amended to be effective July 18, 2002, 27 TexReg 6345; amended to be effective June 17, 2004, 29 TexReg 5795; amended to be effective December 7, 2006, 31 TexReg 9751; amended to be effective December 11, 2008, 33 TexReg 10054; amended to be effective January 4, 2017, 41 TexReg 10663; amended to be effective April 20, 2023, 48 TexReg 1968;amended to be effective May 15, 2024, 49 TexReg 3373.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scB/s9.12"><num value="9.12">§9.12</num><heading>Qualification of Bidders</heading><content>(a) Eligibility. To be eligible to bid on a highway improvement contract, other than a building contract, or on a materials contract, potential bidders must satisfy the applicable requirements listed in this section.(1) If the department has accepted from a person a properly completed Confidential Questionnaire, as described in subsection (c) of this section, and audited financial information, as described in subsection (b)(1) of this section, the person is eligible to bid on any project for which the person meets any necessary special technical qualification requirements, has sufficient available bidding capacity, as determined under subsection (e) of this section, and has submitted a properly completed Certification of Eligibility Status form if it is a federal-aid project.(2) A person that has submitted only a Bidder's Questionnaire, as described in subsection (d) of this section, may bid only on a specified project for which the department has waived the requirements of paragraph (1) of this subsection. Such a project is referred to as a waived project and generally has one of the following characteristics:(A) the engineer's estimate for the project is less than $1 million;(B) the project is a maintenance project;(C) the project is an emergency project;(D) the project contains specialty items not normal to the department's roadway projects program; or(E) the project is for the purchase of goods that may be purchased under a materials contract.(3) A bidder that submits only a Materials Supplier's Questionnaire is eligible to bid only on a materials contract, including a materials contract awarded under §9.19 of this subchapter (relating to Emergency Contract Procedures).(b) Financial Information. This section refers to three types of financial information.(1) Audited financial information is information resulting from an examination of the accounting system, records, and financial statements by an independent certified public accountant in accordance with generally accepted auditing standards. Based on the examination, the auditor expresses an opinion concerning the fairness of the financial information in conformity with generally accepted accounting principles. A bidder that submits audited financial information, as required for a Confidential Questionnaire in accordance with subsection (c) of this section, is eligible to bid on all projects for which the bidder has available bidding capacity, as determined under subsection (e) of this section.(2) Reviewed financial information may be used in a Bidder's Questionnaire under subsection (d) of this section. The scope of reviewed financial information is substantially less than audited financial information, and the information is the result primarily of inquiries of company personnel and analytical procedures applied to financial data by an independent certified public accountant. Only negative assurance is expressed by the independent accountant, which means that the independent accountant is not aware of any material modifications that should be made in order for the financial information to conform to generally accepted accounting principles. A bidder that submits reviewed financial information is subject to the limitations described in subsections (d) and (e) of this section for a waived project.(3) Compiled financial information also may be used in a Bidder's Questionnaire under subsection (d) of this section. Compiled financial information only presents information that is the representation of management. No opinion or other assurance is expressed by the independent accountant. A bidder that submits compiled financial information is subject to the limitations described in subsections (d) and (e) of this section for a waived project.(c) Confidential Questionnaire. A potential bidder must satisfy the requirements of this subsection to be eligible to bid on a highway improvement contract, except as provided by subsection (d) of this section.(1) A potential bidder must:(A) submit to the department's Construction Division in Austin 10 days prior to the last day of bid opening a Confidential Questionnaire that includes information, as required by the department, concerning the bidder's equipment and experience as well as financial condition;(B) have a certified public accountant firm that is licensed to practice public accountancy prepare the audited and any other financial information required by the department;(C) satisfactorily comply with any technical qualification requirements determined by the department to be necessary for a specific project; and(D) properly complete the Certification of Eligibility Status form contained in the Confidential Questionnaire for the purpose of bidding on federal-aid projects.(2) Information adverse to the potential bidder contained in the Certification of Eligibility Status form will be reviewed by the department and the Federal Highway Administration, and may result in the bidder being declared ineligible to submit bids.(3) Satisfactory audited financial information will grant a 12-month period of qualification from the date of the financial statement.(4) A three month grace period of qualification, for the purpose of preparing and submitting current audited information, will be granted prior to the expiration date of the financial statement.(5) The department may require current audited information at any time if circumstances develop which are factors that could alter the potential bidder's financial condition, ownership structure, affiliation status, or ability to operate as an on-going concern.(d) Bidder's Questionnaire; Materials Supplier's Questionnaire. To be eligible to bid on a contract under this subsection or on a contract to be awarded under §9.19 of this subchapter (relating to Emergency Contract Procedures), a bidder must:(1) submit to the department's headquarters office in Austin 10 days prior to the date the bid opens, a Bidder's Questionnaire that includes information, as required by the department, concerning a bidder's equipment and experience or for a materials contract, a bidder may submit a Materials Supplier's Questionnaire instead of a Bidder's Questionnaire;(2) submit unaudited and other data as required in the instructions to the questionnaire submitted under paragraph (1) of this subsection;(3) satisfactorily comply with any technical qualification requirements determined by the department to be necessary on a specific project; and(4) for a federal-aid project, properly complete the Certification of Eligibility Status form contained in the questionnaire submitted under paragraph (1) of this subsection. Information adverse to the potential bidder contained in the certification will be reviewed by the department and by the Federal Highway Administration, and may result in the bidder being declared ineligible to submit bids on a federal-aid project.(e) Bidding capacity; available bidding capacity. The department will make its examination and determination based on the information submitted under subsection (c) or (d) of this section, as appropriate, and advise the bidder of its bidding capacity.(1) For a bidder submitting a Confidential Questionnaire and audited financial information, the amount of the bidding capacity will be determined by multiplying the net working capital by a factor determined by the department based on the expected dollar volume of projects to be awarded and the number of bidders prequalified by the department. If this calculation results in a positive amount that is not greater than $2 million, the bidder will receive a bidding capacity of $2 million if the bidder has positive net working capital and the bidder provides documentation of at least two years' experience and four completed projects in the field in which the bidder wishes to bid. Bidding capacity determined under this paragraph applies for any project and is not limited to waived projects.(2) For a bidder submitting a Bidder's Questionnaire with no prior experience in construction or maintenance, or a negative working capital position (i.e., financial statements indicate that current liabilities exceed current assets), will receive a bidding capacity of $1 million for waived projects only.(3) For a bidder submitting a Bidder's Questionnaire and compiled financial information if the principals of the bidder have at least one year experience in construction or maintenance and have satisfactorily completed at least two projects in these fields, the bidding capacity is $1.5 million for waived projects only.(4) For a bidder submitting a Bidder's Questionnaire and compiled financial information and the principals of which have at least two years' experience in construction or maintenance and have satisfactorily completed at least four projects in these fields, the bidding capacity is $2 million for waived projects only. Those bidders possessing more than two years' experience will be granted an additional $500,000 in bidding capacity for each additional year of experience in construction or maintenance, with a maximum bidding capacity of $6 million for waived projects only.(5) For a bidder submitting a Bidder's Questionnaire and reviewed financial information and the principals of which have at least three years of experience in construction or maintenance and have satisfactorily completed at least six projects in these fields, the amount of the bidding capacity will be determined by multiplying the net working capital by a factor determined by the department based upon the expected dollar volume of projects to be awarded and the number of bidders prequalified by the department. In the event that this calculation does not result in an amount greater than $2 million, the bidder will receive a bidding capacity of $2 million. Bidding capacity determined under this paragraph is limited to waived projects only.(6) A bidder's available bidding capacity is determined by the department by subtracting from the bidder's bidding capacity the amount of the estimated cost of the bidder's uncompleted work on department contracts. Bidding capacity does not apply to a materials contract or building contract and an uncompleted materials or building contract does not affect the bidding capacity or available bidding capacity of a bidder.(f) Effect of contract performance. A person's bidding capacity or eligibility to bid on a highway improvement contract may be affected by a decision of the deputy executive director under §9.24 of this chapter (relating to Performance Review Committee and Actions).(g) Affiliated bidders; independence exception. Bidders that the department determines in accordance with §9.27 of this subchapter (relating to Affiliated Entities) are affiliated are not eligible to submit bids for the same project. A bidder that is determined to be affiliated but that can establish independence from the other affiliated bidders may request, in accordance with this subsection, an exception to its ineligibility. Such a request may be made only once during any 12-month period.(1) To request the exception to the department's finding of affiliation, a bidder must submit to the executive director a written request explaining the basis for the exception accompanied by supporting evidence, including an affidavit affirming that the bidder is independent from and not coordinating with the affiliates or any other bidder. The written request must be received not later than the 30th day before the date of the bid opening for which the exception is requested.(2) The department will review the request and supporting evidence provided to determine whether the requester is independent from the other affiliated bidder. In determining independence, the department will consider, in addition to other affiliation criteria:(A) transactions between the potential bidders; and(B) the extent to which the potential bidders share:(i) equipment;(ii) personnel;(iii) office space; and(iv) finances.(3) If the department finds that the bidders are independent, the director of the division reviewing the request will recommend to the executive director that the requesting bidder be granted an exception.(4) The executive director will review the request, supporting evidence, and department's recommendation and will make the final determination on the request. The executive director will send to the bidder the final written determination. An exception granted to the bidder remains in effect for future bid openings unless the exception is revoked under paragraph (5) of this subsection.(5) The granting of an exception under this subsection does not remove the classification of the bidders as affiliated. The department reserves the right to conduct follow-up reviews and revoke the exception if the follow-up reviews indicate that the bidders are no longer independent. A bidder's failure to act independently of its affiliates or other bidder during the period it was granted an exception under this subsection may result in the imposition of sanctions.(6) If bidders classified as affiliates submit bids on the same project, the department reserves the right to reject all bids on that project and relet the contract.(7) Affiliated bidders that are granted an exception under this subsection and that have been sanctioned in accordance with Chapter 10 of this title must meet the exception criteria in that chapter to be eligible to bid.(h) Building contracts. To be eligible to bid on a building contract, a potential bidder must comply only with any requirements contained in the governing specifications applicable to the project.</content><note type="source"><p>Source Note: The provisions of this §9.12 adopted to be effective November 23, 1994, 19 TexReg 8867; amended to be effective September 22, 1995, 20 TexReg 7086; amended to be effective December 12, 1999, 24 TexReg 10901; amended to be effective January 4, 2001, 25 TexReg 13007; amended to be effective June 17, 2004, 29 TexReg 5795; amended to be effective December 11, 2008, 33 TexReg 10054; amended to be effective September 19, 2018, 43 TexReg 5996; amended to be effective April 20, 2023, 48 TexReg 1968; amended to be effective May 15, 2024, 49 TexReg 3373.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scB/s9.13"><num value="9.13">§9.13</num><heading>Notice of Letting and Issuance of Proposal Forms</heading><content>(a) Notice to Contractors. A person may apply to have his or her name placed on a list to receive the Notice to Contractors electronically.(b) Application for notice. The following entities will receive the Notice to Contractors:(1) qualified bidders approved under §9.12 of this subchapter (relating to Qualification of Bidders);(2) disadvantaged business enterprises and historically underutilized businesses; and(3) organizations performing work under supportive service contracts awarded by the commission.(c) Notice of Bids. The department will advertise contracts on the Electronic State Business Daily maintained and operated by the Comptroller of Public Accounts.(d) Proposal form.(1) Proposal form content. A proposal form may include:(A) the location and description of the proposed work;(B) an approximate estimate of the various quantities and kinds of work to be performed or materials to be furnished;(C) a schedule of items for which unit prices are requested;(D) the time within which the work is to be completed; and(E) the special provisions and special specifications.(2) Form of request. A request for a proposal form on any contract under this subchapter should be made using the department's electronic system. On the written or emailed request of a contractor, the department may enter a form request into the system on behalf of the contractor if the requester is identified as the person authorized to sign for the contractor.(e) Issuance of proposal form.(1) This paragraph applies for contracts under this subchapter other than building contracts.(A) Issuance. Except as provided in subparagraph (B) or (C) of this paragraph or paragraph (3) of this subsection, the department will, upon receipt of a request, issue a proposal form for a contract only to a bidder who qualifies under §9.12(c) or (d) of this subchapter, as appropriate, and for a highway improvement project, only if the estimated cost of the project is within that bidder's available bidding capacity, as determined under §9.12(e) of this subchapter.(B) Non-issuance. Except as provided in subparagraph (D) of this paragraph, the department will not issue a proposal form requested by a bidder for a contract if at the time of the request the bidder:(i) is suspended or debarred by order of the commission or by the department;(ii) has not fulfilled the requirements for qualification under §9.12 of this subchapter;(iii) does not have the available bidding capacity;(iv) is ineligible to bid on any proposed contract under Item 7, Article 15, Responsibility for Damage Claims of the department's Standard Specifications for Construction and Maintenance of Highways, Streets, and Bridges;(v) is prohibited from participating in the contract because of a decision of the Deputy Executive Director under §9.24 of this chapter (relating to Performance Review Committee and Actions); or(vi) has not attended a mandatory pre-bid conference.(C) Non-issuance for rebid. The department will not issue a proposal form requested by a bidder for the rebid of a contract if:(i) at the time of the request the bidder is prohibited from rebidding the proposal due to a bid error on the original proposal form;(ii) the bidder failed to enter into a contract on the original award;(iii) at the time of the request the bidder is in default on the original contract or was terminated on the original contract unless the department terminated the contract in the best interest of the state; or(iv) the bidder or an affiliate of the bidder was originally determined to be the apparent low bidder on a project but failed to submit a DBE commitment as required by §9.227 of this chapter (relating to Information from Bidders) or failed to meet the requirements of §9.17(j) of this subchapter relating to participation in the Department of Homeland Security (DHS) E-Verify system.(D) Exceptions. The department may issue a proposal form under a temporary approval to a bidder who would be ineligible under subparagraph (B)(ii) of this paragraph if the bidder has substantially complied with the requirements of §9.12 of this subchapter.(2) This paragraph applies only for building contracts.(A) Issuance. Except as provided in subparagraph (B) of this paragraph or paragraph (3) of this subsection, the department will issue, upon request, a proposal form to a bidder that is eligible under §9.12(h) of this subchapter.(B) Non-issuance. The department will not issue a proposal form requested by a bidder for a building contract if, at the time of the request, the bidder:(i) is disqualified by an agency of the federal government as a participant in programs and activities involving federal assistance and benefits and the contract is a federal-aid project;(ii) is suspended or debarred by order of the commission or by the department; or(iii) is prohibited from bidding that project because of default of the first awarded contract.(3) All contracts. The department will not issue a proposal form for a contract under this subchapter to a bidder if the bidder or a subsidiary or affiliate of the bidder has received compensation from the department to participate in the preparation of the plans or specifications on which the bid or contract is based.</content><note type="source"><p>Source Note: The provisions of this §9.13 adopted to be effective November 23, 1994, 19 TexReg 8867; amended to be effective May 25, 1995, 20 TexReg 3574; amended to be effective September 22, 1995, 20 TexReg 7086; amended to be effective December 12, 1999, 24 TexReg 10901; amended to be effective July 18, 2002, 27 TexReg 6345; amended to be effective December 11, 2008, 33 TexReg 10054; amended to be effective November 17, 2011, 36 TexReg 7677; amended to be effective January 4, 2017, 41 TexReg 10663; amended to be effective September 19, 2018, 43 TexReg 5996; amended to be effective April 20, 2023, 48 TexReg 1968.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scB/s9.14"><num value="9.14">§9.14</num><heading>Submittal of Bid</heading><content>(a) Acceptable methods. Bids for a contract under this subchapter may be submitted either manually or electronically.(b) Manually submitted bids. For the purpose of manually submitting a bid, an acceptable proposal form is the form that is printed and given to the bidder by the department or a form printed by the bidder from EBS.(1) Delivery of Bid. The bidder shall place each completed proposal form in a sealed envelope marked to show its contents. When submitted by mail, this envelope shall be placed in another envelope which shall be sealed and addressed as indicated in the notice. Bids must be received on or before the hour and date set for the receipt and opening of bids and must be in the hands of the department letting official by that time.(2) Bid content. The bidder shall submit the bid in compliance with the following requirements.(A) Except as provided in subparagraph (B) of this paragraph and paragraph (3) of this subsection, the blank spaces for each item as required in the proposal form shall be filled in by writing in words in ink.(B) The bidder shall submit a unit price for each item for which a bid is requested (including a zero if appropriate), except in the case of a regular bid item that has an alternate bid item. In such case, prices must be submitted for the base bid or with the set of items of one or more of the alternates.(C) The bid shall be executed with ink in the complete and correct name of the bidder making the bid and be signed by the person or persons authorized to bind the bidder.(D) Except in the case of a regular bid item that has an alternate bid item, unit prices shall be stated in dollars and/or cents for each bid item listed in the proposal form.(3) Computer printouts.(A) For manually submitted bids, a bidder may, in lieu of writing in words in ink on the bid item sheet, submit an original computer printout sheet bearing the authorized signature for the bidder. The unit prices shown on acceptable printouts will be the official unit prices used to tabulate the official total bid amount and used in the contract if awarded by the commission.(B) Computer printouts are not acceptable on building contracts.(c) Electronically submitted bids. In lieu of submitting a printed proposal form, the bidder may submit the bid electronically using EBS in accordance with this subsection.(1) Bids must be received by the electronic vault on or before the time and date set for the receipt and opening of bids.(2) For the submission or withdrawal of electronic bids, the bidder is responsible for obtaining its use of a computer system and access to the Internet.(3) The department is not responsible for a bidder being unable to submit or withdraw a bid due to the unavailability of the Internet.(4) The bid shall be in the correct name of the bidder making the bid.(d) Bid guaranty. Except as provided in paragraph (4) of this subsection, a bidder must submit a bid guaranty with the bid for a contract that, on the date of the release of its advertisement, has an engineer's estimate of more than $25,000. The amount of the guaranty is equal to two percent of the estimate, rounded to the nearest $1,000, not to exceed $100,000.(1) Except as provided in paragraph (2) or (4) of this subsection, the bid guaranty must be made payable to the order of the commission or department and in the form of a cashier's check, money order, or teller's check drawn by or on a state or national bank, savings and loan association, or a state or federally chartered credit union (collectively referred to as a "bank"). The check must be payable at or through the institution issuing the instrument, or must be drawn by a bank on a bank, or by a bank and payable at or through a bank. The form of the instrument must be identified on the instrument's face.(2) A bidder may submit a bid bond, in lieu of providing the guaranty required in paragraph (1) of this subsection. The bid bond shall be on the form specified by the department. A bid bond will only be accepted from a surety company authorized to execute a bond under and in accordance with state law. The bond must be dated on or before the date of the bid opening, bear the impressed seal of the surety company and the name of the bidder, and be signed by the bidder or bidders, in the case of a joint venture, and an authorized representative of the surety company. As an alternative for joint venture bidders, each of the bidders may submit a separate bid bond, completed as outlined in this paragraph. Powers of attorney must be attached to the bid bond. The bid bond amount required by the department must be within the surety company's authorized bonding limit.(3) The department will not accept as a bid guaranty:(A) personal checks or certified checks;(B) other types of money orders; or(C) checks or money orders more than 90 days old.(4) For bids submitted electronically under subsection (c) of this section, the bid guaranty must be an electronic bid bond must be made in the name or department issued vendor number of the bidder or if more than one, each bidder. For joint venture bidders, the bond must be made in the names or department issued vendor numbers of all joint venture bidder participants. The bond authorization code must be entered into the authorization code field contained in EBS. Only bond authorization codes from the companies listed in the most recent version of EBS are acceptable. Printed checks or bid bond forms are not acceptable as guaranties for electronic bids.</content><note type="source"><p>Source Note: The provisions of this §9.14 adopted to be effective November 23, 1994, 19 TexReg 8867; amended to be effective November 25, 1996, 21 TexReg 11627; amended to be effective December 12, 1999, 24 TexReg 10901; amended to be effective January 4, 2001, 25 TexReg 13007; amended to be effective October 21, 2001, 26 TexReg 8195; amended to be effective July 18, 2002, 27 TexReg 6345; amended to be effective December 11, 2008, 33 TexReg 10054; amended to be effective April 18, 2017, 42 TexReg 2008; amended to be effective April 20, 2023, 48 TexReg 1968.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scB/s9.15"><num value="9.15">§9.15</num><heading>Acceptance of Bids</heading><content>(a) Public opening. Bids will be opened in accordance with Transportation Code, §223.004 and §223.005.(1) Bids for contracts other than building contracts, with an estimate of less than $1 million, may be filed with the district engineer at the headquarters for the district and opened and read at a public meeting conducted by the district engineer, or his or her designee, on behalf of the commission.(2) Bids for a building contract with an estimate of less than $1 million may be filed with the director of the Support Services Division at the headquarters of the division and opened and read at a public meeting conducted by the director of that division, or the director's designee, on behalf of the commission.(b) Bids not considered.(1) The department will not consider a bid if:(A) the bid is submitted by an unqualified bidder;(B) the bid is in a form other than the official bid form issued to the bidder;(C) the certification and affirmation are not signed;(D) the bid was not in the hands of the letting official at the time and location specified in the advertisement;(E) the bidder modifies the bid in a manner that alters the conditions or requirements for work as stated in the proposal form;(F) the bid guaranty, when required, does not comply with §9.14(d) of this subchapter relating to the Submittal of Bid;(G) the proposal form was signed by a person who was not authorized to bind the bidder or bidders;(H) the bid does not include a fully completed HUB plan in accordance with §9.356 of this chapter when required;(I) a typed proposal form does not contain the information in the format shown on the "Example of Bid Prices Submitted by a Computer Printout's in the proposal form;(J) the bidder was not authorized to be issued a bid form under §9.13(e) of this subchapter relating to Notice of Letting and Issuance of Proposal Forms;(K) the bid did not otherwise conform with the requirements of §9.14 of this subchapter;(L) the bidder fails to properly acknowledge receipt of all addenda;(M) the bid submitted has the incorrect number of bid items;(N) the bidder does not meet the applicable technical qualification requirements;(O) the bidder fails to submit a DBE commitmentwithin the period described by §9.17(i) of this subchapter relating to Award of Contract;(P) the bidder fails to meet the requirements of §9.17(j) of this subchapter relating to participation in the Department of Homeland Security (DHS) E-Verify system;(Q) the bidder bids more than the maximum orless than the minimum number of allowable working days shown on the plans when working days is a bid item.(2) If bids are submitted on the same project separately by a joint venture and one or more members of that joint venture, the department will not accept any of the bids submitted by the joint venture and those members for that project.(3) If bids are submitted on the same project by affiliated bidders as determined under §9.27 of this subchapter (relating to Affiliated Entities) and the executive director has not granted an affiliation exception under §9.12(g) of this subchapter relating to the Qualification of Bidders, the department will not accept any of the bids submitted by the affiliated bidders for that project.(c) Revision of bid.(1) For a manually submitted bid, a bidder may change a bid price before it is submitted to the department by changing the price in the printed bid form and initialing the revision in ink;(2) For a manually submitted bid, a bidder may change a bid price after it is submitted to the department by requesting return of the bid in writing prior to the expiration of the time for receipt of bids, as stated in the advertisement. The request must be made by a person authorized to bind the bidder. The department will not accept a request by telephone but will accept a properly signed facsimile request. The revised bid must be resubmitted prior to the time specified for the close of the receipt of bids.(3) For an electronically submitted bid, a bidder may change a unit bid price in EBS and resubmit electronically to the electronic vault until the time specified for the close of the receipt of bids. Each bid submitted will be retained in the electronic vault. The electronic bid with the latest date and time stamp by the vault will be used for bid tabulation purposes.(d) Withdrawal of bid.(1) A bidder may withdraw a manually submitted bid by submitting a request in writing to the letting official before the time and date of the bid opening. The request must be made by a person authorized to bind the bidder. The department will not accept telephone requests but will accept a properly signed facsimile request. Except as provided in §9.16(c) of this subchapter relating to Tabulation of Bids and §9.17(d) of this subchapter, a bidder may not withdraw a bid subsequent to the time for the receipt of bids.(2) A bidder may withdraw an electronically submitted bid by submitting an electronic or written request to withdraw the bid. An electronic withdrawal request must be submitted using EBS. The request, whether electronic or written, must be submitted by a person who is authorized by the bidder to submit the request and received by the department before the time and date of the bid opening.(e) Unbalanced bids. The department will examine the unit bid prices of the apparent low bid for reasonable conformance with the department's estimated prices. The department will evaluate an apparent low bid with extreme variations from the department's estimate or where obvious unbalancing of unit prices has occurred. For the purposes of the evaluation the department will presume the same retainage percentage for all bidders. The department may consider an apparent low bid nonresponsive if the evaluation of the unit bid prices reveals that the apparent low bid is mathematically and materially unbalanced.</content><note type="source"><p>Source Note: The provisions of this §9.15 adopted to be effective November 23, 1994, 19 TexReg 8867; amended to be effective September 22, 1995, 20 TexReg 7086; amended to be effective December 12, 1999, 24 TexReg 10901; amended to be effective January 4, 2001, 25 TexReg 13007; amended to be effective June 17, 2004, 29 TexReg 5795; amended to be effective December 8, 2005, 30 TexReg 8181; amended to be effective December 11, 2008, 33 TexReg 10054; amended to be effective January 4, 2017, 41 TexReg 10663; amended to be effective September 19, 2018, 43 TexReg 5996; amended to be effective April 20, 2023, 48 TexReg 1968; amended to be effective May 15, 2024,49TexReg 3373; amended to be effective January 6, 2025, 50 TexReg 189.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scB/s9.16"><num value="9.16">§9.16</num><heading>Tabulation of Bids</heading><content>(a) Official bid amount. Except for lump sum building contract bid items, the official total bid amount for each bidder will be determined by multiplying the unit bid price written in for each item by the respective quantity and totaling those amounts.(b) Department interpretations.(1) Bids where unit bid prices have been left blank will be considered by the department to be incomplete and nonresponsive. If a bid has a regular and a corresponding alternate bid item or group of items, the bid will not be considered to be incomplete if either the regular bid item, or group of items, or the alternate bid item, or group of items, has a unit bid price entered. If both a regular bid item, or group of items, and a corresponding alternate bid item, or group of items, are left blank, the bid will be considered to be incomplete and nonresponsive. A bidder who elects to bid on a bid item group corresponding to a regular or alternate bid item, or group of items, must include unit bid prices for each bid item contained in the bid item group.(2) Bid entries such as no dollars and no cents, zero dollars and zero cents, or numerical entries of $0.00 will be interpreted to be one-tenth of a cent ($.001) and will be entered in the bid tabulation as $.001, except as provided in paragraph (6) of this subsection. Any entry extended to more than three decimal places will be rounded to the nearest tenth of a cent and entered as such. For rounding purposes contained in this subsection, entries of five-hundredths of a cent or more will be rounded up to the next highest tenth of a cent, while entries of four-hundredths of a cent or less will be rounded down to the next lowest tenth of a cent.(3) If the bidder submits both an electronic bid and a properly completed manual bid, the department will use the electronic bid to determine the total bid amount of the bid. If the bidder submits an electronic bid and a manual bid that is not complete, the department will use the electronic bid to determine the total bid amount of the bid.(4) If the bidder submits two or more manual bids, all responsive manual bids will be tabulated, and the department will use the lowest bid tabulation to determine the total bid amount of the bid.(5) If a unit bid price is illegible, the department will make a documented determination of the unit bid price for tabulation purposes.(6) If a unit bid price has been entered for both the regular bid item, or group of items, and a corresponding alternate bid item, or group of items, the department will determine the option that results in the lowest total cost to the state and tabulate as such, except as provided in subparagraphs (A) and (B) of this paragraph. If both the regular and alternate bids result in the same cost to the state, the department will select the regular bid item or items.(A) If both a regular bid item or a group of items, and a corresponding alternate bid item or group of items, have an entry such as no dollars and no cents, zero dollars and zero cents, or numerical entries of $0.00, the department will make two calculations using one-tenth of a cent ($.001) for each item as described in paragraph (2) of this subsection. The department will determine the option that results in the lowest total cost to the state and tabulate as such. If both the regular and alternate bids result in the same cost to the state, the department will select the regular bid item or items.(B) If a unit bid price greater than zero has been entered for either a regular bid or corresponding alternate bid item, or a group of items, and an entry of no dollars and no cents, zero dollars and zero cents, or a numerical entry of $0.00 has been entered for the other corresponding item, or group of items, the department will use the unit bid price that is greater than zero for bid tabulation.(c) Tie bids. In the event the official bid amount for two or more bidders is equal and those bids are the lowest submitted, each tie bidder will be given an opportunity to withdraw its bid. If two or more tie bidders decline to withdraw their bids, the low bidder will be determined by a coin toss. If all tie bidders request to withdraw their bids, no withdrawals will be allowed and the low bidder will be determined by a coin toss.(d) Bid guaranty. Not later than 72 hours after bids are opened, the department will mail the check or money order bid guaranty of each bidder except the apparent low bidder to the address specified on the return bidder's check form included in the bid. Bid bonds will not be returned.(e) Bid errors. The department will consider a bid error that meets the notification requirements contained in paragraph (1) of this subsection and satisfies the criteria contained in paragraph (2) of this subsection in the award of a contract.(1) The apparent low bidder must submit written notification of an alleged bid error to the department within five business days after the date bids are opened for the project. The notification must identify the items of work involved and must include bid documentation, such as quotes received, calculations made, or other related documentation used in bid preparation that substantiates the alleged error. Once the notification is submitted to the department, it may not be revised or supplemented unless additional information is requested by the department.(2) The department will consider the following criteria in determining whether a bid error exists:(A) the alleged bid error relates to a material item of work contained in the bid;(B) the alleged bid error is a significant portion of the total bid as compared to the intended bid contained in the documentation submitted by the contractor in accordance with paragraph (1) of this subsection, and other contractor bids;(C) the alleged bid error occurred despite the contractor's exercise of ordinary care in preparing its bid; and(D) delay in the completion of the project will not have a significant impact on the cost to and safety of the public.(3) The department may consider an alleged bid error caused by an effort to unbalance the bid as failure to exercise ordinary care.(4) When the engineer's estimate on a project is less than $1 million, the executive director may determine whether a bid error exists under the same conditions and criteria as provided in paragraphs (1) and (2) of this subsection.</content><note type="source"><p>Source Note: The provisions of this §9.16 adopted to be effective November 23, 1994, 19 TexReg 8867; amended to be effective May 25, 1995, 20 TexReg 3574; amended to be effective December 12, 1999, 24 TexReg 10901; amended to be effective January 4, 2001, 25 TexReg 13007; amended to be effective July 18, 2002, 27 TexReg 6345; amended to be effective June 17, 2004, 29 TexReg 5795; amended to be effective December 11, 2008, 33 TexReg 10054; amended to be effective April 20, 2023, 48 TexReg 1968; amended to be effective May 15, 2024, 49 TexReg 3373.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scB/s9.17"><num value="9.17">§9.17</num><heading>Award of Contract</heading><content>(a) The commission may reject any and all bids opened, read, and tabulated under §9.15 and §9.16 of this subchapter (relating to Acceptance of Bids and Tabulation of Bids, respectively). It will reject all bids if:(1) there is reason to believe collusion may have existed among the bidders;(2) the lowest bid is higher than the department's estimate and the commission determines that re-advertising the project for bids may result in a significantly lower low bid;(3) the lowest bid is higher than the department's estimate and the commission determines that the work should be done by department forces; or(4) the lowest bid is determined to contain a bid error that meets the notification requirements contained in §9.16(e)(1) of this subchapter and satisfies the criteria contained in §9.16(e)(2) of this subchapter.(b) Except as provided in subsection (c), (d), (e), or (f) of this section, if the commission does not reject all bids, it will award the contract to the lowest bidder.(c) In accordance with Government Code, Chapter 2252, Subchapter A, the commission will not award a contract to a nonresident bidder unless the nonresident underbids the lowest bid submitted by a responsible resident bidder by an amount that is not less than the greater of:(1) the amount by which a resident bidder would be required to underbid the nonresident bidder to obtain a comparable contract in the state in which:(A) the nonresident's principal place of business is located; or(B) the nonresident is a resident manufacturer; or(2) the amount by which a resident bidder would be required to underbid the nonresident bidder to obtain a comparable contract in the state in which a majority of the manufacturing related to the contract will be performed.(d) For a maintenance contract for a building or a segment of the state highway system involving a bid amount of less than $300,000, if the lowest bidder withdraws its bid after bid opening, the executive director may recommend to the commission that the contract be awarded to the second lowest bidder.(1) For purposes of this subsection, the term "withdrawal" includes written withdrawal of a bid after bid opening, failure to provide the required insurance or bonds, or failure to execute the contract.(2) The executive director may recommend award of the contract to the second lowest bidder if he or she, in writing, determines that the second lowest bidder is willing to perform the work at the unit bid prices of the lowest bidder; and(A) the unit bid prices of the lowest bidder are reasonable, and delaying award of the contract may result in significantly higher unit bid prices;(B) there is a specific need to expedite completion of the project to protect the health or safety of the traveling public; or(C) delaying award of the contract would jeopardize the structural integrity of the highway system.(3) The commission may accept the withdrawal of the lowest bid after bid opening if it concurs with the executive director's determinations.(4) If the commission awards a contract to the second lowest bidder and the department successfully enters into a contract with the second lowest bidder, the department will return the lowest bidder's bid guaranty upon execution of that contract.(e) If the lowest bidder is not a preferred bidder and the contract will not use federal funds, the department, in accordance with Transportation Code, Chapter 223, Subchapter B, will award the contract to the lowest-bidding preferred bidder if that bidder's bid does not exceed the amount equal to 105 percent of the lowest bid. For purposes of this subsection, "preferred bidder" means a bidder whose principal place of business is in this state or a state that borders this state and that does not give a preference similar to Transportation Code, §223.050.(f) When additional information is required to make a final decision, the commission may defer the award or rejection of the contract until the next regularly scheduled commission meeting.(g) Contracts with an engineer's estimate of less than $1 million may be awarded or rejected by the executive director under the same conditions and limitations as provided in subsections (a) - (c) of this section.(h) The commission may rescind the award of any contract prior to contract execution upon a determination that it is in the best interest of the state. The executive director may rescind the award of a contract awarded under subsection (g) of this section prior to contract execution upon a determination that it is in the best interest of the state. If a contract is rescinded under this subsection, the bid guaranty will be returned to the bidder, but no compensation will be paid to the bidder as a result of the rescission.(i) For a contract with a DBE goal, all bidders must submit the DBE information required by §9.227 of this chapter (relating to Information from Bidders) within five calendar days after the date that the bids are opened.(j) Prior to contract award, all low bidders must be participating or provide documentation of participation in the Department of Homeland Security's (DHS) E-Verify system within five calendar days after the date that the bids are opened.</content><note type="source"><p>Source Note: The provisions of this §9.17 adopted to be effective November 23, 1994, 19 TexReg 8867; amended to be effective September 22, 1995, 20 TexReg 7086; amended to be effective December 12, 1999, 24 TexReg 10901; amended to be effective July 18, 2002, 27 TexReg 6345; amended to be effective June 17, 2004, 29 TexReg 5795; amended to be effective December 8, 2005, 30 TexReg 8181; amended to be effective December 7, 2006, 31 TexReg 9751; amended to be effective December 11, 2008, 33 TexReg 10054; amended to be effective March 19, 2014, 39 TexReg 1936; amended to be effective January 4, 2017, 41 TexReg 10663; amended to be effective September 19, 2018, 43TexReg 5996; amended to be effective February 19, 2020, 45 TexReg 1042; amended to be effective April 20, 2023, 48 TexReg 1968; amended to be effective May 15, 2024, 49 TexReg 3373; amended to be effective January 6, 2025, 50 TexReg 189.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scB/s9.18"><num value="9.18">§9.18</num><heading>Contract Execution, Forfeiture of Bid Guaranty, and Bond Requirements</heading><content>(a) Contract execution.(1) Except as provided in paragraphs (2) and (3) of this subsection, within 15 days after the bidder receives written notification of the award of a contract, the bidder must execute and furnish to the department the contract with:(A) a performance bond and a payment bond, if required and as required by Government Code, Chapter 2253, with powers of attorneys attached, each in the full amount of the contract price except as provided by subsection (c) of this section, executed by a surety company or surety companies authorized to execute surety bonds under and in accordance with state law. Department interpretations made in accordance with §9.16(b)(2) of this subchapter (relating to Tabulation of Bids) will be used to determine the contract amount for providing a performance bond and payment bond, if required, and as required by the Government Code, Chapter 2253;(B) a certificate of insurance showing coverages in accordance with contract requirements; and(C) when required, written evidence of current good standing from the Comptroller of Public Accounts.(2) A bidder awarded a maintenance contract, materials contract, or building contract will be required to provide the certificate of insurance prior to the date the contractor begins work as specified in the department's order to begin work.(3) The bidder selected for the award of a contract containing a DBE or SBE goal, who is not a DBE or SBE, must submit all the information required by the department in accordance with §9.227 of this chapter (relating to Information from Bidders) within the period described by §9.17(i) of this subchapter (relating to Award of Contract) for a contract containing a DBE goal, or §9.319 of this chapter (relating to Contractor's Commitment Agreement) and §9.320 of this chapter (relating to Contractor's Good Faith Efforts) within the period specified in the contract for a contract containing a SBE goal. The bidder must comply with paragraph (1) of this subsection within 15 days after written notification of acceptance by the department of the bidder's documentation to achieve the DBE or SBE goal.(b) Bid guaranty. The department will retain the bid guaranty of the bidder awarded a contract until after the contract has been executed and bonded. If the bidder selected for the award of a contract with a DBE goal fails to submit the DBE information required by §9.227 of this chapter (related to Information from Bidders) within the period described by §9.17(i) of this subchapter or if the bidder awarded a contract does not comply with subsection (a) of this section, the bid guaranty will become the property of the state, not as a penalty but as liquidated damages. A bidder who forfeits a bid guaranty will not be considered in future bids for the same work unless there has been a substantial change in the design of the project subsequent to the forfeiture of the bid guaranty.(c) Performance or payment bonds for maintenance contracts. For maintenance contracts the department may require that a performance or payment bond:(1) be in an amount equal to the greatest annual amount to be paid under the contract and remain in effect for one year from the date work is resumed after any default by the contractor; or(2) be in an amount equal to the amount to be paid the contractor during the term of the bond and be for a term of two years, renewable biannually in two-year increments.(d) Performance or payment bonds for materials contracts. A performance or payment bond is not required for a materials contract.</content><note type="source"><p>Source Note: The provisions of this §9.18 adopted to be effective November 23, 1994, 19 TexReg 8867; amended to be effective May 25, 1995, 20 TexReg 3574; amended to be effective January 13, 1997, 22 TexReg 63; amended to be effective December 12, 1999, 24 TexReg 10901; amended to be effective January 4, 2001, 25 TexReg 13007; amended to be effective July 18, 2002, 27 TexReg 6345; amended to be effective January 8, 2004, 29 TexReg 229; amended to be effective December 8, 2005, 30 TexReg 8181; amended to be effective December 11, 2008, 33 TexReg 10054; amended to be effective January 4, 2017, 41 TexReg10663;amended to be effective April 20, 2023, 48 TexReg 1968; amended to be effective May 15, 2024, 49 TexReg 3373.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scB/s9.19"><num value="9.19">§9.19</num><heading>Emergency Contract Procedures</heading><content>(a) Purpose. In accordance with Transportation Code, Chapter 223, Subchapter C, in a highway emergency, the department in accordance with rules adopted by the commission is authorized to award certain contracts. This section provides for an alternate procedure for the expedited award of those contracts to meet emergency conditions in which essential corrective or preventive action would be unreasonably hampered or delayed by compliance with other laws, this subchapter, or other sections of Part I of this title.(b) Certification of emergency.(1) A district engineer who identifies an emergency situation in the geographic area under his or her jurisdiction and determines that expedited action is required shall immediately notify the executive director or the director's designee not below the level of deputy executive director to describe the fact and nature of the emergency. Upon receiving authorization to proceed, the district engineer may initiate procedures for the award of an emergency contract. All such notification will be documented in writing.(2) Examples of types of work which may qualify for emergency contracts include but are not limited to emergency repair or reconstruction of streets, roads, highways, and bridges; clearing debris or deposits from the roadway or in drainage courses within the right of way; removal of hazardous materials; restoration of stream channels outside the right of way in certain conditions; temporary traffic operations; and mowing to eliminate safety hazards; provided, however, that in each instance, the proposed work must satisfy the requisites of emergency as defined in this subchapter.(3) Before the contract is awarded, the executive director or the director's designee not below the level of deputy executive director must certify in writing the fact and nature of the emergency giving rise to the award.(c) Contractor eligibility. To be eligible to bid on an emergency contract, a contractor must be included in the department's list of prequalified bidders pursuant to §9.12 of this subchapter (relating to Qualification of Bidders) or must complete a bidder's questionnaire in a form prescribed by the department.(d) Notification of prospective bidders.(1) After an emergency is certified, the district engineer will review the department's file of eligible bidders and, if there are a sufficient number of firms, notify at least three of those firms.(2) Consistent with and contingent upon the nature of the emergency, the district engineer may contact prospective bidders by telephone, letter, facsimile, or other appropriate form of communication.(3) The district engineer will inform each prospective bidder of the nature of the emergency and furnish specifications for the remedy, including time constraints, bonding and insurance requirements, and any additional information needed for the prospective bidder to prepare a work plan and calculate the cost.(4) If no eligible contractor is able to provide the required type of service, the district engineer may take any measure necessary to identify and locate an available contractor who is able to provide the required service. If selected, the prospective contractor thus identified must complete the bidder's questionnaire prior to final approval of the award.(e) Bidding requirements.(1) A prospective bidder's bid must be in writing and must include:(A) a price for performing the work; and(B) a response to each item in the district engineer's specifications if the price is based on other than unit price.(2) If the district engineer so authorizes, the prospective bidder may submit an oral bid which must be confirmed in writing within 24 hours.(f) Letting procedures.(1) The district engineer will review the bids and, if awarded, shall award the contract to the best bidder and document the basis for the award. As used in this subsection, the best bidder is that firm best able to respond to the emergency in a timely manner and fulfill the state's priority needs as determined by the district engineer.(2) Each bidder will be notified as soon as possible after the award is made, with written confirmation to follow.(g) Contract.(1) The department shall prescribe the form of the emergency contract and may include therein such matters and specifications as it deems advantageous to the state, including but not limited to provisions which address the specifications for completion of work, cost to perform the work, the basis for payment, time period needed to complete the work, control of work, insurance and bonding requirements, and any general or special conditions mutually agreed upon by the department and the contractor.(2) Each such contract shall be made in the name of the State of Texas, signed by the executive director or the director's designee not below the level of district engineer on behalf of the department, and signed by the contracting party.(3) The contractor must furnish satisfactory proof of insurance and bonds before any work is performed.(4) The contract must be fully executed before any work is begun.(5) The certification required in subsection (b) of this section must be attached to the contract.(h) Exceptions. If the district engineer determines that the magnitude and extremity of the emergency require instantaneous action by the contractor in order to alleviate an immediate detrimental impact on public health and safety, and the executive director or the director's designee not below the level of deputy executive director has so noted in the certification of the emergency, the following exceptions are permitted.(1) The district engineer may authorize the contractor to begin work:(A) without a signed contract, provided the contract is signed within 24 hours after work begins; and(B) without bonds and proof of insurance, provided they are furnished not more than three days after work begins.(2) The executive director or deputy executive director may authorize the waiving of bonds or insurance requirements if it is determined that such requirements cannot be met prior to completion of the work or would prevent the timely performance of work to the detriment of public health, safety, or welfare.(i) Reports to the commission. Not later than 24 hours after the contract is awarded, the district engineer shall notify the executive director or the director's designee not below the level of deputy executive director of the award of the emergency contract. Not later than the fifth working day following the date on which the contract is awarded, the executive director shall furnish each member of the commission written notification of the details of the emergency conditions and the award.(j) Section 9.23 of this subchapter (relating to Evaluation and Monitoring of Contract Performance) does not apply to a contract awarded under this section.</content><note type="source"><p>Source Note: The provisions of this §9.19 adopted to be effective November 23, 1994, 19 TexReg 8867; amended to be effective December 11, 1997, 22 TexReg 12081; amended to be effective December 12, 1999, 24 TexReg 10901; amended to be effective December 11, 2008, 33 TexReg 10054; amended to be effective April 20, 2023, 48 TexReg 1968.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scB/s9.20"><num value="9.20">§9.20</num><heading>Partial Payments</heading><content>(a) Authority. A contract under this subchapter may provide for partial payments.(b) Trust agreement. At the request of a contractor and with the approval of the department and the comptroller of public accounts, any amount retained may be deposited under the terms of a trust agreement with a state or national bank that has its main office or a branch office in Texas as selected by the contractor, provided that the contract price exceeds $300,000. The trust agreement shall provide that:(1) interest earned on deposited funds will be paid to the contractor unless otherwise specified under the terms of the agreement;(2) all expenses incident to the deposit and all charges made by the escrow agent for custody of the securities and forwarding of interest shall be paid solely by the contractor;(3) the department may, at any time and with or without reason, demand in writing that the bank return or repay, within 30 days of the demand, the retainage or any investments in which it is invested; and(4) any other terms and conditions prescribed by the department and the comptroller of public accounts as necessary to protect the interests of the state.</content><note type="source"><p>Source Note: The provisions of this §9.20 adopted to be effective September 22, 1995, 20 TexReg 7085; amended to be effective December 12, 1999, 24 TexReg 10901; amended to be effective December 6, 2007, 32 TexReg 8856; amended to be effective April 20, 2023, 48 TexReg 1968.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scB/s9.21"><num value="9.21">§9.21</num><heading>Purchase of Service</heading><content>The department may award a maintenance contract under this section as a purchase of service under the State Purchasing and General Services Act, Government Code, Title 10, Subtitle D, if the department:(1) estimates the contract will involve an amount for which formal bids for the purchase of service are not required under rules adopted by the Texas Comptroller of Public Accounts under Government Code, Chapter 2155, Subchapter C; and(2) determines that it would be impractical to use the letting procedures described in this subchapter.</content><note type="source"><p>Source Note: The provisions of this §9.21 adopted to be effective January 8, 2004, 29 TexReg 229; amended to be effective November 17, 2011, 36 TexReg 7679.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scB/s9.22"><num value="9.22">§9.22</num><heading>Liquidated Damages</heading><content>(a) In accordance with Transportation Code, §223.012, the department will develop a schedule for liquidated damages that accurately reflects the costs, including administrative costs to the department and road user costs, that result from delays in the completion of a project resulting from a breach of a highway improvement contract. The department will review the schedule from time to time and revise it as necessary to insure that it continues to accurately compensate for the costs resulting from a breach.(b) For each highway improvement contract for a project that the department identifies as having a significant impact on the traveling public, the department will determine project-specific liquidated damages that accurately reflect the costs, including administrative costs to the department and road user costs, that result from delays in the completion of a project resulting from a breach of a highway improvement contract. In determining whether a project has significant impact on the traveling public, the department, in addition to other relevant factors, will consider whether the project will:(1) involve an interstate highway, hurricane evacuation route, or hazardous material route;(2) affect access to schools or hospitals(3) affect a corridor of regional, statewide, or national importance;(4) affect the response times of emergency vehicles;(5) affect a primary thoroughfare in a community;(6) require long term ramp closures for controlled access roadways;(7) result in significant added travel time or distance;(8) result in added travel time for the traveling public on or around a major national or state holiday; or(9) have a substantial impact on local businesses.</content><note type="source"><p>Source Note: The provisions of this §9.22 adopted to be effective September 19, 2018, 43 TexReg 5996.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scB/s9.23"><num value="9.23">§9.23</num><heading>Evaluation and Monitoring of Contract Performance</heading><content>(a) The department will develop standards used to evaluate a contractor's performance under a highway improvement contract, including standards for conformance with the project plans and specifications and recordkeeping requirements; compliance with the contract and industry standards for safety; responsiveness in dealing with the department and the public; meeting progress benchmarks and project milestones; addressing project schedule issues, given adjustments, change orders, and unforeseen conditions or circumstances; and completing project on time. The department will develop an evaluation form to be used by department employees in evaluating contract performance.(b) The district engineer of the district in which a project under a highway improvement contract, other than a building contract, is located, or the director of the Support Services Division for building contracts shall evaluate the contractor's performance under the contract. An interim evaluation shall be performed as necessary and if the project extends for longer than one year on each anniversary of the date that work began under the contract. The district engineer for a highway improvement contract, other than a building contract, or the director of the Support Services Division for a building contract shall, approve any final evaluations on the completion of the project. Only final evaluations will be used to determine whether the contractor's contract performance meets the department's requirements.(c) If the contractor's performance on a project is below the department's acceptable standards for contract performance, the district engineer or the director of the Support Services Division, as applicable, may work with the contractor to establish a recovery plan for the project. The established project recovery plan will be used to correct significant deficiencies in contractor performance. The district engineer or the director of the Support Services Division, as applicable, will monitor and document the contractor's compliance with the established project recovery plan.(d) For a highway improvement contract, other than a building contract, the district engineer will submit the final evaluation scores performed under this section to the division of the department that is responsible for monitoring the contract.(e) The division that monitors the final evaluation scores of a contractor periodically will review the final evaluation scores of that contractor that were completed during the review period, or if fewer than 10 final evaluations were completed during the review period, up to 10 of the most recent final evaluations completed within the previous three-year period. If the average of the final evaluation scores reviewed is below the department's acceptable standards for contract performance, the division will send a notice to the contractor and request that the contractor submit to the division for approval a proposed corrective action plan that will be used to correct significant deficiencies in the performance in all of the contractor's projects. The division, in consultation with the department's chief engineer for a highway improvement contract, other than a building contract, or the director of the Support Services Division for a building contract, may modify the proposed corrective action plan and adopt a final plan. The division promptly will send the adopted corrective action plan to the contractor.(f) For the 120-day period beginning on the day that the adopted corrective action plan is sent under subsection (e) of this section, the division will monitor the contractor's active projects to determine whether the contractor is meeting the requirements of the adopted corrective action plan, or if there are no active projects, the division will monitor the contractor's next available projects. Before making a determination under this subsection, the division must consider and document any events outside a contractor's control that contributed to the contractor's failure to meet the performance standards or failure to comply with the corrective action plan. If at the end of the 120-day period contract performance remains below the department's standards for contract performance, the division will notify the contractor and forward to the Performance Review Committee all of the information that it has, which includes at minimum all final evaluations, any adopted corrective action plans, and any information about events outside a contractor's control contributing to the contractor's performance.</content><note type="source"><p>Source Note: The provisions of this §9.23 adopted to be effective September 19, 2018, 43 TexReg 5996; amended to be effective April 20, 2023, 48 TexReg 1968; amended to be effective May 15, 2024, 49 TexReg 3373; amended to be effective January 6, 2025, 50 TexReg 189.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scB/s9.24"><num value="9.24">§9.24</num><heading>Performance Review Committee and Actions</heading><content>(a) If information is required to be forwarded to a Performance Review Committee under §9.23 of this subchapter (relating to Evaluation and Monitoring of Contract Performance) or if a contractor, including a contractor on a materials contract, has defaulted, the deputy executive director will appoint the members and chair of the Performance Review Committee. The members and chair serve at the discretion of the deputy executive director. The Performance Review Committee will review the information submitted to the committee under §9.23(f) of this subchapter, any documentation developed by the department during the evaluation process under §9.23 of this subchapter, and any documentation submitted by the contractor. For a materials contract, the Performance Review Committee will review any documentation developed by the department related to the contract and any documentation submitted by the contractor. The committee will determine whether grounds exist for action under this section. After reviewing the submitted information, the Performance Review Committee may recommend one or more of the following:(1) take no action;(2) reduce the contractor's bidding capacity;(3) prohibit the contractor from bidding on one or more projects;(4) immediately suspend the contractor from bidding for a specified period of time; or(5) prohibit the contractor from being awarded a contract on which they are the apparent low bidder.(b) The Performance Review Committee may recommend that one or more actions listed in subsection (a) of this section be taken immediately to ensure project quality, safety, or timeliness if:(1) the contractor failed to execute a highway improvement contract or a materials contract after a bid is awarded, unless the contractor honored the bid guaranty submitted under §9.14(d) of this chapter (relating to Submittal of Bid);(2) the commission, during the preceding 36-month period, rejected two or more bids by the contractor because of contractor error;(3) the department declared the contractor in default on a highway improvement contract or a materials contract; or(4) a district notifies the committee through the referring division that a contractor has failed to comply with a project recovery plan established under §9.23(c)of this subchapter.(c) If the Performance Review Committee determines that one or more actions listed in subsection (a) of this section is appropriate, the committee may recommend that the action or actions also be taken against an entity that the committee determines, in accordance with §9.27 of this subchapter (relating to Affiliated Entities), is affiliated with the contractor.(d) If the Performance Review Committee determines that action under subsection (a), (b), or (c) of this section is appropriate, the committee, except as provided by subsection (g) of this section, will confer with the Chief Engineer, or the chief administrative officer for a building contract, on the appropriate action to be taken and applied to the contractor. The committee will send its recommendation to the deputy executive director within 10 business days after the date that it determines the action to be applied.(e) The deputy executive director will consider the Performance Review Committee's recommendation and make a determination of any action to be taken. Within 10 business days after the date of the deputy executive director's determination, the department will send notice to the contractor and to appropriate department employees affected by the determination. The notice will:(1) state the nature and extent of the remedial action;(2) summarize the facts and circumstances underlying the action;(3) explain how the remedial action was determined;(4) if applicable, inform the entity of the imposition of a suspension; and(5) state that the provider may appeal the reduction in accordance with §9.25 of this subchapter (relating to Appeal of Remedial Action).(f) A decision of the deputy executive director under subsection (e) of this section may be appealed in accordance with §9.25 of this title.(g) If the Performance Review Committee, in the performance of its duties under this section finds information that indicates that grounds for the imposition of sanctions under Chapter 10 of this title (relating to Ethical Conduct by Entities Doing Business with the Department) may exist, the committee immediately shall provide that information to the department's Compliance Division.</content><note type="source"><p>Source Note: The provisions of this §9.24 adopted to be effective September 19, 2018, 43 TexReg 5996; amended to be effective April 20, 2023, 48 TexReg 1968; amended to be effective May 15, 2024, 49 TexReg 3373; amended to be effective January 6, 2025, 50 TexReg 189.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scB/s9.25"><num value="9.25">§9.25</num><heading>Appeal of Remedial Action</heading><content>(a) A remedial action taken under §9.24 of this subchapter (relating to the Performance Review Committee and Actions) may be appealed by delivering to the executive director a written notice of appeal within 15 working days after the effective date of the action as specified in its notice. The written notice must be sent by:(1) United States Mail, overnight delivery, or hand delivery addressed to: Executive Director, Texas Department of Transportation, 125 East 11th Street, Austin, Texas 78701; or(2) email to contestedcase@txdot.gov.(b) If a notice of appeal is timely delivered under subsection (a) of this section, the contractor will be given the opportunity for an informal hearing before the executive director.(c) If the contractor chooses to have an informal hearing, the executive director will set a time for the hearing at the executive director's earliest convenience and will set the time allowed for oral presentations and written documents presented by the contractor.(d) If an appeal to the executive director is not timely requested under this section, the executive director will issue a final order on the remedial action when the deadline for requesting an appeal has passed. If an appeal is timely requested, the executive director will issue a final order based on the executive director's decision of the appeal. The executive director will mail to the contractor a copy of the executive director's final order within five working days after the date that the final order is signed.(e) A final order issued by the executive director under subsection (d) of this section is not subject to judicial review, except as required by law.</content><note type="source"><p>Source Note: The provisions of this §9.25 adopted to be effective September 19, 2018, 43 TexReg 5996; amended to be effective May 15, 2024, 49 TexReg 3373.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scB/s9.26"><num value="9.26">§9.26</num><heading>Inclusion of Contract Remedies in Contracts</heading><content>(a) In addition to other contract provisions, each highway improvement contract must provide notice to the contractor of the evaluation of contract performance under §9.23 of this subchapter (relating to Evaluation and monitoring of contract performance) and the range of contract remedies applicable for substandard performance under the contract, including:(1) the possible establishment of a project recovery plan or corrective action plan under §9.23 of this subchapter to correct significant deficiencies in contract performance;(2) liquidated damages applicable to the contract under §9.22 of this subchapter (relating to Liquidated Damages);(3) reduction in the contractor's bidding capacity under §9.24 of this subchapter;(4) the prohibition or suspension of bidding on new projects under §9.24 of this subchapter; and(5) prohibition from participating in an awarded contract under §9.24 of this subchapter.(b) In addition to other contract provisions, each materials contract must provide notice to the contractor of the range of contract remedies applicable for substandard performance under the contract, including applicable actions that may be taken under §9.24 of this subchapter.</content><note type="source"><p>Source Note: The provisions of this §9.26 adopted to be effective September 19, 2018, 43 TexReg 5996; amended to be effective April 20, 2023, 48 TexReg 1968.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scB/s9.27"><num value="9.27">§9.27</num><heading>Affiliated Entities</heading><content>(a) Two or more entities are affiliated if:(1) the entities share common officers, directors, or controlling stockholders;(2) a family member of an officer, director, or controlling stockholder of one entity serves in a similar capacity in another of the entities;(3) an individual who has an interest in, or controls a part of, one entity either directly or indirectly also has an interest in, or controls a part of, another of the entities;(4) the entities are so closely connected or associated that one of the entities, either directly or indirectly, controls or has the power to control another entity;(5) one entity controls or has the power to control another of the entities; or(6) the entities are closely allied through an established course of dealings, including but not limited to the lending of financial assistance.(b) In this section, an individual's family member is the individual's spouse, child, child's spouse, parent, parent's spouse, step-parent, step-parent's spouse, sibling, sibling's spouse, uncle, uncle's spouse, aunt, aunt's spouse, first cousin, first cousin's spouse, the individual's grandchild, the individual's grandparent, the individual's spouse's child or the individual's spouse's child's spouse.</content><note type="source"><p>Source Note: The provisions of this §9.27 adopted to be effective May 15, 2024, 49 TexReg 3373.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c9/scC"><num value="C">SUBCHAPTER C</num><heading>CONTRACTING FOR ARCHITECTURAL, ENGINEERING, AND SURVEYING SERVICES</heading><section identifier="/us/state/tx/tac/t43/p1/c9/scC/s9.30"><num value="9.30">§9.30</num><heading>Purpose</heading><content>This subchapter establishes standard procedures for the selection of providers of architectural, engineering, and surveying services and the negotiation and management of contracts that require a registered architect, professional engineer, or registered professional land surveyor, in accordance with Transportation Code, §223.041; Government Code, Chapter 2254, Subchapter A; 23 U.S.C. §112(b)(2); 40 U.S.C. §§1101-1104; and 23 C.F.R. Part 172.</content><note type="source"><p>Source Note: The provisions of this §9.30 adopted to be effective February 21, 2013, 38 TexReg 994.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scC/s9.31"><num value="9.31">§9.31</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise.(1) Consultant Certification Information System (CCIS)--A computer system used to collect and store information related to the department's certification of providers.(2) Consultant selection team (CST)--The department's team that evaluates proposals and interviews and selects the provider based on demonstrated qualifications.(3) Department--The Texas Department of Transportation.(4) Department project manager--A department employee who manages a project from project initiation and contracting through project close-out, including the oversight and management of deliverables and provider performance.(5) Engineering and design related services--Program management, construction management, feasibility studies, preliminary engineering, design engineering, surveying, mapping, or architectural related services; or professional services of an architectural or engineering nature that are required to or may logically or justifiably be performed or approved by a person licensed, registered, or certified to provide the services.(6) Executive director--The executive director of the department.(7) Indefinite deliverable contract--A contract containing a general scope of services that identifies the types of work that will later be issued under work authorizations, but does not identify deliverables, locations, or timing in sufficient detail to define the provider's responsibilities under the contract.(8) Interview and Contract Guide (ICG)--A document provided by the department to short-listed providers that includes instructions to prepare for the interview.(9) Multiphase contract--A project specific contract where the solicited services are divided into phases whereby the specific scope of work and associated costs may be negotiated and authorized by phase as the project progresses.(10) Non-listed category (NLC)--A formal classification used to define a specific sub-discipline of work and provide the minimum technical qualifications for performing the work. NLCs address project-specific work categories not covered by the standard work categories.(11) Precertification--A department process conducted to verify that a provider meets the minimum technical requirements to perform work under a standard work category.(12) Prime provider--A firm that provides or proposes to provide architectural, engineering, or surveying services under contract with the state.(13) Prime provider project manager--An employee of a prime provider who serves as the point of contact for the provider to coordinate project deliverables and project performance with the department.(14) Professional Engineering Procurement Services (PEPS) Division--The department's division responsible for overseeing procurement planning, provider selection, leading the contract negotiations, administering the contract, and processing invoices.(15) Professional Engineering Procurement Services (PEPS) Division Director--The head of the PEPS Division.(16) Proposal--A response to a request for proposal that provides details on a provider's specific technical approach and qualifications.(17) Provider--A prime provider or subprovider.(18) Relative importance factor (RIF)--The numerical weight assigned to an evaluation criterion, used by the consultant selection team to score proposals and interviews.(19) Request for proposal (RFP)--A public announcement that advertises the department's intent to enter into an architectural, engineering, or surveying contract.(20) Short list--The list of prime providers most qualified to perform the services specified in an RFP, as demonstrated by the proposal scores.(21) Specific deliverable contract--A contract containing a specific scope of services that identifies deliverables, locations, and timing in sufficient detail to define the provider's responsibilities under the contract, although additional requirements may later be specified in work authorizations.(22) Standard work category--A formal classification, developed by the department, used to define a specific sub-group of work and provide the minimum technical qualifications for performing the work.(23) Subprovider--A firm that provides or supports, or proposes to provide or support, architectural, engineering, or surveying services under contract with a prime provider.</content><note type="source"><p>Source Note: The provisions of this §9.31 adopted to be effective February 21, 2013, 38 TexReg 994; amended to be effective October 17, 2013, 38 TexReg 7122; amended to be effective April 16, 2015, 40 TexReg 2098; amended to be effective July 20, 2016, 41 TexReg 5248; amended to be effective February 15, 2017, 42 TexReg 569; amended to be effective November 17, 2021, 46 TexReg 7806.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scC/s9.32"><num value="9.32">§9.32</num><heading>Selection Processes, Contract Types, Selection Types, and Projected Contracts</heading><content>(a) Selection processes. The department will issue RFPs and select providers under the following selection processes: non-federal under §9.34 of this subchapter (relating to Non-federal Process), federal under §9.35 of this subchapter (relating to Federal Process), emergency under §9.38 of this subchapter (relating to Emergency Contract Process), and urgent and critical under §9.39 of this subchapter (relating to Urgent and Critical Process).(b) Contract types. The department will offer three types of contracts: indefinite deliverable, specific deliverable, and multiphase.(1) An indefinite deliverable contract may be used for a single project or for multiple projects. The RFP will describe the typical work types to be performed under the contract.(A) Categorical limitations on contract dollar value may be established by the executive director or the executive director's designee.(B) The contract period in which work authorizations may be issued may not be longer than four years after the date of contract execution, unless approved by the Texas Transportation Commission.(C) Supplemental agreements may be issued to extend the contract period, but only as necessary to complete work on an existing work authorization. The contract period for contracts procured using the process provided by §9.35 of this subchapter may not extend more than five years beyond the execution date.(2) A specific deliverable contract may be used for a single project or for multiple projects. The RFP will specify the specific deliverables to be provided under the contract.(3) A multiphase contract may be used for a single project or for multiple projects. The RFP will describe the services to be provided under the contract and will divide the services into phases. The specific scope of work may be established, and the associated costs negotiated and authorized, by phase as the project progresses.(c) Selection types.(1) Single contract selection. One contract will result from the RFP.(2) Multiple contract selection. More than one contract of similar work types will result from the RFP. The RFP will indicate the number and type of contracts.(d) Projected contracts list. Quarterly, the department will publish on the department's website a list of projected contracts for architectural, engineering, and surveying services.</content><note type="source"><p>Source Note: The provisions of this §9.32 adopted to be effective February 21, 2013, 38 TexReg 994; amended to be effective October 17, 2013, 38 TexReg 7122; amended to be effective July 20, 2016, 41 TexReg 5248; amended to be effective November 15, 2017, 42 TexReg 6381; amended to be effective November 17, 2021, 46 TexReg 7806.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scC/s9.33"><num value="9.33">§9.33</num><heading>Precertification</heading><content>(a) Standard work categories. Precertification establishes the minimum technical qualifications to perform work under a standard work category. The department may add, revise, or delete a standard work category.(b) Contract eligibility.(1) To be eligible to perform work under a standard work category, a firm providing a task leader must have active precertification status in that work category by the closing date of the RFP.(2) The department will not delay the selection process or the contract execution to accommodate a provider that is not in active precertification status.(c) Precertification status of firms and employees.(1) A firm is precertified in a standard work category only if it employs an individual precertified in that category.(2) A firm that employs an individual who is precertified in multiple standard work categories is, by extension, precertified in each of those categories.(3) A firm's precertification status is only applicable to the incorporated business entity that employs the individual upon whom the firm's precertification status is based and does not extend to a subsidiary, affiliate, or parent of the incorporated entity.(4) An employee's precertification status is based solely on the individual's qualifications. A firm's qualifications may not serve as a basis for precertifying an employee.(5) Precertification status shall transfer with the employee, should the employee leave the firm.(d) Precertification website. The department will maintain a precertification website that will include:(1) the definitions of the standard work categories;(2) the minimum technical qualifications to perform work under the standard work categories; and(3) the precertification application form, with instructions.(e) Application and review process.(1) To apply for precertification in a standard work category, a firm must employ an individual qualified to become precertified in that category and present the individual's qualifications in a precertification application.(2) The department will consider the following factors in reviewing an application:(A) the minimum technical qualifications as applicable;(B) the individual's professional license or registration;(C) the individual's experience and training; and(D) any record that shows that the individual or the firm is the subject of a final administrative or judicial determination that the employee or firm has violated a statute or rule of a state licensing entity related to occupational or professional conduct.(3) If a submitted application is incomplete or inaccurate, the firm will be given an opportunity to correct the application and provide additional information. The firm must provide the information within 30 days after the day that it receives the department's notice that the application is incomplete or inaccurate.(4) If the information is not provided under paragraph (3) of this subsection within the 30-day period prescribed by that paragraph, the application will be processed at the end of that 30-day period with the information available.(5) The department will make a good faith effort to make a precertification determination within 60 days after the day that the department receives a complete and accurate application or if paragraph (4) of this subsection applies, within 60 days after the day that the 30-day period prescribed by that paragraph ends.(f) Appeal. A firm may appeal a precertification denial to the department by submitting additional information within 30 days after the day that it receives written notification of the denial. The information must justify why precertification should be granted. The department will review the information and make a second precertification determination. A firm may file a written complaint regarding a second precertification denial to the executive director or the executive director's designee.(g) Updates. A firm must report any change in its application information no later than 45 days after the day that the change occurs.(h) Data management. A firm's application information will be maintained in the Consultant Certification Information System (CCIS).(i) Annual renewal. To maintain contract eligibility, a firm must renew its precertification status no later than March 31 of each year. The firm must submit its annual renewal through the CCIS.(1) A firm that has renewed its precertification status by the annual deadline will maintain an active precertification status in the standard work categories in which it is precertified.(2) A firm that has not renewed its precertification by the annual deadline will be placed in inactive status.</content><note type="source"><p>Source Note: The provisions of this §9.33 adopted to be effective February 21, 2013, 38 TexReg 994; amended to be effective October 17, 2013, 38 TexReg 7122; amended to be effective February 15, 2017, 42 TexReg 569; amended to be effective November 17, 2021, 46 TexReg 7806.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scC/s9.34"><num value="9.34">§9.34</num><heading>Non-federal Process</heading><content>(a) Applicability. The non-federal process, also referred to as the state process, described under this section may be used for contracts that are not subject to §9.35 of this subchapter (relating to Federal Process).(b) Administrative qualification.(1) Administrative qualification is a process used by the department to verify that a provider performing engineering and design related services has an indirect cost rate that meets department requirements. Except as provided by paragraph (8) of this subsection, to compete for a contract under this section a provider performing engineering and design related services either must be administratively qualified or must accept an indirect cost rate under paragraph (7) of this subsection.(2) Factors in determining administrative qualification.(A) A provider may demonstrate administrative qualification by an audit or by self-certification.(i) An audit may be performed by an independent certified public accountant (CPA), an agency of the federal government, another state transportation agency, or a local transit agency. An audit performed by an independent CPA must be conducted in accordance with the current versions of 48 C.F.R. Part 31, the Generally Accepted Government Auditing Standards (GAGAS), and the American Association of State Highway and Transportation Officials (AASHTO) Uniform Audit and Accounting Guide. The provider must provide the department with unrestricted access to the audit work papers, records, and other information as requested by the department.(ii) Self-certification may be conducted by the provider and must include a cost report and an internal controls report. The self-certified cost report must comply with the current versions of 48 C.F.R. Part 31, the GAGAS, and the AASHTO Uniform Audit and Accounting Guide. The self-certified internal control report must certify the provider has internal controls in place within its organization. Both the cost report and the internal control report must be signed by a company officer and notarized.(B) The audit or self-certification shall be based on the provider's fiscal year. The indirect cost rate, as approved by the department, shall become effective six months after the end of the provider's fiscal year, or immediately if filed more than six months after the end of the provider's fiscal year. It shall be effective no more than twelve months and shall expire eighteen months after the end of the fiscal year upon which it is based, except that, for the purpose of competition referred to in paragraph (1) of this subsection, negotiations referred to in subsection (b)(5) of this section, or administratively qualified under §9.35(b) of this subchapter (relating to Federal Process), the department may extend an approved indirect cost rate for 90 days if the department has received the provider's annual administrative qualifications information submittal before the rate's expiration date.(C) A provider must submit on an annual basis:(i) a cognizant letter of concurrence issued by a state transportation agency in accordance with the AASHTO Uniform Audit and Accounting Guide; or(ii) a compensation analysis for all executives and employees in accordance with the AASHTO Uniform Audit and Accounting Guide for which the provider may use either the National Compensation Matrix or surveys as prescribed in the AASHTO Uniform Audit and Accounting Guide.(D) A provider's payment of a bonus or incentive compensation to an employee is allowable only if the bonus or compensation is paid under a written bonus plan that:(i) is consistent with the AASHTO Uniform Audit and Accounting Guide that identifies eligibility requirements and provides details regarding how bonus payments are determined; and(ii) includes an adequate description of the performance measures used to determine bonus amounts, such as employee performance evaluation ratings, contributions toward the firm's revenue growth, and responsibilities for cost containment.(E) A provider must submit on an annual basis the salary rates for employees that it anticipates using on contracts that may be executed during the next 12-month period. The department will review the salary rates for reasonableness and consistency with industry norms and when approved, will apply the rates to contracts negotiated within the next 12-month period. During the 12-month period, the provider must submit the salary rate for any employee who is used on a contract and whose salary rate has not been provided under this subparagraph. The department will continue to negotiate contracts on an individual basis during the initial 12-month implementation period.(F) The department may audit the indirect cost rate of a provider under contract with, or seeking to do business with, the department. These audits will be conducted in accordance with the criteria outlined in this subsection.(G) A provider must submit a signed Certification of Final Indirect Costs with the audit report or self-certification. The certification must follow the requirements of the Federal Highway Administration.(H) The department will treat the cost data as confidential pursuant to 23 U.S.C. Section 112 and 23 C.F.R. Part 172.(3) Submittal and review process for administrative qualification.(A) A provider must submit its administrative qualification information to the department in accordance with the instructions on the department's website.(B) Upon review of an audit report or self-certification received from a provider, the department may request additional information from the provider. If the submittal is not complete and accurate, the department will return it to the provider for correction. The provider shall submit the additional information or the corrected administrative qualification submittal within 30 days after the day that it receives the department's request. If the information is not received within the 30-day period, the department will reject and not process the administrative qualification submittal.(C) If an administrative qualification submittal is rejected under subparagraph (B) of this paragraph, the provider may refile a corrected audit report or self-certification and shall include any previously requested information. The provider may not refile earlier than 90 days after the day that the department sends the notice rejecting the submittal.(D) The department will make a good faith effort to complete the administrative qualification review process within 60 days after the day that it receives a complete and accurate audit report or self-certification.(4) Administrative qualification is applicable only to the incorporated business entity upon which the indirect cost rate is based and does not extend to a subsidiary, affiliate, or parent of the incorporated entity, except as provided by this paragraph. A corporation may administratively qualify a business segment of the corporation if the business segment is not limited to a geographical area that is less than the entire state of Texas and if the corporation is able to demonstrate and justify the allocation of costs between the business segment and other corporate operations. If a corporate business segment is administratively qualified, the resulting indirect cost rate is not applicable to staff not employed by the business segment.(5) In negotiations under §9.38 of this subchapter (relating to Emergency Contract Process), the department will use the selected firm's indirect cost rate information that is in effect at that time the negotiations begin.(6) The department will not provide a firm's administrative qualification information, including salary information, to the department's staff conducting negotiations or the consultant selection team before the selection of that firm.(7) Providers not administratively qualified. The department may contract with a prime provider or allow the use of a subprovider that is not administratively qualified if:(A) the provider has been in operation, as currently organized, for less than one fiscal year and the provider accepts an indirect cost rate developed by the department; or(B) on request by the department during the selection process, the prime provider provides written certification that the prime provider or subprovider, as applicable, does not have an indirect cost rate audit and will accept an indirect cost rate developed by the department.(8) Exemptions to administrative qualification.(A) A non-engineering firm is exempt from the administrative qualification requirement of this section.(B) A provider performing a service under standard work category 18.2.1, subsurface utilities engineering, or any of the following work groups, as listed on the department's precertification website, is exempted from administrative qualification, to the extent of the service being performed:(i) Group 6, bridge inspection;(ii) Group 12, materials inspection and testing;(iii) Group 14, geotechnical services;(iv) Group 15, surveying and mapping;(v) Group 16, architecture; and(vi) Group 17, facilities engineering.(C) The department may exempt services other than those indicated in subparagraph (B) of this paragraph on a case-by-case basis. Any request for an exemption must be received by the department by the closing date of the RFP.(c) Consultant selection team (CST).(1) The department shall use a CST in selecting providers under this section.(2) The CST shall be composed of at least three department employees.(3) At least one CST member must be a professional engineer, for engineering contracts; a registered architect, for architectural contracts; and either a professional engineer or registered professional land surveyor, for surveying contracts.(4) If a CST member leaves the CST during the selection process, the process may continue with the remaining members, subject to paragraph (3) of this subsection.(d) Request for proposals. Not fewer than 14 calendar days before the RFP closing date, the department will post on a web-based bulletin board an RFP providing the contract information and specifying the requirements for preparing and submitting a proposal.(e) Proposal. To be considered, a proposal must comply with the requirements specified in the RFP.(f) Replacements.(1) An individual may be proposed as a replacement for the prime provider project manager prior to the department's notification of firms short-listed for an interview or, if an interview is not required, prior to selection.(2) An individual may be proposed as a replacement for a task leader prior to contract execution.(3) A proposed replacement for the prime provider project manager must be an employee of the prime provider. A proposed replacement for a task leader must be an employee of the prime provider or its subprovider. A proposed replacement for either position must satisfy the applicable precertification and non-listed category requirements.(g) Proposal screening and evaluation.(1) The department may disqualify a proposal if the department has knowledge that a firm on the project team or an employee of a firm on the project team is the subject of a final administrative or judicial determination that the firm or employee has violated a statute or rule of a state licensing entity related to occupational or professional conduct.(2) If a proposal is not disqualified under paragraph (1) of this subsection, the CST will screen the proposal to determine whether it complies with the requirements specified in the RFP. Each proposal that meets these requirements will be considered responsive to the RFP and evaluated.(3) The CST will evaluate the responsive proposal according to the evaluation criteria detailed in the RFP based on factors the department has identified as most likely to result in the selection of the most qualified provider, including the prime provider's past performance scores, as contained in the department's database, that reflect less than satisfactory performance.(h) Short list. The short list will consist of the most qualified providers, as indicated by the proposal scores.(1) For single contract selections, the minimum number of short-listed prime providers is three, unless fewer than three prime providers submitted a responsive proposal.(2) For multiple contract selections, the minimum number of short-listed prime providers is the number of desired contracts plus three, unless fewer than the desired number of prime providers submitted a responsive proposal.(3) Notification.(A) The department will notify each prime provider that submitted a proposal whether it was short-listed.(B) The department will notify each short-listed prime provider whether a short list meeting will be held.(i) Short list evaluation.(1) An interview is required for any specific deliverable contract that is $5 million or more in value or any indefinite deliverable contract for higher-risk services as determined by the department based on project complexity, anticipated project costs, number of contracts, or type of services.(2) The RFP will state whether an interview will be required as part of the short list evaluation. The department will issue an Interview and Contract Guide (ICG) to each short-listed prime provider. The ICG will provide contract information and specify the requirements for the interview.(3) The CST will evaluate the interviews according to the criteria specified in the ICG.(j) Selection.(1) Basis of final selection.(A) If interviews are required, the CST will select the best qualified provider, as indicated by the interview scores.(B) If interviews are not required, the CST will select the best qualified provider, as indicated by the proposal scores.(2) Tie scores. The PEPS Division Director will break a tie using the following method.(A) The first tie breaker will be the scores for:(i) the interview criterion with the highest RIF; or(ii) if interviews are not required, the proposal criterion with the highest RIF.(B) The remaining criteria shall be compared in the order of decreasing RIF until the tie is broken.(C) If the providers have identical scores on all of the criteria, the provider will be chosen by random selection.(3) Notification. The department will:(A) provide written notification to the prime provider selected for contract negotiation and arrange a meeting to begin contract negotiations;(B) provide written notification to each short-listed prime provider that was not selected, notifying the provider of the non-selection; and(C) publish the short list and the selected provider on a web-based bulletin board.(4) Appeal. A provider may file a written appeal concerning the selection process with the executive director or the executive director's designee as provided under §9.7 of this chapter (relating to Protest of Contract Practices or Procedures).</content><note type="source"><p>Source Note: The provisions of this §9.34 adopted to be effective February 21, 2013, 38 TexReg 994; amended to be effective October 17, 2013, 38 TexReg 7122; amended to be effective April 16, 2015, 40 TexReg 2098; amended to be effective July 20, 2016, 41 TexReg 5248; amended to be effective February 15, 2017, 42 TexReg 569; amended to be effective June 20, 2019, 44 TexReg 2957; amended to be effective November 17, 2021, 46 TexReg 7806.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scC/s9.35"><num value="9.35">§9.35</num><heading>Federal Process</heading><content>(a) Applicability. This section applies to engineering or design related service contract directly related to a highway construction project and reimbursed with federal-aid highway program (FAHP) funding.(b) Administrative qualification. A firm providing engineering and design related services must be administratively qualified under §9.34(b)(2) - (6) of this subchapter (relating to Non-federal Process), or use an indirect cost rate applicable under Federal Highway Administration regulations or guidelines, by the closing date of the RFP to compete for contracts under this section. Section 9.34(b)(7) and (8) of this subchapter do not apply to a contract under this section.(c) Consultant selection team (CST); replacements. Section 9.34(c) and (f) of this subchapter apply to contract procurement under this section.(d) Request for proposal (RFP). Section §9.34(d) of this subchapter applies to contract procurement under this section.(e) Proposal; screening and evaluation. Section 9.34(e) and (g) of this subchapter apply to the contract procurement under this section.(f) Short list; evaluation; selection. Section §9.34(h) - (j) of this subchapter apply to the contract procurement under this section.</content><note type="source"><p>Source Note: The provisions of this §9.35 adopted to be effective February 21, 2013, 38 TexReg 994; amended to be effective August 15, 2013, 38 TexReg 5110; amended to be effective July 20, 2016, 41 TexReg 5248; amended to be effective May 16, 2018, 43 TexReg 3122; amended to be effective November 17, 2021, 46 TexReg 7806.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scC/s9.38"><num value="9.38">§9.38</num><heading>Emergency Contract Process</heading><content>(a) Applicability. The emergency contract process described in this section may be used when the executive director or the executive director's designee certifies in writing that an emergency situation, including a safety hazard, a substantial disruption of the orderly flow of traffic and commerce, or a risk of substantial financial loss to the department, exists, and that an architectural, engineering, or surveying services contract is needed to address the situation.(b) Administrative qualification. If the emergency contract is an engineering or design related services contract directly related to a highway construction project and reimbursed with federal-aid highway program (FAHP) funding, a provider must be administratively qualified to compete for the contract, and §9.34(b)(2)-(6) of this subchapter (relating to Non-federal Process) applies to this section. If the contract is not such a contract, a provider need not be administratively qualified to compete for the contract, and §9.34(b) of this subchapter applies to this section.(c) Notification.(1) After an emergency is certified, the department will review its list of precertified firms. If there are a sufficient number of firms, the department will notify at least three of these firms.(2) The department will inform the firms of the nature of the emergency and will provide the firms with the specifications for the remedy.(d) Evaluation and selection. The department will evaluate each firm's qualifications and select the best qualified firm to perform the services.</content><note type="source"><p>Source Note: The provisions of this §9.38 adopted to be effective October 17, 2013, 38 TexReg 7122; amended to be effective November 17, 2021, 46 TexReg 7806.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scC/s9.39"><num value="9.39">§9.39</num><heading>Urgent and Critical Process</heading><content>(a) Applicability. The urgent and critical process described in this section may be used when the executive director certifies in writing that an urgent and critical need exists that cannot otherwise be met, that there is sufficient objective reason to believe that a specific provider is the most qualified to perform these architectural, engineering or survey services based on that provider's demonstrated competence and qualifications, and that federal funds will not be involved in the contract. An urgent and critical need, is a circumstance that does not rise to the level of an emergency situation as described in §9.38 of this subchapter (relating to Emergency Contract Process), but does expose the department to an undue additional cost, that unless promptly addressed could escalate to an emergency situation.(b) Administrative qualification. Providers under this section are subject to §9.34(b) of this subchapter (relating to Non-federal Process).(c) Process.(1) After an urgent and critical need has been identified the department will review its list of pre-certified firms and survey available information to identify firms that are most qualified to perform the work needed to resolve the urgent and critical need.(2) The executive director will determine whether there is sufficient information to determine that one provider is objectively the most qualified to perform this work.(3) If information is not sufficiently available for the executive director to make this determination, the department may follow the process described in §9.38(c) and (d) of this subchapter to identify the most qualified firm.</content><note type="source"><p>Source Note: The provisions of this §9.39 adopted to be effective October 17, 2013, 38 TexReg 7122; amended to be effective November 17, 2021, 46 TexReg 7806.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scC/s9.40"><num value="9.40">§9.40</num><heading>Negotiations</heading><content>(a) Contract negotiations.(1) A contract that is subject to §9.34 of this subchapter (relating to Non-federal Process) or §9.35 of this subchapter (relating to Federal Process) will be negotiated in accordance with this subsection.(2) The department will enter negotiations with a selected prime provider to establish a satisfactory contract containing a fair and reasonable price for the services.(3) A selected prime provider shall submit to the department the actual salary rates for the proposed team members and the non-salary costs, generated internally, to be billed directly. The department will reference this information in the negotiations.(4) The department anticipates that a satisfactory contract containing a fair and reasonable price for the services may be negotiated within 30 days after the date that a selected prime provider is notified of the selection. If an RFP specifies that more than one contract will be awarded, the time for negotiating the contracts is automatically extended by a period equal to the number of additional contracts to be awarded under that RFP multiplied by five days. The department may grant additional extensions as required. The RFP may specify a shorter or longer time for the negotiations.(5) If the department determines that a fair and reasonable price cannot be negotiated, the department will terminate negotiations with the selected prime provider and proceed under this paragraph.(A) Single contract selection. The department will begin negotiations with the next highest-ranked prime provider. This process will continue as necessary through the three highest-ranked prime providers. If a fair and reasonable price cannot be negotiated with any of the three highest-ranked prime providers, the proposed contract shall be canceled. If the proposed contract is canceled, it may be re-advertised.(B) Multiple contract selection. The department will begin negotiations with the next highest-ranked prime provider not selected for a contract. This process will continue as necessary through the short-listed prime providers. If a fair and reasonable price cannot be negotiated with any of the short-listed prime providers, the proposed contract shall be canceled. If the proposed contract is canceled, it may be re-advertised.(b) Emergency contract negotiations.(1) Contracts subject to §9.38 of this subchapter (relating to Emergency Contract Process) will be negotiated in accordance with this subsection.(2) The department will enter negotiations with the selected provider to establish a satisfactory contract containing a fair and reasonable price for the services.(3) If the department determines that a fair and reasonable price cannot be negotiated, the department will terminate negotiations with the provider and begin negotiations with the next highest-ranked provider. This process will continue as necessary through the notified firms.(4) If a fair and reasonable price cannot be negotiated with any of the notified firms, the department may take any measure necessary to identify and solicit a firm that is able to perform the services.(c) Urgent and critical negotiations. The department will negotiate with the selected firm to establish a fair and reasonable price and the executive director will execute any agreement.(d) Indefinite deliverable work authorization negotiations.(1) Indefinite deliverable work authorizations will be negotiated in accordance with this subsection.(2) The department will enter negotiations with a selected prime provider to establish a satisfactory work authorization containing a fair and reasonable price for the services.(3) If the department determines that a fair and reasonable price cannot be negotiated, the department will terminate negotiations with the prime provider and begin negotiations with another prime provider with an indefinite deliverable contract.</content><note type="source"><p>Source Note: The provisions of this §9.40 adopted to be effective October 17, 2013, 38 TexReg 7122; amended to be effective November 17, 2021, 46 TexReg 7806.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scC/s9.41"><num value="9.41">§9.41</num><heading>Contract Administration</heading><content>(a) Prime provider's percentage of work. A prime provider shall perform at least 30 percent of the contracted work with its own work force, unless otherwise approved by the department.(b) Project manager replacement. The prime provider project manager may not be replaced without the prior written consent of the department.(c) Department audits. The department may perform interim and final audits.(d) Performance evaluations.(1) The department project manager will document the prime provider's performance on the contract by evaluating the prime provider project manager and the firm and may include evaluation of the prime provider's employee who is assisting with the management of a work authorization. Evaluations will be conducted at least once every 12 months and at the completion of the contract.(2) Further evaluations pertaining to project constructability may be conducted during project construction and at the completion of the construction contract.(3) The department will give a copy of each completed performance evaluation to the prime provider for review and comment. The prime provider's comments will be entered into the department's evaluation database.(4) Performance evaluation scores will be entered into the department's evaluation database and may be used for the purpose of provider selection.(e) Negotiated resolution of disputes. To every extent possible, disputes between a prime provider and the department's project manager should be resolved during the course of the contract.(f) Prime provider performance evaluation dispute review.(1) If a resolution is not reached with the department's project manager and district engineer or division director, the prime provider may request a review by the PEPS Division Director by submitting a written request for review to the PEPS Division Director not later than 10 days after the date of receipt of a final signed performance evaluation. In the written request, the prime provider must identify the issue or error and provide supporting information.(2) The PEPS Division Director will gather information, study relevant issues, and meet informally with the prime provider and relevant department staff. The PEPS Division Director may void the performance evaluation, request a re-evaluation or adjustment, or affirm the original performance evaluation. The PEPS Division Director will provide the decision to the prime provider in writing. The PEPS Division Director's decision is final.(g) Resolution of contracting or compensation disputes. If resolution of a contracting or compensation dispute between the prime provider and department's project manager or district engineer is not reached, the PEPS Division Director may in the director's discretion participate in the resolution of the dispute. The prime provider may file a written claim under §9.2 of this chapter (related to Contract Claim Procedure).</content><note type="source"><p>Source Note: The provisions of this §9.41 adopted to be effective October 17, 2013, 38 TexReg 7122; amended to be effective July 20, 2016, 41 TexReg 5248; amended to be effective May 16, 2018, 43 TexReg 3122; amended to be effective November 17, 2021, 46 TexReg 7806.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scC/s9.42"><num value="9.42">§9.42</num><heading>Contract Under a Pilot Program</heading><content>(a) This section provides an exception to the selection requirements provided by other provisions of this subchapter for the procurement of architectural, engineering, or surveying services under a pilot project approved by the commission for the purposes of improving the efficiency and fairness of the department's qualifications-based procurement processes.(b) The executive director or the executive director's designee may authorize the execution of an engineering, architecture, or surveying contract under this section. The authorization must be in writing and must contain findings that:(1) the procurement resulting in the contract:(A) does not violate state or federal law;(B) provided a fair opportunity for qualification-based competition; and(C) was conducted as part of the pilot project described by subsection (a) of this section;(2) the contract does not expend federal funds; and(3) execution of the contract is in the public interest.</content><note type="source"><p>Source Note: The provisions of this §9.42 adopted to be effective October 17, 2013, 38 TexReg 7122.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c9/scE"><num value="E">SUBCHAPTER E</num><heading>MAINTENANCE PROJECT CONTRACTS</heading><section identifier="/us/state/tx/tac/t43/p1/c9/scE/s9.70"><num value="9.70">§9.70</num><heading>Purpose</heading><content>Transportation Code, §201.103, requires the commission to plan and make policies for the maintenance of a comprehensive system of state highways and public roads. Transportation Code, §223.042 requires the department to contract a minimum percentage of maintenance project contracts to the private sector. This subchapter identifies the process by which the department determines the cost effectiveness of this contracting and the activities to contract to the private sector.</content><note type="source"><p>Source Note: The provisions of this §9.70 adopted to be effective December 16, 1996, 21 TexReg 11828.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scE/s9.71"><num value="9.71">§9.71</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, will have the following meanings, unless the context clearly indicates otherwise.(1) Department--The Texas Department of Transportation.(2) Maintenance project--Any routine or preventive maintenance activity, including but not limited to: mowing; highway cleaning and sweeping; litter pickup; repair and replacement of metal beam guardrail, median barriers, and fences; janitorial and yard maintenance of rest areas and picnic areas; installation, repair and replacement of traffic control pavement markings, signals and signs; landscape maintenance, tree trimming, and brush removal; cleaning and sealing of pavement joints and cracks; repair of broken pavement edges and stabilization of shoulders; cleaning and repair of drainage structures, silt and erosion control and repair; cleaning and sealing of bridge joints; bridge repairs and maintenance; concrete removal and replacement, riprap, and curbs; repair of asphalt pavement and base; highway overlaying; paint and bead striping; maintenance and repair of safety lighting and illumination; painting of rest area and other structures; and maintenance and repair of dolphin and fender systems.</content><note type="source"><p>Source Note: The provisions of this §9.71 adopted to be effective December 16, 1996, 21 TexReg 11828.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scE/s9.72"><num value="9.72">§9.72</num><heading>Privatization of Maintenance Contracts</heading><content>(a) Percentage of private contracts. Of the amount spent in a fiscal year by the department for maintenance projects, the department will expend not less than 50% through contracts awarded by the competitive bidding process.(b) Dollar amount. Subsection (a) of this section does not apply unless the department determines that a function of comparable quality and quantity can be purchased or performed at a savings by using private sector contracts.(c) Materials. Materials purchased by the department for maintenance projects performed by department personnel do not apply toward the calculation of the percentage to be contracted.(d) Expenditures. The contract amount will include payments:(1) to contractors for preventive or routine maintenance work;(2) for services, such as material testing and training related to maintenance projects;(3) for other operating costs contracted (such as janitorial and mechanical); and(4) for rent or lease of equipment for maintenance work.</content><note type="source"><p>Source Note: The provisions of this §9.72 adopted to be effective December 16, 1996, 21 TexReg 11828.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scE/s9.73"><num value="9.73">§9.73</num><heading>Determining Costs and Quality</heading><content>(a) Evaluation consideration. The department will perform evaluations of the quality and cost of maintenance projects to determine whether to use the private sector for maintenance projects.(b) Evaluations.(1) The department will perform evaluations by maintenance activity, geographic area, or individual project, as appropriate, to determine whether the savings required can be realized. These evaluations will consider:(A) the cost-accounting guidelines of the State Auditor's Office, either those published in the Guide to Implement the Competitive Cost Review Program, or other guidelines developed by the State Auditor's Office specifically regarding maintenance projects; and(B) the department's financial reports used to perform the evaluations.(2) Individualized evaluations based on other documented criteria and data will be accepted for projects for which:(A) the specifications are not typical or utilized previously and for which the information in historical financial reports would not be representational;(B) the location, working conditions, or environmental considerations are not typical and for which the information in historical financial reports would not be representational; and(C) special material or equipment or other needs are not typical and for which the information in historical financial reports would not be representational.(3) In order to ensure stability and efficiency in staff planning and in the department's use of equipment, consideration of changing long-term trends and market volatility will be included in the evaluation, and may require decisions either for or against the use of contract or in-house performance of maintenance projects to allow for short-term evaluation of bidding or pricing patterns.</content><note type="source"><p>Source Note: The provisions of this §9.73 adopted to be effective December 16, 1996, 21 TexReg 11828.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c9/scF"><num value="F">SUBCHAPTER F</num><heading>CONTRACTS FOR SCIENTIFIC, REAL ESTATE APPRAISAL, RIGHT OF WAY ACQUISITION, AND LANDSCAPE ARCHITECTURAL SERVICES</heading><section identifier="/us/state/tx/tac/t43/p1/c9/scF/s9.80"><num value="9.80">§9.80</num><heading>Purpose</heading><content>(a) Transportation Code, Chapter 223, Subchapter D, provides that the department may follow a procedure using competitive sealed proposals to procure the services of technical experts including archeologists, biologists, geologists, historians, or other technical experts to conduct environmental and cultural assessments for transportation projects within the authority or jurisdiction of the department. This subchapter, which implements Chapter 223, Subchapter D of the Transportation Code, establishes standard procedures for selection of technical experts to provide scientific services including environmental and cultural studies, analyses, and document preparation.(b) This subchapter also establishes standard procedures for selection of appraisers, right of way acquisition providers, and landscape architects in accordance with Government Code, Chapter 2254, Subchapter A, the Professional Services Procurement Act.</content><note type="source"><p>Source Note: The provisions of this §9.80 adopted to be effective March 21, 1999, 24 TexReg 1829; amended to be effective February 20, 2000, 25 TexReg 1146; amended to be effective January 4, 2001, 25 TexReg 13009.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scF/s9.81"><num value="9.81">§9.81</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Appraiser--An individual certified by the Texas Appraiser Licensing and Certification Board to provide real estate appraisal services in Texas.(2) Competitive sealed proposals--A procurement method in which offers are solicited from a number of sources, and selection is made using criteria other than cost, although reasonableness of cost is a selection criterion.(3) Department--The Texas Department of Transportation.(4) Department-certified appraiser--An appraiser who has been certified by the department in accordance with §9.89 of this subchapter to perform real estate appraisal services.(5) Indefinite delivery contract--A contract that contains a general scope of services, maximum contract amount, and contract termination date in which contract rates are negotiated prior to contract execution, and work is authorized as needed.(6) Landscape architect--An individual licensed to practice landscape architecture in the state or states that he or she performs professional services.(7) Mandatory/minimum qualifications--Those qualifications listed in the request for proposals that the provider must demonstrate it meets in order for the proposal to be considered responsive.(8) Provider--An individual or entity that provides scientific, appraisal, right of way acquisition, or landscape architectural services.(9) Request for proposals (RFP)--A request for submittal of a proposal that demonstrates competence and qualifications of the provider to perform the requested services and shows an understanding of the specific project.(10) Right of way acquisition provider (ROW provider)--A firm performing right of way acquisition, including appraisal services, but excluding surveying, engineering, or architectural services.(11) State-certified general appraiser--An appraiser authorized to appraise all types of real property without regard to complexity or transaction value.(12) State-certified residential appraiser--An appraiser authorized to appraise 1-4 unit residential properties without regard to transaction value or complexity of the appraisal.(13) Subprovider--A provider proposing to perform work through a contractual agreement with the provider.(14) Scientific services--Environmental or cultural studies, analyses, and document preparation services required by state or federal law, for a transportation project within the authority or jurisdiction of the department, and performed by an archeologist, biologist, geologist, historian, architectural historian, or other technical expert.(15) Technical expert--An archeologist, biologist, geologist, historian, architectural historian, or other non-engineering expert in a natural, social, historical, or environmental science qualified to conduct an environmental or cultural study required by state or federal law for a transportation project. This definition includes a firm or institution employing one or more technical experts.</content><note type="source"><p>Source Note: The provisions of this §9.81 adopted to be effective March 21, 1999, 24 TexReg 1829; amended to be effective February 20, 2000, 25 TexReg 1146; amended to be effective January 4, 2001, 25 TexReg 13009; amended to be effective February 18, 2016, 41 TexReg 1127.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scF/s9.82"><num value="9.82">§9.82</num><heading>Use of Providers</heading><content>The department may use competitive sealed proposals to procure scientific, appraisal, right of way acquisition, and landscape architectural services.</content><note type="source"><p>Source Note: The provisions of this §9.82 adopted to be effective March 21, 1999, 24 TexReg 1829; amended to be effective February 20, 2000, 25 TexReg 1146; amended to be effective January 4, 2001, 25 TexReg 13009.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scF/s9.83"><num value="9.83">§9.83</num><heading>Notice and Letter of Interest</heading><content>(a) Notice. When the department elects to use competitive sealed proposals to procure appraisal, right of way acquisition, landscape architectural, and scientific services, notice will be given as follows.(1) Electronic notice. Not less than 21 days before the proposal due date, the department will post a notice on an electronic bulletin board. The notice will contain the:(A) proposed contract or RFP number;(B) type of selection in accordance with §9.87 of this subchapter (relating to Selection);(C) general description of the project and work to be done;(D) due date for providers to send letters of interest to the department;(E) contact person;(F) date and location of the proposal meeting, if applicable; and(G) if the notice is for an appraiser, a statement that the appraiser must be a department-certified appraiser.(2) Organizations. The department will publish a quarterly statewide list of projected contracts to be issued under this subchapter and will provide upon request, or make available on the department's Web site, a copy of the list to community, business, and professional organizations for dissemination to their membership.(b) Letter of interest.(1) The provider may obtain an RFP packet by:(A) sending a letter of interest to the department notifying the department of the provider's interest in the contract;(B) downloading it from the department's Web site; or(C) obtaining it at the proposal meeting, if applicable.(2) The department will accept a letter of interest by electronic facsimile.(c) Requests for proposals. The RFP packet will include:(1) the requirements for a responsive proposal including:(A) date, time, and location for submittal of the proposal;(B) an outline of the required proposal format and content; and(C) mandatory/minimum provider qualifications;(2) scope of services to be provided by the department;(3) scope of services to be provided by the provider;(4) proposed contract duration;(5) proposed method of payment;(6) any constraints directly relating to the performance of the contract, if applicable;(7) description of the evaluation criteria including numerical weighting values;(8) a copy of the evaluation matrices;(9) type of contract selection;(10) a copy of the proposed contract, with all attachments;(11) criteria for breaking ties, if criteria are different from that outlined in §9.85(e) of this subchapter (relating to Evaluation);(12) any special contract requirements.(d) Proposal meeting. The meeting may be either mandatory or optional at the discretion of the department. If the meeting is mandatory, the department will only accept proposals from providers represented at the meeting. The proposal meeting provides an opportunity for the provider to seek clarification or ask questions concerning the contract.</content><note type="source"><p>Source Note: The provisions of this §9.83 adopted to be effective March 21, 1999, 24 TexReg 1829; amended to be effective February 20, 2000, 25 TexReg 1146; amended to be effective January 4, 2001, 25 TexReg 13009; amended to be effective January 5, 2012, 36 TexReg 9348; amended to be effective February 18, 2016, 41 TexReg 1127.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scF/s9.84"><num value="9.84">§9.84</num><heading>Proposals</heading><content>(a) Proposal format. The proposal shall be limited to the contents specified in the RFP packet plus the provider's price for the required services.(b) Receiving proposals. All proposals must be received by the date, time, and location specified in the RFP packet. Proposals will not be accepted by electronic facsimile.(c) Opening proposals. The department will open proposals and conduct evaluations in confidence, and there will be no disclosure of contents to competing providers during the negotiation process. After the contract is awarded, all proposals shall be open for public inspection except as provided in Government Code, Chapter 552.(d) Non-responsive proposals. A proposal which does not include all the requirements set forth in the RFP will be rejected as non-responsive and will not be considered further.</content><note type="source"><p>Source Note: The provisions of this §9.84 adopted to be effective March 21, 1999, 24 TexReg 1829; amended to be effective February 20, 2000, 25 TexReg 1146.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scF/s9.85"><num value="9.85">§9.85</num><heading>Evaluation</heading><content>(a) Technical expert and ROW provider evaluation criteria. The department will evaluate a technical expert's or ROW provider's responsive proposal based on the following criteria, if applicable:(1) professional qualifications;(2) experience of the firm and the team or individuals;(3) merits of the proposal, including unique or innovative methods for performing the work;(4) ability to commit personnel, time, and other resources to the project (technical experts cannot be removed from association with the contract without prior consent by the department);(5) demonstrated understanding of the scope of services to be provided, including identifying which type of work will be performed by a subprovider, if any;(6) demonstrated understanding of applicable rules, regulations, policies, and other requirements associated with the environmental or cultural studies, analyses, or document preparation to be performed;(7) ability to meet department scheduling requirements;(8) past performance of the provider, specific provider staff, or subproviders on similar contracts; and(9) reasonableness of fee.(b) Landscape architect evaluation. The department will evaluate a landscape architect's responsive proposal based on the following criteria:(1) experience of the project manager and project team;(2) demonstrated understanding of the scope of services to be provided, including identifying which type of work will be performed by a subprovider, if any;(3) references including the ability to meet deadlines over the past three years;(4) ability to meet department scheduling requirements; and(5) reasonableness of fee.(c) Appraiser evaluation. An appraiser must be a department-certified appraiser. The department will evaluate a department-certified appraiser's responsive proposal based on the following criteria:(1) experience of the individual;(2) demonstrated understanding of the scope of services to be provided;(3) references including the ability to meet deadlines over the past three years;(4) ability to meet department scheduling requirements; and(5) reasonableness of fee.(d) Evaluation scale. The department will assign a numerical weighting value to each evaluation criterion and then score each criterion based upon a numerical scale.(e) Evaluation matrix. The department will evaluate each responsive proposal using an individual proposal evaluation matrix.(f) Tie scores. In the event of a tie, the managing officer will break the tie using the following method unless different criteria have been listed in the RFP.(1) The first tie breaker, if needed, will be references/past performances.(2) The second tie breaker, if needed, will be ability to meet department scheduling requirements.(3) If there is still a tie, the provider will be chosen by random selection.</content><note type="source"><p>Source Note: The provisions of this §9.85 adopted to be effective March 21, 1999, 24 TexReg 1829; amended to be effective February 20, 2000, 25 TexReg 1146; amended to be effective January 4, 2001, 25 TexReg 13009; amended to be effective February 18, 2016, 41 TexReg 1127.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scF/s9.86"><num value="9.86">§9.86</num><heading>Discussions for Best and Final Offer for Scientific, Appraisal, Right of Way Acquisition, and Landscape Architectural Services</heading><content>(a) When it is determined to be in the best interests of the state for scientific, appraisal, right of way acquisition, and landscape architectural service contracts, the department may elect to include discussions with the top three responsive providers to clarify their best and final offer prior to selection. In the case of selecting multiple providers, discussions will be held with a number of providers equal to the number of contracts to be awarded plus three. Discussions for best and final offer will occur following completion of the steps in §9.82 through §9.85 of this subchapter, relating to contracts for scientific, appraisal, right of way acquisition, and landscape architectural services.(b) If the department elects to conduct discussions as provided for in subsection (a) of this section, the top providers, as determined by subsection (a) of this section, shall be given an equal opportunity to discuss and revise their proposals. The department will not disclose any information derived from proposals submitted by competing providers during these discussions. Discussions will include any portion of the responsive proposal in order to assess a provider's ability to meet the RFP requirements, and an opportunity for the provider to demonstrate an understanding of the project and remedy the proposal's deficiencies. Discussions may include reasonableness of fee.(c) After completing discussions with providers, the department will send written notification to each provider to submit a best and final offer. The proposals will be reevaluated using the criteria in §9.85 of this title (relating to Evaluation). The evaluation shall be made in writing and shall include the individual proposal evaluation matrix as specified in §9.85(d) of this title.</content><note type="source"><p>Source Note: The provisions of this §9.86 adopted to be effective March 21, 1999, 24 TexReg 1829; amended to be effective February 20, 2000, 25 TexReg 1146; amended to be effective January 4, 2001, 25 TexReg 13009.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scF/s9.87"><num value="9.87">§9.87</num><heading>Selection</heading><content>The department will perform three types of contract selections.(1) Individual contract selection. One contract will result from the contract notice.(2) Multiple contract selection. More than one contract, of similar work types and estimated amounts, will result from the contract notice. The notice will indicate the number and type of contracts to result from the advertisement, and specify a range of scores for providers that will be considered qualified to perform the work.(3) Indefinite delivery contract selection.(A) This contract selection may be for award of contracts to single or multiple providers to perform work under a general scope of services.(B) The type of work will be described in the contract. Specific services shall be authorized by individual work authorizations on an as-needed basis. The maximum contract amount, contract period, and work authorization issuance period shall be specified in the contract.(C) All work authorizations under an indefinite delivery contract shall be issued within four years of the effective date of the contract, except for scientific services. For scientific services, the initial work authorization for any specific project must be issued within four years. The work authorization for tasks or subtasks within the specific project may be issued after the initial four years, provided that the task or subtask does not initiate a new project.</content><note type="source"><p>Source Note: The provisions of this §9.87 adopted to be effective March 21, 1999, 24 TexReg 1829; amended to be effective February 20, 2000, 25 TexReg 1146; amended to be effective January 4, 2001, 25 TexReg 13009; amended to be effective May 20, 2004, 29 TexReg 4928; amended to be effective February 18, 2016, 41 TexReg 1127; amended to be effective November 20, 2019, 44 TexReg 7059.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scF/s9.88"><num value="9.88">§9.88</num><heading>Award</heading><content>(a) The department will make the award to the provider submitting the highest-ranked proposal and will notify the other providers of the selection. For multiple awardees under a single RFP, the department will make awards to the highest ranked providers.(b) If the department finds that none of the proposals are acceptable, the department will reject all proposals.</content><note type="source"><p>Source Note: The provisions of this §9.88 adopted to be effective March 21, 1999, 24 TexReg 1829; amended to be effective February 20, 2000, 25 TexReg 1146.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scF/s9.89"><num value="9.89">§9.89</num><heading>Qualification Requirements for Department-Certified Appraisers</heading><content>(a) Eligible individuals. To become a department-certified appraiser, an applicant must:(1) be a state-certified general appraiser or state-certified residential appraiser;(2) have demonstrated experience after state certification in the performance of appraisal types required by the department; and(3) submit to the Right of Way Division of the Texas Department of Transportation in Austin a complete and correct application for department certification on a form prescribed by the department, including, but not limited to, a copy of the applicant's state certification issued by the state of Texas Appraiser Licensing and Certification Board.(b) Certification as a department-certified appraiser does not guarantee that work will be awarded to the appraiser.(c) An applicant will be notified, within 60 days after the day of the Right of Way Division's receipt of a complete and correct application form, that the applicant has been certified as a department-certified appraiser, that the applicant did not meet the requirements for department certification, or that additional information or documentation will be required for review.(d) If the application is incomplete, the applicant will be requested to submit additional information or documentation for review. The applicant shall submit such information or documentation within 30 days of receipt of the department's request for such information or documentation. If the information is not provided within 30 days after receipt of the request, the application for department certification will be processed with the information available. The department will make a determination on department certification status within 60 days of receipt of the additional information.(e) Renewal of department certification will be required within 60 days after the issuance of the appraiser's renewal of the state certification issued by the Texas Appraiser Licensing and Certification Board. Department certification terminates on the date that state certification expires or is surrendered, suspended, or revoked.(f) Appeal. An applicant may appeal denial of department certification by submitting additional information within 30 days of receipt of written notification of denial to the Director of the Right of Way Division in Austin. This information shall justify why the applicant meets the requirements for a department-certified appraiser. The Director of the Right of Way Division will review the information and make a determination regarding department certification. An applicant may appeal that determination by filing a written complaint regarding denial of department certification with the executive director or his or her designee.</content><note type="source"><p>Source Note: The provisions of this §9.89 adopted to be effective January 4, 2001, 25 TexReg 13009; amended to be effective February 18, 2016, 41 TexReg 1127.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c9/scH"><num value="H">SUBCHAPTER H</num><heading>REMEDIES FOR NONCOMPLIANCE</heading><section identifier="/us/state/tx/tac/t43/p1/c9/scH/s9.130"><num value="9.130">§9.130</num><heading>Purpose</heading><content>The department is required by law to monitor grantee compliance with federal and state laws. The department may impose remedies on a grantee if the department determines that the grantee has failed to comply with federal or state law, standard or special grant conditions, or contractual agreements on which the grant award is predicated. The remedies provided under this subchapter are in addition to any enforcement provisions of an award document, description of a specific grant, or rules governing a specific grant program or any other remedy legally available.</content><note type="source"><p>Source Note: The provisions of this §9.130 adopted to be effective June 17, 2010, 35 TexReg 5077; amended to be effective March 17, 2021, 46 TexReg 1660.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scH/s9.131"><num value="9.131">§9.131</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Executive director--The executive director of the Texas Department of Transportation.(2) Grant--An award of funds or property in lieu of funds made by the department to a grantee or by the grantee to another individual or entity. The term does not include:(A) procurement purchases;(B) technical assistance;(C) assistance in the form of revenue sharing, loans, loan guarantees, interest subsidies, or insurance;(D) assistance for which no accounting by the grantee is required; or(E) payments that are made to a contractor for the purpose of obtaining goods and services and that create a procurement relationship between the department and the contractor.(3) Grantee--An individual or entity to which a grant is awarded. The term includes an individual or entity that receives an award that is for the purpose of carrying out a part of a federal or state award and that creates a federal or state assistance relationship between the department and that individual or entity.</content><note type="source"><p>Source Note: The provisions of this §9.131 adopted to be effective June 17, 2010, 35 TexReg 5077; amended to be effective March 17, 2021, 46 TexReg 1660.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scH/s9.132"><num value="9.132">§9.132</num><heading>Additional Award Conditions</heading><content>(a) In addition to the standard conditions for a grant, the department may require one or more additional conditions under this section if the department determines that additional conditions are needed to ensure compliance with applicable laws and standard grant conditions and requirements.(b) The department may:(1) provide that grant payments will be made as reimbursements rather than advance payments;(2) withhold authority for the grantee to proceed to the next phase until the department receives evidence of acceptable performance within a given period of performance;(3) require additional or more detailed financial or performance reports;(4) require additional project monitoring;(5) require the grantee to obtain technical or management assistance;(6) establish additional prior approvals; or(7) require the grantee to comply with an improvement action plan that identifies specific strategies and actions to ensure the grantee's compliance with applicable laws and standard grant conditions and requirements.(c) The department will provide to the grantee a notice of each additional condition required under this section. The notice must:(1) describe the additional condition;(2) state the reason for the additional condition;(3) state the time allowed for completing the additional condition, if applicable;(4) state the action, if any, that the grantee may take to end the application of the additional condition; and(5) set out the procedure for the grantee to request reconsideration of the determination under subsection (a) of this section to require the additional condition.</content><note type="source"><p>Source Note: The provisions of this §9.132 adopted to be effective March 17, 2021, 46 TexReg 1660.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scH/s9.133"><num value="9.133">§9.133</num><heading>Remedies for Noncompliance</heading><content>(a) If after the award of a grant the department determines that the grantee has failed to comply with federal or state law, a grant condition, or the grant agreement, the department may:(1) temporarily withhold cash payments pending correction of the deficiency by the grantee;(2) disallow the cost of the activity or action that is not in compliance and take action for the repayment of those disallowed costs;(3) require one or more of the additional conditions described in §9.132 of this subchapter (relating to Additional Award Conditions).(b) If the department determines that the grantee's noncompliance cannot be remedied by actions under subsection (a) of this section, the department may take one or more actions under this subsection. The department may:(1) wholly or partly suspend or terminate the award;(2) initiate proceedings under Chapter 10, Subchapter F of this title (relating to Sanctions and Suspension for Ethical Violations by Entities Doing Business with the Department), for the suspension or debarment of the grantee;(3) withhold other federal awards for the project or program; or(4) take any other remedy that is legally available to the department.</content><note type="source"><p>Source Note: The provisions of this §9.133 adopted to be effective March 17, 2021, 46 TexReg 1660.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scH/s9.134"><num value="9.134">§9.134</num><heading>Notice of Remedies</heading><content>If the department decides to take an action under §9.133 of this subchapter (relating to Remedies for Noncompliance), the department will notify the grantee in writing within five working days after the date of the decision. The notice must:(1) state the action being taken and, if applicable, the period for which the action will be taken;(2) summarize the facts and circumstances underlying the action being taken; and(3) explain how the action was selected.</content><note type="source"><p>Source Note: The provisions of this §9.134 adopted to be effective March 17, 2021, 46 TexReg 1660.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scH/s9.135"><num value="9.135">§9.135</num><heading>Appeal of Decision on Remedies</heading><content>(a) A grantee may appeal a determination under §9.133 of this subchapter (relating to Remedies for Noncompliance), by delivering to the executive director a written notice of appeal and accompanying written documentation supporting the appeal within 10 working days after the date of receipt of the notice under §9.134 of this subchapter (relating to Notice of Remedies).(b) The executive director will make a decision on the department's determination and may impose a lesser remedy for noncompliance. The executive director will notify the grantee in writing of the executive director's decision on the appeal within 5 working days after the date of that decision.(c) The executive director may delegate to a department employee who holds a position that is not below the level of division director any power or duty assigned to the executive director by this section.(d) A decision under subsection (b) of this section is final and not subject to judicial review.</content><note type="source"><p>Source Note: The provisions of this §9.135 adopted to be effective March 17, 2021, 46 TexReg 1660.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c9/scI"><num value="I">SUBCHAPTER I</num><heading>DESIGN-BUILD CONTRACTS</heading><section identifier="/us/state/tx/tac/t43/p1/c9/scI/s9.150"><num value="9.150">§9.150</num><heading>Purpose</heading><content>Transportation Code, Chapter 223, Subchapter F, authorizes the department to enter into design-build contracts for highway projects and prescribes the requirements for entering into such a contract. This subchapter prescribes the procurement process to be followed by the department for a design-build contract and conditions on private participation in design-build contracts.</content><note type="source"><p>Source Note: The provisions of this §9.150 adopted to be effective March 15, 2012, 37 TexReg 1780; amended to be effective September 14, 2016, 41 TexReg 7134.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scI/s9.151"><num value="9.151">§9.151</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise.(1) Affiliate--An entity that directly or indirectly controls, is controlled by, or is under common control with a private entity.(2) Commission--The Texas Transportation Commission.(3) Conflict of interest--A circumstance arising out of the existing or past activities, business interests, contractual relationships, or organizational structure of a consultant, proposer, or design-build contractor, where:(A) the private entity is or may be unable to give impartial assistance or advice to the department;(B) the private entity's objectivity in performing the scope of work sought by the department is or might be otherwise impaired;(C) the private entity has an unfair competitive advantage;(D) the private entity's performance of services on behalf of the department provides or may provide an unfair competitive advantage to a third party; or(E) there is a reasonable perception or appearance of impropriety or unfair competitive advantage benefiting the private entity or a third party as a result of the private entity's participation in a design-build project.(4) Consultant--An individual or business entity, including any division or affiliate of the entity, retained by the department to provide consultant services in connection with a design-build project. The term includes an individual or business entity providing or that has provided services under contract to a consultant, either directly or through a subconsultant, at any level.(5) Consultant services--All services provided to the department by an independent contractor under a best value or qualifications based procurement method, including architectural and engineering services, right-of-way acquisition services, environmental services, procurement services, traffic and revenue services, project oversight services, financial services including financial advisory and banking services, and legal services.(6) Control--The possession, directly or indirectly, of the power to cause the direction of the management of the entity, whether through voting securities, by contract, family relationship, or otherwise.(7) Department--The Texas Department of Transportation.(8) Design--Includes planning services, technical assistance, and technical studies provided in support of the environmental review process undertaken with respect to a highway project, as well as surveys, investigations, the development of reports, studies, plans and specifications, and other professional services provided for a highway project.(9) Design-build contract--An agreement that includes both design and construction services for the construction, expansion, extension, rehabilitation, alteration, or repair of a highway project, and that may include the maintenance of a highway project.(10) Design-build contractor--A partnership, corporation, or other legal entity or team that includes at a minimum an engineering firm and a construction contractor qualified to engage in the construction of highway projects in Texas.(11) Design-build program--The department's program for the procurement, implementation, and administration of design-build contracts under this subchapter.(12) Environmental services--Some or all of the following services provided to the department with respect to a project developed under a design-build contract:(A) the study and evaluation of alternatives and potential environmental impacts of the proposed project;(B) preparation of environmental analysis and impact documents relating to the project, including facility and corridor analyses and draft and final environmental assessments and environmental impact statements; and(C) planning associated with the environmental approval, permitting, and clearance process for the project.(13) Executive director--The executive director of the department or designee not below the level of a person in a senior leadership position who reports directly to the executive director.(14) Financial services--Some or all of the following services provided to the department with respect to a project developed under a design-build contract:(A) acting in the capacity of financial advisor to the department by providing advice on finance-related issues, including development of short-term or long-term finance strategy and plans of finance for individual projects or on an ongoing basis;(B) identifying and pursuing sources of funds; and(C) acting as underwriter, either lead or co-lead for a revenue bond issuance on a project or facility, but excluding underwriters for bonds that are not related to a project developed under a design-build contract.(15) Gift or benefit--Anything reasonably regarded as pecuniary gain or pecuniary advantage, including any benefit or favor to another person in whose welfare the beneficiary has a direct and substantial interest, regardless of whether the donor is reimbursed. The term includes, but is not limited to, cash, loans, meals, lodging, services, tickets, door prizes, free entry to entertainment or sporting events, transportation, or hunting or fishing trips.(16) Highway project--A single highway facility between two defined points in a corridor, or two or more contiguous highway facilities.(17) Legal services--Some or all of the following services with respect to a project developed under a design-build contract:(A) providing advice on legal issues and strategies relating to project environmental approvals, planning, procurement, financing, contract administration, risk management, and disputes, claims, or litigation; and(B) reviewing, drafting, and negotiating procurement documents, project contracts, and other documents.(18) Preliminary engineering and architectural services--Preparation of preliminary design and architectural documents and reports, utility and right-of-way mapping, and provision of similar technical documents that will be incorporated by others into a request for qualifications or request for proposals, but not including the evaluation or selection of alignments in connection with the development of environmental documents, assistance with development of the solicitation documents, design-build contractor scope of work/technical provisions, evaluation criteria for a procurement, or other items that would constitute environmental services or procurement services.(19) Procurement services--Some or all of the following services provided to the department with respect to a project developed under a design-build contract:(A) development of procurement strategy;(B) development and preparation of the solicitation documents, design-build contractor scope of work/technical provisions, or contract documents;(C) implementation and administration of the solicitation;(D) preparation or implementation of any evaluation criteria, process, or procedures;(E) evaluation of proposer submissions (e.g., qualification submittals and proposals);(F) negotiation of the contract; and(G) any other activities determined by the department as related to a procurement.(20) Project oversight services--Some or all of the following services provided to the department with respect to a project developed under a design-build contract after award of the contract:(A) design review;(B) construction oversight and inspection;(C) quality control and quality assurance;(D) project management and overview;(E) contract administration;(F) claims management;(G) public relations and community outreach;(H) right of way acquisition services; and(I) appraisal, legal description, condemnation package, and utility assembly review.(21) Proposer--A private entity, including any division or affiliate of the entity, that has submitted a statement of qualifications, proposal, or other submission in order to participate in an ongoing procurement for the design, construction, expansion, extension, related maintenance, rehabilitation, alteration, or repair of a project developed under a design-build contract.(22) Request for proposals--A request for submittal of a detailed proposal from private entities to design, develop, construct, expand, extend, provide maintenance, rehabilitate, alter, or repair a highway project.(23) Request for qualifications--A request for submission by a private entity of a description of that entity's experience, technical competence and ability to develop a highway project, and such other information as the department considers relevant or necessary.(24) Subconsultant--An individual or business entity that performs or performed work on behalf of a consultant as part of the performance of the consultant's work for the department, either directly or through a subconsultant at any level.(25) Traffic and revenue services--Some or all of the following services provided to the department with respect to a project developed under a design-build contract:(A) conducting draft and investment grade traffic and revenue studies, toll elasticity studies, toll feasibility studies, toll pricing studies, or studies or analyses of a similar nature, including peer review studies; and(B) data mining and preparation of reports, analyses, and projections in connection with the traffic and projected revenues.</content><note type="source"><p>Source Note: The provisions of this §9.151 adopted to be effective March 15, 2012, 37 TexReg 1780; amended to be effective September 14, 2016, 41 TexReg 7134.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scI/s9.152"><num value="9.152">§9.152</num><heading>General Rules for Design-Build Contracts</heading><content>(a) Applicability. The rules in this subchapter address the manner by which the department intends to evaluate submissions received from private entities in response to requests for qualifications and requests for proposals issued by the department.(b) Reservation of rights. The department reserves all rights available to it by law in administering this subchapter, including without limitation the right in its sole discretion to:(1) withdraw a request for qualifications or a request for proposals at any time, and issue a new request;(2) reject any and all qualifications submittals or proposals at any time;(3) terminate evaluation of any and all qualifications submittals or proposals at any time;(4) suspend, discontinue, or terminate negotiations with any proposer at any time prior to the actual authorized execution of a design-build contract by all parties;(5) negotiate with a proposer without being bound by any provision in its proposal;(6) negotiate with a proposer to include aspects of unsuccessful proposals for that project in the design-build contract;(7) request or obtain additional information about any proposal from any source;(8) suspend a procurement or modify, issue addenda to, or cancel any request for qualifications or request for proposals;(9) waive deficiencies in a qualifications submittal or proposal, accept and review a non-conforming qualifications submittal or proposal, or permit clarifications or supplements to a qualifications submittal or proposal; or(10) revise, supplement, or make substitutions for all or any part of this subchapter.(c) Costs incurred by proposers. Except as provided in §9.153(f) of this subchapter (relating to Solicitation of Proposals), under no circumstances will the state, the department, or any of their agents, representatives, consultants, directors, officers, or employees be liable for, or otherwise obligated to reimburse, the costs incurred by proposers, whether or not selected for negotiations, in developing proposals or in negotiating agreements.(d) Department information. Any and all information the department makes available to proposers shall be as a convenience to the proposer and without representation or warranty of any kind except as may be expressly specified in the request for qualifications or request for proposals. Proposers may not rely upon any oral responses to inquiries.(e) Procedure for communications. If a proposer has a question or request for clarification regarding this subchapter or any request for qualifications or request for proposals issued by the department, the proposer shall submit the question or request for clarification in writing to the person responsible for receiving those submissions, as designated in the request for qualifications or request for proposals, and the department will provide the responses in writing. The proposer shall also comply with any other provisions in the request for qualifications or request for proposals regulating communications.(f) Compliance with rules. In submitting any proposal, the proposer shall be deemed to have unconditionally and irrevocably consented and agreed to the foregoing provisions and all other provisions of this subchapter.(g) Proposer information submitted to department. All qualifications submittals or proposals submitted to the department become the property of the department and may be subject to the Public Information Act, Government Code, Chapter 552. Proposers should familiarize themselves with the provisions of the Public Information Act. In no event shall the state, the department, or any of their agents, representatives, consultants, directors, officers, or employees be liable to a proposer for the disclosure of all or a portion of a proposal submitted under this subchapter. Except as otherwise expressly specified in the request for qualifications or request for proposals, if the department receives a request for public disclosure of all or any portion of a qualifications submittal or proposal, the department will notify the applicable proposer of the request and inform that proposer that it has an opportunity to assert, in writing, a claimed exception under the Public Information Act or other applicable law within the time period specified in the department's notice and allowed under the Public Information Act. If a proposer has special concerns about information it desires to make available to the department, but which it believes constitutes a trade secret, proprietary information or other information excepted from disclosure, the proposer should specifically and conspicuously designate that information as such in its qualifications submittal or proposal. The proposer's designation shall not be dispositive of the trade secret, proprietary, or exempted nature of the information so designated.(h) Sufficiency of proposal. All proposals, whether solicited or unsolicited, should be as thorough and detailed as possible so that the department may properly evaluate the potential feasibility of the proposed project as well as the capabilities of the proposer and its team members to provide the proposed services and complete the proposed project.(i) Project studies. Studies that the department deems necessary as to route designation, civil engineering, environmental compliance, and any other matters will be assigned, conducted, and paid for as negotiated between the department and the successful proposer and set forth in the design-build contract.(j) Proposer's additional responsibilities. The department, in its sole discretion, may authorize the successful proposer to seek licensing, permitting, approvals, and participation required from other governmental entities and private parties, subject to such oversight and review by the department as specified in the design-build contract.(k) Proposer's work on environmental review of eligible project. The department may solicit proposals in which the proposer is responsible for providing assistance in the environmental review and clearance of an eligible project, including the provision of technical assistance and technical studies to the department or its environmental consultant relating to the environmental review and clearance of the proposed project. The environmental review and the documentation of that review shall at all times be conducted as directed by the department and subject to the oversight of the department, and shall comply with all requirements of state and federal law, applicable federal regulations, and the National Environmental Policy Act (42 U.S.C. §4321 et seq.), if applicable, including but not limited to the study of alternatives to the proposed project and any proposed alignments, procedural requirements, and the completion of any and all environmental documents required to be completed by the department and any federal agency acting as a lead agency. The department:(1) shall determine the scope of work to be performed by the private entity or its consultants or subcontractors;(2) shall specify the level of design and other information to be provided by the private entity or its consultants or subcontractors; and(3) shall independently review any studies and conclusions reached by the private entity or its consultants or subcontractors before their inclusion in an environmental document.(l) Effect of environmental requirements on design-build contract. Completion of the environmental review, including obtaining approvals required under the National Environmental Policy Act, is required before the private entity may be authorized to conduct and complete the final design and start construction of a project. Additionally, all applicable state and federal environmental permits and approvals must be obtained before the private entity may start construction of the portion of a project requiring the permit or approval. Unless and until that occurs, the department is not bound to any further development of the project. The department, and any federal agency acting as a lead agency, may select an alternative other than the one in the proposed project, including the "no-build" alternative. A design-build contract shall provide that the agreement will be modified as necessary to address requirements in the final environmental documents and shall provide that the agreement may be terminated if the "no-build" alternative is selected or if another alternative is selected that is incompatible with the requirements of the agreement.(m) Public meetings and hearings. All public meetings or hearings required to be held under applicable law or regulation will be directed and overseen by the department, with participation by such other parties as it deems appropriate.(n) Additional matters. Any matter not specifically addressed in this subchapter that pertains to the construction, expansion, extension, related maintenance, rehabilitation, alteration, or repair of a highway project pursuant to this subchapter, shall be deemed to be within the primary purview of the commission, and all decisions pertaining thereto, whether or not addressed in this subchapter, shall be as determined by the commission, subject to the provisions of applicable law.(o) Performance and payment security. The department shall require a private entity entering into a design-build contract to provide a performance and payment bond or an alternative form of security, or a combination of bonds and other forms of security, in an amount equal to the cost of constructing the project, unless the department determines that it is impracticable for a private entity to provide security in that amount, in which case the department will set the amount of security. The security will be in the amount that, in the department's sole determination, is sufficient to ensure the proper performance of the agreement, and to protect the department and payment bond beneficiaries supplying labor or materials to the private entity or a subcontractor of the private entity. Bonds and alternate forms of security shall be in the form and contain the provisions required in the request for proposals or the design-build contract, with such changes or modifications as the department determines to be in the best interest of the state. In addition to, or in lieu of, performance and payment bonds, the department may require:(1) a cashier's check drawn on a federally insured financial institution, and drawn to the order of the department;(2) United States bonds or notes, accompanied by a duly executed power of attorney and agreement authorizing the collection or sale of the bonds or notes in the event of the default of the private entity or a subcontractor of the private entity, or such other act or event that, under the terms of the design-build contract, would allow the department to draw upon or access that security;(3) an irrevocable letter of credit issued or confirmed by a financial institution to the benefit of the department, meeting the credit rating and other requirements prescribed by the department, and providing coverage for a period of at least one year following final acceptance of the project or, if there is a warranty period, at least one year following completion of the warranty period;(4) an irrevocable letter signed by a guarantor meeting the net worth or other financial requirements prescribed in the request for proposals or design-build contract, and which guarantees, to the extent required under the request for proposals or design-build contract, the full and prompt payment and performance when due of the private entity's obligations under the design-build contract; or(5) any other form of security deemed suitable by the department.(p) Performance evaluations. The department will evaluate the performance of a private entity that enters into a design-build contract and will evaluate the performance of the private entity's major team members, consultants, and subcontractors, in accordance with the requirements of this subsection. Evaluations will be conducted annually at twelve month intervals during the term of the design-build contract, upon termination of the design-build contract, and when the department determines that work is materially behind schedule or not being performed according to the requirements of the design-build contract. Optional evaluations may be conducted as provided in the design-build contract. Acts or omissions that are the subject of a good faith dispute will not be considered. After a performance evaluation is conducted, and for at least 30 days before the evaluation becomes final and is used by the department, the department will provide for review and comment a copy of the performance evaluation report to the entity being evaluated and, if that entity is a consultant or subcontractor, to the entity that entered into the design-build contract. The department will consider and take into account any submitted comments before the department finalizes the performance evaluation report. The results of performance evaluations will be provided to the entity that was evaluated and may be used in the evaluation of qualifications submittals and proposals submitted under §9.153 of this subchapter and §27.4 of this title (relating to Solicited Proposals) by proposers that include the major team members, consultants, and subcontractors evaluated.</content><note type="source"><p>Source Note: The provisions of this §9.152 adopted to be effective March 15, 2012, 37 TexReg 1780; amended to be effective July 19, 2012, 37 TexReg 5334; amended to be effective September 14, 2016, 41 TexReg 7134; amended to be effective January 6, 2025, 50 TexReg 189.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scI/s9.153"><num value="9.153">§9.153</num><heading>Solicitation of Proposals</heading><content>(a) Request for qualifications-notice. If authorized by the commission to issue a request for qualifications for a highway project, the department will set forth the basic criteria for qualifications, experience, technical competence and ability to develop the project, and such other information as the department considers relevant or necessary in the request for qualifications. The department will publish notice advertising the issuance of the request for qualifications in the Texas Register and will post the notice and the request for qualifications on the department's Internet website. The department may also elect to furnish the request for qualifications to businesses in the private sector that the department otherwise believes might be interested and qualified to participate in the project that is the subject of the request for qualifications.(b) Request for qualifications-content. At its sole option, the department may elect to furnish conceptual designs, fundamental details, technical studies and reports or detailed plans of the proposed project in the request for qualifications and may request conceptual approaches to bringing the project to fruition. A request for qualifications must include:(1) information regarding the proposed project's location, scope, and limits;(2) information regarding funding that may be available for the project;(3) criteria that will be used to evaluate the qualifications submittals;(4) the relative weight to be given to the criteria;(5) the deadline by which qualifications submittals must be received by the department; and(6) any other information the department considers relevant or necessary.(c) Request for qualifications-evaluation. The department, after evaluating the qualification submittals received in response to a request for qualifications, will identify and approve a "short-list" that is composed of those entities that are considered most qualified to submit detailed proposals for a proposed project. In evaluating the qualification submittals, the department will consider the results of performance evaluations conducted by the department under §9.152 of this subchapter (relating to General Rules for Design-Build Contracts) and §27.3 of this title (relating to General Rules for Private Involvement) determined by the department to be relevant to the project, the results of other performance evaluations determined by the department to be relevant to the project, and other objective evaluation criteria that the department considers relevant to the project, including a proposer's qualifications, experience, technical competence, and ability to develop the project, and that may include the private entity's financial condition, management stability, staffing, and organizational structure. The department may interview entities responding to a request for qualifications. The department shall short-list at least two private entities to submit proposals but may not short-list more private entities than the number of private entities designated in the request for qualifications if a maximum number is designated. The department shall advise each entity providing a qualifications submittal whether it is on the short-list of qualified entities.(d) Requests for proposals. If authorized by the commission, the department will issue a request for proposals from all private entities qualified for the short-list, consisting of the submission of detailed documentation regarding the project. A request for proposals must include:(1) information on the overall project goals;(2) publicly available cost estimates for the design-build portion of the project;(3) materials specifications;(4) special material requirements;(5) a design approximately 30 percent complete;(6) known utilities;(7) quality assurance and quality control requirements;(8) the location of relevant structures;(9) notice of any rules or goals adopted by the department relating to awarding contracts to disadvantaged business enterprises or small business enterprises;(10) available geotechnical or other information related to the project;(11) the status of any environmental review of the project;(12) detailed instructions for preparing the technical proposal, including a description of the form and level of completeness of drawings expected;(13) the relative weighting of the technical and cost proposals and the formula by which the proposals will be evaluated and ranked, which must allocate at least 70 percent of weighting to the cost proposal;(14) the criteria to be used in evaluating the technical proposals, and the relative weighting of those criteria;(15) the proposed form of design-build contract; and(16) any other information the department considers relevant or necessary.(e) Request for proposals-submittal requirements. The request for proposals must require the submission of a sealed technical proposal and a separate sealed cost proposal no later than the 180th day after the issuance of the request for proposals, and that provide information relating to:(1) the feasibility of developing the project as proposed; (2) the proposed solutions to anticipated problems;(3) the ability of the proposer to meet schedules;(4) the engineering design proposed;(5) the cost of delivering the project;(6) if maintenance of the project is required, pricing for the maintenance work for each maintenance term;(7) the estimated number of days required to complete the project; and(8) any other information requested by the department.(f) Requests for proposals-payment for work product. The request for proposals shall stipulate an amount of money, as authorized under Transportation Code, §223.249, that the department will pay to an unsuccessful proposer that submits a proposal that is responsive to the requirements of the request for proposals. The commission shall approve the amount of the payment to be stipulated in the request for proposals, which must be a minimum of twenty-five hundredths of one percent of the contract amount. The request for proposals shall provide for the payment of a partial amount in the event the procurement is terminated. A partial amount will be paid to an unsuccessful proposer that submits a proposal that is responsive to the requirements of the request for proposals. If the procurement is terminated prior to the receipt of proposals, the department may request that a proposer submit to the department work product that was developed by the proposer for the project for the purpose of paying a partial amount. If the department determines, in its discretion, that the requested work product was developed in accordance with the requirements of the request for proposals and can be used by the department in the performance of its functions, the department will pay the proposer a partial amount not exceeding the value of the work product to the department, as determined by the department. In determining the amount of a payment, the commission shall consider:(1) the effect of a payment on the department's ability to attract meaningful proposals and to generate competition;(2) the work product expected to be included in the proposal and the anticipated value of that work product; and(3) the costs anticipated to be incurred by a private entity in preparing a proposal.(g) Request for proposals-evaluation. The proposals will be evaluated by the department based on the results of performance evaluations conducted by the department under §9.152 of this subchapter and §27.3 of this title determined by the department to be relevant to the project, the results of other performance evaluations determined by the department to be relevant to the project, and other objective evaluation criteria the department deems appropriate for the project, including those criteria deemed appropriate by the department to maximize the overall performance of the project and the resulting benefits to the state. Specific evaluation criteria and requests for pertinent information will be set forth in the request for proposals. The department shall first open, evaluate, and score each responsive technical proposal, and shall subsequently open, evaluate, and score the cost proposals from proposers that submitted a responsive technical proposal and assign points on the basis of the weighting specified in the request for proposals.(h) Apparent best value proposal. Based on the evaluation using the evaluation criteria described under subsection (g) of this section and set forth in the request for proposals, the department will rank all proposals that are complete, responsive to the request for proposals, and in conformance with the requirements of this subchapter, in accordance with the formula provided in the request for proposals. The department may select the private entity whose proposal offers the apparent best value to the department.(i) Selection of entity. The department shall submit a recommendation to the commission regarding approval of the proposal determined to provide the apparent best value to the department. The commission may approve or disapprove the recommendation, and if approved, will award the design-build contract to the apparent best value proposer. Award may be subject to the successful completion of negotiations, any necessary federal action, execution by the executive director of the design-build contract, and satisfaction of such other conditions that are identified in the request for proposals or by the commission. The proposers will be notified in writing of the department's rankings. The department shall also make the rankings available to the public.(j) Negotiations with selected entity. If authorized by the commission, the department will attempt to negotiate a design-build contract with the apparent best value proposer. If a design-build contract satisfactory to the department cannot be negotiated with that proposer, or if, in the course of negotiations, it appears that the proposal will not provide the department with the overall best value, the department will formally and in writing end negotiations with that proposer and, in its sole discretion, either:(1) reject all proposals;(2) modify the request for proposals and begin again the submission of proposals; or(3) proceed to the next most highly ranked proposal and attempt to negotiate a design-build contract with that entity in accordance with this paragraph.</content><note type="source"><p>Source Note: The provisions of this §9.153 adopted to be effective March 15, 2012, 37 TexReg 1780; amended to be effective July 19, 2012, 37 TexReg 5334; amended to be effective September 14, 2016, 41 TexReg 7134; amended to be effective January 6, 2025, 50 TexReg 189.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scI/s9.154"><num value="9.154">§9.154</num><heading>Protest Procedures</heading><content>(a) Applicability. This section prescribes exclusive procedures for protests regarding:(1) allegations that the terms of a request for qualifications or request for proposals are wholly ambiguous, contrary to legal requirements applicable to the procurement, or exceed the department's authority;(2) a determination as to whether a qualifications submittal or proposal is responsive to the requirements of the request for qualifications or request for proposals, as applicable;(3) short-listing determinations; and(4) award of a design-build contract.(b) Required early communication for certain protests. Protests concerning the issues described in subsection (a)(1) of this section may be filed only after the proposer has informally discussed the nature and basis of the protest with the department, following the procedures for those discussions prescribed in the request for qualifications or request for proposals, as applicable.(c) Deadlines for protests.(1) Protests concerning the issues described in subsection (a)(1) of this section must be filed as soon as the basis for the protest is known, but no later than 20 calendar days prior to the date for submission of the qualifications submittal or proposal, unless the protest relates to an addendum to the request, in which case the protest must be filed no later than 5 business days after the addendum is issued.(2) Protests concerning the issues described in subsection (a)(2) of this section must be filed no later than 5 business days after receipt of the notification of non-responsiveness.(3) Protests concerning the issues described in subsection (a)(3) and (4) of this section must be filed no later than 10 business days after the earliest of the notification of short-listing or intent to award, and the public announcement of the short-listing determination or the apparent best value proposer.(d) Content of protest. Protests shall completely and succinctly state the grounds for protest, its legal authority, and its factual basis, and shall include all factual and legal documentation in sufficient detail to establish the merits of the protest. Statements shall be sworn and submitted under penalty of perjury.(e) Filing of protest. Protests shall be filed in the manner and at the address specified in the request for qualifications or request for proposals, and a copy of the protest shall be submitted to all other proposers for the project.(f) Comments from other proposers. Other proposers may file statements in support of or in opposition to the protest within 7 days of the filing of the protest. The department shall promptly forward copies of all those statements to the protestant. Any statements shall be sworn and submitted under penalty of perjury.(g) Burden of proof. The protestant shall have the burden of proving its protest. No hearing will be held on the protest. The protest shall be decided on the basis of written submissions.(h) Decision on protest. The department employee specified in the request for qualifications or request for proposals, as applicable, shall issue a decision on the protest within 30 days of the filing of the protest. The designated employee shall not be a member of a committee or subcommittee involved in the evaluation of qualifications submittals or proposals for the project.(i) Protestant's payment of costs. If a protest is denied, the proposer filing the protest shall be liable for the department's costs reasonably incurred to defend against or resolve the protest, including legal and consultant fees and costs, and any unavoidable damages sustained by the department as a consequence of the protest.(j) Rights and obligations of proposers. Each proposer, by submitting its proposal, expressly recognizes the limitation on its rights to protest provided in this section, and expressly waives all other rights and remedies and agrees that the decision on the protest is final and conclusive. If a proposer disregards, disputes, or does not follow the exclusive protest remedies provided in this section, it shall indemnify and hold the department and its officers, employees, agents, and consultants harmless from and against all liabilities, fees and costs, including legal and consultant fees and costs, and damages incurred or suffered as a result of that proposer's actions. Each proposer, by submitting a proposal, shall be deemed to have irrevocably and unconditionally agreed to this indemnity obligation.</content><note type="source"><p>Source Note: The provisions of this §9.154 adopted to be effective March 15, 2012, 37 TexReg 1780.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scI/s9.155"><num value="9.155">§9.155</num><heading>Conflict of Interest and Ethics Policies</heading><content>(a) Purpose. This section prescribes ethical standards of conduct applicable to private entities, including consultants and subconsultants, participating in the department's design-build program. A private entity's failure to comply with these standards of conduct may result in the private entity's preclusion from participation in a project or sanctions being imposed under Chapter 10 of this title (relating to Ethical Conduct by Entities Doing Business with the Department).(b) Gifts and benefits. A proposer, design-build contractor, consultant, or subconsultant participating in the design-build program, or an affiliate of any of those entities, may not offer, give, or agree to give a gift or benefit to a member of the commission or to a department employee whose work for the department includes the performance of procurement services relating to a project under this subchapter, or who participates in the administration of a design-build contract. Notwithstanding this prohibition, a consultant or subconsultant, unless a member of a proposer or design-build contractor team, if authorized under subsection (c) of this section may offer, give, or agree to give a token item that does not exceed an estimated value of $25 (excluding cash, checks, stocks, bonds, or similar items), where the item is distributed generally as a normal means of advertising.(c) Conflicts of interest.(1) Purpose. This subsection prescribes department policy on conflicts of interest relating to consultants and subconsultants participating in the design-build program, and thereby:(A) protects the integrity and fairness of the program and all procurements carried out by the department as part of the program;(B) avoids circumstances where a consultant, proposer, or design-build contractor obtains, or appears to obtain, an unfair competitive advantage as a result of work performed by a consultant or subconsultant;(C) provides guidance to private entities so they may assess and make informed business decisions concerning their participation in the program; and(D) protects the department's interests and confidential and sensitive project-specific and programmatic information.(2) Applicability. This subsection applies to all projects undertaken by the department under this subchapter. This subsection applies to consultants and subconsultants, and to individual employees of consultants and subconsultants who participated in the performance of services for the department. A reference in this subsection to a consultant or subconsultant also means individual employees of a consultant or subconsultant who participated in the performance of services for the department. To the extent that the department has previously consented in writing to a consultant's or subconsultant's performance of services that are in conflict with this subsection, participation on a proposer team as an equity owner or team member, acting as a consultant or subconsultant to a proposer, or having a financial interest in a proposer or an equity owner or team member of a proposer, this subsection does not modify or alter the prior consent. The foregoing does not prevent, however, the application of this subsection to the consultant or subconsultant for other projects, including taking into account the performance of services on the project for which consent was obtained. This subsection may by extension prohibit or restrict the ability of a proposer to have a consultant or subconsultant participate on the proposer team as an equity owner or team member, act as a consultant or subconsultant to the proposer, or have a financial interest in the proposer or an equity owner or team member of the proposer.(3) Period in which a conflict of interest applies. If a determination is made under this subsection that the performance of services by a consultant or subconsultant raises a conflict of interest, the resulting prohibition or restriction provided in this subsection continues, both for the private entity and any individual that is an employee of or was employed by the private entity and participated in the performance of services for the department, until the date the performance of services ends and all work product prepared by the entity and other information and data provided to the entity in the performance of services is publicly available, provided that, for a private entity or individual performing procurement services, the resulting prohibition or restriction shall end no earlier than the execution of the design-build contract or cancellation of the procurement for the project for which the private entity or individual is performing services.(4) Application to new firm. If a conflict of interest is determined to apply to an individual under paragraph (3) of this subsection and the individual changes employers, the conflict of interest and prohibition with respect to the individual will not apply to the individual's new employer. If the new employer is otherwise eligible to perform consultant services, the new employer will remain eligible despite the employment of the individual. This paragraph does not apply to an individual employed by an affiliate of its previous employer, and the conflict of interest and prohibition with respect to the individual will apply to that affiliate.(5) Federal requirements. For federal-aid projects, the department must comply with the Federal Highway Administration's organizational conflict of interest regulations (found in 23 C.F.R. §636.116). The requirements of this subsection do not limit, modify, or otherwise alter the effect of those regulations, and will be applied consistent with those regulations.(6) General conflict of interest standards. Except as provided in paragraph (7) of this subsection, a consultant that is providing consultant services to the department with respect to a design-build project may not be a proposer or participate as an equity owner, team member, consultant, or subconsultant of or to a proposer for that project, or have a financial interest in any of the foregoing entities with respect to that project. Subject to the requirements of paragraph (8) of this subsection, a consultant that is performing consultant services for a design-build project will not be prohibited from participating on a different design-build project as a proposer or participating as an equity owner, team member, consultant, or subconsultant of or to a proposer for the different project, or having a financial interest in any of the foregoing entities with respect to the different project.(7) Providing services for the same project. A consultant that is actively providing preliminary engineering and architectural services to the department with respect to a design-build project, or that performed and completed environmental or traffic and revenue services for a design-build project, may be a proposer or participate as an equity owner, team member, consultant, or subconsultant of or to a proposer for the same project, or have a financial interest in any of the foregoing entities with respect to that project, provided:(A) with respect to a consultant providing preliminary engineering and architectural services, all work product prepared by the consultant and other information and data provided to the consultant in the performance of services is made available to all proposers prior to the issuance of the final request for proposals for that project; or(B) the executive director issues a written determination under paragraph (9) of this subsection that:(i) the consultant will not, or in the case of the previous performance of consultant services did not, have access to or obtain knowledge of confidential or sensitive information, procedures, policies, and processes that could provide an unfair competitive advantage with respect to the procurement for that project;(ii) the data and information provided to the consultant in the performance of the consultant services is either irrelevant to the procurement for that project or is available on an equal and timely basis to all proposers;(iii) the work products from the consultant incorporated into or relevant to the procurement for that project are generally available on an equal and timely basis to all proposers; and(iv) with respect to environmental services, a record of decision or finding of no significant impact has been issued for the project.(8) Procurement and financial services. A consultant actively engaged and performing procurement services or financial services with respect to a design-build project may be a proposer or participate as an equity owner, team member, consultant, or subconsultant of or to a proposer for another design-build project, or may have a financial interest in any of the foregoing entities with respect to another design-build project, provided that, beginning at the time that the consultant becomes a proposer or participates as part of or acquires a financial interest in a proposer with respect to the other design-build project, as described by this paragraph, the consultant is prohibited from reviewing alternative technical concepts and proposals for the project for which the consultant is providing services to the department until a contract for the project is entered into, and the consultant must institute ethical walls or other safeguards required by the department.(9) Requests for determinations or exceptions. A consultant, proposer, or design-build contractor may submit a request to the executive director for a determination whether participation in a design-build project or the performance of particular services with respect to a design-build project would constitute a conflict of interest, or for approval of an exception to the applicability of this subsection to those services. A request for approval of an exception may be made if a consultant, proposer, or design-build contractor desires to appeal a previous determination that a conflict of interest exists. The executive director will forward a request to the department's Office of General Counsel for analysis and recommendation prior to issuing a decision. In determining whether a conflict of interest exists, or whether to approve an exception, the executive director shall consider:(A) the extent to which the firm or individual employee obtained access to or the ability to gain knowledge of confidential or sensitive information, procedures, policies, and processes concerning the design-build program or a particular project or procurement that could provide an unfair competitive advantage with respect to the procurement or project at issue;(B) the type of consulting services at issue;(C) the particular circumstances of each procurement;(D) the specialized expertise needed by the department and proposers to implement the procurement;(E) the past, current, or future working relationship between the consultant and the department;(F) the period of time between the potential conflict situation and the project at issue; and(G) the potential impact on the procurement and project at issue, including competition.(10) Multiple services. If a consultant is providing more than one category of consultant services to the department and there are differences in the standards, restrictions, and limitations applicable to those categories, the standards, restrictions, and limitations applicable to a category that are more stringent apply.(11) Participation on proposer or design-build contractor team. A consultant participating with respect to a design-build project as a proposer or design-build contractor, or as an equity owner, team member, consultant, or subconsultant of or to a proposer or design-build contractor, or having a financial interest in any of the foregoing entities, is eligible to provide consultant services to the department for another design-build project, provided that, when the consultant is retained to perform consultant services for the department, the restrictions in this subsection shall apply.(12) Restriction of services and conditions to approvals and exceptions. In instances where a written determination under paragraph (9) of this subsection that a conflict of interest does not exist, including, in particular, where the conditions prescribed in paragraph (7) of this subsection have been met, or that grants an exception to the application of this subsection, the department may still, in its discretion:(A) restrict the scope of services the consultant or subconsultant may be eligible to perform for the department in order to further the intent and goals of this subsection; and(B) condition an approval, determination, or exception as the executive director determines appropriate to further the intent and goals of this subsection, including by requiring the consultant, subconsultant, proposer, or design-build contractor to execute confidentiality agreements, institute ethical walls, or segregate certain personnel from participation in a project or the performance of consultant services.(13) Provisions are nonexclusive. The provisions in this subsection do not address every situation that may arise in the context of the department's design-build program nor require a particular decision or determination when faced with facts similar to those described in this subsection. The department retains the ultimate and sole discretion to determine on a case-by-case basis whether a conflict of interest exists and what actions may be appropriate to avoid, neutralize, or mitigate any actual or potential conflict, or the appearance of any conflict. Except as provided in paragraph (14) of this subsection, the provisions of this subsection shall not be construed to preclude or condone any conduct with regard to projects other than projects under a design-build contract. The department will continue to evaluate other projects based on applicable rules and its traditional conflict of interest standards.(14) Comprehensive development agreement projects. A consultant providing procurement or financial services with respect to a comprehensive development agreement project described in Chapter 27, Subchapter A of this title (relating to Comprehensive Development Agreements) may be a proposer or participate as an equity owner, team member, consultant, or subconsultant of or to a proposer for a design-build project, or may have a financial interest in any of the foregoing entities with respect to a design-build project, under the conditions described in paragraph (8) of this subsection.(d) Rules of contact. In order to provide a fair and unbiased procurement process, a request for qualifications will contain rules of contact regulating communications between proposers or any of its team members and the commission, the department, and third parties involved in the procurement. Communication includes face-to-face, telephone, facsimile, electronic-mail (e-mail), or formal written communication. The rules of contact become effective upon the issuance of the request for qualifications and may be modified in the request for proposals. The rules of contact will include provisions:(1) prohibiting a proposer or any of its team members from communicating with another proposer or its team members with regard to the project, request for qualifications, or request for proposals, or either team's qualifications submittal or proposal;(2) requiring each proposer to designate one or more representatives responsible for contact with the department, and requiring the proposer to correspond with the department regarding the project, request for qualifications, or request for proposals only through the department's authorized representatives and the proposer's designated representatives;(3) prohibiting any ex parte communication regarding the project, request for qualifications, or request for proposals or the procurement with any member of the commission or with any department staff, advisors, contractors, or consultants involved in the procurement until the earliest of the execution and delivery of the design-build contract, the rejection of all qualifications submittals or proposals by the department, or the cancellation of the procurement;(4) permitting communications in exceptional circumstances and designating department personnel authorized to approve those communications, and providing that the restrictions on communications shall not preclude or restrict communications with regard to matters unrelated to the project, request for qualifications or request for proposals, or participation in public meetings of the commission or any public or proposer workshop related to the project, request for qualifications, or request for proposals;(5) designating a department employee not involved in the procurement to act as an ombudsman who is authorized to receive confidential communications, including questions, comments, or complaints regarding the procurement and who, after removing, to the extent practicable, any information identifying the proposer, forwards the communications to the employees designated as the department's authorized representatives; and(6) authorizing the executive director to disqualify a proposer from the procurement and participation in the project at issue or to impose another sanction under Chapter 10 of this title if it is determined that a proposer has engaged in any improper communications in violation of the rules of contact.(e) Exceptions to rules of contact. Notwithstanding subsection (d)(1) of this section:(1) minor or specialty subcontractors that are shared between two or more proposer teams may communicate with members of each of those teams so long as those proposers establish a protocol to ensure that the subcontractor will not act as a conduit of information between the teams; and(2) the prohibition provided by that subsection does not apply to public discussions regarding the project, request for qualifications, or request for proposals at any department sponsored informational meetings.</content><note type="source"><p>Source Note: The provisions of this §9.155 adopted to be effective March 15, 2012, 37 TexReg 1780; amended to be effective September 14, 2016, 41 TexReg 7134.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c9/scJ"><num value="J">SUBCHAPTER J</num><heading>DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM</heading><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.200"><num value="9.200">§9.200</num><heading>Purpose of Subchapter; Applicability of Program</heading><content>(a) This subchapter establishes policies and procedures related to the department's Disadvantaged Business Enterprise (DBE) program in compliance with Transportation Code, §201.702, and Title 49, Code of Federal Regulations, Part 26, and consistent, to the extent possible, with Government Code, Chapter 2161.(b) The department's DBE program is applicable to all department contracts and purchases funded in whole or in part with federal funds received from the U.S. Department of Transportation through the Federal Highway Administration, Federal Transit Administration, or the Federal Aviation Administration.</content><note type="source"><p>Source Note: The provisions of this §9.200 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.201"><num value="9.201">§9.201</num><heading>Policy</heading><content>(a) It is the policy of the department to:(1) ensure nondiscrimination in the award and administration of contracts in the department's highway, transit, and airport financial assistance programs;(2) create a level playing field on which DBEs can compete fairly for contracts;(3) ensure that the department's DBE program is narrowly tailored in accordance with applicable law;(4) ensure that only firms that fully meet the program's eligibility standards are permitted to participate as DBEs;(5) help remove barriers to the participation of DBEs in contracts;(6) assist the development of firms that can compete successfully in the marketplace outside the DBE program; and(7) provide appropriate flexibility to entities that receive federal financial assistance through the department in establishing and providing opportunities for DBEs.(b) The department will circulate the policy statement provided by this section throughout the department's organization. The department will provide the statement to contractors, including DBE contractors, trade associations, community organizations, minority chambers of commerce, and appropriate special interest groups within the state.</content><note type="source"><p>Source Note: The provisions of this §9.201 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.202"><num value="9.202">§9.202</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless specified otherwise.(1) Contract--A legally binding relationship obligating a seller to furnish supplies or services, including construction and professional services, and the buyer to pay for them. The term includes a lease.(2) Contractor--One who participates, through a contract or any tier of subcontract, in a highway, transit, or airport program.(3) Department--The Texas Department of Transportation.(4) Disadvantaged Business Enterprise (DBE)--A for-profit small business:(A) that is at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged or, in the case of a corporation, in which 51 percent of the stock is owned by one or more such individuals; and(B) whose management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it.(5) District engineer--The chief administrative officer in charge of a district of the department.(6) Division--An organizational unit of the department located in the department's Austin headquarters.(7) DOT--The U.S. Department of Transportation, including the Office of the Secretary of Transportation, the Federal Highway Administration (FHWA), the Federal Transit Administration (FTA), and the Federal Aviation Administration (FAA).(8) Executive director--The executive director of the department.(9) Good faith efforts--Efforts that by their scope, intensity, and appropriateness to the objective can reasonably be expected to fulfill the DBE program requirement.(10) Native Hawaiian--Any individual whose ancestors were natives, prior to 1778, of the area that now comprises the State of Hawaii.(11) Operating Administration (OA)--Any of the following components of DOT: the Federal Aviation Administration (FAA), Federal Highway Administration (FHWA), and Federal Transit Administration (FTA).(12) Race-conscious means--A method that is focused specifically on assisting only businesses that are DBEs, including women-owned DBEs.(13) Race-neutral means--A method that is, or can be, used to assist all small businesses rather than only DBEs. The term includes gender-neutral means.(14) Recipient--A public or private entity that:(A) receives DOT financial assistance directly or through another recipient, through the programs of the FAA, FHWA, or FTA; or(B) has applied for the assistance described by subparagraph (A) of this paragraph.(15) Socially and economically disadvantaged individual--An individual who is a citizen or lawfully admitted permanent resident of the U.S. and:(A) whom a recipient finds to be a socially and economically disadvantaged individual on a case-by-case basis; or(B) who is a member of one of the following groups, whose members are rebuttably presumed to be socially and economically disadvantaged:(i) "Black Americans," which includes persons having origins in any of the Black racial groups of Africa;(ii) "Hispanic Americans," which includes persons of Mexican, Puerto Rican, Cuban, Dominican, Central or South American, or other Spanish or Portuguese culture or origin, regardless of race;(iii) "Native Americans," which includes persons who are American Indians, Eskimos, Aleuts, or Native Hawaiians;(iv) "Asian-Pacific Americans," which includes persons whose origins are from Japan, China, Taiwan, Korea, Burma (Myanmar), Vietnam, Laos, Cambodia (Kampuchea), Thailand, Malaysia, Indonesia, the Philippines, Brunei, Samoa, Guam, the U.S. Trust Territories of the Pacific Islands (Republic of Palau), the Commonwealth of the Northern Mariana Islands, Macao, Fiji, Tonga, Kirbati, Juvalu, Nauru, Federated States of Micronesia, or Hong Kong;(v) "Subcontinent Asian Americans," which includes persons whose origins are from India, Pakistan, Bangladesh, Bhutan, the Maldives Islands, Nepal, or Sri Lanka;(vi) women; and(vii) any additional groups whose members are designated as socially and economically disadvantaged by the Small Business Administration (SBA), at such time as the SBA designation becomes effective.</content><note type="source"><p>Source Note: The provisions of this §9.202 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.203"><num value="9.203">§9.203</num><heading>Program Administration</heading><content>(a) The department's DBE program is administered by the DBE liaison officer who is appointed by and has direct access to the executive director.(b) The DBE liaison officer is responsible for developing, implementing, and monitoring the DBE program and ensuring that the department complies with applicable federal law. The DBE liaison officer:(1) works with divisions of the department to set overall annual goals;(2) directs the department's division directors and district engineers in determining contractor compliance with DBE requirements;(3) plans and may participate in DBE training seminars;(4) approves or denies contractual remedies associated with non-compliance with the DBE program; and(5) acts as the department's liaison with the Texas Unified Certification Program (TUCP).(c) The DBE liaison officer may delegate the day-to-day duties associated with the administration of the DBE program. These duties include:(1) gathering and reporting statistical data and other information to DOT;(2) distributing bid notices, including instructions to requests for proposal, to DBEs in a timely manner;(3) identifying the contracts and procurements in the solicitations for which DBE goals are to be included;(4) analyzing the department's progress toward DBE goal attainment and identifying ways to improve that progress;(5) participating with the department's division directors and district engineers in determining contractor compliance with DBE requirements; and(6) assisting with outreach activities to DBEs and community organizations to advise them of opportunities.</content><note type="source"><p>Source Note: The provisions of this §9.203 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.204"><num value="9.204">§9.204</num><heading>Discriminatory Actions Prohibited</heading><content>(a) An individual or entity may not exclude any person from participating in, deny any person the benefits of, or otherwise discriminate against anyone in connection with the award and performance of a contract covered by this subchapter on the basis of race, color, religion, sex, age, disability, or national origin.(b) An individual or entity may not use criteria or methods of administration, directly or through contractual or other arrangements, that have the effect of defeating or substantially impairing accomplishment of the objectives of the DBE program with respect to individuals of a particular race, color, religion, sex, age, disability, or national origin.</content><note type="source"><p>Source Note: The provisions of this §9.204 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.205"><num value="9.205">§9.205</num><heading>Department Information</heading><content>In addition to any other DBE information, the department will maintain:(1) data associated with the DBE program as directed by OAs;(2) a bidders list that provides accurate data about the DBE and non-DBE contractors and subcontractors who seek to work on federally-assisted department contracts that can be used in establishing overall DBE goals;(3) for each DBE and non-DBE contractor or subcontractor who seeks to work on federally-assisted department contracts:(A) the firm's name;(B) the firm's address;(C) the firm's e-mail address, if any;(D) the firm's telephone number;(E) the firm's DBE certification status;(F) type of work the firm has been certified to perform; and(G) the firm's length of existence; and(4) for each DBE contractor or subcontractor who seeks to work on federally-assisted department contracts, the firm's annual gross receipts.</content><note type="source"><p>Source Note: The provisions of this §9.205 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.206"><num value="9.206">§9.206</num><heading>Contract Assurances Provisions</heading><content>(a) Each agreement with the department or other recipient that involves DOT funding must include: "The recipient shall not discriminate on the basis of race, color, national origin, or sex in the award and performance of any DOT-assisted contract or in the administration of its DBE program or the requirements of 49 Code of Federal Regulations (C.F.R.) Part 26. The recipient shall take all necessary and reasonable steps under 49 C.F.R. Part 26 to ensure nondiscrimination in the award and administration of DOT-assisted contracts. The recipient's DBE program, as required by 49 C.F.R. Part 26 and as approved by DOT, is incorporated by reference into this agreement. Implementation of this program is a legal obligation and failure to carry out its terms shall be treated as a violation of this agreement. Upon notification to the recipient of its failure to carry out its approved program, the DOT may impose sanctions as provided for under 49 C.F.R. Part 26 and may, in appropriate cases, refer the matter for enforcement under 18 U.S. Code (U.S.C.) Chapter 1001 or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. §3801 et seq.)."(b) Any contract or subcontract that involves DOT funding must contain: "The contractor or subcontractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. The contractor shall carry out applicable requirements of 49 C.F.R. Part 26 in the award and administration of DOT-assisted contracts. Failure by the contractor to carry out these requirements is a material breach of this contract, that may result in the termination of this contract or such other remedy as the recipient deems appropriate."</content><note type="source"><p>Source Note: The provisions of this §9.206 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.207"><num value="9.207">§9.207</num><heading>Use of Financial Institutions</heading><content>(a) The department will, to the extent feasible, use services offered by financial institutions that are owned and controlled by socially and economically disadvantaged individuals.(b) The department encourages contractors to use services offered by financial institutions that are owned and controlled by socially and economically disadvantaged individuals.</content><note type="source"><p>Source Note: The provisions of this §9.207 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.208"><num value="9.208">§9.208</num><heading>Payment; Prompt Payment; Joint Checks</heading><content>(a) For the purposes of this section:(1) "subcontractor" includes a supplier;(2) "work" includes materials that are provided by a supplier at a location approved by the department;(3) "satisfactory completion" occurs when:(A) the subcontractor has fulfilled the contract requirements of both the department and the subcontract for the subcontracted work, including the submittal of all information required by the specifications or by the department and including any vegetative establishment, testing, maintenance, and performance of other work that is the responsibility of the subcontractor; and(B) the work done by the subcontractor has been inspected, approved, and paid for by the department; and(4) "contractor" refers to a subcontractor that contracts work to another tier of subcontractors.(b) The department will not withhold retainage on a contract executed and administered by the department. A contractor that withholds retainage on a subcontractor's work shall pay that retainage in full within 10 days after the date of satisfactory completion of all of the subcontractor's work.(c) Each DOT-assisted contract, subcontract, or material purchase agreement must include provisions that substantively provide that:(1) within 10 days after the date that the contractor receives payment for work performed by a subcontractor, the contractor will pay the subcontractor for the work performed; and(2) the contractor will pay to a subcontractor any retainage on the subcontractor's work within 10 days after the date of satisfactory completion of all of the subcontractor's work.(d) The inspection and approval of work done by the subcontractor for determining substantial completion does not eliminate the contractor's responsibilities for all of the work, as defined in the contract.(e) The department may pursue actions against a contractor, including withholding of estimates and suspending the work, for noncompliance with the subcontract requirements of this section on receipt of written notice with sufficient details showing the subcontractor has complied with the subcontractor's obligations, as described in the contract.(f) Based on the department's assessment of the construction industry usage of joint check agreements between contractors and subcontractors working on federal-aid construction projects, the department has implemented procedures for the use of joint checks on the DBE contracts executed and administered by the department. The department will accept the use of a joint check issued by a contractor to a subcontractor and its supplier but only if:(1) the contractor does not require the subcontractor to use a supplier specified by the contractor or to use the contractor's negotiated unit price;(2) the subcontractor earns a profit from the material purchased;(3) the subcontractor, not the contractor, negotiates the quantities, price, and delivery of the materials;(4) the contractor issuing the check acts solely as a guarantor;(5) the subcontractor signs the joint check and releases it to the material supplier, not to the contractor;(6) the subcontractor is responsible both to furnish and install the material;(7) the subcontractor has applied for a line of credit with the supplier and was either denied credit or denied a sufficient increase in its line of credit;(8) the supplier is not the contractor or an affiliate of the contractor; and(9) the subcontractor's account with the supplier is in the subcontractor's name alone.(g) The department will conduct prompt pay audits and prompt pay verifications to monitor compliance with this section.</content><note type="source"><p>Source Note: The provisions of this §9.208 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.209"><num value="9.209">§9.209</num><heading>DBE Directory</heading><content>(a) The department will maintain and make available to interested persons a directory identifying all firms eligible to participate as DBEs on department contracts.(b) The DBE directory lists, at a minimum for each firm:(1) the firm's address;(2) the firm's phone number; and(3) the types of work the firm has been certified to perform as a DBE.(c) The department will update the DBE directory quarterly or more frequently if needed.</content><note type="source"><p>Source Note: The provisions of this §9.209 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.210"><num value="9.210">§9.210</num><heading>Overconcentration of DBEs</heading><content>(a) The department from time to time may evaluate whether there is an overconcentration of DBE firms in a certain type of work.(b) If the department determines that there is an overconcentration of DBE firms that unduly burdens the opportunity of non-DBE firms to participate in that type of work, the department will implement appropriate measures, as approved by the appropriate OA, to address the condition.</content><note type="source"><p>Source Note: The provisions of this §9.210 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.211"><num value="9.211">§9.211</num><heading>Business Development Program</heading><content>The department has implemented a DBE technical assistance and supportive services program to assist firms with the ability to compete successfully in the highway construction industry.</content><note type="source"><p>Source Note: The provisions of this §9.211 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.212"><num value="9.212">§9.212</num><heading>Monitoring and Enforcement</heading><content>(a) The department will monitor and enforce contract requirements and verify that work committed to DBEs at contract award is actually performed by the DBEs.(b) The department will keep a current total of payments to DBE firms for work committed to the firms at the time of contract award and compare the amounts to the amounts committed to DBE firms.(c) The department will designate a District Disadvantaged Business Enterprise Coordinator for each of the department's districts. The coordinator will monitor and enforce DBE contract requirements in the district for which the coordinator is designated. The department will develop, disseminate, and update as appropriate, standard operating procedures to be followed by the coordinators.(d) The department will develop, disseminate, and perform an annual district DBE Program compliance audit on districts, prime contractors, local governments, and other entities that are recipients of federal funds, that have adopted the department's DBE Program, or that assist with the administration of various components of the DBE Program.(e) The department will notify DOT and any appropriate state or federal agency of any false, fraudulent, or dishonest conduct in connection with the DBE Program.</content><note type="source"><p>Source Note: The provisions of this §9.212 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.213"><num value="9.213">§9.213</num><heading>Overall DBE Goal</heading><content>(a) Every third year the department will set overall annual goals for DBE participation in DOT-assisted contracts for the following three federal fiscal years. The department may adjust an overall annual goal during the three-year period if circumstances warrant such an adjustment.(b) An overall goal will be based on demonstrable evidence of the availability of ready, willing, and able DBEs relative to all businesses that are ready, willing, and able to participate on the department's DOT assisted contracts and reflect the level of DBE participation that the department would expect absent the effects of discrimination.(c) An overall goal will provide for participation by all certified DBEs and will not be subdivided into group-specific goals.</content><note type="source"><p>Source Note: The provisions of this §9.213 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.214"><num value="9.214">§9.214</num><heading>Proposed Overall Goal</heading><content>(a) The department will consult with contractors; contract consultants; DBEs', minority, women's, and general contractor groups; community organizations; and other officials or organizations that have information concerning:(1) the availability of disadvantaged and non-disadvantaged businesses;(2) the effects of discrimination on opportunities for DBEs; and(3) the department's efforts to establish a level playing field for the participation of DBEs.(b) The department will set proposed overall annual goals for the following three federal fiscal years based on evidence obtained by the department.(c) For FHWA-assisted contracts, an overall goal will be expressed as a percentage of all Federal-aid highway funds that the department will spend on those contracts in the fiscal year for which is it effective.(d) For FTA-assisted or FAA-assisted contracts, an overall goal will be expressed as a percentage of all FTA funds, other than those to be used for the purchase of transit vehicles, or FAA funds that the department will spend in FTA-assisted or FAA-assisted contracts, respectively, in the fiscal year for which it is effective, unless the FTA or FAA Administrator permits the overall goal to be expressed as a percentage of funds for a particular grant or project or group of grants or projects.</content><note type="source"><p>Source Note: The provisions of this §9.214 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.215"><num value="9.215">§9.215</num><heading>Public Participation in Establishing Overall Goal</heading><content>(a) After setting proposed overall goals under §9.214 of this subchapter (relating to Proposed Overall Goal), the department will publish in general circulation media, available minority-focused media, and trade association publications a notice that announces the department's proposed overall goals.(b) The notice must:(1) state that the proposed goals and their rationale are available for inspection during normal business hours at the department's principal office on or before the 30th day after the date of the notice;(2) state that the department and the DOT will accept comments on the proposed goals on or before the 45th day after the date of the notice; and(3) include addresses to which comments may be sent.</content><note type="source"><p>Source Note: The provisions of this §9.215 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.216"><num value="9.216">§9.216</num><heading>Setting Overall Goal</heading><content>After considering public comments on the proposed goals, the department will set the overall annual DBE goals for the following three federal fiscal years.</content><note type="source"><p>Source Note: The provisions of this §9.216 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.217"><num value="9.217">§9.217</num><heading>Submission of Overall Goal</heading><content>(a) The department will submit the overall goals for the following three federal fiscal years and the information described by subsection (b) of this section to the appropriate OA for review by August 1 of the year in which the three-year period begins, unless a different submission date is provided under federal law.(b) The department will submit with the overall goals a description of the methodology used to establish the goals, including:(1) the evidence with which the base figure was calculated;(2) a summary listing of the relevant available evidence in the state and, if not used, an explanation of why it was not used to adjust the base figure; and(3) a projection of the part of each overall goal that the department expects to meet through race-neutral means and through race-conscious means.(c) Any changes to an annual goal that has been set by the department must be submitted to the appropriate OA for review under §9.218 of this subchapter (relating to Review by Operating Administration (OA)).</content><note type="source"><p>Source Note: The provisions of this §9.217 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.218"><num value="9.218">§9.218</num><heading>Review by Operating Administration (OA)</heading><content>(a) Prior approval of the department's overall DBE goal by the OA is not required.(b) The OA may adjust the overall goal or require that the department adjust the overall goal if the OA determines that:(1) the overall goal has not been calculated correctly; or(2) the department's method for calculating the goals is inadequate.(c) If the overall goal is adjusted under subsection (b) of this section, the adjusted overall goal is binding.(d) The projection of the part of the overall goal that the department expects to meet through race-neutral means submitted under §9.217(b)(3) of this subchapter (relating to Submission of Overall Goal) is subject to approval by the appropriate OA.(e) The goal becomes effective October 1 of the year in which it begins to apply unless otherwise provided by DOT.</content><note type="source"><p>Source Note: The provisions of this §9.218 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.219"><num value="9.219">§9.219</num><heading>Interim Steps</heading><content>(a) The department will request the approval of the appropriate OA for an interim goal or goal-setting mechanism if the department needs additional time to collect data or take other steps to develop an approach to setting overall goals.(b) A goal-setting mechanism must:(1) reflect the relative availability of DBEs in the state to the maximum extent feasible given the available data; and(2) avoid imposing undue burdens on non-DBEs.</content><note type="source"><p>Source Note: The provisions of this §9.219 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.220"><num value="9.220">§9.220</num><heading>Use of Race-neutral Means</heading><content>(a) The department will meet as much of its overall goal as feasible by using race-neutral means of facilitating DBE participation.(b) Race-neutral means include:(1) arranging solicitations, times for the presentation of bids, quantities, specifications, and delivery schedules in ways that facilitate DBE and other small business participation;(2) providing assistance to DBEs and other small businesses in overcoming limitations such as the inability to obtain bonding or financing;(3) providing technical assistance and other services to DBEs and other small businesses;(4) carrying out information and communications programs on contracting procedures and specific contract opportunities to ensure the inclusion of DBEs and other small businesses;(5) implementing a supportive services program to develop and improve immediate and long-term business management, record keeping, and financial and accounting capability for DBEs and other small businesses;(6) providing services to help DBEs, and other small businesses, improve long-term development, increase opportunities to participate in a variety of kinds of work, handle increasingly significant projects, and achieve eventual self-sufficiency;(7) establishing a program to assist new, start-up firms, particularly in fields in which DBE participation has historically been low;(8) ensuring distribution of the DBE directory to the widest feasible number of potential contractors; and(9) assisting DBEs and other small businesses in developing their capability to use emerging technology and conduct business through electronic media.</content><note type="source"><p>Source Note: The provisions of this §9.220 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.221"><num value="9.221">§9.221</num><heading>Establishment of Contract Goals</heading><content>(a) The department will establish contract goals for DOT-assisted contracts that have subcontracting possibilities to meet any part of the department's overall goal that the department does not project being met using race-neutral means. The department will determine which of those contracts will have a contract goal.(b) The goal for a specific contract may be higher or lower than that percentage level of the overall goal, depending on factors such as the type of work involved, the location of the work, and the availability of DBEs for the work of the particular contract.(c) Contract goals will be set so that cumulatively they will result in meeting the part of the annual overall goal that is not projected as being met through the use of race-neutral means.(d) OA approval of each contract goal is not required. However, an OA may review and approve or disapprove any contract goal established.(e) A contract goal will provide for participation by all certified DBEs and will not be subdivided into group-specific goals.</content><note type="source"><p>Source Note: The provisions of this §9.221 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.222"><num value="9.222">§9.222</num><heading>Adjustment of Contract Goals</heading><content>(a) If the department determines that the overall goal will be exceeded, the department will reduce or eliminate the use of contract goals for the remainder of the fiscal year to the extent necessary to ensure that the use of contract goals does not result in exceeding the overall goal.(b) If the department determines that it will not meet the overall goal, the department will make appropriate modifications in the use of race-neutral or race-conscious means to meet the overall goal.(c) If a contract change order increases the contract value of a contract that includes federal funding, the increased contract value may become subject to these same goal requirements applicable to the original contract value, requiring an increase in the total DBE participation for the contract.</content><note type="source"><p>Source Note: The provisions of this §9.222 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.223"><num value="9.223">§9.223</num><heading>Prohibition on Use of Contract Goals</heading><content>The department will not set contract goals in a year:(1) in which the department projects that it will meet its overall goal using race-neutral means; or(2) if for the two years preceding that year the department has met or exceeded its overall goal using only race-neutral means.</content><note type="source"><p>Source Note: The provisions of this §9.223 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.224"><num value="9.224">§9.224</num><heading>Reduction on Use of Contract Goals</heading><content>If the department obtains, through the use of contract goals, DBE participation that exceeds the overall goal in two consecutive years, the department in the following year will reduce the use of contract goals by the percentage that the overall goals were exceeded during that two-year period.</content><note type="source"><p>Source Note: The provisions of this §9.224 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.225"><num value="9.225">§9.225</num><heading>Maintaining and Reporting Data on Contract Goals</heading><content>In a year in which the department projects the use of contract goals, the department will maintain data separately on DBE achievements in the contracts with contract goals and contracts without contract goals. The data will be reported to the appropriate OA under §9.236 of this subchapter (relating to Reporting of DBE Participation).</content><note type="source"><p>Source Note: The provisions of this §9.225 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.226"><num value="9.226">§9.226</num><heading>Contract Goal Good Faith Efforts</heading><content>If a DBE contract goal has been established, the department will award the contract only to a bidder that makes good faith efforts to meet the goal as described in 49 C.F.R. Part 26, Appendix A.</content><note type="source"><p>Source Note: The provisions of this §9.226 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.227"><num value="9.227">§9.227</num><heading>Information from Bidders</heading><content>(a) Each bidder must submit to the department within the period provided by §9.17(i) of this chapter (relating to Award of Contract):(1) the names and addresses of each subcontractor, identifying DBEs that will participate in the contract;(2) a description of the work that each DBE will perform;(3) the dollar amount of the participation of each DBE;(4) written documentation of the bidder's commitment to use each DBE subcontractor whose participation the bidder submits to meet a contract goal; and(5) written confirmation from each DBE that it is participating in the contract as provided in the bidder's commitment.(b) Each bidder shall document the bidder's good faith efforts to obtain commitment to meet the contract goal. Good faith efforts are shown if the bidder documents that:(1) sufficient DBE participation has been obtained to meet the contract goal; or(2) the bidder took the types of action that may be considered as good faith efforts as referenced in 49 C.F.R. Part 26, Appendix A, to obtain the commitments to meet the contract goal even though the bidder did not succeed in obtaining sufficient DBE participation to meet the contract goal.(c) In addition to the information required under subsection (a) of this section, if the contract goal is not met by DBE commitments, the bidder must submit to the department, within the period provided by §9.17(i) of this chapter, evidence of the bidder's good faith efforts to obtain DBE participation to meet the contract goal.(d) If the apparent successful bidder fails to obtain the commitments to meet the DBE contract goal and fails to comply with good faith efforts requirements described by subsection (b) of this section, the proposal guaranty filed with the bid is forfeited to the department.</content><note type="source"><p>Source Note: The provisions of this §9.227 adopted to be effective September 1, 2012, 37 TexReg 5320; amended to be effective January 4, 2017, 41 TexReg 10663; amended to be effective February 19, 2020, 45 TexReg 1043.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.228"><num value="9.228">§9.228</num><heading>Reconsideration of the Department's Good Faith Efforts Determination before the Execution of the Contract</heading><content>(a) If the department determines that a bidder failed to satisfy the good faith efforts requirements before the execution of the contract, the department will notify the bidder of the failure and will give the bidder an opportunity for administrative reconsideration.(b) The bidder must request an administrative reconsideration of that determination within 10 days of the date of receipt of the notice provided under subsection (a) of this section.(c) If a reconsideration request is timely received, the reconsideration decision will be made by the department's DBE liaison officer or, if the DBE liaison officer took part in the original determination that the bidder failed to satisfy the good faith effort requirements, a department employee who holds a senior leadership position of the department and reports directly to the executive director, who did not take part in the original determination, and who is appointed by the executive director to make the reconsideration decision.(d) The bidder may provide written documentation or argument concerning whether the assigned DBE contract goal was met or whether adequate good faith efforts were made to meet the contract goal.(e) The DBE liaison or other department employee making the reconsideration determination may request a meeting with the bidder to discuss whether the goal commitments were met or whether adequate good faith efforts were made to obtain the commitments to meet the contract goal.(f) The meeting must be held within 30 days of the date of the request submitted under subsection (b) of this section. If the bidder is unavailable to meet during the 30-day period, the reconsideration decision will be made on the written information provided by the bidder.(g) The department will provide to the bidder a written decision that explains the basis for finding that the bidder did or did not meet the contract goal or make adequate good faith efforts to meet the contract goal within 30 days of the date of the notice issued in subsection (a) of this section.(h) The reconsideration decision is final and is not administratively appealed to DOT.</content><note type="source"><p>Source Note: The provisions of this §9.228 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.229"><num value="9.229">§9.229</num><heading>DBE Substitutions and Terminations</heading><content>(a) A contractor may not substitute for or terminate a DBE subcontractor listed in the information provided under §9.227 of this subchapter (relating to Information from Bidders), without the written consent of the department.(b) Before requesting the department's approval to terminate or substitute for a DBE, the contractor must give written notice to the listed DBE with a copy to the department of the contractor's intent to request the termination or substitution of the DBE and provide a detailed explanation for the request.(c) The contractor must give the listed DBE five days to respond to the notice and to advise the department and the contractor of the reasons the listed DBE objects to the proposed termination or substitution. The department may provide a shorter response time if required in a particular case as a matter of public necessity.(d) When a DBE subcontractor is terminated or fails to complete its work on the contract for any reason, the contractor shall make good faith efforts to find, as a substitute for the original DBE, another DBE to perform, at least to the extent needed to meet the established contract goal the work that the original DBE was to have performed under the contract. If the contractor cannot find another DBE to perform the work originally committed to the terminated DBE the contractor shall make good faith efforts to obtain DBEs to perform other work under the contract equal to the work originally committed to the terminated DBE.(e) The contractor must submit for approval the name of the DBE subcontractor that is to replace the DBE subcontractor listed in the original commitment agreement. Work performed by a substitute before the department has approved the substitution will not be counted toward the DBE goal.(f) If the department determines there is good cause for the termination or replacement the department will provide written consent for the action.(g) Each contract will contain provisions that state the appropriate administrative remedies that apply if the contractor fails to comply with this section.</content><note type="source"><p>Source Note: The provisions of this §9.229 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.230"><num value="9.230">§9.230</num><heading>Labor-only Subcontracts</heading><content>(a) The department may allow labor-only DBE subcontract arrangements for appropriate work categories.(b) A contractor must clearly outline the labor-only status in the subcontract with the DBE subcontractor.</content><note type="source"><p>Source Note: The provisions of this §9.230 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.231"><num value="9.231">§9.231</num><heading>Computing Work Performed by DBE</heading><content>(a) To be counted toward a DBE goal:(1) the work must actually be performed by a DBE; and(2) the DBE must perform a commercially useful function.(b) The entire amount of the fee or commission charged by a DBE for providing a bona fide service, such as professional, technical, consultant, or managerial services, or for providing bonds or insurance specifically required for the performance of a DOT-assisted contract, will be counted toward DBE goals, provided that the fee or commission is determined to be reasonable and not excessive as compared with those customarily allowed for similar services.(c) The amount of the part of a construction contract or other contract not covered by subsection (a) of this section that is performed by the DBE's own forces may be counted toward the DBE goal. The cost of supplies and material obtained by the DBE for the contract work, including supplies purchased or equipment leased by the DBE, other than supplies and equipment the DBE purchases or leases from the prime contractor or its affiliate, is included.(d) If a DBE subcontracts a part of the work of its contract to another firm, the value of the subcontracted work will be counted toward the DBE goal only if the DBE's subcontractor is a DBE.(e) If a DBE is a participant in a joint venture, only the part of the total value of the contract equal to the distinct, clearly defined part of the contract work that the DBE performs with its own forces may be counted toward the DBE goal. For the purposes of this subsection, a "joint venture" is an association of a DBE firm and one or more other firms to carry out a single, for-profit business enterprise, for which the parties combine their property, capital, efforts, skills, and knowledge, and in which the DBE is responsible for a distinct, clearly defined portion of the work of the contract and whose share in the capital contribution, control, management, risks, and profits of the joint venture are commensurate with its ownership interest.</content><note type="source"><p>Source Note: The provisions of this §9.231 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.232"><num value="9.232">§9.232</num><heading>Commercially Useful Function</heading><content>(a) A DBE is considered to perform a commercially useful function (CUF) if the DBE is responsible for:(1) the performance of the work subject to the contract and for the execution of its responsibilities by actually performing, managing, and supervising the work involved; and(2) the provision of the materials and supplies used in the performance of its contract, unless the contract provides for labor services only and is approved by the department, and includes:(A) the negotiation of the price of the materials and supplies;(B) the determination of the quality, if applicable, and quantity of the materials and supplies;(C) the ordering of the material and supplies;(D) the installation of the material, if applicable; and(E) payment for the material.(b) In determining whether a DBE is performing a CUF, the department will consider:(1) the amount of work subcontracted by the DBE;(2) industry practices;(3) whether the amount the DBE is paid under the contract is commensurate with the work actually being performed by the DBE;(4) the amount of DBE credit claimed for the DBE's performance; and(5) any other factor that the department determines to be relevant.(c) A DBE does not perform a commercially useful function if its role is limited to that of an extra participant in a transaction, contract, or project through which funds are passed in order to obtain the appearance of DBE participation. In determining whether a DBE is an extra participant, the department will examine similar transactions, particularly those in which DBEs do not participate.(d) A DBE is presumed not to be performing a CUF if the DBE:(1) does not perform or exercise responsibility for at least 30 percent of the total cost of its contract with its own work force; or(2) subcontracts a greater portion of the work of a contract than would be expected on the basis of normal industry practice for the type of work involved.(e) A DBE may present evidence to the department to rebut the presumption provided under subsection (d) of this section.(f) A decision regarding a DBE's CUF is subject to review by the appropriate OA, but is not administratively appealable to DOT.</content><note type="source"><p>Source Note: The provisions of this §9.232 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.233"><num value="9.233">§9.233</num><heading>Commercially Useful Function by DBE Trucking Firm</heading><content>(a) A DBE trucking firm is considered to perform a CUF if the DBE:(1) is responsible for the management and supervision of the entire trucking operation for its part of the contract and is not part of a contrived arrangement for the purpose of meeting DBE goals; and(2) owns and operates at least one fully licensed, insured, and operational truck used on the contract.(b) A DBE receives credit for the total value of the transportation services it provides on the contract using trucks it owns, insures, and operates using drivers it employs.(c) A DBE that leases trucks from another DBE, including an owner-operator who is certified as a DBE, receives credit for the total value of the transportation services provided on the contract using the leased trucks.(d) The DBE that leases trucks from a non-DBE is entitled to credit for the total value of transportation services provided by non-DBE lessees, not to exceed the value of transportation services provided by the DBE-owned trucks on the contract. Additional participation by non-DBE lessees receive credit only for the fee or commission the DBE receives as a result of the lease arrangement.(e) If a DBE trucking firm enters into a lease for one or more trucks, the lease must provide that the DBE has control of the truck. A leased truck may be used, with the consent of the DBE, for work for a person other than the DBE during the term of the lease. A leased truck must display the name and identification number of the DBE.</content><note type="source"><p>Source Note: The provisions of this §9.233 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.234"><num value="9.234">§9.234</num><heading>Counting Materials or Supplies Provided by DBE Manufacturer or Regular Dealer</heading><content>(a) For the purposes of this section:(1) a DBE manufacturer is a firm that operates or maintains a factory or establishment that produces, on the premises, the materials or supplies that are required under the contract and are of the general character described by the specifications; and(2) subject to subsections (b) and (c) of this section, a DBE regular dealer is an established, regular firm that:(A) engages, as its principal business and under its own name, in the purchase and sale or lease of the materials or supplies described by paragraph (1) of this subsection; and(B) owns, operates, or maintains a store, warehouse, or other establishment in which those materials or supplies are bought, kept in stock, and regularly sold or leased to the public in the usual course of business.(b) For the purposes of this section, a person may be a regular dealer in bulk items such as petroleum products, steel, cement, gravel, stone, or asphalt without owning, operating, or maintaining a place of business as provided by subsection (a)(2)(B) of this section if the person both owns and operates distribution equipment for the products or materials. Any supplementing of a regular dealer's own distribution equipment must be by a long-term lease and not on an ad hoc or contract-by-contract basis.(c) For the purposes of this section, a packager, broker, manufacturer's representative, or other person who arranges or expedites transactions is not a regular dealer.(d) The total cost of the materials and supplies purchased from a DBE manufacturer may be counted toward the DBE goals.(e) Sixty percent of the total cost of the materials and supplies purchased from a DBE regular dealer may be counted toward the DBE goals.(f) The following may be counted toward the DBE goals to the extent the amounts are determined to be reasonable and not excessive as compared with fees customarily allowed for similar services and subject to subsection (g) of this section:(1) the total amount of fees or commissions charged for assistance in the procurement of the materials and supplies provided by a DBE that is neither a DBE manufacturer nor a DBE regular dealer; and(2) the total amount of fees or transportation charges for the delivery to the job site of those materials or supplies required on a job site.(g) None of the cost of the materials or supplies may be counted toward DBE goals under subsection (f) of this section.</content><note type="source"><p>Source Note: The provisions of this §9.234 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.235"><num value="9.235">§9.235</num><heading>Limitations on Amounts Counted toward DBE Goals</heading><content>(a) Only DBE firms certified at the time of execution of the contract, subcontract, or purchase order, as appropriate, are eligible for DBE goal participation.(b) Work performed on a contract by a firm after it has ceased to be certified as a DBE will not be counted toward the overall annual DBE goal.(c) Participation by a DBE on a contract will not be counted toward DBE goals until the amount of the participation has been paid to the DBE.(d) Payments made to a DBE that was not on the original commitment may be counted toward the contract goal if that DBE was certified as a DBE before the execution of the subcontract and has performed a CUF.</content><note type="source"><p>Source Note: The provisions of this §9.235 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.236"><num value="9.236">§9.236</num><heading>Reporting of DBE Participation</heading><content>(a) The department annually will report DBE participation to each OA.(b) The report will provide the payments made to DBEs and contract goal shortfalls on DOT-assisted contracts.(c) During any year in which the department's DBE goals are satisfied through race-neutral and contract specific means, the department will report the DBE achievements separately for achievements on contracts with goals and those without goals.</content><note type="source"><p>Source Note: The provisions of this §9.236 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.237"><num value="9.237">§9.237</num><heading>Determination of Noncompliance; Sanctions</heading><content>(a) The department may determine that the contractor failed to satisfy the good faith efforts requirements in the performance of the contract, or violated any provision of this subchapter, the DBE provisions of the contract, or 49 C.F.R. Part 26.(b) The department may impose any of the following sanctions:(1) a letter of reprimand;(2) contract termination;(3) required participation in DBE outreach programs;(4) required participation in DBE mentor program;(5) liquidated damages; and(6) any other remedy available by law.(c) Factors to be considered in imposing sanctions include:(1) the magnitude and the type of noncompliance described by subsection (a) of this section;(2) the degree of the contractor's culpability;(3) any steps taken to rectify the situation;(4) the contractor's record of performance on other projects including:(A) the contractor's annual DBE participation above the DBE goals;(B) the contractor's annual DBE participation on projects without goals;(C) the number of complaints the department has received from DBEs about the contractor; and(D) the number of times the contractor has been previously sanctioned by the department under this section; and(5) whether a contractor falsified, misrepresented, or withheld information.(d) The department will notify the contractor in writing of the determination under this section. The notice will include the reasons for that determination and specify the resulting sanctions, if any.</content><note type="source"><p>Source Note: The provisions of this §9.237 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.238"><num value="9.238">§9.238</num><heading>Reconsideration of the Department's Noncompliance Determination</heading><content>(a) A contractor may request an administrative reconsideration of the determination made under §9.237 of this subchapter (relating to Determination of Noncompliance; Sanctions), including any sanctions imposed, within 30 days after the date that the notice of the determination is sent to the contractor.(b) If a request for reconsideration of a determination is not filed within the period specified in subsection (a) of this section, the determination made under §9.237 of this chapter and any imposed sanction is final and further administrative appeal is barred.(c) A contractor that requests administrative reconsideration of a determination under subsection (a) of this section must provide with the request written documentation or argument to support its position that the noncompliance determination was made in error by the department.(d) The department may withhold final payment on the contract until the compliance determination is final.(e) The executive director will appoint a department employee to perform the administrative reconsideration of the determination. The employee must hold a senior leadership position in the department and report directly to the executive director. A person who took part in the original determination is not eligible for appointment under this subsection. The appointed employee will act as an administrative hearing officer.(f) The person appointed under subsection (e) of this section will make the final reconsideration decision. The sanctions to be imposed may be changed in the final reconsideration decision.(g) Before making the final reconsideration decision, the person appointed under subsection (e) of this section may decide that an in-person hearing is needed to make a final reconsideration decision, in which event the person will act as the administrative hearing officer. The department will contact the contractor or respondent to schedule the in-person hearing. The hearing will be scheduled for a date that is within 30 days after the date that the determination to hold an in-person hearing is made. The hearing may be rescheduled at the request of either party but must be rescheduled for a date that is within 180 days after the date of the original in-person hearing.(h) The department will provide to the contractor a written decision that explains the reconsideration decision and if the decision is a finding of non-compliance, the basis for that finding.(i) A reconsideration decision under subsection (g) of this section, including sanctions imposed under that decision, is final and further administrative appeal is barred.</content><note type="source"><p>Source Note: The provisions of this §9.238 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.239"><num value="9.239">§9.239</num><heading>Submission of Program Changes to Operating Administration (OA)</heading><content>If the department proposes significant changes to a DBE program that has been approved by an OA, the department will submit those changes to the OA for approval.</content><note type="source"><p>Source Note: The provisions of this §9.239 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.240"><num value="9.240">§9.240</num><heading>Certification of DBEs</heading><content>(a) The department is a member of the Texas Unified Certification Program (TUCP), established by a memorandum of agreement approved by DOT and affective February 7, 2012.(b) The TUCP is responsible for all of the certification of DBEs in the state.(c) An application for DBE certification must be made as provided by the TUCP.(d) Under federal law, an inconsistency or ambiguity in the TUCP agreement will be resolved by giving precedence, in order of priority, to:(1) 49 C.F.R. Part 23, Subpart C;(2) 49 C.F.R. Part 26, Subpart E;(3) applicable DOT Directives;(4) the DOT approved DBE Program;(5) any applicable state law; and(6) TUCP Standard Operating Procedures.</content><note type="source"><p>Source Note: The provisions of this §9.240 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.241"><num value="9.241">§9.241</num><heading>Business Development Program</heading><content>The department has implemented a DBE technical assistance and supportive services program to provide firms resources needed to bid and participate in highway construction contracts.</content><note type="source"><p>Source Note: The provisions of this §9.241 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scJ/s9.242"><num value="9.242">§9.242</num><heading>Complaint Process; Review</heading><content>(a) A DBE certification complaint may be filed directly with the U.S. Department of Transportation or with the department if the department is the TUCP member that certified or denied certification to the entity at issue. The complaint must be in writing and filed within 180 days after:(1) the date of an alleged discrimination or violation of the DBE program; or(2) the date on which a continuing course of conduct in violation of the DBE program was discovered.(b) A person may file a complaint with the department of any DBE program violation. The complaint must be made in writing and filed within 90 days after:(1) the date of the alleged discrimination or violation of the DBE program; or(2) the date on which a continuing course of conduct in violation of the DBE program was discovered.(c) To be filed with the department, a complaint must be sent to the executive director.(d) The department will make an initial determination of whether an investigation is warranted based on the information provided in the complaint. If a decision is made that the complaint does not warrant an investigation, the department will notify the complainant in writing of that decision.(e) If a complaint that the department has determined warrants an investigation is against a DBE, contractor, or sub-recipient, the department will notify that entity of the pending complaint and provide that entity an opportunity to respond to the allegations.(f) The department will notify the complainant and respondent of the outcome of the complaint investigation.(g) If the department's finding confirms the complaint, the department may take any action warranted under this subchapter, the contract, or the TUCP agreement, or may meet with all complainants and respondents to discuss a conciliation agreement. If the department holds a conciliation agreement discussion and all parties agree to a resolution of the complaint, the department will prepare a conciliation agreement for execution and will monitor compliance with the agreement. If the parties fail to agree or do not execute the agreement, the department will decide which corrective action is warranted.</content><note type="source"><p>Source Note: The provisions of this §9.242 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c9/scK"><num value="K">SUBCHAPTER K</num><heading>SMALL BUSINESS ENTERPRISE (SBE) PROGRAM</heading><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.300"><num value="9.300">§9.300</num><heading>Policy</heading><content>It is the policy of the department to:(1) ensure that Small Business Enterprises (SBE) shall have an equal opportunity to participate in the performance of contracts;(2) create a level playing field on which SBEs can compete fairly for contracts and subcontracts;(3) help remove barriers to the participation of Small Business Enterprises in department contracts;(4) assist in the development of firms that can compete successfully in the market place outside the SBE program;(5) develop and maintain a program in order to facilitate contracting opportunities for small businesses; and(6) conduct the SBE program to foster small business participation in compliance with 49 C.F.R. §26.39. The SBE program is a supplement to the federal Disadvantaged Business Enterprise (DBE) program and the state's Historically Underutilized Business (HUB) program, and is used when the DBE and HUB programs do not apply, as provided in §9.301 of this chapter (relating to Applicability of Program).</content><note type="source"><p>Source Note: The provisions of this §9.300 adopted to be effective September 1, 2012, 37 TexReg 5320; amended to be effective September 19, 2018, 43 TexReg 5996.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.301"><num value="9.301">§9.301</num><heading>Applicability of Program</heading><content>The SBE program applies to all contracts for which the department has set neither a DBE goal nor a HUB goal.</content><note type="source"><p>Source Note: The provisions of this §9.301 adopted to be effective September 1, 2012, 37 TexReg 5320; amended to be effective September 19, 2018, 43 TexReg 5996.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.302"><num value="9.302">§9.302</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--The Texas Transportation Commission.(2) Construction contract--A contract entered under Transportation Code, Chapter 223, Subchapter A, for the construction or reconstruction of a segment of the state highway system.(3) Contract--A highway construction or maintenance contract that is subject to this subchapter.(4) Contractor--One who participates, through a contract or any tier of subcontract, in a highway, transit, or airport program.(5) Department--The Texas Department of Transportation.(6) Disadvantaged Business Enterprise (DBE)--A business certified as a disadvantaged business in accordance with the Texas Unified Certification Program (TUCP).(7) Executive director--The executive director of the department.(8) Firm--A business entity, including a sole proprietorship, partnership, or other association, or corporation.(9) Historically Underutilized Business (HUB)--Any business certified as a historically underutilized business by the Texas Comptroller of Public Accounts.(10) Maintenance contract--A contract entered under Transportation Code, Chapter 223, Subchapter A, for the maintenance of a segment of the state highway system.(11) Respondent--A person that responds to an invitation to bid, request for proposal, or comparable solicitation related to a contract to which this subchapter applies.(12) Small Business Enterprise (SBE)--A firm that is certified as a small business enterprise under this subchapter.</content><note type="source"><p>Source Note: The provisions of this §9.302 adopted to be effective September 1, 2012, 37 TexReg 5320; amended to be effective September 19, 2018, 43 TexReg 5996.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.304"><num value="9.304">§9.304</num><heading>Eligibility for Certification</heading><content>To be eligible for certification as an SBE:(1) a firm's annual gross receipts, including the annual gross receipts of all of the firm's affiliates, for the three preceding completed fiscal years may not have exceeded the United States Small Business Administration's size standard for the North American Industry Classification Code, as provided by 13 C.F.R. §121.201, that is designated as the principal business of the firm; and(2) at least 51 percent of the firm's assets and interest and classes of stock and equitable securities, if applicable, must be owned by one or more persons who are United States citizens or lawfully admitted permanent residents.</content><note type="source"><p>Source Note: The provisions of this §9.304 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.305"><num value="9.305">§9.305</num><heading>Application for SBE Certification</heading><content>(a) To be certified as an SBE, a firm must submit to the department, except as provided by subsection (b) of this section, a written application on a form prescribed by the department that affirms under penalty of perjury that the firm qualifies as an SBE.(b) A firm certified as a DBE by any certifying partner of the TUCP will be automatically certified as an SBE by the department. The department will certify as an SBE any firm that is currently certified as a DBE in the TUCP directory maintained by the department and has not already been certified as an SBE. A HUB certified by the Texas Comptroller of Public Accounts will be certified as an SBE on request.(c) If requested by the department, an applicant must provide the requested materials and information necessary to demonstrate the qualifications as an SBE.(d) A firm seeking certification has the burden of demonstrating by a preponderance of the evidence that it meets the certification standards.</content><note type="source"><p>Source Note: The provisions of this §9.305 adopted to be effective September 1, 2012, 37 TexReg 5320; amended to be effective September 19, 2018, 43 TexReg 5996.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.306"><num value="9.306">§9.306</num><heading>Reapplication after Withdrawal of Application</heading><content>An applicant that withdraws its application for SBE certification may reapply at any time.</content><note type="source"><p>Source Note: The provisions of this §9.306 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.307"><num value="9.307">§9.307</num><heading>Review and Evaluation of Certification Application</heading><content>(a) The department will review and evaluate applications for SBE certification and may perform on-site inspections to verify eligibility.(b) The department may deny an application if:(1) the application is not satisfactorily completed;(2) the applicant is not eligible to be certified as an SBE;(3) the application contains false information; or(4) the applicant does not provide the required information.</content><note type="source"><p>Source Note: The provisions of this §9.307 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.308"><num value="9.308">§9.308</num><heading>Certification Decision</heading><content>(a) The department shall certify the applicant as an SBE or deny the application within 90 days after the date that the department receives a satisfactorily completed application.(b) If the application is denied, the department will notify an applicant in writing and state the reasons for the denial.(c) A firm may not reapply for SBE certification within 12 months after the date of a denial notice.</content><note type="source"><p>Source Note: The provisions of this §9.308 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.309"><num value="9.309">§9.309</num><heading>Certification Period; Recertification</heading><content>(a) An SBE certification is valid for three years.(b) To be recertified as an SBE, a firm must submit an application for certification and any requested documentation under §9.305 of this subchapter (relating to Application for SBE Certification).</content><note type="source"><p>Source Note: The provisions of this §9.309 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.310"><num value="9.310">§9.310</num><heading>Applicant's Answer to Denial Notice</heading><content>(a) An applicant may send to the department a written response to an application denial within 15 working days after the date that the department sends notice of denial under §9.308 of this subchapter (relating to Certification Decision).(b) If the applicant does not send a written response within the 15-day period, the denial of certification is final.(c) If an applicant responds within the period provided under subsection (a) of this section, the department will:(1) certify the applicant if the response resolves the eligibility deficiencies; or(2) deny the application if the response does not resolve the eligibility deficiencies.</content><note type="source"><p>Source Note: The provisions of this §9.310 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.311"><num value="9.311">§9.311</num><heading>Certification Challenges</heading><content>(a) A person may challenge the eligibility of a firm certified or seeking to be certified as an SBE.(b) A challenge must be in writing, signed and dated by the challenger, and set forth the factual basis for the challenge.(c) After receiving a challenge, the department will determine if there is reason to believe, on the basis of the information provided by the challenger, that the firm is not eligible.(d) To the extent allowed by law, the department will keep the identity of a challenger confidential unless otherwise authorized by the challenger. The department will advise the challenger that if keeping the identity of the challenger confidential hinders the investigation, the investigation may be closed.(e) The department will review the challenged firm's record, any material provided by that firm and the challenger, and other available information. All parties to the challenge must cooperate with the review.(f) If the department determines that there is reasonable cause to believe that the challenged firm is ineligible, the department will provide a written notice to the firm proposing to find the firm ineligible, stating the reasons for the proposed determination, and offering the firm the opportunity to present information and arguments in writing. If the challenged firm fails to respond to the notice before the 15th working day after the date that the notice is sent, the certification is withdrawn or the application is denied, as appropriate.(g) If the department determines that there is not reasonable cause to believe that the challenged firm is ineligible, the department will notify the challenger in writing of the determination and the reason for it.</content><note type="source"><p>Source Note: The provisions of this §9.311 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.312"><num value="9.312">§9.312</num><heading>Department Challenges</heading><content>(a) If the department receives information that provides reasonable cause to believe that the firm has become ineligible to be certified as an SBE, other than information provided by a challenger under §9.311 of this subchapter (relating to Certification Challenges), the department will provide a written notice to the firm proposing to find the firm ineligible and stating the reasons for it.(b) The department will give the firm an opportunity to present information and arguments in writing concerning its eligibility.</content><note type="source"><p>Source Note: The provisions of this §9.312 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.313"><num value="9.313">§9.313</num><heading>SBE Directory</heading><content>(a) The department will maintain and make available to interested persons a directory identifying all firms eligible to participate as SBEs on department contracts.(b) The SBE directory lists, at a minimum for each firm:(1) the firm's address;(2) the firm's e-mail address, if any;(3) the firm's phone number; and(4) the types of work the firm has been certified to perform as an SBE.(c) The department will update the SBE directory quarterly or more frequently if needed.</content><note type="source"><p>Source Note: The provisions of this §9.313 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.314"><num value="9.314">§9.314</num><heading>SBE Overall Goals</heading><content>(a) The executive director will establish an overall annual SBE contracting goal for the department based on the availability of certified SBEs and an estimation of SBE opportunities in the contracts that will be entered into in the year.(b) The department will make a good faith effort to meet or exceed the annual goal.(c) The department will report annually on small business participation with the department and the results of SBE certification, SBE contract participation, and actions needed to achieve the annual SBE contracting goal established by the executive director.</content><note type="source"><p>Source Note: The provisions of this §9.314 adopted to be effective September 1, 2012, 37 TexReg 5320; amended to be effective September 19, 2018, 43 TexReg 5996.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.315"><num value="9.315">§9.315</num><heading>Contract Goals</heading><content>(a) The department may assign individual contract goals for SBE participation contracts as necessary to cumulatively meet the overall annual SBE goals.(b) Contract goals will be based on the availability of qualified SBEs, work site location, dollar value of the contract, and type of work items specified in the contract.(c) For work to be counted toward an SBE goal the work must actually be performed by an SBE.(d) The entire amount of the fee or commission charged by an SBE for providing a bona fide service, such as professional, technical, consultant, or managerial services, or for providing bonds or insurance specifically required for the performance of a U.S. Department of Transportation assisted contract, will be counted toward SBE goals if that fee or commission is determined to be reasonable and not excessive as compared with those customarily allowed for similar services.(e) The amount of the part of a construction contract or other contract not covered by subsection (c) of this section that is performed by the SBE's own forces may be counted toward the SBE goal. The cost of supplies and material obtained by the SBE for the contract work, including supplies purchased or equipment leased by the SBE, other than supplies and equipment the SBE purchases or leases from the prime contractor or its affiliate, is included.(f) If an SBE subcontracts a part of the work of its contract to another firm, the value of the subcontracted work will be counted toward the SBE goal only if the SBE's subcontractor is an SBE.(g) If an SBE is a participant in a joint venture, only the part of the total value of the contract equal to the distinct, clearly defined part of the contract work that the SBE performs with its own forces may be counted toward the SBE goal.(h) For the purposes of subsection (g) of this section, a "joint venture" is an association of an SBE firm and one or more other firms to carry out a single, for-profit business enterprise, for which the parties combine their property, capital, efforts, skills, and knowledge, and in which the SBE is responsible for a distinct, clearly defined portion of the work of the contract and whose share in the capital contribution, control, management, risks, and profits of the joint venture are commensurate with its ownership interest.</content><note type="source"><p>Source Note: The provisions of this §9.315 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.316"><num value="9.316">§9.316</num><heading>Contractor Representative</heading><content>(a) A contractor that receives a contract with an SBE contract goal must designate an employee to serve as the SBE contact person during the contract.(b) The contractor must inform the department of the representative's name, title, e-mail address, and telephone number no later than five working days after the contract is signed.(c) The SBE representative is responsible for submitting reports, maintaining records, and documenting good faith efforts to use SBEs.</content><note type="source"><p>Source Note: The provisions of this §9.316 adopted to be effective September 1, 2012, 37 TexReg 5320; amended to be effective September 19, 2018, 43 TexReg 5996.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.317"><num value="9.317">§9.317</num><heading>Contract Provisions for SBE Requirements</heading><content>(a) Department contracts will include a contract provision addressing SBE requirements.(b) A contract without an assigned goal will include provisions that:(1) encourage the use of SBEs in subcontracting and material supply activities; and(2) prohibit discrimination.(c) A contract with an assigned goal will include provisions related to the requirements provided by §9.319 of this subchapter (relating to Contractor's Commitment Agreement) and §9.320 of this subchapter (relating to Contractor's Good Faith Efforts).</content><note type="source"><p>Source Note: The provisions of this §9.317 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.318"><num value="9.318">§9.318</num><heading>Payment; Prompt Payment; Joint Checks</heading><content>(a) For the purposes of this section:(1) "subcontractor" includes a supplier;(2) "work" includes materials that are provided by a supplier at a location approved by the department;(3) "satisfactory completion" occurs when:(A) the subcontractor has fulfilled the contract requirements of both the department and the subcontract for the subcontracted work, including the submittal of all information required by the specifications or by the department and including any vegetative establishment, testing, maintenance, and performance of other work that is the responsibility of the subcontractor; and(B) the work done by the subcontractor has been inspected, approved, and paid for by the department; and(4) "contractor" refers to a subcontractor that contracts work to another tier of subcontractors.(b) The department will not withhold retainage on a contract executed and administered by the department. A contractor that withholds retainage on a subcontractor's work shall pay that retainage in full within 10 days after the date of satisfactory completion of all of the subcontractor's work.(c) Each contract, subcontract, or material purchase agreement must include provisions that substantively provide that:(1) within 10 days after the date that the contractor receives payment for work performed by a subcontractor, the contractor will pay the subcontractor for the work performed; and(2) the contractor will pay to a subcontractor any retainage on the subcontractor's work within 10 days after the date of satisfactory completion of all of the subcontractor's work.(d) The inspection and approval of work done by the subcontractor for determining substantial completion does not eliminate the contractor's responsibilities for all of the work, as defined in the contract.(e) The department may pursue actions against a contractor, including withholding of estimates and suspending the work, for noncompliance with the subcontract requirements of this section on receipt of written notice with sufficient details showing the subcontractor has complied with the subcontractor's obligations, as described in the contract.(f) Based on the department's assessment of the construction industry usage of joint check agreements between contractors and subcontractors working on federal-aid construction projects, the department has implemented procedures for the use of joint checks on the SBE contracts executed and administered by the department. The department will accept the use of a joint check issued by a contractor to a subcontractor and its supplier but only if:(1) the contractor does not require the subcontractor to use a supplier specified by the contractor or to use the contractor's negotiated unit price;(2) the subcontractor earns a profit from the material purchased;(3) the subcontractor, not the contractor, negotiates the quantities, price, and delivery of the materials;(4) the contractor issuing the check acts solely as a guarantor;(5) the subcontractor signs the joint check and releases it to the supplier, not the contractor;(6) the subcontractor is responsible both to furnish and install the material;(7) the subcontractor has applied for a line of credit with the supplier and was either denied credit or denied a sufficient increase in its line of credit;(8) the supplier is not the contractor or an affiliate of the contractor; and(9) the subcontractor's account with the supplier is in the subcontractor's name alone.(g) The department will conduct prompt pay audits and prompt pay verifications to monitor compliance with this section.</content><note type="source"><p>Source Note: The provisions of this §9.318 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.319"><num value="9.319">§9.319</num><heading>Contractor's Commitment Agreement</heading><content>(a) Within the time specified in the contract or proposal, the contractor shall furnish a commitment agreement for each certified SBE that will be used to meet the contract goal.(b) The commitment agreement must include:(1) the items of work to be performed;(2) the quantities of work or material;(3) the unit measure, unit price, and total cost for each item;(4) the total amount of the SBE commitment;(5) the name, address, and point of contact of each SBE that will participate in the contract;(6) the description and dollar amount of the work to be performed by each SBE;(7) the original signatures of the contractor and the proposed SBE;(8) documentation of the bidder's commitment to use each SBE subcontractor for the dollar amount originally submitted; and(9) confirmation from each SBE that it is participating in the contract as provided in the bidder's commitment.</content><note type="source"><p>Source Note: The provisions of this §9.319 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.320"><num value="9.320">§9.320</num><heading>Contractor's Good Faith Efforts</heading><content>(a) If the contractor is unable to meet the SBE goal, the contractor must document the good faith efforts taken to meet the SBE goal and to obtain SBE participation.(b) The department will consider as good faith efforts all documented explanations that are submitted and that describe a contractor's failure to meet an SBE goal or obtain SBE participation, including:(1) advertising in general circulation, trade association, or minority or women focus media concerning subcontracting opportunities;(2) providing written notice to at least five qualified SBEs allowing sufficient time for SBEs to participate effectively;(3) dividing the contract work into reasonable portions in accordance with standard industry practices;(4) documenting reasons for rejection or meeting with the rejected SBE to discuss the rejection;(5) providing qualified SBEs with adequate information about bonding, insurance, plans, specifications, scope of work, and the requirements of the contract;(6) negotiating in good faith with qualified SBEs, not rejecting qualified SBEs who are also the lowest responsive bidder; and(7) using the services of available minorities and women, community organizations, contractor groups, local, state, and federal business assistance offices, and other organizations that provide support services to SBEs.</content><note type="source"><p>Source Note: The provisions of this §9.320 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.321"><num value="9.321">§9.321</num><heading>Subcontracting</heading><content>(a) An SBE contractor or SBE subcontractor may subcontract work but shall perform at least 25 percent of the value of the contract work with:(1) employees paid directly by the SBE;(2) individuals whose services are obtained from a licensed employee leasing company; and(3) equipment owned or rented or leased directly by the SBE.(b) A contractor may not furnish work crews to an SBE subcontractor.</content><note type="source"><p>Source Note: The provisions of this §9.321 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.322"><num value="9.322">§9.322</num><heading>Leases</heading><content>(a) An SBE may lease equipment consistent with standard industry practice.(b) The SBE must provide the operator of the leased equipment and must be responsible for all applicable payroll and labor compliance requirements.(c) The SBE that leases trucks from a non-SBE is entitled to credit for the total value of transportation services provided by non-SBE lessees, not to exceed the value of transportation services provided by the SBE-owned trucks on the contract. Additional participation by non-SBE lessees receive credit only for the fee or commission the SBE receives as a result of the lease arrangement.</content><note type="source"><p>Source Note: The provisions of this §9.322 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.323"><num value="9.323">§9.323</num><heading>Withholding or Reducing Payments</heading><content>A contractor may not withhold or reduce payments to an SBE firm without a reason that is accepted as standard industry practice.</content><note type="source"><p>Source Note: The provisions of this §9.323 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.324"><num value="9.324">§9.324</num><heading>SBE Subcontractor Termination</heading><content>(a) If a contract has an SBE contract goal, the contractor may not substitute or terminate an SBE subcontractor submitted on a commitment agreement without the prior written consent of the department.(b) Before requesting the department's approval to terminate or substitute for an SBE, the contractor must give written notice to the listed SBE with a copy to the department of the contractor's intent to request the termination or substitution of the SBE and provide a detailed explanation for the request.(c) The contractor must give the listed SBE five days to respond to the notice and to advise the department and the contractor of the reasons the listed SBE objects to the proposed termination or substitution. The department may provide a shorter response time if required in a particular case as a matter of public necessity.(d) When an SBE subcontractor is terminated or fails to complete its work on the contract for any reason, the contractor shall make good faith efforts to find, as a substitute for the original SBE, another SBE to perform, at least to the extent needed to meet the established contract goal the work that the original SBE was to have performed under the contract. If the contractor cannot find another SBE to perform the work originally committed to the terminated SBE the contractor shall make good faith efforts to obtain SBEs to perform other work under the contract equal to the work originally committed to the terminated SBE.(e) The contractor must submit for approval the name of the SBE subcontractor that is to replace the SBE subcontractor listed in the original commitment agreement. Work performed by a substitute before the department has approved the substitution will not be counted toward the SBE goal.(f) If the department determines there is good cause for the termination or replacement, the department will provide written consent for the action.(g) Each contract will contain provisions that state the appropriate administrative remedies that apply if the contractor fails to comply with this section.</content><note type="source"><p>Source Note: The provisions of this §9.324 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.325"><num value="9.325">§9.325</num><heading>Performance</heading><content>(a) An SBE contractor or subcontractor shall comply with the terms of the contract or subcontract for which it was selected.(b) Work products, services, and commodities must meet contract specifications.(c) The SBE's work performance must include being responsible for:(1) the performance of the work subject to the contract and for the execution of its responsibilities by actually performing, managing, and supervising the work involved; and(2) the provision of the materials and supplies used in the performance of its contract, unless the contract provides for labor services only and is approved by the department, and includes:(A) negotiation of the price of the materials and supplies;(B) determination of the quality, if applicable, and quantity of the materials and supplies;(C) ordering of the material and supplies;(D) installation of the material, if applicable; and(E) payment for the material.(d) An SBE's performance should not include a role that is limited to that of an extra participant in a transaction, contract, or project through which funds are passed in order to obtain the appearance of SBE participation. In determining whether an SBE is an extra participant, the department will examine similar transactions, particularly those in which SBEs do not participate.(e) An SBE must be responsible for at least 25 percent of the total cost of its contract with its own work force or, if a lesser percentage is expected under normal industry practice for the type of work involved, may not subcontract a greater portion of the work of the contract than would be expected on the basis of normal industry practice for that type of work.</content><note type="source"><p>Source Note: The provisions of this §9.325 adopted to be effective September 1, 2012, 37 TexReg 5320; amended to be effective September 19, 2018, 43 TexReg 5996.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.326"><num value="9.326">§9.326</num><heading>Contractor Reports</heading><content>(a) A contractor shall submit to the department monthly reports that indicate the amount paid to each SBE.(b) Reports under this section must be submitted in a form acceptable to the department. Each report must include the identification of the SBE by name and vendor number.(c) If required by the department, the contractor shall attach to a report under this section proof of payment, including copies of canceled checks.(d) The contractor shall submit in accordance with the contract and in a form acceptable to the department a final report that shows the total paid to each SBE.</content><note type="source"><p>Source Note: The provisions of this §9.326 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.327"><num value="9.327">§9.327</num><heading>Contractor Records</heading><content>(a) A contractor shall retain all records specified in the contract for three years after the later of:(1) the date that the final payment is made under the contract; or(2) the latest date of completion of any investigation, audit, examination, or other review that began during the period of the contract or within three years of the date described by paragraph (1) of this subsection.(b) The contractor shall make the records available to representatives of the department and other interested state agency representatives for inspection, audit, examination, investigation, or other review at all reasonable times during the retention period.</content><note type="source"><p>Source Note: The provisions of this §9.327 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.328"><num value="9.328">§9.328</num><heading>Credits for Expenditures</heading><content>A contractor will receive credit for all payments made to an SBE for work performed and costs incurred, including costs of materials and supplies, in accordance with the contract, including all subcontracted work.</content><note type="source"><p>Source Note: The provisions of this §9.328 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.329"><num value="9.329">§9.329</num><heading>Monitoring of Contract Compliance</heading><content>(a) The department will monitor contractor compliance by:(1) reviewing contractor reports; and(2) making on-site visits to the project and the offices of a contractor or subcontractor.(b) The department will keep a current total of payments to SBE firms for work committed to the firms at the time of contract award and compare the amounts to the amounts paid to SBE firms.</content><note type="source"><p>Source Note: The provisions of this §9.329 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.330"><num value="9.330">§9.330</num><heading>Complaints</heading><content>(a) This section does not apply to:(1) a subcontractor's claim for additional payments or time extensions; or(2) a discrimination complaint made against a department employee, which is handled in accordance with the department's Human Resources Manual.(b) A complaint alleging a violation of the SBE program, including a claim of discrimination, may be filed by:(1) an aggrieved person; or(2) a person on behalf of another person or a specific class of individuals.(c) The complaint must be in writing and must be sent to the department within 90 days after the date that:(1) the alleged discrimination or violation of the SBE program occurred; or(2) a continuing course of conduct in violation of the SBE program was discovered.</content><note type="source"><p>Source Note: The provisions of this §9.330 adopted to be effective September 1, 2012, 37 TexReg 5320; amended to be effective September 19, 2018, 43 TexReg 5996.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.331"><num value="9.331">§9.331</num><heading>Review and Investigation of Complaints</heading><content>(a) The department will review each complaint filed under §9.330 of this subchapter (relating to Complaints) and will notify the complainant that the department has determined that:(1) an investigation is warranted; or(2) that an investigation is not necessary and the reasons for that determination.(b) If the complaint is made against a specific division, the executive director will appoint another division or office of the department to review and investigate the complaint.(c) The reviewing entity will forward the written findings to the complainant and respondent.(d) If the finding confirms the complaint, the reviewing entity will meet with the complainant and respondent to discuss a conciliation agreement.(e) If the parties concur, the reviewing entity will prepare a conciliation agreement for execution and will monitor the agreement to completion.(f) If the parties do not agree to a conciliation agreement, the director of the reviewing entity will make a decision regarding corrective action needed and monitor the corrective action, if any.</content><note type="source"><p>Source Note: The provisions of this §9.331 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.332"><num value="9.332">§9.332</num><heading>Determination of Noncompliance; Sanctions</heading><content>(a) The department may determine that the contractor or respondent failed to satisfy the requirements of this subchapter or comply with the contract's SBE special provision requirements.(b) If a responder does not furnish the required SBE information within the period specified in the contract's SBE special provision, the department may declare the responder to be in default and retain the bid guaranty as liquidated damages in accordance with §9.18 of this chapter (relating to After Contract Award).(c) The department will impose sanctions if the contractor:(1) is found to have discriminated against an SBE firm;(2) has failed to meet the contract SBE goal and has failed to demonstrate a good faith effort to meet the goal; or(3) has not kept SBE commitments for the contracts assigned a goal and the department has not approved good faith efforts or a substitution of the SBE firm.(d) The department may impose any of the following sanctions:(1) written reprimand;(2) liquidated damages;(3) contract termination; or(4) other remedies available by law.(e) Factors to be considered in imposing sanctions include:(1) the magnitude and the type of noncompliance described by subsection (a) of this section;(2) the degree of the contractor's culpability;(3) any steps taken to rectify the situation;(4) the contractor's record of performance on other projects including:(A) the contractor's annual SBE participation above SBE goals;(B) the contractor's annual SBE participation on projects without goals;(C) number of complaints the department has received from SBEs about the contractor; and(D) the number of times the contractor has been previously sanctioned by the department under this section; and(5) whether a contractor falsified, misrepresented, or withheld information.(f) The department will notify the contractor or respondent of its determination under this section. The notice will include the reasons for that determination and specify the resulting sanctions, if any.</content><note type="source"><p>Source Note: The provisions of this §9.332 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scK/s9.333"><num value="9.333">§9.333</num><heading>Reconsideration of the Department's Noncompliance Determination</heading><content>(a) A contractor or respondent may request an administrative reconsideration of the determination made under §9.332 of this subchapter (relating to Determination of Noncompliance; Sanctions), including any sanctions imposed, within 10 days after the date that notice of the determination is sent to the respondent or within 30 days after the date that the notice of the determination is sent to the contractor.(b) If a request for reconsideration of a determination is not filed within the period specified in subsection (a) of this section, the determination made under §9.332 of this subchapter and any imposed sanction is final and further administrative appeal is barred.(c) A contractor or respondent that requests administrative reconsideration of a determination under subsection (a) of this section must provide with the request written documentation or argument to support its position that the noncompliance determination was made in error by the department.(d) The executive director will appoint a department employee to perform the administrative reconsideration of the determination. The employee must hold a senior leadership position in the department and report directly to the executive director. A person who took part in the original determination is not eligible for appointment under this subsection. The appointed employee will act as an administrative hearing officer.(e) The person appointed under subsection (d) of this section will make the final reconsideration decision. The sanctions to be imposed may be changed in the final reconsideration decision.(f) Before making the final reconsideration decision, the person appointed under subsection (d) of this section may decide that an in-person hearing is needed to make a final reconsideration decision, in which event the person will act as the administrative hearing officer. The department will contact the contractor or respondent to schedule the in-person hearing. The hearing will be scheduled for a date that is within 30 days after the date that the determination to hold an in-person hearing is made. The hearing may be rescheduled at the request of either party but must be rescheduled for a date that is within 15 days after the date of the original in-person hearing if the contract has not been awarded, or within 180 days after the date of the original in-person hearing for all other situations.(g) The department will provide to the contractor or respondent a written decision that explains the reconsideration decision and if the decision is a finding of non-compliance, the basis for that finding.(h) A reconsideration decision under subsection (g) of this section, including sanctions imposed under that decision, is final and further administrative appeal is barred.</content><note type="source"><p>Source Note: The provisions of this §9.333 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c9/scL"><num value="L">SUBCHAPTER L</num><heading>HISTORICALLY UNDERUTILIZED BUSINESS (HUB) PROGRAM</heading><section identifier="/us/state/tx/tac/t43/p1/c9/scL/s9.350"><num value="9.350">§9.350</num><heading>Policy</heading><content>It is the policy of the department to:(1) ensure that Historically Underutilized Businesses have an equal opportunity to participate in the performance of contracts;(2) create a level playing field on which Historically Underutilized Businesses can compete fairly for contracts and subcontracts;(3) ensure nondiscrimination on the basis of race, color, national origin, or gender in purchasing activities and in the award and administration of contracts;(4) help remove barriers to the participation of Historically Underutilized Businesses in department purchases and contracts;(5) assist in the development of firms that can compete successfully in the market place outside the Historically Underutilized Business program; and(6) develop and maintain a program in order to facilitate purchasing and contracting opportunities for historically underutilized businesses.</content><note type="source"><p>Source Note: The provisions of this §9.350 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scL/s9.351"><num value="9.351">§9.351</num><heading>Application of Subchapter</heading><content>(a) This subchapter applies only to a contract that is funded entirely with state and local funds and is for:(1) a building;(2) professional, aviation, public transportation, or private consultant services; or(3) a purchase of goods or services that is made under Government Code, Title 10, Subtitle D.(b) This subchapter does not apply to a highway or railroad construction or maintenance contract.</content><note type="source"><p>Source Note: The provisions of this §9.351 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scL/s9.352"><num value="9.352">§9.352</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Contractor--One who participates, through a contract or any tier of subcontract.(2) Comptroller--The Texas Comptroller of Public Accounts.(3) Department--The Texas Department of Transportation.(4) Executive director--The executive director of the department.(5) Historically Underutilized Business (HUB)--A business certified as a historically underutilized business by the comptroller.(6) Respondent--A person that responds to an invitation to bid, request for proposal, or comparable solicitation related to a contract to which this subchapter applies.(7) Vendor identification number (VID)--An identification number used in state government to identify the bidder or business for payment or award of contracts, certification as a HUB, and registration on the bidders list.</content><note type="source"><p>Source Note: The provisions of this §9.352 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scL/s9.353"><num value="9.353">§9.353</num><heading>Certification of HUBs</heading><content>(a) The department and comptroller operate under a memorandum of agreement that allows qualified businesses certified as a Disadvantaged Business Enterprise (DBE) in accordance with the Texas Unified Certification Plan (TUCP) to be recognized as a HUB.(b) The comptroller certifies businesses as HUBs using procedures set forth at 34 TAC Chapter 20, Subchapter B (relating to Historically Underutilized Business Program). The comptroller maintains a directory of certified HUBs.(c) The department will submit information regarding DBEs who qualify as HUBs to the comptroller for certification.(d) A challenge regarding a business's eligibility for HUB certification that is based on the TUCP DBE certification must be submitted to the department for referral and resolution.(e) A business whose HUB certification is based on the TUCP DBE certification loses its HUB certification if it is ineligible to be certified as a DBE.</content><note type="source"><p>Source Note: The provisions of this §9.353 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scL/s9.354"><num value="9.354">§9.354</num><heading>HUB Overall Goals</heading><content>(a) The executive director will establish annual agency HUB participation goals making use of disparity studies, including the study described by Government Code, §2161.002(c), as well as other relevant information and complying with 34 TAC §20.13 (relating to Statewide Annual HUB Utilization Goals).(b) The department will make a good faith effort to meet or exceed the goal established under subsection (a) of this section.</content><note type="source"><p>Source Note: The provisions of this §9.354 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scL/s9.355"><num value="9.355">§9.355</num><heading>Contract Goals</heading><content>(a) The department will assign individual contract goals for HUB participation contracts as necessary to meet the overall annual HUB goals.(b) Contract goals will be based on the availability of qualified HUBs, work site location, dollar value of the contract, and type of work items specified in the contract.(c) If the department has not assigned an individual contract goal for a contract but the department has identified that HUB subcontracting opportunities exist, the department may require a HUB plan under §9.356(a) of this subchapter (relating to HUB Plan).</content><note type="source"><p>Source Note: The provisions of this §9.355 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scL/s9.356"><num value="9.356">§9.356</num><heading>HUB Plan</heading><content>(a) A contract that is estimated to involve more than $100,000 over the life of the contract, including renewals, and that has subcontracting opportunities must include a HUB plan as a condition of contract award. The department may require a HUB plan as a condition of the award of a contract that is estimated to involve not more than $100,000 over the life of the contract, including renewals, if the contract has subcontracting opportunities.(b) A business that responds to an invitation to bid, request for proposal, or comparable solicitation related to a contract other than building contracts to which this subchapter applies must submit a HUB plan at the same time that the bid, proposal, offer, or other applicable expression of interest is submitted to the department. A response that does not include a HUB plan will be rejected due to material failure to comply with advertised specifications. For building contracts, the HUB plan must be submitted after the conditional contract award as specified in the contract or proposal.(c) Except as modified by subsection (d) of this section, the HUB plan must include:(1) a statement of whether the respondent is a certified HUB;(2) a certification that the respondent has made a good faith effort to meet the requirements of this subchapter;(3) identification of the subcontractors that will be used during the course of the contract;(4) the expected percentage of the work on the contract that will be subcontracted; and(5) the approximate dollar amount of the percentage of work subcontracted.(d) For an engineering, surveying, or architecture contract, the percentage of work that will be subcontracted and the approximate dollar amount of the percentage of work subcontracted required under subsection (c)(4) and (5) of this section cannot be obtained at the time of the contract bid and is not required to be submitted before the execution of the contract.(e) If the department determines that a submitted HUB plan contains minor deficiencies, such as the failure to sign or date the plan, but contains sufficient information for the department to determine that the plan was developed and submitted in good faith, the department may contact the respondent for clarification of the deficiencies.</content><note type="source"><p>Source Note: The provisions of this §9.356 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scL/s9.357"><num value="9.357">§9.357</num><heading>Good Faith Efforts Documentation</heading><content>(a) If a respondent or contractor is not subcontracting any portion of the contract, is unable to obtain HUB participation, or is unable to meet the assigned goal for a contract, the respondent or contractor must describe in writing the actions that it has taken to obtain HUB participation in accordance with applicable contract requirements. The actions that will be considered to establish good faith effort include:(1) dividing the contract work into reasonable portions in accordance with standard industry practices;(2) providing written justification of the selection process if no HUB subcontractors are selected;(3) providing notice to minority or women trade organizations or development centers not later than the seventh working day before submission of the response described by §9.356(b) of this subchapter (relating to HUB Plan) unless the department determines that circumstances require a different period;(4) negotiating in good faith with qualified HUBs and not rejecting qualified HUBs that were also the best value responsive bidder; and(5) participating in a mentor protégé program under Government Code, §2161.065, and identifying the areas of the subcontracting plan to be performed by the protégé under the HUB plan.(b) In addition to the description of actions listed under subsection (a) of this section, the respondent or contractor may provide documentation to establish one or more of the following:(1) that notice was provided to three or more qualified HUBs not later than the seventh working day before submission of the response described by §9.356(b) of this subchapter for HUBs to participate effectively, unless the department determines that circumstances that are documented in the respondent's or contractor's files require a shorter period;(2) that 100 percent of all available subcontracting opportunities will be performed by one or more HUBS; or(3) that one or more HUB subcontractors will be used and that the total value of those subcontracts will meet or exceed the higher of the statewide or department goal for the appropriate category.(c) The department will consider the submitted description of actions taken under subsection (a) of this section and documentation submitted under subsection (b) of this section in determining whether a respondent or contractor has made good faith efforts to obtain HUB participation.(d) If the respondent or contractor is able to fulfill all of the identified subcontracting opportunities with its own equipment, supplies, materials, or employees, the respondent or contractor must provide a signed affidavit explaining how the contractor intends to fulfill each subcontracting opportunity. To verify the affidavit, the department may require:(1) evidence of existing staffing to meet contract obligations;(2) monthly payroll records showing that the respondent's or contractor's staff is fully engaged;(3) on-site reviews of the respondent's or contractor's headquarters or work site where services will be performed; and(4) documentation showing employment of personnel with necessary licenses and certifications to perform the contract work.</content><note type="source"><p>Source Note: The provisions of this §9.357 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scL/s9.358"><num value="9.358">§9.358</num><heading>Required Contract Provisions</heading><content>Each contract to which this subchapter applies must include the HUB requirements applicable to the contract.</content><note type="source"><p>Source Note: The provisions of this §9.358 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scL/s9.359"><num value="9.359">§9.359</num><heading>Changes to and Monitoring of HUB Plan</heading><content>(a) The department must approve any changes to the HUB plan. Amendments to the contract or other written approval of the contract change must be recorded in the procurement file.(b) If the original scope of work is expanded through a change order or contract amendment, the department will determine whether any additional opportunities exist for HUB participation and will require submission of a revised HUB plan for additional opportunities.(c) The contractor may not implement a change in the HUB plan before the change is approved by the department.(d) The department will monitor the HUB plan monthly to determine compliance with the plan. If the contractor fails to fulfill the plan, the contractor, within 30 days after the date that the contract is completed or terminated must explain to the department why the failure should not be attributed to a lack of good faith.(e) To determine that the contractor is complying with the HUB plan, the agency may consider:(1) whether the contractor gave timely notice to the subcontractor regarding the time and place of the subcontracted work;(2) whether the contractor facilitated access to the resources needed to complete the work; or(3) whether the contractor complied with the approved HUB subcontracting plan.(f) If the department determines that the contractor did not implement the HUB plan in good faith, the department will report the nonperformance to the comptroller in the manner described by 34 TAC §§20.101 - 20.108 (relating to Procurement) and may revoke the contract for breach of contract and make a claim against the contractor.</content><note type="source"><p>Source Note: The provisions of this §9.359 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scL/s9.360"><num value="9.360">§9.360</num><heading>HUB Commitment Agreement</heading><content>(a) A contract with an assigned goal will include provisions requiring that the contractor submit a HUB commitment agreement in addition to the HUB Plan required by §9.356 of this subchapter (relating to HUB Plan) as a condition of contract award.(b) Within the time specified in the contract or proposal, the contractor must furnish a HUB commitment agreement for each certified HUB that will be used to meet the contract goal.(c) The commitment agreement must include:(1) the items of work to be performed;(2) the quantities of work or material;(3) the unit measure, unit price, and total cost for each item;(4) the total amount of the HUB commitment;(5) the original signatures of the contractor and the proposed HUB; and(6) if the commitment involves a HUB material supplier, an explanation of the function to be performed and a description of any arrangements, including joint check agreements, made with other material suppliers, manufacturers, distributors, hauling firms, or freight companies.(d) The contractor shall give the department a copy of each subcontract award within ten days after the date that the subcontract is awarded.</content><note type="source"><p>Source Note: The provisions of this §9.360 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scL/s9.361"><num value="9.361">§9.361</num><heading>Reporting</heading><content>(a) The contractor shall maintain business records documenting compliance with the HUB plan.(b) The contractor must submit monthly reports to the department at intervals specified in the contract using a report form acceptable to the department. The report must identify each subcontractor, regardless of whether the subcontractor is a HUB, by name and VID and must indicate the amount paid to each subcontractor. The report must be submitted even if no payments were made during the period being reported. If required by the department, the contractor must attach proof of payment including copies of cancelled checks.(c) The contractor must submit a final report in accordance with the contract, using a form acceptable to the department. The final report must show the total amount paid to each subcontractor.</content><note type="source"><p>Source Note: The provisions of this §9.361 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scL/s9.362"><num value="9.362">§9.362</num><heading>Credit for HUB Expenditures</heading><content>A contractor will receive credit for all payments made to a HUB for work performed and costs incurred in accordance with the contract, including all subcontracted work.</content><note type="source"><p>Source Note: The provisions of this §9.362 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scL/s9.363"><num value="9.363">§9.363</num><heading>Monitoring of Contractor Compliance</heading><content>The department will monitor contractor compliance by:(1) reviewing periodic HUB Subcontracting Plan Prime Contractor Progress Assessment Reports; and(2) making on-site visits to the project as applicable and the offices of a contractor or subcontractor as needed to verify compliance.</content><note type="source"><p>Source Note: The provisions of this §9.363 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scL/s9.364"><num value="9.364">§9.364</num><heading>Complaints</heading><content>(a) This section does not apply to:(1) a claim for purchase contracts under §9.1 of this chapter (relating to Claims for Purchase Contracts); or(2) a discrimination complaint made against a department employee, which is handled in accordance with the department's Human Resources Manual.(b) A complaint alleging a violation of the HUB program, including a claim of discrimination, may be filed by:(1) an aggrieved person; or(2) a person on behalf of another person or a specific class of individuals.(c) The complaint must in writing and must be sent to the department within 90 days after the date that:(1) the alleged discrimination or violation of the HUB program occurred; or(2) a continuing course of conduct in violation of the HUB program was discovered.</content><note type="source"><p>Source Note: The provisions of this §9.364 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scL/s9.365"><num value="9.365">§9.365</num><heading>Review and Investigation of Complaints</heading><content>(a) The department will review each complaint filed under §9.364 of this subchapter (relating to Complaints) and will notify the complainant that the department has determined that:(1) an investigation is warranted; or(2) an investigation is not necessary and the reasons for that determination.(b) The executive director will appoint a division or office of the department to review and investigate the complaint.(c) The reviewing entity will forward the written findings to the complainant and respondent.(d) If the finding confirms the complaint, the reviewing entity will meet with the complainant and respondent to discuss a conciliation agreement.(e) If the parties concur, the reviewing entity will prepare a conciliation agreement for execution and will monitor the agreement to completion.(f) If the parties do not agree to a conciliation agreement, the director of the reviewing entity will make a decision regarding corrective action needed and monitor the corrective action, if any.</content><note type="source"><p>Source Note: The provisions of this §9.365 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scL/s9.366"><num value="9.366">§9.366</num><heading>Determination of Noncompliance; Sanctions</heading><content>(a) The department may determine that the contractor or respondent failed to satisfy the requirements of this subchapter.(b) If a noncompliance determination is made under this section, the department may impose a sanction. The available sanctions are:(1) letter of reprimand;(2) denial of the award of the contract;(3) termination of the contract;(4) required participation in HUB outreach programs;(5) a report to the comptroller of noncompliance in the manner described by 34 TAC §§20.101 - 20.108 (relating to Procurement);(6) require payment of liquidated damages; and(7) any other remedy available by law.(c) Factors to be considered in issuing sanctions include:(1) the magnitude and type of the violation;(2) the degree of the contractor's or respondent's culpability;(3) steps taken by the contractor or respondent to rectify the situation;(4) the contractor's or respondent's record of performance on other department projects; and(5) whether the contractor or respondent falsified, misrepresented, or withheld information.(d) Within ten days after the date of the final determination under this section, the department will notify the contractor or respondent in writing of the determination. The notice will include the reasons for that determination and specify any resulting sanctions.</content><note type="source"><p>Source Note: The provisions of this §9.366 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c9/scL/s9.367"><num value="9.367">§9.367</num><heading>Reconsideration of the Department's Noncompliance Determination</heading><content>(a) The contractor or respondent may request an administrative reconsideration of the determination made under §9.366 of this subchapter (relating to Determination of Noncompliance), including the sanctions imposed, within 10 days after the date that notice is sent to the respondent or within 30 days after the date that the notice is sent to the contractor.(b) If a request for reconsideration of a determination is not filed within the period specified in subsection (a) of this section, the determination made under §9.366 of this subchapter and any imposed sanction is final and further administrative appeal is barred.(c) A contractor or respondent that requests administrative reconsideration of a determination under subsection (a) of this section must provide with the request written documentation or argument to support its position that the noncompliance determination was made in error by the department.(d) The executive director will appoint a department employee to perform the administrative reconsideration of the determination. The employee must hold a senior leadership position in the department and report directly to the executive director. A person who took part in the original determination is not eligible for appointment under this subsection. The appointed employee will act as an administrative hearing officer.(e) The person appointed under subsection (d) of this section will make the final reconsideration decision. The sanctions to be imposed may be changed in the final reconsideration decision.(f) Before making the final reconsideration decision, the person appointed under subsection (d) of this section may decide that an in-person hearing is needed to make a final reconsideration decision, in which event the person will act as the administrative hearing officer. The department will contact the contractor or respondent to schedule the in-person hearing. The hearing will be scheduled for a date that is within 30 days after the date that the determination to hold an in-person hearing is made. The hearing may be rescheduled at the request of either party but must be rescheduled for a date that is within 15 days after the date of the original in-person hearing if the contract has not been awarded, or within 180 days after the date of the original in-person hearing for all other situations.(g) The department will provide to the contractor or respondent a written decision that explains the reconsideration decision and if the decision is a finding of non-compliance, the basis for that finding.(h) A reconsideration decision under subsection (g) of this section, including sanctions imposed under that decision, is final and further administrative appeal is barred.</content><note type="source"><p>Source Note: The provisions of this §9.367 adopted to be effective September 1, 2012, 37 TexReg 5320.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p1/c10"><num value="10">CHAPTER 10</num><heading>ETHICAL CONDUCT BY ENTITIES DOING BUSINESS WITH THE DEPARTMENT</heading><subchapter identifier="/us/state/tx/tac/t43/p1/c10/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t43/p1/c10/scA/s10.1"><num value="10.1">§10.1</num><heading>Purpose</heading><content>As a steward of public resources, the department must ensure the protection of public funds and maintain a high level of transparency and accountability. Therefore, the department expects entities doing business with the department to adhere to ethical standards of conduct. This chapter prescribes required ethical standards for entities doing business with the department, and most enforcement provisions applicable for violations of the ethical standards.</content><note type="source"><p>Source Note: The provisions of this §10.1 adopted to be effective January 6, 2011, 35 TexReg 11951; amended to be effective September 19, 2018, 43 TexReg 6000.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c10/scA/s10.2"><num value="10.2">§10.2</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise.(1) Commission--The Texas Transportation Commission.(2) Debarment--Disqualification of an entity from bidding on or entering into a contract with the department, from participating as a subcontractor under a contract with the department, and from participating as a supplier of materials or equipment to be used under a contract with the department.(3) Department--The Texas Department of Transportation.(4) Entity--A contractor, subcontractor, supplier, grantee, subgrantee, provider, subprovider, governmental agency, local government, or other business or governmental organization with which the department does business. The term does not include the federal government or an agency of the federal government.(5) Executive director--The executive director of the Texas Department of Transportation.(6) Reprimand--A written warning issued by the department that documents an act or omission committed by an entity.(7) Sanction--A consequence imposed on an entity for failure to comply with this chapter including reprimand, prohibition against participation in a specified agreement, or debarment.(8) Suspension--Immediate, temporary disqualification of an entity or individual from entering into or attempting to enter into an agreement with the department, from participating as a subcontractor under a contract with the department, and from participating as a supplier of materials or equipment to be used under a contract with the department.</content><note type="source"><p>Source Note: The provisions of this §10.2 adopted to be effective January 6, 2011, 35 TexReg 11951; amended to be effective September 19, 2018, 43 TexReg 6000.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c10/scA/s10.3"><num value="10.3">§10.3</num><heading>Delivery of Written Notice, Disclosures, or Requests to the Department</heading><content>For the purposes of this chapter, written notice, disclosures, or requests may be delivered to the department by:(1) sending the document by United States mail or by overnight delivery service to: Executive Director, Texas Department of Transportation, 125 East 11th Street, Austin, Texas 78701; or(2) hand delivering the document to: Executive Director, Texas Department of Transportation, 125 East 11th Street, Austin, Texas.</content><note type="source"><p>Source Note: The provisions of this §10.3 adopted to be effective January 6, 2011, 35 TexReg 11951.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c10/scA/s10.4"><num value="10.4">§10.4</num><heading>Act of Individual Imputed to Entity</heading><content>For the purposes of this chapter, an act of or omission by a person on behalf of an entity that seriously and directly affects the entity's responsibility to the department is considered to be an act or omission of the entity.</content><note type="source"><p>Source Note: The provisions of this §10.4 adopted to be effective January 6, 2011, 35 TexReg 11951.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c10/scA/s10.5"><num value="10.5">§10.5</num><heading>Benefit</heading><content>(a) Except as provided by subsection (b) of this section, a benefit, for the purposes of this chapter, is anything that is reasonably regarded as financial gain or financial advantage, including a benefit to another person in whose welfare the beneficiary has a direct and substantial interest, regardless of whether the donor is reimbursed. Examples are cash, loans, meals, lodging, services, tickets, door prizes, free entry to entertainment or sporting events, transportation, hunting or fishing trips, or discounts on goods or services.(b) The following are not benefits for the purposes of this chapter:(1) a token item, other than cash, a check, stock, bond, or similar item, that is distributed generally as a normal means of advertising and that does not exceed an estimated value of $25;(2) an honorarium in the form of a meal served at an official, department-related event such as a conference, workshop, seminar, or symposium; or(3) reimbursement for food, travel, or lodging to an event described by paragraph (2) of this subsection in an amount allowable under department policy if the recipient were to seek reimbursement from the department, or a greater amount if preapproved by the executive director.</content><note type="source"><p>Source Note: The provisions of this §10.5 adopted to be effective January 6, 2011, 35 TexReg 11951; amended to be effective September 14, 2016, 41 TexReg 7135; amended to be effective September 19, 2018, 43 TexReg 6000.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c10/scA/s10.6"><num value="10.6">§10.6</num><heading>Conflict of Interest</heading><content>(a) For the purposes of this chapter, a conflict of interest is a circumstance arising out of existing or past activities, business interests, contractual relationships, or organizational structure of an entity, in which:(1) the entity is or may be unable to give impartial assistance or advice to the department;(2) the entity's objectivity in performing the scope of work sought by the department is or may be otherwise impaired;(3) the entity has an unfair competitive advantage;(4) the entity's performance of services on behalf of the department or participation in an agreement with the department provides or may provide an unfair competitive advantage to a third party; or(5) there is a reasonable perception or appearance of impropriety or unfair competitive advantage benefiting the entity or a third party as a result of the entity's participation in an agreement with the department.(b) A for-profit entity, including a sole proprietorship, has a conflict of interest if:(1) an individual who held a position at or above the level of district engineer, division director, or office director solicits business from or attempts to influence a decision of the commission or department on behalf of that entity within one year after the date of the individual's separation from the department;(2) a former department employee whose last salary from the department was at or above the minimum amount prescribed for salary group A17 of the state position classification salary schedule performs work on behalf of that entity regarding a specific investigation, application, request for ruling or determination, contract, claim, or judicial or other proceeding in which the former employee participated, whether through personal involvement or within the former employee's official responsibility, while employed by the department; or(3) the entity employs a former department employee who participated on behalf of the department in the procurement or negotiation of an awarded contract, for which the entity was the prime contractor or an equity partner of the prime contractor, unless more than two years have elapsed since the date that the contract was signed.(c) Subsection (b)(1) of this section does not apply to a position that is designated as an interim position.(d) For the purpose of subsection (b)(2) of this section, an individual participated in a matter if the individual made a decision or recommendation on the matter, approved, disapproved, or gave advice on the matter, conducted an investigation related to the matter, or took a similar action related to the matter.(e) Before submitting a bid or undertaking some other interaction with the department, a for-profit entity or a former employee of the department to whom subsection (b) of this section applies may request from the department a determination of whether the interaction would constitute a conflict of interest under subsection (b) of this section. Such a request must be made in writing and must contain a concise explanation of the relevant facts. The department will not respond to a request under this subsection before consulting with the General Counsel Division. The department will issue a written determination in response to a valid request made under this subsection as soon as practicable.(f) Subsection (b)(3) of this section applies only to an entity's employment of an individual whose participation in a procurement or contract negotiation occurs on or after September 1, 2015. Subsection (b)(3) does not apply to a contract awarded under a low-bid process.(g) For purposes of subsection (b)(3) of this section, a person participated in the procurement or negotiation of an awarded contract only if the person played an active part in the original procurement or contract negotiation with the prime contractor or equity partner of the prime contractor by personally approving or performing a step that was materially relevant in the original procurement or contract negotiation process. An action is materially relevant if the action provides an opportunity to steer a contract toward a particular vendor, or involves the negotiation of price or contract terms with a vendor or the approval of negotiated prices or terms. Handling administrative matters and performing ministerial duties are not materially relevant steps.</content><note type="source"><p>Source Note: The provisions of this §10.6 adopted to be effective January 6, 2011, 35 TexReg 11951; amended to be effective May 17, 2012, 37 TexReg 3606; amended to be effective February 20, 2014, 39 TexReg 999; amended to be effective November 19, 2015, 40 TexReg 8032; amended to be effective December 6, 2017, 42 TexReg 6815.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c10/scA/s10.7"><num value="10.7">§10.7</num><heading>Delegation of Authority</heading><content>The executive director may delegate any authority provided to the executive director under this chapter, unless otherwise provided, to the deputy executive director of the department.</content><note type="source"><p>Source Note: The provisions of this §10.7 adopted to be effective January 6, 2011, 35 TexReg 11951; amended to be effective September 19, 2018, 43 TexReg 6000.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c10/scB"><num value="B">SUBCHAPTER B</num><heading>OTHER ENTITIES' INTERNAL ETHICS AND COMPLIANCE PROCEDURES</heading><section identifier="/us/state/tx/tac/t43/p1/c10/scB/s10.51"><num value="10.51">§10.51</num><heading>Internal Ethics and Compliance Program</heading><content>(a) Various sections of this title require an entity to adopt and enforce an internal ethics and compliance program. To comply with that requirement, the entity must certify to the department that the entity:(1) has adopted an internal ethics and compliance program that:(A) is designed to detect and prevent violations of the law, including regulations, and ethical standards applicable to the entity or its officers or employees; and(B) satisfies all requirements of this section; and(2) enforces compliance with its internal ethics and compliance program.(b) An entity's internal ethics and compliance program must be in writing and must provide compliance standards and procedures that the entity's employees and agents are expected to follow. At a minimum, the program must provide that:(1) high-level personnel are responsible for oversight of compliance with the standards and procedures;(2) appropriate care is being taken to avoid the delegation of substantial discretionary authority to individuals whom the entity knows, or should know, have a propensity to engage in illegal activities;(3) compliance standards and procedures are effectively communicated to all of the entity's employees, including members of the governing board if the entity has a governing board, by requiring them to participate in periodic training in ethics and in the requirements of the program;(4) compliance standards and procedures are effectively communicated to all of the entity's agents;(5) reasonable steps are being taken to achieve compliance with the compliance standards and procedures by:(A) using monitoring and auditing systems that are designed to reasonably detect noncompliance; and(B) providing and publicizing a system for the entity's employees and agents to report suspected noncompliance without fear of retaliation;(6) consistent enforcement of compliance standards and procedures is administered through appropriate disciplinary mechanisms;(7) reasonable steps are being taken to respond appropriately to detected offenses and to prevent future similar offenses; and(8) the entity has a written employee code of conduct that, at a minimum, addresses:(A) record retention;(B) fraud;(C) equal opportunity employment;(D) sexual harassment and sexual misconduct;(E) conflicts of interest;(F) personal use of the entity's property; and(G) gifts and honoraria.(c) The department may, at its discretion, request that the entity provide the department with written evidence of the entity's internal ethics and compliance program.</content><note type="source"><p>Source Note: The provisions of this §10.51 adopted to be effective January 6, 2011, 35 TexReg 11951; amended to be effective July 20, 2011, 36 TexReg 4573.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c10/scC"><num value="C">SUBCHAPTER C</num><heading>REQUIRED CONDUCT BY ENTITIES DOING BUSINESS WITH THE DEPARTMENT</heading><section identifier="/us/state/tx/tac/t43/p1/c10/scC/s10.101"><num value="10.101">§10.101</num><heading>Required Conduct</heading><content>(a) An entity that does business with the department is required to:(1) disclose to the department in writing the existence of a conflict of interest involving an agreement between the entity and the department and adequately remedy the conflict:(A) before the effective date of the agreement; or(B) if the conflict of interest arises after the effective date of the agreement, within five working days after the date that the entity knows or should have known of the conflict;(2) adhere to all civil and criminal laws related to business;(3) maintain good standing with the comptroller, other state agencies, states, and agencies of the federal government with which the entity has had a business relationship;(4) notify the department in writing within five working days after the date that the entity knows or should have known of the existence of, and must adequately address:(A) a conviction of a bidding crime, a plea of guilty or nolo contendere to a charge of a bidding crime, a civil judgment for a bidding crime, or a public admission to a bidding crime, whether made by the entity or by an individual or other entity that acted on behalf of the entity;(B) a conviction of an offense indicating a lack of moral or ethical integrity, such as bribery or payment of kickbacks or secret rebates to agents of a governmental entity, if the offense reflects on the business practices of the entity;(C) debarment of the entity by the comptroller, another state agency, another state, or an agency of the federal government for a ground related to business integrity; or(D) any behavior of the entity that seriously and directly affects the entity's responsibility to the department and that is also a violation of:(i) the law; or(ii) the department's rules that relate to the entity's dealing with the department.(5) disclose to the department any discovery of credible evidence of:(A) a violation of a law involving fraud, bribery, or conflict of interest in connection with the award or performance of its contract;(B) a violation of this section on the part of a subcontractor or subprovider on its contract; or(C) an overpayment on its contract;(6) cooperate fully with the department or any other government agency responsible for audits, investigations, or corrective actions;(7) prohibit its employees who have access to non-public information by reason of performance on a department contract from using the information for personal gain; and(8) refrain from committing acts indicating a lack of moral or ethical integrity and reflecting on the business practices of the entity, including:(A) offering, giving, or agreeing to give a benefit to a member of the commission or to a department employee;(B) submitting an offer below anticipated costs, with an expectation of either increasing the contract amount after award or recovering incurred losses by receiving follow-on contracts at artificially high prices;(C) disclosing or receiving bid or proposal information in exchange for a thing of value or to give anyone a competitive advantage in the award of a department contract;(D) retaliating against an employee for disclosing information to the department relating to a violation of law related to a department contract, including the competition for or negotiation of a contract;(E) knowingly entering into a subcontract with an entity that is suspended or debarred by the department;(F) making false or misleading statements in order to obtain a benefit, including falsifying or permitting misrepresentation of its qualifications; or(G) disposing of waste in an unauthorized area.(b) In this section, "bidding crime" means an act prohibited by state or federal law that involves fraud, conspiracy, collusion, perjury, or material misrepresentation with respect to a public contract, regardless of where the act was committed.</content><note type="source"><p>Source Note: The provisions of this §10.101 adopted to be effective January 6, 2011, 35 TexReg 11951; amended to be effective September 19, 2018, 43 TexReg 6000.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c10/scC/s10.102"><num value="10.102">§10.102</num><heading>Consequences of Violation</heading><content>In addition to the imposition of sanctions under Subchapter F of this chapter (relating to Sanctions For Ethical Violations By Entities Doing Business With The Department), the department may disqualify an entity with a conflict of interest described by §10.6(b) of this chapter (relating to Conflict of Interest) from participating in a contract to which the conflict applies, or may deny payment for work performed by the former department employee under the contract. The department may not disqualify or deny payment to an entity under this section if the department has issued to the entity a written determination under §10.6 of this chapter that the facts that are the basis of the disqualification or denial do not constitute a conflict of interest.</content><note type="source"><p>Source Note: The provisions of this §10.102 adopted to be effective January 6, 2011, 35 TexReg 11951; amended to be effective May 17, 2012, 37 TexReg 3606; amended to be effective September 19, 2018, 43 TexReg 6000.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c10/scF"><num value="F">SUBCHAPTER F</num><heading>SANCTIONS AND SUSPENSION FOR ETHICAL VIOLATIONS BY ENTITIES DOING BUSINESS WITH THE DEPARTMENT</heading><section identifier="/us/state/tx/tac/t43/p1/c10/scF/s10.251"><num value="10.251">§10.251</num><heading>Application of Subchapter</heading><content>The sanctions provided by this subchapter are in addition to other actions and remedies available to the department.</content><note type="source"><p>Source Note: The provisions of this §10.251 adopted to be effective January 6, 2011, 35 TexReg 11951; amended to be effective September 19, 2018, 43 TexReg 6000.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c10/scF/s10.252"><num value="10.252">§10.252</num><heading>Imposition of Sanctions</heading><content>(a) The executive director may impose a sanction on an entity for a violation of §10.101 of this chapter (relating to Required Conduct).(b) The imposition of a sanction on an entity does not affect the entity's obligations under an agreement with the department or limit the department's remedies under the agreement.</content><note type="source"><p>Source Note: The provisions of this §10.252 adopted to be effective January 6, 2011, 35 TexReg 11951; amended to be effective September 19, 2018, 43 TexReg 6000.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c10/scF/s10.253"><num value="10.253">§10.253</num><heading>Notice of Sanction; Suspension</heading><content>(a) If the executive director imposes a sanction under this subchapter, the department will notify the entity by certified mail within five working days after the date of the executive director's decision. The notice will:(1) state the sanction and the time period of the sanction, if applicable;(2) summarize the facts and circumstances underlying the sanction;(3) explain how the sanction was selected;(4) if applicable, inform the entity of the imposition of a suspension under subsection (b) of this section; and(5) state that the entity may appeal the sanction in accordance with §10.256 of this subchapter (relating to Appeal of Sanction, Final Order, and Effective Date).(b) The executive director, concurrent with the delivery of the notice of a sanction other than a reprimand, may suspend an entity without a prior hearing. Before imposing a suspension, the executive director will consider all relevant circumstances, including the severity and willfulness of the conduct, the likelihood of immediate harm to the public, and whether there has been a pattern of inappropriate conduct. The suspension terminates when a final order on the sanction is issued by the executive director under §10.256 of this subchapter (relating to Appeal of Sanction, Final Order, and Effect Date).</content><note type="source"><p>Source Note: The provisions of this §10.253 adopted to be effective January 6, 2011, 35 TexReg 11951; amended to be effective September 19, 2018, 43 TexReg 6000.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c10/scF/s10.254"><num value="10.254">§10.254</num><heading>Available Sanctions</heading><content>(a) The available sanctions, in order of increasing severity, are:(1) a reprimand;(2) prohibition from participating in a specified agreement, whether the agreement was previously awarded or to be awarded or whether funds under the agreement have been paid or are to be paid;(3) a limit on the contract amount or amount of funds that may be awarded or paid to the entity for a period of not more than 60 months; or(4) debarment of the entity for a period of not more than 60 months.(b) Relating to an engineering, architectural, or surveying service contract, the executive director may remove a person's or a firm's precertification provided under §9.33 of this title (relating to Precertification), and prohibit the person or firm from reapplying for precertification for the period set by the executive director, if a ground for removal of precertification under §10.101 of this chapter (relating to Required Conduct) exists.(c) Before imposing a sanction, the executive director will consider the following factors:(1) the seriousness and willfulness of the act or omission;(2) whether the entity has committed similar acts or omissions and if so, when those acts or omissions were committed;(3) whether the entity, or a third party on behalf of the entity, has fully compensated the department for any damages suffered by the department as a result of the entity's acts or omissions; and(4) any mitigating factors.(d) For the purposes of subsection (c)(4) of this section, the following are mitigating factors:(1) the entity's adoption and enforcement of an internal ethics and compliance program that satisfies the requirements of §10.51 of this chapter (relating to Internal Ethics and Compliance Program);(2) the entity's cooperation with the department in the investigation of ethical violations, including the provision of a full and complete account of the entity's involvement; or(3) the entity's disassociation from individuals and firms that have been involved in the ethical violation.(e) The removal a person's or a firm's precertification under subsection (b) of this section does not prevent that person or firm from participating in agreements with the department in a capacity that does not require precertification unless the executive director imposes a suspension under §10.253(b) of this subchapter (relating to Notice of Sanction; Suspension).(f) If an entity commits multiple violations arising out of separate occurrences, the executive director may impose multiple sanctions.</content><note type="source"><p>Source Note: The provisions of this §10.254 adopted to be effective January 6, 2011, 35 TexReg 11951; amended to be effective September 19, 2018, 43 TexReg 6000.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c10/scF/s10.256"><num value="10.256">§10.256</num><heading>Appeal of Sanction, Final Order, and Effective Date</heading><content>(a) An entity may appeal a sanction, other than a reprimand, unless the sanction was ordered or directed by the federal government, by delivering to the executive director a written notice of appeal within 10 working days after the effective date of the sanction as specified in the notice of sanction. If the notice of appeal is timely delivered, the entity will be given the opportunity for an informal hearing before the executive director. The executive director will set a time for the hearing at the executive director's earliest convenience. The executive director will set time the maximum allowed for oral presentations and the procedure for written documents to be presented by the entity. After the hearing the executive director will make a determination on the imposition of the sanction and may impose a lesser sanction. The executive director will notify the entity in writing within 5 working days of the executive director's determination on the appeal.(b) If the entity is dissatisfied with the determination of the executive director, the entity may request an administrative hearing under §1.21 et seq. of this title (relating to Procedures in Contested Cases). To be effective the request must be received by the executive director within 10 working days after the date that the executive director mails the notification of determination under subsection (a) of this section.(c) The proposal for decision will be presented to the commission at a regularly scheduled open meeting. The commission may consider oral presentations. The commission will make a determination based on the proposal for decision. The commission's determination on the proposal for decision will be adopted by minute order and reflected in the minutes of the meeting.(d) If an appeal to the executive director or by an administrative hearing, as appropriate, is not timely requested under this section, the executive director will issue a final order imposing the sanction when the deadline for requesting an appeal has passed. If an appeal is timely requested, the executive director will issue a final order based on one of the following:(1) the executive director's determination under subsection (a) of this section; or(2) the commission's determination under subsection (c) of this section.(e) If the only sanction being imposed is a reprimand, the entity may appeal the reprimand by delivering to the executive director a written notice of appeal and written documentation disputing the reprimand within 10 working days after the effective date of the sanction as specified in the notice of sanction. The executive director will make the determination on an appeal and issue a final order under this subsection. A final order issued under this subsection is not subject to judicial review, except as required by law.(f) A sanction is effective on the later of the date specified in the notice of sanction under §10.253 of this subchapter (relating to Notice of Sanction; Suspension) or the date of, or specified in, the final order issued by the executive director under this section.(g) Subsections (b) - (e) of this section do not apply to the sanction of removal a person's or a firm's precertification under §10.254(b) of this subchapter (relating to Available Sanctions). The executive director may not delegate authority provided under subsection (a) of this section for the appeal of removal a person's or a firm's precertification under subsection (b) of this section.</content><note type="source"><p>Source Note: The provisions of this §10.256 adopted to be effective January 6, 2011, 35 TexReg 11951; amended to be effective September 19, 2018, 43 TexReg 6000.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c10/scF/s10.257"><num value="10.257">§10.257</num><heading>Lessening or Removal of Sanction</heading><content>(a) An entity may request the reduction or removal of a sanction imposed under this subchapter by delivering to the executive director the request in writing and written documentation in support of the request demonstrating changes in the circumstances that were described in the notice of the sanction under §10.253 of this subchapter (relating to Notice of Sanction; Suspension).(b) The executive director, at the executive director's sole discretion, may decide to reduce or remove the sanction. The executive director will send a written notice of the decision to the entity.(c) A request may not be made under this section during the first year of the sanction, beginning on the effective date of the sanction, as determined under §10.256(f) of this subchapter (relating to Appeal of Sanction, Final Order, and Effective Date). After that period, the executive director will consider not more than one request under this section during any 12-month period.</content><note type="source"><p>Source Note: The provisions of this §10.257 adopted to be effective January 6, 2011, 35 TexReg 11951; amended to be effective September 19, 2018, 43 TexReg 6000.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p1/c11"><num value="11">CHAPTER 11</num><heading>DESIGN</heading><subchapter identifier="/us/state/tx/tac/t43/p1/c11/scA"><num value="A">SUBCHAPTER A</num><heading>EMBANKMENTS OR PAVEMENT STRUCTURES</heading><section identifier="/us/state/tx/tac/t43/p1/c11/scA/s11.11"><num value="11.11">§11.11</num><heading>Sources of Materials</heading><content>(a) Local material deposits may be secured by easement or through agreements which permit the department or its contractor to remove earthen material for use in highway construction or maintenance activities.(b) Easements, rather than option agreements, usually are used in areas where a genuine shortage of acceptable materials exists or is anticipated. The consideration for the easement must be a fixed sum based on the current royalty price in the area and a specified quantity of material, and a unit price for additional quantities. The fixed sum is determined after thorough investigation reveals the quantity of acceptable material available and deductions for loss have been made. If the material consists of borrow, the cost of borrow materials may not exceed the normal land value of the material source.(c) Material option agreements with individual owners, estate administrators, corporate officials, or state, county, or city officials may be used to secure permission for the state or its contractor to remove local material deposits. If the material consists of borrow, the cost of borrow may not exceed the normal land value of the material source.</content><note type="source"><p>Source Note: The provisions of this §11.11 adopted to be effective January 1, 1976.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c11/scB"><num value="B">SUBCHAPTER B</num><heading>HIGHWAY RIGHTS-OF-WAY</heading><section identifier="/us/state/tx/tac/t43/p1/c11/scB/s11.21"><num value="11.21">§11.21</num><heading>Multiple Use of Highway Right-of-Way</heading><content>(a) In the development of highway projects, the department usually initially acquires all right-of-way needed for full scale project development; however, certain areas of this right-of-way may not be used in the initial stage of construction. These areas and areas beneath elevated structures may be made available for other public functions such as parking areas, recreational areas, public parks, immigration control, law enforcement functions, special gas tax inspections, or other such legal inspections.(b) The public use of specified areas beneath overhead structures or certain other areas of right-of-way will be considered by the department when local governmental authorities or other state or federal agencies indicate a willingness to cooperate in the development of the same. Each proposed instance of joint use will be considered on its individual merits and the respective responsibilities of the department and other parties involved shall be fixed by agreement.(c) Departmental approval for the joint use of highway right-of-way may be given only when it is considered to be in the public's interest and it has been determined from engineering and traffic investigations that it would not damage the highway facilities, impair safety, impede highway maintenance, or in any way restrict the operation of the freeway or highway facility.(d) The department will generally be responsible for the site grading, construction of access driveways, paving, installation of curbs, or other such traffic control devices, lighting, basic landscaping, and screening to ensure its aesthetic balance with the overall highway design and the environment of the area. The maintenance and operation of the entire joint use facility will be the responsibility of local governmental agencies. The installation of parking meters, gates, shelters, play equipment, or other appurtenances will generally be the financial responsibility of the local governmental agency.</content><note type="source"><p>Source Note: The provisions of this §11.21 adopted to be effective January 1, 1976.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c11/scC"><num value="C">SUBCHAPTER C</num><heading>ACCESS CONNECTIONS TO STATE HIGHWAYS</heading><section identifier="/us/state/tx/tac/t43/p1/c11/scC/s11.50"><num value="11.50">§11.50</num><heading>Access Management</heading><content>(a) Purpose and need. Access management is an engineering and planning method of balancing the needs of mobility and safety on a highway system with the needs of access to adjacent land uses. Access management is one method of preserving the substantial public investment in the ground transportation system by preserving the roadway level of service. Further, access management can significantly enhance traffic safety by reducing traffic accidents, personal injury, and property damage. It has been noted that access management practices can promote a more coordinated intergovernmental, long term approach to land use and transportation decisions in the context of quality of life, economic development, livable communities, and public safety. Given the benefits to the ground transportation system and public safety, it is the intention of the department to promote the use of access management on the state highway system.(b) Applicability. This subchapter applies to all new access connections constructed on highways on the state highway system. It also applies to existing access connections that are:(1) reconstructed or otherwise modified as part of a department project; or(2) located on the right of way and are reconstructed, relocated, enlarged, or otherwise modified by the permittee or property owner.</content><note type="source"><p>Source Note: The provisions of this §11.50 adopted to be effective October 16, 2003, 28 TexReg 8958; amended to be effective October 19, 2006, 31 TexReg 8574; amended to be effective February 18, 2010, 35 TexReg 1297.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scC/s11.51"><num value="11.51">§11.51</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Access connection--Facility, such as a driveway, street, road, or highway, that connects to a highway on the state highway system for entry or exit.(2) Access denial line--The boundary line between the right-of-way of a state highway and adjacent property where the department owns all rights of access from the adjacent property to the state highway.(3) Access management standards--The standards, criteria, and specifications prescribed in Chapter 2, Access Management Standards, of the department's Access Management Manual that govern the location, design, construction, and maintenance of access connections.(4) Commercial driveway--An entrance to or exit from a multifamily residential dwelling or a commercial, business, or similar type establishment.(5) Commission--The Texas Transportation Commission.(6) Construction of an access connection--The installation, construction, reconstruction, relocation, enlargement, or other material modification of an access connection.(7) Department--The Texas Department of Transportation.(8) Design division--The administrative office of the department responsible for the development of engineering design guidance and oversight of projects developed on the state highway system.(9) Development--The new construction or the enlargement of any exterior dimension of a building, structure, or improvement.(10) Director--The chief administrative officer in charge of the design division.(11) District--One of the 25 geographic districts into which the department is divided.(12) District engineer--The chief administrative officer in charge of the district in which the access connection is located, or that officer's designee.(13) Eligible county--A county with a population of 3.3 million or more or a county adjacent to a county with a population of 3.3 million or more.(14) Engineering study--An appropriate level of analysis as determined by the department, which may include a traffic impact analysis, that determines the expected impact that permitting access will have on mobility, safety, and the efficient operation of the state highway system.(15) Executive director--The executive director of the department, or a designee not below the level of deputy executive director.(16) Local access management plan--A plan or guideline in a formally adopted rule or ordinance that is related to the application of access management within the municipality's or eligible county's jurisdiction.(17) Local access road--A local public street or road, generally one parallel to a highway on the state highway system to which access for businesses or properties located between the highway and the local access road is provided as a substitute for access to the highway. A local access road may also be called a lateral road or reverse frontage road, depending on individual location and application. (18) Permit--Authorization for entry to or exit from a state highway and adjacent real property, issued by the department under Transportation Code, Chapter 203.(19) Permittee--A real property owner, or the owner's authorized representative, who receives an access connection permit from the department to construct or modify an access connection from the owner's property to a highway on the state highway system.(20) Platted access point--An access connection identified in a plat or replat of a subdivision of real property properly recorded in the county clerk's office in accordance with Property Code, §12.002. (21) Private driveway--An entrance to or exit from a single-family residential dwelling, farm, or ranch for the exclusive use and benefit of the permittee.(22) Public driveway--An approach from a publicly maintained street, road, or highway.(23) Regionally significant highway--A highway functionally classified as a minor arterial or higher.(24) Traffic impact analysis--A traffic engineering study to the level of analysis determined by the department that determines the potential current and future traffic impacts of a proposed traffic generator and is signed, sealed, and dated by an engineer licensed to practice in the state of Texas.(25) Undeveloped property--The real property identified in a plat or replat of a subdivision properly recorded in the county clerk's office in accordance with Property Code, §12.002, on which development has not commenced.</content><note type="source"><p>Source Note: The provisions of this §11.51 adopted to be effective October 16, 2003, 28 TexReg 8958; amended to be effective October 19, 2006, 31 TexReg 8574; amended to be effective February 18, 2010, 35 TexReg 1297; amended to be effective February 19, 2025, 50 TexReg 865.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scC/s11.52"><num value="11.52">§11.52</num><heading>Access Connection Facilities</heading><content>(a) Permit.(1) A permit is required before:(A) the construction of an access connection; or(B) a material change in the use of a permittee's real property, traffic volume for the access connection, or vehicle types using the access connection, that would result in the application of more stringent requirements under the department's access management standards than are applicable to the existing approved access connection.(2) The permit provides for a definite understanding as to the location and manner in which the access connection will be constructed and maintained.(3) No term or condition of a permit will be construed to grant, convey, or extinguish an interest in real property held by either the state or a permittee.(b) Permit requirements.(1) The permit will include the terms, conditions, and attachments for driveway design and location plans that are prescribed by the director and the district engineer in order to ensure compliance with the access management standards and to protect and preserve the state highway system and the safety, health, and welfare of its use by the traveling public.(2) Permits will be issued in accordance with the access management standards and all applicable state and federal laws, including rules and regulations. Access connection spacing, materials, geometrics, accessibility, and other design specifications will be considered, as well as the impact on drainage and hydraulics, utility location or relocation, and the environment that will result from the requested construction of an access connection.(3) An engineering study may be required to assist in the permit evaluation process.(4) The district engineer, or the district engineer's designee, will approve each request for a permit that conforms with the standards listed in the department's Access Management Manual and all applicable laws. A decision denying a request for access to a specific location must be in writing, include the reasons for the denial, and be signed by the district engineer.(c) Access Management Standards. Chapter 2, Access Management Standards, of the department's Access Management Manual, governs the standards, criteria, and specifications for the location, design, construction, and maintenance of all access connections. Chapter 2, Access Management Standards is available online at the Texas Department of Transportation web site. That chapter may be periodically revised and updated by the department, provided that the revisions and updates are first approved by written order of the commission. The web site will reflect each change approved by the commission and the changes will be applicable to applications for permits filed after the effective date of such a change.(d) Design.(1) The design for the construction of an access connection is the responsibility of the permittee. The design must be accomplished in a manner and to the standards described in subsection (b) of this section.(2) The location and manner in which the construction of an access connection will be performed within the right of way must be reviewed and approved by the department.(e) Variance.(1) A variance to any requirement contained in the access management standards may be granted if justified in accordance with this subsection and approved by the district engineer, or the district engineer's designee.(2) A request for a variance will be considered only if the property owner or its authorized representative demonstrates that undue hardship or unusual conditions provide justification and alternate measures can be prescribed in keeping with the intent of this subchapter. All requests for a variance must be fully documented with design data and other pertinent information.(3) For each request for a variance, the property owner, or the owner's authorized representative, must clearly demonstrate that:(A) a significant negative impact to the owner's real property or its use will likely result from the denial of its request for the variance, including:(i) the loss of reasonable access to the property; or(ii) undue hardship on a business located on the property; or(B) an unusual condition affecting the property exists that was not caused by the property owner and justifies the request for the variance.(4) When the property owner or its authorized representative satisfies the requirement of paragraph (3) of this subsection, the requested variance will be approved unless the district engineer determines that the location, design, and construction of the requested access connection will:(A) adversely affect the safety, design, construction, mobility, efficient operation, or maintenance of the highway; or(B) likely impair the ability of the state or the department to receive funds for highway construction or maintenance from the federal government.(5) Reasonable conditions for approval of a variance, including a requirement for alternate measures, may be prescribed by the department in order to minimize any adverse impact on the safety, design, construction, mobility, efficient operation, or maintenance of the highway.(f) Platted access points.(1) Platted access points that are located on undeveloped property are subject to the access management standards in effect on the date that the subdivision plat or replat was properly recorded if:(A) development of the tract of real property to be served by the permit commences, and the request for a permit at a platted access point location is submitted to the department, before the fifth anniversary of the date that the subdivision plat or replat was properly recorded; and(B) any material changes to the design of the highway facility in the vicinity of the platted access points after the date that the subdivision plat or replat was properly recorded do not significantly impact traffic patterns to the extent that the platted access points present a threat to public safety.(2) Platted access points that are located on undeveloped property to which paragraph (1) of this subsection do not apply, are subject to the access management standards in effect on the date that the request for the permit is submitted to the department.(g) Remodeled business. The remodeling or demolition and rebuilding of a business structure or improvement on a permittee's real property do not require a new permit or the application of more stringent access management standards than are applicable to the approved access connection, unless the district engineer makes an affirmative finding that the remodeled or rebuilt structure or improvement will significantly impact traffic patterns to the extent that the existing access connection location presents a threat to public safety. The finding of significant impact and threat to public safety must be in writing and include the reasons for the finding. To the extent this subsection conflicts with the requirement in subsection (a) of this section for a new permit related to a material change in the use of the permitted real property, this subsection controls.</content><note type="source"><p>Source Note: The provisions of this §11.52 adopted to be effective February 18, 2010, 35 TexReg 1297; amended to be effective February 19, 2020, 45 TexReg 1043.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scC/s11.54"><num value="11.54">§11.54</num><heading>Construction and Maintenance of Access Connection Facilities</heading><content>(a) Cost for commercial and private driveways. For commercial and private driveways, the cost of materials, installation, construction, reconstruction, relocation, enlargement, modification, and maintenance shall be the responsibility of the permittee, except as otherwise provided in subsection (c) of this section.(b) Cost for public driveways. For public driveways, the cost of materials, installation, construction, reconstruction, relocation, enlargement, and modification shall be the responsibility of the permittee, except as otherwise provided in subsection (c) of this section. The department shall maintain all portions of public driveways that lie within the state highway right of way and that connect to highways that are the maintenance responsibility of the department.(c) Reconstruction by department.(1) Any existing access connections that are destroyed or removed in the construction or reconstruction of a section of highway will be reestablished by the department at the expense of the state to the extent necessary to provide reasonable access. (2) If the department determines that the proposed construction or reconstruction of a section of highway will permanently alter permitted access to or from a state highway at an adjacent property owner's existing driveway location, the department will:(A) provide the property owner with written notice of the highway project before the 60th day preceding the date construction of the highway project begins; and(B) at the expense of the state, reinstate the pre-existing access to the most practicable extent possible after due consideration of the impact on highway safety, mobility, and efficient operation, and of any changes to traffic patterns that are likely to result from the highway construction or reconstruction.(3) Paragraphs (1) and (2) of this subsection do not apply to an access connection that is located across an access denial line for which a permit is issued under §11.59 of this subchapter (relating to Permit of Access at Locations Where the Department Owns the Access). The department may, but is not required to, reconstruct such an access connection. (d) Inspection. The department may inspect the construction of an access connection at the time the work is being performed and at any time after the work is completed. The permittee or the permittee's heirs, successors, and assigns shall make the changes or repairs that the district engineer reasonably determines are necessary to bring the access connection into compliance with terms and conditions of the permit. A decision to require a change or repair will be in writing, describe the actions to be performed, and provide a reasonable period for compliance.(e) Drainage and safety. The department may undertake actions deemed necessary to correct drainage or safety problems related to existing or new access connection facilities.</content><note type="source"><p>Source Note: The provisions of this §11.54 adopted to be effective October 16, 2003, 28 TexReg 8958; amended to be effective February 18, 2010, 35 TexReg 1297; amended to be effective February 19, 2025, 50 TexReg 865.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scC/s11.55"><num value="11.55">§11.55</num><heading>Appeal Process</heading><content>(a) A property owner or its authorized representative, as the applicant, may file a petition of appeal to contest:(1) a requirement for a change or repair under §11.54(d) of this subchapter (relating to Inspection);(2) the denial of a request for a variance under §11.52(e) of this subchapter (relating to Variance);(3) a finding of significant impact and threat to public safety under §11.52(g) of this subchapter (relating to Remodeled business); or(4) the denial of a request for a driveway permit under §11.52(b) of this subchapter (relating to Permit requirements).(b) A district engineer's denial of a request for an access permit under §11.59 of this subchapter (relating to Permit of Access at Locations Where the Department Owns the Access) is final and a property owner has no right to appeal the denial.(c) The petition must be filed with the director before the 31st day after the date written notice of the denial, requirement, or finding is received by the applicant.(d) The petition must:(1) be in writing;(2) completely and succinctly state the grounds for appeal and its factual basis; and(3) include sufficient factual documentation, such as drawings, surveys, or photographs, to establish the merits of the appeal.(e) The applicant has the burden of demonstrating that the department incorrectly applied its access connection requirements to the applicable facts.(f) For a petition that satisfies the requirements of this section, the director will issue, before the 91st day after the date of receipt of the petition, a written decision approving or disapproving the appeal and, on issuance, immediately send the decision to the applicant. If a written decision is not issued within the 90-day period, the appeal is considered to be approved and the request granted, subject to:(1) purchase of access rights in accordance with §11.60 of this subchapter (relating to Sale of Access at Locations Where the Department Controls the Access) if the applicant has no existing right of access; and(2) consent of the Federal Highway Administration in accordance with 23 C.F.R. §710.401 if the requested access connection is on an interstate highway.(g) To appeal a decision issued under subsection (f) of this section, the applicant must submit its written petition of appeal to the executive director before the 31st day after the date that written notice of the decision is received. The petition must satisfy the requirements of subsection (d) of this section. The executive director will issue, before the 31st day after the date of receipt of the petition, a written decision approving or disapproving the appeal.(h) To appeal a decision of the executive director issued under subsection (g) of this section, the applicant must submit to the executive director its written petition of appeal to a board of variance, before the 31st day after the date that the executive director's decision under subsection (g) of this section is received. On receipt of the petition, the procedure set out in this subsection applies.(1) The executive director will appoint a board of variance composed of at least three persons, each of whom is not below the level of department division director, office director, or district engineer and was not involved in the original decision to deny the applicant's request. A majority of the members of the board constitutes a quorum.(2) The board of variance will meet and consider the appeal. Before the 10th day preceding the date of the meeting, the board will give the applicant notice of the time and place of the meeting and afford the applicant an opportunity to attend and present evidence regarding the appeal.(3) Before the 11th day after the date of the meeting, the board of variance will issue a final written decision approving or disapproving the appeal.</content><note type="source"><p>Source Note: The provisions of this §11.55 adopted to be effective February 18, 2010, 35 TexReg 1297; amended to be effective February 19, 2025, 50 TexReg 865.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scC/s11.56"><num value="11.56">§11.56</num><heading>Delegation of Access Permit Authority to Municipalities or Eligible Counties</heading><content>(a) Intent. Except as provided in §11.58 of this subchapter (relating to Connection with Regionally Significant Highway), a municipality or eligible county may include highways on the state highway system in its local access management plan. The intent of the department is to allow municipalities or eligible counties, upon request, to assume responsibility for issuing permits for access connections to state highways within the jurisdiction of the municipality or eligible county under a local access management plan when the municipality or eligible county has the ability to issue permits.(b) Precedence. A local access management plan supersedes an order of the commission under Transportation Code, §203.031(a)(2) or (4) to the extent that they conflict, unless:(1) the Federal Highway Administration notifies the department that enforcement of the local access management plan would impair the ability of the state or the department to receive funds for highway construction or maintenance from the federal government; or(2) the department owns the access rights.(c) Application. The department will apply a local access management plan under this section when the municipality or eligible county provides its local access management plan to the department with an indication of its desire that the plan be applied within its jurisdiction and an implementation date. The department will implement any subsequent changes to the local access management plan when the municipality or eligible county submits the changes to the department with a proposed implementation date for the changes.(d) Local access permitting function. A municipality or eligible county that desires to undertake the access permitting process on highways on the state highway system shall submit its proposed permitting procedures to the department. If the department determines that the proposed procedures adequately address the requirements in subsection (f) of this section, it will transfer to the municipality or eligible county the access permitting function within the municipality's or eligible county's jurisdiction. The municipality or eligible county shall submit to the department a copy of each approved access permit on the state highway system within ten working days of its approval.(e) Assumption of permitting function optional. Municipalities or eligible counties are not required to take over the access permitting function for state highways within their jurisdiction.(f) Engineering. Granting access location permit authority to municipalities or eligible counties does not preclude the need to properly engineer access locations. Any impacts to drainage or hydraulics on highways on the state highway system resulting from access connections must be coordinated with the department prior to any local access approval. Issuance of access permits by a municipality or eligible county must address driveway geometrics, utility location or relocation, compliance with the Americans with Disabilities Act (ADA) and Texas Accessibility Standards (TAS), and all other applicable state and federal laws, rules, and regulations. In addition, each access connection must comply with the applicable environmental review requirements in Chapter 2 of this title (relating to Environmental Policy).</content><note type="source"><p>Source Note: The provisions of this §11.56 adopted to be effective February 18, 2010, 35 TexReg 1297.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scC/s11.57"><num value="11.57">§11.57</num><heading>Local Access Roads</heading><content>(a) If local access roads are necessary to restore circulation or to resolve a landlocked condition on a remaining parcel of land, or will otherwise benefit the state highway system, local access roads may be included in a department project on a standard participation basis as established in Appendix A of §15.55 of this title (relating to Construction Cost Participation).(b) Except as provided in §11.58 of this subchapter (relating to Connection with Regionally Significant Highway), executive director approval must be obtained prior to the department entering into any agreements to provide local access roads in conjunction with a department project.(c) Local access roads will not be considered service projects as defined in §15.56 of this title (relating to Local Financing of Highway Improvement Projects on the State Highway System).</content><note type="source"><p>Source Note: The provisions of this §11.57 adopted to be effective February 18, 2010, 35 TexReg 1297.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scC/s11.58"><num value="11.58">§11.58</num><heading>Connection with Regionally Significant Highway</heading><content>(a) Purpose. A public or private entity may not connect a regionally significant highway to a segment of the state highway system without the approval of the commission. This section prescribes the procedure by which the commission will consider approval.(b) Request. An entity seeking approval to connect a regionally significant highway to a segment of the state highway system must send a written request to the executive director. The request must include a detailed schematic indicating the location of the connection, including an overpass, underpass, intersection, or interchange, and the location of the logical termini of the connection.(c) Approval criteria. The commission will approve a request made under this section if:(1) the highway to be connected is identified in a conforming Transportation Improvement Program;(2) the requestor agrees to design and construct the connection in compliance with subsection (d) of this section; and(3) the requestor satisfies the applicable requirements under subsection (e) of this section concerning public involvement and a study of the social, environmental, and economic impacts of the connection.(d) Design and construction. The requestor shall design and construct the connection in accordance with the schematics required by subsection (b) of this section and §26.33(d), (f), and (g) - (l) of this title (relating to Design and Construction), which for the purposes of this subsection apply as if the requestor were a regional mobility authority.(e) Environmental review and public involvement.(1) This subsection applies only to construction activities and utility adjustments related to the proposed connection that are:(A) within rights of way owned by the department; and(B) if a terminus of the proposed connection is outside of the department's right of way, between the terminus and the department's right of way.(2) This subsection does not apply to a project developed by a county or other local governmental entity under Transportation Code, §228.011 or §228.0111, or that the department funds solely with money held in a project subaccount created under Transportation Code, §228.012.(3) The requestor, as project sponsor, shall perform and document all environmental studies, environmental compliance, and public involvement activities arising as a result of construction of the proposed access connection. The requestor will not perform its environmental compliance and public involvement activities under memoranda of agreement, programmatic agreements, or other environmental agreements between the department and a state or federal agency. The requestor shall apply for, obtain, and comply with all permits and approvals required by state and federal law, and shall establish all commitments needed to address public, state agency, and federal agency concerns.(4) The requestor's environmental documents, environmental studies, environmental compliance, and public involvement activities must comply with the requirements of Chapter 2, Subchapter A, of this title (relating to Environmental Review and Public Involvement for Transportation Projects).(5) The requestor shall submit the environmental documentation, including supporting documents, to the department, and request the department review the environmental documentation. The department shall review the environmental documentation and supporting documents and shall determine whether or not the requestor has completed agency coordination relating to the environmental impact of the proposed access connection, and has responded to public comments relating to the connection. If the department determines that the requestor has not demonstrated completion of agency coordination or response to public comment related to the connection, the requestor shall provide any additional documentation requested by the department. The commission will not grant access connection until the requestor satisfies the requirements of this paragraph.(6) If Federal Highway Administration (FHWA) regulations specify that a project or connection requires FHWA approval, the requestor shall perform all environmental and public involvement activities as the project sponsor, and shall produce an environmental document that meets FHWA requirements.</content><note type="source"><p>Source Note: The provisions of this §11.58 adopted to be effective February 18, 2010, 35 TexReg 1297.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scC/s11.59"><num value="11.59">§11.59</num><heading>Permit of Access at Locations Where the Department Owns the Access</heading><content>(a) Access permit requests. A request for a permit for a new access connection across an access denial line will be considered under this section. The district engineer, in the district engineer's sole discretion, may grant or deny a permit request under this section.(b) Access permit request contents. A permit request must include:(1) a description of the development or undeveloped property for which access is being requested;(2) an engineering study that is acceptable to the department and that shows the safety of the requested access; (3) all information required under §11.52(b) of this subchapter (relating to Access Connection Facilities); and(4) any additional information relating to the requested permit that is requested by the department.(c) Evaluation by the department. A permit request under this section must comply with all other access requirements of this subchapter. (d) Access permit fees. If a permit request is approved, the requester must pay a permit fee in accordance with this subsection before the department will issue an access permit. (1) The fee for a permit for a private driveway access is $250.(2) The fee for a permit for a commercial driveway access is based on the most recent unadjusted market value of the land and improvements on the benefitted property determined by the local appraisal district established under Tax Code, Chapter 6, Subchapter A. The fee is:Attached Graphic(e) No rights of access conveyed. The issuance of a permit under this section does not convey any property right, including a right of access to the highway facility. The department, in its sole discretion, may revoke a permit issued under this section on its determination that the access location is needed for a highway purpose. Such a revocation may not be the basis for any claim of a constitutional taking of property for the loss of access to the highway facility.</content><note type="source"><p>Source Note: The provisions of this §11.59 adopted to be effective February 19, 2025, 50 TexReg 865.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scC/s11.60"><num value="11.60">§11.60</num><heading>Sale of Access at Locations Where the Department Owns the Access</heading><content>(a) Access purchase request. A request to purchase a new access connection to a highway across an access denial line will be considered under this section. The request must include an engineering study acceptable to the department.(b) Determination. The commission will make the final determination concerning the sale of access rights under this section. The commission may consider the findings of the engineering study, the mobility and safety of the highway system, and any other relevant factors.(c) Sale procedure. A sale of access rights under this section is subject to Transportation Code, Chapter 202, Subchapter B. Access points approved by the commission under this section will be specifically described by a metes and bounds property description.</content><note type="source"><p>Source Note: The provisions of this §11.60 adopted to be effective February 19, 2025, 50 TexReg 865.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c11/scD"><num value="D">SUBCHAPTER D</num><heading>GREEN RIBBON PROJECTS</heading><section identifier="/us/state/tx/tac/t43/p1/c11/scD/s11.100"><num value="11.100">§11.100</num><heading>Purpose and Scope</heading><content>Transportation corridors in urban areas strive to meet the aesthetic needs of local citizens just as they strive to meet the transportation needs of all Texans. To that end, the Texas Department of Transportation will coordinate the resources of the state, of local governments, and of private entities. Whenever feasible, urban corridors will be designed and landscaped to be both attractive and functional.</content><note type="source"><p>Source Note: The provisions of this §11.100 adopted to be effective May 16, 2002, 27 TexReg 4174.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scD/s11.101"><num value="11.101">§11.101</num><heading>Green Ribbon Master Plans</heading><content>(a) A district will establish a Green Ribbon Master Plan that includes each city with a population over 100,000.(b) The Green Ribbon Master Plan for each area will be developed in active consultation with local governments and interested private parties.(c) The Green Ribbon Master Plan for each area will provide conceptual guidance to transportation planners and designers for all phases of design and development. It will incorporate aesthetic, historical, social, and environmental considerations into planning and design decisions in a way that maintains the safety and functionality of transportation systems, including the need for efficient and economical maintenance.</content><note type="source"><p>Source Note: The provisions of this §11.101 adopted to be effective May 16, 2002, 27 TexReg 4174.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scD/s11.102"><num value="11.102">§11.102</num><heading>Implementation</heading><content>In an urban area included in a Green Ribbon Master Plan, a district will consider that Green Ribbon Master Plan in the planning and design of all transportation projects.</content><note type="source"><p>Source Note: The provisions of this §11.102 adopted to be effective May 16, 2002, 27 TexReg 4174.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scD/s11.103"><num value="11.103">§11.103</num><heading>Participation by Other Entities</heading><content>(a) A local government may provide money, property, or services to a project that is consistent with a Green Ribbon Master Plan. The local government must execute a written agreement specifying its responsibilities and any conditions.(b) A private party may donate money, property, or services to a project that is consistent with a Green Ribbon Master Plan. Participation by a private party must be in accordance with §1.500 et seq. of this title (relating to Donations) or with §2.61 et seq. of this title (relating to Public Participation Programs).</content><note type="source"><p>Source Note: The provisions of this §11.103 adopted to be effective May 16, 2002, 27 TexReg 4174.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c11/scF"><num value="F">SUBCHAPTER F</num><heading>TRANSPORTATION ALTERNATIVES PROGRAM</heading><section identifier="/us/state/tx/tac/t43/p1/c11/scF/s11.300"><num value="11.300">§11.300</num><heading>Purpose</heading><content>The sections under this subchapter prescribe the policies and procedures for the implementation and administration of the Transportation Alternatives Program (TAP), as authorized by 23 U. S. C. §213.</content><note type="source"><p>Source Note: The provisions of this §11.300 adopted to be effective October 12, 2014, 39 TexReg 7938.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scF/s11.301"><num value="11.301">§11.301</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--Texas Transportation Commission.(2) Department--Texas Department of Transportation.(3) Executive director--The executive director of the Texas Department of Transportation or his or her designee.(4) FHWA--Federal Highway Administration.(5) Local agreement--An agreement between the project sponsor and the department which includes a commitment for the required local funding, describes the total scope and course of project activities, and outlines the responsibilities and duties of the participants.(6) Metropolitan planning organization (MPO)--The organization or policy board of an organization created and designated under 23 U. S. C. §134, and 49 U. S. C. §5303, to make transportation planning decisions for the metropolitan planning area and carry out the metropolitan planning process.(7) Project--An undertaking to implement or construct an eligible activity at a specific location or locations, or, if the context so implies, the particular activity so implemented or constructed.(8) Project sponsor--An eligible entity as described by 23 U. S. C. §213, that nominates a particular project for consideration, exercises jurisdiction over the geographic area in which that project is located, and commits to the project's development, implementation, construction, maintenance, management, and financing.(9) State--The State of Texas or any of its political subdivisions.(10) Statewide Transportation Improvement Program (STIP)--A four year short-range program developed by the department as a compilation of all metropolitan transportation improvement programs, together with rural transportation improvement programs, that include recommendations from rural planning organizations and department districts for the areas of the state that are outside of the boundaries of a metropolitan planning organization, including transportation between cities.(11) Surface transportation system--An interconnected surface transportation network for moving people and goods using various combinations of transportation modes.(12) Transportation Improvement Program (TIP)--A short-range program developed by each metropolitan planning organization in cooperation with the department and public transportation operators that covers a four-year period and contains a prioritized listing of all projects proposed for federal funding and regionally significant projects proposed for state, federal, and local funding in a metropolitan area.</content><note type="source"><p>Source Note: The provisions of this §11.301 adopted to be effective October 12, 2014, 39 TexReg 7938.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scF/s11.302"><num value="11.302">§11.302</num><heading>Program Administration</heading><content>(a) The state is required to suballocate, in accordance with 23 U.S.C. §213, a part of its TAP apportionment to urbanized areas with populations over 200,000.(b) Each MPO serving an urbanized area with a population over 200,000 shall implement the TAP for the award of funds suballocated within such area. Section 11.303 of this subchapter applies only to the use of those TAP funds.(c) For TAP funds not covered by subsection (b) of this section, the commission will select projects through a competitive process administered by the department. Sections 11.304 - 11.317 of this subchapter apply only to the use of those TAP funds.</content><note type="source"><p>Source Note: The provisions of this §11.302 adopted to be effective October 12, 2014, 39 TexReg 7938.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scF/s11.303"><num value="11.303">§11.303</num><heading>Project Selection and Implementation by MPOs</heading><content>(a) This section applies only to an MPO serving an urbanized area with a population over 200,000 and the award of TAP funds suballocated for such an urbanized area.(b) The MPO, in consultation with the department, shall develop a competitive process to allow project sponsors to submit applications for funding under the TAP.(c) The MPO will coordinate determinations regarding project eligibility, subject to audit by the FHWA.(d) Projects, or substantially similar projects, submitted during a program call administered by the MPO are not eligible for consideration under a program call administered by the department.(e) Following the conclusion of the competitive process, the MPO shall provide to the department a list of all projects submitted during the program call on which the selected projects are identified, and immediately shall begin the process required to include the selected projects in its TIP.(f) The MPO will conduct project selection and implementation in accordance with all applicable federal and state laws and regulations.(g) If a project is located on state right-of-way, the project sponsor is responsible for securing a land-use permit from the department prior to construction.</content><note type="source"><p>Source Note: The provisions of this §11.303 adopted to be effective October 12, 2014, 39 TexReg 7938.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scF/s11.304"><num value="11.304">§11.304</num><heading>Eligible Activities</heading><content>(a) During a program call administered by the department, TAP funds may be awarded for any of the following activities:(1) construction of on-road and off-road trail facilities for pedestrians, bicyclists, and other non-motorized forms of transportation, including sidewalks, bicycle infrastructure, pedestrian and bicycle signals, traffic calming techniques, lighting and other safety-related infrastructure, and transportation projects to achieve compliance with the Americans with Disabilities Act of 1990;(2) construction of infrastructure-related projects and systems that will provide safe routes for non-drivers, including children, older adults, and individuals with disabilities to access daily needs;(3) conversion and use of abandoned railroad corridors for trails for pedestrians, bicyclists, or other non-motorized transportation users; and(4) construction of infrastructure-related projects to improve the ability of students to walk and bicycle to school, including sidewalk improvements, traffic calming and speed reduction improvements, pedestrian and bicycle crossing improvements, on-street bicycle facilities, off-street bicycle and pedestrian facilities, secure bicycle parking facilities, and traffic diversion improvements in the vicinity of schools.(b) A project that will require the acquisition of real property through the exercise of eminent domain or condemnation is not eligible for participation in the TAP.(c) Whether proposed as an independent project or as an element of a larger transportation project, the project must be limited to a logical unit of work and be constructible as an independent project.</content><note type="source"><p>Source Note: The provisions of this §11.304 adopted to be effective October 12, 2014, 39 TexReg 7938.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scF/s11.305"><num value="11.305">§11.305</num><heading>Allowable Costs</heading><content>(a) Costs are allowable only if they are necessary construction-related project expenditures that are eligible for reimbursement under applicable statutes and regulations.(b) The costs of preliminary engineering (including planning, design, and plans, specifications, and estimates) are not allowable costs.(c) Eligible pre-construction costs incurred by the department are reimbursable. All other pre-construction costs are the responsibility of the project sponsor.(d) Expenditures for routine operation and maintenance are not allowable costs unless specifically allowed under the individual federal category for which the project qualifies.</content><note type="source"><p>Source Note: The provisions of this §11.305 adopted to be effective October 12, 2014, 39 TexReg 7938.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scF/s11.306"><num value="11.306">§11.306</num><heading>Local Funding Match</heading><content>(a) The local funding match is a cash match or in-kind contribution provided by or through the project sponsor. An in-kind contribution may only include actual and documented pre-construction or construction-related costs previously incurred by the project sponsor that are otherwise eligible for reimbursement under applicable statutes and regulations.(b) Funds from other federal programs may be used as a local funding match only when specifically authorized by federal law or regulation.(c) Donated services may not be accepted as a local funding match, but may be used to reduce the overall cost of the project.(d) If a project selected by the commission is administered by the department, the project sponsor must provide the cash portion of the local funding match prior to the commencement of project activities.</content><note type="source"><p>Source Note: The provisions of this §11.306 adopted to be effective October 12, 2014, 39 TexReg 7938.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scF/s11.307"><num value="11.307">§11.307</num><heading>Call for Nominations</heading><content>(a) The department will issue a notice of a call for nominations by publication in the Texas Register. (b) The notice will include information regarding the content of the nomination package, the procedures applicable to the program call, and the specific evaluation criteria to be used during the project selection process. (c) All or a portion of a call for nominations may be designated for a particular eligible activity.</content><note type="source"><p>Source Note: The provisions of this §11.307 adopted to be effective October 12, 2014, 39 TexReg 7938.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scF/s11.308"><num value="11.308">§11.308</num><heading>Nomination Package</heading><content>(a) To nominate a project during a program call administered by the department, the project sponsor must submit its nomination in the form prescribed by the department. (b) The nomination package must present persuasive evidence of support for the proposed project from the communities in which it would be implemented and include a commitment to provide a local funding match of at least 20% of the allowable costs of the project. (c) If the project is located in a county that has been certified by the commission as an economically disadvantaged county, the nomination package may include a request for adjustment to the minimum local funding match requirement. For those projects in which the commission is authorized by law to provide state cost participation, the department may adjust the amount required by subsection (b) of this section. (d) A complete nomination package must be received by the department no later than the specified deadline published in the Texas Register. A nomination package that fails to include any of the items specified in this subsection or the respective program call is considered to be incomplete and will not be considered for funding.</content><note type="source"><p>Source Note: The provisions of this §11.308 adopted to be effective October 12, 2014, 39 TexReg 7938.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scF/s11.309"><num value="11.309">§11.309</num><heading>Project Screening and Evaluation</heading><content>(a) The executive director will appoint a project evaluation committee consisting of department staff to review, evaluate, and make recommendations on projects submitted during a program call administered by the department.(b) The committee will screen each project to determine whether it is eligible for funding under applicable federal and state law and whether it meets technical standards established by applicable law and accepted professional practice.(c) The committee will evaluate the benefits of each project that is determined to be eligible under subsection (b) of this section or §11.310 based on the specific selection criteria set forth in the program call.(d) The committee will provide project selection recommendations and supporting documentation to the director of the division of the department responsible for administering the TAP.(e) The director of the division responsible for administering the TAP will provide a list of recommended projects to the commission for consideration.</content><note type="source"><p>Source Note: The provisions of this §11.309 adopted to be effective October 12, 2014, 39 TexReg 7938.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scF/s11.310"><num value="11.310">§11.310</num><heading>Finding of Ineligibility; Request for Reconsideration</heading><content>(a) The department will by certified mail, return receipt requested, notify the project sponsor of each ineligible activity proposed and the reason for the determination.(b) A request for reconsideration of a finding of ineligibility may be initiated only by a letter from the nominating entity to the executive director setting forth reasons in support of a finding of eligibility. The letter requesting reconsideration must be received by the department no later than 15 days after the nominating entity received the department's notification, as established by the return receipt.(c) The determination of the executive director in response to the request for reconsideration is final.</content><note type="source"><p>Source Note: The provisions of this §11.310 adopted to be effective October 12, 2014, 39 TexReg 7938.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scF/s11.311"><num value="11.311">§11.311</num><heading>Selection of Projects by the Commission</heading><content>(a) The commission, by written order, will select projects for funding under the TAP based on:(1) recommendations from the director of the division responsible for administering the TAP;(2) the potential benefit to the state of the project; and(3) whether the project enhances the surface transportation system.(b) The commission is not bound by project selection recommendations provided by the department.(c) The department will notify the project sponsor of the selection.(d) The commission will specify a fixed amount of TAP funds for each project. Project costs in excess of this amount are the responsibility of the project sponsor. The project sponsor may seek additional funds through the TAP in subsequent program calls.(e) A project that is not selected must be resubmitted to receive consideration during subsequent program calls.</content><note type="source"><p>Source Note: The provisions of this §11.311 adopted to be effective October 12, 2014, 39 TexReg 7938.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scF/s11.312"><num value="11.312">§11.312</num><heading>Inclusion of Selected Projects in Planning Documents</heading><content>(a) If a project selected by the commission is to be implemented in a metropolitan area, the department will request that the MPO for that area immediately begin the process required to include the selected project in its TIP.(b) The department will also immediately begin the process required to include all selected projects in the STIP.</content><note type="source"><p>Source Note: The provisions of this §11.312 adopted to be effective October 12, 2014, 39 TexReg 7938.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scF/s11.313"><num value="11.313">§11.313</num><heading>Project Implementation</heading><content>(a) The project sponsor will implement or arrange for implementation of each project selected by the commission in accordance with statutory requisites and contracting procedures applicable to the type and character of the project. The department, in its sole discretion, may agree to implement a project on behalf of a project sponsor.(b) All projects must be developed:(1) to current standards and specifications established or recognized by the federal government and the department; and(2) in accordance with this subchapter.(c) All project sponsors must enter into a local agreement and comply with all federal and state procedures and requirements applicable to development of federal-aid transportation projects.(d) Before funding any construction activities, the department will ensure that required opportunities for public involvement have been provided and proper environmental documentation has been completed.(e) Funds from other federal programs may be used only when specifically authorized by federal law or regulation. Private cash donations may be accepted if authorized by law.(f) Any change in the scope of work that was specified in the nomination package and approved by the commission must have the advance written approval of the executive director.(g) The department is responsible for the inspection and final acceptance of all projects selected by the commission and for certification of project completion.(h) If the project sponsor does not complete the project as originally approved by the commission, the department may seek reimbursement of the expended federal funds from the sponsor.</content><note type="source"><p>Source Note: The provisions of this §11.313 adopted to be effective October 12, 2014, 39 TexReg 7938.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scF/s11.314"><num value="11.314">§11.314</num><heading>Payment of Costs</heading><content>(a) The department will submit all requests for reimbursement of allowable costs to FHWA.(b) A project sponsor must use the forms and procedures specified by the department to request reimbursement of allowable costs incurred.(c) For locally administered projects, the entire project cost is borne by the project sponsor until reimbursement can be obtained from FHWA for eligible activities.(d) Costs incurred prior to the inclusion of the project in the STIP, execution of the local agreement, or prior to federal and state approval and authorization to proceed are not eligible for reimbursement.</content><note type="source"><p>Source Note: The provisions of this §11.314 adopted to be effective October 12, 2014, 39 TexReg 7938.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scF/s11.315"><num value="11.315">§11.315</num><heading>Elimination of Project from the TAP</heading><content>(a) A project will be eliminated from participation in the TAP if at any time prior to the execution of the local agreement, the governing body of a municipality or county in which project activities are proposed, by resolution, order, or other official action, notifies the department of its opposition to the project.(b) The executive director may eliminate a project or a portion of a project from participation in the TAP if at any time:(1) the project sponsor fails to satisfy any requirement of this subchapter;(2) implementation of the project would involve significant deviation from the activities as proposed in the nomination package and approved by the commission;(3) the project sponsor withdraws from participation in the project;(4) a construction contract has not been awarded or construction has not been initiated within three years after the date that the commission selected the project;(5) a local agreement is not executed within one year after the date that the commission selected the project; or(6) the executive director determines that federal funding may be lost because the project has not been implemented or completed.</content><note type="source"><p>Source Note: The provisions of this §11.315 adopted to be effective October 12, 2014, 39 TexReg 7938.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scF/s11.316"><num value="11.316">§11.316</num><heading>Project Transfer; Approval of Change</heading><content>(a) If at any time legislative action requires transfer of the project to another entity, the department may terminate the existing project agreement and execute an agreement with the responsible entity.(b) A transfer under subsection (a) of this section must receive approval from FHWA.</content><note type="source"><p>Source Note: The provisions of this §11.316 adopted to be effective October 12, 2014, 39 TexReg 7938.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scF/s11.317"><num value="11.317">§11.317</num><heading>Maintenance and Operation; Dedication for Public Use</heading><content>(a) A project selected by the commission shall be maintained and operated for the purpose for which it was approved and funded and for a period of time that is commensurate with the amount of federal investment in the project.(b) A project selected by the commission shall be dedicated for public use for the greater of:(1) a period that is commensurate with the amount of federal investment in the project; or(2) 10 years, if the amount of federal investment in the project is $1 million or less, or 20 years, if the amount of federal investment is more than $1 million.(c) If at any time the project sponsor can no longer maintain and operate the project for its intended purpose, the sponsor will return the federal share used for the project in accordance with current deferral recapture procedures.</content><note type="source"><p>Source Note: The provisions of this §11.317 adopted to be effective October 12, 2014, 39 TexReg 7938.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c11/scG"><num value="G">SUBCHAPTER G</num><heading>TRANSPORTATION ALTERNATIVES SET-ASIDE PROGRAM</heading><section identifier="/us/state/tx/tac/t43/p1/c11/scG/s11.400"><num value="11.400">§11.400</num><heading>Purpose</heading><content>The sections under this subchapter prescribe the policies and procedures for the implementation and administration of the Transportation Alternatives Set-Aside Program (TA Set-Aside Program), as authorized by 23 U.S.C. §133(h).</content><note type="source"><p>Source Note: The provisions of this §11.400 adopted to be effective January 4, 2017, 41 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scG/s11.401"><num value="11.401">§11.401</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--Texas Transportation Commission.(2) Department--Texas Department of Transportation.(3) Executive director--The executive director of the Texas Department of Transportation or the executive director's designee.(4) FHWA--Federal Highway Administration.(5) Local agreement--An agreement between the project sponsor and the department which includes a commitment for the required local funding, describes the total scope and course of project activities, and outlines the responsibilities and duties of the participants.(6) Metropolitan planning organization (MPO)--The organization or policy board of an organization created and designated under 23 U.S.C. §134, and 49 U.S.C. §5303, to make transportation planning decisions for the metropolitan planning area and carry out the metropolitan planning process.(7) Project--An undertaking to implement or construct an eligible activity at a specific location or locations, or, if the context so implies, the particular activity so implemented or constructed.(8) Project sponsor--An eligible entity, as defined by 23 U.S.C. §133(h), that nominates a particular project for consideration and commits to the project's development, implementation, management, and financing.(9) State--The State of Texas or any of its political subdivisions.(10) Statewide Transportation Improvement Program (STIP)--A four-year short-range program developed by the department as a compilation of all metropolitan transportation improvement programs, together with rural transportation improvement programs, that include recommendations from rural planning organizations and department districts for the areas of the state that are outside of the boundaries of a metropolitan planning organization, including transportation between cities.(11) Surface transportation system--An interconnected surface transportation network for moving people and goods using various combinations of transportation modes.(12) Transportation Improvement Program (TIP)--A short-range program developed by each metropolitan planning organization in cooperation with the department and public transportation operators that covers a four-year period and contains a prioritized listing of all projects proposed for federal funding and regionally significant projects proposed for state, federal, and local funding in a metropolitan area.</content><note type="source"><p>Source Note: The provisions of this §11.401 adopted to be effective January 4, 2017, 41 TexReg 10664; amended to be effective November 16, 2022, 47 TexReg 7561.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scG/s11.402"><num value="11.402">§11.402</num><heading>Program Administration</heading><content>(a) The state is required to suballocate, in accordance with 23 U.S.C. §133(h), a part of its TA Set-Aside apportionment to urbanized areas with populations over 200,000.(b) Each MPO serving an urbanized area with a population over 200,000 shall implement the TA Set-Aside Program for the award of funds suballocated within that area. Section 11.403 of this subchapter (relating to Project Selection by MPOs) applies only to the use of those TA Set-Aside funds.(c) For TA Set-Aside funds not covered by subsection (b) of this section, the commission will select projects through a competitive process administered by the department. Sections 11.404 - 11.417 of this subchapter apply only to the use of those TA Set-Aside funds.</content><note type="source"><p>Source Note: The provisions of this §11.402 adopted to be effective January 4, 2017, 41 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scG/s11.403"><num value="11.403">§11.403</num><heading>Project Selection by MPOs</heading><content>(a) This section applies only to an MPO serving an urbanized area with a population over 200,000 and the award of TA Set-Aside funds suballocated for such an urbanized area.(b) The MPO, in consultation with the department, shall develop a competitive process to allow project sponsors to submit project applications for funding that achieve the objectives of the TA Set-Aside Program.(c) The MPO shall coordinate determinations regarding project eligibility, subject to audit by the FHWA.(d) The MPO, in consultation with the department, shall conduct project selection in accordance with all applicable federal and state laws and regulations.(e) The MPO, in consultation with the department, shall include the department's direct state costs for oversight of preliminary engineering and construction in TA Set-Aside project awards.(f) Following the conclusion of the competitive process, the MPO shall provide to the department a list of all projects submitted during the program call on which the selected projects are identified, and immediately shall begin the process required to include the selected projects in its TIP.(g) The project sponsor shall conduct project implementation in accordance with all applicable federal and state laws and regulations.(h) If a project is located on state right-of-way, the project sponsor is responsible for securing a land-use permit from the department prior to construction.(i) A project sponsor requesting an adjustment to the minimum local funding match requirements based on the county's status as an economically disadvantaged county is required to obtain written authorization from the department, in the form prescribed by the department, and must include the form with the application submitted to the MPO. If an adjustment is granted, the adjustment percentage in effect for the county at the time the application is submitted to the MPO will be used. The county must remain eligible for the adjustment until the date the project sponsor enters into the local agreement.(j) Projects, or substantially similar projects, submitted during a program call administered by the MPO are not eligible for consideration under a concurrent program call administered by the department.(k) Not later than November 15 of each year, the MPO shall submit to the department a report that describes:(1) the number of project applications received by the MPO for the preceding federal fiscal year (the period of October 1 through September 30), including the aggregate cost of the projects for which applications are received and the types of projects to be carried out, expressed as percentages of the MPO's total apportionment for TA Set-Asides; and(2) the number of projects selected for funding by the MPO for the preceding federal fiscal year, including the aggregate cost and location of projects selected.</content><note type="source"><p>Source Note: The provisions of this §11.403 adopted to be effective January 4, 2017, 41 TexReg 10664; amended to be effective December 30, 2020, 45 TexReg 9576.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scG/s11.404"><num value="11.404">§11.404</num><heading>Eligible Activities</heading><content>(a) During a program call administered by the department, TA Set-Aside funds may be awarded for any of the following activities:(1) construction of on-road and off-road trail facilities for pedestrians, bicyclists, and other non-motorized forms of transportation, including sidewalks, bicycle infrastructure, pedestrian and bicycle signals, traffic calming techniques, lighting and other safety-related infrastructure, and transportation projects to achieve compliance with the Americans with Disabilities Act of 1990;(2) construction of infrastructure-related projects and systems that will provide safe routes for non-drivers, including children, older adults, and individuals with disabilities to access daily needs;(3) conversion and use of abandoned railroad corridors for trails for pedestrians, bicyclists, or other non-motorized transportation users;(4) construction of boulevards and other roadways that are located primarily in the right of way of former interstate system highways or other divided highways and that improve access for bicyclists, pedestrians, and transit users but do not reduce on-system roadway capacity unless such a reduction has the prior approval of the department;(5) construction of infrastructure-related projects to improve the ability of students to walk and bicycle to school, including sidewalk improvements, traffic calming and speed reduction improvements, pedestrian and bicycle crossing improvements, on-street bicycle facilities, off-street bicycle and pedestrian facilities, secure bicycle parking facilities, and traffic diversion improvements in the vicinity of schools;(6) implementation of non-infrastructure activities that are designed to encourage walking and bicycling to school, including public awareness campaigns and outreach to the news media and community leaders, traffic education and enforcement in the vicinity of schools, student education on bicycle and pedestrian safety, health, and environment, and funding for training volunteers for and managers of safe routes to school programs; and(7) activities in furtherance of a vulnerable road user safety assessment, as defined in 23 U.S.C. §148.(b) Planning and design activities related to any of the activities described in subsection (a) of this section are eligible for TA Set-Aside Program funds.(c) A project that will require the acquisition of real property through the exercise of eminent domain or condemnation is not eligible for participation in the TA Set-Aside Program.(d) Whether proposed as an independent project or as an element of a larger transportation project, the project must be limited to a logical unit of work and be constructible as an independent project.</content><note type="source"><p>Source Note: The provisions of this §11.404 adopted to be effective January 4, 2017, 41 TexReg 10664; amended to be effective December 30, 2020, 45 TexReg 9576; amended to be effective November 16, 2022, 47 TexReg 7561.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scG/s11.405"><num value="11.405">§11.405</num><heading>Allowable Costs</heading><content>(a) Costs are allowable only if they are necessary expenditures for an activity for which TA Set-Aside Program funds may be used under §11.404 of this subchapter (relating to Eligible Activities) and are eligible for reimbursement under applicable statutes and regulations.(b) Costs incurred before the execution of the local agreement or before federal and state approval and authorization to proceed are not eligible for reimbursement.(c) The costs of preliminary engineering, including environmental studies and documentation, design, and plans, specifications, and estimates are allowable costs.(d) The costs of right-of-way acquisition incidental to construction activities, as specified in the program call materials or otherwise approved by the department, are allowable costs.(e) Eligible pre-construction costs incurred by the department are reimbursable.(f) All pre-construction costs are the responsibility of the project sponsor except as provided by this section.(g) Expenditures for routine operation and maintenance are not allowable costs unless specifically allowed under the individual federal category for which the project qualifies.</content><note type="source"><p>Source Note: The provisions of this §11.405 adopted to be effective January 4, 2017, 41 TexReg 10664; amended to be effective December 30, 2020, 45 TexReg 9576; amended to be effective November 16, 2022, 47 TexReg 7561.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scG/s11.406"><num value="11.406">§11.406</num><heading>Local Funding Match</heading><content>(a) Except as provided by this section, the local funding match must be cash provided by or through the project sponsor.(b) Transportation development credits, state funds, or both may be available to apply to all or part of the local funding match if the community:(1) is in an economically disadvantaged county, as defined in the Transportation Code, §222.053(a) or described by Transportation Code, §222.053(a-1); or(2) satisfies economic need criteria specified in the program call materials.(c) Funds from other federal programs may be used as a local funding match only when specifically authorized by federal law.(d) Donated services may not be accepted as a local funding match but may be used to reduce the overall cost of the project.(e) If a project selected by the commission is implemented by the department, the project sponsor must provide the local funding match prior to the commencement of project activities for each phase of work.(f) Projects selected by the commission will include the department's direct state costs for oversight of preliminary engineering and construction in TA Set-Aside project awards.</content><note type="source"><p>Source Note: The provisions of this §11.406 adopted to be effective January 4, 2017, 41 TexReg 10664; amended to be effective December 30, 2020, 45 TexReg 9576; amended to be effective November 16, 2022, 47 TexReg 7561.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scG/s11.407"><num value="11.407">§11.407</num><heading>Call for Nominations</heading><content>(a) The department will issue a notice of a call for project nominations by publication in the Texas Register. (b) The notice will include information regarding the content of the nomination package, the procedures applicable to the program call, and the specific evaluation criteria to be used during the project selection process.(c) All or a portion of a call for nominations may be designated for a particular eligible activity.</content><note type="source"><p>Source Note: The provisions of this §11.407 adopted to be effective January 4, 2017, 41 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scG/s11.408"><num value="11.408">§11.408</num><heading>Nomination Package</heading><content>(a) To nominate a project during a program call administered by the department, the project sponsor must submit its nomination in the form prescribed by the department.(b) The nomination package must present persuasive evidence of support for the proposed project from the communities in which it would be implemented and include a commitment to provide a local funding match of at least 20% of the allowable costs of the project, subject to §11.406 of this subchapter (relating to Local Funding Match).(c) If the project is located in a county that has been certified by the commission as an economically disadvantaged county, the nomination package may include a request for adjustment to the minimum local funding match requirement. For those projects in which the commission is authorized by law to provide state cost participation, the department may adjust the amount required by subsection (b) of this section. If an adjustment is granted, the adjustment percentage in effect for the county at the time the program call is initiated will be used. The county must remain eligible for the adjustment until the date the project sponsor enters into the local agreement.(d) A complete nomination package must be received by the department not later than the specified deadline published in the Texas Register. A nomination package that fails to include any of the items specified in this section or the respective program call is considered to be incomplete and will not be considered for funding. The department may request supplemental information as needed to conduct project screening and evaluation.</content><note type="source"><p>Source Note: The provisions of this §11.408 adopted to be effective January 4, 2017, 41 TexReg 10664; amended to be effective November 16, 2022, 47 TexReg 7561.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scG/s11.409"><num value="11.409">§11.409</num><heading>Project Screening and Evaluation</heading><content>(a) The executive director will appoint a project evaluation committee consisting of department staff to review, evaluate, and make recommendations on projects submitted during a program call administered by the department.(b) The committee will screen each project to determine whether it is eligible for funding under applicable federal and state law and whether it meets technical standards established by applicable law and accepted professional practice.(c) The committee will evaluate the benefits of each project that is determined to be eligible under subsection (b) of this section or §11.410 of this subchapter based on the specific selection criteria set forth in the program call.(d) The committee will provide project selection recommendations and supporting documentation to the director of the division responsible for administering the TA Set-Aside Program.(e) The director of the division responsible for administering the TA Set-Aside Program will review the recommendations and supporting documentation submitted by the committee and provide a final list of recommended projects to the commission for consideration.</content><note type="source"><p>Source Note: The provisions of this §11.409 adopted to be effective January 4, 2017, 41 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scG/s11.410"><num value="11.410">§11.410</num><heading>Finding of Ineligibility; Request for Reconsideration</heading><content>(a) The department will by certified mail, return receipt requested, notify the project sponsor of ineligible activities proposed and the reason for the determination.(b) A request for reconsideration of a finding of ineligibility may be initiated only by a letter from the nominating entity to the executive director setting forth reasons in support of a finding of eligibility. The letter requesting reconsideration must be received by the department not later than 15 days after the day that nominating entity received the department's notification, as established by the return receipt.(c) The determination of the executive director in response to the request for reconsideration is final.</content><note type="source"><p>Source Note: The provisions of this §11.410 adopted to be effective January 4, 2017, 41 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scG/s11.411"><num value="11.411">§11.411</num><heading>Selection of Projects by the Commission</heading><content>(a) The commission, by written order, will select projects for funding under the TA Set-Aside Program based on:(1) recommendations from the director of the division responsible for administering the TA Set-Aside Program;(2) the potential benefit to the state of the project; and(3) whether the project enhances the surface transportation system.(b) The commission is not bound by project selection recommendations provided by the department.(c) The department will notify the project sponsor of the selection.(d) The commission will award an amount of TA Set-Aside funds for each project. If program funds remain or are returned to the program due to cost underruns, the responsible division administering the program may apply those funds to project overruns based on:(1) justification of overruns;(2) timing of request;(3) availability of funds;(4) a reasonable expectation of the ability of the project sponsor to complete the project; and(5) if overrun requests exceed available funds, the criteria applicable to the use of state funds under §11.406(b) of this subchapter.(e) The project sponsor may seek additional funds through the TA Set-Aside Program in subsequent program calls.(f) A project that is not selected must be resubmitted to receive consideration during subsequent program calls.</content><note type="source"><p>Source Note: The provisions of this §11.411 adopted to be effective January 4, 2017, 41 TexReg 10664; amended to be effective December 30, 2020, 45 TexReg 9576.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scG/s11.412"><num value="11.412">§11.412</num><heading>Inclusion of Selected Projects in Planning Documents</heading><content>(a) If a project selected by the commission is to be implemented in a metropolitan area, the department will request that the MPO for that area immediately begin the process required to include the selected project in its TIP.(b) The department will also immediately begin the process required to include all selected projects in the STIP.</content><note type="source"><p>Source Note: The provisions of this §11.412 adopted to be effective January 4, 2017, 41 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scG/s11.413"><num value="11.413">§11.413</num><heading>Project Implementation</heading><content>(a) The project sponsor shall implement or arrange for implementation of each project selected by the commission in accordance with statutory requisites and contracting procedures applicable to the type and character of the project. The department, in its sole discretion, may agree to implement a project on behalf of a project sponsor.(b) All projects shall be developed:(1) to current standards and specifications established or recognized by the federal government and the department; and(2) in accordance with this subchapter.(c) All project sponsors must enter into a local agreement and shall comply with all federal and state procedures and requirements applicable to development of federal-aid transportation projects.(d) Before funding any construction activities, the department will ensure that required opportunities for public involvement have been provided and proper environmental documentation has been completed.(e) Funds from other federal programs may be used only if specifically authorized by federal law or regulation. Private cash donations may be accepted if authorized by law.(f) Any change in the scope of work that was specified in the nomination package and approved by the commission must have the advance written approval of the executive director.(g) The department is responsible for the inspection and final acceptance of all projects selected by the commission and for certification of project completion.(h) If the project sponsor does not complete the project as originally approved by the commission, the department may seek reimbursement of the expended federal funds from the sponsor.</content><note type="source"><p>Source Note: The provisions of this §11.413 adopted to be effective January 4, 2017, 41 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scG/s11.414"><num value="11.414">§11.414</num><heading>Payment of Costs</heading><content>(a) The department will submit all requests for reimbursement of allowable costs to FHWA.(b) A project sponsor must use the forms and procedures specified by the department to request reimbursement of allowable costs incurred.(c) For locally administered projects, the entire project cost is borne by the project sponsor until reimbursement can be obtained from FHWA for eligible activities.(d) Costs incurred prior to the inclusion of the project in the STIP, execution of the local agreement, or federal and state approval and authorization to proceed are not eligible for reimbursement.</content><note type="source"><p>Source Note: The provisions of this §11.414 adopted to be effective January 4, 2017, 41 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scG/s11.415"><num value="11.415">§11.415</num><heading>Elimination of Project from the TA Set-Aside Program</heading><content>(a) A project will be eliminated from participation in the TA Set-Aside Program if prior to the execution of the local agreement, the governing body of a municipality or county in which project activities are proposed, by resolution, order, or other official action, notifies the department of its opposition to the project.(b) The executive director may eliminate a project or a portion of a project from participation in the TA Set-Aside Program if:(1) the project sponsor fails to satisfy any requirement of this subchapter;(2) implementation of the project would involve significant deviation from the activities proposed in the nomination package and approved by the commission;(3) the project sponsor withdraws from participation in the project;(4) a construction contract has not been awarded or construction has not been initiated within three years after the date that the commission selected the project;(5) a local agreement is not executed within one year after the date that the commission selected the project; or(6) the executive director determines that federal funding may be lost because the project has not been implemented or completed.</content><note type="source"><p>Source Note: The provisions of this §11.415 adopted to be effective January 4, 2017, 41 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scG/s11.416"><num value="11.416">§11.416</num><heading>Project Transfer; Approval of Change</heading><content>(a) If legislative action requires transfer of the project to another entity, the department may terminate the existing project agreement and execute an agreement with the responsible entity.(b) A transfer under subsection (a) of this section must receive approval from FHWA.</content><note type="source"><p>Source Note: The provisions of this §11.416 adopted to be effective January 4, 2017, 41 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scG/s11.417"><num value="11.417">§11.417</num><heading>Maintenance and Operation; Dedication for Public Use</heading><content>(a) A project selected by the commission shall be maintained and operated for the purpose for which it was approved and funded and for a period of time that is commensurate with the amount of federal investment in the project.(b) A project selected by the commission shall be dedicated for public use for the greater of:(1) a period that is commensurate with the amount of federal investment in the project; or(2) 10 years, if the amount of federal investment in the project is $1 million or less, or 20 years, if the amount of federal investment is more than $1 million.(c) If at any time the project sponsor can no longer maintain and operate the project for its intended purpose, the sponsor shall return the federal share used for the project in accordance with current deferral recapture procedures.</content><note type="source"><p>Source Note: The provisions of this §11.417 adopted to be effective January 4, 2017, 41 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c11/scG/s11.418"><num value="11.418">§11.418</num><heading>Annual Reporting to FHWA</heading><content>The department will annually submit a report to FHWA that describes:(1) the total number of project applications received for the federal fiscal year (the period of October 1 through September 30), including the aggregate cost of the projects for which applications are received and the types of projects to be carried out, expressed as percentages of the total apportionment for TA Set-Asides; and(2) the total number of projects selected for funding for each federal fiscal year, including the aggregate cost and location of projects selected.</content><note type="source"><p>Source Note: The provisions of this §11.418 adopted to be effective January 4, 2017, 41 TexReg 10664.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p1/c12"><num value="12">CHAPTER 12</num><heading>PUBLIC DONATION AND PARTICIPATION PROGRAM</heading><subchapter identifier="/us/state/tx/tac/t43/p1/c12/scA"><num value="A">SUBCHAPTER A</num><heading>PUBLIC PARTICIPATION PROGRAMS</heading><section identifier="/us/state/tx/tac/t43/p1/c12/scA/s12.1"><num value="12.1">§12.1</num><heading>Purpose and Scope</heading><content>In order to increase public awareness of the maintenance needs of the state highway and airport systems, improve the aesthetics of state highways and airports, and maximize the use of taxpayer revenue, it is the policy of the Texas Transportation Commission to encourage public participation in the maintenance, landscaping, and beautification of the state highway and airport systems through the creation of programs whereby local governments and private entities may adopt sections of the state highway system or airports for litter pickup, routine maintenance, landscaping, and beautification. The sections under this subchapter govern the operation of these programs.</content><note type="source"><p>Source Note: The provisions of this §12.1 adopted to be effective December 8, 2011, 36 TexReg 8243.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c12/scA/s12.2"><num value="12.2">§12.2</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Adopt-a-Highway coordinator--A district employee responsible for coordinating the Adopt-a-Highway program within the district's counties.(2) Adopted section--A section of state highway right of way or an airport approved for adoption by a group.(3) Airport--A publicly-owned airport that is included in the Texas Airport System Plan (TASP).(4) Aviation Division--A division of the department.(5) Authorized representative--An individual with the authority to sign agreements for the group or donor.(6) Commission--The Texas Transportation Commission.(7) Department--The Texas Department of Transportation.(8) Design fee--Those engineering or project administration costs or expenses identified prior to the construction of a project.(9) District--One of the 25 geographical areas, managed by a district engineer, in which the department conducts its primary work activities.(10) District engineer--The chief executive officer in charge of a district, or his or her designee.(11) Donation--A contribution of anything of value given to the department.(12) Donor--The private business or civic organization that donates funds or services for the purpose of participating in the Landscape Cost Sharing or Adopt-a-Freeway Programs.(13) Family member--Any spouse, sibling, parent, stepparent, grandparent, child, stepchild, aunt, uncle or cousin.(14) Group--An entity that adopts a section of state highway right of way or an airport.(15) Highway landscaping--A project design intent which attempts to provide primarily for the installation of native, naturalized, or adapted plant material within the project limits.(16) Local government--A city or county.(17) Non-cash contributions--The agreed value of labor, equipment, material, or design services furnished by a local government or donor in support of the project.(18) Pedestrian landscaping--A project design intent which requires the installation of elements oriented primarily to pedestrian usage, including, but not limited to, parking, curbs, sidewalks, pavers, ramps for the disabled, cycling or jogging trails, benches, trash receptacles, or illumination.(19) Project concept plan--The preliminary sketches, drawings, details, estimates, and specifications required by the department to illustrate the type of project development and establishment proposed, and as required for the department to determine if the proposed project is a highway landscaping project or a pedestrian landscaping project.(20) Project design plan--The final drawings, details, specifications, and estimates as may be required by the department to fully control the work to be performed on the project.(21) Project development--The initial construction and installation of the landscape items in accordance with the project design plan.(22) Project establishment--The landscape maintenance activities required to ensure the viability, upkeep, and continued effectiveness of the project.(23) Project maintenance--The activities performed as determined by the program agreement to ensure the establishment, upkeep, and continued effectiveness of the project.(24) Sponsor--A local government or other public entity that owns or operates an airport.(25) Vandalism--Significant and deliberate damage or defacement that renders a sign unreadable or unsightly.</content><note type="source"><p>Source Note: The provisions of this §12.2 adopted to be effective December 8, 2011, 36 TexReg 8243.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c12/scA/s12.3"><num value="12.3">§12.3</num><heading>Adopt-a-Highway Program</heading><content>(a) Purpose. The Adopt-a-Highway Program (Program) allows private citizens an opportunity to support the department's litter prevention programs by adopting a section of highway for the purpose of reducing litter on an adopted section through public participation. This section sets forth policies and procedures to be used in administering the Program.(b) Participation.(1) Adoption. An eligible group may, upon approval by the department, adopt a section of a highway on the state highway system for purposes of picking up and removing litter from the rights-of-way of that section under such terms and conditions as may be prescribed by the department and the commission. The adoption of a section of highway is a privilege that may be granted by the department to individuals or groups who would assist the Program in achieving its purpose and goals. The department may deny a request to adopt a section of highway if, in its opinion, granting the request would jeopardize the Program, be counterproductive to its purpose, or create a hazard to the safety of the traveling public. Highway safety is a principal concern in all decisions related to the Program. Program participants must agree to hold the department harmless and agree not to hold the department responsible for any injuries that they may suffer or damages they may cause or suffer as a result of participation in the Program.(2) Eligibility.(A) The following groups are eligible to participate in the Program:(i) members or employees of civic and nonprofit organizations;(ii) employees of private businesses and governmental entities;(iii) families; and(iv) individuals.(B) To be eligible a group must be located or reside in the county or a county adjacent to the county in which the adopted section is located.(C) Only individuals or groups who are responsible and wish to assist the department will be allowed to adopt a highway.(c) Application.(1) The authorized representative of a group who desires to participate, or to continue to participate, in the Program shall submit an application to the district Adopt-a-Highway coordinator of the district in which the section of highway to be adopted is located.(2) The application shall be in the form prescribed by the department and shall at a minimum include:(A) the date of application;(B) the name and complete mailing address, including street address, of the group;(C) the name, telephone number, complete mailing address, and e-mail address if applicable, of the group's authorized representative, and the same information for a secondary representative, or in the case of school or university groups, the name and contact information for a faculty sponsor; and(D) the highway section the group is interested in adopting.(d) Agreement.(1) If the application submitted by the group under subsection (c) of this section is approved by the district engineer, the authorized representative of that group shall execute a written agreement with the department providing for the group's participation in the Program.(2) The agreement shall be in the form prescribed by the department and shall include:(A) an acknowledgment by the group of the hazardous nature of the work involved in participating in the Program;(B) an acknowledgment that the members of the group agree jointly and severally to be bound by and comply with the terms of the agreement; and(C) the respective responsibilities of the group and the department as contained in subsection (e) of this section.(e) Responsibilities of group and department.(1) Groups must:(A) appoint or select an authorized representative and alternate to serve as spokesperson for the group;(B) obey and abide by all laws and regulations relating to safety and such other terms and conditions as may be required by the district engineer for special conditions on a particular adopted section;(C) furnish adequate supervision by one or more adults for minor participants of a group who are 15 years of age and older, with at least one adult for every three children who are 7 to 14 years of age;(D) conduct or attend at least two safety meetings per year and ensure participants of the group attend a safety meeting before participating in the cleanup of the adopted section;(E) adopt a section that is a minimum of two miles in length unless the district engineer determines a shorter length is in the best interests of the department;(F) adopt a section for a minimum period of two years;(G) pick up litter a minimum of four times a year at approximately quarterly intervals and at such additional times as required by the district engineer, unless the district engineer determines that two times a year is adequate to maintain an acceptable right of way (it is desired that one of these pickups occur during the department's annual Don't Mess with Texas trash-off events);(H) obtain required supplies and materials from the department during regular business hours;(I) assure that traffic control signs are open during a cleanup and returned to the closed position (or removed in the case of detachable signs) after the cleanup;(J) wear department furnished safety vests during the pickup;(K) place litter in trash bags furnished by the department, place filled trash bags at the sign base, and contact the district maintenance office the first working day after the cleanup for removal of the bags;(L) return all unused materials and supplies to the department within one week following cleanup;(M) neither possess nor consume alcoholic beverages or illegal drugs while on the adopted section; and(N) maintain a first-aid kit and adequate drinking water while picking up litter on the adopted section.(2) The department will:(A) work with the group to determine the specific section of state highway right of way to be adopted;(B) erect a sign at each end of the adopted section with the group's name or acronym displayed;(C) provide traffic control signs, safety vests, trashbags, and safety information;(D) after notification from the group, remove the filled trashbags the first workday after the pickup; and(E) remove litter from the adopted section only under unusual circumstances, i.e., to remove large, heavy, or hazardous items or if the group has not fulfilled its responsibilities.(f) General limiting conditions. The Program is subject to the following conditions.(1) The department may consider such factors as width of right of way, geometrics, congestion, and sight distance of roadways in determining what sections of highways shall be eligible for adoption. In no circumstance shall a section of an interstate highway be eligible for adoption.(2) If any actions are determined to be contrary to any legislative restrictions or any restrictions on the use of appropriated funds for political activities, the department, at its sole discretion will take any and all necessary remedial actions, including, but not limited to, the removal of signs displaying the group's name or acronym.(3) Adopt-a-Highway signs shall be four feet by four feet, shall be the least expensive and most effective for each situation, and will not state the full name or official title of an elected official.(4) A group may not subcontract or assign its responsibilities to any other group, organization, or enterprise without the express written authorization of the department.(5) The department, in no event, shall have the right to control the group in performing the details of picking up litter from the section of highway adopted by the group, and, in picking up litter, the group shall act as an independent contractor without direct, on-site supervision from the department.(6) Children under the age of seven may not participate in the Program.(g) Modification/renewal/termination of the agreement.(1) An agreement may be modified in any manner at the sole discretion of the department.(2) If the department undertakes a construction project on an adopted section, the group may suspend its agreement or choose a new section to adopt for the duration of the construction project.(3) The group will have the option of renewing an agreement subject to the approval of the district engineer and the continuation of the Program.(4) The department may terminate an agreement and remove the signs upon 30-day notice, if in its sole judgment it finds and determines that the group is not meeting the terms and conditions of the agreement.(h) Memorial adoptions. An eligible group may adopt a section of highway as a memorial to an individual who has died as a result of a motor vehicle accident on the state highway system. Except as provided in this subsection, all applicable provisions of this subchapter governing the Adopt-a-Highway program apply to memorial adoptions under this subsection.(1) The adopting group must include family members of the individual in whose memory the section of highway is adopted.(2) A sign erected for a memorial adoption may include the phrase "in memory of" and the name of the individual in whose memory the section is adopted, along with the name of the adopting group.(3) In approving memorial adoptions, the district engineer will consider:(A) the availability of sections of highway on the state highway system that are appropriate for litter control by volunteers; and(B) the potential of the proposed adoption to increase public awareness of traffic safety.(4) The requirements of subsection (b)(2)(B) of this section do not apply if the adopting group adopts the segment of highway on which the accident occurred.</content><note type="source"><p>Source Note: The provisions of this §12.3 adopted to be effective December 8, 2011, 36 TexReg 8243.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c12/scA/s12.4"><num value="12.4">§12.4</num><heading>Adopt-a-Highway for Landscaping Program</heading><content>(a) Purpose. The Adopt-a-Highway for Landscaping Program (Program) augments the Adopt-a-Highway Program, established in §12.3 of this subchapter (relating to Adopt-a-Highway Program) by allowing groups to adopt a section of rural state highway right-of-way for landscape development and maintenance to enhance the beauty of rural Texas highways while preserving the integrity of native Texas flora and providing litter pickup. This section sets forth policies and procedures to be used in administering the Program.(b) Participation.(1) Adoption. An eligible group may, upon approval by the department, adopt a rural section of the state highway system for landscape development and maintenance and litter pickup.(2) Eligibility.(A) The following groups are eligible to participate in the Program:(i) members or employees of civic and nonprofit organizations;(ii) employees of private businesses and governmental entities; and(iii) families.(B) To be eligible a group must be located or reside in the county or a county adjacent to the county in which the adopted section is located.(3) Current participating groups. Groups currently participating in the Program for litter control will be given the opportunity to expand their scope of support by adopting their respective sections of highway right-of-way as a landscape project if their section satisfies requirements relating to right-of-way width, highway geometrics, sight distance, and safety considerations.(c) Application.(1) The authorized representative of a group who desires to participate, or continue to participate, in the Program shall submit an application to the district engineer of the district in which the proposed adopted section is located.(2) The application shall be in the form prescribed by the department and shall at a minimum include:(A) the date of application;(B) the name and complete mailing address, including the street address, of the group;(C) the name, telephone number, and complete mailing address, including street address, of the authorized representative of the group;(D) the highway section the group is interested in adopting;(E) whether the group proposes to adopt the section for project development, establishment, and maintenance only, or also for litter control in accordance with §12.3 of this subchapter; and(F) the project design plan, including sketches, drawings, and specifications as may be required by the department to illustrate the level of landscape development.(3) Groups currently participating in the Adopt-a-Highway Program will be required to indicate on the application their current participation in such Program.(d) Agreement.(1) If the application submitted by the group under subsection (c) of this section is approved by the district engineer, the authorized representative of that group shall enter into a written agreement with the department providing for the group's participation in the Program.(2) The agreement shall be in the form prescribed by the department and shall at a minimum include the following terms.(A) The project design plan furnished by the group shall consist of plans, sketches, drawings, notes, and specifications required to fully illustrate the level of project development proposed.(B) The group shall acknowledge the hazardous nature of the work involved in participating in the Program.(C) The group shall agree that its members are jointly and severally to be bound by and comply with the terms of the agreement.(D) The project design plan shall be subject to the approval of the department.(E) All costs, materials, labor, and equipment necessary for project development shall be furnished by the group.(F) All costs, materials, labor, and equipment necessary to provide for project establishment and maintenance for a period specified by the department, such period being not less than two consecutive years following the completion of project development, shall be furnished by the group.(G) The respective responsibilities of the group and the department as cited in subsection (e) of this section.(H) Conditions by which the agreement may be terminated.(I) A provision to satisfy legal relations and responsibilities to the public, including insurance and traffic control.(3) The department's decision will be final with respect to any disputes that may arise concerning the group's responsibilities under the agreement.(e) Responsibilities of group and department.(1) Groups must:(A) appoint an authorized representative who shall have the authority to execute the agreement as defined in subsection (d) of this section;(B) obey and abide by all laws and regulations relating to safety, and legal relations to the public, and such other terms and conditions as may be required by the district engineer for special conditions on a particular adopted section;(C) comply with §12.3 of this subchapter if participation includes that Program;(D) furnish adequate supervision by one or more adults for participants who are 15 years of age or younger;(E) conduct at least two safety meetings per year and ensure participants of the group attend at least one safety meeting before participating in the cleanup of the adopted section;(F) adopt the section of highway for a minimum period of two years;(G) adopt only those sections of highway determined by the department to be appropriate for project development and maintenance;(H) provide for the establishment of plant material;(I) water all plant material except seeding at least twice per month during the months of April through September, and at least once per month during the months of October through March, unless in the opinion of the department, sufficient natural rainfall has occurred;(J) remove weeds and vegetative matter from within the watering basins of all installed plant material at least once per month during the months of April through September, and at least once every other month during the months of October through March;(K) assure that the fold-down traffic control signs are folded open during project participation and returned to the closed position after project completion each day;(L) assure each individual participant of the group wears department-furnished safety vests while on the adopted section;(M) neither possess nor consume alcoholic beverages while on the adopted section;(N) maintain a first-aid kit and adequate drinking water while on the adopted section; and(O) act as an independent contractor during project participation.(2) A group may not subcontract or assign its project responsibilities to any other group, organization, or enterprise, unless expressly authorized by the department.(3) The department will:(A) work with the group to determine the specific section of the state highway right-of-way to be adopted;(B) comply with §12.3 of this subchapter if litter control is included as a portion of the application;(C) review the group's design plan for project development and reserves the right to require modifications to the design prior to approval; and(D) provide for the installation of suitable Adopt-a-Highway for Landscaping signs in accordance with existing regulations relating to the Adopt-a-Highway Program, including §12.3(f)(3) of this subchapter.(f) General limiting conditions and eligibility. The Program is subject to the following conditions.(1) Only highway right-of-way eligible for the Program for litter control and only those sections which are deemed appropriate for landscape development, as determined by the department, may be adopted. Unless otherwise approved by the department, controlled access highways or routes within urban or metropolitan areas are not eligible for adoption.(2) The department may consider such factors as width of right-of-way, geometrics, congestion, and sight distance of roadways in determining what highway shall be eligible for adoption.(3) Limits for adopted sections for landscape development will be subject to the approval of the department.(4) Plant material will be limited to native and adapted trees, shrubs and wildflower and grass seeding activities.(5) Groups currently participating in the Adopt-a-Highway Program which submit an application under subsection (c) of this section to participate in the Program may only adopt within the limits of the original adopted section. Project maintenance shall be performed for a period as specified by the department, such period being not less than two consecutive years following the completion of the project development.(6) Sections currently adopted under the Adopt-a-Highway Program shall not be eligible for adoption under the Adopt-a-Highway for Landscaping Program by any other group until the original adoption under the Adopt-a-Highway Program has expired.(7) Signs shall be four feet by four feet and shall be the least expensive and most effective for each situation.(8) With the exception of the Adopt-a-Highway Program, work under the Adopt-a-Highway for Landscaping Program will not be combined with any other landscape-related program sponsored by the department.(9) If any actions are determined to be contrary to any legislative restrictions or any restrictions on the use of appropriated funds for political activities, the department, at its sole discretion, will take all necessary remedial actions, including, but not limited to, the removal of signs displaying the group's name or acronym.(g) Modification/renewal/termination of the agreement. The agreement may be modified in any manner at the sole discretion of the department. The group will have the option of renewing the agreement subject to the approval of the district engineer and the continuation of the Program. The department may terminate the agreement and remove the signs upon 30-day notice, if in its sole judgment it finds and determines that the group is not meeting the terms and conditions of the agreement.</content><note type="source"><p>Source Note: The provisions of this §12.4 adopted to be effective December 8, 2011, 36 TexReg 8243.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c12/scA/s12.5"><num value="12.5">§12.5</num><heading>Landscape Cost Sharing Program</heading><content>(a) Purpose. The Landscape Cost Sharing Program (Program) allows individuals, private businesses, organizations, and local governments an opportunity to support the aesthetic improvement of the state highway system by sharing the project development, establishment, and maintenance cost of landscaping the state highway system. This section sets forth policies and procedures governing the Program.(b) Participation.(1) Eligible entities. An individual, private business, organization, or local government may share in the cost of the development, establishment, and maintenance of the landscaping of a segment of the state highway system upon approval of the district engineer. An individual, private business, or organization is eligible to participate:(A) as a donor through the local government by providing to the local government donations in an amount equal to not less than 25% of the local government's share of the project cost; or(B) as a non-governmental donor by providing donations directly to the department if the donor is located in the county or a county adjacent to the county in which the project site is located.(2) Compliance with other rules. The department will process a donation under paragraph (1)(B) of this subsection in accordance with the requirements of Chapter 1, Subchapter M of this title (relating to Donations). If a provision of this section conflicts with a provision of Chapter 1, Subchapter M of this title, this section will prevail.(3) Sign. The department may install a sign at the project site announcing the local government's or donor's participation in the Program. The sign must conform to the Texas Manual on Uniform Traffic Control Devices. On approval of the district engineer of the district in which the project site is located, a municipality may erect and maintain a sign within the municipality's jurisdiction announcing participation in the Program.(c) Application.(1) A local government or donor that desires to participate or to continue to participate in the Program shall submit an application to the district engineer of the district in which the project site is located.(2) The application shall be in the form prescribed by the department and shall at a minimum include:(A) the date of application;(B) the name, telephone number, and complete mailing address of the local government or donor;(C) the highway section the local government or donor is interested in developing;(D) the project concept plan, containing sketches, drawings, estimates, specifications, and descriptive text as may be required by the department to evaluate the project under required general, site, and design considerations, to determine the proposed design intent, and to estimate the amount of department participation; and(E) a statement, chart, or spreadsheet based on the project concept plan, which illustrates the recommended responsibilities of the department and the local government and, if applicable, the donor (this statement, chart, or spreadsheet shall contain fully itemized cost figures for each portion of the project as may be required for the department to evaluate the recommended fair-market values for acceptable material and services proposed).(d) Conditions. In order to participate in the Program, each project must meet the department's approval under general, site, and design considerations.(1) General considerations. Normally, work on state highway right-of-way will be performed by state forces or by contractors selected and administered by the department. The district engineer of the district in which the project site is located may grant an exception to allow a local government or donor to perform work on state highway right-of-way under this Program.(A) A local government or donor may participate in the joint beautification of the existing state highway system subject to the following restrictions.(i) If the project is determined by the department to be a highway-landscaping project, the department will evaluate accepting labor, equipment, materials, design services, and cash as the contribution toward the proposed project.(ii) If the project is determined by the department to be a pedestrian landscaping project, the department's participation will be limited to furnishing materials only for installation.(B) Unless waived by the department, projects shall exceed $25,000 if constructed by the department.(C) The cost of any previous work by the local government or donor shall not be included as a portion of the contribution toward the project.(D) For a project to be evaluated by the department for work under the Program, the minimum value of acceptable non-cash contributions plus cash contributions by the local government or donor must equal or exceed $2,500.(E) If the department is to provide materials for the project, applicable statutes, rules, and procedures relating to the purchase of materials using state funds will apply.(F) If the department is to provide for the construction of any portion of the project, applicable statutes, rules, and procedures relating to scheduling, processing, and administering a highway improvement project through the department's highway letting process will apply.(2) Site considerations. For sites to be approved by the department, the following site conditions must be met. The site must:(A) not be scheduled for future construction as defined within the department's current unified transportation plan which would conflict with the activities proposed on the project;(B) contain sufficient right-of-way to reasonably permit planting and landscaping operations without conflicting with safety, geometric, and maintenance considerations;(C) not contain overhead or underground utilities, driveways, pavement, sidewalks, or highway system fixtures including traffic signage or signalization which will conflict with the planting or landscaping operations proposed under the project; and(D) not obstruct or interfere with existing drainage conditions along the site.(3) Design considerations. For sites to be approved by the department, the following design considerations must be met.(A) The project design, as shown on the project concept plan, must be acceptable to the department.(B) Unless otherwise approved by the department, the project design may not include the following design elements:(i) plant material or fixtures which, in the opinion of the department, require an intensive level of continued establishment and maintenance in order to assure the effectiveness and function within the design;(ii) flagpoles or pennant poles;(iii) fountains or water features; and(iv) statuary, sculpture, or other art objects.(C) The following items, if considered by the department as an acceptable element of the project design plan, may not be included as a contribution cost, and will not be furnished or installed by the department:(i) benches and pedestrian seating;(ii) pedestrian or historic lighting or illumination systems; and(iii) trash or refuse receptacles.(D) The local government or donor must fully illustrate the recommended division of responsibilities as necessary for the department to evaluate the proposed manner of project implementation, establishment, and maintenance if applicable. The illustration of recommended project responsibilities shall at a minimum include:(i) preparing the project design plan, provided that the cost of providing the project design plan for a pedestrian landscaping project shall be the sole responsibility of the local government or donor, and shall not be included as a portion of its contribution toward the project;(ii) furnishing and installing required material; and(iii) performing project establishment and maintenance, if required, provided that the cost of performing project establishment and maintenance on a pedestrian landscaping project shall be the sole responsibility of the local government or donor and shall not be included as a portion of its contribution toward the project.(E) The local government or donor must fully itemize and document the proposed cash and non-cash contribution available to support the project. This itemization and documentation shall include at a minimum the following items:(i) amount of cash to be provided to the department;(ii) non-cash value of each individual item of material to be furnished by the local government or donor;(iii) cost of each individual item or material to be furnished by the department;(iv) non-cash value of labor and equipment necessary to install each individual item of material if performed by the local government or donor;(v) cost of installing each individual item of material if performed by the department; and(vi) non-cash value of the project design plan if furnished by the local government or donor, provided the maximum acceptable non-cash value of furnishing the project design plan, based upon the selected project cost, including project establishment and maintenance for highway landscaping projects and excluding project establishment and maintenance for pedestrian landscaping projects, shall not exceed 8.5% for projects up to and including $200,000, and 7.5% for projects greater than $200,000.(e) Amount of departmental participation.(1) Highway landscaping projects within the existing city limits of a city. The department, after approving the project under general, site, and design considerations, will participate in up to 50% of the total cost of the project including project establishment and maintenance, and preparation of the project design plan.(2) Pedestrian landscaping within the existing city limits of a city. The department, after approving the project under general, site, and design considerations, will participate by furnishing material only up to but not exceeding 50% of the total cost of project development, excluding project establishment and maintenance and the preparation of the project design plan.(3) Highway landscaping projects outside the existing city limits of a city. The department, after approving the project under general, site, and design considerations, will participate in up to 50% of the total project development, establishment, maintenance and design cost.(4) Pedestrian landscaping projects outside existing city limits. Unless otherwise approved, the department will not participate in the cost of these projects under the Program.(f) Agreement.(1) If the proposed project as submitted under subsection (c) of this section is approved by the department, the local government or donor shall enter into a written agreement with the department providing participation in the Program. The agreement becomes effective when finally executed by the department and shall terminate upon satisfactory completion of the work as stipulated within the agreement. Work on any phase of the project may not begin until the agreement is fully executed by both parties.(2) The agreement shall be in the form prescribed by the department and shall at a minimum include the following terms.(A) The project design plan shall consist of plans, sketches, drawings, notes, estimates, and specifications as required by the department.(B) Any changes to the agreement shall be enacted by written amendment.(C) The parties shall not assign or otherwise transfer their obligations under this agreement except with prior written consent of the other party.(D) The project design plan shall be subject to the review and satisfactory approval by the department prior to a departmental bid opening.(E) Violation or breach of contract terms shall be grounds for termination of the agreement by the department. In the event of disputes as to obligations under the agreement, the department's decision shall otherwise be final and binding.(F) The local government or donor and its contractors, if any, shall to the extent provided by law, furnish certificates of insurance, guarantees of self-insurance if appropriate, and indemnification as may be prescribed by the department.(G) The department, at the local government's or donor's expense, shall provide, erect, and maintain any barricades, signs, and traffic handling devices necessary to protect the safety of the travelling public while performing any work on the project. The department in its discretion may allow the local government to provide, erect, and maintain barricades, signs, and traffic handling devices required to comply with this subparagraph.(H) The department's employees shall not accept any benefits, gifts, or other thing reasonably regarded as economic gain or advantage.(3) The agreement shall include the funding arrangement and payment schedule.(g) General limiting conditions and eligibility. Because of administrative, legislative, and financial constraints, the Program shall be subject to the following terms.(1) The department will consider such factors as width of right-of-way, geometrics, congestion, sight-distance, and maintenance requirements in determining the acceptability and/or amount of departmental participation in any proposed project.(2) The department will not erect or replace a sign announcing participation in the Program, unless the local government or donor pays the cost of manufacturing and erecting the sign. The cost of manufacturing and erecting the sign will not be included as a portion of the local government's or donor's contribution toward the project.(3) Work under the Program shall not be combined with any other landscape-related programs sponsored by the department.(4) If any actions are determined to be contrary to any legislative restrictions or any restrictions on the use of appropriated funds for political activities, the department shall have the right to take any and all necessary remedial actions, including, but not limited to, the removal of the signs displaying the local governmental entity's or donor's name.(h) Modification/termination of agreement. The agreement as cited in subsection (f) of this section may be modified in any manner at the sole discretion of the department.</content><note type="source"><p>Source Note: The provisions of this §12.5 adopted to be effective December 8, 2011, 36 TexReg 8243; amended to be effective April 16, 2014, 39 TexReg 2958.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c12/scA/s12.6"><num value="12.6">§12.6</num><heading>Adopt-a-Freeway Program</heading><content>(a) Purpose. The Adopt-a-Freeway Program (Program) allows private businesses, civic organizations, and local governments an opportunity to support the department's landscape programs by adopting a section of urban freeway for the purpose of project development and project establishment and maintenance on that section. This section sets forth policies and procedures governing the Program.(b) Participation in program.(1) Local government. A local government, upon approval by the district engineer, may adopt a section of urban state highway right-of-way for the purpose of project design, project development, and project establishment and maintenance by assuming the responsibility for all design, construction, establishment, and maintenance costs involved in the project.(2) Donor.(A) An eligible private business or civic organization may participate in the Program by providing to the local government cash or non-cash donations in an amount equal to not less than 25% of the project cost. The donor will receive recognition of the donation by the erection at the project site of a sign announcing participation by the donor in the Program.(B) A private business or civic organization is eligible to participate in the Program as a donor if the business or civic organization is located in the county or a county adjacent to the county in which the adopted section is located.(c) Application.(1) A local governmental entity which desires to participate or to continue to participate in the Program shall submit an application to the district engineer of the district in which the adopted section is located.(2) The application shall be in the form prescribed by the department and shall at a minimum include:(A) date of application;(B) the name and complete mailing address of the local government;(C) the name, telephone number, and complete mailing address of a contact person for the local government;(D) the highway section the local government is interested in adopting;(E) if provided by the local government, the project design plan, specifications, and estimates for the work the local government is interested in performing; and(F) if provided by the department, the estimates, specifications, full descriptive text, sketches, or samples of work proposed by the local government as may be required by the department to produce the project design plan; and(G) a resolution by the local government that includes:(i) a statement that it approves participation in the Program;(ii) a statement that it agrees to accept the responsibility of the project; and(iii) a statement that the local government agrees and is authorized to enter into the agreement as defined in subsection (d) of this section.(d) Agreement.(1) If the application submitted under subsection (c) of this section is approved by the department, the local government shall enter into a written agreement with the department providing for participation in the Program.(2) The agreement shall be in the form prescribed by the department and shall contain at a minimum the following terms.(A) The local government shall comply with the terms and conditions set forth in the agreement.(B) All costs of project design, development, establishment, and maintenance shall be the sole responsibility of the local government. Prior to the date scheduled for contract award the local government shall remit to the department an amount equal to the remainder of the local government's funding share for the project.(C) If prepared by the local government, the project design plan shall be subject to the review and satisfactory approval by the department prior to a departmental bid opening.(D) The local government shall agree to provide funding for project establishment, and maintenance contracts let for construction by the department for a period as specified by the department, such period being not less than five consecutive years following the completion of the project development contract.(E) A list of the respective responsibilities of the local government and the department as cited in subsection (f) of this section.(F) The local government shall agree to provide necessary indemnification as may be required by the department.(e) Responsibilities of local government and department.(1) A local government who desires to participate in the Program shall be subject to the following requirements and responsibilities relating to project development.(A) If the project design plan is furnished by the local government, the local government must provide:(i) for the department's review, the project design plan;(ii) for the department's review, specifications, general notes, and estimates based upon the project design plan as may be necessary to fully document the project development;(iii) after the department's review, all required revisions to the project design plan, specifications, general notes, and estimates as may be required; and(iv) after revisions to the project design plan, specifications, general notes, and estimates have been made to the department's satisfaction, one set of reproducible mylars to the format and time schedule as may be required by the department, and three sets of 8 1/2 inches by 11 inches contract documents including specifications, general notes, and estimates.(B) If the project design plan is to be furnished by the department, the local government must provide:(i) information which establishes the proposed design concept as may be required by the department (this information may be in the form of descriptive text, sketches, or copies of developments similar to the type of project development proposed by the local government); and(ii) a check, payable to the Texas Department of Transportation, in the full amount of the design fee.(C) The local government must provide a check, payable to the Texas Department of Transportation, in the full amount of the final departmental estimate for project development, no later than 60 days prior to the date of the project's scheduled bid opening.(D) The local government must provide a check, payable to the Texas Department of Transportation, in the full amount of the final departmental estimate for project establishment and maintenance. Prior to the department's scheduled date for contract award, the local government shall remit to the department an amount equal to the remainder of the local government's funding share for the project.(2) The department, conditioned on approving the project as submitted by the local government, will be responsible for providing the following services.(A) Project design plan:(i) if submitted by the local government the project design plan will be reviewed; and(ii) if requested by the local government the project design plan will be prepared.(B) Project development:(i) scheduling the project for the first available departmental bid opening;(ii) awarding the construction contract; and(iii) administering the project during construction.(C) Project establishment and maintenance:(i) providing plans, specifications, and estimates as may be required for the establishment and maintenance project;(ii) scheduling the establishment and maintenance project for the first available departmental bid opening;(iii) awarding the establishment and maintenance contract; and(iv) administering the project.(f) General limiting conditions and eligibility. The Program shall be subject to each of the following conditions.(1) No section will be approved for adoption if any portion of the section is scheduled for future construction within the department's current unified transportation plan.(2) Designs which reflect the character of adjacent developments will be accepted by the department provided such designs do not include logos of private entities, civic organizations, or local governments and provided that the local government will provide funding for adequate project development, establishment and maintenance as required by the department.(3) All major routes including controlled access routes on the highway system within the urban and metropolitan areas will be eligible for adoption.(4) Signage announcing participation in the Program shall be four feet by four feet and shall be the least expensive and most effective for each situation.(5) Special landscape features such as fountains, retaining walls, paving or walkway treatment, architectural lighting or landscape treatments which require, in the opinion of the department, high-level maintenance may be submitted and proposed for approval by the department.(6) Work under the Program will not be combined with any other landscape-related programs sponsored by the department.(7) The project design plan, if provided by the department, will be scheduled for preparation within the constraints of the department's existing resource capability.(g) Modification/termination of agreement. The agreement as cited in subsection (d) of this section may be modified at the sole discretion of the department or commission. The agreement may also be terminated as provided in the agreement by mutual agreement and consent of the local government and the department, or by the department, after a 30-day notice, for failure by the local government to fulfill its responsibilities.</content><note type="source"><p>Source Note: The provisions of this §12.6 adopted to be effective December 8, 2011, 36 TexReg 8243.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c12/scA/s12.7"><num value="12.7">§12.7</num><heading>Landscape Partnership Program</heading><content>(a) Purpose. The Landscape Partnership Program (program) allows individuals, private businesses, organizations, and local governments an opportunity to support the aesthetic improvement of the state highway system by donating the project development, establishment, and maintenance of a landscaped section of the state highway system. This section sets forth policies and procedures governing the program.(b) Participation.(1) Eligible entities. An individual, private business, organization, or local government may develop, establish, and maintain the landscape of a section of the state highway system upon approval of the district engineer. An individual, private business, or organization is eligible to participate:(A) as a donor through the local government by providing donations to the local government; or(B) as a nongovernmental donor by providing donations directly to the department.(2) Compliance with other rules. The department will process a donation under paragraph (1)(B) of this subsection in accordance with the requirements of Chapter 1, Subchapter M of this title (relating to Donations). If a provision of this section conflicts with a provision of Chapter 1, Subchapter M of this title, this section will prevail.(3) Sign. The department may install a sign at the project site announcing the local government's or donor's participation in the program. The sign must conform to the Texas Manual on Uniform Traffic Control Devices. On approval of the district engineer of the district in which the project site is located, a municipality may erect and maintain a sign within the municipality's jurisdiction announcing participation in the program.(c) Application.(1) A local government or donor that desires to participate or to continue to participate in the program shall submit an application to the district engineer of the district in which the project site is located.(2) The application shall be in the form prescribed by the department and shall at a minimum include:(A) the date of application;(B) the name, telephone number, and complete mailing address of the local government or donor;(C) the highway section the local government or donor is interested in developing, establishing, and maintaining; and(D) the project concept plan containing sketches, drawings, specifications, and descriptive text as may be required by the department to evaluate the project under required general, site, and design considerations, to determine the proposed design intent.(d) Conditions. In order to participate in the program, each project must meet the department's approval under general, site, and design considerations.(1) General considerations. Normally, work on state highway right of way will be performed by state forces or under contracts awarded and administered by the department. The district engineer of the district in which the project site is located may grant an exception to allow a local government or donor to perform work on state highway right of way.(2) Site considerations. For sites to be approved by the department, the following site conditions must be met. The site must:(A) not be scheduled for future construction, as defined within the department's current unified transportation plan, that would conflict with the activities proposed on the project;(B) contain sufficient right of way to reasonably permit planting and landscaping operations without conflicting with safety, geometric, and maintenance considerations;(C) not contain overhead or underground utilities, driveways, pavement, sidewalks, or highway system fixtures including traffic signage or signalization that would conflict with the planting or landscaping operations proposed under the project; and(D) not contain existing drainage conditions that will be obstructed or otherwise interfered with by the project.(3) Design considerations. For sites to be approved by the department, the following design considerations must be met.(A) The project design, as shown on the project concept plan, must be acceptable to the department.(B) Unless otherwise approved by the department, the project design may not include the following design elements:(i) plant material or fixtures that, in the opinion of the department, require an intense level of continued establishment and maintenance in order to assure the effectiveness and function within the design;(ii) flagpoles or pennant poles;(iii) fountains or water features;(iv) statuary, sculpture, or other art objects; and(v) logos or other advertising.(e) General limiting conditions and eligibility. Because of administrative, legislative, and financial constraints, the program shall be subject to the following terms.(1) The department will consider such factors as width of right of way, geometrics, congestion, sight distance, and maintenance requirements in determining the acceptability of any proposed project.(2) The department will not erect or replace a sign announcing participation in this program unless the local government or donor pays the cost of manufacturing and erecting the sign.(3) Work under the program shall not be combined with any other landscape-related programs sponsored by the department.(f) Agreement.(1) If the proposed project as submitted under subsection (c) of this section is approved by the department, the local government or donor shall enter into a written agreement with the department providing participation in the program. Work on any phase of the project may not begin until the agreement is fully executed by both parties.(2) The agreement shall be in the form prescribed by the department and shall at a minimum include the following terms.(A) The project design plan shall consist of plans, sketches, drawings, notes, estimates, maintenance work schedules, and specifications as required by the department.(B) Any changes to the agreement shall be enacted by written amendment.(C) The parties shall not assign or otherwise transfer their obligations under this agreement, except with prior written consent of the other party.(D) The project design plan shall be subject to the review and satisfactory approval by the department prior to installation.(E) Violation or breach of contract terms shall be grounds for termination of the agreement by the department. In the event of disputes as to obligations under the agreement, the department's decision shall be final and binding.(F) The local government or donor and its contractors, if any, shall to the extent provided by law, furnish certificates of insurance, guarantees of self-insurance if appropriate, and indemnification as may be prescribed by the department.(G) The department, at the local government's or donor's expense, shall provide, erect, and maintain any barricades, signs, and traffic handling devices necessary to protect the safety of the travelling public while performing any work on the project. The department in its discretion may allow the local government to provide, erect, and maintain barricades, signs, and traffic handling devices required to comply with this subparagraph.(H) The agreement shall be for a period of not less than two years. If after two years, the local government or donor desires to continue the project, the agreement shall be subject to renewal.(3) A donation schedule, if applicable, shall be outlined in the agreement.(g) Modification/termination of agreement. The agreement as cited in subsection (f) of this section may be modified in any manner at the sole discretion of the department.(1) If the project is not installed within one year, the agreement becomes void.(2) If the local government or donor fail to maintain the project according to the schedule outlined in the agreement, the project will be subject to removal at the department's discretion.</content><note type="source"><p>Source Note: The provisions of this §12.7 adopted to be effective December 8, 2011, 36 TexReg 8243; amended to be effective April 16, 2014, 39 TexReg 2958.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c12/scA/s12.8"><num value="12.8">§12.8</num><heading>General Sign Restrictions</heading><content>(a) The department is generally prohibited by law from expending any funds, directly or indirectly, for the purpose of influencing the outcome of any election or the passage or defeat of any legislation, and will not erect a sign in violation of this prohibition.(b) The department will remove a sign erected under this subchapter which is damaged due to vandalism, and will not replace the sign within the terms of the agreement unless the group remits to the department an amount equal to the cost of the replacement sign.</content><note type="source"><p>Source Note: The provisions of this §12.8 adopted to be effective December 8, 2011, 36 TexReg 8243.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c12/scA/s12.9"><num value="12.9">§12.9</num><heading>Approval and Appeal</heading><content>(a) A district engineer who receives an application submitted under this subchapter may defer approval to the executive director or the executive director's designee.(b) If a district engineer denies, in whole or in part, approval of an application submitted under this subchapter, the applicant may appeal that action to the executive director or the executive director's designee.</content><note type="source"><p>Source Note: The provisions of this §12.9 adopted to be effective December 8, 2011, 36 TexReg 8243.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c12/scA/s12.10"><num value="12.10">§12.10</num><heading>Termination or Revision of a Program</heading><content>A program established under this subchapter may at any time and for any reason be terminated or revised at the sole discretion of the commission.</content><note type="source"><p>Source Note: The provisions of this §12.10 adopted to be effective December 8, 2011, 36 TexReg 8243.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c12/scA/s12.11"><num value="12.11">§12.11</num><heading>Adopt-an-Airport Program</heading><content>(a) Purpose. The Adopt-an-Airport Program (Program) allows private citizens an opportunity to support the department's beautification programs by adopting an airport for the purposes of beautifying and creating a better image and enhancing public awareness for the airport. This section sets forth policies and procedures to be used in administering the Program.(b) Participation.(1) Airport.(A) Only publicly-owned airports included in the Texas Airport System Plan (TASP) are eligible to participate in the Adopt-an-Airport Program.(B) Eligible airports shall execute an agreement with the department to define their respective responsibilities before the airport may be adopted.(2) Groups.(A) The following groups are eligible to participate in the Program:(i) members or employees of civic and nonprofit organizations;(ii) employees of private businesses and governmental entities; and(iii) families.(B) To be eligible a group must be located or reside in the city or county in which the adopted airport is located.(c) Application.(1) The authorized representative of a group that desires to participate, or to continue to participate, in the program shall submit an application to the district engineer of the district in which the airport to be adopted is located.(2) The application shall be in a form prescribed by the department and shall at a minimum include:(A) the date of application;(B) the name and complete mailing address, including street address, of the group;(C) the name, telephone number, and complete mailing address of the group's authorized representative;(D) the name of the airport the group is interested in adopting; and(E) what activities the applicant proposes for maintenance or beautification.(3) If the group meets the criteria of this section, the district engineer will approve the adoption unless he or she determines that to do so would endanger the traveling public, or otherwise not be in the best interest of the airport.(d) Agreement.(1) If the district engineer approves the application submitted by the group under subsection (c) of this section, the authorized representative of that group shall execute a written agreement with the sponsor and the department providing for the group's participation in the Program.(2) The agreement shall be in the form prescribed by the department and shall include:(A) an acknowledgment by the group of the possible hazardous nature of the work involved in participating in the Program;(B) an acknowledgment that the members of the group agree jointly and severally to be bound by and comply with the terms of the agreement; and(C) a statement of the respective responsibilities of the group and the department as contained in subsection (e) of this section.(e) Responsibilities of group and department.(1) Groups must:(A) appoint or select an authorized representative to serve as spokesperson for the group;(B) obey and abide by all laws and regulations relating to safety and such other terms and conditions as may be required by the sponsor and the department for special conditions on a particular adopted airport;(C) furnish adequate supervision by one or more adults for participants of a group who are 15 years of age or younger;(D) conduct at least one safety meeting per year and ensure participants of the group attend a safety meeting before participating in the beautification of the adopted airport;(E) adopt an airport for a minimum period of two years;(F) pick up litter a minimum of four times a year and at such additional times as required by the sponsor or the department, if the group's responsibility is controlling and reducing litter;(G) obtain required supplies and materials from the sponsor or the department during regular business hours;(H) wear department furnished safety vests during the tasks being performed;(I) place litter in trash bags furnished by the department and place filled trash bags at locations as determined by the sponsor or the department, if the group's responsibility is controlling and reducing litter;(J) return all unused materials and supplies to the sponsor or the department within one week following cleanup unless the materials and supplies are necessary for continued beautification;(K) neither possess nor consume alcoholic beverages while on the adopted airport; and(L) maintain a first-aid kit and adequate drinking water while on the adopted airport.(2) The department will:(A) work with the group and the sponsor to determine the specific tasks to be performed;(B) erect a sign on the closest highway right of way, normally near the airport pointer sign, with the group's name or acronym displayed;(C) provide safety vests, trashbags, and safety literature;(D) remove the filled trashbags after the pickup; and(E) remove litter from the adopted section only under unusual circumstances, such as removal of large, heavy, or hazardous items.(f) General limiting conditions. The Program is subject to the following conditions.(1) The department may consider such factors as airport size and activity, geometrics, congestion, and visability restrictions in determining which airports shall be eligible for adoption.(2) If any actions are determined to be contrary to any legislative restrictions on the use of appropriated funds for political activities, the department, at its sole discretion may take any and all necessary remedial actions, including, but not limited to, the removal of signs displaying the group's name or acronym.(3) Adopt-an-Airport signs shall be four feet by four feet and shall be the least expensive and most effective for each situation. A sign will not state the full name or official title of an elected official.(4) A group may not subcontract or assign its responsibilities to any other group, organization, or enterprise without the express written authorization of the department.(5) The department shall not have the right to control the group in performing the agreed upon tasks and/or of picking up litter from the airport adopted by the group; and, in picking up litter, the group shall act as an independent contractor.(g) Modification/renewal/termination of the agreement. The agreement may be modified in any manner at the discretion of the department. The group will have the option of renewing the agreement subject to the approval of the department and the sponsor, and the continuation of the Program. The department may terminate the agreement and remove the signs upon 30-day notice, if in its sole judgment it finds and determines that the group is not meeting the terms and conditions of the agreement.</content><note type="source"><p>Source Note: The provisions of this §12.11 adopted to be effective December 8, 2011, 36 TexReg 8243.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c12/scJ"><num value="J">SUBCHAPTER J</num><heading>REAL-TIME SYSTEM MANAGEMENT INFORMATION PROGRAM</heading><section identifier="/us/state/tx/tac/t43/p1/c12/scJ/s12.301"><num value="12.301">§12.301</num><heading>Purpose</heading><content>The purpose of this subchapter is to provide for a state Real-Time System Management Information Program that complies with 23 C.F.R. Part 511 and that makes information about current traffic and travel conditions available to the traveling public.</content><note type="source"><p>Source Note: The provisions of this §12.301 adopted to be effective December 6, 2012, 37 TexReg 9528.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c12/scJ/s12.302"><num value="12.302">§12.302</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise.(1) Contractor--A person that acts as the authorized agent of the department in the development, operation, or maintenance of a Real-Time System Management Information program.(2) Department--The Texas Department of Transportation.(3) Person--An individual, corporation, firm, group, or association.(4) Program--The Real-Time System Management Information Program under which the state is responsible for the collection and availability to the traveling public of information about current traffic and travel conditions.(5) Texas MUTCD--Texas Manual on Uniform Traffic Control Devices issued by the Texas Department of Transportation.</content><note type="source"><p>Source Note: The provisions of this §12.302 adopted to be effective December 6, 2012, 37 TexReg 9528.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c12/scJ/s12.303"><num value="12.303">§12.303</num><heading>Real-Time System Management Information Program</heading><content>(a) The department may award one or more contracts to design, build, host, operate, maintain, or market the program.(b) The program must comply with 23 C.F.R. Part 511.(c) Each traffic control device installed by a contractor under the program must conform to the requirements of the Texas MUTCD and must be approved by the department.</content><note type="source"><p>Source Note: The provisions of this §12.303 adopted to be effective December 6, 2012, 37 TexReg 9528.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c12/scJ/s12.304"><num value="12.304">§12.304</num><heading>Program Acknowledgement Plaques</heading><content>(a) To acknowledge a donation to the department for the program, the department may allow during the period of the related sponsorship agreement the installation of an acknowledgment plaque below a general service sign for the program that is in the state highway right of way.(b) An acknowledgment plaque is intended only to inform the traveling public that a donation to the program has been provided and is not intended to provide advertisement.(c) The size of an acknowledgment plaque may not exceed the lessor of one-third of the area of the general service sign below which it is mounted or 24 square feet, except as provided by this subsection. If, because of a special allowance provided in the Texas MUTCD, the area of the general service sign below which the acknowledgment plaque is mounted exceeds the largest size generally prescribed in the Texas MUTCD for that type of sign, the acknowledgement plaque may not exceed the lessor of one-third of the area generally prescribed in the Texas MUTCD for that type of sign or 24 square feet.(d) The acknowledgment plaque may contain the donor's registered business name or logo but may not contain the donor's telephone number, address, or website address.(e) Each acknowledgment plaque must be approved by the department and must comply with state laws prohibiting discrimination based on race, religion, color, age, sex, or national origin, and any other applicable law regarding sign restrictions.(f) The department will include in any contract entered into under this subchapter the authority to terminate the right to install an acknowledgment plaque if the use of the plaque raises any safety concerns or interferes with the free and safe flow of traffic, or if the department determines that acknowledging the donation is not in the public interest.</content><note type="source"><p>Source Note: The provisions of this §12.304 adopted to be effective December 6, 2012, 37 TexReg 9528.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c12/scK"><num value="K">SUBCHAPTER K</num><heading>ACKNOWLEDGMENT PROGRAM</heading><section identifier="/us/state/tx/tac/t43/p1/c12/scK/s12.351"><num value="12.351">§12.351</num><heading>Purpose</heading><content>The purpose of this subchapter is to provide for a state acknowledgment program that allows the department to acknowledge donations for highway-related services, including mowing, litter and debris pick-up, travel services, roadside assistance and safety service patrols, and maintenance of safety rest areas, Travel Information Centers, and toll gantry facilities.</content><note type="source"><p>Source Note: The provisions of this §12.351 adopted to be effective February 21, 2013, 38 TexReg 1001; amended to be effective February 20, 2014, 39 TexReg 999; amended to be effective October 16, 2024, 49 TexReg 8405.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c12/scK/s12.352"><num value="12.352">§12.352</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise.(1) Acknowledgment--A notice that is intended only to inform the public that a highway-related service is sponsored by a participating sponsor. The term includes an acknowledgment sign and an acknowledgment decal.(2) Acknowledgment decal--A decal that is affixed to a roadside assistance or safety service patrol vehicle that is intended only to inform the traveling public that those services are sponsored by a participating sponsor.(3) Acknowledgment sign--A sign that is located adjacent to the traveled way and that is intended only to inform the traveling public that a highway-related service is sponsored by a participating sponsor.(4) Department--The Texas Department of Transportation.(5) Participating sponsor--An individual, corporation, business, firm, group, or association that contributes towards a highway-related service.(6) Vendor--An individual or business that acts as the authorized agent of the department in the marketing, administration, and soliciting of a participating sponsor for the acknowledgment program.</content><note type="source"><p>Source Note: The provisions of this §12.352 adopted to be effective February 21, 2013, 38 TexReg 1001; amended to be effective February 20, 2014, 39 TexReg 999; amended to be effective October 16, 2024, 49 TexReg 8405.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c12/scK/s12.353"><num value="12.353">§12.353</num><heading>Acknowledgment Program</heading><content>(a) The department may develop an acknowledgment program to recognize donations provided to benefit a highway-related service.(b) A donation may be used only for the highway-related purpose for which it is made.(c) The acknowledgment program is applicable to all state highways.(d) Chapter 1, Subchapter M of this title (relating to Donations) does not apply to a donation accepted under the acknowledgment program.(e) The department may contract with a vendor under §12.354 of this subchapter (relating to Acknowledgment Program Vendor Contract; Program Agreement) for services related to the acknowledgment program.(f) The vendor will install and maintain all acknowledgments under the acknowledgment program.(g) The department or vendor may not accept donations from an individual or entity that is regulated by the department or that is involved with the department through a contract, purchase, payment, or claim, and such an individual or entity may not participate in the acknowledgment program.(h) An acknowledgment may not contain:(1) a reference to an alcoholic beverage, a tobacco product, or a sexually oriented business, product, or service; or(2) comparative or qualitative descriptions of a product, service, facility, or company.(i) A donation received by the department under the acknowledgment program must be acknowledged by the Texas Transportation Commission in an open meeting not later than the 90th day after the date the donation is accepted by the department.(j) An acknowledgment must comply with all applicable law.</content><note type="source"><p>Source Note: The provisions of this §12.353 adopted to be effective February 21, 2013, 38 TexReg 1001; amended to be effective February 20, 2014, 39 TexReg 999; amended to be effective October 16, 2024, 49 TexReg 8405.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c12/scK/s12.354"><num value="12.354">§12.354</num><heading>Acknowledgment Program Vendor Contract; Program Agreement</heading><content>(a) The department may contract with one or more individuals or businesses for professional services to market, administer, recruit, or secure sponsors for the acknowledgment program.(b) The department will require a vendor to enter into an agreement prescribed by the department with each participating sponsor.(c) The agreement must:(1) require that the participating sponsor comply with state law, including laws prohibiting discrimination based on race, religion, color, age, sex, or national origin;(2) include a termination clause based on safety concerns, interference with the free and safe flow of traffic, or a determination that the sponsorship agreement is not in the public interest;(3) provide the specific amount of the donation;(4) state the fee or fees charged by the vendor to administer the acknowledgment program (directly or indirectly paid by the participating sponsor);(5) state the specific service being sponsored;(6) describe the method and location of each acknowledgment;(7) provide the location of each acknowledgment sign to include roadway, exit number or crossroad, and county;(8) provide the number and service area of vehicles with acknowledgment decals; and(9) state the date of expiration of agreement.(d) The vendor shall notify the department within three calendar days of receipt of a donation from a participating sponsor. The notification must include:(1) the name of the participating sponsor;(2) the highway-related service for which the donation was made;(3) a description of the method and location of each acknowledgment;(4) the general location for each acknowledgment sign;(5) the number and service area of vehicles requested to receive acknowledgment decals;(6) the name, logo, or image requested by the participating sponsor to be placed on the sign or decal; and(7) the date on which the sponsorship agreement expires.(e) The department will determine the location of each acknowledgment sign or the vehicles on which decals may be affixed, as applicable, and promptly will provide the determination to the vendor. The vendor shall maintain the sign location or decal approval information in the participating sponsor's file.(f) The vendor shall furnish an annual report to the department. The annual report must include a listing of all participating sponsors for which the vendor has accepted a donation under an existing agreement, administrative fees collected, and the annual revenue submitted to the department for each program category. The department, in its discretion, may require one or more other reports from a vendor.(g) The vendor shall furnish, in a format prescribed by the department, a monthly electronic inventory to the department. The inventory shall include:(1) a list of all participating sponsors in the acknowledgment program for which the vendor is responsible;(2) contact information on each participating sponsor including address and key contact name and telephone numbers;(3) a description of the method and location of each acknowledgment;(4) the location information for each acknowledgment sign, as provided at the time of installation;(5) the number and service area of vehicles with acknowledgment decals; and(6) the date of expiration of the agreement for each participating sponsor.(h) If the department determines that a regulatory, warning, or guide sign is needed at a location, an acknowledgment sign at or planned for that location will be removed or relocated. The vendor, as directed by the department, will notify the participating sponsor of the change. If an acknowledgment sign is removed and not relocated within 24 hours of the time of removal, the vendor may extend the participation agreement for a period equal to the number of days in which the acknowledgment sign was not posted.(i) The department may award one or more contracts for professional services to market, administer, recruit, and secure sponsors for the acknowledgment program.</content><note type="source"><p>Source Note: The provisions of this §12.354 adopted to be effective February 21, 2013, 38 TexReg 1001; amended to be effective February 20, 2014, 39 TexReg 999; amended to be effective October 16, 2024, 49 TexReg 8405.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c12/scK/s12.355"><num value="12.355">§12.355</num><heading>Acknowledgment Signs and Decals</heading><content>(a) An acknowledgment sign must comply with the requirements of the Texas Manual on Uniform Traffic Control Devices issued by the department, including the size and format requirement.(b) Regulatory, warning, and guidance signs take precedence over an acknowledgment sign.(c) An acknowledgment sign will be placed near the site for which the associated donation was offered.(d) Except as provided in subsection (f) of this section, acknowledgment signs will be placed at least 1 mile apart from each other if facing in the same direction and associated with the same highway related purpose.(e) An acknowledgment sign may not be appended to any other sign, sign assembly, or other traffic control device.(f) Acknowledgement sign or decal installation must comply with all applicable department standards.(g) An acknowledgement decal:(1) must be approved by the department;(2) must be installed on the rear sides of the vehicle;(3) must be clearly visible to the traveling public;(4) may not interfere with official department markings on vehicles;(5) may include the words "Sponsored by; and(6) subject to §12.353(h) of this subchapter, may include one or more of the participating sponsor's name, image, or logo.(h) If a donation is made for a rest area or travel information center the vendor:(1) may install one acknowledgment sign for each direction of travel on the highway mainline; and(2) may install an acknowledgment sign in the rest area or travel information center if that sign is not visible to the highway mainlane traffic and does not pose a safety risk to the rest area or travel information center users.</content><note type="source"><p>Source Note: The provisions of this §12.355 adopted to be effective February 21, 2013, 38 TexReg 1001; amended to be effective February 20, 2014, 39 TexReg 999; amended to be effective October 16, 2024, 49 TexReg 8405.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p1/c13"><num value="13">CHAPTER 13</num><heading>MATERIALS QUALITY</heading><subchapter identifier="/us/state/tx/tac/t43/p1/c13/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL</heading><section identifier="/us/state/tx/tac/t43/p1/c13/scA/s13.7"><num value="13.7">§13.7</num><heading>New Product Evaluation</heading><content>(a) Purpose. The purpose of this section is to provide for the evaluation of new products to determine whether such a product may be used by the department in carrying out its functions and duties.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Department--The Texas Department of Transportation.(2) Executive director--The executive director of the Texas Department of Transportation.(3) Person--Includes an individual, corporation, association, and any other legal entity.(c) Application.(1) To submit a product for evaluation, a person must submit to the executive director or the executive director's designee an application in a form prescribed by the department.(2) The department may request that the person submit additional information, such as test reports, engineering reports, or other information citing the economic, environmental, or engineering benefits of the product.(3) A person who submits an application for a patented product must provide the department with a written certification that the person is the holder of the patent, or has rights to market the product under license by the patent holder.(4) An application form may be obtained from the department's Internet site by searching on the phrase: product evaluation.(d) Restrictions.(1) A department determination of product acceptability does not:(A) obligate the department to procure the product or require any of its contractors to procure the product for use on department projects; or(B) constitute endorsement or finding of suitability of use other than for the department.(2) A person may not represent a determination of product acceptability as an endorsement or finding of suitability of the product.</content><note type="source"><p>Source Note: The provisions of this §13.7 adopted to be effective September 15, 2010, 35 TexReg 8385.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p1/c15"><num value="15">CHAPTER 15</num><heading>FINANCING AND CONSTRUCTION OF TRANSPORTATION PROJECTS</heading><subchapter identifier="/us/state/tx/tac/t43/p1/c15/scE"><num value="E">SUBCHAPTER E</num><heading>FEDERAL, STATE, AND LOCAL PARTICIPATION</heading><section identifier="/us/state/tx/tac/t43/p1/c15/scE/s15.50"><num value="15.50">§15.50</num><heading>Purpose</heading><content>This subchapter describes federal, state, and local responsibilities for cost participation in highway improvement and other transportation projects.</content><note type="source"><p>Source Note: The provisions of this §15.50 adopted to be effective June 16, 1995, 20 TexReg 4122; amended to be effective September 26, 1996, 21 TexReg 8957; amended to be effective February 21, 1999, 24 TexReg 1194; amended to be effective July 17, 2019, 44 TexReg 3551.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scE/s15.51"><num value="15.51">§15.51</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--The Texas Transportation Commission.(2) Construction cost--All direct and indirect costs identified by the department's cost accounting system to a highway improvement or other transportation project, other than for right of way acquisition, preliminary engineering, and construction engineering.(3) Construction engineering cost/expenses--Engineering or project administration costs and expenses incurred, including indirect costs and expenses identified by the department's cost accounting system, on a highway improvement or other transportation project after contract award.(4) Department--The Texas Department of Transportation.(5) District office--One of the 25 geographical areas, managed by a district engineer, in which the department conducts its primary work activities.(6) Economically disadvantaged county--A county described by Transportation Code, §222.053(a) or (a-1), as determined from data provided by the Texas Comptroller of Public Accounts and the Federal Emergency Management Agency as appropriate.(7) Eligible utilities--Costs of utility adjustments, required by a highway improvement or other transportation project, that are eligible, in accordance with federal and state law, for reimbursement by the department.(8) Executive director--The executive director of the department, or a designee.(9) Federal funds--Financial assistance provided by the federal government for highway improvement and other transportation projects.(10) Highway improvement project--A project which provides for the design, construction, improvement, or enhancement of a public road, including bridges, culverts, or other appurtenances related to public roads, either on or off the state highway system.(11) Local government--Any county, city, other political subdivision of this state, or special district that has the authority to finance a highway improvement or other transportation project.(12) Local participation--Financial assistance provided by a local government to participate in costs associated with highway improvement or other transportation projects.(13) Matching funds/participation ratio--Those portions of funds required or chargeable for the contribution toward a highway improvement or other transportation project's cost by a local government.(14) National Highway System (NHS)--A part of the National Intermodal Transportation System consisting of the National System of Interstate and Defense Highways and those principal arterial roads which are essential for interstate and regional commerce and travel, national defense, intermodal transfer facilities, and international commerce and border crossings as designated by the United States Congress by criteria set forth in federal law.(15) Off-State Highway System Bridge Program--A federally mandated program by which federal funds are made available to replace or rehabilitate bridges under the jurisdiction of a local government and not on the state highway system.(16) Preliminary engineering cost/expenses--Costs and expenses incurred, including indirect costs and any other expenses identified by the department's cost accounting system, on a highway improvement project before construction contract award.(17) Reconstruction--The primary activities involving the rebuilding of a segment of highway along the existing route as well as those associated with the acquisition of rights of way where necessary to upgrade to current standards.(18) Rehabilitation--The primary activities to restore, or re-establish in good condition, a segment of highway (not including the construction of additional travel lanes, other than high occupancy vehicle lanes or auxiliary lanes).(19) Reservoir agency--A public or private agency that has the authority to construct, maintain, or operate a reservoir facility.(20) Right of way acquisition--That process identified with the procurement of real property, access rights, mineral rights, and easements permitted in accordance with state law for the construction of approved highway improvement or other transportation projects.(21) Right of way costs--All direct and indirect costs identified by the department's cost accounting system for the acquisition of land or an interest in land necessary for the development of a highway improvement or other transportation project (including access rights to abutting properties, eligible utility relocation/adjustment costs, and other direct expenses when specified in the agreement).(22) State funds--Money received by the department, other than federal funds, funds in excess of minimum requirements, or local participation, to be expended for highway improvement and other transportation projects.(23) State highway system--The system of highways in the state included in a comprehensive plan prepared by the department's executive director under the direction and with the approval of the commission in accordance with Transportation Code, §201.103.(24) State highway system routes--Those state numbered routes designated as a part of the state highway system.(25) Transportation project--A transportation improvement project or transportation-related program that is not a highway improvement project and that is fully or partially funded with state or federal funds.(26) Utility relocation/adjustment costs--Costs of work related to the adjustment, relocation, and removal of utility facilities accomplished in accordance with §21.21 of this title (relating to State Participation in Relocation, Adjustment, and/or Removal) and Chapter 21, Subchapter C of this title (relating to Utility Accommodation).</content><note type="source"><p>Source Note: The provisions of this §15.51 adopted to be effective June 16, 1995, 20 TexReg 4122; amended to be effective September 26, 1996, 21 TexReg 8957; amended to be effective January 1, 1998, 22 TexReg 12090; amended to be effective November 22, 1998, 23 TexReg 11661; amended to be effective February 21, 1999, 24 TexReg 1194; amended to be effective September 19, 2002, 27 TexReg 8776; amended to be effective January 9, 2005, 29 TexReg 12241; amended to be effective April 19, 2012, 37 TexReg 2686; amended to be effective May 14, 2014, 39 TexReg 3733; amended to be effective July 17, 2019, 44 TexReg 3551; amended to be effective December 4, 2019, 44 TexReg 7416.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scE/s15.52"><num value="15.52">§15.52</num><heading>Agreements</heading><content>This section describes the contents of the department's funding agreement with a local government for a highway improvement or other transportation project and the responsibilities of the parties to such an agreement. The department may refuse to enter into an agreement with a local government that has not previously complied with the financial obligations under an agreement entered into under this subchapter.(1) Right of entry. If the local government is the owner of the project site, it shall permit the department or its authorized representative to occupy the site to perform all activities required to execute the work. If the department is the owner of the project site, it shall permit the local government or its authorized representative to occupy the site to perform all approved activities required to execute the work.(2) Right of way and utility relocations and adjustments. The local government will provide all necessary right of way and utility relocations and adjustments, whether publicly or privately owned, in accordance with §15.55 of this subchapter (relating to Construction Cost Participation). Existing utilities will be relocated and adjusted by the local government with respect to location and type of installation in accordance with the requirements of the department under §21.21 of this title (relating to State Participation in Relocation, Adjustment, and/or Removal) and Chapter 21, Subchapter C of this title (relating to Utility Accommodation).(3) Responsibilities of the parties. The local government and the department shall identify in the agreement the responsibilities of each party. Responsibilities assigned to the local government must comply with subparagraph (A) of this paragraph and have the approvals required by subparagraph (B) of this paragraph.(A) Local government performance and management of projects. For state highway improvement projects and other transportation projects using state or federal funds, the agreement between the department and a local government may provide for the local government to:(i) perform a highway improvement project on the state highway system using employees under the direct control of the local government;(ii) outsource preliminary project engineering and design, bid opening, contract award, and construction management of an improvement project for which federal or state reimbursement is requested;(iii) contract for highway construction; or(iv) perform other projects and programs as authorized by law.(B) Approval authority. Before a local government may perform an act described in subparagraph (A) of this paragraph, the executive director must authorize the local government to perform that act. The executive director may also approve the performance by employees of the local government of projects or activities appurtenant to a state highway, including drainage facilities, surveying, traffic counts, driveway construction, landscaping, guardrails, and other items incidental to the roadway itself, such as signing, pavement markings, signals, illumination, and traffic management systems.(C) Conditions. A local government may perform an act described in subparagraph (A) of this paragraph only if the following conditions are met:(i) the local government must commit in the agreement to comply with all federal, state, and department requirements, standards, and specifications, and agree to forfeit any claim to federal and state reimbursement if it fails to comply;(ii) the project must be authorized by the commission in the current Unified Transportation Program, Statewide Transportation Improvement Program, or a specific minute order;(iii) a project on the state highway system performed or managed by a local government must be operationally beneficial to the state;(iv) a roadway construction project requested by the local government that is to be on the state highway system, and for which local management is proposed, must be funded at least 50 percent from a non-federal and non-state source, unless a lesser percentage is approved by the executive director;(v) a project that includes the local government improving freeway mainlanes on the state highway system must have the express written approval of the executive director;(vi) the local government must agree to pay any cost overruns in addition to its local participation on an off-state highway system bridge program project for which local management is proposed; and(vii) the department must review and approve all plans, contract awards, and change orders.(D) Approval. Prior to execution of the funding agreement, a local government must receive written approval by the executive director to perform or manage one or more elements of a highway improvement or other transportation project. In determining whether to recommend approval or disapproval of a project, the department will evaluate the following criteria:(i) availability of department resources to perform or manage the highway improvement or other transportation project in an efficient and timely manner;(ii) the demonstrated capability of the local government to perform the type of work proposed or to award and manage a contract for that work in a timely manner, consistent with federal, state, and department regulations, standards, and specifications;(iii) the percentage of total project cost to be provided by the local government;(iv) the department's determination of cost effectiveness of local performance of the work as compared to the department's performance of the project; and(v) any other considerations relating to the benefit of the state, the traveling public, and the operations of the department.(4) Funding arrangement. The agreement will specify the funding arrangement designated by the department. Funding arrangements in the agreement shall include any adjustments required by §15.55 of this subchapter. The funding arrangement for drainage construction costs will be as specified under §15.54(e) of this subchapter (relating to Construction). Available funding types are as follows:(A) Fixed price. The fixed price amount will be based on the department's estimated cost of the work to be performed.(i) In determining the fixed price amount, the department will consider:(I) eligibility of local government requested work for federal or state cost participation;(II) the department's experience in performing or managing the proposed type of work;(III) the clarity of defining the local government's proposed work scope and the department's ability to accurately estimate its cost; and(IV) any other considerations relating to the benefit of the state, the traveling public, and the operations of the department.(ii) A local government is responsible for the fixed price amount, which is not subject to adjustment unless:(I) differing site conditions are encountered;(II) further definition of the local government's requested scope of work identifies greatly differing costs from those estimated;(III) work requested by the local government is determined to be ineligible for federal participation; or(IV) the adjustment is mutually agreed to by the department and the local government.(B) Specified percentage. The local government is responsible for a specified percentage of actual project costs.(i) Minimum percentage participation amounts for preliminary engineering, construction engineering, construction, right of way, and eligible utilities for various state and federal funding programs will be designated by the department. In addition to the designated specified percentages, with this funding type, the local government is also responsible for the direct cost of any work included in the project which is ineligible for federal or state participation and all project costs that are greater than the maximum state and federal participation specified in the funding agreement between the department and the local government.(ii) For federally funded non-construction programs, the local government is responsible for any required match and for any work included that is ineligible for federal or state participation.(C) Periodic.(i) The executive director may approve a local government to make periodic payments of its funding share only if:(I) the periodic payments sought are based on the estimated cost for the work for which the funds are received and the local government proposes a schedule to repay the entire amount; and(II) the local government does not have a delinquent obligation to the department, as defined in 5.10 of this title (relating to Collection of Debts).(ii) In approving a request for periodic payments, the executive director will consider:(I) inability of the local government to pay its total funding share prior to the department's scheduled date for contract letting, based upon population level, bonded indebtedness, tax base, and tax rate;(II) past payment performance;(III) needs of the department for delivery of the project to proceed in advance of receiving local funding participation;(IV) whether the project is located in a local government that consists of all or a portion of an economically disadvantaged county; and(V) any other considerations relating to the benefit of the state, the public, and the operations of the department.(D) Off-State Highway System Bridge Program Fixed Amount. For projects funded in the Off-State Highway System Bridge Program, the local government is responsible for a fixed amount that is based on the specified percentage of the estimated direct costs for preliminary engineering, construction engineering, and construction, and for the actual direct costs for right of way and eligible utilities. The estimated direct costs that will be used to establish the fixed amount under this subparagraph, are based on the department's estimate of the eligible work at the time the agreement is executed. The local government is responsible for the estimated direct cost of any project cost item or portion of a cost item that is not eligible for federal participation under the Highway Bridge Program, 23 U.S.C. §144 and Highway Bridge Replacement and Rehabilitation Program, 23 C.F.R. §650 Subpart D. The fixed amount under this subparagraph will be adjusted through the execution of an amendment to reflect additional costs resulting from changes made at the request of the local government, either during preliminary engineering or construction.(5) Interest. The department will not pay interest on funds provided by the local government. Funds provided by the local government will be deposited into, and retained in, the state treasury.(6) Amendments. In the case of significantly differing site conditions or other mutually agreed upon changes in the scope of work authorized in the agreement, the department, and the local government will amend the funding agreement, setting forth the reason for the change and establishing the revised participation to be provided by the local government.(7) Payment provision. The agreement will establish the conditions for payment by the local government, including, but not limited to, the method of payment and the time of payment.(A) Fixed price. If a fixed price funding arrangement is used, the fixed price amount is not subject to adjustment, except as provided for in paragraph (4)(A)(ii) of this section.(B) Specified percentage.(i) Upon execution of the agreement or at a later date, unless periodic payments have been requested by the local government and approved by the executive director, the local government will pay, as a minimum, its funding share for the estimated cost for any right of way and preliminary engineering for the project. Unless periodic payments have been requested by the local government and approved by the executive director, the local government, before the department's scheduled date for construction contract letting, will remit to the department an amount equal to the remainder of the local government's funding share for the project.(ii) After the project is completed the final cost will be determined by the department, based on its standard accounting procedures. If it is found that the amount received is insufficient to pay the local government's funding share, then the department will notify the local government of the amount of the difference and the local government shall promptly transmit that amount to the department. If it is found that the amount received is in excess of the local government's funding share, the excess funds paid by the local government shall be returned.(C) Periodic. After a periodically paid project is completed, the final cost will be determined by the department based on its standard accounting procedures. If it is found that the amount received is insufficient to pay the local government's funding share, then the department will notify the local government of the amount of the difference and the local government shall promptly transmit that amount to the department. If it is found that the amount received is in excess of the local government's funding share, the excess funds paid by the local government shall be returned.(D) Off-State Highway System Bridge Program. For projects funded in the Off-State Highway System Bridge Program, the department will determine the final cost after the project is completed, based on its standard accounting procedures. The department will notify the local government of any amount due for payment of costs related to changes made at the request of the local government. The local government shall promptly transmit the required amount to the department.(E) Valuation of in-kind contributions. Before the department may enter an agreement under which goods, services, or real estate are accepted rather than financial consideration, the department will document a value for the in-kind contributions consistent with 49 C.F.R. §18.24.(8) Termination. If the local government withdraws from the project after the agreement is executed, it shall be responsible for all direct and indirect project costs incurred by the department for the items of work in which the local government is participating. If costs for local government requested items increase significantly due to differing site conditions, determination that local government requested work is ineligible for federal or state cost participation, or more thorough definition of the local government's proposed work scope, and the local government and the department are not able to execute a mutually agreeable amendment, the department may terminate the agreement. In this instance, the department will reimburse local government remaining funds to the local government within 90 days of termination.(9) Acknowledgment. The local government must acknowledge in the agreement that while not an agent, servant, nor employee of the state, it is responsible for its own acts and deeds and for those of its agents or employees during the performance of the work authorized in the contract.(10) Local regulations. If any existing, future or proposed local ordinance, commissioners court order, rule, policy, or other directive, including, but not limited to, outdoor advertising or storm water drainage facility requirements, that is more restrictive than state or federal regulations, or any other locally proposed change, including, but not limited to, plats or re-plats, results in any increased cost to the department for a highway improvement or other transportation project, the local government must commit in the agreement to being responsible for all increased costs associated with the ordinance, order, policy, directive, or change, regardless of the funding arrangement specified in the agreement.</content><note type="source"><p>Source Note: The provisions of this §15.52 adopted to be effective September 26, 1996, 21 TexReg 8957; amended to be effective September 23, 1997, 22 TexReg 9260; amended to be effective January 1, 1998, 22 TexReg 12090; amended to be effective November 22, 1998, 23 TexReg 11661; amended to be effective February 21, 1999, 24 TexReg 1194; amended to be effective August 20, 2000, 25 TexReg 7781; amended to be effective September 20, 2001, 26 TexReg 7126; amended to be effective September 19, 2002, 27 TexReg 8776; amended to be effective January 9, 2005, 29 TexReg 12241; amended to be effective March 17, 2011, 36 TexReg 1693; amendedto be effective April 19, 2012, 37 TexReg 2686; amended to be effective September 18, 2014, 39 TexReg 7351; amended to be effective June 15, 2016, 41 TexReg 4293; amended to be effective July 17, 2019, 44 TexReg 3551.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scE/s15.53"><num value="15.53">§15.53</num><heading>Preliminary and Construction Engineering Expenses</heading><content>(a) Purpose. This section defines the responsibility of local governments for preliminary engineering and construction engineering expenses associated with the development of highway improvement projects.(b) Funding. Preliminary and construction engineering expenses may be funded by the commission at the entire expense of the department, with local participation, and/or with federal participation, in accordance with criteria set forth by federal law and regulations. Any required local participation is subject to adjustment under §15.55 of this title (relating to Construction Cost Participation).</content><note type="source"><p>Source Note: The provisions of this §15.53 adopted to be effective September 26, 1996, 21 TexReg 8957; amended to be effective January 1, 1998, 22 TexReg 12090; amended to be effective July 17, 2019, 44 TexReg 3551.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scE/s15.54"><num value="15.54">§15.54</num><heading>Construction</heading><content>(a) Purpose. This section describes the conditions under which state, federal and local financing of construction costs are to be shared.(b) Funding. Construction costs may be funded by the commission at the entire expense of the department, with local participation, and/or with federal participation, as described in §15.55 of this title (relating to Construction Cost Participation), and in accordance with criteria set forth by federal and state law and regulations. The local government shall also be responsible for the total cost of any work included which is ineligible for federal or state participation as specified in §15.52 of this title (relating to Agreements).(c) Sidewalks. The department will also provide for sidewalk construction, accomplished in accordance with the requirements of the Americans with Disabilities Act and other applicable state and federal laws, on designated state highway system routes:(1) when replacing an existing sidewalk;(2) where highway construction severs an existing sidewalk system (the state will make connections within highway right of way to restore sidewalk system continuity); or(3) where pedestrian traffic is causing or is expected to cause a safety conflict.(d) Control of Access on Freeway Mainlanes.(1) For facilities with full control of access, such as interstate highways or freeways developed by commission designation pursuant to Transportation Code, Chapter 203, access to the main travel lanes is fully controlled through designation, purchase of access rights, or provision of frontage roads.(2) The department will include frontage roads in the planning stage of highways with full access control when:(A) it is necessary to unlandlock the remainder of a parcel of land which has a value equal to or nearly equal to the cost of the frontage road;(B) the appraised damages, resulting from the absence of frontage roads at the time of planning, would exceed the cost of the frontage roads; or(C) it is necessary to restore circulation of local traffic due to local roads or streets being severed or seriously impaired by the construction of the controlled access highway, and an economic analysis shows the benefits derived more than offset the costs of constructing and maintaining the frontage roads.(3) In those instances where requests for additional frontage roads are received during or subsequent to the planning stage or after the freeway has been constructed, they may be considered and placed in order of the priority of highway needs.(A) When right of way and utility adjustment costs are shared with a local government on a standard participation basis applicable to the highway designation, the department may assume 100% responsibility for additional frontage road construction as follows:(i) on relatively short sections of frontage roads where through lane traffic is experiencing high accident rates due to local access and where such construction can be expected to substantially improve safety; or(ii) in heavily traveled urban corridors where gaps occur in the existing frontage road systems, and closing these frontage road gaps will restore system continuity and provide a cost-effective method of enhancing traffic operations in the corridor.(B) The department may assist a requesting local government in the construction of additional frontage roads as follows:(i) where a usable section of frontage road that will be of benefit to the traveling public is to be developed (usable section being defined as an addition or extension from a cross road separation to cross road separation or connecting to a public roadway or major traffic generator);(ii) where such frontage road construction is judged to not adversely impact existing traffic operations or safety;(iii) where the department is responsible for design and construction of the added frontage roads; and(iv) except as provided in subparagraph (E) of this paragraph, and as adjusted under §15.55 of this title (relating to Construction Cost Participation), when the requesting local government furnishes 100% of needed right of way and utility adjustment costs and 50% of the cost of construction, including preliminary and construction engineering.(C) The department may approve additional frontage road construction, which is 100% funded by the requesting local government as follows:(i) if the frontage road construction primarily provides new or improved access to abutting property and does not necessarily provide a usable section as defined in subparagraph (B)(i) of this paragraph (a type of addition that would provide limited benefits to the general traveling public); and(ii) except as provided in subparagraph (E) of this paragraph, where the department is responsible for designing and constructing the frontage road and the requesting local government is responsible for 100% of the construction, right of way, and utility adjustment costs including preliminary and construction engineering.(D) Where right of way costs are 100% the responsibility of the requesting local government, relocation assistance benefits will also be 100% the responsibility of the local government and must be accomplished in compliance with department policies and procedures.(E) The department may waive any one or more of the cost conditions stated in subparagraphs (B)(iv) and (C)(ii) of this paragraph, provided that the waiver is first approved by written order of the commission. In approving a waiver, the commission will base its decision on consideration of the population level, bonded indebtedness, tax base, and tax rate of the local government involved, or other conditions the commission deems pertinent.(4) For additional frontage roads requested subsequent to the planning stage or after the freeway has been constructed, control of access as originally conceived for the facility may be modified to allow access to the proposed frontage road only to the extent as may be permitted by safety considerations and in keeping with department policies and procedures. The sale or disposal of access rights shall be accomplished in accordance with Chapter 21, Subchapter F of this title (relating to Disposal of Real Estate Interests).(5) Access driveway connections shall be for securing access to abutting property. Costs and provision thereof shall be in accordance with the criteria and responsibilities established in §§11.50-11.55 of this title (relating to Access Connections to State Highways).(e) Drainage Construction Costs.(1) In general, it shall be the duty and responsibility of the department to construct, at its expense, a drainage system within state highway right of way, including outfalls, to accommodate the storm water which originates within and reaches state highway right of way from naturally contributing drainage areas.(2) Where a drainage channel, man-made, natural, or a combination of both, is in existence prior to the acquisition of highway right of way, including right of way for widening the highway, it shall be the duty and responsibility of the state to provide for the construction of the necessary structures and/or channels to adjust or relocate the existing drainage channel in such a manner that the operation of the drainage channel will not be injured. The construction expense required shall be considered a construction item. The acquisition of any land required to accomplish this work shall be considered a right of way item, with cost participation to be in accordance with §15.55 of this subchapter (relating to Construction Cost Participation).(3) The department, at its expense, shall adjust the structure and/or channels within the existing highway right of way as necessary to accommodate the approved drainage plan:(A) where an existing highway crosses an existing drainage channel, and a political unit or subdivision with statutory responsibility for drainage develops a drainage channel to improve its operation, both upstream and downstream from the highway;(B) after the state establishes that the drainage plan is logical and beneficial to the state highway system;(C) where there is no storm water being diverted to the highway location from an area which, prior to the drainage plan, did not contribute to the channel upstream of the highway; and(D) after construction on the drainage channel has begun or there is sufficient evidence to insure that the drainage plan will be implemented.(4) A drainage facility may not be built across state highway right of way unless the person building the facility pays the entire costs of construction and maintenance. The design, construction, operation, and maintenance procedures for the facility within state highway right of way must be acceptable to the department.(5) A local government may not use a department drainage system unless it pays for the entire cost of collecting and carrying its water to the department system and its proportional share of all costs relating to the system and outfall. The local government's proportional share shall be the ratio of cubic feet of water per second that it delivers into the department system, divided by total cubic feet of water per section that is carried by the system. The local government requesting the drainage diversion shall indemnify the state against or otherwise acknowledge its responsibility for damages or claims for damages resulting from such diversion.(f) Highway adjustments for reservoir construction.(1) Where existing highways and roads provide a satisfactory traffic facility in the opinion of the department and no immediate rehabilitation or reconstruction is contemplated, it shall be the responsibility of the reservoir agency, at its expense, to replace the existing road facility disturbed by reservoir construction in accordance with the current design standards of the department, based upon the road classification and traffic needs.(2) Where no highway or road facility is in existence but where a route has been designated for construction across a proposed reservoir area, the department will bear the cost of constructing a satisfactory facility across the proposed reservoir, on a line and grade for normal conditions of topography and stream flow, and any additional expense as may be necessary to construct the highway or road facility to line and grade to comply with the requirements of the proposed reservoir shall be borne by the reservoir agency.(3) In soil conservation and flood control projects involving the construction of flood retarding structures where a highway or road operated by the department will be inundated at less than calculated 50-year frequencies by the construction of a floodwater retarding structure, the soil conservation service or one of its cooperating agencies will provide funds as necessary to raise or relocate the road above the water surface elevation which might be expected at 50-year intervals. In those cases where a highway or road operated by the department will not be inundated by floods of less than 50-year calculated frequency, it will be the responsibility of the department to underwrite this hazard for the general welfare of the state and continue to operate the road at its existing elevation until such time as interruption and inconvenience to highway travel may necessitate raising the grade.(g) Irrigation crossings.(1) Where an irrigation facility is in existence prior to the acquisition of highway right of way, including right of way for widening, and the highway project will interfere with such a facility, the following provisions shall govern.(A) If, at the place of interference, the irrigation facility consists primarily of an irrigation canal which crosses the entire width of the proposed right of way, this shall be considered a crossing and it shall be the duty and responsibility of the department to construct and maintain an adequate structure and to make the necessary adjustments or relocations of minor laterals and pumps, etc., associated with the crossing, in such a manner that the operation of the irrigation facility will not be injured. The construction work at a crossing will be considered a construction item with the expense to be borne by the department. The acquisition of any land required to accomplish the adjustments and/or relocation shall be a right of way item.(B) Any irrigation facility encountered which does not cross the right of way and consists primarily of a longitudinal canal and/or associated irrigation appurtenances such as pumps, gates, etc., which must be removed and relocated shall be considered a right of way item.(C) In those cases where both crossing and longitudinal adjustments or relocation of irrigation facilities are encountered, each segment shall be classified in accordance with subparagraph (A) and (B) of this paragraph.(2) An irrigation facility may not be built across state highway right of way unless the person building the facility pays the entire cost of construction and maintenance. The design, construction, operation, and maintenance procedures for the facility within highway right of way must be acceptable to the department.(h) Traffic signals and continuous and safety lighting systems. The installation, maintenance, and operation of traffic signals and continuous and safety lighting systems shall be accomplished in accordance with §25.5 of this title (relating to Installation, Operation, and Maintenance of Traffic Signals) and §25.11 of this title (relating to Continuous and Safety Lighting Systems).</content><note type="source"><p>Source Note: The provisions of this §15.54 adopted to be effective September 26, 1996, 21 TexReg 8957; amended to be effective January 1, 1998, 22 TexReg 12090; amended to be effective November 22, 1998, 23 TexReg 11661; amended to be effective February 21, 1999, 24 TexReg 1194; amended to be effective January 9, 2005, 29 TexReg 12241.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scE/s15.55"><num value="15.55">§15.55</num><heading>Construction Cost Participation</heading><content>(a) Required cost participation. The commission may require, request, or accept from a local government matching or other funds, rights-of-way, utility adjustments, additional participation, planning, documents, or any other local incentives.(1) Participation ratios. Except as provided in subsections (b) and (d) of this section, the agreement between the local government and the department must include participation ratios as described in subsection (c) of this section.(2) In-kind contributions. The department will accept in-kind contributions for local government matching or other funds only under agreements that do not include highway construction.(b) Economically disadvantaged counties. In evaluating a proposal for a highway improvement project with a local government that consists of all or a portion of an economically disadvantaged county, the executive director shall, for those projects in which the commission is authorized by law to provide state cost participation, adjust the minimum local matching funds requirement after receipt of a request for adjustment under paragraph (4) of this subsection.(1) Commission certification. The commission will certify a county as an economically disadvantaged county on an annual basis as soon as possible after the comptroller reports on the economic indicators listed in Transportation Code, §222.053(a).(2) Local match adjustment for a county described by Transportation Code, §222.053(a). In determining the adjustment to the local matching funds requirement, and a local government's effort and ability to meet the requirement, the commission will consider a local government's:(A) population level;(B) bonded indebtedness;(C) tax base;(D) tax rate;(E) extent of in-kind resources available; and(F) economic development sales tax.(3) Local match adjustment for a county described by Transportation Code, §222.053(a-1). The adjustment will be equivalent to the highest adjustment rate set in the last year the county was considered to meet the criteria set out in Transportation Code, §222.053(a).(4) Request for adjustment. The city council, county commissioners court, district board, or similar governing body of a local government that represents all or a portion of an economically disadvantaged county, shall submit a request for adjustment to the local district office of the department. The request will include, at a minimum:(A) the proposed project scope;(B) the estimated total project cost;(C) a breakdown of the anticipated total cost by category (e.g., right-of-way, utility adjustment, plan preparation, construction);(D) the proposed participation rate;(E) the nature of any in-kind resources to be provided by the local government;(F) the rationale for adjusting the minimum local matching funds requirement; and(G) any other information considered necessary to support a request.(5) Timing of determination. The executive director will determine whether to make an adjustment at the time the local government submits a proposal for a highway improvement or other transportation project.(6) Definition. For purposes of this subsection, "executive director" means the executive director or his or her designee, not below the level of district engineer or division or office director.(c) Participation ratios. The department will establish federal, state, and local cost participation ratios for highway improvement or other transportation projects, subject to the availability of funds to the department. In-kind participation will be valued as described in §15.52(7)(E) of this subchapter (relating to Agreements).(d) Off-state highway system bridge program.(1) Definitions. The following words and terms, when used in this subsection, shall have the following meanings, unless the context clearly indicates otherwise.(A) Bridge--For an equivalent-match project, a bridge or other mainlane cross-drainage structure, including low water crossings (with or without conduit).(B) Deficient bridge--A bridge having a structural load capacity or other safety condition that is inadequate.(C) District engineer--The chief executive officer in each designated district office of the department.(D) Equivalent-match project--A project in which the local government will improve the structural load capacity or other safety condition of off-state system bridges utilizing 100% local funds.(E) Participation-waived project--An off-state system bridge project in which the state agrees to pay for local participation for eligible preliminary engineering, construction, and construction engineering costs as shown in subsection (c) of this section. This project must be authorized for development only, or for development and construction, on the department's approved Unified Transportation Program, satisfy minimum standards established by the department for off-state system bridges, and meet the additional requirements of this subsection.(F) Safety work--Work performed as part of an equivalent-match project that improves the safety of the project. This work may include, but is not limited to, providing improved structural load capacity, improved hydraulic capacity, increased roadway width, adequate bridge rail, and adequate approach guardrail.(2) Waiver. The district engineer may waive the requirement for a local government to provide the original 10% estimate of direct costs for preliminary engineering, construction engineering, and construction funds on the participation-waived project(s) if the local governmental body commits by written resolution or ordinance, as described in paragraph (4) of this subsection, to spend an equivalent amount of funds for structural improvement or other safety work on another bridge or bridges on the equivalent-match project(s) within its jurisdiction or the jurisdiction of a geographically adjacent or overlapping governmental unit. An equivalent amount includes, but is not limited to, expenditures for direct or indirect costs for structural improvement or other safety work on bridge(s) in the equivalent-match project(s). Work on one or more equivalent-match projects may be credited to one or more participation-waived projects.(3) Eligibility. A local government is eligible for a waiver if:(A) the construction contract for the participation-waived project has not been awarded;(B) work on the equivalent-match project has not begun prior to approval of the waiver (approval of the waiver does not guarantee that the participation-waived project agreement will be executed);(C) the local government is in compliance with load posting and closure regulations as defined in the National Bridge Inspection Standards under 23 C.F.R. §650.303;(D) the bridge on the proposed equivalent-match project(s) is a deficient bridge, or a bridge that is weight restricted for school buses; and(E) the equivalent-match project increases the structural load capacity of the existing bridge, replaces the bridge with a new bridge, or otherwise increases safety, with a minimum upgrade to safely carry expected school bus loading.(4) Request for waiver. To request a waiver, a local government must provide a written request to the district engineer that includes the location(s), description of structural improvement or other safety work proposed, estimated cost for the equivalent-match project(s), and a copy of the local governmental body's resolution or ordinance. The resolution or ordinance must acknowledge assumption of all responsibilities for engineering and construction and complying with all applicable state and federal environmental regulations and permitting requirements for the bridge(s) on the equivalent-match project(s).(5) Considerations. In approving a request for waiver, the district engineer will consider:(A) the type of work proposed for the equivalent-match project(s);(B) regional transportation needs; and(C) past performance under this subsection.(6) Approval. The district engineer will submit a letter to the local government indicating the district engineer's approval or disapproval of the waiver. If disapproved, the letter will state the reasons for disapproval. If the waiver is approved, the letter will state that the local government, for the equivalent-match project(s) will assume:(A) all costs of the work;(B) responsibility for complying with all applicable state and federal environmental regulations and permitting requirements; and(C) responsibility for the engineering and construction necessary for completion of the work.(7) Agreement and conditions.(A) If the district engineer approves the waiver, the local government and the department will enter into an agreement for the participation-waived project as specified in §15.52 of this subchapter. One or more participation-waived project agreements can utilize one or more common or independent equivalent-match projects if the total equivalent-match project amount equals or exceeds the total remaining local participation amount being waived at the time the agreement is executed, and the common agreements are adequately cross-referenced. Previously executed agreements may be amended to incorporate these participation waiver provisions, or to utilize an additional equivalent-match project(s) for any outstanding amount not previously waived, provided the construction contract for the participation-waived project has not been awarded and the equivalent-match work has not begun.(B) Local governments will be allowed a maximum of three years after the contract award of the participation-waived project(s) to complete structural or other safety improvements on the equivalent-match project(s). If more than one participation-waived project utilizes a common equivalent-match project, the time period allowed for completion of the equivalent-match project(s) will begin when the first of the participation-waived projects is awarded. The district engineer may specify a period less than three years for completion of equivalent-match projects if project specific conditions warrant. If specified, the shorter allowable work period must be explicitly stated in the agreement(s). No later than 30 days after completion, documentation of completion of the equivalent-match project(s) requirement will be provided by letter to the district engineer. If the local government fails to adequately complete the equivalent-match project(s), it will be excluded from future waivers under this subsection for a minimum of five years. The district engineer may grant an extension to the three-year completion requirement if a contract for the equivalent-match project(s) has been executed within that three years and the contract timeline for completion is reasonable. In the absence of information suggesting that a shorter or longer period is appropriate, two years or less will be presumed to be a reasonable time, for a maximum of five years to complete the equivalent-match project(s) following award of the programmed bridge. The granting of an extension to the three-year time limit must be done in writing in response to a written request to the district engineer from the local government. The extension approval must specify a new required completion date.(C) With the approval of the district engineer, an equivalent-match project(s) may be substituted by subsequent amendment to the participation-waived project agreement(s). A substitution may be allowed for unforeseen circumstances, including but not limited to, an equivalent-match project that is selected for replacement under some other program of work. Work on the substituted equivalent-match project(s) must be completed within a maximum of three years after the award of the construction contract for the original participation-waived project.(D) The local government is responsible for all of the direct cost of any participation-waived project cost item or portion of a cost item that is not eligible for federal participation under the Federal Highway Bridge Replacement and Rehabilitation Program under 23 U.S.C. §144 and 23 C.F.R. §650 Subpart D. The local government is also responsible for any costs resulting from changes made at the request of the local government.(E) The local government will be responsible for 100% of right of way and utilities for the participation-waived project.(F) A local government located in an economically disadvantaged county that receives an adjustment under subsection (b) of this section may participate in the provisions of this subsection in the amount of its reduced matching funds requirement.(G) The department will not reimburse funds already received by the department under the terms of existing agreements. Funds already received for a specific project(s) may be credited against the local government's required participation for the subsequent participation-waived project agreement(s) for that same project(s).(H) Any equivalent-match project(s) cost that is in excess of the local government's required participation for a specific participation-waived project agreement(s) cannot be credited for use on a future participation-waived project(s).(I) Each equivalent-match project(s) must be specifically identified in the participation-waived project agreement(s) at the time of execution.(J) The local government must pay its funding share of the estimated participation-waived project cost, as provided in §15.52(7)(A) of this subchapter, for any local participation balance that is remaining at the time the project agreement(s) is executed. This balance would include any remaining required local participation amount in excess of the amount waived as a result of credit for equivalent-match work to be performed as part of the agreement.(8) Projects with neighboring states. Local cost participation is not required for a bridge connecting Texas with a neighboring state.</content><note type="source"><p>Source Note: The provisions of this §15.55 adopted to be effective September 26, 1996, 21 TexReg 8957; amended to be effective January 1, 1998, 22 TexReg 12090; amended to be effective January 1, 1998, 22 TexReg 12090; amended to be effective February 21, 1999, 24 TexReg 1194; amended to be effective August 20, 2000, 25 TexReg 7781; amended to be effective November 14, 2001, 26 TexReg 9227; amended to be effective September 19, 2002, 27 TexReg 8776; amended to be effective January 9, 2005, 29 TexReg 12241; amended to be effective January 5, 2006, 30 TexReg 8995; amended to be effective August 19, 2010, 35TexReg7084; amended to be effective April 19, 2012, 37 TexReg 2686; amended to be effective May 14, 2014, 39 TexReg 3733; amended to be effective July 17, 2019, 44 TexReg 3551; amended to be effective December 4, 2019, 44 TexReg 7416.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scE/s15.56"><num value="15.56">§15.56</num><heading>Local Financing of Highway Improvement Projects on the State Highway System</heading><content>(a) Purpose. Transportation Code, Section 222.051 authorizes a local government to finance the construction of an approved project for the state highway system. This section prescribes the conditions under which a local government may finance the construction of an approved highway improvement project, and the conditions under which the commission may approve reimbursement of the local government's contribution. This section also prescribes the conditions under which a local government may finance the construction of a service project.(b) Definitions. The following words and terms when used in this section shall have the following meanings, unless the context clearly indicates otherwise.(1) Approved highway improvement project - A highway improvement project on the state highway system identified in the statewide transportation plan or a regional transportation plan.(2) Construction costs - Costs associated with preliminary engineering, construction engineering, construction, right-of-way acquisition, and all other costs directly related to the approved highway improvement project. For service projects, the construction costs will also include all indirect costs as identified by the department's cost accounting system.(3) Service project - A highway improvement project requested by a local government which provides limited benefits to the general traveling public. These projects are not an integral part of the state transportation system and primarily provide new or improved access to abutting property.(c) Request. A local government may request approval from the department to fund the construction cost of an approved highway improvement project or a service project. The request for an approved highway improvement project shall state whether the local government desires reimbursement of its contribution, subject to the considerations outlined in subsection (e) of this section.(d) Project approval.(1) Approved highway improvement projects.(A) Approval authority. The executive director is authorized to approve requests to finance an approved highway improvement project, based on the considerations in subparagraph (B) of this paragraph.(B) Considerations. In approving a request to finance an approved highway improvement project, the executive director will consider:(i) statewide transportation needs;(ii) regional economic impact;(iii) North American Free Trade Agreement implications;(iv) local government needs;(v) environmental impact and any requirements for environmental mitigation; and(vi) any other considerations relating to the benefit to the state, the traveling public, and the operations of the department.(2) Service Projects.(A) Approval authority. A request to finance a service project may be approved by the following authority, based on the considerations in subparagraph (B) of this paragraph:(i) district engineer for projects with a total cost estimated at less than $300,000;(ii) executive director for projects with a total cost estimated at $300,000 or more.(B) Considerations. In approving a request to finance a service project, the executive director or district engineer will consider:(i) local transportation needs;(ii) regional economic impact;(iii) safety implications of the proposed project;(iv) environmental impact and any requirements for environmental mitigation; and(v) any other considerations relating to the benefit to the state, the traveling public, and the operations of the department.(C) Indirect Costs. For service projects, a local government may request a waiver from the executive director for the collection of indirect costs. In approving the local government's request for a waiver, the executive director will consider:(i) local economic impact,(ii) residual public benefit,(iii) local government needs, or(iv) any other considerations relating to the benefit to the state, the traveling public, or the operation of the department.(3) Agreement and conditions.(A) If the department approves a project under this subsection, the local government and the department will enter into an agreement as specified in §15.52 of this subchapter, except that construction costs shall be as defined in this section.(B) If a local government withdraws from the project after the agreement is executed, it shall be responsible for all direct and indirect project costs incurred by the department for the items of work in which the local government is participating.(C) All aspects of the project will be carried out in compliance with applicable federal and state laws and regulations.(D) The project shall be designed in accordance with the latest department policies, procedures, standards, and guidelines. All plans, specifications, and estimates shall be approved by the department prior to advertisement for bids on the project.(e) Reimbursement approval.(1) Considerations. If requested by the local government and if funds are available, the commission may reimburse the local government for all or a portion of its contributions to an approved highway improvement project approved under this section. In approving reimbursement, the commission will consider:(A) statewide transportation needs;(B) needs of the local government;(C) economic benefit to the state; and(D) any other considerations relating to the benefit to the state, the traveling public, and the operations of the department.(2) Agreement. If approved for reimbursement under this subsection, the department will enter into an agreement with the local government as specified in §15.52 of this subchapter.</content><note type="source"><p>Source Note: The provisions of this §15.56 adopted to be effective September 26, 1996, 21 TexReg 8957; amended to be effective September 23, 1997, 22 TexReg 9260; amended to be effective July 23, 2000, 25 TexReg 6810.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c15/scF"><num value="F">SUBCHAPTER F</num><heading>STATE PARK ROADS</heading><section identifier="/us/state/tx/tac/t43/p1/c15/scF/s15.60"><num value="15.60">§15.60</num><heading>State Park Roads</heading><content>(a) Definition. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--Texas Transportation Commission.(2) Department--Texas Department of Transportation.(3) State park--A park administered by the Texas Parks and Wildlife Department with title or lease in the name of the State of Texas.(4) State park road--A public road which is located in or adjacent to a state park, state fish hatchery, state wildlife management area or support facility and is under the jurisdiction and control of the department or the Texas Parks and Wildlife Department with title or lease in the name of the State of Texas.(5) State fish hatchery--A fish hatchery administered by the Texas Parks and Wildlife Department with title or lease in the name of the State of Texas.(6) State wildlife management area--A wildlife management area administered by the Texas Parks and Wildlife Department with title or lease in the name of the State of Texas.(7) Support facility--A facility such as, but not limited to, a headquarters or regional office that supports the operation of state parks, state fish hatcheries, or state wildlife management areas and with title or lease in the name of the State of Texas.(b) In accordance with House Bill 1359, §1.02, 74th Legislature, 1995, for state park roads located in and adjacent to state parks, state fish hatcheries and state wildlife management areas, and roads for support facilities for parks, fish hatcheries, and wildlife management areas, the department will:(1) coordinate with Texas Parks and Wildlife Department for the design, construction, and maintenance of subject roads;(2) provide through memorandum of agreement with Texas Parks and Wildlife Department for the respective responsibilities in developing and completing state park road projects in accordance with state law; and(3) amend such memorandum of agreement as appropriate on a five year basis unless the Texas Parks and Wildlife Department does not desire to extend the terms of the agreement.</content><note type="source"><p>Source Note: The provisions of this §15.60 adopted to be effective June 16, 1995, 20 TexReg 4127; amended to be effective November 22, 1998, 23 TexReg 11664.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c15/scG"><num value="G">SUBCHAPTER G</num><heading>INTERNATIONAL BRIDGES</heading><section identifier="/us/state/tx/tac/t43/p1/c15/scG/s15.70"><num value="15.70">§15.70</num><heading>Purpose</heading><content>Transportation Code, §201.612 provides that a political subdivision or private entity authorized to construct or finance the construction of a bridge over the Rio Grande must obtain approval from the Texas Transportation Commission and the United States under Subchapter IV, Chapter 11, Title 33, United States Code, for the construction of the bridge. Transportation Code, §201.612 directs the department to allow an applicant to concurrently seek approval from the commission and the United States. This subchapter prescribes the procedures and conditions by which a political subdivision or private entity may obtain the approval of the commission.</content><note type="source"><p>Source Note: The provisions of this §15.70 adopted to be effective December 26, 1995, 20 TexReg 10622; amended to be effective September 14, 2006, 31 TexReg 7575.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scG/s15.71"><num value="15.71">§15.71</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Applicant--A political subdivision or private entity authorized by law to construct or finance the construction of a bridge over the Rio Grande.(2) Commission--The Texas Transportation Commission.(3) Competing bridge applicant--An applicant whose project will compete for traffic and revenue and may have social, environmental, traffic congestion, and mobility impact on the study area.(4) Department--The Texas Department of Transportation.(5) District office--One of the 25 geographical areas, managed by a district engineer, in which the department conducts its primary work activities.(6) Metropolitan planning organization--An organization designated in certain urbanized areas to carry out the transportation planning process as required by Title 23, United States Code, §134.(7) Project--The construction or the financing of the construction of a bridge over the Rio Grande.(8) Study area--The area on both sides of the Texas-Mexico border affected by the proposed bridge.</content><note type="source"><p>Source Note: The provisions of this §15.71 adopted to be effective December 26, 1995, 20 TexReg 10622; amended to be effective September 14, 2006, 31 TexReg 7575.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scG/s15.72"><num value="15.72">§15.72</num><heading>New Bridge</heading><content>To obtain commission approval for a project, the political subdivision or private entity must submit an application and comply with all requirements and conditions imposed by this subchapter. Prior to submitting an application to the department, applicants are encouraged to confer with their local department district office. The applicant should direct questions regarding the application and approval process, as well as questions relating to the respective roles and responsibilities of the applicant and the department, to the Transportation Planning and Programming Division (TPP).</content><note type="source"><p>Source Note: The provisions of this §15.72 adopted to be effective December 26, 1995, 20 TexReg 10622; amended to be effective September 14, 2006, 31 TexReg 7575.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scG/s15.73"><num value="15.73">§15.73</num><heading>Preliminary Studies</heading><content>Prior to submitting an application to the department for the approval of a project, an applicant shall conduct a study of the design, financial feasibility, and social and environmental impact of the project, including the effect of any competing applications.(1) Design. The applicant shall provide a preliminary design geometric layout certified by a registered professional engineer to be in accordance with standards and criteria from appropriate design manuals applicable at the date of application. The layout must identify:(A) horizontal and vertical alignments and cross-slope data of the proposed structure showing overall structure length, width, spans, span length, and type of construction, along with dimensions, where applicable, of:(i) lane width;(ii) curb width;(iii) sidewalks;(iv) shoulder width;(v) calculated minimum vertical clearance over other roadways and waterways; and(vi) toll booths and miscellaneous appurtenances;(B) geometric termini locations along with inspection stations and queue lanes where applicable;(C) the location and preliminary layout of approach roadways and intersections on both sides of the border with changes necessitated by the project to existing facilities on both sides of the border; and(D) the location and layout of any other accommodation of buildings or appurtenances deemed necessary by the applicant and any law or regulation governing the operation and maintenance of port of entry operations.(2) Financial feasibility study. An applicant shall conduct a feasibility study to determine the financial viability of the project. The study shall include the following information.(A) A financial overview of the project, which shall include:(i) summary cost estimates for the planning, design, construction, operation, and maintenance of the project; and(ii) a statement of all financing requirements for the project and sources of all financing.(B) A project construction schedule identifying the timing, amount, and source of all cash required to pay for all construction costs.(C) An analysis of the expected financing period of the project, such period to be the greater of 10 years or the time taken to fully pay any and all liabilities incurred for the planning, design, construction, operation, and maintenance of the project plus the time taken to fully pay any and all liability refunding, renegotiations, conversions, and extensions.(i) An applicant that issues or contemplates issuing any form of liability with a term longer than one year within three years of the date of application shall consider a portion of that liability as incurred for the planning, design, construction, operation, and maintenance of the project unless the applicant demonstrates otherwise to the satisfaction of the commission in the financial feasibility study. A liability not less than the cost of construction and not more than the costs of planning, design, and construction shall be considered in the financial feasibility study as if it had been incurred directly for the project.(ii) The term of any liability amount determined in clause (i) of this subparagraph shall be the longest term of any liabilities issued or contemplated by the applicant within three years of the application date plus the time taken to fully pay any and all liability refundings, renegotiations, conversions, and extensions.(D) A detailed analysis of costs over the expected financing period of the project, which shall include:(i) costs of operations by reasonable expense categories for each year; and(ii) costs of maintenance for each year, such costs identifying each major system, structure, and component of the project that is subject to wear or deterioration, and the analysis of such costs stating both the cost and the expected frequency of inspection, repair, renewal, rehabilitation, and/or replacement required to keep the project in like-new condition.(E) A pro forma analysis based on cash basis accounting for each year of planning, design, construction, and the expected financing period of the project showing:(i) anticipated cash receipts, sources of cash receipts, and rates charged to achieve those cash receipts;(ii) anticipated cash disbursements;(iii) anticipated cash balances;(iv) cash used to meet the requirements of any bond sinking fund and loan or liability amortization payment.(F) A description of the methods used in preparing the financial feasibility study, the assumptions contained in the study, and persons and entities responsible for the preparation of the study.(G) An analysis of the need for the project and potential impact on traffic congestion and mobility, and:(i) average annual daily traffic (AADT) in the study area for major arterials and controlled access roadways for both sides of the border for five years preceding the date of the application;(ii) data from any existing international bridge or other international crossing in the study area indicating AADT for the five preceding years;(iii) data from any existing international bridge or other international crossing in the study area indicating average delay time for traffic seeking to use any international bridge or other international crossing for the five preceding years;(iv) projected AADT for the proposed bridge and other crossings in the study area 20 years after completion (projections shall be based on the current department travel demand model, and the process used to make the projections shall be clearly identified and submitted with the data);(v) a comparison of the project with other similar projects already in operation; and(vi) a projection of changes in the free flow of trade caused by the project.(3) Social and environmental impact. An applicant shall conduct a study of the social and environmental impact of the project and shall provide for public involvement and notice to local officials.(A) Environmental documentation. An applicant shall comply with the requirements in Chapter 2 of this title (relating to Environmental Policy) and shall obtain the environmental approvals required for the project prior to submittal of the application. The applicant shall coordinate concurrently with the U.S. Department of State and the department regarding the form and content of an environmental document prepared under Subchapters A and C of Chapter 2 of this title.(B) Public involvement. An applicant shall comply with the public involvement requirements in Chapter 2 of this title that apply to paragraph (3)(A) of this section. Notices of public meetings and public hearings must include:(i) a statement that the applicant intends to submit an international bridge application to the commission;(ii) a description of the proposed bridge, including a description of the design and adjacent facilities and identification of the area to be served; and(iii) instructions that competing bridge applicants may submit information pertaining to the design, financial feasibility, and social and environmental impact of a competing project to the applicant no later than 60 days after the date of the notice.(C) Notice to local officials. The applicant shall send a copy of the notice described in paragraph (3)(B) of this section by first class mail to the county judge of each county within 150 miles of the location of the project and the mayor of each municipality within 50 miles of the location of the project.(4) Analysis of competing applications. An applicant shall address the impact of competing projects (if any) and demonstrate how its submittal is superior to that of any competing bridge applicant.(A) The applicant's preliminary study analysis shall be performed depicting any competing projects. The applicant shall perform an analysis demonstrating the applicant's project as a stand-alone project and, if there is a competing project, an analysis showing both the applicant's project and any competing projects. The analysis reflecting the competing projects must demonstrate how design, traffic, financial, social, and environmental impacts are affected by the competing projects and shall include the rationale for how one project is superior based on these impacts, for example, cost benefits, project viability, better design, and less adverse social and environmental impacts.(B) The applicant will not be required to include an analysis of the competing project unless the competing bridge applicant provides the information described in paragraph (3)(B)(iii) of this section by the deadline specified in that paragraph.</content><note type="source"><p>Source Note: The provisions of this §15.73 adopted to be effective December 26, 1995, 20 TexReg 10622; amended to be effective February 20, 2003, 28 TexReg 1521; amended to be effective September 14, 2006, 31 TexReg 7575.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scG/s15.74"><num value="15.74">§15.74</num><heading>Application</heading><content>To secure approval of a project, an applicant must file an application and 20 copies of the application with the department's executive director or his or her designee who shall serve as department liaison for the project. The application shall be in a form prescribed by the department, and must include:(1) a description of the applicant, including:(A) form of organization under the laws of this state; and(B) history of operations and/or business conducted;(2) a definition of major financial, operating, and business policies of the applicant that will affect operations or the conduct of business, including:(A) key operating conditions; and(B) compliance with existing federal, state, and local laws and regulations;(3) the preliminary study completed in accordance with §15.73 of this subchapter (relating to Preliminary Studies); and(4) any written commitments from the appropriate federal jurisdictions of the United Mexican States to provide adequate roadway connections to the bridge, and similar commitments from state and municipal transportation agencies for any state highway or local street infrastructure necessary to make the bridge fully operational.</content><note type="source"><p>Source Note: The provisions of this §15.74 adopted to be effective December 26, 1995, 20 TexReg 10622; amended to be effective September 14, 2006, 31 TexReg 7575.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scG/s15.75"><num value="15.75">§15.75</num><heading>Department Action</heading><content>(a) Coordination.(1) Upon the receipt of a complete application, the department will submit a copy of the application and request views and comments from the:(A) Department of Public Safety of the State of Texas;(B) Texas Commission on Environmental Quality;(C) Texas Historical Commission;(D) Department of Agriculture;(E) Texas Alcoholic Beverage Commission;(F) Texas Parks and Wildlife Department;(G) Office of the Governor;(H) any other state agency the department determines is appropriate considering the nature of the project; and(I) any entity which may be significantly affected by the project.(2) The department will also seek the advice of the local metropolitan planning organization, if any, as to whether the project will be consistent with the regional transportation plan.(3) The department will allow an agency or entity 20 days from the date the agency or entity receives a copy of the application for the submission of views and comments under this subsection.(b) Process and analysis of application.(1) The department reserves the right to return, or hold, pending corrections submitted by the applicant, an application that the department determines is not in full compliance with the requirements of §15.74 of this subchapter (relating to Application). The department, when returning an application, will identify in writing all areas deemed to be deficient.(2) The department and the commission will not perform work to recast, redraw, calculate, construct, reconstruct, or otherwise produce any element of the preliminary study which is not adequately presented by the applicant.(3) The commission may consider missing, ambiguous, uncertain, or unclear elements in the financial feasibility study as tending to the conclusion that the project has substantial speculative elements in its financing and should not be approved.(4) The commission will consider the impact of a competing bridge, whether proposed, approved, or constructed. The commission will consider information provided by a competing bridge applicant only to the extent the competing bridge applicant timely submitted the information to the applicant under §15.73 of this subchapter. The commission will consider any other information provided by the department.(c) Public hearing. If the department finds that the application meets the requirements of this section, it shall notify the applicant of its findings, forward a copy of the findings to the Office of the Governor, and shall conduct a public hearing to receive public comment on the project. A public hearing held by the department under this subsection shall be conducted by the executive director of the department or the director's designee in accordance with §1.5 of this title (relating to Public Hearings). Any persons, including, but not limited to, official representatives of a county, municipality, metropolitan planning organization, or other governmental entity, and any individual, group, or association may provide comment.(d) Report to commission. Subsequent to the public hearing, the department will submit the application together with its findings and recommendations to the commission for appropriate action. The department will consider the views and comments received under subsection (a) of this section prior to making its findings and recommendations.</content><note type="source"><p>Source Note: The provisions of this §15.75 adopted to be effective December 26, 1995, 20 TexReg 10622; amended to be effective September 14, 2006, 31 TexReg 7575.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scG/s15.76"><num value="15.76">§15.76</num><heading>Commission Action</heading><content>(a) Commission analysis. The commission may consider the advice of the staff of the department and consultants that the commission may choose regarding the sufficiency of the information, the probable accuracy of projections, the anticipated financial condition of the application and the project, the impact of the project on the economy and free trade, and any other information the commission determines appropriate.(b) Comments and commitments of other entities. Prior to granting approval of a project, the commission shall consider, but is not bound by:(1) the nature and extent of any commitments from Mexican authorities provided in accordance with §15.74(4) of this subchapter (relating to Application); and(2) the views and comments of an agency or entity listed in §15.75 of this subchapter (relating to Department Action).(c) Project requirements. The commission will not approve a project unless it finds that:(1) the project will provide for all reasonable and feasible measures to avoid, minimize, or mitigate for adverse environmental impacts;(2) the project is consistent with the state transportation plan and, if appropriate, with the regional transportation plan developed by a metropolitan planning organization having jurisdiction over the project; and(3) the future transportation infrastructure, at the time of the bridge operations, on both sides of the border will be of sufficient capacity to support the new structure.(d) Financial requirements. The commission will not approve a project if it finds that the project's financial prospects over the expected financing period of the project are likely to categorize the project as being of less than investment quality due to one or more of the following conditions:(1) the project has more than minimal speculative elements in its prospective finances;(2) the financial future of the project cannot be considered as well assured;(3) protection of any lenders or bond holders is not well safeguarded over the expected financing period of the project; or(4) the project will probably cause negative impacts on the economy or the free flow of trade that are greater than any probable positive impacts in the study area.(e) Final action.(1) Approval or disapproval of the project shall be by written order of the commission, and shall include the rationale, findings, and conclusions on which approval or disapproval is based.(2) The commission will approve or disapprove the application within 120 days of the date of receipt of a complete application. If an application is returned under §15.75 of this subchapter, the commission will approve or disapprove the application within 120 days of the date that re-submitted complete application has been received by the department.(3) If the commission does not approve the application, the applicant shall withdraw the request for approval from the United States.(4) The department will provide written notification of the commission's action to the applicant and the Office of the Governor.</content><note type="source"><p>Source Note: The provisions of this §15.76 adopted to be effective December 26, 1995, 20 TexReg 10622; amended to be effective September 14, 2006, 31 TexReg 7575.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c15/scH"><num value="H">SUBCHAPTER H</num><heading>TRANSPORTATION CORPORATIONS</heading><section identifier="/us/state/tx/tac/t43/p1/c15/scH/s15.80"><num value="15.80">§15.80</num><heading>Purpose</heading><content>The Texas Transportation Corporation Act, Transportation Code, Chapter 431, provides for the creation of transportation corporations for the purpose of the promotion and development of public transportation facilities and systems. This subchapter prescribes the policies and procedures governing the creation and operations of those corporations created under the authority of the Texas Transportation Commission.</content><note type="source"><p>Source Note: The provisions of this §15.80 adopted to be effective January 1, 1997, 21 TexReg 11828.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scH/s15.81"><num value="15.81">§15.81</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Act--The Transportation Corporation Act, Transportation Code, Chapter 431.(2) Board--The Board of Directors of a corporation.(3) Commission--The Texas Transportation Commission.(4) Corporation--A transportation corporation created under this subchapter.(5) Department--The Texas Department of Transportation.(6) Director--A director of a corporation's Board.(7) Executive director--The executive director of the Texas Department of Transportation or the executive director's designee.(8) Transportation project--The planning, construction, or reconstruction of a transportation facility which the department has the legal authority to plan, construct, or reconstruct, including but not limited to, a public road or highway, bridge, ferry, transit facility, or high occupancy vehicle lane.</content><note type="source"><p>Source Note: The provisions of this §15.81 adopted to be effective January 1, 1997, 21 TexReg 11828.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scH/s15.82"><num value="15.82">§15.82</num><heading>Application for Creation of Corporation</heading><content>(a) Three or more qualified individuals may file with the executive director an application for the creation of a corporation. The application shall be in a form prescribed by the department and shall, at a minimum, include:(1) the name, address, and telephone number of a person who may be contacted for additional information;(2) a description of the proposed transportation project or projects;(3) a project location map indicating the limits of the proposed transportation project or projects;(4) copies of project feasibility studies, if available;(5) proposed articles of incorporation;(6) proposed bylaws; and(7) applications for appointment as a director, submitted in accordance with §15.85(a) of this title (relating to Board of Directors).(b) For purposes of this section, an applicant is qualified if he or she is a:(1) qualified voter in this state; and(2) resident of a county within the geographic area of the corporation's operations or resident of a county adjacent to such county or counties.</content><note type="source"><p>Source Note: The provisions of this §15.82 adopted to be effective January 1, 1997, 21 TexReg 11828.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scH/s15.83"><num value="15.83">§15.83</num><heading>Department Action</heading><content>(a) Notice of Publication.(1) After the department has determined that the application is complete and ready for consideration by the commission, the applicants shall publish a notice in a newspaper with general circulation in each county located in the corporation's geographic area. The notice must be published at least once a week for two consecutive weeks, with the first publication being at least 20 days before commission action on the application. The form and content of the notice must at a minimum include:(A) the proposed purpose of the corporation;(B) the names of the proposed initial directors;(C) a statement that the commission is considering an application for the creation of a corporation and the applications of the proposed directors;(D) a statement that inquiries may be made to the executive director;(E) date, time, and location of the commission meeting; and(F) who to contact, within the department, if special accommodation is required.(2) The applicants must furnish the executive director with a publisher's affidavit at least seven days prior to commission action on the application.(b) Department recommendation. Prior to approval of the creation of a corporation under §15.84 of this title (relating to Approval of the Creation of a Corporation), the executive director will submit to the commission the application together with the department's recommendations.</content><note type="source"><p>Source Note: The provisions of this §15.83 adopted to be effective January 1, 1997, 21 TexReg 11828.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scH/s15.84"><num value="15.84">§15.84</num><heading>Approval of the Creation of a Corporation</heading><content>(a) Creation. The commission will by order approve the creation of a corporation if it finds that such creation is advisable and will:(1) serve the public interest;(2) address a statewide or regional transportation need; and(3) develop or promote a transportation project that is or will be consistent with the statewide transportation plan and an existing regional transportation plan developed by a metropolitan planning organization, if any.(b) Approval order.(1) An order of the commission approving the creation of a corporation shall:(A) include a finding that the commission determines that the creation of the corporation is advisable;(B) approve the articles of incorporation and bylaws to be used in organizing the corporation;(C) designate the geographic area of the state in which the corporation may operate; and(D) appoint three or more directors to the Board, in accordance with §15.85 of this title (relating to Board of Directors), for individual terms not to exceed six years.(2) The commission will stagger the terms of the directors to the extent practicable.</content><note type="source"><p>Source Note: The provisions of this §15.84 adopted to be effective January 1, 1997, 21 TexReg 11828.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scH/s15.85"><num value="15.85">§15.85</num><heading>Board of Directors</heading><content>(a) Application for initial appointment. Each applicant for appointment as an initial director shall submit the following information to the executive director:(1) an application for appointment, in a form prescribed by the department;(2) a financial statement in conformance with Government Code, §572.023;(3) three letters of reference; and(4) an executed bond, payable to the state in a sum of $5,000, and conditioned on the faithful performance of the director's duties.(b) Ineligible to serve. The following individuals are ineligible to serve as directors:(1) elected public officials;(2) persons who are not residents of a county within the geographic area of the corporation's operations, or resident of a county adjacent to such county or counties;(3) persons owning an interest in real property which will be acquired by the Corporation or the department for the Corporation's project; and(4) persons ineligible under §15.86(b) of this title (relating to Conflict of Interest).(c) Vacancies. The Board must notify the executive director within 30 days of a vacancy on the Board. If the Board fails to nominate a replacement director within 60 days of a vacancy, the commission will appoint a replacement director in accordance with subsection (d)(2) of this section.(d) Appointment of replacement and additional directors.(1) Board nomination. If nominated by the Board, the commission may appoint replacement or additional directors for a term not to exceed six years. The Board will submit to the commission the information on behalf of the prospective director required under subsection (a) of this section.(2) Commission nomination. The commission may, on its own motion, appoint replacement or additional directors for a term that does not exceed six years. The prospective director will submit, directly to the executive director, the information required under subsection (a) of this section.(3) Re-appointment. Directors completing their terms are eligible for re-appoinment under this subsection.(4) Publication. After the completed application is received, the executive director have published, or if nominated by the Board, authorize the Board to publish, a notice in a newspaper with general circulation in each county within the corporation's geographic area, at least 20 days before the commission action. The form and content of the notice should include, at a minimum:(A) the names of the proposed replacement or additional directors;(B) a statement that the commission will consider the application for such proposed directors at a future meeting, in accordance with this section; and(C) a statement that inquiries may be made to the executive director.(5) Publisher's affidavit. If nominated by the Board, the Board shall furnish the executive director with an affidavit of publication.(e) Removal. The commission may remove a director for cause or without cause.(f) Compensation. A director serves without compensation but is entitled to reimbursement from the corporation for expenses incurred in the performance of the director's duties.(g) Retroactivity. Not including the requirements of subsection (b)(2) of this section, all requirements concerning qualifications and eligibility for directors including those of this section and of §15.86 of this title (relating to Conflict of Interest), shall apply to all directors serving prior to the effective date of this subchapter.</content><note type="source"><p>Source Note: The provisions of this §15.85 adopted to be effective January 1, 1997, 21 TexReg 11828.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scH/s15.86"><num value="15.86">§15.86</num><heading>Conflict of Interest</heading><content>(a) Prohibited conduct for directors and employees. Each director or employee of a corporation may not:(1) accept or solicit any gift, favor, or service that might reasonably tend to influence a director or an employee in the discharge of official duties or that the director or employee knows or should know is being offered with the intent to influence the director's or employee's official conduct;(2) accept other employment or engage in a business or professional activity that the director or employee might reasonably expect would require or induce the director or employee to disclose confidential information acquired by reason of the official position;(3) accept other employment or compensation that could reasonably be expected to impair the director's or employee's independence of judgment in the performance of the director's or employee's official duties;(4) make personal investments that could reasonably be expected to create a substantial conflict between the director's or employee's private interest and the interest of the corporation;(5) intentionally or knowingly solicit, accept, or agree to accept any benefit for having exercised the director's or employee's official powers or performed the director's or employee's official duties in favor of another; or(6) have a personal interest in an agreement executed by the corporation.(b) Eligibility of directors and chief administrative officer.(1) A person is not eligible to serve as a director or chief administrative officer of a corporation if the person or the person's spouse:(A) is employed by or participates in the management of a business entity or other organization that is regulated by or receives funds from the department;(B) directly or indirectly owns or controls more than 10% interest in a business entity or other organization that is regulated by or receives funds from the department;(C) uses or receives a substantial amount of tangible goods, services, or funds from the department; or(D) is required to register as a lobbyist under Government Code, Chapter 305, because of the person's activities for compensation on behalf of a profession related to the operation of the department.(2) A person is not eligible to serve as a director or chief administrative officer of a corporation if the person is an officer, employee, or paid consultant of a Texas trade association in the field of road construction or maintenance, aviation, or outdoor advertising, or if the person's spouse is an officer, manager, or paid consultant of a Texas trade association in the field of road construction or maintenance, aviation, or outdoor advertising.(3) Except as provided in §15.85(b)(3) of this title (relating to Board of Directors), a person is eligible to serve as a director or chief administrative officer of a corporation if the person has received funds from the department as compensation for acquisition of highway right of way.</content><note type="source"><p>Source Note: The provisions of this §15.86 adopted to be effective January 1, 1997, 21 TexReg 11828; amended to be effective March 15, 2012, 37 TexReg 1784.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scH/s15.87"><num value="15.87">§15.87</num><heading>Powers of Corporation</heading><content>(a) A corporation has the powers, duties, and responsibilities granted it under the Act and this subchapter.(b) A corporation shall coordinate proposals and actions involving the promotion and development of transportation projects through the executive director.(c) All powers and authorizations granted to a corporation concerning the promotion and development of a transportation project are subject to the direction of the commission. The corporation's powers and authorizations shall not be exercised until the commission, by order or resolution, explicitly authorizes the applicable specific stage of project development.(d) Development of projects shall be performed according to applicable state and federal laws, rules, and regulations and in accordance with state policies and guidelines.(e) If directed by the commission as a part of the transportation project, the corporation shall prepare an environmental assessment and/or environmental impact statement in accordance with Chapter 2, Subchapter C of this title (relating to Environmental Review and Public Involvement for Transportation Projects). The form and content of an environmental assessment and environmental impact statement prepared by a corporation and any decision by a corporation that an environmental impact statement is not necessary must be approved by the department.</content><note type="source"><p>Source Note: The provisions of this §15.87 adopted to be effective January 1, 1997, 21 TexReg 11828.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scH/s15.88"><num value="15.88">§15.88</num><heading>Donations</heading><content>A corporation may only accept donations of cash, goods, services, and property which will further the performance of its functions as authorized by the commission. All donations shall be used by the corporation for their intended purpose in accordance with requirements of the commission and applicable law. All corporations, in receiving donations shall accept and use the donations only for specific purposes legally supported and authorized by the donors and shall be strictly accountable to such donors and the commission.</content><note type="source"><p>Source Note: The provisions of this §15.88 adopted to be effective January 1, 1997, 21 TexReg 11828.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scH/s15.89"><num value="15.89">§15.89</num><heading>Contracts for Goods or Services</heading><content>(a) Adequate funds.(1) A corporation shall not enter into a contract for goods or services that creates a legally binding obligation against the corporation unless there are available to it, at the time of execution of the contract, adequate funds and projected receipts sufficient to pay the obligation created by such contract as well as all other known obligations of the corporation.(2) Each contract shall specify on its face whether or not there are adequate funds and projected receipts available at the time of its execution. If adequate funds and projected receipts are not available at the time of its execution, the contract must state that the corporation is not legally obligated for such goods and services beyond funds on hand and actual payment for such goods and services shall be within the sole discretion of the Board at such time as funds may be available to the corporation. Each contract where there is inadequate funding shall also include a statement to the effect that:(A) the contract does not create a present or future legally binding obligation of the corporation beyond monies on hand as of the effective date of the contract;(B) the contractor waives his or her right to sue for non-payment if no monies are available; and(C) the contract is subject to termination upon 30 days written notice by either party.(b) Department review.(1) The following contracts must be submitted to the executive director prior to contract execution for review as to form and consistency with the provisions of this subchapter:(A) construction contracts;(B) contracts relating to the provision of professional services;(C) contracts relating to the provision of scientific services; and(D) all contracts in excess of $100,000.(2) A corporation may not divide contracts into smaller quantities, reduce time periods, or otherwise limit the maximum amount payable to a contractor to avoid or appear to avoid the requirements of this subsection.(c) The department will not be a third party to a contract.</content><note type="source"><p>Source Note: The provisions of this §15.89 adopted to be effective January 1, 1997, 21 TexReg 11828.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scH/s15.90"><num value="15.90">§15.90</num><heading>Reports and Audits</heading><content>(a) Written reports.(1) Project status report. Except as provided in paragraph (3) of this subsection, for each transportation project, the corporation shall submit a quarterly project status report after the end of each of the state's fiscal quarters during the construction of the project, that must include, at a minimum:(A) the scope of work authorized by the commission;(B) the work that has been accomplished in that quarter;(C) the anticipated completion date of the project, as well as anticipated completion dates for various segments of the project, if applicable;(D) the status of coordinating activities with other governmental entities and with railroads, utilities and others;(E) project fiscal data, including funds received, expended, available, and projected completion costs; and(F) comments on significant accomplishments, problems, and concerns of the corporation.(2) Certification. Reports submitted under this subsection must be approved by official action of the board and certified as correct by the president of the corporation.(3) Inactivity. If the project status has not changed in the preceding period, the corporation may submit, in lieu of the quarterly project status report, a certification stating that no activity has taken place.(4) Submission dates. Reports or the certification required by this subsection must be submitted to the executive director within 60 days after the end of each of the state's fiscal quarter.(b) Annual commission report. Every 12 months, the corporation shall submit to the commission a report on its current condition, status of projects, and activities undertaken the preceding 12 months, and shall be available to appear before the commission, at the commission's discretion, to discuss the report.(c) Annual audits. The corporation shall submit reports of an annual financial audit in accordance with this subsection. A corporation that is authorized by the commission under §15.94 or §15.95 of this subchapter (relating to CDA Projects Corporation and Toll Project Corporations, respectively) is not required to have an annual audit performed and is not required to submit a report under this subsection.(1) Submission date. The annual audit shall be submitted to the executive director within 120 days after the end of the state's fiscal year (August 31).(2) Certification. The audit must be conducted by an independent certified public accountant in accordance with generally accepted auditing standards. The accompanying financial report shall be prepared according to pronouncements by the Government Accounting Standards Board.(3) Content. The audit shall include, at a minimum:(A) an evaluation of the corporation's internal accounting system and controls;(B) a statement regarding the corporation's compliance with the guidelines established by the commission for its operation, including both the positive and negative compliance (summary of all instances of noncompliance, if any, must be included);(C) a statement regarding the corporation's compliance with the Public Funds Investment Act, Government Code, Chapter 2256, as applicable;(D) a complete recapitulation of the corporation's income and expenditures as well as assets and liabilities; and(E) an unqualified certification by the certified public accountant.(4) Paperwork retention period. All work papers and reports shall be retained for a minimum of four years from the date of the audit report, unless the certified public accountant is notified by the department in writing, to extend the retention period.(5) Availability of audit work papers. If requested by the department, audit work papers shall be made available to the executive director at the completion of the audit.(d) Other reports. The corporation will provide other reports and information regarding the corporation promptly when requested by the executive director.</content><note type="source"><p>Source Note: The provisions of this §15.90 adopted to be effective January 1, 1997, 21 TexReg 11828; amended to be effective March 15, 2012, 37 TexReg 1784; amended to be effective August 16, 2012, 37 TexReg 6092.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scH/s15.91"><num value="15.91">§15.91</num><heading>Dissolution of a Corporation</heading><content>The commission may dissolve or authorize the dissolution of a corporation in accordance with this section and upon a finding that the existence of the corporation is no longer advisable.(1) Dissolution by commission.(A) If the commission determines that a corporation should be dissolved, two members of the commission shall execute articles of dissolution.(B) The articles of dissolution shall set forth:(i) the name of the corporation;(ii) the date of the meeting of the commission at which the order to dissolve the corporation was adopted;(iii) that all debts, obligations, and liabilities of the corporation have been paid and discharged or that adequate provision has been made therefor, or, if the corporation's property and assets are not sufficient to satisfy and discharge all its liabilities and obligations, that all the property and assets have been applied so far as they would go to the payment thereof in a just and equitable manner; and(iv) that there are no suits pending against the corporation, or that adequate provision has been made for the satisfaction of any judgment, order, or decree which may be entered against it in any pending suit.(2) Dissolution by Board.(A) The board shall dissolve the corporation when:(i) the Board determines that the purposes for which the corporation was formed have been substantially fulfilled or will not be accomplished;(ii) all obligations of the corporation have been paid; and(iii) the Board obtains written authorization from the commission.(B) The Board shall adopt a resolution to dissolve the corporation.(C) The Board shall present to the commission:(i) a final audit, conducted in compliance with §15.90 of this title (relating to Reports);(ii) proposed articles of dissolution which shall set forth:(I) the name of the corporation;(II) the date of the meeting of the Board at which the resolution to dissolve was adopted and a statement of the fact that such resolution received the vote of a majority of the directors;(III) that all debts, obligation, and liabilities of the corporation have been paid and discharged or that adequate provision has been made therefor, or, if the corporation's property and assets are not sufficient to satisfy and discharge all its liabilities and obligations, that all the property and assets have been applied so far as they would go to the payment thereof in a just and equitable manner;(IV) that all the remaining property and assets have been transferred to the commission in accordance with Transportation Code, §431.186; and(V) that there are no suits pending against the corporation, or that adequate provision has been made for the satisfaction of any judgment, order, or decree which may be entered against it in any pending suit; and(iii) a check for all funds to be delivered to the commission in accordance with Transportation Code, §431.186.(D) If the commission approves the dissolution, the articles of dissolution shall be executed by the president or vice-president of the corporation and the secretary or assistant secretary of the corporation.</content><note type="source"><p>Source Note: The provisions of this §15.91 adopted to be effective January 1, 1997, 21 TexReg 11828.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scH/s15.92"><num value="15.92">§15.92</num><heading>Miscellaneous Powers and Duties of Corporations</heading><content>(a) Open Meetings and Public Information.(1) A corporation is subject to the Open Meetings Act, Government Code, Chapter 551.(A) Except as provided in subparagraph (B) of this paragraph, the Board shall file notice of each meeting of the board in the same manner and in the same location as is required of a state governmental body under Chapter 551, Government Code.(B) If the commission designates an area of the state in which a corporation may act on behalf of the commission, the board shall file notice of each meeting of the board in the same manner and the same location as is required of a governmental body under Government Code, §551.053.(2) The Board is subject to the Public Information Act, Government Code, Chapter 552.(b) Texas Non-Profit Corporation Act. The Texas Non-Profit Corporation Act applies to a transportation corporation to the extent that the provisions of that Act are not inconsistent with provisions of the Transportation Corporation Act, Transportation Code, Chapter 431, and this subchapter.(c) Internal ethics and compliance program. A corporation shall adopt an internal compliance and ethics program that satisfies the requirements of §10.51 of this title (relating to Internal Ethics and Compliance Program) before the later of:(1) January 1, 2010; or(2) the first anniversary of the date on which the corporation is created.(d) Enforcement of compliance program. A corporation shall enforce compliance with the internal compliance and ethics program adopted under subsection (c) of this section.</content><note type="source"><p>Source Note: The provisions of this §15.92 adopted to be effective January 1, 1997, 21 TexReg 11828; amended to be effective February 19, 2009, 34 TexReg 1107; amended to be effective January 6, 2011, 35 TexReg 11959.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scH/s15.93"><num value="15.93">§15.93</num><heading>Commission and Department Responsibility</heading><content>(a) Debt. The commission and the department shall not assume liability for any action of the corporation, any debt incurred by the corporation, or any judgment against the corporation, its officers, employees, or agents.(b) Commitment. Creation of a corporation by the commission shall not be construed to be a commitment for future roadway construction, operation, or maintenance, nor shall such action be considered as authorization for right of way acquisition, construction funding, or development of a transportation project.(c) Authority.(1) It is and shall remain the policy of the commission that corporations are to be viewed as acting on behalf of the commission. A corporation only has the powers and may perform only the functions specifically delegated to it by order of the commission. All decisions with respect to location, design, construction and related matters shall be made by the commission and the department.(2) The board shall comply with such directions as the commission may from time to time communicate concerning staffing, contracting, and corporation organizational matters.(d) Curative actions. In the event that a corporation is determined to be insolvent, found to be in noncompliance with the requirements of this subchapter, or fails to respond to a request of the commission or the department, the corporation is subject to curative actions by the commission up to and including dissolution.</content><note type="source"><p>Source Note: The provisions of this §15.93 adopted to be effective January 1, 1997, 21 TexReg 11828.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scH/s15.94"><num value="15.94">§15.94</num><heading>CDA Projects Corporation</heading><content>(a) The commission by order may authorize the creation of a corporation under the Act for the sole purpose of issuing private activity bonds for transportation projects developed or to be developed under comprehensive development agreements (CDA) entered into by the department under Transportation Code, Chapter 223, Subchapter E.(b) The creation, dissolution, and all powers, duties, and functions of the corporation are governed by the Act and the other sections of this subchapter do not apply, except as provided by this section.(c) Only a full-time, permanent employee of the department may be appointed or serve as a director of the corporation.(d) Section 15.86 of this subchapter, relating to conflict of interest, applies to the directors and employees of the corporation.</content><note type="source"><p>Source Note: The provisions of this §15.94 adopted to be effective September 18, 2008, 33 TexReg 7750.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scH/s15.95"><num value="15.95">§15.95</num><heading>Toll Project Corporations</heading><content>(a) The commission by order may authorize the creation of a corporation under the Act for the purpose of acting for or on behalf of the commission by developing, financing, designing, constructing, reconstructing, expanding, operating, or maintaining a toll project, as defined by Transportation Code, §201.001, or a system of toll projects.(b) The creation, dissolution, and all powers, duties, and functions of a corporation are governed by the Act and the Nonprofit Corporations Act, Business Organizations Code, Chapter 22, as provided in the Act. The other sections of this subchapter do not apply, except as provided by this section.(c) A corporation shall submit to the executive director for approval a contract for the development, financing, design, construction, reconstruction, expansion, operation, or maintenance of a project before the execution of the contract. A corporation shall also submit to the executive director for approval all procurement documents associated with such a contract before the issuance of those documents. A corporation may not issue a request for qualifications or request for proposals for the construction, reconstruction, expansion, operation, or maintenance of a project until the corporation is authorized to do so by the commission.(d) A corporation may enter into an agreement with the department that identifies the responsibilities of each party for the development, financing, design, construction, reconstruction, expansion, operation, or maintenance of a project, and that defines the support to be provided to the corporation by the department.(e) A corporation may assign a contract, including a contract described in subsection (c) of this section, to another party for the benefit of a creditor, including the holders of bonds, notes, or other obligations issued by the corporation. The department may assign to a corporation a department contract for the design, construction, reconstruction, expansion, operation, or maintenance of a project for which the corporation was created.(f) A corporation may borrow money and the department may lend money to a corporation pursuant to state law, including making a loan to a corporation under Transportation Code, §222.103 to pay for or reimburse project costs. A loan made by the department under this subsection must be approved by the commission but is not subject to Chapter 27, Subchapter E of this title (relating to Financial Assistance for Toll Facilities).(g) Only a full-time, permanent employee of the department may be appointed or serve as a director of a corporation.(h) Section 15.86 of this subchapter (relating to Conflict of Interest) applies to the directors and employees of a corporation.(i) Section 15.90 of this subchapter (relating to Reports and Audits) applies to a corporation.</content><note type="source"><p>Source Note: The provisions of this §15.95 adopted to be effective March 15, 2012, 37 TexReg 1784.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c15/scI"><num value="I">SUBCHAPTER I</num><heading>BORDER COLONIA ACCESS PROGRAM</heading><section identifier="/us/state/tx/tac/t43/p1/c15/scI/s15.100"><num value="15.100">§15.100</num><heading>Purpose</heading><content>Government Code, Chapter 1403, requires the Texas Public Finance Authority, in accordance with requests from the Office of the Governor, to issue general obligation bonds and notes in an aggregate amount not to exceed $175 million, and as directed by the department, distribute the proceeds to counties to provide financial assistance for colonia access roadway projects to serve border colonias. The legislation requires the commission to establish a program to administer the use of the proceeds of the bonds and notes. The sections under this subchapter set forth the procedures by which a county may apply for assistance under Government Code, Chapter 1403 and establish criteria by which the commission will select projects.</content><note type="source"><p>Source Note: The provisions of this §15.100 adopted to be effective January 2, 2002, 26 TexReg 11047; amended to be effective February 19, 2004, 29 TexReg 1425.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scI/s15.101"><num value="15.101">§15.101</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) AASHTO--The American Association of State Highway and Transportation Officials.(2) Border colonia--A geographic area that consists of 11 or more dwellings that are located in close proximity to each other in an area that may be described as a community or neighborhood and located in an eligible county, that is identified as a colonia in the Texas Water Development Board's colonia database.(3) Border districts--The El Paso, Laredo, Pharr, and Odessa department districts.(4) Commission--The Texas Transportation Commission.(5) County road--A road owned and maintained by a county.(6) Department--The Texas Department of Transportation.(7) Eligible costs--The cost of constructing, administering, or providing drainage for a project, including the cost of leasing equipment used substantially in connection with a project, or acquiring materials used solely in connection with a project.(8) Eligible county--A county located in the El Paso, Laredo, or Pharr department districts, and Terrell County, that has adopted the model rules promulgated by the Texas Water Development Board under Water Code, §16.343.(9) Executive director--The executive director of the department.(10) Minimum colonia access road standards--Road standards for the applicable transportation facility, as described in:(A) the latest editions of appropriate AASHTO design guidelines; or(B) road standards adopted by a county under Local Government Code, §232.025 and approved by the executive director or designee as sufficient to protect the safety of the traveling public.(11) Public road--A road owned and maintained by a municipality, county, or the department.(12) Rural border county--An eligible county that:(A) has a population of less than 55,000, as determined by the latest decennial census; and(B) is adjacent to an international border.</content><note type="source"><p>Source Note: The provisions of this §15.101 adopted to be effective January 2, 2002, 26 TexReg 11047; amended to be effective February 19, 2004, 29 TexReg 1425; amended to be effective December 6, 2007, 32 TexReg 8856.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scI/s15.102"><num value="15.102">§15.102</num><heading>Eligibility</heading><content>For a project to be eligible for consideration for the program, it must:(1) be located within an eligible county;(2) have one terminus at or within a border colonia and one terminus at a public road; and(3) be designed and constructed by the county or its contractor to minimum colonia access road standards.</content><note type="source"><p>Source Note: The provisions of this §15.102 adopted to be effective January 2, 2002, 26 TexReg 11047.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scI/s15.103"><num value="15.103">§15.103</num><heading>Application Procedures</heading><content>(a) The department, through the border district offices, will issue a program call to the eligible counties to prepare an application for each project that a county would like to submit for consideration. A separate application must be prepared for each project. The border district offices will have application forms available for the counties.(b) The department will establish a deadline for applications to be received. In order to be considered for the program call, the application must provide:(1) a clear and concise description of the work proposed;(2) an implementation plan, including a schedule of proposed activities and a detailed estimate of project costs;(3) a map delineating project location and termini;(4) documentation addressing the criteria prescribed in §15.104 of this subchapter; and(5) a colonia classification number, if one exists, for each colonia that may be served by the project.(c) The department will evaluate the applications, and if determined to be in compliance with this section, will submit the applications to the commission for approval under §15.105 of this subchapter.</content><note type="source"><p>Source Note: The provisions of this §15.103 adopted to be effective January 2, 2002, 26 TexReg 11047; amended to be effective October 17, 2002, 27 TexReg 9627; amended to be effective December 6, 2007, 32 TexReg 8856.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scI/s15.104"><num value="15.104">§15.104</num><heading>Project Selection Criteria</heading><content>(a) The commission will consider the following criteria for project selection:(1) the number resulting from dividing the population of the border colonia the project is to serve, based on the latest estimates from the Texas Water Development Board, by the total number of miles of roadway in the border colonia;(2) condition of current roads, such as the number of existing paved roads in and to the border colonia the project is to serve;(3) whether the project is on an existing or planned school bus route; and(4) access to other parts of the region, such as the number of roads, paved or unpaved, to the border colonia the project is to serve.(b) Each criterion will be weighted 25 points, for a total possible score of 100. The commission will consider the projects in descending rank order as far as available funding permits.</content><note type="source"><p>Source Note: The provisions of this §15.104 adopted to be effective January 2, 2002, 26 TexReg 11047; amended to be effective October 17, 2002, 27 TexReg 9627.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scI/s15.105"><num value="15.105">§15.105</num><heading>Apportionment</heading><content>The department will apportion and distribute available funds in the manner described by this section.(1) Each county will receive a minimum of $100,000 in funding during each program call.(2) In addition to funds distributed under paragraph (1) of this section, an amount equal to 10% of the funding available during each program call shall be set aside and distributed to rural border counties to fund projects in which a colonia access road serving a border colonia located in that county is paved for the first time.(3) The first 50% of the remaining available funds after the distributions under paragraphs (1) and (2) of this section will be distributed to a county in proportion to its border colonia population, based on the latest estimates from the Texas Water Development Board. The commission will fund the highest ranked projects as evaluated and scored under §15.104 of this subchapter.(4) The remaining 50% of the remaining available funds will then be distributed to individual counties on a project by project basis. All projects submitted by the counties and not funded under paragraphs (1), (2), and (3) of this section will be funded in descending rank order as determined under §15.104 of this subchapter as available funding permits.(5) If a county did not submit sufficient eligible projects to expend funds available under paragraphs (1), (2), and (3) of this section, the remaining funds will be distributed in accordance with paragraph (4) of this section. If the remaining funds are not distributed under paragraph (4) of this section because of insufficient eligible projects, the county may use those funds for project cost overruns.(6) Funds available as a result of a county being prohibited from continued participation in the program under §15.106(e) of this subchapter or because of county reimbursements under §15.106(f) of this subchapter will be distributed in accordance with paragraph (4) of this section.(7) Projects will be funded based on the project cost estimates provided by a county under §15.103 of this subchapter. Except as provided in paragraph (5) of this section, project costs above that estimate are the responsibility of the county. A county may seek additional funds for a project if the department issues subsequent program calls.(8) The maximum amount of funding that is available for each project is $500,000 per mile, unless the executive director or designee not below the level of assistant executive director grants a waiver due to exceptional drainage costs.(9) Projects partially funded under prior program calls are eligible for funding under this subchapter.(10) A county may use unexpended funds from a project on any other commission-selected county colonia project.</content><note type="source"><p>Source Note: The provisions of this §15.105 adopted to be effective January 2, 2002, 26 TexReg 11047; amended to be effective October 17, 2002, 27 TexReg 9627; amended to be effective February 19, 2004, 29 TexReg 1425; amended to be effective December 6, 2007, 32 TexReg 8856.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scI/s15.106"><num value="15.106">§15.106</num><heading>Program Administration</heading><content>(a) Agreement. Prior to receiving funds under this program, a county must execute an agreement with the department. The agreement, among other things, will include a commitment by the county to:(1) place the project on the county road system;(2) complete any water and wastewater services that are expected to be placed in or across an approved road project right of way prior to constructing the project;(3) expend funds received only on eligible costs;(4) comply with all applicable federal, state, and local environmental laws and regulations and permitting requirements;(5) maintain the road; and(6) comply with the grant management standards in subsection (c) of this section.(b) Application costs. Costs incurred in the preparation of applications submitted under §15.103 of this subchapter are not reimbursable with funds received under this program.(c) Grant management standards. A county receiving funds under this program must:(1) comply with the Uniform Grant Management Standards promulgated by the Office of the Governor under 1 TAC §§5.141-5.167; and(2) upon project selection, submit a financial report that shows how it will use the funds to build the project.(d) Certification. Upon project completion, a county receiving funds must submit a written certification that it has complied with the requirements of this subchapter, including a certification that the project has been constructed in accordance with those requirements.(e) Compliance. The executive director may:(1) prohibit a county from participating in the program if the executive director determines that the county has not complied with one or more requirements of this subchapter;(2) prohibit a county from continuing to participate in the program until such time as the executive director determines that the county has complied with all requirements of this subchapter; or(3) eliminate a project from participation in the program if the project is not implemented within a reasonable time, as determined by the department in consultation with the county (in the absence of information suggesting that a shorter or longer period is appropriate, three years from the date of the agreement with the department is considered appropriate).(f) Reimbursement. If a county does not complete a project, the department may seek reimbursement of funds received by the county for that project.</content><note type="source"><p>Source Note: The provisions of this §15.106 adopted to be effective January 2, 2002, 26 TexReg 11047.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c15/scJ"><num value="J">SUBCHAPTER J</num><heading>DESIGN CONSIDERATIONS</heading><section identifier="/us/state/tx/tac/t43/p1/c15/scJ/s15.120"><num value="15.120">§15.120</num><heading>Purpose</heading><content>Transportation Code, §201.614 requires the department to consider various design factors when developing transportation projects that involve the construction, reconstruction, rehabilitation, or resurfacing of a highway, other than a maintenance resurfacing project. This subchapter describes how those design factors will be considered during the development of transportation projects in which the department has design and construction or funding responsibilities.</content><note type="source"><p>Source Note: The provisions of this §15.120 adopted to be effective January 2, 2002, 26 TexReg 11051.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scJ/s15.121"><num value="15.121">§15.121</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Construction project--A transportation project in which the primary activities involve building a segment of highway or public road in a new configuration or on a new location.(2) Department--The Texas Department of Transportation.(3) District--One of the 25 geographical areas, managed by a district engineer, in which the department conducts its primary work activities, including project development.(4) Local government--Any county, city, other political subdivision of this state, or special district that has the authority to plan and design a highway or roadway project.(5) Metropolitan planning organization (MPO)--The forum for cooperative transportation decision making for the metropolitan planning area. The MPO is also the organization that is responsible for carrying out the transportation planning process for the metropolitan area as required by 23 U.S.C. §134.(6) Resurfacing--A transportation project to apply new or recycled layer(s) of pavement material to the existing pavement to restore the ride quality or skid resistance and to preserve the structural integrity of the pavement.(7) Restoration (2R)--A transportation project to restore the pavement to its original condition. This may include, in addition to the resurfacing described in paragraph (6) of this section, such activities as restoring the pavement structure, minor pavement widening or the addition of shoulders, and drainage improvements. These projects meet the 2R design criteria shown in the department's Roadway Design Manual.(8) Rehabilitation (3R)--A transportation project to extend the service life and enhance the safety of a roadway. In addition to the work described under resurfacing and restoration, the activities include upgrading the geometric design and safety of the facility. Work does not include the addition of through travel lanes. These projects meet the 3R design criteria shown in the department's Roadway Design Manual.(9) Reconstruction (4R)--A transportation project to upgrade an existing roadway to meet the geometric design criteria for a new facility. In addition to the work described under resurfacing, restoration and rehabilitation, reconstruction work generally includes substantial changes in the geometric character of a highway, such as widening to provide additional through lanes and horizontal or vertical realignment, and major improvements to the pavement structure to provide long term service. These projects meet the 4R design criteria shown in the department's Roadway Design Manual.(10) Transportation Project--The planning, development, design and construction work necessary to construct, reconstruct, rehabilitate or restore a highway or public road that the department has the responsibility to finance or undertake. A project may include, but is not limited to, improvements to a bridge, toll road, transit facility, or high occupancy vehicle lane, or other facilities necessary for an integrated transportation system, but does not include a resurfacing project.</content><note type="source"><p>Source Note: The provisions of this §15.121 adopted to be effective January 2, 2002, 26 TexReg 11051.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scJ/s15.122"><num value="15.122">§15.122</num><heading>Design Considerations</heading><content>The factors as provided in paragraph (1) of this section will be considered when transportation projects are developed in order to provide transportation systems and alternatives that are comfortable, safe, durable, cost-effective, accessible, environmentally sensitive, aesthetically pleasing, and that consider other transportation modes.(1) Factors. The department, through a district, local government or MPO, shall consider the following factors when developing transportation projects:(A) the extent to which the project promotes safety;(B) the durability of the project;(C) the economy of maintenance of the project;(D) the impact of the project on:(i) the natural and artificial environment;(ii) the scenic and aesthetic character of the area in which the project is located;(iii) preservation efforts; and(iv) each affected local community and its economy;(E) the access for other modes of transportation, including those that promote physically active communities; and(F) except for transportation projects that involve the rehabilitation or resurfacing of a bridge or highway, the aesthetic character of the project, including input from each affected local community.(2) Assessment. The factors provided in paragraph (1) of this section will be assessed when developing transportation projects.(A) Safety will be considered throughout the project development process. Each type of project will be evaluated, appropriate engineering studies will be completed, and appropriate design guidelines will be utilized with sound engineering judgment in order to accomplish the purpose of that particular transportation project. Safety is integral to properly engineering each project to address the anticipated needs and conditions.(B) Durability and economy of maintenance will be incorporated into each project as it is developed in order to provide the most cost-effective and reliable products available through engineering study and evaluation. Final selection of products will be based on accepted design practices, specifications, availability of products, testing, and construction industry standards. The appropriate combination of products in each project will provide a project with a reasonably long life and will require reasonable upkeep to preserve its originally intended service life.(C) The factors listed in paragraph (1)(D) of this section are all factors considered in the environmental review and public involvement process as prescribed in Chapter 2, Subchapter C of this title (relating to Environmental Review and Public Involvement for Transportation Projects) that is an integral part of the development of each project.(D) Access for other modes of transportation will be considered during the project development process by developing plans and projects that contain, where appropriate, interconnections with other transportation facilities, including bicycle transportation facilities, pedestrian walkways, and trails.(E) Except for transportation projects that involve the rehabilitation or resurfacing of a bridge or highway, the aesthetic character of the project will be considered during the project development process by developing plans and projects that contain, where appropriate, aesthetic enhancements to the transportation facilities. Input from each affected local community is gathered as part of the public involvement process as prescribed in Chapter 2, Subchapter C of this title that is an integral part of the development of each project.</content><note type="source"><p>Source Note: The provisions of this §15.122 adopted to be effective January 2, 2002, 26 TexReg 11051; amended to be effective January 5, 2006, 30 TexReg 8996.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c15/scK"><num value="K">SUBCHAPTER K</num><heading>ROAD UTILITY DISTRICTS</heading><section identifier="/us/state/tx/tac/t43/p1/c15/scK/s15.130"><num value="15.130">§15.130</num><heading>Purpose</heading><content>Under Transportation Code, Chapter 441, the Texas Transportation Commission must promulgate rules and supervise the creation and operation of a road utility district (RUD). These rules establish the standards under which the commission will discharge this responsibility.</content><note type="source"><p>Source Note: The provisions of this §15.130 adopted to be effective February 20, 2002, 27 TexReg 1183.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scK/s15.131"><num value="15.131">§15.131</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Applicant--A person who files a petition for creation of a RUD.(2) Bonds--Bonds, notes, warrants, and other evidence of indebtedness issued by a RUD.(3) Commission--The Texas Transportation Commission or if permitted by law, its designee.(4) Construction plans--Detailed plans and accompanying specifications and construction cost estimates that are prepared for the purpose of awarding a construction contract.(5) Department--The Texas Department of Transportation.(6) Engineering report--A written report prepared by a licensed professional engineer authorized to practice in Texas. The report shall describe the proposed facility and the existing and proposed conditions pertinent to the planning, design, construction, and maintenance of the proposed facility. To the extent possible, an engineering report must be bound, must be typewritten on 8 1/2-inch by 11-inch paper, and must include drawings that may, if appropriate, be foldouts.(7) Executive director--The chief executive officer of the department or a designee.(8) Facility--A gravel or paved road that is intended to serve as an arterial or main feeder road and is constructed, acquired, improved, or proposed by the RUD. A facility includes any drainage work for the improvement of a river, creek, or stream to prevent overflows. It also includes the construction and maintenance of pools, lakes, reservoirs, dams, canals, and waterways for the purpose of drainage if in furtherance of the construction, acquisition, or improvement of a road.(9) Governmental entity--The public entity to which the facility is to be conveyed. A governmental entity may be a municipality, a county, or the department.(10) Person--An individual, firm, corporation, company, partnership, or other legal entity.(11) Plans--Drawings that show the location, character, and dimensions of the prescribed work, including layouts, profiles, cross sections, other miscellaneous details, and quantity summaries. Final plans include field changes made during construction and therefore reflect the final form of the facility.(12) Specifications--The compilation of provisions and requirements for the performance of prescribed work.(13) Typical section--Drawings that show usual roadway or bridge cross-sectional features, including lane and shoulder widths; limits of surfacing; pavement structure data, including subgrade treatment type and depth, base course thickness and gradation, the plasticity index and density requirements for embankment materials, and type of surfacing material; travel lane and shoulder cross slopes; side slope rates for cut and fill sections; ditch or storm sewer location and depth; typical right of way limits; profile grade line location; typical traffic barrier location; median width and slopes; and curb location and geometry.</content><note type="source"><p>Source Note: The provisions of this §15.131 adopted to be effective February 20, 2002, 27 TexReg 1183.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scK/s15.132"><num value="15.132">§15.132</num><heading>General Filing Requirements</heading><content>(a) Place of filing. Documents to be filed with the commission or the department must be filed with the director of the department's Transportation Planning and Programming Division. Applicants must submit all required data at one time in one package. An application will be returned if it does not satisfy all legal requirements.(b) Licensed professional engineer. All plans shall be prepared, dated, signed, and sealed by a licensed professional engineer authorized to practice in Texas.(c) Preliminary plans. Preliminary plans to be submitted and filed with the governmental entity and the commission shall contain at least the following items.(1) The applicant must submit an engineering report that includes:(A) average daily traffic volumes on existing roads and streets located within the RUD;(B) five-year and twenty-year forecasts of average daily traffic volumes on existing and proposed roads and streets within or affected by the facility;(C) an assessment of the facility's effect on the safety and quality of flow on state highways, municipal streets, and county roads that are intersected, interchanged, relocated, or widened as a result of construction;(D) a description of the proposed facility, including typical sections of the proposed road and a typical section of the existing road;(E) scale maps showing the boundaries of the RUD, its topography, the location of the facility, and anticipated land use and population density;(F) scale maps of existing drainage areas that are partially or wholly within the RUD;(G) hydraulic design frequencies for drainage structures, including specifications for the basis of design and the design coefficients, rainfall intensities, drainage area sizes, and calculated flow quantities for each drainage structure and, when applicable, for each inlet and storm sewer;(H) an explanation of the anticipated handling of existing traffic during construction;(I) an assessment of environmental impacts, including an in-depth analysis when environmentally sensitive areas are adversely affected;(J) when bridges of 20 feet or more are proposed, an indication of structural capacity in terms of design loading;(K) a preliminary estimate of construction costs subdivided into drainage structures and storm sewers, bridges, roadway, and miscellaneous features;(L) a tabulation of basic geometric design values including design speed, maximum horizontal curvature, maximum gradient, minimum stopping sight distance, maximum superelevation rates, and other pertinent geometric design data;(M) proposed landscaping and scenic easements;(N) proposed temporary and permanent measures for controlling erosion; and(O) identification of the sources or reference publications, such as a municipality or county, the department or the American Association of State Highway and Transportation Officials, that serve as a basis for the selected design values and standards or will serve as the standards, guidelines, criteria, or specifications in the subsequent development of other design documents, including construction plans.(2) The applicant must also submit:(A) a schematic of the facility consisting of a continuous roll of to-scale engineering drawings depicting plan views on the upper portion and proposed profile grade line and natural ground profile superimposed on a grid on the lower portion and showing percent grades, vertical curve data, horizontal alignment and superelevation data for each roadway, number of lanes on each roadway, right-of-way limits, location and configuration of interchanges, grade separations and ramps, control of access lines, intersection design, location of median openings, location and length of speed-change lanes, a typical section, and the design speed; or(B) at the request of the department or governmental entity, or at the option of the applicant, construction plans.(3) The applicant shall submit a description of the title, guarantees, and form of conveyance to be used in conveying the land and facility to the governmental entity.</content><note type="source"><p>Source Note: The provisions of this §15.132 adopted to be effective February 20, 2002, 27 TexReg 1183.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scK/s15.133"><num value="15.133">§15.133</num><heading>Creation</heading><content>(a) Petition. A petition to form a RUD, or for a conservation and reclamation district to acquire RUD powers, must include the following documents:(1) all information required by Transportation Code, §441.019;(2) the names, addresses, and signatures of holders of title to all the land within the proposed RUD, as shown by the county tax rolls;(3) a $5,000 nonrefundable filing fee made payable to the department;(4) a scale map showing the boundaries of the RUD and drawn on plan sheets not larger than 22 inches by 36 inches, a metes and bounds description, and a computation sheet for survey closure;(5) a plan sheet that is not larger than 22 inches by 36 inches showing the boundaries of the RUD, existing topography including streams, highways, roads, and other improvements;(6) preliminary plans;(7) an approval statement from the governmental entity;(8) an engineering report including:(A) a vicinity map;(B) the cost of right of way acquisition, including justification that the cost represents an equitable and fair market value or a statement that the right of way and easements will be acquired at no cost;(C) the projected useful life of the facility and the expected costs of maintenance;(D) a comprehensive study showing the justification for creation of the RUD supported by evidence that the proposed facility is feasible and necessary and that the proposed RUD and facility will be a benefit to land included in the RUD;(9) a financial study of the proposed RUD and surrounding area, prepared by an independent consultant, that includes:(A) projected bond requirements, including;(i) the estimated cost of the facility;(ii) all other estimated costs of the RUD;(iii) a finding that the RUD will be financially able to issue and pay bonds of the RUD and all other costs with projected revenues;(B) economic feasibility, including:(i) a table showing the projected tax rates and fees over the life of the bond period;(ii) total tax assessments;(iii) a table showing the total debt encumbering the land within the RUD, including any debt payable from taxes levied by an entity under the provisions of the Texas Constitution, Article III, §52;(iv) a projection of the assessed valuation of the real property on a yearly basis from the date of filing to the projected date on which the facility will be completed;(10) a certificate from the central appraisal district or the tax assessor of each county in which the proposed RUD is located indicating the owners and tax valuation of the real property within the proposed RUD as reflected on the county or counties tax rolls, or if the tax rolls do not show that each applicant is an owner of land within the proposed RUD, a certified copy of deeds tracing title from the person listed on the county tax rolls as owner to the applicant;(11) a certificate from the municipal clerk or secretary and the county clerk that a copy of the preliminary plans for creation of the proposed RUD was received by each municipality in whose extraterritorial jurisdiction the proposed RUD is located and by the commissioners court of each county in which the proposed RUD is located;(12) a specific chronological history showing compliance with all the requirements of Transportation Code, Chapter 441;(13) a proposed order of the commission providing for the public hearing and giving notice of the hearing;(14) a list of at least five potential temporary directors who are eligible under subsection (c)(3) of this section, with their resumes; and(15) other information that the commission may require.(b) Hearing. On receipt of a completed petition, the department will conduct a hearing.(1) Appointment of hearing officer. The executive director will appoint a hearing officer. The hearing officer will set the time and place of the hearing and conduct the hearing. At least 30 days before the hearing, the hearing officer will send notice of the hearing by first class mail to each person specified by Transportation Code, §441.023.(2) Published notice of hearing. The applicant shall publish notice of the hearing in a newspaper of general circulation in each county in which the proposed RUD is to be located. The notice shall be published once per week for two consecutive weeks, with the first publication occurring at least 30 days before the date set for the hearing. The notice shall include:(A) a vicinity map showing the location of the proposed RUD in relation to roads and other major landmarks;(B) the exact location of the facility as nearly as it can be described;(C) the applicant's anticipated construction and completion schedule, and an estimate of the facility's cost;(D) the applicant's name and mailing address;(E) a description of the nature and purpose of the petition to enable any interested party to be reasonably apprised of the benefits and necessity of the RUD;(F) a statement that any interested party is entitled to appear at a hearing; and(G) the date, time, and place of hearing.(3) Proof of notice. The applicant shall provide proof of proper notice of the hearing. This proof shall consist of the publisher's affidavit, including the name of the newspaper, the title of the affidavit, the dates of publication, and the counties in which the newspaper is of general circulation. A newspaper tearsheet of the published notice shall be attached to the affidavit. Proof of notice will be accepted as an exhibit at the hearing.(c) Approval.(1) Order. After the conclusion of the hearing, the commission will issue an order either granting the creation of the RUD and approving the plans or denying the petition and disapproving the plans.(2) Criteria. The commission may consider the following criteria in deciding whether to approve a petition.(A) Structural integrity. The construction plans shall be based on sound established engineering principles and be compatible with the requirements of the county and municipality in whose jurisdiction the RUD is located and with the design criteria of the department. Consideration will be given to any possible effects on existing roads and drainage works.(B) Safety. A facility shall be designed so it will not significantly increase flooding and endanger any person's life or property. The commission will not approve a facility that will significantly increase flooding on any person's land without that person's written consent.(C) Rights of third parties. The commission may consider the rights of other third parties.(D) Coordination. A facility shall be designed so that each phase, if it is designed in phases, shall itself be a complete facility forming a coordinate part of the finished facility. The successful operation of each phase shall coordinate with the successful operation of other phases within the same facility.(E) Environmental effects. The commission may consider all environmental effects of the facility in its evaluation, including specifically scenic and landscaping matters.(3) Temporary directors. The commission will appoint not more than five temporary directors from the list in the petition. These temporary directors will serve until their successors are elected and qualified for office. A temporary director must be at least 18 years old and a resident citizen of Texas and must either own land subject to taxation in a county in which the proposed RUD is located or be a registered voter within the proposed RUD.(4) Debt limitations. The commission may limit a RUD's ability to incur debt to any amount up to 20% of the assessed value of the real property within the RUD. If the county commissioners court of each county in which the RUD is located consents to a greater debt limitation, the commission may limit the RUD's ability to incur debt to any amount up to 25% of the assessed value of the real property within the RUD.</content><note type="source"><p>Source Note: The provisions of this §15.133 adopted to be effective February 20, 2002, 27 TexReg 1183.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scK/s15.134"><num value="15.134">§15.134</num><heading>Operation</heading><content>(a) Required signs. Within 30 days after the creation of a RUD, the RUD shall post signs indicating the existence of the RUD at two or more principal entrances to the RUD. Detailed sign specifications can be obtained from the executive director on request.(b) Filings with the commission.(1) Post-election report.(A) Post-election filings. Within 30 days after the election to confirm the creation of the RUD, the RUD shall file reports with the commission and with the county clerks of each county in which the RUD is located. These reports shall include:(i) the name of the RUD;(ii) a complete and accurate legal description of the boundaries of the RUD;(iii) the most recent rate of RUD taxes on property located in the RUD;(iv) the total amount of bonds that have been approved by the voters and will be issued by the RUD;(v) the date on which the election to confirm the creation of the RUD was held;(vi) a statement of the functions performed or to be performed by the RUD; and(vii) a complete scale map or plat showing the boundaries of the RUD.(B) If there is any change in information contained in a report, the RUD shall amend the report within seven days after the change in information.(C) The report and each amendment to a report shall be signed by a majority of the members of the governing board of the RUD and by each officer.(2) Bond issuance. Before submitting bonds to the attorney general under Transportation Code, §441.174, the RUD shall file with the commission a complete record showing the amount of bonds authorized to be issued for the purpose of constructing the facility and the engineer's estimates and reports.(3) Audits and additional information. At the request of the commission, the RUD shall submit to an audit, shall provide additional information and reports, and shall permit on-site inspections. At any time the commission may institute an investigation or hold hearings concerning the RUD.(c) Supervision of construction.(1) Supervisory responsibility. The governmental entity and executive director may exercise supervisory authority and control over the preparation of all construction plans for construction of the facility and over related engineering work. During construction, on-site inspections may be made at the governmental entity's or executive director's discretion.(2) Approval of construction plans. If construction plans were not submitted initially as a part of the preliminary plans, the applicant shall submit construction plans to the governmental entity and executive director before beginning construction. A RUD shall not construct any facility without first obtaining approval of the construction plans by the executive director and the governmental entity. A RUD shall not construct any facility that differs from the approved construction plans.(3) Changes and additions. Changes and additions to a facility shall be filed with the commission for approval. The filing shall fully explain the reason for the change and the estimated cost and shall be accompanied by an engineering report with amended drawings and documents. Additional information shall be furnished as deemed necessary by the executive director. Except to the extent that the decision is delegated to the executive director, the commission will issue an order approving or disapproving the changes and additions. Field changes made during construction shall be submitted to the governmental entity and the executive director if they total less than $25,000 and do not alter the approved plans or affect the scope of the work. In that case the executive director will approve or disapprove the changes and additions.(4) Failure to comply.(A) If work has not been done in compliance with these provisions, the executive director will serve notice on the RUD. If compliance is not achieved within the time specified, approval of the construction plans may be suspended.(B) If an applicant has constructed a facility or has begun work on a facility before filing for approval of preliminary plans, the commission will refuse to accept an application for the approval of those preliminary plans until the executive director has approved the pre-existing work. The applicant shall submit information requested by the executive director for the purpose of making this determination.</content><note type="source"><p>Source Note: The provisions of this §15.134 adopted to be effective February 20, 2002, 27 TexReg 1183.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scK/s15.135"><num value="15.135">§15.135</num><heading>Conveyance of Roads</heading><content>In a request for the commission to authorize conveyance of a facility, the RUD shall submit a certified copy of the governmental entity's approval of the conveyance and a certification by a licensed professional engineer authorized to practice in Texas. The certification shall state that the facility has been completed in accordance with all requirements and in accordance with the approved plans.</content><note type="source"><p>Source Note: The provisions of this §15.135 adopted to be effective February 20, 2002, 27 TexReg 1183.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scK/s15.136"><num value="15.136">§15.136</num><heading>Dissolution</heading><content>(a) A RUD may file a petition with the commission setting forth grounds for its dissolution.(b) A request for dissolution shall include a certified financial statement and an auditor's opinion that all bonds have been paid in full.(c) The RUD shall file any additional information requested by the commission.(d) In considering the dissolution of a RUD, the commission will consider all relevant factors. At a minimum, the commission will consider the needs of the traveling public, the rights of third parties, and the interests of local political subdivisions, including those who do not fall under the definition of governmental entity in this subchapter.</content><note type="source"><p>Source Note: The provisions of this §15.136 adopted to be effective February 20, 2002, 27 TexReg 1183.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c15/scL"><num value="L">SUBCHAPTER L</num><heading>STATE SCENIC BYWAYS PROGRAM</heading><section identifier="/us/state/tx/tac/t43/p1/c15/scL/s15.140"><num value="15.140">§15.140</num><heading>Purpose</heading><content>Transportation Code, Chapter 391, Subchapter I, requires the department to establish a State Scenic Byways Program. This subchapter sets forth the procedures for the program.</content><note type="source"><p>Source Note: The provisions of this §15.140 adopted to be effective December 20, 2021, 46 TexReg 8759.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scL/s15.141"><num value="15.141">§15.141</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Department--The Texas Department of Transportation.(2) National Scenic Byway--A roadway designated as a National Scenic Byway by the Federal Highway Administration under Title 23, §162, United States Code.</content><note type="source"><p>Source Note: The provisions of this §15.141 adopted to be effective December 20, 2021, 46 TexReg 8759.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scL/s15.142"><num value="15.142">§15.142</num><heading>State Scenic Byways Program</heading><content>(a) The State Scenic Byways Program works in conjunction with the national scenic byways program, 23 U.S.C. §162 and guidance for that program from the federal highway administration.(b) To be a State Scenic Byway, a highway must be described by Transportation Code, §391.252, and designated by the department as a State Scenic Byway under this subchapter.</content><note type="source"><p>Source Note: The provisions of this §15.142 adopted to be effective December 20, 2021, 46 TexReg 8759.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scL/s15.143"><num value="15.143">§15.143</num><heading>Eligible Entity</heading><content>(a) To be eligible to participate in the State Scenic Byways Program, an entity must be:(1) a political subdivision; or(2) a community group that is approved by the department.(b) To be approved for participation in the program, a community group must submit to the department:(1) an application in the form prescribed by the department; and(2) information supporting the application, as required by the department.(c) The department will send to a community group that applies under subsection (b) of this section notice of the approval or rejection of its application for participation in the program before the 60th day after the day on which that application and all required information is first received by the department.</content><note type="source"><p>Source Note: The provisions of this §15.143 adopted to be effective December 20, 2021, 46 TexReg 8759.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scL/s15.144"><num value="15.144">§15.144</num><heading>Scenic Byways Application Procedures</heading><content>(a) State Scenic Byways Application. An eligible entity may submit to the department an application for the designation of a highway as a State Scenic Byway in the form prescribed by the department.(b) Concurrence. Before the department may designate a highway as a State Scenic Byway, the applicant must obtain concurrence from each governmental entity that has jurisdiction over the highway that is subject to the application.(c) National Scenic Byway Applications. Subject to Federal Highway Administration notice and after a highway is designated as a State Scenic Byway, an eligible entity may submit to the department:(1) an application for designation of the State Scenic Byway as a National Scenic Byway; or(2) an application for a National Scenic Byway grant for a project on the State Scenic Byway.</content><note type="source"><p>Source Note: The provisions of this §15.144 adopted to be effective December 20, 2021, 46 TexReg 8759.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scL/s15.145"><num value="15.145">§15.145</num><heading>Matching Funds</heading><content>An eligible entity under the program may pay for the costs of a project that are not covered by a grant made under 23 U.S.C. §162. The department may use money from the state highway fund for a project that receives a grant made under 23 U.S.C. §162 only to satisfy the state matching fund requirements for the grant.</content><note type="source"><p>Source Note: The provisions of this §15.145 adopted to be effective December 20, 2021, 46 TexReg 8759.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scL/s15.146"><num value="15.146">§15.146</num><heading>Outdoor Advertising Prohibited</heading><content>In accordance with §21.145of this title (relating to Prohibited Signs), Transportation Code, §391.252, and 23 U.S.C. §131(s), outdoor advertising on a State Scenic Byway is prohibited.</content><note type="source"><p>Source Note: The provisions of this §15.146 adopted to be effective December 20, 2021, 46 TexReg 8759.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scL/s15.147"><num value="15.147">§15.147</num><heading>Removal of Designation</heading><content>The department may remove a State Scenic Byway designation if the department determines that the highway no longer meets the criteria for designation under the national scenic byways program provided by 23 U.S.C. §162.</content><note type="source"><p>Source Note: The provisions of this §15.147 adopted to be effective December 20, 2021, 46 TexReg 8759.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c15/scN"><num value="N">SUBCHAPTER N</num><heading>STATE HIGHWAY PROJECTS FINANCED THROUGH THE ISSUANCE OF BONDS AND OTHER PUBLIC SECURITIES</heading><section identifier="/us/state/tx/tac/t43/p1/c15/scN/s15.170"><num value="15.170">§15.170</num><heading>Purpose</heading><content>Transportation Code, §222.003, allows the Texas Transportation Commission to issue bonds and other public securities secured by a pledge of and payable from revenue deposited to the credit of the state highway fund. Proceeds from the sale of these bonds and other public securities must be used to fund state highway improvement projects, subject to the limitations provided in that section. This subchapter describes the criteria and policies that will be used to select projects.</content><note type="source"><p>Source Note: The provisions of this §15.170 adopted to be effective April 15, 2004, 29 TexReg 3649; amended to be effective August 21, 2008, 33 TexReg 6609.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scN/s15.171"><num value="15.171">§15.171</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:(1) Accident data--Information detailing the number of motor vehicle traffic accidents or casualties at or on a particular highway location, segment of highway, or type of highway.(2) Bond--A public security issued by the State of Texas under the authority of Transportation Code, §222.003, for improvements to the state highway system and secured by a pledge of and payable from revenue deposited to the credit of the state highway fund.(3) Commission--The Texas Transportation Commission.(4) Department--The Texas Department of Transportation.(5) Executive Director--The executive director of the department or the director's designee.(6) Grade crossing--The intersection of a railroad and a public roadway.(7) Grade separation--A structure that separates two highways, a highway and a railroad line, a highway and a county road, or a highway and a city street.(8) Hazard Elimination Program--A federal construction program mandated under 23 U.S.C. §152 to reduce the number and severity of traffic accidents.(9) Hazardous location--A location on the state highway system that requires improvement in order to increase safety at a location, as determined by the department through accident data analysis or engineering judgment.(10) Highway--A public road, including right of way and all appurtenances, that is on the designated state highway system.(11) Narrow two-lane highway--A two lane road on the state highway system with a width of less than 24 feet, including any paved shoulder.(12) Pavement geometry--The vertical, horizontal and pavement structure design elements of a highway or bridge feature.(13) Safety appurtenance--Highway safety features such as breakaway sign supports, breakaway utility poles, traffic barriers, impact attenuators, traversable terrain, and hardware features such as drainage inlets, barriers, and other safety related fixtures.(14) Safety project--A project that reduces accidents or corrects or improves a hazardous location.(15) State highway system--The system of highways in the state included in a comprehensive plan prepared by the executive director with the approval of the commission, in accordance with Transportation Code, §201.103.(16) State highway improvement project--Improvement projects designed to improve mobility, reduce congestion, or make other needed upgrades to the state highway system.(17) Texas Highway Trunk System--A planned rural network of four or more lane divided roadways that will serve as a principal connector for Texas cities of greater than 20,000 population as well as major ports and points of entry.(18) Unified Transportation Program--The 10-year financial plan of the Texas Department of Transportation outlining project development and construction.</content><note type="source"><p>Source Note: The provisions of this §15.171 adopted to be effective April 15, 2004, 29 TexReg 3649; amended to be effective August 21, 2008, 33 TexReg 6609.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scN/s15.172"><num value="15.172">§15.172</num><heading>Use of Proceeds</heading><content>(a) Transportation Code, §222.003(e) establishes certain prohibitions on the use of proceeds from the sale of the bonds.(b) The proceeds of the bonds authorized by Transportation Code, §222.003 shall be used to fund state highway improvement projects. Transportation Code, §222.003(d), allocates a specified portion of those proceeds to safety projects.</content><note type="source"><p>Source Note: The provisions of this §15.172 adopted to be effective April 15, 2004, 29 TexReg 3649; amended to be effective August 21, 2008, 33 TexReg 6609.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scN/s15.173"><num value="15.173">§15.173</num><heading>State Highway Improvement Projects</heading><content>(a) Eligibility. Projects or programs contained in the department's Unified Transportation Program are eligible for funding.(b) Selection criteria. The department will consider one or more of the following criteria in selecting projects for funding under this section:(1) the potential of the project to improve mobility;(2) the potential of the project to maintain and preserve the existing transportation system;(3) the anticipated time required to complete the candidate project;(4) adherence to all accepted department design standards as well as applicable state and federal law and regulation;(5) feasibility of the project;(6) traffic volume; and(7) the potential of the project to qualify as a safety project.</content><note type="source"><p>Source Note: The provisions of this §15.173 adopted to be effective April 15, 2004, 29 TexReg 3649; amended to be effective August 21, 2008, 33 TexReg 6609.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scN/s15.174"><num value="15.174">§15.174</num><heading>Safety Projects</heading><content>(a) Eligibility. Safety projects are eligible for funding, and include:(1) projects submitted under the guidelines of the department's Hazard Elimination Program designed to reduce the number and severity of traffic accidents;(2) projects designed to increase the width of narrow two-lane highways to a width of 24 feet or greater;(3) expansion of undivided highways on the Texas Highway Trunk System to four-lane divided highways;(4) construction of grade separations at highway intersections;(5) construction of railroad grade separations eliminating at-grade rail/highway intersections by adding new railroad overpasses or underpasses;(6) the installation of median traffic barriers;(7) treatment or removal of roadside fixed objects that may create a roadway safety hazard such as sign or traffic signal supports, lighting supports, vegetation, mailboxes, barriers, bridge rails, fences, culverts, ditches, curbs, embankments, and other items located in the state highway right of way;(8) improvements at rail/highway at-grade crossings, including active warning devices such as crossing gates, lights, and warning bells;(9) the installation of sidewalks on state highway right of way to improve pedestrian safety and mobility;(10) intersection improvements designed to improve pedestrian safety such as the installation of curb ramps;(11) the installation of turn lanes at highway intersections;(12) the improvement of geometrics, signal timing, and other general infrastructure improvements to intersections;(13) the installation or improvement of traffic signals, flashing beacons, and other traffic control devices;(14) the installation or improvement of safety appurtenances; and(15) the conversion of two-way frontage roads to one-way frontage roads.(b) Selection criteria. The department will consider accident data, traffic volume, pavement geometry, and other conditions that can create or exacerbate hazardous roadway conditions in selecting projects for funding under this section, and one or more of the following criteria:(1) potential of the candidate project to correct identified safety problems;(2) the anticipated time required to complete the candidate project;(3) adherence to all accepted department design standards as well as applicable state and federal law and regulation; and(4) feasibility of the project.</content><note type="source"><p>Source Note: The provisions of this §15.174 adopted to be effective April 15, 2004, 29 TexReg 3649.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c15/scO"><num value="O">SUBCHAPTER O</num><heading>COUNTY TRANSPORTATION INFRASTRUCTURE FUND GRANT PROGRAM</heading><section identifier="/us/state/tx/tac/t43/p1/c15/scO/s15.180"><num value="15.180">§15.180</num><heading>Purpose</heading><content>Transportation Code, Chapter 256, Subchapter C, requires the department to establish and administer a grant program that provides funding to counties for transportation infrastructure projects located in areas of the state affected by increased oil and gas production. This subchapter sets forth the procedures for submission and review of applications, the allocation of funds to eligible counties, and the reimbursement to counties of allowable costs incurred under the grant program.</content><note type="source"><p>Source Note: The provisions of this §15.180 adopted to be effective December 12, 2013, 38 TexReg 8917.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scO/s15.181"><num value="15.181">§15.181</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--The Texas Transportation Commission.(2) Department--The Texas Department of Transportation.(3) District--One of the geographic areas into which the department is divided in order to conduct its primary work activities.(4) Executive director--The executive director of the department, or the executive director's designee.(5) Fund--The transportation infrastructure fund established under Transportation Code, Chapter 256, Subchapter C.(6) Transportation infrastructure project--The planning for, construction of, reconstruction of, or maintenance of transportation infrastructure, including roads, bridges, and culverts, intended to alleviate degradation caused by the exploration, development, or production of oil or gas. The term includes work intended to prevent or reduce further damage to a road and the lease or rental of equipment used for road maintenance.(7) Weight tolerance permit--A permit issued under Transportation Code, Chapter 623 authorizing a vehicle to exceed maximum legal weight limitations.(8) Well completion--The completion, reentry, or recompletion of an oil or gas well as documented by the well operator's initial submission to the Railroad Commission of Texas of a report containing that information.</content><note type="source"><p>Source Note: The provisions of this §15.181 adopted to be effective December 12, 2013, 38 TexReg 8917.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scO/s15.182"><num value="15.182">§15.182</num><heading>Eligibility</heading><content>To be eligible for a grant from the fund, a county must be entirely or partially in an area affected by increased oil and gas production.</content><note type="source"><p>Source Note: The provisions of this §15.182 adopted to be effective December 12, 2013, 38 TexReg 8917; amended to be effective December 5, 2018, 43 TexReg 7805.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scO/s15.183"><num value="15.183">§15.183</num><heading>Matching Funds</heading><content>(a) Amount. To receive money from the fund a county must provide matching funds in an amount at least equal to:(1) 20 percent of the amount of the grant; or(2) if the county is an economically disadvantaged county, as defined in Transportation Code, §222.053, 10 percent of the amount of the grant.(b) Cash match. The matching funds must be cash and may be from any source other than the department.</content><note type="source"><p>Source Note: The provisions of this §15.183 adopted to be effective December 12, 2013, 38 TexReg 8917.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scO/s15.184"><num value="15.184">§15.184</num><heading>Award</heading><content>(a) Mandatory award. The department will award a grant from the fund to each eligible county that submits a valid application in accordance with §15.188 of this subchapter (relating to Application Procedure).(b) Amount. The department will determine the amount of the award in accordance with the allocations under §15.185 and §15.186 of this subchapter (relating to Allocation to Counties and Calculation of Award, respectively) and will pay the amount as described by §15.192 of this subchapter (relating to Payment of Money).</content><note type="source"><p>Source Note: The provisions of this §15.184 adopted to be effective December 12, 2013, 38 TexReg 8917.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scO/s15.185"><num value="15.185">§15.185</num><heading>Allocation to Counties</heading><content>The department will allocate the total amount awarded from the fund during a state fiscal year in accordance with Transportation Code, §256.103(b).</content><note type="source"><p>Source Note: The provisions of this §15.185 adopted to be effective December 12, 2013, 38 TexReg 8917; amended to be effective March 18, 2020, 45 TexReg 1865.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scO/s15.186"><num value="15.186">§15.186</num><heading>Calculation of Award</heading><content>(a) Allocation of excess. If the department determines that the total amount of funds allocated to one or more counties under §15.185 of this subchapter (relating to Allocation to Counties) exceeds the amount requested in the county's application, the department will total all of those excess amounts. The department will, as an additional step in the allocation process for the same designated period, reallocate that total in accordance with the procedures in §15.185 of this subchapter as if it were the initial allocation, except that the counties whose requested amounts have been satisfied will not be considered for the purposes of the reallocation.(b) Award. The addition of any excess amounts to a county's initial allocation will constitute the total amount of the grant award to that county for the designated period; provided, however, that a county's grant award for any designated period may not exceed the amount requested in its application.</content><note type="source"><p>Source Note: The provisions of this §15.186 adopted to be effective December 12, 2013, 38 TexReg 8917.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scO/s15.187"><num value="15.187">§15.187</num><heading>Acceptance of Applications</heading><content>(a) Request for applications. From time to time the commission may designate a period during which the department will accept applications for grants from the fund and, for each designated period, prescribe conditions for submission.(b) Notice. The department will publish notice of the request for applications on the department's website and will provide a written notice to the county judge of each county in the state. The notice will specify:(1) the period of time for submitting applications;(2) the estimated total amount of money available for grants from the fund for the designated period;(3) the estimated allocation for each county in the state based on the allocation formula described in §15.185 of this subchapter (relating to Allocation to Counties) using the assumption that all counties will be eligible and apply; and(4) any additional conditions for submission.</content><note type="source"><p>Source Note: The provisions of this §15.187 adopted to be effective December 12, 2013, 38 TexReg 8917.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scO/s15.188"><num value="15.188">§15.188</num><heading>Application Procedure</heading><content>(a) Application form. An eligible county may submit to the department an application for a grant from the fund.(1) The application must be submitted electronically using the department's automated system designated for the grant program.(2) A county is responsible for obtaining its use of a computer system and access to the Internet.(3) Upon request, a county may use the department's computer system at any district office location.(4) For an application to be valid, the county must submit the application during a period designated under §15.187 of this subchapter (relating to Acceptance of Applications) and satisfy the requirements of this section.(b) Plan requirements. An application must contain a plan that:(1) provides a prioritized list of transportation infrastructure projects to be funded by the grant;(2) describes the scope of each listed transportation infrastructure project including:(A) a clear and concise description of the proposed work;(B) an implementation plan, including a schedule of proposed activities;(C) an estimate of project costs;(D) the project funding sources; and(E) other information required by the department;(3) specifies the total amount of grant funds being requested in the application;(4) identifies matching funds required under §15.183 of this subchapter (relating to Matching Funds); and(5) identifies other potential sources of funding to maximize resources available for the listed transportation infrastructure projects.(c) Information for previous grant. If the county has received a grant under this subchapter, it must also submit:(1) a certification that all previous grants have been or are being spent in accordance with the applicable plan submitted under subsection (b) of this section; and(2) an accounting of expenditures under the previous grant, including any amounts spent on administrative costs.</content><note type="source"><p>Source Note: The provisions of this §15.188 adopted to be effective December 12, 2013, 38 TexReg 8917; amended to be effective December 5, 2018, 43 TexReg 7805; amended to be effective March 18, 2020, 45 TexReg 1865; amended to be effective December 4, 2024, 49 TexReg 9768.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scO/s15.189"><num value="15.189">§15.189</num><heading>Review of Application</heading><content>(a) Preliminary review. The department will conduct a preliminary review of each timely submitted application within 14 days after the date of receipt of the application and will notify the applicant in writing if any required information is missing. The applicant must correct the deficiency on or before the later of the deadline for submitting applications or the 14th day after the date of receipt of a deficiency notice. When the application is complete, the department will notify the applicant in writing.(b) Department review. The department will complete the review of each valid application before the 31st day after the date that the department receives the application unless additional time is needed, in which event the executive director may extend the period up to the 60th day after the date of receipt of the application by providing written notice of the extension to the applicant.(c) Additional considerations. In reviewing an application, the department will:(1) seek other potential sources of funding to maximize resources available for the transportation infrastructure projects to be funded by the requested grant; and(2) consult related transportation planning documents to improve project efficiency and to work effectively in partnership with the county.</content><note type="source"><p>Source Note: The provisions of this §15.189 adopted to be effective December 12, 2013, 38 TexReg 8917.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scO/s15.190"><num value="15.190">§15.190</num><heading>Notice of Award</heading><content>The department will provide a written notice to each applicant that states the amount of the grant awarded from the fund or stating the reasons for denial of the grant.</content><note type="source"><p>Source Note: The provisions of this §15.190 adopted to be effective December 12, 2013, 38 TexReg 8917.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scO/s15.191"><num value="15.191">§15.191</num><heading>Agreement</heading><content>(a) Requirement; content. Before receiving a grant from the fund, a county must enter into an agreement with the department under this section. The agreement must include, in addition to other provisions, a commitment by the county to:(1) place the transportation infrastructure project on the county road system, if it is a county road not already on the system;(2) expend grant money received only on allowable costs as provided in §15.192 of this subchapter (relating to Payment of Money);(3) comply with all applicable federal, state, and local environmental laws and regulations and permitting requirements;(4) maintain the road after completion of the proposed work, if it is a county road;(5) contribute to the department for each transportation infrastructure project located on the state highway system, from the amount awarded to the county from the fund and the county's matching funds, if applicable, an amount equal to the allowable costs, as defined by §15.192 of this subchapter, incurred by the department for that project; and(6) satisfy the requirements applicable to the county under Transportation Code, §256.107 and §256.108.(b) Amendment to agreement. Any amendment to the agreement described in subsection (a) of this section must be in writing and executed jointly by the executive director and the county. A county may add a transportation infrastructure project to the prioritized list described in its application submitted under §15.188 of this subchapter (relating to Application Procedure), or a project on the list may be moved forward or backward in priority if the county submits to the department the requested revision and, for any added project, contains the information required by §15.188(b)(1) and (2) of this subchapter.</content><note type="source"><p>Source Note: The provisions of this §15.191 adopted to be effective December 12, 2013, 38 TexReg 8917; amended to be effective March 18, 2020, 45 TexReg 1865.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scO/s15.192"><num value="15.192">§15.192</num><heading>Payment of Money</heading><content>(a) Allowable costs. A county may receive money from the fund only as reimbursement of allowable costs related to the transportation infrastructure projects listed in accordance with this subchapter. Allowable costs are the necessary project related expenditures properly attributable to the work performed.(1) The county must request reimbursement using the forms and procedures specified by the department.(2) Reimbursement will be made in accordance with generally accepted cost accounting practices on the basis of direct and related indirect costs that are incurred after the department makes the grant award under §15.190 of this subchapter (relating to Notice of Award).(3) The department, on the request of a county, will make intermediate payments not more often than monthly.(b) Audit. All county cost records and accounts relating to a project that receives money from the fund are subject to audit by representatives of the department and other entities of the State of Texas and, if applicable, the federal government, for a period of three years after the date that final payment is received by the county.</content><note type="source"><p>Source Note: The provisions of this §15.192 adopted to be effective December 12, 2013, 38 TexReg 8917; amended to be effective December 5, 2018, 43 TexReg 7805.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scO/s15.193"><num value="15.193">§15.193</num><heading>Certification of Completion</heading><content>Within 60 days after the date of completion of a listed transportation infrastructure project, a county receiving a grant from the fund must submit a written certification that it has complied with the requirements of this subchapter, including a certification that the project has been constructed in accordance with the applicable requirements. The certification must describe the allowable costs for the project and the amount reimbursed from the fund.</content><note type="source"><p>Source Note: The provisions of this §15.193 adopted to be effective December 12, 2013, 38 TexReg 8917.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scO/s15.194"><num value="15.194">§15.194</num><heading>Use of Unexpended Funds</heading><content>If allocated funds remain after reimbursement of all of a county's listed transportation infrastructure projects, the county may use the unexpended balance for any transportation project in the county if within one year after the date of submission of the written certification required by §15.193 of this subchapter (relating to Certification of Completion), the county submits in writing to the department a proposed amendment to the agreement under §15.191 of this subchapter (relating to Agreement) that identifies the additional project and contains the information required by §15.188(b)(2) and (4) of this subchapter (relating to Application Procedure) for that project, and the department and county execute the proposed amendment.</content><note type="source"><p>Source Note: The provisions of this §15.194 adopted to be effective December 12, 2013, 38 TexReg 8917.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scO/s15.195"><num value="15.195">§15.195</num><heading>Enforcement; Notice of Failure to Comply</heading><content>(a) The executive director may:(1) prohibit a county from participating in the program under this subsection if the executive director determines that the county has not complied with one or more material requirements of this subchapter;(2) prohibit a county from participating in the program under this subsection until the executive director determines that the county has complied with all material requirements of this subchapter; or(3) remove a project from participation in the program under this subsection if work on the project is not begun within three years after the date of the agreement under §15.191 of this subchapter (relating to Agreement) or within another reasonable period that is agreed to by the department and the county.(b) Prior to exercising any of the enforcement remedies under this section or the reimbursement remedy described under §15.196 of this subchapter (relating to Reimbursement), the department will provide to the county written notice that identifies the applicable requirement and specifies the failure to comply. The county may respond in writing to the department with a reasonable schedule for the county's timely compliance with the applicable requirement, or if compliance is not practical, with an alternative proposal that is acceptable to the department. If the county fails to deliver an acceptable response to the department within 30 days after the date that the county received the notice under this section, the department may proceed with the remedy provided under the applicable section.</content><note type="source"><p>Source Note: The provisions of this §15.195 adopted to be effective December 12, 2013, 38 TexReg 8917.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scO/s15.196"><num value="15.196">§15.196</num><heading>Reimbursement</heading><content>If a county commences performance on a transportation infrastructure project but fails to complete the project, the department may seek reimbursement of all grant money received by the county for that project. Any money recovered under this section will be deposited to the credit of the fund.</content><note type="source"><p>Source Note: The provisions of this §15.196 adopted to be effective December 12, 2013, 38 TexReg 8917.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c15/scP"><num value="P">SUBCHAPTER P</num><heading>SHIP CHANNEL IMPROVEMENT REVOLVING LOAN PROGRAM</heading><section identifier="/us/state/tx/tac/t43/p1/c15/scP/s15.250"><num value="15.250">§15.250</num><heading>Purpose; Delegation Authority</heading><content>(a) Transportation Code, Chapter 56, establishes the ship channel improvement revolving fund as an account in the general revenue fund, to be administered by the commission. The Ship Channel Improvement Revolving Loan Program is established to use money from the fund to provide loans for qualified projects as authorized under Transportation Code, Chapter 56.(b) The executive director may delegate to a department employee any power or duty assigned to the executive director by this subchapter.</content><note type="source"><p>Source Note: The provisions of this §15.250 adopted to be effective October 17, 2018, 43 TexReg 6848.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scP/s15.251"><num value="15.251">§15.251</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--The Texas Transportation Commission.(2) Department--The Texas Department of Transportation.(3) Executive director--The executive director of the department.</content><note type="source"><p>Source Note: The provisions of this §15.251 adopted to be effective October 17, 2018, 43 TexReg 6848.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scP/s15.252"><num value="15.252">§15.252</num><heading>Eligible Applicant</heading><content>The department will accept an application under this subchapter only from an entity that is responsible for providing revenue or security for the local share of qualified project costs.</content><note type="source"><p>Source Note: The provisions of this §15.252 adopted to be effective October 17, 2018, 43 TexReg 6848; amended to be effective October 12, 2022, 47 TexReg 6616.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scP/s15.253"><num value="15.253">§15.253</num><heading>Qualified Projects</heading><content>(a) To qualify for a loan under this subchapter, a project must:(1) deepen or widen a ship channel; and(2) be authorized by the United States Congress.(b) Under Transportation Code, §56.003(c), a project for maintenance dredging is not a qualified project under this subchapter.</content><note type="source"><p>Source Note: The provisions of this §15.253 adopted to be effective October 17, 2018, 43 TexReg 6848.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scP/s15.254"><num value="15.254">§15.254</num><heading>Application Procedures</heading><content>To apply for a loan under this subchapter, an applicant must submit to the executive director an application in a form prescribed by the department and any other information that may be required by the department.</content><note type="source"><p>Source Note: The provisions of this §15.254 adopted to be effective October 17, 2018, 43 TexReg 6848.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scP/s15.255"><num value="15.255">§15.255</num><heading>Department Action</heading><content>(a) The department will review an application submitted under this subchapter to ensure that sufficient information has been provided to support the eligibility of the applicant and the project, and advise the applicant of any required information or data that is missing.(b) When the application is complete, the executive director will submit findings and recommendations to the commission for consideration as soon as practicable.</content><note type="source"><p>Source Note: The provisions of this §15.255 adopted to be effective October 17, 2018, 43 TexReg 6848.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scP/s15.256"><num value="15.256">§15.256</num><heading>Commission Action</heading><content>(a) The commission will consider the executive director's findings and recommendations.(b) The commission may approve an application only if the application is from an eligible applicant for a qualified project as defined in this subchapter.(c) The commission will approve or disapprove an application under this subchapter by minute order that includes the rationale, findings, and conclusions on which approval or disapproval is based.(d) Nothing in this subchapter is intended to require the approval of a request made under this subchapter.</content><note type="source"><p>Source Note: The provisions of this §15.256 adopted to be effective October 17, 2018, 43 TexReg 6848.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scP/s15.257"><num value="15.257">§15.257</num><heading>Compliance Requirements</heading><content>(a) An entity that receives a loan under this subchapter shall comply with applicable state and federal law in the performance of work on a project for which proceeds from a loan under this subchapter are used.(b) The entity shall maintain its books and records related to the project in accordance with generally accepted accounting principles and with all other applicable federal and state requirements.</content><note type="source"><p>Source Note: The provisions of this §15.257 adopted to be effective October 17, 2018, 43 TexReg 6848.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scP/s15.258"><num value="15.258">§15.258</num><heading>Audits and Reports</heading><content>(a) An entity that receives a loan under this subchapter shall have an audit prepared annually by a certified public accountant in accordance with generally accepted auditing standards and with all other applicable federal and state requirements. The entity shall cause the auditor to provide a full copy of the audit report and any other management letters or auditor's comments directly to the department within 30 days after the report and information have been provided to the governing body of the entity.(b) An entity that receives a loan under this subchapter, on request of the department and at the entity's cost, shall provide to the department:(1) in a format acceptable to the department, an annual report listing project expenditures, providing an accounting of proceeds of a loan under this subchapter, and providing any other information requested by the department; and(2) a copy of any report the entity is required to provide to a local, state, or federal agency.</content><note type="source"><p>Source Note: The provisions of this §15.258 adopted to be effective October 17, 2018, 43 TexReg 6848.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scP/s15.259"><num value="15.259">§15.259</num><heading>Document Retention and Access</heading><content>Unless the department in writing provides a shorter period, the entity shall retain and hold open for state or federal audits all original project files, records, accounts, and supporting documents until the later of the date that:(1) the project is completed;(2) all loans under this subchapter have been repaid; or(3) the retention period required by applicable federal and state law ends.</content><note type="source"><p>Source Note: The provisions of this §15.259 adopted to be effective October 17, 2018, 43 TexReg 6848.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scP/s15.260"><num value="15.260">§15.260</num><heading>Financial and Credit Requirements</heading><content>(a) An entity that receives a loan under this subchapter shall repay the loan according to terms specified by the commission.(b) An entity that receives a loan under this subchapter shall submit to the department the annual operating and capital budgets adopted by the governing body of the entity for each fiscal year that a loan under this subchapter is outstanding and any amended or supplemental operating or capital budget approved by the governing body of the entity. Such a document must be certified as correct by the entity's chief administrative officer or chief financial officer. The entity shall deliver the document to the department within 30 days of the date of its adoption or approval.(c) For any debt payable from the same revenue source as that used to repay a loan under this subchapter, the entity that receives the loan, within 30 days after the date that the entity submits to the Electronic Municipal Market Access System (EMMA) of the Municipal Securities Rulemaking Board a notice of a material event required to be disclosed under Rule 15c2-12 of the United States Securities and Exchange Commission (17 C.F.R. §240.15c2-12), shall submit to the department a written document that states that the entity has made the submission to EMMA.</content><note type="source"><p>Source Note: The provisions of this §15.260 adopted to be effective October 17, 2018, 43 TexReg 6848.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scP/s15.261"><num value="15.261">§15.261</num><heading>Delivery of Documents After Project Completion</heading><content>An entity that receives a loan under this subchapter, on completion of the project, shall forward to the department all project files and reports as requested by the department.</content><note type="source"><p>Source Note: The provisions of this §15.261 adopted to be effective October 17, 2018, 43 TexReg 6848.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c15/scP/s15.262"><num value="15.262">§15.262</num><heading>Agreements</heading><content>(a) Form of agreement. An agreement evidencing a loan may be in the form of:(1) a contract or similar document;(2) a bond, note, or other obligation issued by the applicant; or(3) a loan structure similar to a line of credit.(b) Negotiation of terms. The executive director will negotiate the terms of an agreement as necessary to comply with any requirements of commission approval. An agreement must include the terms required by this subchapter and by Transportation Code, §56.003(a), as applicable to a particular project, and may include other terms.(c) Prepayments. Principal and interest may be prepaid. The agreement will provide the prepayment terms.</content><note type="source"><p>Source Note: The provisions of this §15.262 adopted to be effective October 12, 2022, 47 TexReg 6616.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p1/c16"><num value="16">CHAPTER 16</num><heading>PLANNING AND DEVELOPMENT OF TRANSPORTATION PROJECTS</heading><subchapter identifier="/us/state/tx/tac/t43/p1/c16/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t43/p1/c16/scA/s16.1"><num value="16.1">§16.1</num><heading>Purpose</heading><content>It is in the interest of the State of Texas to encourage and promote the safe and efficient management, operation, and development of transportation systems that will serve the mobility needs of people and movement of freight, and foster economic growth and development in both rural and urbanized areas of the state, while minimizing transportation related air pollution. These goals can be advanced through a continuing, cooperative, and comprehensive transportation planning process that includes the state, metropolitan, rural, rail, and public transportation organizations, and promotes plans, programs, and policies that consider all transportation modes and support community development and social goals. This chapter prescribes minimum standards for metropolitan and rural transportation planning and program development, describes how the state and planning organizations will develop coordinated transportation planning processes, plans, and programs, and ensures the eligibility of the state to continue to receive federal transportation funds. The ultimate goal is to establish a transparent, well-defined, and understandable system of planning and programming that integrates priorities, financial forecasts, and project milestones.</content><note type="source"><p>Source Note: The provisions of this §16.1 adopted to be effective January 1, 2011, 35 TexReg 8388.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c16/scA/s16.2"><num value="16.2">§16.2</num><heading>Definitions and Acronyms</heading><content>(a) The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Chief financial officer--The chief financial officer of the department, or that officer's designee.(2) Clean Air Act (CAA)--The Clean Air Act of 1970 and Amendments of 1990 (42 U.S.C. §7401 et seq.), including procedures that apply to all transportation plans, programs, and projects as they relate to air quality.(3) Commission--The Texas Transportation Commission.(4) Conformity--Clean Air Act requirements that ensure that federal funding and approval are given to transportation plans, programs, and projects that are consistent with the air quality goals established by the State Implementation Plan.(5) Corridor--A broad geographic band with no predefined size or scale that follows a general directional flow, providing for the movement of people and freight and connecting major sources of transportation trips. It involves a nominally linear transportation service area that may contain a number of streets, highways, rail, utility, and public transportation route alignments.(6) Department--The Texas Department of Transportation.(7) District--One of the geographic areas into which the department is divided in order to conduct its primary work activities.(8) District engineer--The chief administrative officer in charge of a district, or that officer's designee.(9) Environmental Protection Agency (EPA)--The agency of the federal government with broad responsibilities for environmental protection and enforcement, including air quality, as it relates to this chapter.(10) Executive director--The executive director of the department or the executive director's designee.(11) Federal discretionary programs--Programs that provide the U.S. Department of Transportation with discretion to award funds for specific projects outside of the normal transportation fund formulas. The U.S. Congress may designate the projects that are eligible for discretionary program funds and the scope of discretion may vary depending on the applicable statutory provisions.(12) Federal Highway Administration (FHWA)--The federal agency primarily responsible for highway transportation.(13) Federal Railroad Administration (FRA)--The federal agency primarily responsible for railroad transportation.(14) Federal Transit Administration (FTA)--The federal agency primarily responsible for public transportation.(15) Governor--The governor of the State of Texas.(16) Letting--The official act of opening contractors' bids for a proposed highway improvement contract to construct, reconstruct, or maintain a segment of the state highway system, or to construct or maintain a building or other facility appurtenant to a building.(17) Local transportation entity--An entity that participates in the transportation planning process. The term includes but is not limited to:(A) a metropolitan planning organization;(B) a rural planning organization;(C) a regional tollway authority organized under Transportation Code, Chapter 366;(D) a regional transportation authority operating under Transportation Code, Chapter 452;(E) a metropolitan rapid transit authority operating under Transportation Code, Chapter 451;(F) a rural transit district as defined by Transportation Code, §458.001;(G) a coordinated county transportation authority operating under Transportation Code, Chapter 460;(H) a rural rail transportation district operating under Transportation Code, Chapter 172; and(I) a commuter rail district operating under Transportation Code, Chapter 174.(18) Metropolitan planning organization (MPO)--The organization or policy board of an organization created and designated under 23 U.S.C. §134 and 49 U.S.C. §5303, as amended, to make transportation planning decisions for the metropolitan planning area and carry out the metropolitan transportation planning process.(19) Mexican ports of entry--Connections between Mexico and the State of Texas at international bridge crossings of 5,000 vehicles or more average daily traffic.(20) Mobility projects--Transportation projects that add additional mainlanes to an existing highway facility or construct lanes on a new location and have a length of at least one mile, or any projects that otherwise improve transportation facilities for highways, public transportation, or other modes of transportation to decrease travel time and the level or duration of traffic congestion, and to increase the safe and efficient movement of people and freight.(21) On-system--The system of highways in the state included in a comprehensive plan prepared by the department's executive director under the direction and with the approval of the commission in accordance with Transportation Code, §201.103.(22) Planning organization--A metropolitan planning organization, a rural planning organization, or, for an area that is not in the boundaries of a metropolitan planning organization or a rural planning organization, a district.(23) Public transportation--Transportation of passengers and their hand carried packages or baggage on a regular or continuing basis by means of surface or water conveyance by a public or private entity that receives financial assistance from the Federal Highway Administration, the Federal Transit Administration, the Federal Railroad Administration, the department, or a local political subdivision.(24) Routes--All or a portion of a selected course of travel between two specific geographic locations.(25) Rural planning organization (RPO)--A voluntary organization created and governed by local elected officials with responsibility for transportation decisions at the local level, including an organization established by a council of governments or regional planning commission designated by the governor pursuant to Local Government Code, Chapter 391, to address rural transportation priorities and planning and provide recommendations to the department for areas of the state not included in the boundaries of a metropolitan planning organization.(26) Rural transportation improvement program (RTIP)--A staged, multiyear, intermodal program of transportation projects and public transportation projects developed by the department, in consultation with local officials, for areas of the state outside of the metropolitan planning area boundaries. The RTIP includes a financially constrained plan that demonstrates how the program can be implemented.(27) State Implementation Plan (SIP)--The latest approved version of the state adopted plan promulgated for each nonattainment or maintenance area to achieve or maintain compliance with the national ambient air quality standards required by the federal Clean Air Act.(28) Subarea--A geographic area with no predefined size or scale that is located within the boundaries of a designated metropolitan planning area.(29) Surface Transportation Program (STP)--The funding program established by 23 U.S.C. §133.(30) Texas Commission on Environmental Quality (TCEQ)--The state agency responsible for coordination of natural resources and air quality for the state, including development of the State Implementation Plan.(31) Texas Highway Trunk System--A rural network of four-lane or better divided roadways that will serve as a principal connector of all Texas cities with over 20,000 population as well as major ports and points of entry, not to exceed a total system mileage of 11,500 centerline miles.(32) Transportation control measure (TCM)--Any measure used for the purpose of reducing emissions or concentrations of air pollutants from transportation sources by reducing vehicle use or changing traffic flow or congestion conditions.(33) Transportation management area (TMA)--An urbanized area with a population over 200,000 as defined by the U.S. Bureau of the Census and designated by the U.S. Secretary of Transportation, or any additional area where transportation management area designation is requested by the governor and the metropolitan planning organization and designated by the U.S. Secretary of Transportation.(34) Transportation project--The planning, engineering, right of way acquisition, expansion, improvement, addition, or contract maintenance, other than the routine or contracted routine maintenance of a bridge, highway, toll road or toll road system, or railroad, enhancement of a roadway that increases the safety of the traveling public, air quality improvement initiative, or transportation enhancement activity under 23 U.S.C. §101.(35) Transportation reinvestment zone (TRZ)--An area created and designated by a municipality or county under Transportation Code, §§222.106 - 222.108, to promote and fund one or more transportation projects as authorized under that section.(36) Unified Planning Work Program (UPWP)--The governing planning document, prepared by an MPO on an annual or biennial basis, which identifies the transportation planning work to be undertaken within the metropolitan planning area for the applicable period.(b) Acronyms. The following acronyms, when used in this chapter, are abbreviations for the associated terms. If an associated term is not defined under subsection (a) of this section, a reference is provided to the section in this chapter in which the term is primarily described.(1) CAA--Clean Air Act.(2) EPA--Environmental Protection Agency.(3) FHWA--Federal Highway Administration.(4) FRA--Federal Railroad Administration.(5) FTA--Federal Transit Administration.(6) MPO--Metropolitan planning organization.(7) MTP--Metropolitan transportation plan, as described in §16.53 of this chapter (relating to Metropolitan Transportation Plan).(8) RPO--Rural planning organization.(9) RTIP--Rural transportation improvement program.(10) SIP--State implementation plan.(11) SLRTP--Statewide long-range transportation plan, as described in §16.54 of this chapter (relating to Statewide Long-Range Transportation Plan).(12) STIP--Statewide transportation improvement program, as described in §16.103 of this chapter (relating to Statewide Transportation Improvement Program).(13) STP--Surface transportation program.(14) TCEQ--Texas Commission on Environmental Quality.(15) TCM--Transportation control measure.(16) TIP--Transportation improvement program, as described in §16.101 of this chapter (relating to Transportation Improvement Program).(17) TMA--Transportation management area.(18) TRZ--Transportation reinvestment zone.(19) UPWP--Unified planning work program.(20) UTP--Unified transportation program, as described in §16.105 of this chapter (relating to Unified Transportation Program).</content><note type="source"><p>Source Note: The provisions of this §16.2 adopted to be effective January 1, 2011, 35 TexReg 8388; amended to be effective November 15, 2012, 37 TexReg 8981; amended to be effective September 1, 2018, 43 TexReg 5240; amended to be effective February 16, 2022, 47 TexReg 660.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c16/scA/s16.3"><num value="16.3">§16.3</num><heading>Applicability of Chapter; Effect of Conflict with Other Law</heading><content>(a) Applicability. The provisions of this chapter apply to the department, all metropolitan planning organizations serving urbanized areas as defined by the U.S. Bureau of the Census with populations of at least 50,000, as well as rural planning organizations and appropriate federally-funded public transportation operators as defined by 23 C.F.R. Part 450.(b) Relationship to federal law and regulations. This chapter incorporates by reference federal transportation planning laws and regulations. If a provision of this chapter conflicts with federal law or regulation, the federal law controls to the extent of the conflict.</content><note type="source"><p>Source Note: The provisions of this §16.3 adopted to be effective January 1, 2011, 35 TexReg 8388.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c16/scA/s16.4"><num value="16.4">§16.4</num><heading>Introduction</heading><content>(a) Explanation of process. An effective transportation planning and programming process requires continuous cooperation among many state, local, and federal transportation entities and the integration of numerous requirements imposed by state and federal law. It is a multi-step process that is more dynamic than static and more circular than linear. The process includes development by the department, metropolitan planning organizations (MPO), and rural planning organizations (RPO) of separate but interrelated long-range planning documents that identify projects, strategies, and transportation needs, mid-range programming documents that contain a listing of prioritized projects expected to be ready for implementation in identified future years, and short-range programming documents that contain a listing of prioritized projects that are likely to be implemented. Underlying the planning and programming process is the need to develop reliable financial assumptions and forecasts for common use by all participants at all levels of the process. Finally, there is the allocation of available state and federal resources by the department and MPOs to fund individual projects that will address the long-range needs and goals. Strategic performance measures are used to monitor and evaluate the effectiveness of the process and its participants and to identify areas that need improvement.(b) Document overview. The planning and programming process involves a number of documents that have similar names and overlapping functions.(1) In this chapter, unless the context indicates otherwise, the words plan or planning refer to documents that identify projects, strategies, and transportation needs over an extended period of years to provide for the ultimate development and implementation of an integrated multimodal transportation system. Long-range planning documents include the:(A) statewide long-range transportation plan (SLRTP); and(B) metropolitan transportation plan (MTP), which includes a mid-range component covering a period of ten years.(2) In this chapter, unless the context indicates otherwise, the words program or programming refer to that part of the transportation planning process that identifies a prioritized list of transportation projects proposed for implementation in a specified number of years in the foreseeable future with funding that is reasonably anticipated to be available at the designated time. Programming documents include the:(A) ten-year statewide unified transportation program (UTP);(B) four-year metropolitan transportation improvement program (TIP);(C) four-year rural transportation improvement program (RTIP); and(D) four-year statewide transportation improvement program (STIP).(3) The planning and programming documents are more particularly described in subsections (c) - (e) of this section.(c) Long-range planning documents.(1) The statewide long-range transportation plan (SLRTP) is a comprehensive, statewide multimodal transportation plan that covers a minimum forecast period of 24 years and serves as the defining vision for the state's transportation system and services. It is comprised of two components: a priority based listing of projects that are expected to be developed within the financial constraint of forecasted state and federal funding levels, and a non-financially constrained component that identifies projects, strategies, and other needs that could be developed if additional funding resources become available. The priority based listing of projects is contained in the MTPs and the UTP and is incorporated by reference into the SLRTP. The SLRTP considers the long-range plans and strategies of the metropolitan and rural planning organizations and identifies the state's transportation system strategies, long-term transportation goals, measurable targets, other related performance measures, and priority projects and corridors. The SLRTP includes a rural component for areas not included in the boundaries of a metropolitan planning organization that covers a period of at least 20 years and contains a priority based listing of projects for long-range strategies that lead to the development of an integrated intermodal transportation system. It also includes by reference the statewide transportation improvement program developed under §16.103 of this chapter (relating to Statewide Transportation Improvement Program (STIP)) and the unified transportation program developed under §16.105 of this chapter (relating to Unified Transportation Program (UTP)).(2) A metropolitan transportation plan (MTP) is a long-range plan developed by each MPO for areas within its boundaries, that covers a period of at least 20 years and contains a priority based listing of projects for long-range, mid-range, and short-range strategies that are expected to be developed within the financial constraint of forecasted state, federal, and local funding levels. The funding levels are estimated in cooperation with the department. The MTP will include a mid-range component of projects covering a period of ten years. The first four years of the MTP will be developed to comply with federally mandated transportation improvement program (TIP) and statewide transportation improvement program (STIP) requirements and to identify those projects that have a high probability of implementation during the four-year period.(d) Mid-range programming document. The unified transportation program (UTP) is a ten-year financially constrained program developed by the department that represents an intermediate timeframe in the statewide project development process. The UTP includes all of the projects, or phases of projects, covered in the four-year statewide transportation improvement program (STIP) plus those projects, or phases of projects, within the state that the department anticipates can proceed to letting within the six year period after the four-year STIP. A project's inclusion in the UTP also represents a commitment to its continued development.(e) Short-range programming documents.(1) A transportation improvement program (TIP) is a short-range program developed by each MPO in cooperation with the department and with public transportation operators as defined by 23 C.F.R. Part 450 that covers a four-year period and contains a prioritized listing of all projects proposed for federal funding and regionally significant projects proposed for state, federal, and local funding in a metropolitan area. Projects may include planning, engineering, design, right of way acquisition, construction, and maintenance. The TIP also contains an estimate of available state, federal, and local funding and the estimated project expenditures. A project's inclusion in the TIP and statewide transportation improvement program (STIP) generally represents a commitment that it is programmed for implementation in the near term.(2) A rural transportation improvement program (RTIP) is a short-range program developed by the department in cooperation with rural planning organizations (RPO) that covers a four-year period and contains a prioritized listing of all projects proposed for federal funding and regionally significant projects proposed for state, federal, and local funding in all areas of the state outside of metropolitan planning areas. Projects may include planning, engineering, design, right of way acquisition, construction, and maintenance. The RTIP also contains an estimate of available state, federal, and local funding and the estimated project expenditures. A project's inclusion in the RTIP and statewide transportation improvement program (STIP) generally represents a commitment that it is programmed for implementation in the near term.(3) A statewide transportation improvement program (STIP) is a four-year short-range program developed by the department as a compilation of all metropolitan transportation improvement programs (TIP), together with rural transportation improvement programs (RTIP), that include recommendations from RPOs and department districts for the areas of the state that are outside of the boundaries of an MPO, including transportation between cities. The STIP identifies a list of projects to be implemented statewide with funds that are reasonably expected to be available over a multi-year period. The first year of the STIP contains projects that are scheduled for letting of contracts by the project sponsor. The remaining three years identify projects and funding sources that also have a high probability of implementation.</content><note type="source"><p>Source Note: The provisions of this §16.4 adopted to be effective January 1, 2011, 35 TexReg 8388; amended to be effective November 15, 2012, 37 TexReg 8981; amended to be effective September 1, 2018, 43 TexReg 5240.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c16/scB"><num value="B">SUBCHAPTER B</num><heading>TRANSPORTATION PLANNING</heading><section identifier="/us/state/tx/tac/t43/p1/c16/scB/s16.51"><num value="16.51">§16.51</num><heading>Responsibilities of Metropolitan Planning Organizations (MPO)</heading><content>(a) General. Pursuant to 23 U.S.C. §134 and 49 U.S.C. §5303, as implemented by 23 C.F.R. Part 450, the metropolitan planning organization (MPO), in cooperation with the department and with public transportation operators as defined by 23 C.F.R. Part 450, shall be responsible for carrying out the metropolitan transportation planning process. The MPO, department, and public transportation operators shall cooperatively determine their mutual responsibilities in the conduct of the planning process, including corridor refinement (e.g., feasibility and major investment) studies. They shall cooperatively develop the unified planning work program (UPWP), metropolitan transportation plan (MTP) containing both a long-range and mid-range forecast of proposed projects and transportation improvement program (TIP) containing a list of projects that have been approved for development in the near-term. The MPO, department, and public transportation operators shall coordinate the development of the MTP and TIP with other providers of transportation, such as 14 C.F.R. Part 139 airport sponsors, maritime port operators, and rail operators. All transportation plans and programs developed by the MPO as part of the planning process must comply with federal requirements and provide for public involvement.(b) Membership of MPOs. According to 23 C.F.R. Part 450, each MPO that serves a transportation management area shall consist of local elected officials, officials of public agencies that administer or operate major modes of transportation in the metropolitan planning area, and appropriate state transportation officials.(c) Approval of boundaries. The governor or the commission, if the approval authority has been delegated to the commission, must approve the boundaries of a designated metropolitan planning area and any revision of those boundaries. Approval of the boundaries of a designated metropolitan planning area by the Federal Highway Administration (FHWA) or the Federal Transit Administration (FTA) is not required. The MPO must provide the governor and the department with appropriate documentation and the rationale supporting any recommended boundary change. The MPO must provide its approved metropolitan planning area boundary maps to the department for submission to the FHWA, FTA, and other applicable federal agencies.(d) Metropolitan planning area agreements.(1) Planning agreement. The responsibilities for cooperatively carrying out transportation planning (including corridor and subarea studies) and programming shall be clearly identified in a planning agreement between the department and the MPO.(2) MPO-public transportation operator planning agreement. There shall be a written agreement between the MPO, the department, and public transportation operators as defined by 23 C.F.R. Part 450 that specifies cooperative procedures for carrying out transportation planning (including corridor and subarea studies) and programming as required by this subchapter, as well as developing and sharing information related to transportation performance data, the selection of performance targets, the reporting of performance targets, the reporting of performance to be used in tracking progress toward attainment of critical outcomes for the region of the MPO, and the collection of data for state asset management plans for the national highway system.(3) Agreements in nonattainment MPOs. If the metropolitan planning area includes part but not all of a nonattainment or maintenance area, as defined by the federal Clean Air Act (CAA), there shall be a written agreement among the department, the Texas Commission on Environmental Quality (TCEQ), affected local agencies, and the MPO describing the process for cooperative planning and analysis of all projects outside the metropolitan planning area, but within the nonattainment or maintenance area. The agreement shall be in accordance with federal requirements.(4) Coordination of planning processes. If more than one MPO has authority within an urbanized area or a nonattainment or maintenance area, there shall be a written agreement between the department and the MPOs describing how the processes will be coordinated to assure the development of an overall transportation plan for that area. The TCEQ and any local air quality agencies must also be parties to an agreement that relates to a nonattainment or maintenance area.(e) Coordination with state implementation plan (SIP) development. In nonattainment or maintenance areas, the MPO shall coordinate the development of the transportation plan with the state implementation plan (SIP) development process, including the development of any transportation control measures (TCMs). The MPO shall develop or assist in developing the TCMs, which may include any measure used for the purpose of reducing emissions or concentrations of air pollutants from transportation sources by reducing vehicle use or changing traffic flow or congestion conditions. The MPO shall not approve any metropolitan transportation plan or transportation improvement program which does not conform with the SIP, as determined in accordance with Environmental Protection Agency (EPA) conformity regulations.(f) Metropolitan planning in areas with multiple MPOs. If more than one MPO has authority in a metropolitan planning area (including multistate metropolitan planning areas) or in an area which is designated as nonattainment or maintenance for transportation related pollutants, the MPOs, the governor, and the governor's counterpart in any other involved state shall cooperatively establish the boundaries of the metropolitan planning area (including the 20-year planning horizon and relationship to the nonattainment or maintenance areas) and the respective jurisdictional responsibilities of each MPO. The MPOs shall consult with each other and the states to assure the preparation of integrated plans and transportation improvement programs for the entire metropolitan planning area. While an individual MPO's metropolitan transportation plan and transportation improvement program may be developed separately, each plan and transportation improvement program must be consistent with the plans and transportation improvement programs of other MPOs in the metropolitan planning area. For the overall metropolitan planning area, the individual MPO planning process shall reflect coordinated data collection, analysis, and development. In those areas where this provision is applicable, coordination efforts shall be initiated and the process and outcomes documented in subsequent transmittals of the unified planning work program and various planning products (e.g., the metropolitan transportation plan and transportation improvement program) to the department for further transmittal to the FHWA, FTA, and other applicable federal agencies.(g) Evaluation of data. The MPOs and the department shall work collaboratively to evaluate the availability, consistency and quality of data needed for performance-based planning and project selection.</content><note type="source"><p>Source Note: The provisions of this §16.51 adopted to be effective January 1, 2011, 35 TexReg 8388; amended to be effective November 15, 2012, 37 TexReg 8981; amended to be effective September 1, 2018, 43 TexReg 5240.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c16/scB/s16.52"><num value="16.52">§16.52</num><heading>Unified Planning Work Program (UPWP)</heading><content>(a) Planning activities. Under 23 C.F.R. Part 450, an MPO is required to document planning activities in a unified planning work program (UPWP) to indicate who will perform the work, the schedule for completing it, and all products that will be produced. The department is responsible for assisting in the development of the UPWP, approving the format of work programs submitted by metropolitan planning organizations (MPOs), and, where required by federal law or regulation, monitoring an MPO's performance of activities and expenditure of funds under a UPWP. Where monitoring is not required, the department is responsible for reviewing an MPO's activities and expenditure of funds, and will comment on and make suggestions relating to those activities and expenditures.(1) Requirements. An MPO, in cooperation with the department and public transportation operators as defined by 23 C.F.R. Part 450, must annually or biennially develop a UPWP that meets federal requirements.(2) UPWP development. The department will develop a time line for development of the UPWP by the MPOs. Failure to adhere to the time line may result in a delay in the authorization to the MPOs to proceed in incurring costs.(3) UPWP format. The department, in consultation with the MPOs, shall develop a standard UPWP format to be used by all MPOs. UPWPs submitted in a different format will not be approved.(4) UPWP approval and revisions. The MPO policy board must approve the UPWP and any subsequent revisions, and shall not delegate the approval authority.(5) Annual performance and expenditure report. To allow the department to monitor work programs, the MPOs shall prepare and submit to the department an annual performance and expenditure report of progress no later than December 15 of each year. A uniform format for the annual report will be established by the department, in consultation with the MPOs.(b) Funding. Federal transportation planning funds are available to MPOs to develop the metropolitan transportation plans and transportation improvement programs required by this subchapter. Under 23 C.F.R. Part 420, the use of federal planning funds must be documented by the MPO in a work program acceptable to the FHWA setting out proposed work undertaken with federal planning funds and the estimated cost of this work. A work program acceptable to the FTA and other applicable federal agencies is required for planning activities involving public transportation plans and programs.(1) Requirements. The UPWP shall reflect transportation planning work tasks to be funded by federal, state, or local transportation, or transportation related (e.g. air quality) planning funds.(2) Planning work eligibility. The use of federal metropolitan transportation planning funds shall be limited to transportation planning activities affecting the transportation system within the boundaries of a designated metropolitan planning area. If an MPO determines that data collection and analysis activities relating to land use, demographics, or traffic or travel information, conducted outside its boundaries, affects the transportation system within its boundaries, then those activities may be undertaken using federal planning funds, if the activities are specifically identified in an approved UPWP. Any other costs incurred for transportation planning activities outside the boundaries of a designated metropolitan planning area are not eligible for reimbursement.(3) Authorization for travel outside the state. The department will approve proposed travel outside the State of Texas by MPO staff and other agencies participating in the MPO planning process if the travel is funded with federal transportation planning funds. The MPO must receive approval prior to incurring any costs associated with the actual travel (e.g., registration fee). This provision will not apply if the travel is at the request of the department. Travel to the State of Arkansas by the Texarkana MPO staff and travel to the State of New Mexico by the El Paso MPO staff shall be considered in-state travel.(4) Reimbursement of travel costs of elected officials. The cost of travel incurred by elected officials serving on an MPO policy board is eligible for reimbursement with federal transportation planning funds if the costs are:(A) specifically related to a federal award, including a grant, cost reimbursement contract, or other agreement between a state, local, or Indian tribal government and the federal government;(B) necessary and reasonable for the proper and efficient performance and administration of the federal award;(C) not prohibited under:(i) federal lobbying restrictions; or(ii) state or local laws or regulations; and(D) approved by the awarding federal agency prior to incurring any costs associated with the actual travel.(5) Funding limitations. The use of federal transportation planning funds is limited to corridor/subarea level planning or multimodal or systemwide transit planning studies, unless otherwise authorized by federal law or regulation.(6) Department approval of costs. The MPO shall not incur any costs for work outlined in the UPWP or any subsequent amendments (i.e., adding new work tasks or changing the scope of existing work tasks) prior to receiving approval from the department. Any costs incurred prior to receiving department approval are not eligible for reimbursement from federal transportation planning funds.(7) Expenditure limitations. Costs incurred by the MPO shall not exceed the total budgeted amount of the UPWP without prior approval of the MPO policy board and the department. Costs incurred on individual work tasks shall not exceed that task budget by 25 percent without prior approval of the MPO policy board and the department. If the costs exceed 25 percent of the task budget, the UPWP shall be revised, approved by the MPO policy board, and submitted to the department for approval.(8) Distribution of funds. The department will make available to MPOs all federal metropolitan planning funds and provide the required non-federal match as authorized by the commission. The department will distribute federal transportation planning funds to the MPOs based on a formula developed by the department, in consultation with the MPOs, and approved by FHWA, FTA, and other applicable federal agencies.</content><note type="source"><p>Source Note: The provisions of this §16.52 adopted to be effective January 1, 2011, 35 TexReg 8388; amended to be effective November 15, 2012, 37 TexReg 8981.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c16/scB/s16.53"><num value="16.53">§16.53</num><heading>Metropolitan Transportation Plan (MTP)</heading><content>(a) Requirements. Pursuant to 23 C.F.R. Part 450, each metropolitan planning organization (MPO) shall develop a metropolitan transportation plan (MTP) to address at least a 20-year planning horizon and include both long-range and short-range strategies or actions that lead to the development of an integrated intermodal transportation system that facilitates the efficient movement of people and freight. In addition, the MTP will include a mid-range component of projects covering a period of ten years. The MTP is cooperatively developed by the MPO, the department, and public transportation operators as defined by 23 C.F.R. Part 450. The MTP must be based on the funding assumptions and forecasts set forth in §16.151 and §16.152 of this chapter (relating to Long-Term Planning Assumptions and Cash Flow Forecast, respectively) as well as reasonably expected local funding options and contingent state, federal, and local funding sources in accordance with federal regulations. The funding assumptions used to develop the ten-year component of the MTP may be subject to review by the department.(b) Development. Development of a metropolitan transportation plan (MTP) and all updates and revisions shall be conducted in accordance with federal regulations. Each project in the MTP shall be assigned a unique project number.(c) Approval. Each metropolitan transportation plan must be approved by the applicable MPO. Prior to any approval, there must be adequate opportunity for public involvement in the development of the plan, in accordance with federal regulations.(d) Submission of new and revised plans. Copies of any new or revised MTPs must be submitted to the governor, or to the department if the governor delegates this authority to the commission, for information purposes. Copies must also be provided to the FHWA, FTA, and other applicable federal agencies.(e) MTP public participation. Each MPO will develop a public participation process covering the development of an MTP in accordance with federal regulations. The MPOs shall also use the same process in amending the MTP.</content><note type="source"><p>Source Note: The provisions of this §16.53 adopted to be effective January 1, 2011, 35 TexReg 8388; amended to be effective November 15, 2012, 37 TexReg 8981; amended to be effective September 1, 2018, 43 TexReg 5240.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c16/scB/s16.54"><num value="16.54">§16.54</num><heading>Statewide Long-Range Transportation Plan (SLRTP)</heading><content>(a) General. In compliance with Title 23 U.S.C. §135, as implemented by 23 C.F.R. Part 450 and Transportation Code, Chapter 201, Subchapter H, the department will develop a statewide long-range transportation plan (SLRTP) covering a minimum forecast period of 24 years that provides for the development and implementation of a transportation system and contains all modes of transportation, including: (1) the systems and facilities for highways and toll roads, aviation, public transportation, railroads and high-speed railroads, waterways, pedestrian walkways, and bicycle transportation facilities; and(2) the transportation users of each type of transportation facility.(b) Requirements. The plan must:(1) include the statewide transportation improvement program developed under §16.103 of this chapter (relating to Statewide Transportation Improvement Program (STIP)) by reference;(2) include the unified transportation program developed under §16.105 of this chapter (relating to Unified Transportation Program (UTP)) by reference;(3) contain specific and clearly defined transportation system strategies and long-term transportation goals for the state, including efforts to maintain a safe transportation system, address travel congestion, and connect Texas communities;(4) contain specific, measurable targets for each transportation goal and other related performance measures;(5) consider the projects and strategies adopted by each metropolitan planning organization and rural planning organization in the organization's long-range plans;(6) contain a long-range rural component for areas not included in the boundaries of an MPO that includes a priority-based listing of corridors for long-range strategies that lead to the development of an integrated intermodal transportation system;(7) identify priority corridors, projects, or areas of the state that are of particular concern to the department in meeting the goals established under paragraph (3) of this subsection; (8) contain, for each priority corridor or project listed, an estimate of project costs as approved by the district or districts in which the priority corridor or project is located; and(9) contain a participation plan for obtaining input on the goals, measurable targets, projects, and priorities under this section from other state agencies, political subdivisions, metropolitan planning organizations, rural planning organizations, local transportation entities, other officials who have local responsibility for the various modes of transportation, and members of the general public.(c) Financial considerations. The plan must include:(1) a component that is financially constrained based on the funding assumptions and forecasts set forth in §16.151 and §16.152 of this chapter (relating to Long-Term Planning Assumptions and Cash Flow Forecast, respectively) as well as local contributions that may be identified by an individual MPO, and identifies proposed projects and strategies; and(2) a component that is not financially constrained and identifies corridors, projects, strategies, and other needs in various areas of the state including transportation improvements designed to relieve congestion.(d) Integration of plans and policy efforts. In developing each of the department's transportation plans and policy efforts, the department will clearly reference the SLRTP and specify how the plan or policy effort supports or otherwise relates to the specific, long-term transportation goals described in subsection (b) of this section.(e) Updates. The department will update the plan every four years or more frequently as necessary. An amendment, update, or revision of the STIP or the UTP is an administrative modification to the plan and does not require an update to the SLRTP.(f) Public involvement during development of the SLRTP.(1) The department will seek to effectively engage the general public and stakeholders in development of the SLRTP.(2) The department will hold public meetings throughout the state that will cover each district during development of the SLRTP and each update of the plan. The public meetings will be held as early as the department determines is feasible to assure public input into the planning process. The department will publish notice of each public meeting as appropriate to maximize attendance at the meeting.(3) The department will report its progress on the plan to participants at the meeting and provide an opportunity for a free exchange of ideas, views, and concerns relating to proposed transportation goals, measurable targets, projects, and priorities. A representative from each district will attend each public meeting applicable to the district and be available for the discussion.(4) The department may conduct a public meeting by video-teleconference or other electronic means that provide for direct communication among the participants.(g) Public involvement prior to final adoption. The department will hold at least one statewide hearing prior to final adoption of the SLRTP by the commission and before final adoption of any update to the plan by the commission.(1) The department will publish a notice of a hearing in the Texas Register a minimum of 15 days prior to its being held and in the notice will inform the public where written comments may be sent.(2) The department will accept written public comments, including comments submitted in electronic format, for a period of at least 30 days after the date the notice appears in the Texas Register. (3) At the time the notice of hearing is published under paragraph (1) of this subsection and until the SLRTP or update is finally adopted, the department will make a copy of the SLRTP or an update to the plan available for review at each of the district offices and at the department's Transportation Planning and Programming Division offices in Austin. A copy will also be available on the department website.(h) Publication. The department will publish the adopted SLRTP, updates, and administrative modifications on the department's website. The SLRTP will also be available for review at each of the district offices and at the department's Transportation Planning and Programming Division offices in Austin.</content><note type="source"><p>Source Note: The provisions of this §16.54 adopted to be effective January 1, 2011, 35 TexReg 8388; amended to be effective November 15, 2012, 37 TexReg 8981; amended to be effective September 1, 2018, 43 TexReg 5240.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c16/scB/s16.56"><num value="16.56">§16.56</num><heading>Texas Highway Trunk System</heading><content>Routes to be included in and developed as a part of the Texas Highway Trunk System shall be chosen by the commission as recommended by the executive director based on one or more of the criteria set out in this section. To be included in the Texas Highway Trunk System the commission will give consideration to routes:(1) maximizing the use of existing four-lane divided roadways;(2) minimizing circuitous or indirect routing;(3) connecting with principal roadways from adjacent states;(4) connecting with principal deep water ports with channel depths of 40 feet or more;(5) connecting with principal Mexican ports of entry;(6) serving significant military or other national security installations;(7) serving tourism or recreational areas;(8) comprising major truck routes;(9) which are within 25 miles or less of cities of 10,000 population or greater;(10) closing gaps in the existing state highway system; and(11) providing system connectivity.</content><note type="source"><p>Source Note: The provisions of this §16.56 adopted to be effective January 1, 2011, 35 TexReg 8388.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c16/scB/s16.57"><num value="16.57">§16.57</num><heading>Responsibilities of the Department</heading><content>(a) The department will review the ten-year transportation plan component of each MPO's metropolitan transportation plan prior to policy board adoption of a new MTP or the revision of an existing MTP.(b) The department will provide appropriate direct access to each MPO for those information systems that facilitate the MPO's accomplishment of statewide transportation goals. This access will be granted for the sole purpose of managing projects and transportation programs.(c) On an annual basis, the department shall provide each MPO a listing of project evaluation data used for performance-based project planning and project selection. The department will provide access to this data for the sole purpose of assessing the quality and consistency of the data.</content><note type="source"><p>Source Note: The provisions of this §16.57 adopted to be effective September 1, 2018, 43 TexReg 5240.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c16/scC"><num value="C">SUBCHAPTER C</num><heading>TRANSPORTATION PROGRAMS</heading><section identifier="/us/state/tx/tac/t43/p1/c16/scC/s16.101"><num value="16.101">§16.101</num><heading>Transportation Improvement Program (TIP)</heading><content>(a) Requirements. Title 23 U.S.C. §134 and 23 C.F.R. Part 450, require the metropolitan transportation planning process to include the development of a transportation improvement program (TIP) for the metropolitan planning area, containing a list of projects that have been approved for development in the near term. The list must be prioritized by project within each funding category as described in §16.105(b) of this subchapter (relating to Unified Transportation Program (UTP)). The TIP shall be designed such that once implemented, it makes progress toward achieving the required federal performance targets. The TIP shall include, to the maximum extent practicable, a description of the anticipated effect of the TIP toward achieving those performance targets and a demonstration of the link between the investment priorities to those performance targets. An approved TIP is then included in the statewide transportation improvement program (STIP) which contains a listing of projects for all areas of the state that are likely to be implemented in that identified four-year period.(b) Development of transportation improvement program (TIP). The MPO designated for a metropolitan planning area, in cooperation with the department and public transportation operators as defined by 23 C.F.R. Part 450, shall develop a TIP and financial plan in accordance with federal requirements. The department will provide an MPO with estimates of available federal and state funds to be used in developing the financial plan in accordance with §16.152 of this chapter (relating to Cash Flow Forecast). The TIP shall cover the metropolitan planning area and shall be approved and amended in accordance with subsection (h) of this section. The TIP shall be updated and approved in accordance with federal regulations and, in the discretion of the department in consultation with the metropolitan planning organizations, may be updated more frequently than every four years.(c) Grouping of projects. Projects that are not considered by the department and the MPO to be of appropriate scale for individual identification in a given program year may be grouped by function, geographic area, or work type (e.g., minor rehabilitation, preventive maintenance). In nonattainment and maintenance areas, classification must be consistent with the exempt project classifications contained in the EPA conformity regulations.(d) Projects excluded. The following projects may be excluded from the TIP by agreement between the department and the MPO:(1) safety projects funded under 23 U.S.C. §402 (highway safety programs) and emergency relief projects, except those involving substantial functional, location, and capacity changes;(2) planning and research activities, except those activities funded with National Highway System or Surface Transportation Program funds other than those used for major investment studies; and(3) projects under 23 U.S.C. §104(b)(1), (b)(4), and §144 that are for resurfacing, restoration, rehabilitation, reconstruction, or highway safety improvement, and which will not alter the functional traffic capacity or capability of the facility being improved.(e) Consistency and conformity.(1) Relationship to the metropolitan transportation plan (MTP). A project in the TIP must be consistent with the MTP.(2) Relationship to the statewide long-range transportation plan (SLRTP). A project in the TIP must be consistent with the SLRTP developed under federal law and §16.54 of this chapter (relating to Statewide Long-Range Transportation Plan (SLRTP)).(3) Relationship to the Clean Air Act and State Implementation Plan. In nonattainment and maintenance areas, a project selected for the TIP must conform to the Clean Air Act (CAA) and the state implementation plan (SIP).(4) Conformity requirements. The MPO in each urbanized nonattainment and maintenance area will be responsible for preparation of the conformity determination requirements of the CAA and the Environmental Protection Agency (EPA) conformity regulations. The department will be responsible for preparation of the conformity determination requirements in nonattainment and maintenance areas outside of metropolitan planning areas.(f) Format. The department, in cooperation with the MPOs, will develop a uniform TIP format to produce a uniform statewide transportation improvement program (STIP). The department in consultation with the MPOs may make modifications to the format. The MPOs shall submit electronic copies of their TIPs to the department in this format.(g) Financial plan. A financial plan that demonstrates consistency with funding reasonably expected to be available during the relevant period shall be developed for TIPs by the MPO in cooperation with the department and public transportation operators. Fiscal constraint must be demonstrated and maintained by year.(h) Transportation improvement program (TIP) approval. The MPO and the governor shall approve the TIP and any amendments. If the governor delegates this authority to the commission, the commission, or if further delegated, the executive director, will approve transportation improvement programs if the executive director finds the TIP has met all federal requirements and the requirements of this subchapter, including satisfaction of the project selection criteria developed for the department's unified transportation program, as set forth in §16.105(d) of this subchapter.(i) Management. As a management tool for monitoring progress in implementation of the metropolitan transportation plan, the TIP shall identify the criteria and process for prioritizing implementation of transportation plan elements for inclusion in the TIP and any changes in priorities from previous TIPs in accordance with the factors specified in federal regulations and §16.105(d) of this subchapter.(j) Updating. The frequency and cycle for updating the TIP must be compatible with the statewide transportation improvement program (STIP) development process established by the department and described in §16.103 of this subchapter (relating to Statewide Transportation Improvement Program (STIP)).(k) Modification.(1) Amendments. The transportation improvement program (TIP) may be amended consistent with the procedures established in this section for its development and approval with the following stipulations.(A) An amendment to the TIP is required in attainment areas if there is a change:(i) adding or deleting a federally funded project in the TIP;(ii) in the scope of work of a federally funded project;(iii) in the phase of work (such as the addition of preliminary engineering, construction, or right of way) of a federally funded project;(iv) in the TIP year if the MPO's project selection procedure does not provide for selecting projects from the second, third, or fourth year; or(v) in funding sources or funding availability that forces the addition or deletion of federally funded projects.(B) An amendment to the TIP is required in nonattainment areas if there is a change:(i) adding or deleting a project in the TIP;(ii) in a project's design concept or scope of work;(iii) in the phase of work (such as the addition of preliminary engineering, construction, or right of way) of a project;(iv) in the TIP year if the MPO's project selection procedure does not provide for selecting projects from the second, third, or fourth year;(v) adding Congestion Mitigation and Air Quality funding to a previously approved project; or(vi) in funding from non-federal funding to any combination of federal funding or federal and state funding, or where the change in funding sources or funding availability forces the addition or deletion of federally funded projects or regionally significant state funded projects.(C) An amendment to the transportation improvement program (TIP) is not required if there is a change:(i) in funding sources, except as provided in this subsection;(ii) in the cost estimate of a project where, unless federal law or regulation specifies a different cost estimate percentage and condition relating to waiver of the amendment requirement for a particular type of project, such change is not greater than 50 percent of the approved federal cost estimate and the revised cost estimate is less than $1,500,000, and the change in the cost estimate is not caused by a change in the project work scope or limits;(iii) in the letting date or funding date of a project unless, in nonattainment areas, the change affects conformity;(iv) in the control section job (CSJ) number of a project unless the change also affects other characteristics of the project or funding that do require an amendment as provided in this subsection; or(v) that is administrative and does not require public review and comment, redemonstration of fiscal constraint, or a conformity determination.(2) Conformity requirements. In nonattainment and maintenance areas for transportation related pollutants, a conformity determination must be made on any new or amended TIPs (unless the amendment consists entirely of projects exempt under subsection (c) of this section) in accordance with CAA requirements and the EPA conformity regulations.(l) Transportation improvement program (TIP) relationship to statewide transportation improvement program (STIP). After approval, the TIP will be included without modification in the STIP except that in nonattainment and maintenance areas, the FHWA and the FTA must make a conformity determination before inclusion. The department will notify the MPO and appropriate federal agencies when a TIP has been included in the STIP.(m) TIP public participation. Each MPO will develop a public participation process covering the development of a TIP in accordance with federal regulations. The MPOs shall also use the same procedures in amending the TIP.(n) Project selection procedures. Under federal regulations, project selection from an approved transportation improvement program (TIP) varies depending on whether a project selected for implementation is located in a transportation management area and what type of federal funding is involved.(1) General. Project selection procedures must be developed for each metropolitan area and for state projects that lie outside of metropolitan planning areas. The MPOs shall coordinate project selection criteria relating to statewide transportation goals with the department for the purpose of achieving consistent, common goals, particularly with respect to mobility projects using a mix of several funding sources.(A) Project agreement. The first year of both the TIP and the statewide transportation improvement program (STIP) constitute an agreed to list of projects for project selection purposes. Project selection may be revised if the apportioned funds, including the highway obligation ceiling and transit appropriations, are significantly more or less than the authorized funds. In such cases, and if requested by the MPO, the department, or the transit operator, a revised agreed to list of projects for project selection purposes may be developed.(B) Eligibility. Only projects included in the federally approved STIP will be eligible for funding with Title 23 U.S. Code or Federal Transit Act (49 U.S.C. §5307 et seq.) funds.(2) Project selection in non-transportation management areas. In an area not designated as a transportation management area, the commission or the affected public transportation operator as defined by 23 C.F.R. Part 450, as applicable, in cooperation with the MPO, will select projects to be implemented using federal funds from the approved TIP. Federal lands highways program projects shall be selected in accordance with 23 U.S.C. §204.(3) Project selection in transportation management areas (TMAs). In an area designated as a TMA, an MPO, in consultation with the department and public transportation operators as defined by 23 C.F.R. Part 450, shall select from the approved TIP and in accordance with the priorities of the approved TIP, all Title 23 U.S. Code and Federal Transit Act (49 U.S.C. §5307 et seq.) funded projects, except projects on the National Highway System and projects funded under the bridge, interstate maintenance, safety, and federal lands highways programs. The commission, in cooperation with the MPO, will select projects on the National Highway System and projects funded under the bridge, interstate maintenance, and safety programs. Federal lands highways program projects shall be selected in accordance with 23 U.S.C. §204.</content><note type="source"><p>Source Note: The provisions of this §16.101 adopted to be effective January 1, 2011, 35 TexReg 8388; amended to be effective November 15, 2012, 37 TexReg 8981; amended to be effective September 1, 2018, 43 TexReg 5240; amended to be effective February 16, 2022, 47 TexReg 660.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c16/scC/s16.102"><num value="16.102">§16.102</num><heading>Rural Transportation Improvement Program (RTIP)</heading><content>(a) Development. As required by 23 U.S.C. §135 and 23 C.F.R. Part 450, the department will develop transportation improvement programs for all areas of the state outside of metropolitan planning areas, containing a prioritized list of projects approved for development in the near term. The rural transportation improvement program (RTIP) will be developed in cooperation with rural planning organizations (RPO) and projects will be selected in accordance with federal regulations and the requirements of this subchapter including §16.105 (relating to Unified Transportation Program (UTP)). An approved RTIP is then included in the statewide transportation improvement program (STIP) which contains a listing of projects for all areas of the state that are likely to be implemented in that identified four-year period.(b) Grouping of projects. Projects that are not considered by the department and the RPO to be of appropriate scale for individual identification in a given program year may be grouped by function, geographic area, or work type (e.g., minor rehabilitation, preventive maintenance). In nonattainment and maintenance areas, classification must be consistent with the exempt project classifications contained in the EPA conformity regulations.(c) Approval. The commission, or the executive director, if delegated to the executive director, will approve an RTIP if the executive director finds that the RTIP has met all federal requirements and the requirements of this subchapter.(d) Updating. The frequency and cycle for updating an RTIP must be compatible with the statewide transportation improvement program (STIP) development process described in §16.103 of this subchapter (relating to Statewide Transportation Improvement Program (STIP)).(e) Modification. The RTIP may be amended consistent with the requirements established in §16.101(k) of this subchapter (relating to Transportation Improvement Program (TIP)).(f) Relationship to the statewide long-range transportation plan (SLRTP). A project in the RTIP must be consistent with the SLRTP developed under federal law and §16.54 of this chapter (relating to Statewide Long-Range Transportation Plan (SLRTP)).(g) Relationship to the Clean Air Act (CAA) and State Implementation Plan (SIP). In nonattainment and maintenance areas, a project selected for the RTIP must conform to the CAA and the SIP.(h) Relationship to statewide transportation improvement program (STIP). After approval, RTIPs will be included in the STIP, except that a federal determination of conformity must be made for nonattainment and maintenance areas that are outside of metropolitan planning areas before projects in that area may be included in the STIP.(i) Rural public involvement process.(1) Initial adoption. Each district will coordinate with the applicable rural planning organization (RPO), if any, to develop and implement a public involvement process covering the development of an RTIP. The district will publish notice concerning the proposed RTIP as appropriate to maximize public participation. The notice will:(A) inform the public of the availability of the proposed RTIP;(B) inform the public that a public meeting will be held to receive comments on the initial adoption of the proposed RTIP, that there will be a public comment period after the date of the meeting, and the length of the comment period, which must be at least ten days;(C) request that public comments concerning the proposed RTIP be submitted in writing to the district; and(D) be published at least ten days before the date of the meeting.(2) Revisions involving mobility projects and individually-listed federally funded projects. Each district will publish notice concerning proposed revisions to the RTIP involving mobility projects and individually-listed federally funded projects as appropriate to maximize public participation. The notice will reference the proposed revisions to the RTIP instead of the proposed adoption of the RTIP, but will otherwise conform to the notice requirements of paragraph (1) of this subsection.(j) Project selection. The department will develop and annually reevaluate project selection procedures for state projects that lie outside of metropolitan planning areas in accordance with §16.103(g) of this subchapter.</content><note type="source"><p>Source Note: The provisions of this §16.102 adopted to be effective January 1, 2011, 35 TexReg 8388; amended to be effective November 15, 2012, 37 TexReg 8981; amended to be effective September 1, 2018, 43 TexReg 5240.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c16/scC/s16.103"><num value="16.103">§16.103</num><heading>Statewide Transportation Improvement Program (STIP)</heading><content>(a) Purpose. Title 23 U.S.C. §135, as implemented by 23 C.F.R. Part 450, requires each state to carry out a continuing, comprehensive, and intermodal statewide transportation planning process that facilitates the efficient, economic movement of people and freight in all areas of the state, including those areas subject to federal metropolitan planning requirements.(b) Statewide transportation improvement program (STIP) development. The department, in cooperation with the MPOs designated for metropolitan areas and RPOs designated for areas that are not within the boundaries of an MPO, will develop a STIP covering a period of four years for all areas of the state in accordance with federal requirements. The STIP includes all of the transportation improvement programs (TIP) and rural transportation improvement programs (RTIP) approved in accordance with requirements established in §16.101 and §16.102 of this subchapter (relating to Transportation Improvement Program (TIP) and Rural Transportation Improvement Program (RTIP), respectively). The STIP shall include, to the maximum extent practicable, a description of the anticipated effect of the STIP toward achieving the federal performance targets and a demonstration of the link between the investment priorities to those performance targets.(1) Projects included.(A) A highway or transit project funded under Title 23 U.S. Code or the Federal Transit Act (49 U.S.C. §5307 et seq.) will be included in a federally approved STIP. A project in the STIP will be consistent with the statewide long-range transportation plan, metropolitan transportation plan, and transportation improvement program, and the STIP will reflect expected funding and priorities for programming. (B) Projects that are not considered by the department and MPO to be of appropriate scale for individual identification in a given program year (e.g., minor rehabilitation, preventive maintenance, non-urbanized transit projects) may be grouped by function, geographic area, or work type.(C) In a nonattainment area, only those projects determined to conform to the requirements of the Clean Air Act and which comply with the state implementation plan may be included in the STIP.(D) Regionally significant projects to be funded with non-federal funds will be included in the STIP for planning, coordination, and public disclosure purposes.(E) Projects may be excluded from the STIP by agreement between the department and the MPO in accordance with requirements established in §16.101(d) of this subchapter.(2) Statewide transportation improvement program (STIP) funding. The federal funding level for each year of the STIP is the annual authorization as outlined in 23 U.S.C. §101 et seq. and funds appropriated under 49 U.S.C. §5307 et seq., in addition to the appropriate state and local match.(c) Statewide transportation improvement program (STIP) financial plan. The STIP will reflect the priorities for programming and expenditure of funds and will:(1) include a financial plan that demonstrates how the transportation improvements can be funded and reasonably implemented; (2) be consistent with funding reasonably expected to be available during the relevant period as provided under the unified transportation program in §16.105 of this subchapter (relating to Unified Transportation Program (UTP)); and(3) be financially constrained by year.(d) Statewide transportation improvement program (STIP) public involvement process. The governor is responsible for providing for public involvement in the STIP development process. If the governor delegates this responsibility to the commission, the commission, or if further delegated, the executive director, will provide for public involvement in accordance with this subsection.(1) Initial adoption of the STIP. The department will hold at least one statewide public hearing regarding the adoption of the proposed STIP.(A) The department will publish a notice of the hearing in the Texas Register a minimum of 15 days prior to it being held and will inform the public where to send any written comments.(B) The department will accept written public comments, including comments submitted in electronic format, for a period of at least 30 days after the date the notice appears in the Texas Register. (C) A copy of the proposed STIP will be available for review, at the time the notice of hearing is published, at each of the district offices, at the department's Transportation Planning and Programming Division offices in Austin, and on the department website.(D) A STIP must be approved in accordance with subsection (e) of this section.(E) The approved STIP will be made available at each of the district offices, at the department's Transportation Planning and Programming Division offices in Austin, and on the department website.(2) STIP amendments.(A) General. The governor will approve amendments to the STIP. If the governor delegates this authority to the commission, the commission, or if further delegated, the executive director, will approve amendments according to a published schedule developed in accordance with subsection (f) of this section, which the department will make available at the district offices, to the MPOs, and on the department website on an annual basis.(B) Amendments to the STIP. The STIP may be amended consistent with the requirements established in §16.101(k) of this subchapter. The public involvement process for amendments to the STIP will be the same as for initial adoption of the STIP.(e) Statewide transportation improvement program (STIP) approval.(1) The governor will approve the STIP. The governor, or if the governor delegates this authority to the commission, the commission, or if further delegated, the executive director, must approve the STIP if it finds the STIP has met all the requirements of this section and that it satisfies the project selection criteria developed for the department's unified transportation program, as set forth in §16.105(d) of this subchapter.(2) The governor, or if the governor delegates this authority to the commission, the commission, or if further delegated, the executive director, may approve a partial STIP if difficulties are encountered in cooperatively developing the TIP portion for a particular metropolitan or rural area.(f) Statewide transportation improvement program (STIP) revisions.(1) Schedule of revisions. The department and the MPOs are required to adhere to a quarterly STIP revision cycle, except as provided in paragraph (2) of this subsection. Project information and MPO approval documentation for the quarterly revisions must be received by the department's Transportation Planning and Programming Division by the close of business on the submittal date established by the department.(2) Exceptions.(A) Request. An MPO or the department may submit a written request for an exception to the quarterly revision schedule. The request must include reasons justifying the need for the exception.(B) Approval of request. The executive director may approve an exception to this requirement if:(i) additional funding becomes available; or(ii) the revision involves a project which is expected to have a significant effect on capacity, connectivity, or public safety and security on transportation systems.(g) Project selection procedures. Under 23 C.F.R. §450.220, project selection from an approved STIP depends on whether a project selected for implementation is located in or outside of a metropolitan planning area and on the type of federal funding involved. The purpose of this subsection is to prescribe project selection procedures and specify which entity may select a project for implementation.(1) General. Project selection procedures must be developed for each metropolitan area and for state projects that lie outside of metropolitan planning areas. The department will develop and reevaluate annual project selection procedures for state projects that lie outside of metropolitan planning areas.(A) Project agreement. The first year of both the TIP and the STIP constitute an agreed to list of projects for project selection purposes. Project selection may be revised if the apportioned funds, including the highway obligation ceiling and public transportation appropriations, are significantly more or less than the authorized funds. In such cases, if requested by the MPO, the department, or the public transportation operator, a revised agreed-to list of projects for project selection purposes may be developed.(B) Eligibility. Except as provided in 23 C.F.R. §450.220, only those projects included in the federally approved STIP will be eligible for funding with Title 23 U.S. Code or Federal Transit Act (49 U.S.C. §5307 et seq.) funds.(2) Project selection in metropolitan planning areas. In metropolitan planning areas, transportation projects shall be selected in accordance with the project selection procedures established in §16.101(n) of this subchapter.(3) Project selection outside metropolitan planning areas. Outside metropolitan planning areas, transportation projects undertaken on the National Highway System with Title 23 funds and under the bridge and interstate maintenance programs shall be selected by the department in consultation with affected local officials. Federal lands highways projects shall be selected in accordance with 23 U.S.C. §204. Other transportation projects undertaken with funds administered by the FHWA shall be selected by the department in cooperation with the affected local officials, and projects undertaken with Federal Transit Act funds shall be selected by the department in cooperation with the affected local officials and public transportation operators.</content><note type="source"><p>Source Note: The provisions of this §16.103 adopted to be effective January 1, 2011, 35 TexReg 8388; amended to be effective November 15, 2012, 37 TexReg 8981; amended to be effective September 1, 2018, 43 TexReg 5240.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c16/scC/s16.104"><num value="16.104">§16.104</num><heading>Ten-Year Transportation Programming Recommendations for Non-Metropolitan Areas</heading><content>A rural planning organization (RPO) shall make recommendations to the department concerning the prioritization of projects and programs in the department's unified transportation program under §16.105 of this subchapter (relating to Unified Transportation Program (UTP)) to be developed within the boundaries of the RPO. For an area that is outside of the boundaries of an MPO and an RPO, the programming recommendations will be made by the department. All recommendations shall be delivered to the department at the times and in the manner and format established by the department and must include a prioritized list of projects with input from officials of affected municipalities, counties, and local transportation entities.</content><note type="source"><p>Source Note: The provisions of this §16.104 adopted to be effective January 1, 2011, 35 TexReg 8388; amended to be effective November 15, 2012, 37 TexReg 8981.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c16/scC/s16.105"><num value="16.105">§16.105</num><heading>Unified Transportation Program (UTP)</heading><content>(a) General. The department will develop a unified transportation program (UTP) that covers a period of ten years to guide the development and authorize construction and maintenance of transportation projects and projects involving aviation, public transportation, and the state's waterways and coastal waters. In developing the UTP, the department will collaborate with local transportation entities and public transportation operators as defined by 23 C.F.R. Part 450.(b) Requirements. The UTP will:(1) be financially constrained for planning and development purposes based on the planning cash flow forecast prepared and published in accordance with §16.152(a) of this subchapter (relating to Cash Flow Forecasts);(2) list estimated funding levels and the allocation of funds to each district, metropolitan planning organization (MPO), and other authorized entity for each year in accordance with Subchapter D of this chapter (relating to Transportation Funding);(3) list all projects and programs that the department intends to develop, or on which the department intends to initiate construction or maintenance, during the UTP period, and the applicable funding category to which a project or program is assigned, after consideration of the:(A) statewide long-range transportation plan (SLRTP);(B) metropolitan transportation plans (MTP);(C) transportation improvement programs (TIP);(D) MPO annual reevaluations of project selection in MTPs and TIPs, if any, in accordance with subsection (c) of this section; (E) statewide transportation improvement program (STIP);(F) recommendations of rural planning organizations (RPO) as provided in this subchapter; and(G) list of major transportation projects in accordance with §16.106 of this subchapter (relating to Major Transportation Projects); and(4) designate the priority ranking within a program funding category of each listed project in accordance with subsection (d)(2) of this section.(c) MPO annual reevaluation of project selection. An MPO may annually reevaluate the status of project priorities and selection in its approved metropolitan transportation plan (MTP) and transportation improvement program (TIP) and provide a report of any changes to the department at the times and in the manner and format established by the department. The reevaluation must be consistent with criteria applicable to development of the MTP and TIP in accordance with federal requirements.(d) Project selection.(1) The commission will consider the following criteria for project selection in the UTP as applicable to the program funding categories described in §16.153 of this chapter (relating to Funding Categories):(A) the potential of the project to meet transportation goals for the state, including efforts to:(i) maintain a safe transportation system for all transportation users;(ii) optimize system performance by mitigating congestion, enhancing connectivity and mobility, improving the reliability of the system, facilitating the movement of freight and international trade, and fostering economic competitiveness through infrastructure investments;(iii) maintain and preserve system infrastructure; and(iv) accomplish any additional transportation goals for the state identified in the statewide long-range transportation plans as provided in §16.54 of this chapter (relating to Statewide Long-Range Transportation Plan (SLRTP));(B) the potential of the project to assist the department in attainment of transportation system strategies, the measurable targets for the transportation goals identified in subparagraph (A) of this paragraph, and other related performance measures; and(C) adherence to all accepted department design standards as well as applicable state and federal law and regulations.(2) The commission may also consider the potential for project delivery based on other factors such as funding availability and project readiness, after consideration of the criteria described in paragraph (1) of this subsection.(3) With respect to Category 12 Strategic Priority, the commission may also consider if the district and MPO will commit funding from other categories to the project or as a condition for project selection, may require the district and MPO to commit funds from other categories to the project.(4) The department will coordinate project selection criteria relating to the transportation goals identified in paragraph(1)(A) of this subsection with the MPOs for the purpose of achieving consistent, common goals, particularly with respect to mobility projects using a mix of several funding sources.(5) The department will consider performance metrics and measures to evaluate and rank the priority of each project listed in the UTP based on the transportation needs for the state and the goals identified in paragraph (1)(A) of this subsection. A project will be ranked within its applicable program funding category, using a performance-based scoring system, and classified as tier one, tier two, or tier three for ranking purposes. The scoring system will be used for prioritizing projects for which financial assistance is sought from the commission and must account for the diverse needs of the state so as to fairly allocate funding to all regions of the state. Major transportation projects will have a tier one classification and be designated as the highest priority projects within an applicable funding category. A project that is designated for development or construction in accordance with the mandates of state or federal law or specific requirements contained in other chapters of this title may be prioritized in a funding category as a designated project in lieu of a tier one, tier two, or tier three ranking.(6) The commission will determine and approve the final selection of projects and programs to be included in the UTP, except for the selection of federally funded projects by an MPO serving in an area designated as a transportation management area (TMA) as provided in §16.101(n) of this subchapter (relating to Transportation Improvement Program (TIP)). A federally funded project selected by an MPO designated as a TMA will be approved by the commission, subject to:(A) satisfaction of the project selection criteria in paragraph (1) of this subsection;(B) compliance with federal law; and(C) the district's and MPO's allocation of funds for the applicable years.(e) Approval of unified transportation program (UTP). Not later than August 31 of each year, the commission will adopt the unified transportation program for the next fiscal year. The commission may update the UTP at any time. A change in the UTP to project funding allocations in Category 12 Strategic Priority as described in §16.153(a) of this subchapter (relating to Funding Categories) or a major change to one or more funding allocations or project listings in the most recent UTP must be adopted by the commission. For the purpose of updating the UTP, the term "major change" refers to the authorization of new projects or the revision of project funding allocations which exceed 10 percent of the project cost or $500,000, whichever is greater, occurring in non-allocation program categories, excluding revisions to local funding contributions and projects designated under miscellaneous state and federal programs. The redistribution of a carryover under §16.154(i) of this subchapter (relating to Transportation Allocation Funding Formulas) does not constitute a major change, regardless of the amount of the redistribution. (f) Administrative revisions. The UTP may be administratively revised at any time if the revision does not constitute a major change as described in subsection (e) of this section, does not change project funding allocations in Category 12 Strategic Priority as described in subsection (e), or does not affect the total amount of funding allocated to a district for specific corridors in Category 4 Statewide Connectivity Corridor Projects as described in §16.153(a) of this subchapter (relating to Funding Categories).(g) Public involvement for the unified transportation program.(1) The department will seek to effectively engage the general public and stakeholders in development of the UTP and any updates to the program.(2) The department will hold at least one statewide public meeting to present the draft UTP as early as the department determines is feasible to assure public input into the program prior to its final adoption. The department will also hold at least one statewide public meeting to present each proposed update to the program. The department will publish notice of each public meeting as appropriate and use communications strategies to maximize attendance at the meeting. The department may conduct a public meeting by video-teleconference or other electronic means that provide for direct communication among the participants.(3) The department will report its progress on the program and provide an opportunity for a free exchange of ideas, views, and concerns relating to project selection, funding categories, level of funding in each category, the allocation of funds for each year of the program, and the relative importance of the various selection criteria.(4) The department will hold at least one statewide hearing on its project selection process including the UTP's funding categories, the level of funding in each category, the allocation of funds for each year of the program, and the relative importance of the various selection criteria prior to:(A) final adoption of the UTP and any updates; and (B) approval of any adjustments to the program resulting from changes to the allocation of funds under §16.160 of this chapter (relating to Funding Allocation Adjustments).(5) The department will publish a notice of the applicable hearing in the Texas Register a minimum of 15 days prior to its being held and will inform the public where to send any written comments. The department will accept written public comments for a period of at least 30 days after the date the notice appears in the Texas Register. The department may also accept public comments by other means, as specified in the notice. A copy of the proposed project selection process, the UTP, and any adjustments to the program, as applicable, will be available for review at the time the notice of hearing is published on the department website and, on request, will be available at district offices and at the department's Transportation Planning and Programming office in Austin.(6) The department will present information regarding the development of the UTP and any updates to the commission not later than the month prior to final adoption of the UTP and any updates.(h) Publication. The department will publish the entire approved unified transportation program, updates, adjustments, and administrative revisions together with any summary documents highlighting project benchmarks, priorities, and forecasts on the department's website. The documents will also be available for review, on request, at district offices and at the department's Transportation Planning and Programming Division office in Austin.</content><note type="source"><p>Source Note: The provisions of this §16.105 adopted to be effective January 1, 2011, 35 TexReg 8388; amended to be effective November 15, 2012, 37 TexReg 8981; amended to be effective January 4, 2017, 41 TexReg 10670; amended to be effective September 1, 2018, 43 TexReg 5240; amended to be effective February 16, 2022, 47 TexReg 660; amended to be effective February 6, 2024, 49 TexReg 563.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c16/scC/s16.106"><num value="16.106">§16.106</num><heading>Major Transportation Projects</heading><content>(a) Criteria. For the purposes of this chapter, a major transportation project is the planning, engineering, right of way acquisition, expansion, improvement, addition, or contract maintenance, other than the routine or contracted routine maintenance, of a bridge, highway, toll road, or toll road system on the state highway system that fulfills or satisfies a particular need, concern, or strategy of the department in meeting the transportation goals established under §16.105 of this subchapter (relating to Unified Transportation Program (UTP)). A project may be designated by the department as a major transportation project if it meets the criteria specified in 23 U.S.C. 106(h).(b) List of projects. The list of major transportation projects, if any new major transportation projects are designated by the department, will be annually updated and incorporated into the unified transportation program in accordance with §16.105 of this subchapter.(c) Benchmarks. The progress of a major transportation project will be tracked and evaluated in accordance with §16.202 of this chapter (relating to Reporting System for Delivery of Individual Projects) based on benchmarks for planning, implementation, and construction of the project and timelines developed for that project. The benchmarks will include the:(1) environmental clearance issued by the applicable federal or state authority;(2) acquisition or possession of right of way parcels sufficient to proceed to construction in accordance with planned construction phasing;(3) adjustment of utility facilities or coordination of adjustment sufficient to proceed to construction in accordance with planned construction phasing;(4) 100 percent completion of plans, specifications, and estimates or to the level of completion sufficient to proceed with the award of a design-build contract in accordance with §9.153 of this title (relating to Solicitation of Proposals);(5) award of construction contract by the commission; and(6) completion of construction.(d) Critical benchmarks.(1) The first year of the unified transportation program is designated as the implementation phase of the UTP and a major transportation project may be listed in this phase only if the project:(A) is listed in the statewide long-range transportation plan and the applicable metropolitan transportation plan; and(B) has environmental clearance issued by the applicable federal or state authority.(2) The executive director may approve an exception to the requirements contained in paragraph (1) of this subsection if:(A) the project satisfies a time sensitive critical need of the department related to safety, system connectivity, a hurricane evacuation route, reconstruction of a large infrastructure facility, or other similar need; and(B) there is a reasonable likelihood that environmental clearance for the project will be issued and the other required development benchmarks will be timely accomplished to permit an award of a construction contract within the one year implementation phase of the UTP.</content><note type="source"><p>Source Note: The provisions of this §16.106 adopted to be effective November 15, 2012, 37 TexReg 8981; amended to be effective February 16, 2022, 47 TexReg 660.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c16/scD"><num value="D">SUBCHAPTER D</num><heading>TRANSPORTATION FUNDING</heading><section identifier="/us/state/tx/tac/t43/p1/c16/scD/s16.151"><num value="16.151">§16.151</num><heading>Long-Term Planning Assumptions</heading><content>(a) Development. The department, in collaboration with local transportation entities, will develop mutually acceptable assumptions for the purposes of long-range federal and state funding forecasts that are consistent with the project selection criteria prescribed under §16.105(d) of this chapter (relating to Unified Transportation Program (UTP)). The department and each planning organization will use those funding assumptions to coordinate and guide development of the metropolitan transportation plans, statewide long-range transportation plan, transportation improvement programs, rural transportation improvement programs, statewide transportation improvement program, and unified transportation program under §§16.53 - 16.54, 16.101 - 16.103, and 16.105 of this chapter (relating to Metropolitan Transportation Plan (MTP), Statewide Long-Range Transportation Plan (SLRTP), Transportation Improvement Program (TIP), Rural Transportation Improvement Program (RTIP), and Statewide Transportation Improvement Program (STIP), respectively).(b) Factors. The assumptions will include the following factors:(1) anticipated level of available state gas tax revenues to be deposited to the credit of the state highway fund;(2) anticipated level of registration fees and other state non-gas tax revenues to be deposited to the credit of the state highway fund;(3) anticipated level of federal transportation funding; and(4) other factors considered appropriate by the commission for projection of available funding.(c) Optional factors. In addition to the funding forecasts developed under subsection (b) of this section, an MPO may, in order to guide development of a separate supplement to the MPO's metropolitan transportation plan and its portion of the statewide long-range transportation plan, also include reasonable funding assumptions based on local funding options and contingent state, federal, and local funding sources.(1) The supplement must:(A) clearly identify and separate the funding forecasts developed by the department under subsection (b) of this section from the forecasts using assumptions based on local funding options and contingent funding sources;(B) describe the rationale for incorporating each additional funding option and source; and(C) be approved by the MPO policy board.(2) The MPO will collaborate with the department in development of the additional funding assumptions.</content><note type="source"><p>Source Note: The provisions of this §16.151 adopted to be effective January 1, 2011, 35 TexReg 8388; amended to be effective November 15, 2012, 37 TexReg 8981; amended to be effective September 1, 2018, 43 TexReg 5240.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c16/scD/s16.152"><num value="16.152">§16.152</num><heading>Cash Flow Forecasts</heading><content>(a) Planning cash flow forecast. On or before September 1 of each year, the department's chief financial officer will issue a planning cash flow forecast for each source of funding that covers a period of not less than the 20 years following the date the forecast is issued and is based on the funding assumptions developed under §16.151 of this subchapter (relating to Long-Term Planning Assumptions).(b) Base cash flow forecast. On or before September 1 of each year, the department's chief financial officer will issue a base cash flow forecast for each source of funding to guide the development of the letting schedule that covers a period of not less than two years following the date the forecast is issued.(c) Requirements. Each forecast must identify:(1) all state and federal sources of funding available for transportation projects and projects involving aviation, public transportation, rail, and the state's waterways and coastal waters, including bond proceeds; and(2) any limitations imposed by state or federal law on the use of the identified source.(d) First two years. The first year or two years of each forecast, as appropriate, must be based on the amounts appropriated by the legislature to the department for that period.(e) Updates. The department's chief financial officer will update each forecast more frequently than annually if significant changes in the department's funding occur.(f) Publication. Each forecast and update will be available on the department's website for viewing by the public and the documents will be available for review at each of the district offices and at the department's Financial Management Division offices in Austin.(g) Uses of planning cash flow forecast. The commission will use the planning cash flow forecast to estimate funding levels for each year of the unified transportation program as provided in §16.105 of this chapter (relating to Unified Transportation Program (UTP)), to determine the annual amount of funding in each of the program funding categories described in §16.153 of this subchapter (relating to Funding Categories), and to allocate funding to the districts, metropolitan planning organizations, and other authorized entities in accordance with §16.154 of this subchapter (relating to Transportation Allocation Funding Formulas).(h) Funding definition. In this subchapter, unless the context clearly indicates otherwise, "funds" or "funding" means the estimates of federal, state, and local money reasonably expected to be available for expenditure on transportation projects and projects involving aviation, public transportation, rail, and the state's waterways and coastal waters during the relevant period.</content><note type="source"><p>Source Note: The provisions of this §16.152 adopted to be effective January 1, 2011, 35 TexReg 8388; amended to be effective November 15, 2012, 37 TexReg 8981; amended to be effective January 1, 2017, 41 TexReg 10670.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c16/scD/s16.153"><num value="16.153">§16.153</num><heading>Funding Categories</heading><content>(a) Highway program funding categories. The ten-year unified transportation program (UTP) described in §16.105 of this chapter (relating to Unified Transportation Program (UTP)) will contain the following 12 program funding categories for highway related projects:(1) Category 1 Preventive Maintenance and Rehabilitation - preventive maintenance and rehabilitation on the existing state highway system, including:(A) Preventive maintenance - minor roadway modifications to improve operations and safety; and(B) Rehabilitation - installation, rehabilitation, replacement, and maintenance of pavement, bridges, traffic control devices, traffic management systems, and ancillary traffic devices;(2) Category 2 Metropolitan and Urban Corridor Projects - mobility and added capacity projects along a corridor that improve transportation facilities in order to decrease travel time and the level or duration of traffic congestion, and safety, maintenance, or rehabilitation projects that increase the safe and efficient movement of people and freight in metropolitan and urbanized areas;(3) Category 3 Non-Traditionally Funded Transportation Projects - transportation related projects that qualify for funding from sources not traditionally part of the state highway fund including state bond financing under programs such as Proposition 12 (General Obligation Bonds), Texas Mobility Fund, pass-through toll financing, unique federal funding, regional toll revenue, and local participation funding;(4) Category 4 Statewide Connectivity Corridor Projects - mobility and added capacity projects on major state highway system corridors which provide statewide connectivity between urban areas and corridors, to create a highway connectivity network composed of the Texas Highway Trunk System, National Highway System, and connections from those two systems to major ports of entry on international borders and Texas water ports;(5) Category 5 Congestion Mitigation and Air Quality Improvement - congestion mitigation and air quality improvement area projects to address attainment of a national ambient air quality standard in the nonattainment areas of the state;(6) Category 6 Structures Replacement and Rehabilitation - replacement and rehabilitation of deficient existing bridges located on the public highways, roads, and streets in the state, construction of grade separations at existing highway-railroad grade crossings, and rehabilitation of deficient railroad underpasses on the state highway system;(7) Category 7 Metropolitan Mobility and Rehabilitation (TMA) - transportation needs within the boundaries of designated metropolitan planning areas of metropolitan planning organizations located in a transportation management area;(8) Category 8 Safety - safety related projects both on and off the state highway system including the federal Highway Safety Improvement Program, Railway-Highway Crossing Program, Safety Bond Program, and High Risk Rural Roads Program;(9) Category 9 Transportation Alternatives - transportation related activities as described in Chapter 11, Subchapter G, of this title (relating to the Transportation Alternatives Set-Aside Program);(10) Category 10 Supplemental Transportation Projects - transportation related projects that do not qualify for funding in other categories, including landscape and aesthetic improvement, erosion control and environmental mitigation, construction and rehabilitation of roadways within or adjacent to state parks, fish hatcheries, and similar facilities, replacement of railroad crossing surfaces, maintenance of railroad signals, construction or replacement of curb ramps for accessibility to pedestrians with disabilities, and miscellaneous federal programs;(11) Category 11 District Discretionary - projects eligible for federal or state funding selected at the district engineer's discretion; and(12) Category 12 Strategic Priority - projects with specific importance to the state including those that generally promote economic opportunity, increase efficiency on military deployment routes or to retain military assets in response to the federal military base realignment and closure reports, and maintain the ability to respond to both man-made and natural emergencies.(b) Program funding categories for other modes of transportation and transportation infrastructure. The UTP will contain the following program funding categories for aviation, public transportation, rail, and the state's waterways and coastal waters projects:(1) Aviation Capital Improvement Program - projects based on the anticipated funding levels of the Federal Aviation Administration Airport Improvement Program and the Texas Aviation Facilities Development Program for general aviation airport development in Texas;(2) Public transportation - projects based on the anticipated funding levels for public transportation including fixed route city bus service, rural demand response service, special transit service for elderly and persons with disabilities, and intercity bus service from city to city;(3) Rail - rail related projects including light rail, freight rail, passenger rail, and high-speed rail; and(4) State waterways and coastal waters - water related projects including lands, easements, and rights of way for the widening, deepening, and expansion of the main channel of the Gulf Intracoastal Waterway (GIWW), including beneficial use projects of dredged material, and other maritime related projects.(c) Determination of funding allocations. The commission will use a performance-based process to determine, subject to the mandates of state and federal law, the amount of funds to be allocated to each program funding category described in subsection (a) of this section for the appropriate period of time, in order to achieve established performance outcomes. The commission will determine, subject to the mandates of state and federal law and specific requirements contained in other chapters of this title, the amount of funds to be allocated to each program funding category described in subsection (b) of this section for the appropriate period of time.</content><note type="source"><p>Source Note: The provisions of this §16.153 adopted to be effective January 1, 2011, 35 TexReg 8388; amended to be effective November 15, 2012, 37 TexReg 8981; amended to be effective October 12, 2014, 39 TexReg 7945; amended to be effective March 18, 2015, 40 TexReg 1524; amended to be effective January 1, 2017, 41 TexReg 10670.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c16/scD/s16.154"><num value="16.154">§16.154</num><heading>Transportation Allocation Funding Formulas</heading><content>(a) Formula allocations. The commission will, subject to the mandates of state and federal law, allocate funds from program funding Categories 1, 2, 4, 5, 7, 9, and 11, as described in §16.153 of this subchapter (relating to Funding Categories), to the districts and metropolitan planning organizations (MPO) as follows:(1) Category 1 Preventive Maintenance and Rehabilitation - will be allocated to all districts as an allocation program according to the following formulas:(A) Preventive maintenance.(i) Ninety-eight percent for roadway maintenance with 65 percent based on on-system lane miles, and 33 percent based on the pavement distress score Pace factor; and(ii) Two percent for bridge maintenance based on square footage of on-system span bridge deck area;(B) Rehabilitation. Thirty-two- and one-half percent based on three-year average lane miles of pavement distress scores less than 70, 20 percent based on on-system vehicle miles traveled per lane mile, 32.5 percent based on equivalent single axle load miles on-system, and 15 percent based on the pavement distress score Pace factor;(2) Category 2 Metropolitan and Urban Corridor Projects - It is the commission's intent that Category 2 funds be used efficiently on priority projects as determined by the MPOs. Category 2 funds will be allocated to districts and MPOs for specific projects within the MPOs' boundaries in the following manner:(A) 87 percent to MPOs operating in areas that are transportation management areas, according to the following formula: 30 percent based on total vehicle miles traveled on and off the state highway system, 17 percent based on estimated population within the boundaries of the metropolitan planning area using data derived from the most recent census provided by the U.S. Bureau of the Census (census population), 10 percent based on lane miles on-system, 14 percent based on truck vehicle miles traveled on-system, 7 percent based on percentage of census population below the federal poverty level, 15 percent based on congestion, and 7 percent based on fatal and incapacitating vehicle crashes;(B) 13 percent to MPOs operating in areas that are not transportation management areas, according to the following formula: 20 percent based on total vehicle miles traveled on and off the state highway system, 25 percent based on estimated population within the boundaries of the metropolitan planning area using data derived from the most recent census provided by the U.S. Bureau of the Census (census population), 8 percent based on lane miles on-system, 15 percent based on truck vehicle miles traveled on-system, 4 percent based on percentage of census population below the federal poverty level, 8 percent based on centerline miles on-system, 10 percent based on congestion, and 10 percent based on fatal and incapacitating vehicle crashes;(3) Category 4 Statewide Connectivity Corridor Projects - will be allocated to districts as an allocation program for specific corridors selected by the commission based on engineering analysis of three corridor types and, if applicable to the particular corridor type, considering the formula specified in subsection (a)(2) of this section:(A) Mobility corridors - congestion considerations throughout the state;(B) Connectivity corridors - two-lane roadways requiring upgrade to four-lane divided roadways to connect the urban areas of the state; and(C) Strategic corridors - strategic corridors on the state highway network that provide statewide connectivity;(4) Category 5 Congestion Mitigation and Air Quality Improvement - will be allocated to districts and MPOs as an allocation program for projects in a nonattainment area population weighted by ozone and carbon monoxide pollutant severity. The department will determine the final distribution of the allocation between the district and MPO to ensure timely use of funds. Before the MPO's use of the Category 5 funds, the MPO must obtain the district's concurrence on the project for which the funds are to be used;(5) Category 7 Metropolitan Mobility and Rehabilitation (TMA) - will be allocated to MPOs operating in areas that are transportation management areas as an allocation program based on the applicable federal formula;(6) Category 9 Transportation Alternatives - a portion of the funds in this category will be allocated to MPOs serving urbanized areas with populations over 200,000 as an allocation program based on the areas' relative share of population, unless FHWA approves a joint request from the department and the relevant MPOs to use other factors in determining the allocation; and(7) Category 11 District Discretionary - will be allocated to all districts as an allocation program based on state legislative mandates, but if there is no mandate or the amount of available funding in this category exceeds the minimum required by a mandate, the funding allocation for this category or the excess funding, as applicable, will be allocated according to the following formula: 70 percent based on annual on-system vehicle miles traveled, 20 percent based on annual on-system lane miles, and 10 percent based on annual on-system truck vehicle miles traveled. The commission may supplement the funds allocated to individual districts on a case-by-case basis to cover project cost overruns.(b) Pace factor calculation. For purposes of subsection (a)(1) of this section, the Pace factor is a calculation used to adjust funding among districts according to increases or decreases in a district's need to improve its pavement distress scores. It will slow the rate of improvement for districts with the highest condition scores and accelerate the rate of improvement for districts with the lowest condition scores. The Pace factor is calculated by:(1) determining the district with the highest distress score;(2) determining the deviation of a district's distress score from the highest score;(3) totaling the deviations for all districts as determined by paragraph (2) of this subsection.(c) Non-formula allocations. The commission, subject to the mandates of state and federal law and specific requirements contained in other chapters of this title for programs and projects described in subsection (a) of this section, will determine the amount of funding to be allocated to a district, metropolitan planning organization, political subdivision, governmental agency, local governmental body, recipient of a governmental transportation grant, or other eligible entity from each of the following program funding categories described in §16.153 of this subchapter:(1) Category 3 Non-Traditionally Funded Transportation Projects for specific projects;(2) Category 6 Structures Replacement and Rehabilitation as an allocation program;(3) Category 8 Safety Projects generally funded as an allocation program with some specific projects designated under the Safety Bond Program;(4) Category 9 Transportation Alternatives - of the remaining funds in this category, a portion will be allocated to certain areas of the state, for specific projects, based on the areas' relative share of the population, and a portion may be allocated in any area of the state for specific projects or transferred to other eligible federal programs, as authorized by law;(5) Category 10 Supplemental Transportation Projects generally funded as an allocation program with some specific projects designated under miscellaneous federal programs;(6) Category 12 Strategic Priority for specific projects;(7) Aviation Capital Improvement Program;(8) Public transportation;(9) Rail; and(10) State waterways and coastal waters.(d) Allocation program. For the purposes of this chapter, the term "allocation program" refers to a type of program funding category identified in the unified transportation program for which the responsibility for selecting projects and managing the allocation of funds has been delegated to department districts, selected administrative offices of the department, and MPOs. Within the applicable program funding category, each district, selected administrative office, or MPO is allocated a funding amount and projects can be selected, developed, and, subject to the base cash flow forecast prepared and published in accordance with §16.152(b) of this subchapter (relating to Cash Flow Forecasts), let to contract with the cost of each project to be deducted from the allocated funds available for that category.(e) Listing of projects. The department will list the projects being funded from funds allocated under subsections (a)(2) and (3) and (c)(6) of this section (categories 2, 4, and 12, respectively) that the department intends to develop and let during the ten-year unified transportation program (UTP) under §16.105 of this chapter (relating to Unified Transportation Program (UTP)), and reference for each listed project the program funding category to which it is assigned. If a program funding category is an allocation program, the listing is for informational purposes only and contains those projects reasonably expected at the time the UTP is adopted or updated to be selected for development or letting during the applicable period. For the purpose of listing projects in the UTP, "project" means a connectivity or new capacity roadway project. The term does not include a safety project, bridge project, federal discretionary project, maintenance project, preservation project, transportation alternatives project, or locally funded project.(f) Limitation on distribution. In distributing funds to the districts, metropolitan planning organizations, and other entities described in subsections (a) and (c) of this section, the department may not exceed the planning cash flow forecast prepared and published in accordance with §16.152(a) of this subchapter (relating to Cash Flow Forecasts). In developing and distributing funds for purposes of letting, the department may not exceed the base cash flow forecast prepared and published in accordance with §16.152(b) of this subchapter.(g) Formula revisions. The commission will review and, if determined appropriate, revise both the formulas and criteria for allocation of funds under subsections (a) - (c) of this section at least as frequently as every four years.(h) Supplemental allocations. The commission may supplement the funds allocated to individual districts under subsections (a)(1) and (7) of this section in response to special initiatives, safety issues, or unforeseen environmental factors. Supplemental funding under this subsection is not required to be allocated proportionately among the districts and is not required to be allocated according to the formulas specified in subsections (a)(1) and (7) of this section. In determining whether to allocate supplemental funds to a particular district, the commission may consider safety issues, traffic volumes, pavement widths, pavement conditions, oil and gas production, well completion, or any other relevant factors.(i) Carryover. If at the beginning of a fiscal year an amount allocated in a category to an entity in the preceding fiscal year is not committed during the preceding fiscal year, that uncommitted amount plus any uncommitted amount carried over to the preceding fiscal year carries over in that category to that entity for use in the fiscal year. As used in this section, carryover refers to the amount carried over from one fiscal year to the next fiscal year and is not considered as an allocation for the fiscal year to which it is carried over. For the purpose of this section, an amount of funds is considered to be committed if the transportation project with which the amount is programmed is in the department's project management system and is progressing towards letting. The department may adjust the amount of the carryover, subject to subsections (j) and (k) of this section.(j) Carryover in Category 5 Congestion Mitigation and Air Quality. To ensure that the state does not lose the ability to commit allocated funds and other federal funds, the department annually will review the use and programming of Category 5 funds. If at the beginning of a fiscal year a district and MPO has a carryover equal to more than 200 percent of the previous fiscal year's Category 5 allocation, the department may decrease the amount of the Category 5 carryover to an amount that is not less than 200 percent of the previous fiscal year's Category 5 allocation. The department may redistribute any amount of the reduction to another district and MPO but only for an eligible project in a non-attainment area, as authorized by law. The department will report to the commission all proposed redistributions and notify any impacted MPO before the department makes a redistribution under this subsection.(k) Carryover in Category 2 Metropolitan and Urban Corridor Projects. To ensure that the state does not lose the ability to commit allocated funds and other federal funds, the department annually will review the use and programming of Category 7 funds. If at the beginning of a fiscal year an MPO has a carryover equal to more than 200 percent of the previous fiscal year's Category 7 allocation, the department may decrease the amount of the Category 2 carryover, if any, by an amount equal to the difference between the amount of the Category 7 carryover and 200 percent of the previous fiscal year's Category 7 allocation. The department may redistribute that amount from Category 2 to the corresponding district's Category 11 District Discretionary allocation for use on the district's safety program. The department will report to the commission all proposed redistributions and notify any impacted MPO before the department makes a redistribution under this subsection.</content><note type="source"><p>Source Note: The provisions of this §16.154 adopted to be effective January 1, 2011, 35 TexReg 8388; amended to be effective November 15, 2012, 37 TexReg 8981; amended to be effective October 12, 2014, 39 TexReg 7945; amended to be effective March 18, 2015, 40 TexReg 1524; amended to be effective January 1, 2017, 41 TexReg 10670; amended to be effective February 16, 2022, 47 TexReg 660; amended to be effective February 6, 2024, 49 TexReg 563.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c16/scD/s16.155"><num value="16.155">§16.155</num><heading>Surplus Revenue and Contract Payments Not Allocated by Formula</heading><content>Revenue to which Transportation Code, Chapter 228 applies is allocated in accordance with that chapter and is not considered revenue to be allocated by a formula under §16.154 of this subchapter (relating to Transportation Allocation Funding Formulas).</content><note type="source"><p>Source Note: The provisions of this §16.155 adopted to be effective January 1, 2011, 35 TexReg 8388.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c16/scD/s16.156"><num value="16.156">§16.156</num><heading>Limitation on Allocation of Funds</heading><content>(a) Toll project conditions. Neither the commission nor the department may require that a toll project be included in a region's transportation plan or program as a condition for the allocation of funds for the construction of projects in the region.(b) Limitations on allocation decrease. Neither the commission nor the department may:(1) revise a formula or otherwise reduce funding as provided in the unified transportation program under §16.105 of this chapter (relating to Unified Transportation Program (UTP)), or a successor program, in a manner that results in a decrease of an allocation to a district or metropolitan planning organization (MPO) because of:(A) the failure of a region to include toll projects in a region's transportation plan or program;(B) participation by a political subdivision in the funding of a transportation project in the region, including the use of money collected in a transportation reinvestment zone (TRZ) under Transportation Code, §§222.106 - 222.108; or(C) payments, project savings, refinancing dividends, and any other revenue received by the commission or the department under a comprehensive development agreement, or surplus revenue of a state toll project or system, and used to finance the construction, maintenance, or operation of transportation projects or air quality projects in the region; or(2) take any other action that would reduce funding allocated to a district or MPO without the prior consent of the MPO because of:(A) the failure of a region to include toll projects in a region's transportation plan or program; or(B) receipt by a region of payments, project savings, refinancing dividends, and any other revenue received by the commission or the department under a comprehensive development agreement, or surplus revenue of a state toll project or system; or(C) the need of another district or MPO for increased funding to complete a pending project.(c) Limitation on reduction of committed funding. If a TRZ is designated in connection with a particular transportation project, neither the commission nor the department may reduce the amount of funding that was committed to the project because of that designation.(d) Financial assistance for toll projects. Nothing in this section precludes the commission or the department from using funds to design, develop, finance, construct, maintain, repair, or operate, or assist in the design, development, financing, construction, maintenance, repair, or operation of a toll project in a region.</content><note type="source"><p>Source Note: The provisions of this §16.156 adopted to be effective January 1, 2011, 35 TexReg 8388; amended to be effective November 15, 2012, 37 TexReg 8981.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c16/scD/s16.157"><num value="16.157">§16.157</num><heading>Use of Allocated Funds</heading><content>The funds allocated to a district or metropolitan planning organization (MPO) under §16.154 of this subchapter (relating to Transportation Allocation Funding Formulas) may be used to:(1) pay project costs, provide toll equity, or make payments under a pass-through toll agreement, for selected transportation projects; or(2) fund operation costs of an MPO in accordance with §16.52 of this chapter (relating to Unified Planning Work Program (UPWP)).</content><note type="source"><p>Source Note: The provisions of this §16.157 adopted to be effective January 1, 2011, 35 TexReg 8388.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c16/scD/s16.158"><num value="16.158">§16.158</num><heading>Encumbrance of Allocated Funds</heading><content>The allocation of funds to a district or metropolitan planning organization will be encumbered in an amount equal to the district engineer's estimate of the project cost and periodically adjusted to reflect:(1) the bid award;(2) any change orders issued during construction that modify the bid award; and(3) the total amount paid for a project when it is completed and closed out.</content><note type="source"><p>Source Note: The provisions of this §16.158 adopted to be effective January 1, 2011, 35 TexReg 8388.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c16/scD/s16.159"><num value="16.159">§16.159</num><heading>Voluntary Transfer of Allocated Funds</heading><content>(a) Transfer of allocated funds. Under this section, a metropolitan planning organization (MPO) may voluntarily transfer funds allocated to it under §16.154 of this subchapter (relating to Transportation Allocation Funding Formulas) to another MPO.(b) Transfer agreement. An agreement for the transfer of allocated funds must be written, executed by both MPOs, and approved by the executive director. The agreement must include:(1) the amount of funding to be transferred and the program funding category described in §16.153 of this subchapter (relating to Funding Categories) from which it will be re-allocated;(2) the total amount of funds to be reimbursed from allocations to the recipient MPO in future years, the applicable program funding category, the reimbursement period, and the payment schedule; and(3) a description of the project or projects to be developed with the transferred funds, including the project limits, connections with other transportation facilities, and the geographic area affected.(c) Commission approval. In determining whether to approve the transfer, the commission will consider the:(1) transportation need for and anticipated public benefit of the transfer, including:(A) possible loss of federal obligation authority or apportionment in one or more fiscal years; and(B) need of the recipient MPO for increased funding to complete a pending project;(2) reasonableness of the financial terms contained in the transfer agreement; and(3) relationship of the transfer to furthering the purposes of this chapter.(d) Reimbursement priority. The obligation of a recipient MPO to reimburse the lending MPO in accordance with the transfer agreement has priority over all other considerations relating to the allocation of future funding in the applicable program funding category to each of the participating MPOs. If, in any fiscal year, funds in the applicable program funding category are not available to the recipient MPO in an amount sufficient to reimburse the scheduled payment or payments, all of the recipient MPO's available funds in that category for that fiscal year will be re-allocated to the lending MPO. Any remaining unpaid balance of the scheduled reimbursement has priority in the next fiscal year over all other considerations relating to the recipient MPO's allocation of funding from the applicable program funding category. The priorities described in this subsection may be changed by written consent of all parties to the transfer agreement.(e) Federal requirements. The transfer and reimbursement of funds under this section are subject to all applicable federal requirements.</content><note type="source"><p>Source Note: The provisions of this §16.159 adopted to be effective January 1, 2011, 35 TexReg 8388.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c16/scD/s16.160"><num value="16.160">§16.160</num><heading>Funding Allocation Adjustments</heading><content>(a) Changes in funding. Changes in the allocation of funds under §16.153 or §16.154 of this subchapter (relating to Funding Categories and Transportation Allocation Funding Formulas, respectively) may result from significant changes in the department's funding and consideration of performance results.(b) Allocation revisions. If a significant change in funding is identified by the department's chief financial officer in an updated planning cash flow forecast prepared and published in accordance with §16.152(a) of this subchapter (relating to Cash Flow Forecasts), the commission may revise the allocation of funds to each program funding category or from the program funding categories to the districts and metropolitan planning organizations (MPO) and may approve:(1) a specific percentage increase or decrease in the allocation of funds and, subject to the mandates of state and federal law, apply the percentage change equally to each program funding category; or(2) an increase or decrease in the allocation of funds to one or more program funding categories, after considering the:(A) total amount of the change;(B) priority of the funding category based on performance results and the category's relationship to the stated commission goals as provided in the statewide long-range transportation plan under §16.54 of this chapter (relating to Statewide Long-Range Transportation Plan (SLRTP));(C) mandates of state and federal law; and(D) best interests of the state.(c) Adjustment of programs. After the commission approves a change in the allocation of funds to a program funding category under subsection (b) of this section, the funds allocated to individual districts and MPOs will be adjusted and the unified transportation program, statewide transportation improvement program, and metropolitan transportation improvement programs will be revised in accordance with the applicable change in funding. Specific projects will be advanced or delayed in the order of the planning organization's and department's listed priorities in the applicable programs.(d) Letting. If a significant change in funding is identified by the department's chief financial officer in an updated base cash flow forecast prepared and published in accordance with §16.152(b) of this subchapter (relating to Cash Flow Forecasts), the chief financial officer may revise the letting schedule to maintain the constraint of the base cash flow forecast. Projects eligible for letting include all authorized projects or allocation programs covered in the unified transportation program or the statewide transportation improvement program. Specific projects will be advanced or delayed relative to the order of listed priorities in the applicable programs, fund source eligibility, and the completion of project benchmarks sufficient to proceed to construction. (e) Public involvement. The department will hold at least one statewide public hearing regarding a proposed change in the allocation of funds to a program funding category under this section with an available comment period of at least 30 days after the date the hearing notice appears in the Texas Register in accordance with the procedures set forth in §16.105(g) of this chapter (relating to Unified Transportation Program (UTP)).(f) Publication. Documents describing each change in the allocation of funds to a program funding category will be available for viewing by the public on the department's website and at each of the district offices and at the department's Financial Management Division offices in Austin.</content><note type="source"><p>Source Note: The provisions of this §16.160 adopted to be effective January 1, 2011, 35 TexReg 8388; amended to be effective November 15, 2012, 37 TexReg 8981; amended to be effective January 1, 2017, 41 TexReg 10670; amended to be effective September 1, 2018, 43 TexReg 5240.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c16/scD/s16.161"><num value="16.161">§16.161</num><heading>Ten-Year Programming Flexibility for Certain Categories</heading><content>(a) Category 2 Metropolitan and Urban Corridor Projects and Category 4 Statewide Connectivity Corridor Projects. Districts and MPOs may program funding on projects using the full ten-year balance of their respective allocations in categories 2 and 4.(b) Category 12 Strategic Priority. The commission may authorize the programming of category 12 funds on projects based on and within the constraint of the full ten-year balance of that category.(c) Subsections (a) and (b) of this section are subject to fiscal and letting constraints, as described in §16.105(b) of this chapter (relating to Unified Transportation Program (UTP)) and §16.152(b) of this subchapter (relating to Cash Flow Forecasts).</content><note type="source"><p>Source Note: The provisions of this §16.161 adopted to be effective February 16, 2022, 47 TexReg 660.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c16/scE"><num value="E">SUBCHAPTER E</num><heading>PROJECT, PERFORMANCE, AND FUNDING REPORTING</heading><section identifier="/us/state/tx/tac/t43/p1/c16/scE/s16.201"><num value="16.201">§16.201</num><heading>Project, Performance, and Funding Reporting Systems</heading><content>(a) General. The department will establish project, performance, and funding reporting systems that make available in a central location on the department's website information regarding the:(1) delivery of individual transportation projects as provided in §16.202 of this subchapter (relating to Reporting System for Delivery of Individual Projects);(2) operation and condition of the department's statewide transportation system as provided in §16.203 of this subchapter (relating to Performance Reporting on the Operation and Condition of the Statewide Transportation System); and(3) funding available for the department's statewide transportation system and actual expenditures related to the system as provided in §16.204 of this subchapter (relating to Reporting System for Funding and Expenditures).(b) Entry of information. Each district will enter information about each of its transportation projects into the project, performance, and funding reporting systems.(c) Department website. The department will make the statistical information provided under this subchapter available on the department's website in more than one downloadable electronic format. The information will be easily accessible, understandable, and in a format that allows a person to conduct electronic searches for information about a specific district, a county, a highway under the jurisdiction of the department, or a type of road under the jurisdiction of the department.(d) Reports to legislative districts. The department will provide to each member of the legislature a copy of the annual reports required by §16.202 and §16.203 of this subchapter for each department district located within the boundaries of a legislative district, and at the request of a legislator, a senior management employee of the department will meet with the legislator to explain the reports. A copy of each annual district report will also be provided to the political subdivisions located in the district that is the subject of the report, including a:(1) municipality;(2) county; and(3) local transportation entity.(e) Reports to the legislature. The department will provide a copy of the annual reports required by §16.202 and §16.203 of this subchapter to the lieutenant governor, the speaker of the house of representatives, and the chair of the standing committee of each house of the legislature with primary jurisdiction over transportation issues.</content><note type="source"><p>Source Note: The provisions of this §16.201 adopted to be effective January 1, 2011, 35 TexReg 8388; amended to be effective November 15, 2012, 37 TexReg 8981.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c16/scE/s16.202"><num value="16.202">§16.202</num><heading>Reporting System for Delivery of Individual Projects</heading><content>(a) Project Portfolio . The department will develop a portfolio of projects for tracking the delivery of each transportation project in a district, including grouped rehabilitation and preventive maintenance projects, that is being developed or under construction and identified in the next fiscal year or any of the following three fiscal years of the unified transportation program (UTP) described in §16.105 of this chapter (relating to Unified Transportation Program (UTP)).(1) Each district will develop a consistently formatted portfolio based on the UTP that contains all transportation projects that the district intends to implement during the four year period. The district will seek to engage key stakeholders in portfolio review meetings when appropriate.(2) For each project the portfolio must contain:(A) the status of the project;(B) each source of funding for the project, the funding category to which the project has been assigned, and the project's priority within the category;(C) an identification of each phase and benchmark of project development, including environmental clearance, right of way acquisition or possession, utility adjustment or coordination, completion of plans, specifications, and estimates, award of construction contract, and completion of construction;(D) a project schedule with estimated timelines for completing each applicable benchmark of the project as the project progresses;(E) a summary of progress on the project that identifies whether the project is being completed on-time and on-budget; and(F) a list of department employees responsible for the project and contact information for each person listed.(3) For each major transportation project identified in §16.106 of this chapter (relating to Major Transportation Projects) the portfolio must also contain:(A) the estimated cost of each phase of project development; and(B) the progress on each applicable benchmark of the project that identifies whether the project is being completed on-time and on-budget.(4) The department will develop performance measures for projects included in each district's portfolio and statewide performance measures to report whether the department is developing the appropriate volume and mix of projects and is on track to meeting letting targets. The department will regularly review project development activities in each district's portfolio and use the review in preparing a budget for the district and the department and monitoring and evaluating the performance of the district. In conducting the review, the department will, when appropriate, seek input from key stakeholders. The department will regularly report the results of these reviews to the commission.(5) The department will consolidate the districts' portfolios into a statewide portfolio and publish it on the department's website.(6) The department will update the information contained in the project and performance reporting system for delivery of individual transportation projects under this section at least monthly. The department will conduct a comprehensive review of the reporting system to determine if improvements are necessary at least every four years. In conducting the review, the department will incorporate feedback from internal and external users of the system and advice from the department's public involvement office. If improvements are necessary, the department will develop an implementation plan for those improvements.(b) Annual Report. As a component of the project and performance reporting system for delivery of individual transportation projects required by this section, the department will conduct an annual review of the benchmarks and timelines of all transportation projects included in the portfolios to determine the completion rates of the projects and whether the projects were completed on-time and on-budget. The review will be used to create an annual report on the level of achievement statewide and by district based on the benchmarks and timelines described in subsection (a)(2) and (3) of this section for each transportation project listed in the portfolios. The report will include:(1) the status of each project identified as a high priority in accordance with §16.105 of this chapter;(2) a summary of the number of statewide project implementation benchmarks that have been completed; and(3) information about the accuracy of previous department financial forecasts.</content><note type="source"><p>Source Note: The provisions of this §16.202 adopted to be effective January 1, 2011, 35 TexReg 8388; amended to be effective November 15, 2012, 37 TexReg 8981; amended to be effective September 1, 2018, 43 TexReg 5240.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c16/scE/s16.203"><num value="16.203">§16.203</num><heading>Performance Reporting on the Operation and Condition of the Statewide Transportation System</heading><content>(a) System performance. The department will develop a set of performance measures for evaluating the effectiveness of its expenditures on the statewide transportation system in achieving the transportation goals identified by the statewide long-range transportation plan under §16.54 of this chapter (relating to Statewide Long-Range Transportation Plan (SLRTP)).(b) Performance measures. At a minimum, the performance measures adopted under subsection (a) of this section will include the:(1) percentage of transportation construction projects for which the project development phases, including environmental clearance, right of way acquisition or possession, utility adjustment or coordination, completion of plans, specifications, and estimates, and award of construction contract are completed on or before the planned implementation timelines and on-budget;(2) percentage of transportation construction projects for which construction is completed on or before the planned implementation timelines and on-budget;(3) total dollar amount spent for right of way acquisition as a percentage of the original amount estimated for right of way acquisition;(4) number of vehicle miles traveled;(5) peak hour travel congestion in the eight largest metropolitan areas;(6) number of fatalities per 100 million vehicle miles traveled;(7) percentage of bridges that have a condition rating of good or better;(8) dollar amounts deposited to the credit of the state highway fund and disbursements from the fund compared to the amounts forecasted to be deposited and disbursed, respectively;(9) dollar amounts obligated in connection with contracts or participation in contracts with historically underutilized businesses, disadvantaged business enterprises, and small business enterprises as a percentage of the amounts spent on all contracts; and(10) percentage of lane miles on the state highway system that have a pavement condition rating of good or better.(c) Additional performance measures. The commission, as it deems appropriate, may adopt performance measures in addition to those listed in subsection (b) of this section.(d) Reports on effectiveness of expenditures. As a component of the performance reporting system required by this section, the department will include:(1) reports prepared by the department or an institution of higher education that evaluate the effectiveness of the department's expenditures on transportation projects to achieve the transportation goals identified by the SLRTP;(2) information about the condition of bridges on the state highway system; and(3) information about the condition of the pavement for each highway on the state highway system.(e) Updates. The department will update the information contained in the performance reporting system under this section at least annually.(f) Annual Report. As a component of the project and performance reporting system required by this section, the department annually will compile and evaluate the information provided for the performance measures and publish a report describing the results and the effectiveness of meeting each transportation goal that is identified by the statewide long-range transportation plan under §16.54 of this chapter. The department will report on the results and level of achievement statewide and by district.</content><note type="source"><p>Source Note: The provisions of this §16.203 adopted to be effective January 1, 2011, 35 TexReg 8388; amended to be effective November 15, 2012, 37 TexReg 8981.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c16/scE/s16.204"><num value="16.204">§16.204</num><heading>Reporting System for Funding and Expenditures</heading><content>(a) Account information system. The department will develop an account information reporting system for tracking money deposited to the credit of each separate account and subaccount of the state highway fund, including subaccounts for toll projects required under Transportation Code, Chapter 228. The account information will include:(1) the source for the department's funds whether from the state highway fund, bond proceeds, or revenue from a comprehensive development agreement or a toll project, and amount of the deposited funds;(2) the amount and general type or purpose of expenditure as described in the comptroller's statewide accounting system; and(3) the balance credited to each account and subaccount.(b) Reporting. The department will report on the funding and expenditures as applicable by each:(1) district;(2) program funding category as identified in §16.153 of this chapter (relating to Funding Categories); and(3) source of funds as described in subsection (a)(1) of this section.(c) Updates. The department will update the account information reporting system at least quarterly.</content><note type="source"><p>Source Note: The provisions of this §16.204 adopted to be effective January 1, 2011, 35 TexReg 8388; amended to be effective November 15, 2012, 37 TexReg 8981.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c16/scE/s16.205"><num value="16.205">§16.205</num><heading>Department Information Consolidation</heading><content>To the extent practicable and to avoid duplication of reporting requirements, the department may combine the reports required under this subchapter.</content><note type="source"><p>Source Note: The provisions of this §16.205 adopted to be effective January 1, 2011, 35 TexReg 8388.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p1/c21"><num value="21">CHAPTER 21</num><heading>RIGHT OF WAY</heading><subchapter identifier="/us/state/tx/tac/t43/p1/c21/scA"><num value="A">SUBCHAPTER A</num><heading>LAND ACQUISITION PROCEDURES</heading><section identifier="/us/state/tx/tac/t43/p1/c21/scA/s21.1"><num value="21.1">§21.1</num><heading>Responsible Entity</heading><content>Adequate right-of-way to accommodate the approved design of projects on designated state highways may be acquired directly by the staff of the department, by the utilization of the services of a right of way acquisition provider under contract with the department in accordance with Chapter 9, Subchapter F of this title (relating to Contract Management), or directly by counties or cities in accordance with §21.11 and §21.12 of this subchapter. If eminent domain proceedings are necessary, acquisition is handled by the Office of the Attorney General unless a specific acquisition contract or agreement with a county or city provides that the county or city will handle eminent domain proceedings.</content><note type="source"><p>Source Note: The provisions of this §21.1 adopted to be effective January 1, 1976; amended to be effective January 2, 2002, 26 TexReg 11052.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scA/s21.2"><num value="21.2">§21.2</num><heading>Controlled Access Highways</heading><content>For highways officially designated as controlled access highways by the Texas Transportation Commission, right-of-way is acquired with access between abutting properties and the highway facility permitted and/or denied in accordance with the approved design of the projects.</content><note type="source"><p>Source Note: The provisions of this §21.2 adopted to be effective January 1, 1976; amended to be effective January 2, 2002, 26 TexReg 11052.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scA/s21.3"><num value="21.3">§21.3</num><heading>Title Requirements for Highway Right-of Way</heading><content>It is preferred procedure of the department to acquire fee title, excluding oil, gas and sulphur, to the right-of-way proper. An easement interest will be acquired in land not included in the right-of-way proper which is required for drainage channels, detours, highway construction, or other auxiliaries to the right-of-way.</content><note type="source"><p>Source Note: The provisions of this §21.3 adopted to be effective January 1, 1976.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scA/s21.4"><num value="21.4">§21.4</num><heading>Title Insurance</heading><content>In the acquisition of right of way by the department, title insurance may be purchased if it is available and provided the title company can supply the state's needs without delaying right-of-way acquisition. Fees paid for title insurance will be as established and approved by the Texas Department of Insurance. Additional fees for services that are not specified by the Texas Department of Insurance as being covered by approved title insurance rates may be paid to a title company if the services are reasonably necessary to complete the closing and the fees are commercially reasonable.</content><note type="source"><p>Source Note: The provisions of this §21.4 adopted to be effective January 1, 1976; amended to be effective December 9, 2004, 29 TexReg 11388.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scA/s21.5"><num value="21.5">§21.5</num><heading>Designation of Title Agent to Represent Title Companies</heading><content>In order for an agent to sell title insurance to the department the agent's title insurance company must advise the department that the agent is authorized to represent the company in Texas.</content><note type="source"><p>Source Note: The provisions of this §21.5 adopted to be effective January 1, 1976.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scA/s21.6"><num value="21.6">§21.6</num><heading>Use of Abstract Plant Facilities</heading><content>(a) Whenever title policies cannot be obtained in the normal procedure, the determination of ownership and title defects, if any, are made through the use of abstract plant facilities under contract to the state. The contract may be by the hour or by the parcel depending on departmental needs and preference of the owner of the abstract plant facility. The title examinations may be made by licensed staff attorneys using the abstract facilities or by the abstract company providing a title run sheet directly to the department to be reviewed by other staff of the department.(b) A bid proposal will be accepted from any abstract plant facility that is willing and able to furnish the desired services, and will be forwarded to the department's Right of Way Division for an administrative decision as to acceptance or rejection.(c) If the department cannot identify an abstract company that is willing or able to permit licensed staff attorneys to use its facilities or to provide title run sheets directly to the department on a timely basis as described in subsection (a) of this section, the department may contract with any qualified title examiner to provide a title run sheet or other title report, in a form and content acceptable to the district engineer, directly to the department to be reviewed by other staff of the department. A bid proposal may be submitted to the district engineer by any title examiner that is willing and able to furnish the desired services, and will be forwarded to the department's Right of Way Division for an administrative decision as to acceptance or rejection.</content><note type="source"><p>Source Note: The provisions of this §21.6 adopted to be effective January 1, 1976; amended to be effective December 9, 2004, 29 TexReg 11388.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scA/s21.7"><num value="21.7">§21.7</num><heading>Donation of Real Property</heading><content>If accepted by the department in accordance with Chapter 1, Subchapter G, of this title (relating to Donations), a person whose real property is being acquired by the department for a highway project may make a gift or donation of the property, or any part of the property. The department will inform the owner of the owner's right to receive just compensation for the property.</content><note type="source"><p>Source Note: The provisions of this §21.7 adopted to be effective January 1, 1976; amended to be effective January 2, 2002, 26 TexReg 11052.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scA/s21.8"><num value="21.8">§21.8</num><heading>Minerals</heading><content>In acquiring right-of-way for highway projects, as a general proposition, all minerals will be acquired with the exception of oil, gas, and sulphur. Surface rights to oil, gas, and sulphur will be acquired if there is a whole taking of the surface estate of the owner of these minerals.</content><note type="source"><p>Source Note: The provisions of this §21.8 adopted to be effective January 1, 1976.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scA/s21.9"><num value="21.9">§21.9</num><heading>Taxes</heading><content>When whole properties are acquired for highway right-of-way purposes, payment is to be made of all delinquent taxes using funds withheld from the compensation due the owner. When partial takings are acquired, the department will cooperate with taxing agencies in the payment of all taxes.</content><note type="source"><p>Source Note: The provisions of this §21.9 adopted to be effective January 1, 1976.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scA/s21.10"><num value="21.10">§21.10</num><heading>Negotiations</heading><content>(a) Every reasonable effort will be made to acquire real property by negotiation and the full amount established as just compensation will be offered for the property. Where appropriate, the just compensation for the real property acquired and for damages to remaining real property shall be separately stated.(b) The department will make a bona fide offer to acquire the real property from the property owner voluntarily, as provided by Property Code, §21.0113. All offers will be in writing, and will inform the owner of the owner's right to discuss the offer with others or to keep the offer confidential, as provided by Property Code, §21.0111.(c) An initial offer to purchase or lease will include copies of all appraisal reports that relate to the real property, that were prepared during the ten-year period preceding the date that the offer was sent to the owner, and that were produced or acquired by the department. The initial offer will be sent to the owner of the real property by certified mail, return receipt requested.(d) The final offer must be equal to or greater than the amount of an appraisal obtained by the department from a certified appraiser of the value of the property being acquired and the damages, if any, to any of the property owner's remaining property. The department will include with the final offer a copy of the appraisal on which the final offer is based, the conveyance document that is to be signed by the property owner, and a copy of the landowners' bill of rights statement required by Property Code, §21.0112, unless the department has provided a copy of the document to the owner before the final offer is made. The department will not make the final offer before the 30th day after the date that the initial offer was delivered to the owner.(e) Before filing a petition of condemnation, the department will give the property owner at least 14 days after the date that the final offer was delivered to the owner to respond to that offer.(f) No owner shall be required to surrender possession of real property before:(1) payment of the agreed purchase price;(2) in the case of condemnation, the amount of compensation stated in the final judgment is paid to the owner or deposited with a court for the benefit of the owner; or(3) in the case of condemnation when possession is required by the department prior to a final judgment being entered, the department has deposited with the court, for the benefit of the owner, the amount of a special commissioners' award or the amount of the department's approved appraisal of the property, whichever is greater.(g) In the case of condemnation where the department does not take possession until after a final judgment of the court has been entered, the amount of compensation paid to the owner of the property or deposited with a court for the benefit of the owner shall be the amount of compensation stated in the final judgment in the condemnation proceeding for the property. To the greatest extent practicable, no person lawfully occupying real property shall be required to move without at least 90 days written notice of the date by which the move is required.(h) For the purposes of this section, a document is considered to be delivered on the earlier of the delivery date indicated on the certified mail receipt or the fifth day after the date that the document, properly addressed with postage prepaid, is deposited with the United States Postal Service.</content><note type="source"><p>Source Note: The provisions of this §21.10 adopted to be effective January 1, 1976; amended to be effective January 2, 2002, 26 TexReg 11052; amended to be effective September 15, 2011, 36 TexReg 5949.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scA/s21.11"><num value="21.11">§21.11</num><heading>Requests to Counties and Cities for Acquisition of Right-of-Way</heading><content>The appropriate district engineer is authorized to furnish to the applicable county or city the property legal descriptions and right-of-way maps of land or right-of-way deemed necessary or convenient for any road or highway to be constructed, reconstructed, maintained, widened, straightened, or lengthened as a part of the state highway system. The property legal descriptions and right-of-way maps are prepared to accommodate the approved design of projects as authorized by the Texas Transportation Commission.</content><note type="source"><p>Source Note: The provisions of this §21.11 adopted to be effective January 1, 1976; amended to be effective January 2, 2002, 26 TexReg 11052.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scA/s21.12"><num value="21.12">§21.12</num><heading>Reimbursement to Counties and Cities for Right-of-Way Acquisition</heading><content>Reimbursement to counties and cities for right-of-way acquisition on designated United States or state highways will be made in accordance with the terms of contractual agreements executed between the department and the counties and cities for the right-of-way requested and authorized by the department. An agreement is executed for each right-of-way project.</content><note type="source"><p>Source Note: The provisions of this §21.12 adopted to be effective January 1, 1976.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scA/s21.13"><num value="21.13">§21.13</num><heading>Valuation for Real Property to be Acquired</heading><content>Prior to the making of an offer to purchase real property for highway purposes by the department, approved values are determined based upon appraisals (including short form appraisals, memorandums of value, or opinions of value) of the real property to be acquired. The approved values used for the final offer are determined based upon a written appraisal by a certified appraiser. The owner or the owner's designated representative is given the opportunity to accompany the appraiser during the inspection of the property being appraised.</content><note type="source"><p>Source Note: The provisions of this §21.13 adopted to be effective January 1, 1976; amended to be effective January 2, 2002, 26 TexReg 11052; amended to be effective September 15, 2011, 36 TexReg 5949.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scA/s21.14"><num value="21.14">§21.14</num><heading>Qualifications of Real Estate Appraisers and Other Technical Experts or Estimators</heading><content>The qualifications of real estate appraisers, and other technical experts or estimators used in the acquisition of real property for highway purposes must be approved by the department. The qualifications of a real estate appraiser must include a requirement that the appraiser be certified.</content><note type="source"><p>Source Note: The provisions of this §21.14 adopted to be effective January 1, 1976; amended to be effective September 15, 2011, 36 TexReg 5949.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scA/s21.15"><num value="21.15">§21.15</num><heading>Employment of Real Estate Appraisers, Technical Experts, and Estimators</heading><content>The services of real estate appraisers and technical experts or estimators are obtained by the department on the basis of professional service contracts in accordance with Chapter 9, Subchapter F of this title (relating to Contract Management).</content><note type="source"><p>Source Note: The provisions of this §21.15 adopted to be effective January 1, 1976; amended to be effective January 2, 2002, 26 TexReg 11052.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scA/s21.16"><num value="21.16">§21.16</num><heading>Use of Options To Purchase for Advance Acquisition of Real Property</heading><content>(a) The department may execute an option contract for the acquisition of right of way and control of development rights if the Texas Transportation Commission has authorized the expenditure of option fees for a transportation facility project or corridor and the district engineer determines that:(1) the property to be optioned is or may possibly be used in or in connection with the transportation facility;(2) the size and location of the property to be optioned is reasonably related to the possible future design and alignment of the transportation facility; and(3) the terms of the option contract may be economically beneficial to the department by:(A) establishing the purchase price at current market value as of the date of the option contract;(B) establishing a methodology for determining a purchase price at the time the option is exercised to avoid the necessity for condemnation;(C) restricting development or improvements that would substantially increase the purchase price; or(D) reducing the time required for the acquisition of the property.(b) An option contract shall be for a primary period of not more than 5 years, but may be subject to one or more extensions beyond the primary term, each extension period not to exceed 5 years.(c) An option fee to be paid to the property owner may be:(1) a one-time fee paid at the time the option contract is executed;(2) in the form of periodic payments; or(3) a combination of paragraphs (1) and (2) of this subsection.</content><note type="source"><p>Source Note: The provisions of this §21.16 adopted to be effective October 21, 2004, 29 TexReg 9695; amended to be effective January 5, 2006, 30 TexReg 8997.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c21/scB"><num value="B">SUBCHAPTER B</num><heading>UTILITY ADJUSTMENT, RELOCATION, OR REMOVAL</heading><section identifier="/us/state/tx/tac/t43/p1/c21/scB/s21.21"><num value="21.21">§21.21</num><heading>State Participation in Relocation, Adjustment, and/or Removal</heading><content>The adjustment, relocation, and/or removal of utility facilities on the state highway system and reimbursement for the costs of such work will be in accordance with a written agreement between the state and the utility company or county or city, whichever is applicable.</content><note type="source"><p>Source Note: The provisions of this §21.21 adopted to be effective January 1, 1976.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scB/s21.22"><num value="21.22">§21.22</num><heading>Agreements</heading><content>(a) If the department determines that an adjustment, modification, relocation, or removal of a utility facility may be required by an improvement to a state highway, the department will provide the utility with sufficient plans and specifications to enable the utility to reasonably determine the future location, including depth of cover and required clearances, if applicable, and estimated cost of the adjustment, modification, relocation, or removal of the utility facility.(b) The utility shall negotiate with the department in good faith to reach an agreement on the terms of the relocation. The agreement shall contain:(1) all necessary signatures by an authorized utility representative;(2) plans and specifications sufficient to determine the proposed location of the facility;(3) cost estimates and support if the adjustment, modification, relocation, or removal of the utility facility may be eligible for department cost participation;(4) proof of the utility facility's underlying property interest if cost participation is sought; and(5) a date by which the utility will begin and an estimated date of completion of the adjustment, modification, relocation, or removal.(c) If the department and the utility have not entered into a written agreement within 30 days after the department provides the plans and specifications under subsection (a) of this section, the department will send written notice to the utility by certified mail that the department has determined that the adjustment, modification, relocation, or removal of the utility's facility may be required. The notice will include:(1) a final plan for the adjustment, modification, relocation, or removal of the utility facility;(2) the department's standard utility agreement for the relocation or adjustment of the facility; and(3) a date by which the adjustment, modification, relocation, or removal of the utility's facility must be complete.(d) Ninety days after the utility receives the notice under subsection (c) of this section, the department may relocate the facility at the sole cost and expense of the utility less any reimbursement that would have been payable to the utility under Transportation Code, §203.092, unless the utility:(1) has executed the agreement;(2) is in the process of negotiating in good faith with the department to relocate the facility; or(3) has requested and been granted by the department an extension of time in which to sign an agreement.</content><note type="source"><p>Source Note: The provisions of this §21.22 adopted to be effective March 18, 2004, 29 TexReg 2721.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scB/s21.23"><num value="21.23">§21.23</num><heading>State Participation in Toll-Related Relocations</heading><content>(a) This section applies to the relocation of utility facilities made necessary by:(1) an improvement of a nontolled state highway facility to add one or more tolled lanes;(2) an improvement of a nontolled state highway that has been converted to a toll project on the state highway system; or(3) the construction on a new location of a toll project on the state highway system or the expansion of such a toll project.(b) As a condition for reimbursement under this section:(1) the Texas Transportation Commission must designate the highway facility to be constructed or improved as a toll project; and(2) the utility owner must enter into an agreement concerning the terms of the relocation under subsection (c) of this section.(c) Agreement.(1) The utility owner, prior to incurring relocation costs, shall enter into an agreement concerning the terms of the relocation with the department, or with a department contractor under a comprehensive development agreement whose scope of work includes responsibility for utility relocations made necessary by the project.(2) Execution of an agreement shall be based on a determination by the department, or a department contractor if authorized under a comprehensive development agreement, that a conflict exists between a proposed project and a utility facility.(3) If a dispute arises concerning the existence of a conflict, the Right of Way Director may authorize the execution of a toll road utility agreement based on evidence presented by the affected utility.(d) Eligible relocation costs.(1) Eligible relocation costs include necessary material acquisition, engineering and planning costs, and the physical installation of materials.(2) The department will reimburse 50% of eligible relocation costs that are actually incurred by the utility owner.</content><note type="source"><p>Source Note: The provisions of this §21.23 adopted to be effective May 18, 2006, 31 TexReg 3918; amended to be effective October 18, 2007, 32 TexReg 7299; amended to be effective April 16, 2014, 39 TexReg 2959.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scB/s21.24"><num value="21.24">§21.24</num><heading>State Participation in Gas Pipeline Relocations</heading><content>(a) This section applies only to the adjustment, modification, relocation, or removal of a gas pipeline that is owned or operated by a gas corporation authorized to act under Utilities Code, §181.005, and that is located longitudinally on a state highway right of way.(b) The adjustment, modification, relocation, or removal of a gas pipeline owned or operated by a gas corporation made necessary by an improvement to a state highway will be at the sole cost and expense of the gas corporation, except that the department will reimburse the gas corporation for that cost and expense if:(1) the owner or operator of the pipeline has a private property interest in the land occupied by the pipeline that is adjusted, modified, relocated, or removed; or(2) the pipeline is owned or operated by a gas utility, as defined in the Utilities Code, §181.021 or a common carrier subject to Natural Resources Code, Chapter 111, and meets the requirements of Transportation Code, §203.092.(c) If an owner or operator of a gas pipeline requests reimbursement from the department for the costs of adjustment, modification, relocation, or removal of its pipeline under subsection (b)(2) of this section, the pipeline owner or operator must provide:(1) a written certification that it is a gas utility or common carrier that qualifies for reimbursement under subsection (b)(2) of this section; and(2) documentation that substantiates that the pipeline owner or operator properly filed its status with the Railroad Commission of Texas and is a gas utility, as defined in the Utilities Code, §181.021 or a common carrier subject to Natural Resources Code, Chapter 111.</content><note type="source"><p>Source Note: The provisions of this §21.24 adopted to be effective December 10, 2009, 34 TexReg 8795.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scB/s21.25"><num value="21.25">§21.25</num><heading>State Participation in the Relocation of Certain Publicly-Owned Utility Facilities</heading><content>(a) A utility that is a political subdivision, is owned or operated by a political subdivision, or is a water supply or sewer service corporation that is organized and operating under Chapter 67, Water Code, may request that the relocation of its utility facilities required by a state highway improvement project be at the expense of the state under Transportation Code, Section 203.092(a-4).(b) To request relocation under this section, the utility must make a written request to the department and submit:(1) documentation that the utility, because of an existing financial condition, would be unable to pay the cost of relocation in full or in part at the time of relocation or that the utility's ability to operate or provide essential services to its customers would be adversely affected by such a payment made at that time; and(2) documentation:(A) on the utility's ability to obtain a state infrastructure bank loan under Chapter 6 of this title (relating to State Infrastructure Bank) and its ability to obtain other financing for the relocation, including relevant financial information described in §6.23 of this title (relating to Application Procedure); or(B) that the utility is a political subdivision, or owned or operated by a political subdivision, that has a population of less than 5,000 and is located within a county that has been included in at least five disaster declarations made by the president of the United States of America in the six-year period preceding the proposed date of the relocation; and(3) any other information or documentation requested by the department.(c) As soon as practicable after review and analysis of the documentation and information provided under subsection (b) of this section, the department will submit findings and recommendations to the commission for consideration.(d) The commission will find that all or a part of the utility facility relocation is an expense of the state if:(1) payment for all or a part of the relocation of the utility facility would not cause the department to exceed $10 million for the relocation of utilities authorized under Section 203.092(a-4) in any fiscal year; and(2) the commission determines that:(A) the utility is a political subdivision, is owned or operated by a political subdivision, or is a water supply or sewer service corporation that is organized and operating under Chapter 67, Water Code;(B) a financial condition exists, as described in subsection (b)(1) of this section; and(C) the utility:(i) would not be able to receive a state infrastructure bank loan under Chapter 6 of this title to finance the cost of the relocation and is otherwise unable to finance that cost; or(ii) meets the description provided in subsection (b)(2)(B) of this section.(e) If the commission finds that all or a part of the utility facility relocation is an expense of the state, the department and the utility shall include the terms of the department's payment of relocation expenses in an agreement concerning the relocation.(f) Because of the fiscal constraint provided under Transportation Code, Section 203.092(e), the department:(1) may prioritize the utility requests based on the needs of the department, including the construction schedules of the projects requiring relocation of utility facilities;(2) may delay until the next fiscal year the payment of all or part of a claim made by a utility if at the time the claim is received by the department, the payment is prohibited by Section 203.092(e); and(3) will not pay a claim for payment that is received by the department later than one year after the date that the relocation of the utility facility is completed.</content><note type="source"><p>Source Note: The provisions of this §21.25 adopted to be effective February 19, 2020, 45 TexReg 1044; amended to be effective January 6, 2025, 50 TexReg 192.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c21/scC"><num value="C">SUBCHAPTER C</num><heading>UTILITY ACCOMMODATION</heading><section identifier="/us/state/tx/tac/t43/p1/c21/scC/s21.31"><num value="21.31">§21.31</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) AASHTO--American Association of State Highway and Transportation Officials.(2) Abandoned utility--A utility facility that no longer carries a product or performs a function and for which the owner:(A) does not plan to use in future operations; or(B) is unknown or cannot be located.(3) Access denial line--A line concurrent with the common property line across which access to the highway facility from the adjoining property is not permitted.(4) As-Built plans--Drawings showing the actual locations of installed or relocated utility facilities.(5) ASCE --American Society of Civil Engineers.(6) Border width--The area between the edge of pavement structure or back of curb to the right of way line.(7) Bridge abutment joint--The joint between the approach slab and bridge structure.(8) Broadband service--Internet service with the capability of providing:(A) a download speed of 25 megabits per second or faster; and(B) an upload speed of three megabits per second or faster.(9) Center median--The area between opposite directions of travel on a divided highway.(10) Certified as-installed construction plans--The construction plans for the installation of a utility facility, accompanied by an affidavit certifying that the facility was installed in accordance with the plans.(11) Commission--The Texas Transportation Commission.(12) Common carrier--As defined in the Natural Resources Code, §111.002.(13) Communication line--Any conductive wire or cable that uses electrical or light signals for the transmission of information.(14) Conduit--A pipe or other opening, buried or above ground, for conveying fluids or gases, or serving as an envelope containing pipelines, cables, or other utility facilities.(15) Controlled access highway--A highway so designated by the commission on which owners or occupants of abutting lands and other persons are denied access to or from the highway mainlanes.(16) Department--The Texas Department of Transportation.(17) Depth of cover--The minimum depth as measured from the top of the utility line to the ground line or top of pavement.(18) Design vehicle load (HS-20)--A design load designation used for bridge design analysis representing a three-axle truck loaded with four tons on the front axle and 16 tons on each of the other two axles. The HS-20 designation is one of many established by AASHTO for use in the structural design and analysis of bridges.(19) Director--The chief administrative officer in charge of either the Maintenance Division or the Right of Way Division, or a successor division of either the Maintenance Division or the Right of Way Division.(20) Distribution line--That part of a utility system connecting a transmission line to a service line.(21) District--One of the 25 geographical districts into which the department is divided.(22) District engineer--The chief administrative officer in charge of a district, or his or her designee.(23) Duct--A pipe or other opening, buried or above ground, containing multiple conduits.(24) Encasement--A pipe or other structure that is separate from and surrounds a utility facility and that:(A) supports the pavement structure and superimposed loads on the pavement, including construction machinery, and protects the pavement structure if the carrier pipe fails;(B) protects utility facility against accidental damage from excavation equipment; and(C) allows the repair or replacement of the utility facility without disturbing the pavement structure.(25) Engineer--A person licensed to practice engineering in the state of Texas.(26) Engineering study--An appropriate level of analysis as determined by the department, which may include a traffic impact analysis, that determines the expected impact that permitting access will have on mobility, safety, and the efficient operation of the state highway system.(27) Executive director--The chief administrative officer of the department, or that officer's designee not below the level of assistant executive director.(28) Freeway--A divided highway with frontage roads or full control of access.(29) Frontage road--A street or road auxiliary to, and located alongside, a controlled access highway or freeway that separates local traffic from high-speed through traffic and provides service to abutting property.(30) Gathering line--A line that delivers a raw utility product from various sites to a central distribution or feed line for the purposes of refining, collecting, or storing the product.(31) Hazardous material--Any gas, material, substance, or waste that, because of its quantity, concentration, or physical or chemical characteristics, is deemed by any federal, state, or local authority to pose a present or potential hazard to human health or safety or to the environment. The term includes hazardous substances, hazardous wastes, marine pollutants, elevated temperature materials, materials designated as hazardous in the Hazardous Materials Table (49 CFR §172.101), and materials that meet the defining criteria for hazard classes and divisions in 49 CFR Part 173 (49 CFR §171.8).(32) High-pressure pipeline--A pipeline that is operated, or may reasonably be expected to operate in the future, at a pressure of over 60 pounds per square inch.(33) Horizontal clearance--The areas of highway roadsides designed, constructed, and maintained to increase safety, improve traffic operation, and enhance the appearance of highways.(34) Inclement weather--Weather conditions that are hazardous to the safety of the traveling public, highway or utility workers, or the preservation of the highway.(35) Joint use agreement--A use and occupancy agreement that describes the obligations, responsibilities, rights, and privileges vested in the department and retained by the utility, and used for situations in which the utility has a compensable interest in the land occupied by its facilities and the land is to be jointly occupied and used for highway and utility purposes.(36) Low-pressure pipeline--A pipeline that is operated at a pressure not exceeding 60 pounds per square inch.(37) Mainlanes--The traveled way of a freeway or controlled access highway that carries through traffic.(38) Maintenance Division--The administrative office of the department responsible for the maintenance and operation of the state highway system.(39) Noncontrolled access highway--A highway on which owners or occupants of abutting lands or other persons have direct access to or from the mainlanes by department permit.(40) Outer separation--The area between the mainlanes of a highway for through traffic and a frontage road.(41) Pavement structure--The combination of the surface, base course, and subbase.(42) Private utility--A person, firm, corporation, or other entity engaged in a utility business other than a public utility or saltwater pipeline operator. The term includes an individual who owns a service line.(43) Public utility--A person, firm, corporation, river authority, municipality, or other political subdivision that is engaged in the business of transporting or distributing a utility product that directly or indirectly serves the public and that is authorized by state law to operate, construct, and maintain its facilities over, under, across, on, or along highways. The term includes a common carrier and a gas corporation. The term also includes providers of broadband service. This term does not include a saltwater pipeline operator whose only right to occupy state right of way is by a lease under Natural Resources Code, §91.902.(44) Right of Way Division (ROW)--The administrative office of the department responsible for the acquisition and management of the state right of way.(45) Riprap--An appurtenance placed on the exposed surfaces of soils to prevent erosion, including a cast-in-place layer of concrete or stones placed together.(46) Saltwater--Water that contains salt and other substances and that is intended to be used in the exploration for oil or gas or that is produced during the drilling or operation of an oil, gas, or other type of well.(47) Saltwater pipeline--A pipeline that carries saltwater. The term includes a pipeline that carries water and water based solutions from an oil or gas well on which hydraulic fracturing treatment has been performed to a waste disposal well.(48) Saltwater pipeline operator--A person, firm, corporation or other entity that owns, installs, manages, operates, leases, or controls a saltwater pipeline that is not a public utility.(49) Service line--A utility facility that conveys electricity, gas, water, or telecommunication services from a main or conduit located in the right of way to a meter or other measuring device that services a customer or to the outside wall of a structure, whichever is applicable and nearer the right of way.(50) Temporary Saltwater Pipeline--An above-ground saltwater pipeline that satisfies the requirements of §21.57 of this subchapter.(51) TMUTCD--The most recent edition of Texas Manual on Uniform Traffic Control Devices for Streets and Highways.(52) Traffic impact analysis--A traffic engineering study that determines the potential current and future traffic impacts of a proposed traffic generator and that is signed, sealed, and dated by an engineer licensed to practice in the state of Texas.(53) Transmission line--That part of a utility system connecting a main energy or material source with a distribution system.(54) Use and occupancy agreement--The written document, whether in the form of an agreement, acknowledgment, notice, or request, by which the department approves the use and occupancy of highway right of way by utility facilities.(55) Utility --Any entity owning a utility facility.(56) Utility appurtenances--Any attachments or integral parts of a utility facility, including fire hydrants, valves, communication controller boxes and pedestals, electric boxes, and gas regulators.(57) Utility facilities--All utility lines, pipelines, saltwater pipelines, conduits, cables, and their appurtenances within the highway right of way except those for highway-oriented needs, including underground, surface, or overhead facilities either singularly or in combination, which may be transmission, distribution, service, or gathering lines.(58) Utility product--The product, such as water, saltwater, steam, electricity, gas, oil, crude resources, communications, cable television, or waste disposal services, or broadband service, carried by the utility facility.(59) Utility strip--The area of land established within a control of access highway, located longitudinally within the area between the outer traveled way and the right of way line, for the nonexclusive use, occupancy, and access by one or more authorized utilities.(60) Utility structure--A pole, bridge, tower, or other aboveground structure on which a conduit, line, pipeline, or other utility facility is attached.</content><note type="source"><p>Source Note: The provisions of this §21.31 adopted to be effective March 17, 2005, 30 TexReg 1455; amended to be effective December 11, 2008, 33 TexReg 10064; amended to be effective December 10, 2009, 34 TexReg 8795; amended to be effective October 12, 2014, 39 TexReg 7946; amended to be effective April 20, 2016, 41 TexReg 2777; amended to be effective October 12, 2022, 47 TexReg 6617.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scC/s21.32"><num value="21.32">§21.32</num><heading>Purpose</heading><content>This subchapter prescribes the minimum requirements for the accommodation, method, materials, and location for the installation, adjustment, and maintenance of utility facilities within the right of way of the state highway system. These requirements are provided in the interests of the safety, protection, use, and future development of highways with due consideration given to the public service afforded by adequate and economical utility facilities.</content><note type="source"><p>Source Note: The provisions of this §21.32 adopted to be effective March 17, 2005, 30 TexReg 1455; amended to be effective October 12, 2014, 39 TexReg 7946.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scC/s21.33"><num value="21.33">§21.33</num><heading>Applicability</heading><content>(a) For highways under department jurisdiction, the provisions of this subchapter concerning utility accommodation apply to:(1) new utility facility installations;(2) additions to or maintenance of existing utility facility installations;(3) adjustments or relocations of utility facilities; and(4) existing utility facilities retained within the right of way.(b) The provisions of this subchapter concerning utility accommodation do not apply to utility facilities located within the rights of way of completed highways for which agreements with the department were entered into before the effective date of this subchapter.(c) This subchapter applies to utility facilities not specifically mentioned in accordance with the nature of the utility facility. All pipelines carrying corrosive, caustic, flammable, explosive, or otherwise hazardous materials and saltwater pipelines, other than a temporary saltwater pipeline approved under §21.57 of this subchapter, shall conform to the provisions for high-pressure pipelines.(d) The district engineer may prescribe special district supplemental accommodation requirements on a specific installation or adjustment based on the specific soil, terrain, climate, vegetation, traffic characteristics, type of utility facility, or other factors unique to the area. If the district supplemental accommodation requirements are more strict than the minimum requirements of this subchapter, the supplemental accommodation requirements must be detailed in writing.</content><note type="source"><p>Source Note: The provisions of this §21.33 adopted to be effective March 17, 2005, 30 TexReg 1455; amended to be effective December 10, 2009, 34 TexReg 8795; amended to be effective October 12, 2014, 39 TexReg 7946; amended to be effective April 20, 2016, 41 TexReg 2777.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scC/s21.34"><num value="21.34">§21.34</num><heading>Scope</heading><content>This subchapter governs matters concerning accommodation, location, and methods for the installation, adjustment, relocation, and maintenance of utility facilities on state highway rights of way, but does not alter current authority for their installation nor determination of financial responsibilities for placement or adjustment. To the extent that a federal or state law, code, regulation, rule, or order prescribes a higher degree of protection for highway facilities or the traveling public than the protection provided by this subchapter, the federal or state provision controls.</content><note type="source"><p>Source Note: The provisions of this §21.34 adopted to be effective March 17, 2005, 30 TexReg 1455; amended to be effective December 10, 2009, 34 TexReg 8795; amended to be effective October 12, 2014, 39 TexReg 7946.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scC/s21.35"><num value="21.35">§21.35</num><heading>Exceptions</heading><content>(a) Exceptions to any provisions contained in these sections and relating to utility accommodation shall be justified and recommended for approval by the district engineer and authorized by:(1) the Right of Way Division Director using the form entitled "Certification for Utility Accommodation" for all utility facilities occupying the right of way under a utility joint use agreement; or(2) the Maintenance Division Director, when a use and occupancy agreement, other than a utility joint use agreement, is received for a proposed utility facility installation on an existing highway.(b) Requests for exceptions will be considered only where the utility shows that extreme hardship or unusual conditions provide justification and where alternate measures can be prescribed in keeping with the intent of this subchapter. All requests for exceptions must be fully documented with design data and other pertinent information.(c) For each request for exception the utility must clearly demonstrate that:(1) the accommodation will not adversely affect the safety, design, construction, operation, maintenance, or stability of the highway;(2) the accommodation will not be constructed or serviced by direct access from the mainlanes of a freeway or connecting ramps;(3) the accommodation will not interfere with or impair the present use or future expansion of the highway; and(4) any alternative location would be contrary to the public interest, demonstrated by an evaluation of the direct and indirect environmental and economic effects that would result from the disapproval of the proposed use of the right of way.</content><note type="source"><p>Source Note: The provisions of this §21.35 adopted to be effective March 17, 2005, 30 TexReg 1455; amended to be effective December 11, 2008, 33 TexReg 10064; amended to be effective October 12, 2014, 39 TexReg 7946.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scC/s21.36"><num value="21.36">§21.36</num><heading>Rights of Utilities</heading><content>(a) Under state law, public utilities have a right to operate, construct, and maintain their facilities over, under, across, on, or along highways, subject to highway purposes. This includes entities authorized by law to transport or distribute natural gas, water, electric power, telephone, or cable television and those common carriers authorized to construct and operate petroleum product and saltwater pipelines.(b) A private utility may place a utility facility over, under, or across a highway, subject to highway purposes, but it is not permitted to place a utility facility longitudinally on a highway right of way.(c) A saltwater pipeline operator may place a saltwater pipeline facility over, under, or across a highway, subject to highway purposes. A saltwater pipeline operator may, by lease only, be permitted to place a saltwater pipeline facility longitudinally within a highway right of way.(d) If an entity requests the installation of a new utility facility or the adjustment or relocation of an existing utility facility longitudinally within a highway right of way and the entity's legal authority to install, adjust, or relocate its facility longitudinally within the highway right of way is not readily evident, the department may require that the entity provide:(1) a written certification that it is an entity authorized by state law to operate, construct, and maintain its utility facilities over, under, across, on, or along state highways; and(2) documentation that substantiates that the entity filed its status with the applicable state regulatory commission or agency and its facilities are subject to public safety regulation.</content><note type="source"><p>Source Note: The provisions of this §21.36 adopted to be effective March 17, 2005, 30 TexReg 1455; amended to be effective December 10, 2009, 34 TexReg 8795; amended to be effective October 12, 2014, 39 TexReg 7946.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scC/s21.37"><num value="21.37">§21.37</num><heading>Design</heading><content>(a) General. Utility facility design shall be accomplished in a manner and to a standard acceptable to the department. The location and manner in which a utility facility installation, adjustment, or relocation work will be performed within the right of way must be reviewed and approved by the department. Measures shall be taken to preserve the safety and free flow of traffic, structural integrity of the highway or highway structure, ease of highway maintenance, appearance of the highway, and the integrity of the utility facility. Utility facility installations shall conform with:(1) the requirements of this subchapter;(2) the National Electrical Safety Code rules for the installation and maintenance of electric supply and communication lines;(3) 23 CFR Part 645, Utilities;(4) 49 CFR Part 192, Transportation of Natural and Other Gas by Pipeline: Minimum Federal Safety Standards;(5) 49 CFR Part 194, Response Plans for Onshore Pipelines;(6) 49 CFR Part 195, Transportation of Hazardous Liquids by Pipeline;(7) 49 CFR Part 196, Protection of Underground Pipelines from Excavation Activity;(8) the latest American Society for Testing and Materials (ASTM) specifications;(9) the latest edition of the Texas Manual on Uniform Traffic Control Devices;(10) 30 TAC Chapter 217, Design Criteria for Domestic Wastewater Systems;(11) 30 TAC §§290.38 - 290.47 (relating to Rules and Regulations for Public Water Systems);(12) applicable state and federal environmental regulations, including storm water pollution prevention, endangered species, and wetlands;(13) applicable Railroad Commission of Texas and Texas Commission on Environmental Quality safety regulations;(14) applicable department Traffic Control Standards;(15) department Standard Specifications for Construction, Maintenance of Highway Streets and Bridges;(16) ASCE Guideline 38-02, Standard Guidelines for the Collection and Depiction of Existing Subsurface Utility Data; and(17) Broadband Accommodation Process, found in the TxDOT Right of Way Utilities Manual, Appendix B.(b) Location.(1) Districts may have special provisions for utility facility installations based on constraints, needs, and practices in their areas.(2) Utility facilities shall be located to avoid or minimize the need for adjustment for future highway projects and improvements, to allow other utilities equal access in the right of way, and to permit access to utility facilities for their maintenance with minimum interference to highway traffic.(3) Longitudinal installations, if allowed, shall be located on uniform alignments to the right of way line to provide space for future highway construction and possible future utility facility installations.(4) New utility facilities crossing the highway shall be installed at approximately 90 degrees to the centerline of the highway.(5) The horizontal and vertical location of overhead utility facilities must conform with §21.41 of this subchapter (relating to Overhead Electric and Communication Lines), consistent with the clearances applicable to all roadside obstacles. No aboveground fixed objects will be allowed in the horizontal clearance. Underground utility facilities must conform to §21.40 of this subchapter (relating to Underground Utilities).(6) Every effort shall be made to ensure that the proposed installation is compatible with existing and approved future utility facilities.(7) A utility facility on controlled access highways or freeways shall be located to permit maintenance of the facility by access from frontage roads, nearby or adjacent roads and streets, or trails along or near the right of way line without access from the mainlanes or ramps. A utility facility may not be located longitudinally in the center median or outer separation of controlled access highways or freeways.(8) On highways with frontage roads, longitudinal utility facility installations may be located between the frontage road and the right of way line. Utility facilities may not be placed or allowed to remain in the center median, outer separation, or beneath any pavement, including shoulders.(9) If a utility facility extends across a railroad's right of way, the utility, before it may install that portion of the of the utility facility within the railroad's and department's right-of-way, must provide to the department a copy of the agreement that was executed by the railroad and that authorizes the utility to install the utility facility within the railroad's right of way.(10) The procedures and requirements of this paragraph apply if a longitudinal installation is proposed within existing access denial lines of a controlled access highway or freeway without frontage roads.(A) The public utility or saltwater pipeline operator seeking the installation shall submit to the district engineer a written request that includes for each facility proposed for installation the following detailed information:(i) the information required by §21.35 of this subchapter (relating to Exceptions);(ii) survey data as directed by the department to identify and designate the location of a utility strip, the utility strip's relationship to existing highway facilities and the right of way line, and the specific area of use, occupancy, and access for installation and maintenance of the utility facility;(iii) a plan for the utility's access to, from, and within the utility strip with clearly described procedures that preserve the safety and free flow of traffic on the controlled access highway or freeway during installation, maintenance, and emergency service or repair of the utility facility; and(iv) any additional information, including an engineering study requested by the department, that is reasonably necessary for a determination of the impact of the proposed utility facility on the safety, design, construction, operation, maintenance, and stability of the controlled access highway.(B) If the requested utility facility installation meets the conditions of §21.35 of this subchapter and the other applicable requirements of this subchapter, the department will establish a utility strip along the outer edge of the right of way by:(i) locating a utility-access denial line between the proposed utility facility installation and the mainlanes and connecting ramps; and(ii) designating the specific area of use, occupancy, and access for installation and maintenance of the requested utility facility.(C) The department may adjust the utility-access denial line of an established utility strip to accommodate additional authorized utility facilities within the utility strip.(D) The utility requesting installation of the utility facility is responsible for all costs associated with providing the information required for designation of a new or expanded utility strip. The utility shall delineate the utility-access denial line on the ground by setting readily identifiable, durable, and weatherproof permanent markers to represent or reference the corners, angle points, and points of curvature or tangency of the utility-access denial line.(E) All existing and proposed fences shall be located at the freeway right of way line.(F) Denial of access regarding property adjoining the right of way line will not be altered.(c) Plans. The plans must protect the public investment in the highway, inclusive of all its components, and maintain traffic capacity and safety for each highway user.(1) All utility facility installations must be of durable materials designed for long life expectancy and relatively free from the need for routine servicing or maintenance. In addition to the requirements of this subchapter, any existing utility facilities to remain in place must be of satisfactory design and condition in the opinion of the district.(2) Utility facility installation may not disturb existing drainage courses. In addition, soil erosion shall be held to a minimum and sediment from the construction site shall be kept away from the highway and drain inlets.(3) Utility facility installations shall be planned to minimize hazards to, and interference with, future highway projects or other utility installations.(4) Plans must include the design, proposed location, vertical elevations, and horizontal alignments of the utility facility based on survey data provided by a person registered by Texas as a registered professional land surveyor or the department's survey data, the relationship to existing highway facilities and the right of way line, and location of existing utility facilities that may be affected by the proposed utility facility.(5) A utility shall verify the department's right of way line on the ground and procure any additional surveys required by the department before installing the utility facility.(6) As-built plans or certified as-installed construction plans must include the installed location, vertical elevations, and horizontal alignments of the utility facility based upon the department's survey data, the relationship to existing highway facilities and the right of way line, and access procedures for maintenance of the utility facility. All as-built plans must comply with ASCE guidelines and standards. As-installed construction plans certified by a utility or its representative shall be submitted to the department for each relocation or new installation. In the alternative, if approved by the director of the Maintenance Division or Right of Way Division, a district may require a utility to deliver either as-installed construction plans that are certified by an independent party or final as-built plans that are signed and sealed by an engineer or registered professional land surveyor. In determining whether to authorize a requirement for independently certified or signed and sealed plans, the director shall consider:(A) the amount of available right of way or the proposed utility facility's proximity to department facilities and other utility facilities that may be impacted;(B) the type of utility facility; and(C) past performance of the utility in providing accurate location data and conformance with its certified as-installed construction plans.(7) If approved by the director of the Maintenance Division or the Right of Way Division, a district may require a utility to deliver plans that are signed and sealed by an engineer. In determining whether to authorize a requirement for signed and sealed plans, the director shall consider:(A) the amount of available right of way or the proposed utility facility's proximity to department facilities or other utility facilities that may be impacted;(B) the complexity of required traffic control plans;(C) the type of utility facility;(D) whether the installation or adjustment activity requires a storm water pollution prevention plan; and(E) the utility's past performance in providing accurate location data and conformance with its construction plans.(d) Tunnels and bridges.(1) Fuel tanks, including storage tanks for petroleum or compressed gases, may not be within 100 feet of a highway structure.(2) In providing a utility tunnel or utility bridge, the requirements in subparagraphs (A) - (I) of this paragraph apply.(A) Mutually hazardous transmittants, such as fuels and electric energy, shall be isolated by compartmentalizing or by auxiliary encasement of incompatible carriers.(B) The utility tunnel or utility bridge structure shall conform in design, appearance, location, bury, earthwork, and markings to the culvert and bridge practices of the department.(C) Where a pipeline on or in a utility structure is encased, the encasement shall be effectively opened or vented at each end to prevent possible build up of pressure and to detect leakage of gases or fluids.(D) Where encasement is not provided for a pipeline on or in a utility structure, additional protective measures shall be taken, such as employing a higher factor of safety in the design, construction, and testing of the pipeline than would be required for cased construction.(E) Broadband service, communication, and electric power lines shall be insulated, grounded, and carried in protective conduit or pipe from the point of exit from the ground to reentry, and the cable carried to a manhole located beyond the backwall of the structure.(F) Carrier pipe and encasement for gas, liquid petroleum, hazardous product, and water lines shall be insulated from electric power line attachments.(G) Sectionalized block valves shall be installed in lines at or near ends of utility structures, pursuant to 49 CFR §192.179, Transmission Line Valves, unless segments of the lines can be isolated by other sectionalizing devices within a distance acceptable to the department.(H) Any maintenance, servicing, or repair of the utility facilities is the responsibility of the utility.(I) The utility shall notify the district 48 hours in advance of any maintenance, servicing, or repair; however, in an emergency situation, the utility shall notify the district as soon as practicable.(3) If a utility facility exists on the utility's own easement and it would be more economical to the department to adjust the utility facility across a highway by use of a utility tunnel or bridge rather than to provide separately trenched and cased crossing, consideration should be given to provision of such a structure. Where the utility facility was placed through an approved use and occupancy agreement and the adjustment of the utility facility is the sole responsibility of the utility, the department may allow for the provision of a utility structure without cost to the department, provided the conditions outlined in subsection (a) of this section and all other pertinent requirements are met. If a structure is to serve as a joint utility/pedestrian crossing or a joint utility/sign support structure, the department will participate to the extent necessary for accommodation of pedestrians or highway signs only.(e) Joint use of utility and highway structures.(1) The attachment of utility facilities to bridges and grade separation structures is prohibited if other locations are feasible and reasonable.(2) Where other arrangements for a utility facility to span an obstruction are not feasible, the utility may submit a request to the district for attachment of the utility facility to a bridge structure through a bridge attachment agreement. Each attachment will be considered on an individual basis, and permission to attach will not be considered as establishing a precedent for granting of subsequent requests for attachment.(A) When it is impractical to carry a self-supporting communication line across a stream or other obstruction, the department may permit the attachment of the utility facility to its bridge. If approved on existing bridges, the utility facility shall be enclosed in a conduit and so located on the bridge structure as not to interfere with stream flow, traffic, or routine maintenance operations. When a request is made before construction of a bridge, if approved, suitable conduits may be provided in the structure if the utility bears the cost of all additional work and materials involved.(B) If it is the department's responsibility to provide for the adjustment of telephone lines or telephone conduits to accommodate the construction of a highway and the adjustment provides for the placement of telephone conduits in a bridge, the department will allow a reasonable number of spare telephone conduits in the structure if the spares are placed at the time of construction and the telephone company bears the cost of the spare conduits.(C) A utility may not attach a utility facility to a bridge without the written approval of the executive director.(D) Power lines carrying greater than 600 volts are prohibited on bridges.(E) When a utility is granted permission to attach a utility facility to a proposed bridge prior to construction, any additional costs associated with the design or construction to accommodate the utility facility are the responsibility of the utility.(F) A utility requesting permission to attach a utility facility to an existing bridge shall submit sufficient information to allow the department to conduct a stress analysis to determine the effect of the added load on the bridge structure. The department may require other details of the proposed attachment as they affect safety and maintenance.(G) A utility shall ensure that water and wastewater facilities attached to a bridge are not susceptible to leaks and do not damage the highway facility. The utility shall ensure that all utility facilities attached to a bridge do not adversely affect the serviceability of the bridge. As-built plans of the attached utility facility must be signed and sealed by an engineer.(f) Aesthetics. A utility shall notify the department before removing, trimming, or replacing trees, bushes, shrubbery, or any other aesthetic features. The department must approve the extent and method of removal, trimming, or replacement of trees, bushes, shrubbery, or any other aesthetic feature.(g) Design and construction responsibility.(1) The utility is responsible for the design of the installation, adjustment, or relocation of a utility facility.(2) If a state highway improvement project requires the adjustment or relocation of a communication, water, or waste water facility that is 100 percent reimbursable by the department under the requirements of Transportation Code, §203.092 or the adjustment or relocation of a facility of an electric distribution provider, such as an electric service corporation, regional electric cooperative, or municipal or joint-agency electric service provider, that is 100 percent reimbursable by the department under the requirements of Transportation Code, §203.092, the utility by agreement with the executive director may authorize the department to procure the design of an adjustment or relocation and include the resulting plan in the construction contract for the adjustment or relocation.(3) Under the agreement the department may use only an engineering consultant approved by the utility. An employee of the department may not be used to provide engineering services under the agreement.(4) The utility must approve the resulting plan for the adjustment or relocation before it may be included in the construction contract. The utility is responsible for ensuring that the design and construction meet all regulatory and environmental compliance requirements.(5) The agreement must provide for:(A) concurrent construction inspection by the utility during construction; and(B) final acceptance by the utility of the design and construction after the construction is completed.(6) During the relocation or adjustment construction work under the agreement, the utility remains liable under any certificate of service. The department is not responsible for any issue related to the design or construction of the adjustment or relocation of the utility facility after final acceptance by the utility of the adjustment or relocation.(7) After the completion of the construction work under the agreement, the utility is responsible for any ongoing maintenance, including compliance with §21.38 of this subchapter (relating to Construction and Maintenance).(8) The department will reimburse the utility for eligible expenses incurred in approving and inspecting the design documents.(9) All provisions of this subchapter and Subchapter B of this chapter (relating to Utility Adjustment, Relocation, or Removal) that apply to the design, estimates, and scope of an adjustment or relocation apply to a project carried out under an agreement entered into under this subsection.</content><note type="source"><p>Source Note: The provisions of this §21.37 adopted to be effective March 17, 2005, 30 TexReg 1455; amended to be effective December 11, 2008, 33 TexReg 10064; amended to be effective December 10, 2009, 34 TexReg 8795; amended to be effective September 15, 2010, 35 TexReg 8400; amended to be effective October 12, 2014, 39 TexReg 7946; amended to be effective October 12, 2022, 47 TexReg 6617.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scC/s21.38"><num value="21.38">§21.38</num><heading>Construction, Maintenance, and Inspection</heading><content>(a) General.(1) A utility is responsible for the construction and maintenance of its utility facility, including installation, adjustment or relocation, replacement, expansion, and repair. Construction and maintenance must conform to the requirements of §21.37 of this subchapter (relating to Design) and shall be accomplished in a manner and to a standard acceptable to the department.(2) The provisions of this section apply to all utility facility types, unless otherwise specified in §21.40 and §21.41 of this subchapter (relating to Underground Utilities and Overhead Electric and Communication Lines, respectively) and the department's Broadband Accommodation Process.(3) Utilities with utility facilities on the right of way shall preserve and protect the safety of the traveling public and the public's investment in the highway facility.(4) When an existing approved utility facility requires construction or maintenance, the utility shall notify the district 48 hours before the start of any work. In an emergency situation, the utility shall notify the district as soon as possible.(5) The utility may not cut into the pavement or concrete riprap without written permission from the department.(6) Utilities shall reimburse the department for the cost of measures taken by the department in the interest of public safety, restoration, clean-up, and repairs to the highway and right of way made necessary by the utility's failure to comply with the provisions of this subchapter.(b) Vegetation and site clean-up.(1) When utility construction or maintenance is complete, the utility shall restore the right of way to substantially the same or better condition than existed before the construction or maintenance, including reseeding or resodding to prevent erosion. After the area is brought to grade, the entire disturbed area shall be covered in accordance with the department's Standard Specifications for Construction and Maintenance of Highways Streets & Bridges.(2) To preserve and protect trees, bushes, and other aesthetic features on the right of way, the department may specify the extent and methods of tree, bush, shrubbery, or any other aesthetic feature's removal, trimming, or replacement, in conjunction with paragraph (1) of this subsection. The district engineer shall use due consideration in establishing the value of trees and other aesthetic features in the proximity of a proposed utility facility and any special district requirements justified by the value of the trees and other aesthetic features.(3) If settlement or erosion occurs due to the actions of the utility, the utility shall, at its expense, reshape, reseed, or resod the area as directed by the department. Reseeding, resodding, or repair under this section shall be completed within a reasonable period of time that is acceptable to the department, not to exceed 12 months after the day that the utility construction or maintenance was completed. The district, at its sole discretion, may extend the 12-month period if the installation project conditions warrant an extension.(4) Pruning of trees shall comply with the department's Roadside Vegetation Management Manual. When unapproved pruning or cutting occurs, the utility is responsible for the replacement of trees or for damages to existing trees and bushes.(5) Highways adjacent to utility construction sites shall be kept free from debris, construction material, and mud. At the end of every construction day, construction equipment and materials shall be removed from the horizontal clearance, placed as far from the pavement edge as possible, and properly protected.(6) The utility shall reimburse the department for all costs incurred to repair damage to the right of way that results from the actions of the utility. These costs may include restoration of and repairs to the pavement structure, drainage structures, terrain, landscaping, or fences.(7) The utility is responsible for any damages it causes to property adjacent to the department's right of way. The damages may include the cost of restoration of the property.(c) Traffic control.(1) The utility is responsible for the safety of, and shall minimize disruption to, the traveling public with proper traffic control.(2) The utility shall erect at each end of the utility's installation an informational sign, as shown in Figure §21.38(c)(2), for all work associated with a utility facility on the department's right of way. Contractor information is optional, but the sign must have the utility's contact information.Attached Graphic(3) Appropriate measures shall be taken in the interests of safety, traffic convenience, and access to adjacent property that meet the requirements of the department's Compliant Work Zone Traffic Control Device List. The utility shall place appropriate signs, markings, and barricades before beginning work and shall maintain them to warn motorists and pedestrians properly. All traffic control devices must conform to the TMUTCD, the National Cooperative Highway Research Project Report 350, and the AASHTO Manual for Assessing Safety Hardware.(4) All utility pits opened within the horizontal clearance shall, in compliance with National Cooperative Highway Research Project Report 350, be properly protected with concrete traffic barriers, metal beam guard fencing, appropriate end treatments, or other appropriate warning devices.(d) Work restrictions.(1) The department reserves the right to halt construction or maintenance during hazardous situations, such as inclement weather, peak traffic hours, special events, or holidays, or for non-compliance with a use and occupancy agreement. Requests for emergency maintenance must be directed to the appropriate district office.(2) If the department determines that the facility was not constructed or maintained in the location or in the manner shown on the approved construction plans, the department may require the utility to take appropriate corrective action as determined by the department.(e) Utility work included in a highway construction contract.(1) If a state highway improvement project requires the adjustment or relocation of a utility facility, the utility by agreement with the department may authorize the department to include the adjustment or relocation of the utility facility in the highway construction contract. The department may enter into an agreement under this subsection only if the district engineer determines that:(A) including the adjustment or relocation of the utility facility in the construction contract is necessary to meet the construction sequencing of the state highway improvement project or will expedite the project;(B) the adjustment or relocation of the utility facility by the department's contractor can be accomplished in conformity with all applicable local, state, and federal regulations for the installation of the particular utility facility; and(C) the adjustment or relocation of the utility facility by the department's contractor will not involve an unreasonably high risk of:(i) danger to the traveling public, highway, or construction workers due to the presence of hazardous materials, high pressure pipelines, or other potentially dangerous utility products; or(ii) prolonged interruption of the delivery of a utility product that is essential to public health and safety.(2) The utility must approve the plans, specifications, and cost estimate for the adjustment or relocation of the utility facility before it may be included in the construction contract. The utility is responsible for ensuring that the design and construction of the utility facility meet all regulatory and environmental compliance requirements.(3) If the adjustment or relocation of the utility facility included in the construction contract is not 100 percent reimbursable by the department under the requirements of Transportation Code, §203.092, the utility is responsible for advancing or otherwise paying to the department the utility's prorata share under state law of the funds necessary for construction work related to the adjustment or relocation.(4) An agreement under this subsection must provide:(A) the estimated cost of the construction work related to the adjustment or relocation, including the cost of any betterment, to be performed by the department's contractor, and the utility's prorata share of the cost based on eligibility for department cost participation under Transportation Code, §203.092;(B) for payment to the department of the utility's prorata share, if any, of the estimated cost under subparagraph (A) of this paragraph at least 45 days before the date set for the receipt and opening of bids for the highway construction contract;(C) a description of the construction work related to the adjustment or relocation, including any betterment, that is to be performed by the utility at no cost to the department;(D) for concurrent construction inspection by the utility during construction;(E) that the utility is responsible for physically connecting the installed utility facility to its existing utility facilities to make the installed facility operational and for performing any tests required to assure compliance with all applicable safety standards and regulations;(F) for final acceptance by the utility of the adjustment or relocation after the construction work is completed; and(G) any other provisions that the district engineer considers to be necessary or desirable.(5) When used in this subsection, "betterment" means any upgrading of the utility facility being adjusted or relocated that is not attributable to the highway construction project nor required in order to comply with any other law, code, or ordinance, and is made solely for the benefit and at the election of the utility.(6) During the adjustment or relocation of a utility facility under an agreement under this subsection, the utility remains liable under any certificate of service. The department is not responsible for any issue related to the design or construction of the adjustment or relocation of the utility facility after final acceptance by the utility of the utility facility.(7) After completion of the construction work under an agreement under this subsection, the utility is responsible for any ongoing maintenance of the utility facility in compliance with this section.(8) If the adjustment or relocation of the utility facility is reimbursable by the department under the requirements of Transportation Code, §203.092, the department will reimburse the utility for eligible expenses incurred in approving and inspecting the construction work.(9) All provisions of this subchapter and Subchapter B of this chapter (relating to Utility Adjustment, Relocation, or Removal) that apply to the design, estimates, and scope of an adjustment or relocation apply to a project carried out under an agreement entered into under this subsection.</content><note type="source"><p>Source Note: The provisions of this §21.38 adopted to be effective March 17, 2005, 30 TexReg 1455; amended to be effective December 11, 2008, 33 TexReg 10064; amended to be effective November 17, 2011, 36 TexReg 7679; amended to be effective October 12, 2014, 39 TexReg 7946; amended to be effective October 12, 2022, 47 TexReg 6617.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scC/s21.39"><num value="21.39">§21.39</num><heading>Ownership, Function, Abandonment, and Idling of Facilities</heading><content>(a) Change of ownership. If a utility sells, assigns, or conveys its utility facility to another company, the new owner must, within a reasonable period of time, notify the department of the sale in writing and:(1) provide the name, address, and phone number of the new owner and a person to be contacted on matters concerning the utility facility;(2) acknowledge whether the new owner is a public utility, common carrier, or other entity authorized by state law to operate, construct, and maintain its lines over, under, across, on, or along state highways as specified in §21.36(a) of this subchapter (relating to Rights of Utilities); and(3) update all call signs and markers.(b) Saltwater pipeline facility change of ownership. Notwithstanding subsection (a) of this section, if the utility facility is a saltwater pipeline facility located within the state's right of way by lease, the saltwater pipeline operator shall obtain written approval from the department before ownership of the saltwater pipeline facility may be transferred.(c) Change of function. If a utility wishes to materially change the character, use, or function of an approved utility facility and that new character, use, or function would result in the application of more stringent requirements under the provisions of this subchapter than are applicable to the approved utility facility, the utility must submit to the department a written request for a new use and occupancy agreement and otherwise comply with the requirements contained in this subchapter concerning utility accommodation.(d) Abandonment or idling of facility.(1) Notice. If a utility abandons or idles a utility facility, it must, within a reasonable period of time, notify the department of that status in writing and in the case of abandonment, indicate whether the utility facility will be removed or abandoned in place.(2) Abandonment in place.(A) A utility that wishes to abandon a utility facility in place must submit a written request to the district engineer for each type of facility. The request must include the following detailed information for each facility proposed for abandonment:(i) offsets from property lines and the centerline of the highway;(ii) coordinates based on the global positioning system (GPS) or a survey datum as directed by the department;(iii) the age, condition, material type, current status, quantity, and size of the utility facility;(iv) a legend explaining symbols, characters, abbreviations, scale, and other data shown on any as-built drawing or record mapping;(v) a statement certifying that the utility facility does not contain, or is not composed of, hazardous or contaminated materials; and(vi) any additional information requested by the department.(B) If the district engineer approves the abandonment in place, the utility facility owner shall continue to map, locate, and mark its abandoned utility facilities as required by this subchapter, federal regulations, or standards adopted by industry organizations, whichever is more restrictive.(C) Abandonment shall not be construed as a change in ownership of the utility facility.(3) Abandonment costs and restoration of public right of way. The utility shall be responsible for all costs associated with the maintenance or removal of its abandoned or idled utility facilities within the right of way, unless removal of the line is caused by an active highway project and adjustment is the financial responsibility of the department.(4) Voids. Significant voids beneath the right of way are prohibited. The department, at the discretion of the district engineer, may require that a utility facility be filled with cement slurry or backfilled in accordance with department standards.(5) High and low pressure pipeline abandonment. Each utility shall conduct abandonment or deactivation of pipelines within the right of way in compliance with the requirements of this section, current federal, state, or local laws or codes, or industry standards, whichever are more stringent. If the pipeline is approved for abandonment in place, the utility shall:(A) purge, cut, and cap or plug the ends of all pipeline facilities at the right of way lines;(B) submit to the department a written certification that the abandonment conforms with all requirements of this section, current federal, state, or local laws or codes, or industry standards, whichever are more stringent;(C) slurry-fill the pipeline, if the department determines it is needed due to the age, condition, material type, quantity, and size of the facility; and(D) disconnect each pipeline from all sources and supplies of gas, purge each pipeline of gas and, in the case of submerged pipelines, fill each pipeline with water or other approved materials, and seal it at the ends.(6) Abandoned gas service lines. For each gas service line approved for abandonment in place, the utility shall:(A) provide a locking device or other means designed to prevent opening on each valve that is closed, to prevent the flow of gas to the customer;(B) install in the service line or in the meter assembly a mechanical device or fitting that will prevent the flow of gas;(C) physically disconnect the customer's piping from the gas supply and seal the open pipe ends;(D) insure that a combustible mixture is not present after purging; and(E) fill each abandoned vault with a suitable compacted material.(7) Record keeping for abandoned utility facilities. A record of underground utility facilities abandoned in the right of way shall be maintained in a utility's permanent files until the utility facility is completely removed from the ground, and shall be provided to the department promptly upon request. This record must include:(A) offsets from property lines and the centerline of the right of way;(B) coordinates derived from the global positioning system being used by the department or a survey datum as directed by the department;(C) the type, quantity, and size of the equipment;(D) a legend explaining symbols, characters, abbreviations, scale, and other data shown on map;(E) the location of the abandoned facilities; and(F) any additional information requested by the department.</content><note type="source"><p>Source Note: The provisions of this §21.39 adopted to be effective March 17, 2005, 30 TexReg 1455; amended to be effective December 11, 2008, 33 TexReg 10064; amended to be effective October 12, 2014, 39 TexReg 7946.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scC/s21.40"><num value="21.40">§21.40</num><heading>Underground Utilities</heading><content>(a) General.(1) Encasement. Attached Graphic(A) Underground utility facilities crossing the highway shall be encased as shown in Figure §21.40(a)(1). The encasement must be a single structure with no open seams. If used, polyvinyl chloride (PVC) and high-density polyethylene (HDPE) pipe shall be glued with an appropriate adhesive, bonded, or mechanically fastened. Steel pipe shall be welded or bolted. (B) The encasement may be of metallic or non-metallic material, depending on the type of utility facility. If the encasement is not schedule 40 polyvinyl chloride (PVC) pipe, high-density polyethylene (HDPE), or made of steel, the utility must demonstrate that the encasement is adequate for the expected loads and stresses. (C) The length of any encasement shall extend, as applicable, to within five feet of the right of way, two feet of a connecting longitudinal line, or five feet beyond the face of the curb, whichever is greatest. These lengths of encasement include areas under center medians and outer separations. At a district's discretion, the district may waive the encasement requirement under center medians or under outer separations that are more than 76 feet wide. At a district's discretion and after considering traffic volume, condition of highway, maintenance responsibility, and district practice, the district may waive the encasement requirement under side road entrances.(D) Unless waived by the district, an encasement is required for installation under other department structures, such as retaining walls, headwalls, and sound walls. (2) Depth.(A) Underground utility facilities shall be installed at the applicable minimum depth of cover shown in Figure §21.40(a)(2)(A) unless the district requires or authorizes a different depth under this paragraph.Attached Graphic(B) The district may require a greater depth at specific areas due to site conditions including areas such as culvert crossings, drainage areas, and future project considerations.(C) The district may require a greater depth based on distance from edge of pavement.(D) Where placements at the depths in this section are impractical or where unusual conditions exist, the department may allow installations at a lesser depth, but will require other means of protection, including encasement or the placement of a reinforced concrete slab. Reinforced concrete slabs or caps shall meet the following standards:(i) width -- five feet, or three times the diameter of the pipe, whichever is greater;(ii) thickness -- a minimum of six inches;(iii) reinforcement -- #4 bars at 12 inch centers each way or equivalent reinforcement; and(iv) cover -- no less than six inches of sand or equivalent cushion between the bottom of the slab/cap and the top of the pipe.(3) Manholes.(A) Manholes may not be installed unless necessary for installation and maintenance of underground lines. In no case shall a manhole be placed or permitted to remain in the pavement or shoulder of a highway. However, on noncontrolled access highways in urban areas, the district may, in its discretion, allow existing lines to remain in place under existing or proposed highways. In these cases, manholes may remain in place or be installed under traffic lanes of low volume highways in municipalities only if measures are taken to minimize the installations and to avoid locating them at intersections or in wheel paths.(B) To conserve space, a manhole's dimensions must be the minimum acceptable by appropriate engineering and safety standards. The only equipment that may be installed in manholes located on the right of way is equipment that is essential to the normal flow of the utility facility, such as circuit reclosers, cable splices, relays, valves, and regulators. Other equipment, such as substation equipment, large transformers, and pumps, shall be located outside the right of way.(C) Inline manholes are the only type permitted within the right of way. The width dimensions may not be larger than necessary to hold equipment involved and to meet safety standards for maintenance personnel. Outside width, the dimension of the manhole perpendicular to the highway, may not exceed ten feet, with the length to be held to a reasonable minimum. The outside diameter of the manhole chimney at the ground level may not exceed 36 inches, except that if the utility demonstrates necessity, the district may, at its discretion, allow an outside diameter of up to 52 inches. The top of the roof of the manhole must be five feet or more below ground level.(D) All manhole covers shall be installed flush with the ground or pavement structure. In order to minimize vandalism, manhole covers must weigh at least 175 pounds. Manhole rings and covers must be designed for HS-20 loading.(E) Manholes shall be straight, inline installations with a minimum overall width necessary to operate and maintain the enclosed equipment. The utility is responsible for any adjustment of the manhole rim that may be needed to meet grade changes.(4) Installation.(A) A department permit is required for all installation of utility facilities in the department's right of way.(B) If the installation of the utility facility deviates from the approved location, the district, at its sole discretion, may require the adjustment of the utility facility to the approved location.(C) Utility facilities placed beneath any existing highway shall be installed by boring or tunneling. Jacking may not be used unless approved in writing by the district. The use of explosives is prohibited. Pipe bursting or fluid/mist jetting may not be used unless approved in writing by the department. Longitudinal installation of a utility facility across driveways and intersecting roadways shall be bored. Open trench construction through intersecting roadways and driveways may not be used unless approved in writing by the district engineer.(D) To preserve and protect trees, shrubbery, and other aesthetic features within the department's right of way, the district may specify the extent and methods of tree removal, tree trimming, or the replacement of the aesthetic features. Landscape areas in the department's right of way that are associated with residences shall be bored, unless the district approves another method. The district may require boring on steep slopes where vegetation may be damaged.(E) For rural, uncurbed highway crossings, all borings shall extend beneath all travel lanes. Unless precluded by right of way limitations, the following clearances are required for rural highway crossings:(i) 30 feet from all freeway mainlanes and other high-speed (exceeding 40 mph) highways except as indicated in clauses (ii) - (iv) of this subparagraph;(ii) 16 feet for high-speed highways with current average daily traffic volumes of 750 vehicles per day or fewer;(iii) 16 feet for ramps; or(iv) ten feet for low-speed (40 mph or less) highways.(F) The reamed bore size may not exceed 40 percent of the outside diameter of the encasement, and a reamer that allows the natural wet grout to remain shall be used. Alternately, annular voids greater than one inch between the bore hole and the carrier line or encasement], if used, shall be filled with a slurry grout or other flowable fill acceptable to the department to prevent settlement of the highway facility.(G) Unless an open-trench installation is approved by the district in locations where adequate space is not available, all borings for curbed highway crossings shall extend beneath travel and parking lanes and beyond the back of curb and sidewalk, plus:(i) 30 feet from facilities with speed limits of 40 mph or greater; or(ii) five feet from highway facilities with speed limits of less than 40 mph or less.(H) Where circumstances necessitate the excavation of a bore pit or the presence of directional boring equipment closer than 30 feet from the edge of pavement, approved protective devices shall be installed for protection of the traveling public in accordance with §21.38 of this subchapter (relating to Construction and Maintenance). Bore pits shall be located and constructed in such a manner as not to interfere with the highway structure or traffic operations. Shoring shall be utilized for the protection of the highway facility, and its use and design must be approved by the district.(I) All traffic control devices, including signs, markings, or barricades used to warn motorists and pedestrians of the construction activity must conform to the TMUTCD.(J) When trenching longitudinally, backfill or stabilized sand shall be compacted to densities equal to that of the surrounding soil. Compaction must meet all requirements listed in Item 400, relating to excavation and backfill structures, of the department's publication, Standard Specification for Construction and Maintenance of Highways, Streets, and Bridges.(K) Longitudinal installations shall be in uniform alignment with the department's right of way and as near as practical to the edge of the department's right of way line. Consideration shall be given to allow safe clearance from adjacent installations.(L) An additional 12 inches of depth are required for installations within 50 feet of waterways, ditches, channels, creeks, or culverts.(M) As assigned corridors within the department's right of way are finite at particular depths, the district may require the placement of a utility facility below other facilities at necessary clearances. The district may require encasements to allow the repair or replacement of the utility facility without disturbing adjacent utility facilities.(5) Nonmetallic pipe detection. Where nonmetallic pipe is installed, whether longitudinally or at a crossing, a durable metal wire or other district-approved means of detection shall be concurrently installed.(6) Unsuitable conditions. The following conditions are generally unsuitable or undesirable for pipeline crossings and shall be avoided:(A) deep cuts;(B) locations near footings or bridges and retaining walls;(C) crossing intersections at-grade or ramp terminals;(D) locations at cross-drains where the flow of water may be obstructed;(E) locations within basins or underpasses drained by pump if the pipeline carries a liquid or liquefied gas; or(F) terrain where minimum depth of cover would be difficult to attain.(7) Clearances. Except as specified in this subchapter, there shall be a minimum of 12 inches vertical and horizontal clearance between a new utility facility and an existing utility facility, unless a greater clearance is required by the district. However, if an installation of another utility facility or highway feature cannot take place without disturbing an existing utility facility, the district may require a minimum clearance of 24 inches.(8) Drainage easements. Where it is necessary for pipelines to cross department drainage easements outside of the right of way, the depth of cover shall be as specified for each type of utility facility. In cases where soil conditions are such that erosion might occur, or where it is not feasible to obtain specified depth, it shall be the responsibility of the utility to install retards, energy dissipators, encasement, or concrete or equivalent slabs/caps over the pipe, as approved by the department. Where grades on the pipelines must be maintained, such as gravity flow sewer lines, each case will be reviewed on an individual basis. The main purpose of the department's drainage easement is to carry drainage water and the drainage may not be obstructed. The utility is responsible for obtaining any other approvals or rights required to occupy the drainage easement.(9) Existing installations in a highway or transportation project. At the district's discretion, existing longitudinal utility facilities in a highway or transportation project that otherwise meet the requirements of this subchapter may remain in place if the utility facilities:(A) can be maintained in accordance with §21.37(b)(2) of this subchapter (relating to Design); and(B) are not located under the pavement structure or shoulder of any proposed or existing highway.(10) Markers. If a high pressure pipeline crosses a highway, the utility shall place a readily identifiable, durable, and weatherproof marker over the centerline of the pipe at each right of way line. Readily identifiable, durable, and weatherproof markers shall be placed at a minimum distance of 500 feet apart or line of sight at the right of way line for pipelines installed longitudinally within the right of way. All markers shall indicate the name, address, emergency telephone number of the utility, and offset from the right of way line for longitudinal placement. For gas, petroleum, or saltwater pipelines, the pipeline product, operating pressure, and depth of pipe below grade shall also be indicated on the markers. At locations where underground utility facilities have been allowed to cross at an angle other than 90 degrees to centerline, the district may require additional markers in the medians and outer separations of the highway.(b) Gas and liquid petroleum pipelines and saltwater pipelines.(1) Low-pressure pipelines. (A) Depth of cover for crossings. Depth of cover is the depth to the top of the encasement, or the carrier pipe if encasement is not used. Where materials and other conditions justify, such as on existing pipelines remaining in place, the district may require a minimum depth of cover under the pavement structure of 12 inches or one-half the diameter of the pipe, whichever is greater.(i) For encased low-pressure gas pipelines, the minimum depth of cover is:(I) 60 inches or one-half the diameter of the pipe, whichever is greater, below the lowest point of the crossed grade; or(II) 48 inches if the pipeline is outside of the pavement structure or 60 inches under ditches (original unsilted flowline).(ii) For unencased low-pressure gas pipelines, the minimum depth of cover is:(I) 60 inches under the lowest point of the crossed grade;(II) 48 inches if the pipeline is outside of paved areas; or(III) a lesser depth than applicable under subclause (I) or (II) of this clause if the lesser depth is authorized by the district where a reinforced concrete slab is used to protect the pipeline. (B) Depth of cover for longitudinal placement. The minimum depth of cover for longitudinal installations is 48 inches.(C) Encasement. Low-pressure gas pipelines crossing the pavement shall be placed in a high-density polyethylene (HDPE) or equivalent encasement. The district may waive this encasement requirement if:(i) the pipeline is:(I) of welded steel construction; and(II) is protected from corrosion by cathodic protective measures or cold tar epoxy wrapping; and(ii) the utility signs a written agreement that the pavement will not be cut for pipeline repairs at any time in the future.(D) Vents. One or more vents shall be provided for each encasement or series of encasements. For encasements longer than 150 feet, vents shall be provided at both ends. On shorter encasements, a vent shall be located at the high end with a marker placed at the low end. Vents shall be placed at the right of way line immediately above the pipeline, situated so as not to interfere with highway maintenance or be concealed by vegetation, and may not be greater than six inches in diameter. The utility's name, address, and emergency telephone number shall be shown on each vent.(E) Aboveground appurtenances. Except for vents, pipeline markers, and gas rectifiers, aboveground utility appurtenances for gas lines are prohibited within department's right of way.(2) High-pressure pipelines and saltwater pipelines. (A) Depth of cover for crossings.(i) Depth of cover is the depth to the top of the encasement or carrier pipe if an encasement is not used. Where materials and other conditions justify, such as on existing lines remaining in place, the district may approve a minimum depth of cover under the pavement structure of 48 inches or one-half the diameter of the pipe, whichever is greater. For encased high-pressure pipeline, the minimum depth of cover is:(I) 60 inches or one-half the diameter of the pipe, whichever is greater, below the lowest point of the crossed grade unless a greater depth is required by the district; or(II) 48 inches if the pipeline is outside of the pavement structure, or 60 inches if under a ditch, below the lowest point of grade.(ii) Where a reinforced concrete slab is used to protect the pipeline, the district may authorize a reduction in the depths specified in this subparagraph. (iii) For unencased high-pressure pipelines, the minimum depth of cover is as follows: (I) 60 inches under the lowest point of the crossed grade, subject to subparagraph (D) of this paragraph; or(II) 60 inches under the lowest point of grade if the pipeline is placed outside the pavement structure or under a ditch.(B) Depth of cover for longitudinal placement. The minimum depth of cover is 48 inches.(C) Encasement. The encasement must be a vented steel pipe.(D) Unencasement.(i) Where encasement is not employed, the utility shall show that the welded steel carrier pipe will provide sufficient strength to withstand the internal design pressure and the dead and live loads of the pavement structure and traffic. Additional protective measures must include:(I) heavier wall thickness, higher factor of safety in design, or both;(II) adequate coating and wrapping;(III) cathodic protection; and(IV) the use of Barlow's formula regarding maximum allowable operating pressure and wall thickness, as specified in 49 CFR §192.105.(ii) Shallow anode bed types exceeding 48 inches in width may not be used in the department's right of way. All others must have a depth of coverage of at least 36 inches. Deep well anode beds of up to 60 inches in diameter are acceptable. Rectifier and meter loop poles shall be placed at or near the right of way line.(iii) The minimum length of the additional protection is the same as that required for an encased crossing.(iv) The district may allow existing lines under low-volume highways to remain in place without encasement or extension of encasement if they are protected by a reinforced concrete slab or equivalent protection or if they are located at a depth of five feet under the pavement structure and not less than four feet under a highway ditch.(E) Vents. Vents shall be installed at both ends of an encasement, regardless of length, with a marker on at least one end. Vents shall be placed at the right of way line immediately above the pipeline, situated so as not to interfere with highway maintenance or be concealed by vegetation. The utility's name, address, and emergency telephone number shall be shown on each vent marker.(F) Aboveground appurtenances. Except for vents, pipeline markers, and gas rectifiers, above ground appurtenances are prohibited within department's right of way.(c) Water lines.(1) Material type. All material types used for water lines shall conform to American Water Works Association, applicable local requirements, and 30 TAC §290.44(a) (relating to Water Distribution).(2) Depth of cover. The minimum depth of cover is 36 inches from the lowest point of grade for longitudinal utility facilities, and 60 inches from the lowest point of grade for all crossings.(3) Encasement. Water lines crossing under paved highways shall be placed in an encasement pipe within the department's right of way. Existing water lines that are 24 inches or greater in diameter may be allowed to remain unencased under the pavement of new low volume highways, provided that the depth and all other requirements of 30 TAC §290.44 are met.(4) Manholes. The width dimensions of manholes may not be larger than is necessary to hold equipment involved and to meet safety standards for maintenance personnel. The maximum inside diameter of the manhole chimney may not exceed 48 inches. The outside diameter of the manhole chimney at the ground level may not exceed 36 inches.(5) Aboveground appurtenances.(A) Fire hydrants and valves. When feasible, fire hydrants and blow-off valves shall be located at the right of way line. Fire hydrants may not be placed in the sidewalk or any closer than five feet from the back of the curb. Valve locations shall be placed so as not to interfere with maintenance of the highway.(B) Water meters. Individual service meters shall be placed outside of the department's right of way. Master meters for a point of service connection may be placed in a manhole with a maximum width of 48 inch inside diameter. If additional volume is required, a manhole with a neck of 60-inch depth shall be used.(d) Non-potable water control facilities.(1) Applicability. This subsection applies to agricultural irrigation facilities, water control improvement districts, municipal utility districts, flood control districts, canals, and similar non-potable water control facilities.(2) Depth of cover. The minimum depth of cover, regardless of type of pipe used, is 36 inches for longitudinal utility facilities, and 60 inches from the lowest point of grade for all crossings.(3) Encasement. All non-potable water control lines crossing under paved highways shall be encased. At the district's discretion, encasement may be omitted under center medians and outer separations that are more than 76 feet wide.(4) Location and design requirements. Longitudinal buried pipe facilities installed within the right of way must conform with §21.41(c) of this subchapter (relating to Overhead Electric and Communication Lines), consistent with the clearances applicable to all roadside obstacles. Open ditch facilities may not be installed longitudinally within the department's right of way. Aboveground appurtenances within the horizontal clearance of the highway facility are prohibited.(5) Levee/ditch travel road location. Coordination with and approval by the district is required where levee/ditch travel roads intersect the highway.(e) Sanitary sewer lines.(1) Material type. All material types used for sanitary sewer lines must conform to applicable provisions of 30 TAC Chapter 217 and applicable local requirements.(2) Depth of cover. The minimum depth of cover for gravity lines is 30 inches and not less than 18 inches below any pavement structure. The minimum depth of cover for pressurized sanitary sewer lines is 60 inches for crossings and 36 inches for longitudinal utility facilities.(3) Encasement. All crossings of paved highways within the right of way shall be encased. At the district's discretion, the district may exempt the encasement requirement under center medians and outer separations that are more than 76 feet wide.(4) Manholes. Manholes serving sewer lines up to 12 inches shall have a maximum inside diameter of 48 inches. For lines larger than 12 inches, the manhole inside diameter may be increased an equal amount, up to a maximum diameter of 60 inches. Manholes for large interceptor sewers shall be designed to keep the overall dimensions to a minimum. The outside diameter of the manhole chimney at the ground level may not exceed 36 inches.(5) Lift stations. Lift stations and pump stations for sanitary sewer lines shall be located outside of the department's right of way.(f) Electric lines Lines.(1) Depth of cover for longitudinal placement. All underground electric lines placed longitudinally within the right of way may be installed by direct bury at depths equal to or greater than 48 inches. (2) Depth of cover for crossings. The minimum depth of cover for underground electric lines is 60 inches below the lowest point of the crossed grade.(3) Encasement. Electric lines crossing the roadway shall be encased in high-density polyethylene(HDPE) or comparable material with a strength greater than or equal to ductile iron, with satisfactory joints, or materials and designs that provide equal or better protection of the integrity of the highway system and resistance to damage from corrosive elements to which they may be exposed. The lines shall be buried a minimum of 60. Encasement shall be provided as outlined in this section.(4) Installation. The utility facility shall be located as set forth in §21.37(b) of this subchapter (relating to Design).(5) Aboveground appurtenances.(A) Aboveground appurtenances installed as part of an underground electric line shall be located at or near the right of way line, and may not impede highway maintenance or operations.(B) Structures that are larger in plan view than single poles may be placed on the right of way if:(i) the installation does not hinder highway maintenance operations;(ii) the housing is placed at or near the right of way line;(iii) the installation does not reduce visibility and sight distance of the traveling public;(iv) the dimensions of the housing are minimized, particularly where the need to allow space for highway improvement or accommodation of other utility lines is apparent;(v) the outside width, length (longitudinal with respect to the right of way), and height dimensions of the aboveground portion of the housing do not exceed 36 inches, 60 inches, and 54 inches, respectively;(vi) the supporting slab does not project more than three inches above the ground line, nor extend more than 12 inches on either side of the housing structure; and(vii) the installation is compatible with adjacent land uses.(6) Manholes. Manholes serving electric lines shall conform to the requirements of this section.(g) Underground communication lines.(1) Joint duct banks. Where a department joint duct bank is available, a utility shall install a utility facility in the duct bank unless otherwise authorized by the district. (2) Depth of cover for crossings. The minimum depth of cover for communication lines is 60 inches below the lowest point of the crossed grade.(3) Depth of cover for longitudinal placement. The minimum depth of cover for the longitudinal placement of communication lines is 48 inches. If site conditions warrant, the district may allow communication lines to be installed at a depth of 42 inches.(4) Encasement. Communication lines shall be encased in accordance with Figure §21.40(g)(5) for all crossings. The external encasement must be a high-density polyethylene (HDPE) pipe with a size dimension ratio of 11 or less or an equivalent encasement. A carrier cable inside of the external encasement must have an additional internal conduit that is HDPE or equivalent. The external encasement must allow for the addition of at least one internal conduit and for the removal or replacement of internal conduits, as needed. The reamed bore size may not exceed 40 percent of the outside diameter of the external encasement, and a reamer that allows the natural wet grout to remain shall be used.(5) Installation. Longitudinal communication lines may be placed by plowing or open trench method and shall be located on uniform alignment with the right of way and as near as practical to the right of way line to provide space for possible future highway construction and for possible future utility installations.Attached Graphic(6) Multiple conduits.(A) Shared conduits. When an existing utility rents, leases, or sells conduit usage to another utility, the utilities must jointly submit a use and occupancy agreement before placement of a new line within the conduit. A department permit is required before the installation.(B) Additional conduits. No more than two additional empty conduits may be added for every full conduit line, unless otherwise approved by the district.(C) All new conduits installed in the department's right of way shall be labeled with utility name and phone number at each point of access. (7) Aboveground appurtenances.(A) Aboveground pedestals or other utility appurtenances installed as a part of an underground communication line shall be located at or near the right of way line, so as not to impede highway maintenance or operations.(B) Hand holes may be installed at or below grade within five feet of the department's right of way line but only when sufficient width is available between curbs, sidewalks, and the right of way line. Their length may not exceed six feet and width may not exceed five feet. The cover must be rated for loads appropriate to the given location. Hand holes may not be installed in a sidewalk.(C) Large equipment housings. Structures that have a diameter larger than 18 inches may be placed on the right of way if:(i) the installation does not hinder highway maintenance operations;(ii) the housing is placed at or near the right of way line;(iii) the installation does not reduce visibility and sight distance of the traveling public;(iv) the dimensions of the housing are minimized, particularly where the need to allow space for highway improvement and accommodation of other utility facilities is apparent;(v) outside width, length (longitudinal), and height dimensions of the aboveground portion of the housing do not exceed 36 inches, 60 inches, and 54 inches, respectively;(vi) the supporting slab does not project further than three inches above ground line, nor extend further than 12 inches on either side of the housing structure; and(vii) the installation is compatible with adjacent land uses.(8) Abandonment. Underground communication lines may not be abandoned in place and shall be removed when no longer in use, unless the abandonment in place is authorized by the district. Encasements may be abandoned in place at the discretion of the district.</content><note type="source"><p>Source Note: The provisions of this §21.40 adopted to be effective March 17, 2005, 30 TexReg 1455; amended to be effective December 11, 2008, 33 TexReg 10064; amended to be effective October 12, 2014, 39 TexReg 7946; amended to be effective October 12, 2022, 47 TexReg 6617.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scC/s21.41"><num value="21.41">§21.41</num><heading>Overhead Electric and Communication Lines</heading><content>(a) Type of construction. Longitudinal lines on the right of way shall be limited to single pole construction on each side of the right of way, unless otherwise authorized by the district. Where an existing or proposed utility facility is supported by "H" frames, the same type structures may be utilized for the crossing provided all other requirements of this subchapter are met.(b) Vertical clearance. The minimum vertical clearance above the highway at the largest vertical sag of the line is 22 feet for electric lines, and 18 feet for communication and cable television lines. The minimum vertical clearance for longitudinal lines on the right of way at the largest vertical sag of the line is 22 feet for electric lines, and 18 feet for communication lines. These clearances may be greater, as required by the National Electric Safety Code and governing laws.(c) Horizontal clearances. Horizontal clearances or clear zones must conform to the department's publication, Roadway Design Manual. Clear zone requirements may vary based on speed limit, functional classification of the highway, location of the highway, and average daily traffic. (d) Location.(1) Poles supporting longitudinal lines shall be located within three feet of the right of way line, except that, at the option of the department, this distance may be varied at short breaks in the right of way line. Pole and guy wire installations may not encroach on current American Disabilities Act (ADA) clearances. Poles with widths measured at the widest part of the pole base that are greater than 36 inches in diameter may not be placed within the department's right of way. For overhead crossings at intersections, bridges, or large drainage structures that require greater vertical clearances or longer spans, the pole width measured at the widest part of the pole base may not be greater than 42 inches. Guy wires placed within the right of way shall be held to a minimum and be in line with the pole line. Other locations may be allowed, but in no case shall the guy wires or poles be located closer than the minimum allowed by the department's horizontal clearance policy, as shown in subsection (c) of this section.(2) Poles may not be placed in the center median of any highway. At the department's discretion, poles may be placed in the outer separations or more than three feet inside the right of way where the right of way is greater than 300 feet and where poles can be located in accordance with the department's horizontal clearance policy, as shown in subsection (c) of this section.(3) Overhead electric and communication line crossings at bridges or grade separation structures are prohibited. Overhead lines may not be located below any bridge structure. If rerouting the line completely around the structure and approaches is not feasible, a minimum horizontal distance of 150 feet from the bridge abutment joint and a minimum vertical clearance of 30 feet above crossing the highest point of the bridge pavement and retaining walls is required to ensure adequate safety for construction and maintenance operations.(4) Overhead electric lines crossing a highway must conform with §21.37(b)(4) of this subchapter (related to Design). This requirement applies only to new utility facility crossings.(5) Overhead electric and communication lines running longitudinal to the bridge or grade separation structures must maintain a clearance of 30 feet above the highest point of the bridge pavement or any retaining wall unless there is adequate horizontal clearance, as determined by the district, between the bridge or grade separation structure and the overhead electric or communication lines. (6) When installing overhead electric and communications lines at intersections, a utility shall follow the right of way offset, if applicable, as shown in Figure §21.41(d)(6). Overhead electric or communication lines must have a minimum of 10 feet clearance from any department structure.Attached Graphic(7) Only one set of pole lines for all utilities will be permitted for longitudinal installation on each side of the right of way, unless the district, in its sole discretion, determines that one set of pole lines is impractical. Joint use of the pole lines is required, unless the district, in its sole discretion, determines that joint use of the pole lines is unsafe or impractical. (e) Markers. Electric poles and communication lines must bear, in a format acceptable to the department, readily identifiable plaques or other approved markers denoting ownership and use, at a frequency of every other pole, as equally spaced as practicable, and at every crossing. Each company connecting to a pole shall appropriately identify its use of the pole. There shall be a beginning and end marker for each user of the pole line.</content><note type="source"><p>Source Note: The provisions of this §21.41 adopted to be effective March 17, 2005, 30 TexReg 1455; amended to be effective April 20, 2016, 41 TexReg 2777; amended to be effective October 12, 2022, 47 TexReg 6617.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scC/s21.42"><num value="21.42">§21.42</num><heading>Appeal Process</heading><content>(a) A utility may file a petition of appeal to contest:(1) a supplemental accommodation requirement prescribed under §21.33 of this subchapter (relating to Applicability);(2) the application of a design, construction, or maintenance requirement under §21.37 (relating to Design), §21.38 (relating to Construction and Maintenance), §21.40 (relating to Underground Utilities), and §21.41 (relating to Overhead Electric and Communication Lines) of this subchapter;(3) the denial of the utility's request for an exception under §21.35 of this subchapter (relating to Exceptions); or(4) the denial of the utility's request under this subchapter for either the installation of a new utility facility or the adjustment or relocation of an existing utility facility.(b) The petition must be filed with:(1) the director of the Right of Way Division, if the utility facility that is the subject of the appeal occupies or is proposed to occupy the right of way under a utility joint use agreement; or(2) the director of the Maintenance Division, if the utility facility that is the subject of the appeal occupies or is proposed to occupy the right of way under a use and occupancy agreement other than a utility joint use agreement.(c) The petition must:(1) be in writing;(2) completely and succinctly state the grounds for appeal and its factual basis; and(3) include sufficient factual documentation, such as drawings, surveys, or photographs, to establish the merits of the appeal.(d) The utility has the burden of demonstrating that the department incorrectly applied its utility accommodation requirements to the applicable facts.(e) The director of the division to which a petition that satisfies the requirements of this section is submitted will issue, within 45 days after the date of receipt of the petition, a written decision approving or disapproving the appeal and, on issuance, immediately send the decision to the utility. If a written decision is not issued within the 45-day period, the appeal is considered to be disapproved and the decision of disapproval is considered to be issued on the 46th day after the date of receipt of the petition.(f) To appeal a decision issued under subsection (e) of this section, the utility must submit a written petition of appeal to the executive director within 30 days after the date that the division director's decision is issued. The petition must satisfy the requirements of subsection (c) of this section. The executive director will issue, within 30 days after the date of receipt of the petition, a written decision approving or disapproving the appeal.(g) To appeal a decision of the executive director issued under subsection (f) of this section, the utility must submit to the executive director its written petition of appeal to a board of variance, before the 31st day after the date that the executive director's decision under subsection (f) of this section is received. On receipt of the petition, the procedure set out in this subsection applies.(1) The executive director will appoint a board of variance composed of at least three persons, each of whom is not below the level of department division director, office director, or district engineer and was not involved in a decision to deny the utility's request under subsections (a), (e), or (f) of this section. A majority of the members of the board constitutes a quorum.(2) The board of variance will meet and consider the appeal. Before the 10th day preceding the date of the meeting, the board will give the utility notice of the time and place of the meeting and afford the utility an opportunity to attend and present evidence regarding the appeal.(3) Before the 11th day after the date of the meeting, the board of variance will issue a final written decision approving or disapproving the appeal.</content><note type="source"><p>Source Note: The provisions of this §21.42 adopted to be effective December 10, 2009, 34 TexReg 8795.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scC/s21.52"><num value="21.52">§21.52</num><heading>Forms--General</heading><content>(a) Use and occupancy agreement forms are required for use for utility facilities installed, adjusted, relocated, or retained within highway right of way. These forms provide for a definite understanding as to the location and manner in which utilities will be installed and/or maintained and, where applicable, provide the necessary rights needed by the state to occupy the property interests held by the utility company. No term or condition of a use and occupancy agreement will be construed to grant, convey, or extinguish an interest in real property held by either the state or a utility.(b) On highway routes within the corporate limits of municipalities all utility installations are to be in accordance with this part and subject to the state's approval.(c) Other forms are also provided for conveyance of utility company property interests to the state when such interests within highway rights of way are abandoned.</content><note type="source"><p>Source Note: The provisions of this §21.52 adopted to be effective January 1, 1976; amended to be effective December 11, 2008, 33 TexReg 10064.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scC/s21.53"><num value="21.53">§21.53</num><heading>Joint Use Agreement Forms</heading><content>(a) Joint use agreement forms are to be used when a utility has a prior property interest which is being retained within the highway right of way, and:(1) when in connection with active highway projects an adjusted or relocated utility facility occupies that part of the highway right of way; or(2) when a utility facility is retained within that part of the highway right of way without adjustment unless the utility has a previously approved department joint use agreement covering the right of way limits and which includes provisions for control of access when applicable.(b) These forms shall include such terms, conditions, and utility location plans as may be prescribed by the director of the Right of Way Division to convey necessary information in order to protect and preserve the state highway system and the safety, health, and welfare of its use by the traveling public. Utility location plans shall be in accordance with the requirements contained in this subchapter concerning utility accommodation.</content><note type="source"><p>Source Note: The provisions of this §21.53 adopted to be effective January 1, 1976; amended to be effective May 29, 1989, 14 TexReg 2366; amended to be effective March 15, 2001, 26 TexReg 2055; amended to be effective December 11, 2008, 33 TexReg 10064.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scC/s21.54"><num value="21.54">§21.54</num><heading>Use and Occupancy Agreement Forms</heading><content>(a) Use and occupancy agreement forms, other than joint use agreements, are to be used:(1) for new utility installation after highway construction is completed;(2) for new utility installation placed before or during highway construction except where the utility has a compensable property interest;(3) when in connection with active highway projects an adjusted or relocated utility facility occupies part of the highway right of way; or(4) when a utility facility is retained within the highway right of way without adjustment unless the utility has a previously approved department use and occupancy agreement covering the right of way limits and which includes provisions for control of access when applicable.(b) These forms shall include such terms, conditions, and utility location plans, as may be prescribed by the director of the Maintenance Division to convey necessary information in order to protect and preserve the state highway system and the safety, health, and welfare of its use by the traveling public. Utility location plans shall be in accordance with the requirements contained in this subchapter concerning utility accommodation.(c) In addition to the requirements in subsection (b) of this section, the district engineer may prescribe special district requirements which will be justified based on the specific soil, terrain, weather, vegetation, trees, traffic characteristics, type of utility line, or other factors unique to the area.(d) The district engineer is authorized to approve all use and occupancy agreement forms, other than joint use agreements, except those on utility bridges, attachments to highway structures, or those which include exceptions as cited in §21.35 of this subchapter.</content><note type="source"><p>Source Note: The provisions of this §21.54 adopted to be effective January 1, 1976; amended to be effective May 29, 1989, 14 TexReg 2366; amended to be effective March 15, 2001, 26 TexReg 2055; amended to be effective December 11, 2008, 33 TexReg 10064.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scC/s21.55"><num value="21.55">§21.55</num><heading>Abandoned Interests</heading><content>When, due to a highway construction project, a utility is required to relocate its facility from property in which it owns a property interest, the department will acquire the utility's abandoned property interest within the new highway right of way.</content><note type="source"><p>Source Note: The provisions of this §21.55 adopted to be effective January 1, 1976; amended to be effective December 11, 2008, 33 TexReg 10064.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scC/s21.56"><num value="21.56">§21.56</num><heading>Metric Equivalents</heading><content>All English units of measurement referenced in §§21.31-21.55 of this title (relating to Utility Accommodations) may be converted to metric equivalents as shown in Appendix A.Attached Graphic</content><note type="source"><p>Source Note: The provisions of this §21.56 adopted to be effective July 9, 1996, 21 TexReg 5980; amended to be effective December 13, 1998, 23 TexReg 12474.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scC/s21.57"><num value="21.57">§21.57</num><heading>Temporary Saltwater Pipeline</heading><content>(a) A temporary saltwater pipeline may be installed on highway right of way pursuant to a lease from the department. Before a temporary saltwater pipeline may be installed, the installation must be approved by the department.(b) The outer diameter of a pipe used for a temporary saltwater pipeline may not to exceed 12 inches.(c) A temporary saltwater pipeline may not operate at a pressure of over 60 pounds per inch.(d) A temporary saltwater pipeline may not be in place on highway right of way for a period that exceeds 180 days.</content><note type="source"><p>Source Note: The provisions of this §21.57 adopted to be effective April 20, 2016, 41 TexReg 2777.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c21/scD"><num value="D">SUBCHAPTER D</num><heading>EXPENSES INCIDENTAL TO TRANSFER OF TITLE TO STATE</heading><section identifier="/us/state/tx/tac/t43/p1/c21/scD/s21.71"><num value="21.71">§21.71</num><heading>Incidental Expenses</heading><content>After the acquisition of real property and to the extent deemed fair and reasonable by the department, an owner may be reimbursed for expenses necessarily incurred for the following:(1) recording fees, transfer taxes, and similar expenses incidental to conveying such real property to the state; and(2) penalty costs for prepayment of any preexisting recorded mortgage entered into in good faith encumbering such real property.</content><note type="source"><p>Source Note: The provisions of this §21.71 adopted to be effective January 1, 1976.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c21/scE"><num value="E">SUBCHAPTER E</num><heading>PASSES</heading><section identifier="/us/state/tx/tac/t43/p1/c21/scE/s21.81"><num value="21.81">§21.81</num><heading>Passes</heading><content>Based on a detailed study of current operations of land use, the department shall determine the necessity, location, and design of all passes and cattle guards. The use of a pass across the right-of-way may be by permit, contractual agreement, or retention of pass rights in the conveyance of right-of-way to the state.(1) Interstate, primary, and secondary systems. On the interstate highway system and the primary and secondary highway systems where right-of-way is being secured pursuant to Texas Civil Statutes, Article 6673e-1, the following policies shall apply.(A) Where a landholding constitutes an operating farm, ranch or other rural area type of economic operation which a new highway location or relocation severs, or where an existing highway is to be developed into a multi-lane facility, it shall be the policy of the department to negotiate with the landowner for a pass or cattle guard with the objective of continuing, if possible, uninterrupted usage and operation of such landholding.(B) Where a property owner requests a pass to accommodate his private operations which have evolved since the construction of an existing highway, and the department determines the need for such a pass, and the structure can be constructed without interference with the safe operation of the highway, such pass may be installed provided the property owner or others will bear the entire cost of such installation.(C) When it is necessary to reconstruct or extend an existing cattle guard and/or an existing structure which serves as a pass, the department will bear the entire cost of a new or extended cattle guard and/or pass as required to permit the continued pass usage which previously existed.(D) When a structure designed and constructed for drainage purposes is of sufficient size to be used as a pass, the entire cost of the structure will be borne by the department.(E) Where a structure proposed for drainage is not large enough to serve as a pass and the abutting property owner requests that the structure be enlarged to serve as such, or requests a pass where no drainage structure is proposed and the department determines the need for such pass, the department will negotiate with the property owner.(F) Negotiations with the property owner shall be based on the following:(i) appraisals will be made to establish market value of the right-of-way parcel and damages to the remainder both with and without the proposed pass; and(ii) the estimated cost of a pass will be based upon a length, width, and height necessary to pass under or over a two-lane highway of two 12-feet lanes with centerline surface not more than eight feet above the structure, with two shoulders of 10 feet width and 2:1 embankment side slopes. Using the economic difference in damages as established by the appraisals, if such difference equals or exceeds the estimated cost of such a structure, the department will bear all of the costs of the structure, provided the landholder agrees to a reduction in compensation in the amount of damages offset by providing the pass. In those instances where the damages offset are less than the two-lane structure cost, a compensating reduction may be made in the amount of compensation due for the cost of the land to be acquired for right-of-way, or if this is insufficient, the remaining cost must be paid by others than the state.(G) On existing highways, either two-lane or multi-lane where at-grade crossings of persons, animals, vehicles, and machines are required in the normal operation of a farm, ranch, or other rural enterprise as may be necessary to the area economy, the department will evaluate the need and/or the hazards of such crossings by a safety analysis. If the necessity of a pass is determined from the safety analysis, the department will cooperate with others in determining the type and financial responsibilities associated with same.(2) Farm and ranch-to-market system. On the farm and ranch-to-market system of roads, the following policies shall apply.(A) When the location for an extension of these systems follows closely an existing county maintained road, the department will bear the entire cost of replacing, reconstructing, or extending all existing passes as made necessary by construction proposed by the department.(B) When passes are requested on proposed relocations of the department's maintained system of roads or on extensions thereof not covered by subparagraph (A) of this paragraph, the request will be granted if financing is provided as follows.(i) Drainage structures constructed entirely at department expense may be used as passes when sufficiently large to serve as such without modification.(ii) Where a drainage structure will need to be enlarged to permit its use as a pass, the entire cost of the enlargement shall be provided by parties other than the department.(iii) Where a drainage structure is not required, the entire cost of a pass shall be provided by parties other than the department.(C) Cost of adjustments. When passes are requested by the county or property owners on present alignment of the department's maintained system of roads, the entire cost of all adjustments made necessary by the pass shall be borne by parties other than the department.(D) The use of a pass across the right-of-way will be by permit or by contractual agreement with the state, or the right for such use may be provided in the right-of-way conveyance to the state, all as may comply with policy and legal requirements.(E) Passes shall not interfere with the proper design, operation, safety, and appearance of the road. In all cases, engineering judgment will dictate the location, design, and maintenance operation of such facilities.(F) If the department determines by a safety analysis that a pass is required, the department may bear all or a portion of the cost for the installation of such structure based on the merits of each individual case.</content><note type="source"><p>Source Note: The provisions of this §21.81 adopted to be effective January 1, 1976.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c21/scF"><num value="F">SUBCHAPTER F</num><heading>DISPOSAL OF REAL ESTATE INTERESTS</heading><section identifier="/us/state/tx/tac/t43/p1/c21/scF/s21.101"><num value="21.101">§21.101</num><heading>Purpose</heading><content>In accordance with Transportation Code, Chapter 202, Subchapter B, this subchapter sets forth the Texas Transportation Commission's policy and procedures for sale of real property by sealed bid, proof of ownership, and service fees relating to disposal of real property that was acquired for a highway purpose and is no longer needed for that purpose.</content><note type="source"><p>Source Note: The provisions of this §21.101 adopted to be effective December 11, 2002, 27 TexReg 11623.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scF/s21.102"><num value="21.102">§21.102</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings unless the context clearly indicates otherwise.(1) Attorney General--The Attorney General of the State of Texas.(2) Bid--A written offer in the form specified by the department to purchase real property for a specified cash amount and under terms and conditions required by the department.(3) Bid deposit--A cash amount determined by adding the proposed sale expenses including, but not limited to, the appraisal fee, advertising fee, and surveying fee, plus an amount equal to 5.0% of the appraised value.(4) Commission--The Texas Transportation Commission.(5) Department--The Texas Department of Transportation.(6) Director--The director of the right of way division of the department or the director's designee not below the level of section director.(7) District--One of the 25 geographical district offices of the department.(8) District engineer--The chief executive officer in charge of a district of the department.(9) Person--An individual, partnership, corporation, limited liability company, organization, government, governmental subdivision or agency, or any other legal entity.(10) Real property--An interest in real property that is held or controlled by the department for a highway purpose as defined by Transportation Code, §203.051 and §203.052.</content><note type="source"><p>Source Note: The provisions of this §21.102 adopted to be effective December 11, 2002, 27 TexReg 11623.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scF/s21.103"><num value="21.103">§21.103</num><heading>Proof of Real Property Ownership</heading><content>The commission will require proof of real property ownership when necessary to establish eligibility to acquire any real property under this subchapter. Proof of ownership shall be in a form and content acceptable to the department and shall be furnished by the purchaser.</content><note type="source"><p>Source Note: The provisions of this §21.103 adopted to be effective December 11, 2002, 27 TexReg 11623.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scF/s21.104"><num value="21.104">§21.104</num><heading>Sale of Real Property by Sealed Bid</heading><content>(a) Purpose. The department may sell real property under this subchapter by sealed bid. This section applies only to the sale of real property to the general public and not to sales excepted by law from the sealed bid requirements, such as the disposal of real property by exchange or by sale to a governmental entity with power of eminent domain for a proper public purpose, or the disposal of highway right of way by sale to the abutting landowner.(b) Method for selling real property by sealed bid.(1) Recommendation for sale. A recommendation for the sale by sealed bid of real property and improvements, if any, will be submitted by the district engineer to the director, together with a statement that the property is no longer needed for highway purposes.(2) Eligibility to bid. Any person, other than a department employee, may submit a bid for the purchase of real property. The department has the right to reject all bids.(3) Notice of sale. Notice of the sale will be published in a newspaper of general circulation in the county where the real property is located. The notice will be published once a week for three consecutive weeks, with the final publication occurring not later than the 20th day before the date of the bid opening.(4) Submittal of bid. Bids must be received by the district engineer at the district headquarters on or before the hour and date published in the notice of sale. Bids must be on a form furnished by the department and in compliance with printed terms and conditions as stated on the bid form.(5) Opening of bid. The bids will be opened by the district engineer or the district engineer's designee at the location and time specified in the notice of sale and on the bid form. In order to be considered by the department, the bid form must be complete. Any bid form that is incomplete or has been altered in any way, by addition or deletion of material, will be automatically rejected.(6) Bid deposit.(A) Each bidder must furnish a bid deposit in the amount specified by the notice of sale, made payable to the department, and in the form of a cashier's check or money order drawn by or on a state or national bank, savings and loan association, or a state or federally chartered credit union. The department will not accept as a bid deposit personal checks or certified checks, or cashier's checks or money orders more than 90 days old.(B) If the bid deposit is accepted by the commission, the bid deposit will be applied to the purchase price and expenses of the sale. The bid deposits of unsuccessful bidders will be returned within a reasonable time after the date of the bid opening. If for any reason the successful bidder fails to pay the balance of the purchase price together with the expenses in the form of cashier's check, money order, or electronic fund transfer before the 61st day after the date on which the bidder receives written notice that the state is ready to complete the sale, the bid deposit will become the property of the state, not as a penalty but as liquidated damages. If the commission rejects the bid or the department is otherwise unable to complete the sale, the state will refund the bid deposit without interest.(7) Acceptance of bid. If the director recommends to the commission that the highest conforming bid be accepted, the commission will either accept or reject the bid. If the commission accepts the bid, the commission will recommend, subject to approval by the attorney general, that the Governor of Texas execute a proper instrument conveying the state's interest in the real property.(8) Completion of transaction. After the department receives the balance of the bid amount plus all expenses of sale and a service fee as provided in §21.106 of this subchapter, the district will have the executed conveyance document recorded and forwarded to the successful bidder.</content><note type="source"><p>Source Note: The provisions of this §21.104 adopted to be effective December 11, 2002, 27 TexReg 11623.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scF/s21.105"><num value="21.105">§21.105</num><heading>Fees for Disposal of Real Estate Interests</heading><content>(a) The department will charge a service fee to cover basic costs in the disposal of real property under this subchapter.(1) For quitclaims where the state holds no record title, holds easement title only, or holds title subject to a reversionary clause, a service fee of $300 will be charged to cover the costs of handling each quitclaim.(2) For sales, a service fee will be charged in the amount of $300 or 2.0% of the sale price, whichever is more. The service fee shall not exceed $1,600.(b) Service fees shall not apply if:(1) the conveyance is being made to correct a previous error;(2) a property or property interest is being exchanged for other property interests needed for highway purposes;(3) a property or property interest is being sold, quitclaimed, or transferred to a county, city, state, or federal governmental agency; or(4) the commission determines the service fee to be unjust or unwarranted.</content><note type="source"><p>Source Note: The provisions of this §21.105 adopted to be effective December 11, 2002, 27 TexReg 11623.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scF/s21.106"><num value="21.106">§21.106</num><heading>Disposals Requiring Service Fee or Cash Consideration</heading><content>In all disposals requiring payment of a service fee or a cash consideration, a written commitment to pay the fee or consideration must be provided prior to action by the commission.</content><note type="source"><p>Source Note: The provisions of this §21.106 adopted to be effective December 11, 2002, 27 TexReg 11623.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c21/scG"><num value="G">SUBCHAPTER G</num><heading>RELOCATION ASSISTANCE AND BENEFITS</heading><section identifier="/us/state/tx/tac/t43/p1/c21/scG/s21.111"><num value="21.111">§21.111</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--The Texas Transportation Commission.(2) Department--The Texas Department of Transportation.(3) Displacee--A person lawfully present in the United States who, as a result of the acquisition of property for highway right of way purposes, is required to move from a dwelling, business, or farm.(4) District engineer--The chief administrative officer in charge of a district of the department, or the designee.(5) Executive director--The chief executive officer of the Texas Department of Transportation.(6) Relocation Review Committee--A committee whose members are appointed under §21.118 of this subchapter (relating to Relocation Review Committee).</content><note type="source"><p>Source Note: The provisions of this §21.111 adopted to be effective March 21, 2002, 27 TexReg 2071; amended to be effective September 15, 2011, 36 TexReg 5949.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scG/s21.112"><num value="21.112">§21.112</num><heading>Relocation Assistance Advisory Service</heading><content>The department will establish a relocation advisory service office that is reasonably convenient to individuals affected by right-of-way acquisitions. Relocation services will be made available at hours convenient to:(1) occupants of property to be acquired;(2) occupants of property immediately adjacent to the property acquired who will suffer substantial economic injury because of the acquisition; and(3) those who move from real property used for a dwelling or who move their personal property because of the acquisition of real property used for a business or farm.</content><note type="source"><p>Source Note: The provisions of this §21.112 adopted to be effective March 21, 2002, 27 TexReg 2071.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scG/s21.113"><num value="21.113">§21.113</num><heading>Public Information</heading><content>In order to assure that the public has adequate knowledge of the relocation assistance program, the department will discuss services and benefits at public hearings, present them in a brochure, and give them in writing to each displacee either by hand delivery or certified mail, return receipt requested.</content><note type="source"><p>Source Note: The provisions of this §21.113 adopted to be effective March 21, 2002, 27 TexReg 2071.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scG/s21.114"><num value="21.114">§21.114</num><heading>Written Notices to Displacees</heading><content>The following written notices shall be furnished to ensure that each displacee is fully informed of the benefits and services available.(1) Notice of displacement.(A) Owner-occupants. At the initiation of negotiations for the property, the department will furnish the owner with a written explanation of the eligibility requirements to receive relocation payments for the acquired business or dwelling unit. The notice to an owner-occupant of a dwelling for more than 180 days will include entitlement to payments for replacement housing, incidental expenses, any increased interest costs required for financing a replacement dwelling, and the option to rent if the owner-occupant so desires. In addition, each owner-occupant will receive a copy of the department's relocation brochure and an explanation of the relocation services available and where they may be obtained.(B) Tenants. As soon as feasible after the initiation of negotiations for the purchase of the property, each tenant shall be furnished a written statement that includes the date of initiation of negotiations for the property and an explanation of the eligibility requirements to receive applicable relocation benefits. In addition, each tenant will be provided with a copy of the department's relocation brochure and an explanation of the relocation services available and where they may be obtained.(2) Notice of replacement payments. The amount of the replacement housing payment to which a displacee is entitled will be furnished near the time the displacee will be actively looking for replacement housing. The amount of the payment shall be based on the cost of a replacement dwelling comparable to the one from which the person is being displaced and will be sufficient to preserve, as nearly as possible, the displacee's original ownership or tenancy status. If the displacee desires alternate ownership/tenancy status, an alternate payment will be computed and offered when feasible.(3) Notices to vacate. To the greatest extent practicable, no person lawfully occupying real property shall be required to move from a dwelling, or to move a business or farm operation, without at least 90 days written notice of the intended vacation date. Normally, the department will provide the displacee with two notices described as follows.(A) Ninety-day notice. This notice may be given on or after the initiation of negotiations for the property. It shall include a statement that the displacee will not be required to move from the dwelling, business, or farm before 90 days from the date of the notice. The notice shall also inform the displacee that a 30-day written notice will follow, specifying the date by which the property must be vacated.(B) Thirty-day notice. This notice shall specify the date by which the property must be vacated, and will not be given until the department has control of the property. A notice is not required if an occupant moves prior to the time the notice is given.(4) Notice of right to review. Eligible relocatees who are dissatisfied with relocation payment amounts have a right to a review by the district engineer and the department's Relocation Review Committee. All eligible relocatees shall receive a written notice informing them of this right and the procedures to follow in requesting a review.</content><note type="source"><p>Source Note: The provisions of this §21.114 adopted to be effective March 21, 2002, 27 TexReg 2071.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scG/s21.115"><num value="21.115">§21.115</num><heading>Applicability of Relocation Payments and Services</heading><content>Relocation payments and services are applicable to all individuals, families, businesses, farm operations, or nonprofit organizations who have held lawful physical occupancy and who are displaced as a result of the acquisition of their real property, in whole or in part, for highway right of way purposes, except that aliens who are not lawfully present in the United States are not eligible for relocation assistance or payments. Individuals or families who occupy living quarters on the same premises as a displaced business, farm, or nonprofit organization are separate displacees for purposes of determining entitlement to relocation payments. A displacee who relocates without using the department's relocation services may be eligible for payments if the relocation meets all eligibility requirements.</content><note type="source"><p>Source Note: The provisions of this §21.115 adopted to be effective March 21, 2002, 27 TexReg 2071.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scG/s21.116"><num value="21.116">§21.116</num><heading>Moving and Related Expense Payments</heading><content>When a person is required to relocate as a result of the acquisition of right-of-way for a highway project, the department will pay the reasonable expenses of relocating the displacee and his or her business and personal property, so long as the eligibility requirements are met. Payment will be made for one move of not more than 50 miles to a single location, unless the department determines it to be in the public interest to waive one or more of these limitations.</content><note type="source"><p>Source Note: The provisions of this §21.116 adopted to be effective March 21, 2002, 27 TexReg 2071.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scG/s21.117"><num value="21.117">§21.117</num><heading>Replacement Housing Payment</heading><content>(a) General. Individuals and families displaced from their dwellings on parcels required for a designated highway project are entitled to replacement housing payments if they relocate into decent, safe, and sanitary replacement housing and meet other eligibility requirements necessary, as determined by the department, to meet applicable legal requirements. If a displacee requests alternate ownership/tenancy status, the department will make a reasonable effort to accommodate the request. The displacee may relocate to any dwelling, but the amount actually paid will be the lesser of the actual cost or actual rent of the replacement dwelling or the housing supplement previously approved by the department. In the case of condemned property and in certain hardship cases, a preliminary replacement housing payment may be made to a qualified displacee prior to the department's acquisition of the property if the displacee signs a contract agreeing to return any overpayment when the department makes final payment for the property acquired.(b) Payments to owner-occupants for 180 days or more. A displaced owner-occupant of a dwelling may receive supplemental payments, as determined by the department, for the additional cost necessary to purchase replacement housing, to compensate for the loss of favorable financing on an existing mortgage in the financing of replacement housing, or to reimburse the displacee for certain expenses incident to the purchase of replacement housing. The displacee may receive a payment to cover the cost of renting a replacement dwelling. A displacee who is otherwise qualified for a replacement housing payment but who has previously received a rental payment may receive a revised supplement if the displacee purchases and occupies a replacement dwelling within the required one year period and files the claim within 18 months of that date. The amount of the rental payment will be deducted from the housing payment.(c) Payment to owner-occupants for less than 180 days but not less than 90 days. As determined by the department, a displaced owner of dwelling may receive a payment sufficient to make a down payment on the purchase of a replacement dwelling and to reimburse actual incidental expenses. The displacee may choose to receive a payment to rent a replacement dwelling. A displacee who is otherwise qualified for a down payment supplement but who has previously received a rental payment may receive a revised supplement if the displacee purchases and occupies a replacement dwelling within the required one year period and files the claim within 18 months of that date. The amount of the rental payment will be deducted from the down payment amount.(d) Tenant-occupants for not less than 90 days. As determined by the department, a displaced tenant may receive a payment sufficient to make a down payment on the purchase of a decent, safe, and sanitary replacement dwelling, as well as the expenses incidental to such purchase. The displacee may choose to receive a payment to rent a replacement dwelling. If the displacee elects to purchase a mobile home as replacement housing, all transportation and set up expense necessary to place the mobile home on a lot, in decent, safe, and sanitary condition, will be included as a part of the total acquisition price of the replacement housing. A change from a rental payment to a down payment will be allowed on the same basis as for an owner-occupant of less than 180 days.(e) Residential displacees not meeting length of occupancy requirements. A displacee who does not meet the length of occupancy requirement for a replacement housing payment may receive rental assistance when comparable replacement rental housing is not available for less than 30% of the displacee's gross monthly household income. Such assistance shall cover a period of 42 months.</content><note type="source"><p>Source Note: The provisions of this §21.117 adopted to be effective March 21, 2002, 27 TexReg 2071.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scG/s21.118"><num value="21.118">§21.118</num><heading>Relocation Review Committee</heading><content>(a) The executive director will appoint at least three persons as members of the Relocation Review Committee. To be eligible for appointment to or service on the committee, a person may not be:(1) below the level of department division director, office director, or district engineer; and(2) directly involved with the relocation assistance program.(b) A displacee who is dissatisfied with the department's determination of eligibility or relocation payments and services may request a review by the Relocation Review Committee. The review procedures are as follows.(1) Applications must be filed with the appropriate district office within 90 days after the displacee receives notice of relocation entitlements.(2) The district engineer will promptly and carefully review the facts and attempt to resolve the matter at the district level. The displacee will be promptly notified in writing of the results of the district engineer's review.(3) A displacee who is still dissatisfied after the first review may request that the district engineer's decision be reviewed by the department's Relocation Review Committee.(4) The district shall promptly forward the application together with all the information the district has relating to the displacee's application and the district engineer's personal recommendation to the department's Right of Way Division. The division will review the materials, make a determination on the application, and prepare a written statement as to the issues involved for the relocation assistance appeal file. If the division does not find in favor of the displacee's claim, the division will promptly forward the file to the Relocation Review Committee.(5) The Relocation Review Committee shall give each displacee a full opportunity to be heard, carefully review all facts presented, and render a prompt decision. The decision will be supported by the necessary rationale and will be documented in the parcel file.(6) The committee may discuss an application with the executive director. The executive director shall make the final ruling or may counsel with the commission if necessary.</content><note type="source"><p>Source Note: The provisions of this §21.118 adopted to be effective March 21, 2002, 27 TexReg 2071; amended to be effective September 15, 2011, 36 TexReg 5949.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c21/scH"><num value="H">SUBCHAPTER H</num><heading>CONTROL AND SCREENING OF JUNKYARDS AND AUTOMOBILE GRAVEYARDS</heading><section identifier="/us/state/tx/tac/t43/p1/c21/scH/s21.131"><num value="21.131">§21.131</num><heading>Purpose</heading><content>These sections are established to define zoned and unzoned industrial areas and to govern the location, planting, construction, and maintenance of the materials used in screening junkyards and automobile graveyards pursuant to the provisions of §9 of the Highway Beautification Act enacted by the Second Called Session of the 62nd Texas Legislature and codified as Texas Civil Statutes, Article 6674v-1, as amended.</content><note type="source"><p>Source Note: The provisions of this §21.131 adopted to be effective January 1, 1976.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scH/s21.132"><num value="21.132">§21.132</num><heading>Definitions of Zoned and Unzoned Industrial Areas</heading><content>(a) Zoned industrial areas for the purpose of controlling junkyards and automobile graveyards are areas adjacent to those highways which are officially designated as a part of the interstate system or primary system of highways located within the State of Texas which areas are within 1,000 feet of the nearest edge of the highway right-of-way provided such areas are zoned industrial under the zoning or other legal authorities of this state.(b) An unzoned industrial area shall mean an area within 1,000 feet of the nearest edge of the highway right-of-way in which the land use is not so designated or zoned under authority of law but which is within a distance of 1, 000 feet measured parallel to the highway of one or more recognized industrial activities. Other detailed characteristics of said areas: shall be located on the same side of the highway as the principal part of said activity; and not predominantly used for residential or commercial purposes. Industrial activities mean those customarily permitted only in zoned industrial areas except that none of the following shall be considered industrial activities:(1) outdoor advertising structures;(2) agricultural, forestry, ranching, grazing, farming, and similar activities including but not limited to wayside fresh produce stands;(3) transient or temporary activities;(4) activities not visible from the main traveled way;(5) activities more than 1,000 feet from the nearest edge of the right-of-way;(6) activities conducted in a building principally used as a residence;(7) railroad tracks and minor sidings except in the area of a permanent facility for loading and unloading trains;(8) junkyards as defined in §2G of the Highway Beautification Act.(c) Should one or more of said industrial activities not front on the highway, the width of the activity or activities measured parallel to the highway at the widest point of the activities and within 1,000 feet of the right-of-way will be considered to be its highway frontage. All measurements shall be from the outer edges of the regularly used buildings, parking lots, storage, or processing areas of the industrial activities and shall be along or parallel to the edge of the pavement of the highway. Measurements shall not be from the property lines of the activities unless said property lines coincide with the regularly used buildings, parking lots, storage, or processing areas.</content><note type="source"><p>Source Note: The provisions of this §21.132 adopted to be effective January 1, 1976.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scH/s21.133"><num value="21.133">§21.133</num><heading>Screening Junkyards and Automobile Graveyards</heading><content>Junkyards and automobile graveyards which are required to be screened by the owner under the provisions of the Highway Beautification Act shall be screened as hereinafter provided.(1) Before any screening is commenced, the plans and specifications therefor shall first be submitted by the owner of the junkyard to, and approved by, the district engineer of the department who serves the county in which such screening is to be placed.(2) Such screening shall be located outside the highway right-of-way in such manner as not to interfere in any way with traffic along any highway or roadway.(3) Such screening may be accomplished by means of earthen berms, plantings, fences, walls, or other durable materials provided they are effective in blocking the view of such junkyard or automobile graveyard from the motoring public traveling in a standard size automobile along the main traveled way of the controlled highway. The height and density of such screening shall be such as to effectively block such view at all times.(4) Such screening shall be so designed and landscaped as to cause the junkyard or automobile graveyard area to be inconspicuous and pleasing to the motoring public in accordance with the purposes of the Highway Beautification Act.</content><note type="source"><p>Source Note: The provisions of this §21.133 adopted to be effective January 1, 1976.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c21/scI"><num value="I">SUBCHAPTER I</num><heading>REGULATION OF SIGNS ALONG INTERSTATE AND PRIMARY HIGHWAYS</heading><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.141"><num value="21.141">§21.141</num><heading>Purpose</heading><content>This subchapter is established to regulate the orderly and effective display of commercial signs along a regulated highway within the State of Texas.</content><note type="source"><p>Source Note: The provisions of this §21.141 adopted to be effective July 1, 2011, 36 TexReg 2418; amended to be effective March 14, 2018, 43 TexReg 1446.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.142"><num value="21.142">§21.142</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commercial sign--A sign that is:(A) at any time intended to be leased, or for which payment of any type is intended to be or is received, for the display of any good, service, brand, slogan, message, product, or company, except that the term does not include a sign that is leased to a business entity and located on the same property on which the business is located; or(B) located on property owned or leased for the primary economic purpose of displaying a sign.(2) Commission--The Texas Transportation Commission.(3) Conforming sign--A sign lawfully erected and maintained in compliance with state and federal law, including rules and regulations.(4) Department--The Texas Department of Transportation.(5) Electronic sign--A commercial sign that changes its message or copy by programmable electronic or mechanical processes.(6) Erect--To construct, build, raise, assemble, place, affix, attach, embed, create, paint, draw, or in any other way bring into being or establish.(7) Freeway--A divided, controlled access highway for through traffic. The term includes a toll road.(8) Highway--The width between the boundary lines of either a publicly maintained way any part of which is open to the public for vehicular travel or roadway project for which the commission has authorized the purchase of right of way.(9) Interstate highway system--Highways designated officially by the commission and approved pursuant to 23 United States Code §103 as part of the national system of interstate and defense highways.(10) Lawfully erected--Erected before January 1, 1968 or if erected after January 1, 1968, erected in compliance with law, including rules, in effect at the time of erection or as later allowed by law.(11) License--A commercial sign license issued by the department.(12) Main-traveled way--The traveled way of a highway that carries through traffic. In the case of a divided highway, the traveled way of each of the separate roadways for traffic in opposite directions is a main-traveled way. It does not include such facilities as frontage roads, turning roadways, or parking areas.(13) National Highway System--Highways designated officially by the commission and approved pursuant to 23 United States Code §103 as part of the national highway system.(14) Nonconforming sign--A sign that was lawfully erected but does not meet all of the current requirements of state and federal law, including rules and regulations.(15) Permit--Written authorization to erect or maintain a commercial sign structure at a specified location.(16) Person--An individual, association, partnership, limited partnership, trust, corporation, political subdivision, or other legal entity.(17) Primary system--Highways designated by the commission as the federal-aid primary system and any highway on the National Highway System. The term includes all roads designated as part of the National Highway System as of 1991.(18) Regulated highway--A highway on the interstate highway system or primary system.(19) Roadway--That portion of a road used for vehicular travel, exclusive of the sidewalk, berm, or shoulder.(20) Sign--A structure, display, light, device, figure, painting, drawing, message, plaque, placard, poster, billboard, logo, or symbol that is designed, or used to advertise or inform.(21) Sign face---The part of the sign that is designed to contain information and is distinguished from other parts of the sign, including another sign face, by borders or decorative trim. The term does not include a lighting fixture, apron, or catwalk unless it displays a part of the information contents of the sign.(22) Sign structure--All of the interrelated parts and materials that are used, designed to be used, or intended to be used to support or display information contents. The term includes, at a minimum, beams, poles, braces, apron, frame, catwalk, stringers, and a sign face.(23) Visible--Capable of being seen, whether or not legible, or identified without visual aid by a person operating a motor vehicle on the highways of this state.</content><note type="source"><p>Source Note: The provisions of this §21.142 adopted to be effective July 1, 2011, 36 TexReg 2418; amended to be effective June 19, 2014, 39 TexReg 4668; amended to be effective March 14, 2018, 43 TexReg 1446; amended to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.143"><num value="21.143">§21.143</num><heading>License Required</heading><content>(a) Except as provided by this subchapter, a person may not obtain a permit for a commercial sign under this subchapter unless the person holds a valid license issued under §21.145 of this subchapter (relating to License Issuance; Amendment) or under §21.450 of this chapter (relating to License Issuance) applicable to the county in which the sign is to be erected or maintained.(b) A license is valid for one year.(c) Each license holder shall notify the department not later than the 30th day after the date of a change in the mailing address, telephone number, or email address of the license holder.</content><note type="source"><p>Source Note: The provisions of this §21.143 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.144"><num value="21.144">§21.144</num><heading>License Application</heading><content>(a) To apply for a license under this subchapter, a person must file with the department an electronic application through the department's website, www.txdot.gov. The application must include, at a minimum:(1) the complete legal name, mailing address, email address, and telephone number of the applicant; and(2) designation of each county in which the applicant's signs are to be erected or maintained.(b) The application must be accompanied by:(1) an executed commercial sign surety bond that satisfies the requirements of this section;(2) a certified power of attorney from the surety company authorizing the surety company's representative to execute the bond on the effective date of the bond;(3) the license fee prescribed by §21.148 of this subchapter (relating to License Fees); and(4) if applicable, an indication that the applicant is a military service member, military spouse, or military veteran, as those terms are defined in Occupations Code, §55.001.(c) A commercial sign surety bond must be:(1) in the amount of $2,500 for each county designated under subsection (a)(2) of this section, not to exceed a total amount of $10,000;(2) payable to the department to reimburse the department for removal costs of a sign that the person unlawfully erects or maintains; and(3) in a form prescribed by the department and executed by a surety company authorized to transact business in this state.</content><note type="source"><p>Source Note: The provisions of this §21.144 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.145"><num value="21.145">§21.145</num><heading>License Issuance; Amendment</heading><content>(a) The department will issue a license if the requirements of §21.144 of this subchapter (relating to License Application) are satisfied.(b) To amend a license, the license holder must file an amended application in a form prescribed by the department and accompanied by a valid rider to the surety bond.</content><note type="source"><p>Source Note: The provisions of this §21.145 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.146"><num value="21.146">§21.146</num><heading>License Not Transferable</heading><content>A license issued under this subchapter is not transferable.</content><note type="source"><p>Source Note: The provisions of this §21.146 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.147"><num value="21.147">§21.147</num><heading>License Renewals</heading><content>(a) To renew a license, the license holder must submit through the department's website, www.txdot.gov, not later than November 1 of the year for which the license renewal fee is due:(1) an electronic application;(2) the applicable renewal fee prescribed by §21.148 of this subchapter (relating to License Fees); and(3) proof of current surety bond coverage.(b) Not later than January 1 of the year for which the license renewal fee is due, the department will provide electronically to the license holder a notification of the amount due. The department will send quarterly reminder notices to any license holder who maintains an unpaid balance and will provide notice to the license holder of the opportunity to file a late renewal.(c) If the requirements of subsection (a) of this section are not met, a license expires on November 2of the year for which the license renewal fee is due. An expired license may be reinstated if the department receives a reinstatement request, accompanied by proof of current surety bond and the appropriate fee under §21.148 of this subchapter (relating to License Fees), not later than December 15 of the year in which the license expired.(d) An expired license that is not reinstated under this section is terminated on December 16 of the year in which the license expired and may not be renewed. Each permit that was maintained under such a license becomes void under §21.173 of this subchapter (relating to Void Permit).</content><note type="source"><p>Source Note: The provisions of this §21.147 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.148"><num value="21.148">§21.148</num><heading>License Fees</heading><content>(a) The amount of the fee for the license application under this subchapter is $125.(b) The amount of the annual license renewal fee for a calendar year is equal to:(1) $75; plus(2) the amount computed by multiplying $75 by the total number of valid permits and valid credits issued under §21.198 of this subchapter (relating to Credit for Acquired Commercial Sign) that are held under the license and issued under this subchapter or Subchapter K of this chapter.(c) To reinstate an expired license under §21.147 of this subchapter (relating to License Renewals), the license holder must pay an additional late fee of one percent of the annual renewal fee under this section in addition to the annual renewal fee.(d) A license fee is payable online by credit card or electronic check. If payment is dishonored on presentment, the license is voidable.(e) For the purposes of this section, a permit is valid if the permit has not been canceled or voided and a credit is valid if the credit has not expired or been used for a permit issued under §21.199 (relating to Permit Issued with Credit for Acquired Commercial Sign).</content><note type="source"><p>Source Note: The provisions of this §21.148 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.149"><num value="21.149">§21.149</num><heading>Notice of Removal</heading><content>To provide information for the department to accurately calculate a license holder's license renewal fee, a license holder must provide to the department, in the manner prescribed by the department, notice of the removal of any sign of the license holder not later than the 90th day after the date of the removal.</content><note type="source"><p>Source Note: The provisions of this §21.149 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.150"><num value="21.150">§21.150</num><heading>Notice of Surety Bond Cancellation</heading><content>If the department is notified by a surety company that a bond is being canceled, the department will notify the license holder by certified mail that the license holder must obtain a new bond and file it with the department not later than the 30th day after the bond cancellation date or the license will be suspended under §21.151 of this subchapter (relating to Suspension of License).</content><note type="source"><p>Source Note: The provisions of this §21.150 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.151"><num value="21.151">§21.151</num><heading>Suspension of License</heading><content>(a) The department will suspend a license if the license holder does not file a new bond under §21.150 of this subchapter (relating to Notice of Surety Bond Cancellation).(b) If the department suspends a license under this section, the department will not issue permits, or transfer existing permits, held under the license.</content><note type="source"><p>Source Note: The provisions of this §21.151 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.152"><num value="21.152">§21.152</num><heading>License Revocation</heading><content>(a) The department will revoke a license if:(1) the license holder does not file a new surety bond with the department not later than the 30th day after the date the license is suspended under §21.151 of this subchapter (relating to Suspension of License);(2) the total number of final enforcement actions initiated by the department against the license holder under §21.174 of this subchapter (relating to Cancellation of Permit), §21.190 of this subchapter (relating to Unlawful Sign), §21.191 of this subchapter (relating to Administrative Penalties for Commercial Signs), §21.425 of this subchapter (relating to Cancellation of Permit), §21.426 of this subchapter (relating to Administrative Penalties), or §21.440 of this subchapter (relating to Order of Removal), or Transportation Code, Chapter 391 or 394 that result in the cancellation of the license holder's sign permit, payment of an amended penalty by the license holder, or the removal of the license holder's sign that equals or exceeds:(A) 10 percent of the number of valid permits held by the license holder if the license holder holds 1,000 or more sign permits;(B) 20 percent of the number of valid permits held by the license holder if the license holder holds at least 500 but fewer than 1,000 sign permits;(C) 25 percent of the number of valid permits held by the license holder if the license holder holds at least 100 but fewer than 500 sign permits; or(D) 30 percent of the number of valid permits held by the license holder if the license holder holds fewer than 100 sign permits; or(3) the license holder has not complied with previous final administrative enforcement actions relating to the license or a permit held under the license.(b) The department may revoke a license under §21.189 of this subchapter (relating to Fraudulent Activity) on a finding of fraud.(c) If the department revokes a license under this section, the department will not issue permits, or transfer existing permits, held under the license.(d) The department will send notice of the revocation of a license under this section by certified mail to the address of record provided by the license holder.(e) The notice under subsection (d) of this section will clearly state:(1) the reasons for the action;(2) the effective date of the action;(3) the right of the license holder to request an administrative hearing; and(4) the procedure for requesting a hearing, including the period in which the request must be made.(f) A license holder may request an administrative hearing on the revocation of a license under this section. The request must be made in writing to the department not later than the 90th day after the date that the notice of revocation is sent.(g) If timely requested, an administrative hearing will be conducted in compliance with Chapter 1, Subchapter E of this title (relating to Procedures in Contested Case).(h) For the purposes of this section, an enforcement action is final on the later of the date on which the action is affirmed by order of the commission or on which the time for any further review of the action or proceeding related to the action expires.</content><note type="source"><p>Source Note: The provisions of this §21.152 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.153"><num value="21.153">§21.153</num><heading>Permit Required</heading><content>Except as provided by this chapter, unless a person holds a permit issued under §21.159 of this subchapter (relating to Decision on Application) or §21.192 of this subchapter (relating to Local Control of Commercial Signs), the person may not erect or maintain a commercial sign that is:(1) within 660 feet of the nearest edge of the right of way of a regulated highway if any part of the sign's information content is visible from any place on the main-traveled way of the highway; or(2) outside of the jurisdiction of a municipality and more than 660 feet from the nearest edge of the right of way of a regulated highway if any part of the commercial sign face content is visible from any place on the main-traveled way of a regulated highway.</content><note type="source"><p>Source Note: The provisions of this §21.153 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.154"><num value="21.154">§21.154</num><heading>Permit Application</heading><content>(a) To obtain a permit for a commercial sign, a license holder must file an electronic application through the department's website, www.txdot.gov. The application must include, at a minimum:(1) the complete name and address of the license holder;(2) the complete name and address of the authorized agent of the license holder if an agent is used;(3) the proposed location and description of the sign;(4) the complete legal name, email address, and telephone number of the owner of the designated site;(5) the appraisal district property tax identification number of the designated site;(6) if the sign is to be located within a municipality, the municipality's current zoning of the location where the sign is to be located; and(7) additional information the department considers necessary to determine eligibility.(b) If the sign is to be located within the extraterritorial jurisdiction of a municipality with a population greater than 1.9 million that is exercising its statutory authority to regulate commercial signs, as authorized under §21.192 of this subchapter (relating to Local Control of Commercial Signs), a certified copy of the permit issued by the municipality within the preceding twelve months must be submitted with the application.(c) The application must be accompanied by the fee prescribed by §21.171 of this subchapter (relating to Permit Application Fee).(d) To facilitate a site's location during the initial inspection process, the application must identify the sign site marking in compliance with §21.155 of this subchapter (relating to Applicant's Identification of New Commercial Sign's Proposed Site) by:(1) GPS coordinates in latitude and longitude, accurate within 50 feet; or(2) a sketch or aerial map depicting distances to nearby landmarks.(e) An application for a permit for an electronic sign must include, in addition to the other requirements of this section, contact information for a person who is available to be contacted at any time and who is able to turn off the electronic sign promptly if a malfunction occurs or is able to accommodate an emergency notification request from a local authority under §21.196 of this subchapter (relating to Requirements for an Electronic Sign).(f) If the only issue preventing the issuance of a permit is a spacing conflict with another permitted sign owned by the applicant, the department will send a notice to the applicant informing the applicant of the conflicting sign. The department will deny the application unless the applicant, before the 30th day after the date that the department sends notice under this subsection, to provide the department with proof of the removal of the conflicting sign.</content><note type="source"><p>Source Note: The provisions of this §21.154 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.155"><num value="21.155">§21.155</num><heading>Applicant's Identification of New Commercial Sign's Proposed Site</heading><content>(a) An applicant for a new permit must identify the proposed site of the sign on the parcel number indicated in the application by setting a stake or marking the concrete at the proposed location of the center pole of the sign structure.(b) At least two feet of the stake must be visible above the ground. The stake or the mark must be distinguished from any other stake or mark at the location.(c) A stake or mark on the concrete may not be moved or removed until the application is denied or if approved, until the sign has been erected.</content><note type="source"><p>Source Note: The provisions of this §21.155 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.156"><num value="21.156">§21.156</num><heading>Site Owner's Consent</heading><content>A site owner's consent to the erection and maintenance of a commercial sign and access to the site by the license holder and the department or its agent must be provided with the filing of a permit application under §21.154 of this subchapter (relating to Permit Application). The consent operates for the life of the permit.</content><note type="source"><p>Source Note: The provisions of this §21.156 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.157"><num value="21.157">§21.157</num><heading>Permit Application for Certain Preexisting Commercial Signs</heading><content>(a) If a sign is in place when the roadway on which it is located first becomes subject to Transportation Code, Chapter 391, the owner of the sign must comply with §21.166 of this subchapter (relating to Notice of Commercial Sign Becoming Subject to Regulation).(b) The department may issue a permit with a non-conforming status if the sign was lawfully erected and maintained before the roadway became subject to regulation and the conditions of the sign or location do not meet current requirements.(c) The department may not issue a permit under subsection (b) for:(1) a sign that is prohibited under §21.177 of this subchapter (relating to Prohibited Sign Locations);(2) a sign that is erected, repaired, or maintained in violation of §21.188 of this subchapter (relating to Destruction of Vegetation and Access from Right of Way Prohibited); or(3) a sign erected or maintained in violation of any other law of the state or a court order.</content><note type="source"><p>Source Note: The provisions of this §21.157 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.158"><num value="21.158">§21.158</num><heading>Permit Application Review</heading><content>(a) The department will consider permit applications in the order of the receipt of completed applications.(b) If an application is rejected because it is not complete, lacks documentation, or has incorrect information, the application loses its priority position. The department will notify the applicant of the reasons the application was rejected.(c) The department will hold an application for a site that is the same as or conflicts with the site of an application that the department previously received until the department makes a final decision on the previously received application. The department will notify the applicant that the applicant's application is being held because an application for the same or a conflicting site was previously received. For the purposes of this subsection, the date of a final decision on an application is:(1) the date the application is approved; or(2) if the application is denied:(A) the date of the final decision on an appeal under §21.167 of this subchapter (relating to Appeal Process for Application Denials); or(B) if an appeal is not filed within the period provided by §21.167 of this subchapter (relating to Appeal Process for Application Denials), on the 91st day after the date the denial notice was sent under §21.159 of this subchapter (relating to Decision on Application.(d) The department will review the permit application for completeness, correctness, and compliance with all requirements of this subchapter. Measurements will be taken at the site to determine if the sign placement meets the spacing and location requirements.</content><note type="source"><p>Source Note: The provisions of this §21.158 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.159"><num value="21.159">§21.159</num><heading>Decision on Application</heading><content>(a) The department will make a decision on a permit application not later than the 90th day after the date of receipt of the application. If the decision cannot be made within the 90-day period, the department will notify the applicant of the delay, provide the reason for the delay, and provide an estimate for when the decision will be made.(b) If an application filed under §21.154 of this subchapter (relating to Permit Application) is approved, the department will notify the applicant of the permit approval and the applicant must construct the sign at the approved location before the first anniversary of the date the notice of permit approval is sent.(c) If a permit application filed under §21.157 of this subchapter (relating to Permit Application for Certain Preexisting Commercial Signs) is approved, the department will issue a permit for the sign using the inspection performed under §21.158(d) of this subchapter (relating to Permit Application Review) to establish the sign's permitted configuration and permitted location.(d) If an application is not approved, the department will send the applicant a notice that states the reason for the denial.(e) The department's issuance of a permit for a new location does not exempt the permit holder from the application of applicable local regulations, including codes, ordinances, or other law.</content><note type="source"><p>Source Note: The provisions of this §21.159 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.160"><num value="21.160">§21.160</num><heading>Commercial Sign Location Requirements</heading><content>(a) The department will not issue a permit under this subchapter unless the sign for which application is made is located along a roadway to which Transportation Code, Chapter 391, applies and is in:(1) an unzoned commercial or industrial area; or(2) a zoned commercial or industrial area.(b) Subsection (a) of this section does not apply to a commercial sign that was lawfully in existence when it became subject to Transportation Code, Chapter 391.(c) The department may refuse to issue a permit or approve an application for an amended permit if the location of the sign is:(1) within a parcel that when the application was received had been identified for acquisition on a schematic or plan as part of a transportation project; or(2) within the prohibited spacing distance of planned facilities, as determined under §21.179 of this subchapter (relating to Location of Commercial Signs Near Certain Highway Facilities).(d) An electronic sign may be located or upgraded only along a regulated highway and within the corporate limits or extraterritorial jurisdiction of a municipality.(e) An electronic sign may not be located within 1,500 feet of another electronic sign on the same highway if facing the same direction of travel except as provided by this subsection. If the sign will be located in a political subdivision that is authorized to exercise control under §21.192 of this subchapter (relating to Local Control of Commercial Signs), the sign spacing must comply with the Texas Federal and State Agreement on Highway Beautification.</content><note type="source"><p>Source Note: The provisions of this §21.160 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.161"><num value="21.161">§21.161</num><heading>Zoned Commercial or Industrial Area</heading><content>(a) For purposes of this subchapter, a zoned commercial or industrial area is an area that:(1) is designated, through a comprehensive zoning action, for general commercial or industrial use by a political subdivision with legal authority to zone regardless of the specific label used by the zoning authority; and(2) contains at least one commercial or industrial activity, as defined in §21.163 of this subchapter (relating to Commercial or Industrial Activity), that is located:(A) within 800 feet from the center of the existing or proposed sign structure; and(B) on the same side of the highway as the existing or proposed sign.(b) An area that is zoned for mixed use, regardless of the specific label, is not considered to be a zoned commercial or industrial area if the land use of the area is predominantly residential.(c) An area is not considered to be a zoned commercial or industrial area if the area is not a part of comprehensive zoning action and is created primarily to permit or accommodate commercial sign structures.</content><note type="source"><p>Source Note: The provisions of this §21.161 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.162"><num value="21.162">§21.162</num><heading>Unzoned Commercial or Industrial Area</heading><content>(a) For purposes of this subchapter, an unzoned commercial or industrial area is an area that:(1) is centered on the location of an existing or proposed sign structure, and measured, on the same side of the highway, 800 feet in each direction along the highway right of way to a depth of 660 feet; and(2) contains two or more commercial or industrial activities, as defined by §21.163 of this subchapter (relating to Commercial or Industrial Activity); and(3) 50 percent or less of which is used for residential purposes.(b) To determine whether an area is using 50 percent or less for residential purposes under subsection (a)(3) of this section, the department will evaluate for residential use each property within the designated area that is represented to be used for residential purposes. Not more than one acre will be considered residential for each property determined to be a residence.(c) A road or street is considered to be used for residential purposes only if residential property is located on both of its sides.</content><note type="source"><p>Source Note: The provisions of this §21.162 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.163"><num value="21.163">§21.163</num><heading>Commercial or Industrial Activity</heading><content>(a) For the purposes of this subchapter, a commercial or industrial activity is an activity:(1) that is customarily allowed only in a zoned commercial or industrial area;(2) that is conducted in a permanent building or structure that:(A) is permanently affixed to real property that is located within 200 feet of the right of way of the regulated highway;(B) is visible from the traffic lanes of the main-traveled way;(C) is not predominantly used as a residence;(D) is open and conducting business at the site;(E) the activity has available to it permanent functioning utilities that are typically associated with a commercial or industrial activity; and(F) the activity has available to it directly related equipment, supplies, or services.(b) For the purposes of this section, a building or structure is permanently affixed if:(1) it has an attached septic field, is attached to a sewer system, or is considered to be real property by the county appraisal district; or(2) it has anchoring straps or cables affixed to the ground using pier footing and it has no attached wheels or towing device, such as hitch or tongue.(c) The following are not commercial or industrial activities:(1) agricultural, forestry, ranching, grazing, farming, and related activities, including the operation of a temporary wayside fresh produce stand;(2) an activity that is conducted only seasonally;(3) the operation or maintenance of:(A) a commercial sign;(B) an apartment house or residential condominium; or(C) a public or private school, other than a trade school or corporate training campus;(D) a cemetery; or(E) a place that is primarily used for worship;(4) an activity that is conducted on a railroad right of way; or(5) an activity that is created primarily or exclusively to qualify an area as a commercial or industrial area.(d) For the purposes of this section, a building is not predominantly used as a residence if more than 50 percent of the building's square footage is used solely for a business activity.</content><note type="source"><p>Source Note: The provisions of this §21.163 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.164"><num value="21.164">§21.164</num><heading>Erection and Maintenance of Commercial Sign from Private Property</heading><content>(a) The department will not issue a permit for a commercial sign unless it can be erected and maintained from private property that the license holder accesses by:(1) a permitted driveway on a state-maintained roadway;(2) a roadway that is not state maintained; or(3) documented legal access through adjoining private property.(b) If, after a permit is issued, the department finds evidence that the license holder accessed private property on which the sign is located by means other than one listed in subsection (a) of this section, the department will cancel the permit under §21.174 of this subchapter (relating to Cancellation of Permit). This section does not apply to the maintenance of a sign that is on railroad right of way and to which §21.168(a) of this subchapter (relating to Continuance of Nonconforming Signs) applies if:(1) crossing the state's right of way line is the only available access to the sign; and(2) the permit holder notifies and obtains approval of the department before accessing the sign for maintenance.</content><note type="source"><p>Source Note: The provisions of this §21.164 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.165"><num value="21.165">§21.165</num><heading>Conversion of Certain Authorization to Permit</heading><content>(a) The department will convert a commercial sign registration issued under §21.409 of this chapter (relating to Permit Application) or a permit issued under §21.407 of this chapter (relating to Existing Off-Premise Signs) to a commercial sign permit under this subchapter if a highway previously regulated under Transportation Code, Chapter 394, becomes subject to Transportation Code, Chapter 391.(b) A holder of a permit or registration converted under this section is not required to pay an original permit fee under §21.171 of this subchapter (relating to Permit Application Fee).(c) If a commercial sign owner has prepaid registration fees under §21.407 of this chapter (relating to Existing Off-Premise Signs), the outstanding balance will be credited to the sign owner's annual license renewal fee.</content><note type="source"><p>Source Note: The provisions of this §21.165 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.166"><num value="21.166">§21.166</num><heading>Notice of Commercial Sign Becoming Subject to Regulation</heading><content>(a) The department will send notice by certified mail to the owner of a commercial sign that becomes subject to Transportation Code, Chapter 391. If the owner of the sign cannot be identified from the information on file with the department, the department will give notice to the landowner of record of the land on which the sign is located.(b) If the owner of a commercial sign described by subsection (a) of this section does not hold a license issued under §21.145 of this subchapter (relating to License Issuance; Amendment) or §21.450 of this chapter (relating to License Issuance), the owner must obtain the license not later than the 90th day after the date that the department sends notice under subsection (a) of this section.(c) The sign owner must apply for a permit in compliance with §21.154 of this subchapter (relating to Permit Application) not later than the 90th day after the later of the date of receipt of the notice under subsection (a) of this section or the date of the issuance of the license in compliance with subsection (b) of this section.(d) If the sign owner fails to obtain a permit as required by the department or if the sign owner cannot be determined or located, the department will issue an unlawful sign notice under §21.190 of this subchapter (relating to Unlawful Sign).</content><note type="source"><p>Source Note: The provisions of this §21.166 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.167"><num value="21.167">§21.167</num><heading>Appeal Process for Application Denials</heading><content>(a) If a commercial sign application is denied, the applicant may file a request for an appeal with the executive director through the Right of Way Division.(b) The request for appeal must be submitted by email to the address, ROW_outdooradvertising@txdot.gov.(c) The request must:(1) contain a statement of why the denial is believed to be in error;(2) provide evidence that supports the issuance of the application approval, such as documents, drawings, surveys, or photographs; and(3) be received not later than the 90th day after the date the notice of denial is sent.(d) The executive director or the executive director's designee, who is not below the level of assistant executive director, will make a final determination on the appeal not later than the 90th day after the date that the executive director receives the request for appeal.(e) If the final determination under subsection (d) of this section is that the application is denied, the executive director or the executive director's designee will send the final determination to the applicant stating the reason for denial. If the determination is that the application be approved, the department will issue the approval in compliance with §21.159 of this subchapter (relating to Decision on Application).</content><note type="source"><p>Source Note: The provisions of this §21.167 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.168"><num value="21.168">§21.168</num><heading>Continuance of Nonconforming Commercial Signs</heading><content>(a) A sign that was lawfully erected before March 3, 1986, in a railroad, utility, or road right of way may be maintained as a nonconforming sign if all other requirements of this subchapter are met.(b) A sign that was lawfully erected at a location that later became subject to this chapter may be maintained at that location as a nonconforming sign if the sign satisfies all other requirements of this subchapter.(c) A nonconforming sign may not be:(1) removed and rebuilt for any reason, except as provided by §21.187 of this subchapter (relating to Authority to Rebuild a Commercial Sign); or(2) substantially changed, as described by §21.184 of this subchapter (relating to Repair and Maintenance of Commercial Signs).(d) If the permit for a sign is voided under §21.173 of this subchapter (relating to Void Permit) or cancelled under §21.174 of this subchapter (relating to Cancellation of Permit), the department will not issue a permit for that sign as a nonconforming sign.</content><note type="source"><p>Source Note: The provisions of this §21.168 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.169"><num value="21.169">§21.169</num><heading>Transfer of Permit</heading><content>(a) A sign permit may be transferred only with the written approval of the department.(b) At the time of the transfer, both the transferor and the transferee must hold a valid license issued under §21.145 of this subchapter (relating to License Issuance; Amendment) or §21.450 of this chapter (relating to License Issuance), except as provided by this section.(c) The permit holder must send to the department a request through the department's website, www.txdot.gov to transfer a sign permit in a manner prescribed by the department accompanied by the applicable fees prescribed by §21.171 of this subchapter (relating to Permit Application Fee).(d) After a request under subsection (c) of this section is received by the department, the department will send the request to the transferor for affirmation. If affirmed by the transferor, the department will notify the transferee to submit applicable fees required under subsection (c) of this section. After the fee is received, the department will confirm the completed permit transfer to the transferor and transferee electronically.(e) The department may approve the transfer of one or more commercial sign permits from a transferor to a transferee, with or without the signature of the transferor, if the transferee provides to the department:(1) documents showing the sign has been sold;(2) documents that indicate that the transferor is deceased or cannot be located; or(3) a court order demonstrating the new ownership of the sign permit.(f) The department will not approve the transfer if cancellation of the permit is pending or if cancellation has been abated awaiting the outcome of an administrative hearing.(g) The department will approve a transfer only if the permit is valid.(h) The documentation and fees required under this section must be submitted to the department electronically through the department's website, www.txdot.gov.</content><note type="source"><p>Source Note: The provisions of this §21.169 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.170"><num value="21.170">§21.170</num><heading>Amended Permit</heading><content>(a) To obtain an amended permit, the permit holder must submit to the department an electronic application through the department's website, www.txdot.gov. The application must provide the information required under §21.154 of this subchapter (relating to Permit Application) that is applicable to an amended permit and indicates the change from the information in the sign permit. The application must be accompanied by the permit fee prescribed by §21.171 of this subchapter (relating to Permit Application Fee).(b) The department will approve or deny an amended permit application not later than the 90th day after the date of the receipt of the amended permit application. If the decision cannot be made within the 90-day period the department will notify the applicant of the delay, provide the reason for the delay and provide an estimate of when the decision will be made.(c) The department will not approve an amended permit application to change the location of a permitted sign structure.(d) If an amended permit application is denied, the applicant may file a request for an appeal with the executive director using the process provided by §21.167 of this subchapter (relating to Appeal Process for Application Denials).(e) An amended permit is valid for one year after the date of the department's approval of the amended permit application. The date of the department's approval of the amended permit application is considered to be the amended permit's date of issuance.(f) If any of the changes approved in the amended permit application are not completed within one year after the date of the department's approval, the license holder must reapply to make those changes and must pay the prescribed fee. The provisions of this subchapter relating to a permit apply to the amended permit.</content><note type="source"><p>Source Note: The provisions of this §21.170 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.171"><num value="21.171">§21.171</num><heading>Permit Application Fee</heading><content>(a) The amounts of the fees related to permits under this subchapter are:(1) $100 for a new or amended permit application for a sign;(2) $25 for the transfer of a permit; and(3) $10 for a new or amended permit application for a nonprofit sign.(b) A fee prescribed by this section is payable by credit card or electronic check. If payment is dishonored upon presentment, the permit, amended permit, or transfer is void.</content><note type="source"><p>Source Note: The provisions of this §21.171 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.172"><num value="21.172">§21.172</num><heading>Fees for Certain Nonprofit Organizations</heading><content>(a) Notwithstanding the amounts of the fees set by §21.148 of this subchapter (relating to License Fees) and §21.171 of this subchapter (relating to Permit Application Fee), the combined license and permit application fees may not exceed $10 for a commercial sign that is erected and maintained by a nonprofit organization in a municipality or a municipality's extraterritorial jurisdiction and that only relates to that municipality or a political subdivision that is wholly or partly concurrent in that municipality.(b) The nonprofit organization is not required to file a surety bond under §21.144 of this subchapter (relating to License Application) with an application for a sign described by subsection (a) of this section.</content><note type="source"><p>Source Note: The provisions of this §21.172 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.173"><num value="21.173">§21.173</num><heading>Void Permit</heading><content>(a) A permit does not expire, but it becomes voided on the date that the license under which it is maintained is terminated under §21.147 of this subchapter (relating to License Renewals) or is revoked by the department under §21.152 of this subchapter (relating to License Revocation).(b) A permit holder may voluntarily void a permit by submitting a request in writing to the department after the sign that is subject to the permit has been removed.</content><note type="source"><p>Source Note: The provisions of this §21.173 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.174"><num value="21.174">§21.174</num><heading>Cancellation of Permit</heading><content>(a) The department will cancel a permit for a commercial sign if the sign:(1) is not maintained in compliance with this subchapter or Transportation Code, Chapter 391;(2) is destroyed, as determined under §21.185 of this subchapter (relating to Damage to or Destruction of a Commercial Sign);(3) is abandoned, as determined under §21.175 of this subchapter (relating to Abandonment of Sign);(4) is erected, maintained, or substantially changed in violation of this subchapter, including under §21.164 of this subchapter (relating to Erection and Maintenance of Commercial Sign from Private Property), §21.170 of this subchapter (relating to Amended Permit), or §21.188 of this subchapter (relating to Destruction of Vegetation and Access from Right of Way Prohibited), or in violation of Transportation Code, Chapter 391;(5) is erected by an applicant who provides false or misleading information in the permit application;(6) is located in an unzoned commercial or industrial area in which the activity supporting the area's recognition as an unzoned commercial or industrial area was created primarily or exclusively to qualify the area as an unzoned commercial or industrial area; or(7) is located in violation of §21.177 of this subchapter (relating to Prohibited Sign Locations).(b) The department will cancel a permit for a commercial sign if the sign owner fails to pay an administrative penalty imposed under §21.191 of this subchapter, (relating to Administrative Penalties for Commercial Signs).(c) The department will cancel a permit for a commercial sign immediately on the discovery that the department had erroneously issued a permit for a sign that violates Transportation Code, Chapter 391, or this subchapter.(d) On the determination that a permit should be canceled, the department will send by certified mail the notice of cancellation to the address of the record permit holder. The notice must state:(1) the reason for the cancellation;(2) the effective date of the cancellation;(3) the right of the permit holder to request an administrative hearing on the cancellation; and(4) the procedure for requesting a hearing and the period for filing the request.(e) If after sending a notice of cancellation under subsection (d) of this section the department finds additional reasons for the permit's cancellation, the department may send an amended notice of cancellation that includes those additional reasons.(f) A permit holder may request an administrative hearing on the cancellation of a permit under this section. The request must be in writing and received by the department not later than the 90th day after the date that the notice of cancellation is sent.(g) If timely requested, an administrative hearing will be conducted in compliance with Chapter 1, Subchapter E of this title (relating to Procedures in Contested Case) and the cancellation is abated until the cancellation is affirmed by order of the commission.(h) If the basis for the cancellation of a permit is cured not later than the 90th day after the date on which the permit holder was sent the notice of cancellation, the department will rescind the cancellation and penalties if:(1) the permit is for a conforming sign; or(2) the permit is for a nonconforming sign that was cancelled under §21.164(b) of this subchapter (relating to Erection and Maintenance of Commercial Sign from Private Property) or under §21.175(a)(1) of this subchapter (relating to Abandonment of Sign).(i) To show that the basis for cancellation has been cured, a permit holder must provide to the department evidence that the sign meets all requirements of this subchapter and that, if required, the license holder has obtained an amended permit for the sign under §21.170 of this subchapter (relating to Amended Permit) to make changes or to register unauthorized changes.</content><note type="source"><p>Source Note: The provisions of this §21.174 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.175"><num value="21.175">§21.175</num><heading>Abandonment of Sign</heading><content>The department may consider a sign abandoned and cancel the sign's permit if:(1) all sign faces are blank or without legible content;(2) the sign structure requires more than customary maintenance to be repaired; or(3) the sign structure is overgrown by trees or other vegetation on private property.</content><note type="source"><p>Source Note: The provisions of this §21.175 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.176"><num value="21.176">§21.176</num><heading>Commercial Sign Face Size and Positioning</heading><content>(a) A sign face may not exceed:(1) 672 square feet in area;(2) 25 feet in height; and(3) 60 feet in length.(b) For the purposes of this subsection (a) of this section, border and trim are included as part of the sign face, and the base, apron, supports, and other structural members, are excluded as part of the sign face.(c) Notwithstanding the area limitation provided by subsection (a)(1) of this section, one or more temporary protrusions may be added to a sign, provided that the sign face, including the protrusions, meets the height and length limitations of subsection (a) of this section and:(1) the area of a protrusion is located exclusively inside of the sign face border and trim; or(2) the area of the protrusion is outside of the sign face border and trim, as indicated on the sign permit, and does not exceed 10 percent of the permitted area.(d) Except as provided in subsection (g) of this section, a sign may have two or more sign faces that are placed back-to-back, side-by-side, stacked, or in "V" type construction with not more than two faces visible in each direction. Two sign faces which together exceed 700 square feet in area may not face in the same direction.(e) Two sign faces that face in the same direction may be presented as one face by covering both faces and the area between the faces with an advertisement, as long as the size limitations of subsection (a) of this section are not exceeded.(f) A sign may not have a moveable protrusion.(g) Two electronic sign faces may be located on the same sign structure if each sign face is visible only from a different direction of travel.(h) To change the sign face of an existing permitted sign to an electronic sign under this subchapter, a permit holder must obtain an amended permit under §21.170 of this subchapter (relating to Amended Permit).</content><note type="source"><p>Source Note: The provisions of this §21.176 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.177"><num value="21.177">§21.177</num><heading>Prohibited Sign Locations</heading><content>(a) A sign may not be erected or maintained on the real property of another without the property owner's permission.(b) A sign may not be erected or maintained within the right of way of a public roadway, as prohibited by Transportation Code, §393.002, or an area that would be within the right of way if the right of way boundary lines were projected across railroad right of way or utility right of way.(c) A sign may not be erected or maintained on a highway or part of a highway designated under Transportation Code, §391.252.(d) A sign may not be located in a place that creates a safety hazard, including a location that:(1) causes a driver to be unduly distracted;(2) obscures or interferes with the effectiveness of an official traffic sign, signal, or device; or(3) obscures or interferes with the driver's view of approaching, merging, or intersecting traffic.(e) A sign may not be erected or maintained in a location that violates Health and Safety Code, Chapter 752.</content><note type="source"><p>Source Note: The provisions of this §21.177 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.178"><num value="21.178">§21.178</num><heading>Location of Commercial Signs Near Public Spaces</heading><content>(a) The center of a sign may not be located within 250 feet of the nearest point of the boundary of a public space.(b) This subsection applies only if a public space boundary abuts the right of way of a regulated highway. A sign may not be located within 1,000 feet of the boundary of the public space, as measured along the right of way line from the nearest common point of the space's boundary and the right of way. This limitation applies:(1) on both sides of a highway that is on a nonfreeway primary highway; and(2) on the side of a highway on which the public space is located if the highway is on an interstate or freeway primary highway.(c) In this section, "public space" means publicly owned land that is designated by a governmental entity as a park, forest, playground, scenic area, recreation area, wildlife or waterfowl refuge, or historic site.</content><note type="source"><p>Source Note: The provisions of this §21.178 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.179"><num value="21.179">§21.179</num><heading>Location of Commercial Signs Near Certain Highway Facilities</heading><content>(a) A sign may not be erected along a regulated highway that is outside an incorporated municipality in an area that is adjacent to or within 1,000 feet of:(1) an interchange or intersection; or(2) a rest area, ramp, or the highway's acceleration or deceleration lanes.(b) The distance from a ramp or acceleration or deceleration lane is measured from the theoretical gore at the beginning of the entrance or exit ramp and from the theoretical gore at the conclusion of the entrance or exit ramp. If a theoretical gore is not present, the physical gore is used for the measurement.(c) The distance from a rest area is measured along the right of way line from the outer edges of the rest area boundary abutting the right of way.(d) An area is adjacent to a rest area or a highway's acceleration or deceleration lane if the area is between the two points of measurement listed in subsection (b) or (c), as appropriate.(e) For a sign permitted before September 1, 2024, the part of the sign face nearest a highway may not be within five feet of the highway's right of way line.(f) For a sign permitted after September 1, 2024, the part of the sign face nearest a highway may not be within either:(1) 5 feet of the highway's right of way line; or(2) 10 feet of overhead transmission or distribution lines.(g) All measurements related to the right of way are taken from a point perpendicular to the highway and along the highway right of way.(h) In this section the following words have the associated meanings:(1) Interchange--A junction of two or more roadways, including frontage roads with on and off ramps, in conjunction with one or more grade separations that provides for the uninterrupted movement of traffic between two or more roadways or highways on different levels without the crossing of traffic streams.(2) Intersection--The common area at the junction of two highways that are on the primary system. The common area includes the area within the lateral boundary lines of the roadways.(3) Physical gore--The point at which the pavement of the ramp separates from or joins with the pavement of the roadway.(4) Rest area--An area of public land designated by the department as a rest area, comfort station, picnic area, or roadside park.(5) Theoretical gore--The point at which the painted lane line of the ramp separates from or joins with the painted lane line of the roadway.</content><note type="source"><p>Source Note: The provisions of this §21.179 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.180"><num value="21.180">§21.180</num><heading>Spacing of Commercial Signs</heading><content>(a) Permitted signs on the same side of a regulated freeway, including freeway frontage roads, may not be erected closer than 1,500 feet apart.(b) For a highway on a non-freeway primary system and outside the incorporated boundaries of a municipality, permitted signs on the same side of the highway may not be erected closer than 750 feet apart.(c) For a highway on a non-freeway primary system highway and within the incorporated boundaries of a municipality, permitted signs on the same side of the highway may not be erected closer than 300 feet apart.(d) A permitted sign that is located within the incorporated boundaries of a certified city on a highway or on a freeway primary system may not be erected closer than:(1) 1,500 feet to another sign that is on the same side of the highway and outside the incorporated boundaries of a municipality; or(2) 500 feet to another sign that is on the same side of the highway and inside the incorporated boundaries of a municipality.(e) A permitted sign that is located within the incorporated boundaries of a municipality on a highway that is on a non-freeway primary system may not be erected closer than:(1) 750 feet to another sign that is on the same side of the highway and outside the incorporated boundaries of a municipality; or(2) 300 feet to another sign that is on the same side of the highway and inside the incorporated boundaries of a municipality.(f) For the purposes of this section, the space between commercial signs is measured between points along the right of way of the highway perpendicular to the center of the signs.(g) For the purposes of this section, a municipality's extraterritorial jurisdiction is not considered to be included within the boundaries of the municipality.(h) The spacing requirements of this section do not apply to commercial signs separated by buildings, natural surroundings, or other obstructions in a manner that causes only one of the signs to be visible within the specified spacing area.(i) A permitted sign that is being displaced by a highway construction project will not be considered in determining the spacing for a new sign application.</content><note type="source"><p>Source Note: The provisions of this §21.180 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.181"><num value="21.181">§21.181</num><heading>Commercial Sign Height Restrictions</heading><content>(a) Except as provided by this section, a commercial sign may not be erected or maintained that exceeds an overall height of 60 feet, excluding a cutout that extends above the rectangular border of the sign.(b) A roof sign that has a solid sign face surface may not at any point exceed 24 feet above the roof level.(c) A roof sign that has an open sign face in which the uniform open area between individual letter or shapes is not less than 40 percent of the total gross area of the sign face may not at any point exceed 40 feet above the roof level.(d) The lowest point of a projecting roof sign or a wall sign must be at least 14 feet above grade.(e) For the purposes of this section, height is measured from the department's determination of grade level of the centerline of the main-traveled way closest to the sign face, at a point perpendicular to the sign location. A frontage road of a controlled access highway or freeway is not considered the main-traveled way for purposes of this subsection. In the event that the main-traveled way that is perpendicular to the sign structure is below grade, sign height will be measured from the base of the sign structure.(f) The height measurement does not include any renewable energy device such as solar panels or wind turbines that are attached to the sign structure above the sign face to improve the energy efficiency of the sign structure.(g) This subsection applies only to a sign lawfully erected before and existing on March 1, 2017. The height of the sign, excluding a cutout that extends above the rectangular border of the sign, may not exceed the height of the sign on March 1, 2017, or 85 feet. After a new or amended permit is obtained from the department, the sign may be rebuilt, at the location where the sign existed on March 1, 2017, and at a height that does not exceed the maximum height specified in this subsection for the sign on that date. A sign structure described by this subsection must otherwise comply with this subchapter.</content><note type="source"><p>Source Note: The provisions of this §21.181 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.182"><num value="21.182">§21.182</num><heading>Effect of Sign Height Violations on Certain Persons</heading><content>(a) This section applies only to a license holder that has 100 or more permitted signs.(b) If a permit of the license holder has been cancelled under §21.174 of this subchapter (relating to Cancellation of Permit) for a violation of §21.181 of this subchapter (relating to Commercial Sign Height Restrictions) and the cancellation was not contested or was affirmed under §21.174(g) of this subchapter (relating to Cancellation of Permit),the department will forward to the commission all permit applications received from the license holder under §21.154 of this subchapter (relating to Permit Application) or §21.170 of this subchapter (relating to Amended Permit) after the date of the cancellation or order affirming the cancellation, as appropriate, and until all signs for which the license holder has a permit comply with §21.181 of this subchapter (relating to Commercial Sign Height Restrictions).(c) The commission, after notice and a hearing in compliance with Transportation Code, §391.0381, may deny an application forwarded to it under this section.</content><note type="source"><p>Source Note: The provisions of this §21.182 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.183"><num value="21.183">§21.183</num><heading>Lighting of and Movement on Commercial Signs</heading><content>(a) A sign may not contain or be illuminated by flashing, intermittent, or moving lights, including any type of screen using animated or scrolling displays, unless the permit for the sign specifies that the sign is an electronic sign.(b) A conforming sign may be illuminated. The illumination must be by upward or downward lighting of no more than 4 luminaires per direction of the sign face or faces of the structure.(c) Lights that are a part of or illuminate a sign:(1) must be shielded, directed, and positioned to prevent beams or rays of light from being directed at any portion of the traveled ways of a regulated highway;(2) may not be of an intensity or brilliance that causes vision impairment of a driver of any motor vehicle on a regulated highway or otherwise interferes with such a driver's operation of a motor vehicle; and(3) may not obscure or interfere with the effectiveness of an official traffic sign, device, or signal.(d) A temporary protrusion may not be illuminated by flashing or moving lights or enhanced by reflective material that creates the illusion of flashing or moving lights.(e) Reflective paint or reflective disks may be used on a sign face only if the paint or disks do not:(1) create the illusion of flashing or moving lights; or(2) cause an undue distraction to the traveling public.(f) A neon light may be used on a sign face only if:(1) the light does not flash;(2) the light does not cause an undue distraction to the traveling public; and(3) the permit for the sign specifies that the sign is an illuminated sign.(g) A sign, including an electronic sign, may contain a temporary protrusion area of the sign face that displays only numerical characters and that satisfies this subsection and the requirements of §21.176 of this subchapter (relating to Commercial Sign Face Size and Positioning). The display on the temporary protrusion may be a digital or other electronic display, but if so:(1) it must consist of a stationary image;(2) it may not change more frequently than four times in any 24-hour period; and(3) the process of any change of display must be completed within two minutes.(h) If the department finds that an electronic sign causes glare or otherwise impairs the vision of the driver of a motor vehicle or otherwise interferes with the operation of a motor vehicle, the owner of the sign, within 12 hours of a request by the department, shall reduce the intensity of the sign to a level acceptable to the department.</content><note type="source"><p>Source Note: The provisions of this §21.183 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.184"><num value="21.184">§21.184</num><heading>Repair and Maintenance of Commercial Signs</heading><content>(a) The following maintenance activities do not require an amended permit:(1) the replacement of nuts and bolts;(2) nailing, riveting, or welding;(3) cleaning and painting;(4) manipulation of the sign structure to level or plumb it;(5) changing of the advertising message;(6) upgrading existing lighting for an energy efficient lighting system; and(7) replacing components of the structure, other than poles, with like materials.(b) The following are considered to be customary maintenance activities that may be made but require an amended permit under §21.170 of this subchapter (related to Amended Permit) before the initiation of such an activity:(1) replacement of poles, but only if not more than one-half of the total number of poles of the sign structure are replaced in any 12-month period and the replacement pole is made of the same material as the pole being replaced; and(2) adding a catwalk that meets Occupational Safety and Health Administration guidelines to the sign structure.(c) An activity that is not described by subsection (a) or (b) of this section is a substantial change that may be made only if the sign is a conforming sign, and the license holder obtains an amended permit before the initiation of the activity.(d) The holder of a permit for a nonconforming sign may apply for an amended permit to:(1) perform eligible customary maintenance under subsection (b) of this section; or(2) conform the sign structure to both applicable location and structure requirements.</content><note type="source"><p>Source Note: The provisions of this §21.184 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.185"><num value="21.185">§21.185</num><heading>Damage to or Destruction of Commercial Sign</heading><content>(a) If a sign is damaged and an activity to be used for its repair requires an amended permit under §21.184 of this subchapter (relating to Repair and Maintenance of Commercial Signs), the license holder must obtain the amended permit under §21.170 of this subchapter (related to Amended Permit) before beginning the repair.(b) The department will deny the application for an amended permit to repair a sign if the department determines that the sign has been destroyed under §21.186 of this subchapter (relating to Determination that Sign is Destroyed).</content><note type="source"><p>Source Note: The provisions of this §21.185 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.186"><num value="21.186">§21.186</num><heading>Determination That Sign is Destroyed</heading><content>(a) The department will determine that a damaged sign has been destroyed if:(1) one-half or more of the total number of poles of the sign structure require repair or replacement; or(2) the pole of a monopole structure is bent or broken, or its support is twisted.(b) To dispute the department's determination that a sign has been destroyed, the sign owner must file with the department, before the 90 thday after the date that the notice of the determination was sent, documentation from a person licensed to practice engineering in this state that demonstrates that the sign meets the requirements of the International Building Code, Appendix H, §H105, Design and Construction.(c) If a permit is canceled under §21.174(a)(2) of this subchapter (relating to Cancellation of Permit), all the sign structure above ground must be dismantled and removed without cost to the state. No portion of the sign structure may remain above ground.(d) If a decision to cancel a permit is appealed, the sign may not be rebuilt during the appeal process.(e) If a sign is rebuilt or repaired in violation of this section, the department may take one or more of the following actions:(1) cancel the sign's permit;(2) require removal of the sign; or(3) impose penalties on the license holder.</content><note type="source"><p>Source Note: The provisions of this §21.186 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.187"><num value="21.187">§21.187</num><heading>Authority to Rebuild a Commercial Sign</heading><content>(a) Unless the department determines under §21.186 of this subchapter (relating to Determination That Sign is Destroyed) that a damaged sign has been destroyed, an amended permit is not required to rebuild a conforming sign that has been damaged by a motor vehicle collision or an act of God, including wind or a natural disaster.(b) Before a permit holder may begin rebuilding a sign under subsection (a) of this section, the permit holder must obtain from the department, within one year after the date that the damage to the sign occurred, written confirmation that the sign qualifies for the exception provided by that subsection.(c) In this section, "rebuild" means to re-erect a sign at its permitted location without any changes from the sign as it existed before being damaged.</content><note type="source"><p>Source Note: The provisions of this §21.187 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.188"><num value="21.188">§21.188</num><heading>Destruction of Vegetation and Access from Right of Way Prohibited</heading><content>(a) A person may not:(1) trim or destroy a tree or other vegetation on the right of way for any purpose related to this subchapter; or(2) erect or maintain a sign from the right of way.(b) The department will deny a permit application or cancel an existing permit under §21.174 of this subchapter (relating to Cancellation of Permit) if the permit holder, or someone acting on behalf of the permit holder, violates this section.(c) Subsection (a)(2) of this section does not apply to the maintenance of a sign if:(1) the state right of way is the only available access for a sign on railroad right of way to which §21.168(b) of this subchapter (relating to Continuance of Nonconforming Commercial Signs) applies; and(2) the sign owner notifies the department and obtains approval of the department before accessing the sign for maintenance.(d) It is not a violation to trim the portion of the tree or vegetation that encroaches onto private property at the private property line as long as the trimming occurs from the private property.</content><note type="source"><p>Source Note: The provisions of this §21.188 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.189"><num value="21.189">§21.189</num><heading>Fraudulent Activity</heading><content>(a) If the department believes that a person has performed an act involving fraud to obtain or amend a permit, to obtain or renew a license, or to cure a violation under this subchapter, the department will request an investigation by the department's Compliance Division for a determination.(b) If the investigation under subsection (a) of this section results in a finding of fraud, the department will, as appropriate:(1) immediately cancel the permit;(2) immediately cancel any approved changes to a sign resulting from an amended permit application;(3) resume any enforcement actions related to the permit or sign; or(4) immediately revoke the license under §21.152 of this subchapter (relating to License Revocation).(c) In addition to an action under subsection (b) of this section and any other penalties assessed under this subchapter, the department will impose an administrative penalty under Transportation Code, §391.0355, in the amount of $1,000 on a person that the investigation under subsection (b) of this section finds submitted a fraudulent document to the department. The penalty imposition will be added to any ongoing contested case involving the fraud claim or if there is not a contested case, the department will impose the administrative penalties under the procedure set out in §21.191(d) - (f) of this subchapter (relating to Administrative Penalties for Commercial Signs).</content><note type="source"><p>Source Note: The provisions of this §21.189 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.190"><num value="21.190">§21.190</num><heading>Unlawful Sign</heading><content>(a) An unlawful sign is a commercial sign that:(1) is erected or maintained without obtaining a permit required under §21.153 of this subchapter (relating to Permit Required);(2) is not removed after its permit is canceled under §21.173 of this subchapter (relating to Void Permit) or §21.174 of this subchapter (relating to Cancellation of a Permit); or(3) is not erected in compliance with §21.159 of this subchapter (relating to Decision on Application).(b) The department will issue a notice by certified mail to the person that the department identifies as being responsible for an unlawful sign. The notice will state:(1) the reason the sign has been determined to be unlawful; and(2) the date by which the person is required to obtain a permit for or remove the sign if it is not eligible for a permit.(c) If the person responsible for the sign does not obtain a permit or remove the sign before the date specified under subsection (b)(2) of this section, the department will:(1) demand the sign's removal at no cost to the state; and(2) impose administrative penalties under §21.191 of this subchapter (relating to Administrative Penalties for Commercial Signs).(d) If the sign is not removed before the 46th day after the date that the demand is sent under this subsection (c)(1) of this section, the department will seek an injunction for the sign to be removed. The department will rescind the removal demand if the department determines the demand was issued incorrectly.</content><note type="source"><p>Source Note: The provisions of this §21.190 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.191"><num value="21.191">§21.191</num><heading>Administrative Penalties for Commercial Signs</heading><content>(a) The department will impose administrative penalties, as authorized under Transportation Code, §391.0355, against a person who violates Transportation Code, Chapter 391 or this subchapter. Penalties accrue beginning on the day that the notice of administrative penalty is sent to a person.(b) The amount of the administrative penalty may not exceed $1,000 for each violation. A separate penalty may be assessed for each day a continuing violation occurs.(c) In addition to the penalties assessed under subsection (b) of this section, the department may seek to recover the cost of repairing any damage to the right of way done by the sign owner or on the sign owner's behalf.(d) On the determination to seek administrative penalties, the department will mail a notice of the administrative penalties to the last known address of the person. The notice will clearly state:(1) the reasons for the administrative penalty;(2) the amount of the administrative penalty; and(3) the right of the holder of the permit to request an administrative hearing.(e) A request for an administrative hearing under this section must be made in writing and received by the department not later than the 90th day after the date the notice of administrative penalties is sent.(f) If timely requested, an administrative hearing will be conducted in compliance with Chapter 1, Subchapter E of this title (relating to Procedures in Contested Case).</content><note type="source"><p>Source Note: The provisions of this §21.191 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.192"><num value="21.192">§21.192</num><heading>Local Control of Commercial Signs</heading><content>(a) The department may authorize a political subdivision, as a certified city, to exercise control over commercial signs in its jurisdiction. If the political subdivision receives approval under this section, it will be listed as a certified city and a permit issued by that political subdivision is acceptable instead of a permit issued by the department within the approved area.(b) To be considered for authorization under this section, the political subdivision must submit to the department:(1) a copy of its sign regulations;(2) a copy of its zoning regulations;(3) information about the number of personnel who will be dedicated to the program and what type of records will be maintained, including whether the political subdivision maintains an inventory of signs that can be provided to the department in an electronic format that is acceptable to the department; and(4) an enforcement plan that includes the removal of unlawful signs.(c) The department, after consulting with the Federal Highway Administration, will determine whether a political subdivision has established and will enforce within its corporate limits standards that are consistent with the purposes of the Highway Beautification Act of 1965, 23 United States Code §131, federal regulations adopted under that act, and the Texas Federal-State Agreement on Outdoor Advertising, including the federal requirements for size, lighting, and spacing. The authorization under this section does not include the area in a municipality's extraterritorial jurisdiction.(d) The department may meet with a political subdivision to ensure that it is enforcing the standards and criteria in compliance with subsection (c) of this section.(e) After approval under this section, the political subdivision shall:(1) provide to the department:(A) a copy of each amendment to its sign and zoning regulations when the amendment is proposed and adopted; and(B) a copy of any change to its corporate limits and its extraterritorial jurisdiction, if covered by the approval;(2) annually provide to the department:(A) an electronic copy of the sign inventory; and(B) report of the number of sign permits issued and the status of all pending enforcement actions; and(3) participate in at least one video conference or teleconference sponsored by the department each year.(f) The political subdivision may:(1) set and retain the fees for issuing a sign permit; and(2) establish the period for which a sign permit is effective.(g) The department may conduct an on-site compliance monitoring review every two years.(h) The department may withdraw the approval of a political subdivision given under this section if the department determines that the political subdivision does not have an effective sign control program. The department will consider whether:(1) the standards and criteria of the political subdivision's sign regulations continue to meet the requirements of subsection (c) of this section;(2) the political subdivision maintains an accurate sign inventory and annually provides the inventory to the department in an electronic format; and(3) the political subdivision enforces the sign regulations and annually reports enforcement actions as required.(i) The department may reinstate a political subdivision's authority on the showing of a new plan that meets the requirements of subsection (c) of this section.</content><note type="source"><p>Source Note: The provisions of this §21.192 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.193"><num value="21.193">§21.193</num><heading>Fees Nonrefundable</heading><content>A fee paid to the department under this subchapter is nonrefundable.</content><note type="source"><p>Source Note: The provisions of this §21.193 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.194"><num value="21.194">§21.194</num><heading>Property Right Not Created</heading><content>Issuance of a permit or license under this subchapter does not create a contract or property right in the permit or license.</content><note type="source"><p>Source Note: The provisions of this §21.194 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.195"><num value="21.195">§21.195</num><heading>Complaint Procedures</heading><content>(a) The department will accept and investigate all written complaints on a specific sign structure, sign company, or any other issue under the jurisdiction of the highway beautification program.(b) The complaints can be filed through the department's website, www.txdot.gov. or by mail sent to: Texas Department of Transportation, Commercial Signs Regulatory Program Section, Right of Way Division, P.O. Box 5075, Austin, Texas 78763-5075.(c) If the complaint involves a sign structure or a sign company, the department will notify the owner of the sign structure or sign company of the complaint and the pending investigation not later than the 15th day after the date of receipt of the complaint. The notification will include a copy of the complaint and the complaint investigation procedures.(d) If the complaint included contact information, the department will provide the complainant with a copy of the complaint procedures not later than the 15th day after the date of the receipt of the complaint.(e) If the complaint involves fewer than 10 sign structures, the department will investigate the complaint and make a finding not later than the 30th day after the date of the receipt of the complaint. If the complaint involves 10 or more sign structures or is an investigation of a sign company or any other sign matter, the department will make a finding not later than the 90th day after the date of the receipt of the complaint.(f) If the department is unable to meet the deadlines provided by subsection (e) of this section, the department will notify the complainant, the sign owner, or sign company of the delay and will provide a date for the completion of the investigation.(g) After the investigation is completed, the department will provide the complainant, sign owner, or sign company the findings of the investigation and a statement of whether the department will initiate administrative enforcement actions.</content><note type="source"><p>Source Note: The provisions of this §21.195 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.196"><num value="21.196">§21.196</num><heading>Requirements For an Electronic Sign</heading><content>(a) Each message on an electronic sign must be displayed for at least eight seconds. A change of message must be accomplished within two seconds and must occur simultaneously on the entire sign face.(b) An electronic sign must:(1) contain a default mechanism that freezes the sign in one position if a malfunction occurs; and(2) automatically adjust the intensity of its display according to natural ambient light conditions.(c) The owner of an electronic sign shall coordinate with state and local authorities to display, when appropriate, emergency information important to the traveling public, such as Amber Alerts or alerts concerning terrorist attacks or natural disasters. Emergency information messages must remain in the advertising rotation according to the protocols of the agency that issues the information.(d) The department will share the contact information required by §21.154(e) of this subchapter (relating to Permit Application) with the appropriate local authority that has jurisdiction over the location of the electronic sign.</content><note type="source"><p>Source Note: The provisions of this §21.196 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.197"><num value="21.197">§21.197</num><heading>Previously Relocated Commercial Signs</heading><content>If a commercial sign was relocated under a permit that authorized the relocation and was issued before September 1, 2024, and the sign met all of the location requirements applicable on that date, the sign is considered to remain a conforming sign as long as the location of the sign is unchanged, and the sign satisfies all other applicable requirements of this subchapter.</content><note type="source"><p>Source Note: The provisions of this §21.197 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.198"><num value="21.198">§21.198</num><heading>Credit for Acquired Commercial Sign</heading><content>(a) A commercial sign that has been timely removed from a department construction project site may be erected in compliance under §21.199 of this subchapter (relating to Permit Issued with Credit for Acquired Commercial Sign) and §21.200 of this subchapter (relating to Acquired Commercial Sign within Certified Cities) if the sign is legally erected and maintained and will be within the highway right of way as a result of a highway construction project or, under exceptional circumstances as determined by the executive director or the executive director's deputy if the sign is legally erected and maintained and the relocation will further the intended purposes of the Highway Beautification Act of 1965 (23 U.S.C. §§131, 136, 319).(1) To establish timely removal, the permit holder must do the following:(A) Verify ownership of the commercial sign structure. If the sign structure is not the property of the fee owner, verify ownership of the sign structure by providing a Disclaimer of Interest signed by the fee owner, or a copy of the permit holder's lease or easement that states all ownership in the structure is vested in the permit holder;(B) Negotiate for the sale of and convey the commercial sign structure to the State of Texas prior to the date of a special commissioners' hearing in a proceeding brought to acquire the commercial sign through eminent domain, in exchange for a purchase price agreed to by the permit holder and the department, minus a retention/salvage value;(C) Agree in the conveyance document to retain possession of and title to the commercial sign structure;(D) Agree in the conveyance document to remove the commercial sign structure by the deadline provided by the department in a Notice to Vacate;(E) Not later than the deadline provided in the Notice to Vacate remove the part of the commercial sign structure that is above ground and fill to ground level all holes in the ground caused by the sign removal; and(F) Not later than 180 days after the date of the sign's removal provide the documentation required by this section in the form prescribed by the department by submitting it electronically through the department's website, www.txdot.gov.(2) In the event the permit holder fails to retain and remove the commercial sign structure within the time prescribed in the Notice to Vacate, the permit holder will not be eligible for an acquired credit.(b) A sign is eligible for a credit only if the structure has remained in its present location from the time the owner received notice of eminent domain proceedings until the above-ground portion of the structure is removed entirely from the property pursuant to the Notice to Vacate or earlier upon written approval by the department. A sign that is moved to the acquired parcel's remainder is not eligible for an acquired sign credit.(c) The department will issue a credit under this section only if all requirements of this section are satisfied. A credit expires on the fourth anniversary of the date that the permit holder satisfies the requirements of subsection (a)(1)(E) of this section.(d) The holder of a credit issued under this section may transfer the credit. To transfer the credit, the transferee must file an electronic transfer application through the department's website, www.txdot.gov. A transferred credit retains the original credit expiration date.</content><note type="source"><p>Source Note: The provisions of this §21.198 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.199"><num value="21.199">§21.199</num><heading>Permit Issued with Credit for Acquired Commercial Sign</heading><content>(a) To obtain a permit using a credit issued under §21.198 of this subchapter (relating to Credit for Acquired Commercial Sign), the license holder must submit a new sign permit application under §21.154 of this subchapter (relating to Permit Application) and indicate that the permit application is using an acquired sign credit. The location of the sign for which a permit is issued under this section must be within a zoned commercial or industrial area under §21.161 of this subchapter (relating to Zoned Commercial or Industrial Area) or an unzoned commercial or industrial area, under §21.162 of this subchapter (relating to Unzoned Commercial or Industrial Area) except that an unzoned commercial or industrial area may include only one commercial or industrial activity.(b) The department will issue a permit under this section for a sign located in accordance with §21.179 of this subchapter (relating to Location of Commercial Signs Near Certain Highway Facilities) except as provided by this subsection.(1) A sign may not be erected along a regulated highway that is outside an incorporated municipality in an area that is adjacent to or no less than 500 feet from:(A) an interchange or intersection; or(B) a rest area, ramp, or the highway's acceleration or deceleration lanes.(2) A sign may be located not less than 500 feet from a public space that is adjacent to a regulated highway:(A) on either side of a regulated highway that is on a nonfreeway primary system; or(B) on the side of the highway adjacent to the public space if the regulated highway is on an interstate or freeway primary system;(3) for a highway on the interstate or freeway primary system, not closer than 500 feet to another permitted sign on the same side of the highway;(4) for a highway on the nonfreeway primary system and outside of a municipality, no closer than 300 feet to another permitted sign on the same side of the highway;(5) for a highway on the nonfreeway primary system and within the incorporated boundaries of a municipality, no closer than 100 feet to another permitted sign on the same side of the highway.(c) The department will not issue a permit under this section for a sign to be located on a rural road regulated by Subchapter K of this chapter (relating to Control of Signs along Rural Roads).(d) A sign for which a permit is issued under this section must meet all other requirements of this subchapter that do not conflict with this section.</content><note type="source"><p>Source Note: The provisions of this §21.199 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scI/s21.200"><num value="21.200">§21.200</num><heading>Acquired Commercial Sign within Certified Cities</heading><content>If an existing sign is located within the incorporated boundaries of a municipality that is approved by the department to control commercial signs under §21.192 of this subchapter (relating to Local Control of Commercial Signs) and the sign will be relocated within the incorporated boundaries of the same municipality, permission to erect the sign must be obtained only from the municipality in accordance with the municipality's sign and zoning ordinances, and the department will not issue a credit to erect a sign unless the sign owner provides a certified document from the city stating that the city is declining to allow the relocation.</content><note type="source"><p>Source Note: The provisions of this §21.200 adopted to be effective September 1, 2024, 49 TexReg 6256.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c21/scJ"><num value="J">SUBCHAPTER J</num><heading>LEASING OF HIGHWAY ASSETS FOR TRANSPORTATION FACILITY</heading><section identifier="/us/state/tx/tac/t43/p1/c21/scJ/s21.301"><num value="21.301">§21.301</num><heading>Purpose</heading><content>(a) This subchapter establishes the procedure to be used for leasing state-owned right of way for freight movement to reduce congestion on the state highway system and to improve air quality when the commission authorizes such a lease for a specified project.(b) This subchapter may not be used for the lease of right of way for the purposes of a pipeline, electric transmission line, or other utility facility. Additionally, this subchapter may not be used for the lease of right of way for rail lines that are part of the general system of rail transportation and require a certificate from the United States Surface Transportation Board under 49 U.S.C. §10901.(c) The procedure provided by this subchapter is separate from and in addition to the procedure established under Subchapter L of this chapter (relating to Leasing of Highway Assets).</content><note type="source"><p>Source Note: The provisions of this §21.301 adopted to be effective January 6, 2011, 35 TexReg 11959.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scJ/s21.302"><num value="21.302">§21.302</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings unless the context clearly indicates otherwise.(1) Commission--The Texas Transportation Commission.(2) Department--The Texas Department of Transportation.(3) Executive director--The executive director of the department or the executive director's designee, not below the level of deputy executive director or assistant executive director.</content><note type="source"><p>Source Note: The provisions of this §21.302 adopted to be effective January 6, 2011, 35 TexReg 11959.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scJ/s21.303"><num value="21.303">§21.303</num><heading>Request for Proposals</heading><content>(a) The department may issue a request for proposals from public and private entities for the submission of detailed documentation regarding a proposed project and the associated lease of right of way. (b) The request for proposals will provide the information necessary for a responsive proposal. (c) The request for proposal will set out in detail the specific evaluation criteria that the department establishes for the project under §21.305 of this subchapter (relating to Selection of Entity). (d) A request for proposal may describe the geographic limits of potential right of way to be leased. (e) The department will publish notice of the intent to issue a request for proposal on the department's Internet website and in the Texas Register and at least one newspaper of general circulation in the state. The department may also furnish notice to entities associated with freight movement that the department believes might be interested and qualified to participate in submitting a proposal. (f) The deadline for submitting a proposal will not be before the 31st day after the date that the notice is published in the Texas Register under subsection (e) of this section. (g) The department will not accept unsolicited proposals under this subchapter.</content><note type="source"><p>Source Note: The provisions of this §21.303 adopted to be effective January 6, 2011, 35 TexReg 11959.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scJ/s21.304"><num value="21.304">§21.304</num><heading>Proposals</heading><content>(a) To be responsive to a request under this subchapter, a proposal must set out in detail:(1) the description of the property that is proposed to be leased;(2) the proposed lease term, amount to be paid under the lease, and the payment schedule;(3) the proposer's qualifications and demonstrated technical competence related to the proposed project;(4) proposed technologies to be used for the proposed project, including information from test facilities or operational facilities;(5) schematic designs and architectural designs sufficient to show the extent and nature of the proposed project;(6) the proposer's ability to meet schedules;(7) a detailed financial plan, including cost methodology, cost proposals, and project financing approach;(8) the estimated air emissions of the proposed transportation facility and a comparison to the estimated emissions from equivalent truck transportation;(9) the effects on the highway facility, including changes in access, clear-zones, lines of sight, signage, drainage, vegetation, and safety; and(10) any other information that the department considers relevant or necessary.(b) The information provided under subsection (a)(8) of this section must provide an evaluation of the type of emissions, including regulated pollutants and carbon, and the impacts on existing air quality conditions in the area of the proposed facility.</content><note type="source"><p>Source Note: The provisions of this §21.304 adopted to be effective January 6, 2011, 35 TexReg 11959.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scJ/s21.305"><num value="21.305">§21.305</num><heading>Selection of Entity</heading><content>(a) The department will evaluate proposals based on the criteria that the department considers appropriate for the project. The criteria may include the comparative value of estimated emissions reductions generated by the proposed transportation facility, the revenue potential to the state, the current viability of proposed technology, the financial viability of the proposer, or other factors that the department reasonably determines are relevant for the project.(b) Based on the evaluation criteria described under subsection (a) of this section, the department will rank all proposals that are complete, responsive to the request for proposals, and in conformance with the requirements of this subchapter.(c) The department may select one or more entities whose proposals offer the apparent best value to the department, or may reject all proposals.(d) The department will submit a recommendation to the commission regarding approval of the proposal or proposals determined to provide the apparent best value to the department. The commission may disapprove the recommendation or the commission may approve the recommendation, if it finds that:(1) one or more alternative transportation facilities for moving freight are available that have lower emissions than emissions produced for the movement of the same amount of freight an equivalent distance by truck;(2) part of the right of way of, the airspace above, or the underground space below a highway that is part of the state highway system will not be needed for a highway purpose during the term of the lease and is suitable for the identified mode of moving freight;(3) the use of the right of way, airspace, or underground space for the identified mode of moving freight would not be inconsistent with applicable highway use; and(4) the lease of the property described in paragraph (2) of this subsection would be economically beneficial to the department, taking into account the receipt of lease payments and the reduced maintenance costs on the state highway system.(e) The department's execution of the agreement is subject to the successful completion of negotiations, any necessary federal action, and satisfaction of such other conditions that are identified in the request for proposals or by the commission.</content><note type="source"><p>Source Note: The provisions of this §21.305 adopted to be effective January 6, 2011, 35 TexReg 11959.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scJ/s21.306"><num value="21.306">§21.306</num><heading>Negotiation with Selected Entity</heading><content>(a) The department will attempt to negotiate an agreement with the approved proposer for the lease right of way from the department and for the design, development, construction, financing, operation, and maintenance of the proposed transportation facility.(b) If an agreement that is satisfactory to the department cannot be negotiated with that proposer, or if, in the course of negotiations, it appears that the proposal will not provide the department with the overall best value, the department will formally end negotiations with that proposer, and, in its sole discretion:(1) if authorized by the commission, proceed to the next most highly ranked proposal and attempt to negotiate an agreement with that entity in accordance with this subsection;(2) reject all proposals and end the process; or(3) modify the request for proposals and begin the process under this subchapter again.</content><note type="source"><p>Source Note: The provisions of this §21.306 adopted to be effective January 6, 2011, 35 TexReg 11959.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scJ/s21.307"><num value="21.307">§21.307</num><heading>Agreement</heading><content>(a) An agreement under this subchapter must be in writing, must be executed by the executive director, and must contain the terms specified in this section. The agreement is subject to approval by the Federal Highway Administration.(b) The department may not execute an agreement that would impair or relinquish the state's right to use the property for a right of way purpose when the property is needed to construct or improve the roadway for which it was acquired.(c) If the proposed project does not obtain the required governmental approvals or permits, the department will cancel the lease.(d) The agreement must contain:(1) the term of the lease, the amount of rent and required deposits, if any, and the method of payment;(2) a detailed description of the right of way to be leased, including a three-dimensional description if needed;(3) the general design for the use of the leased right of way, including any improvements to be constructed, all maps, plans, or sketches necessary to set out the pertinent features in relation to any highway facility, and a description of any temporary improvements to be provided by the lessee;(4) a performance bond and payment bond, as provided under Transportation Code, §202.053;(5) a removal bond in an amount equal to the anticipated future cost of removing any improvements, as well as the restoration and mitigation of the right of way to a suitable and safe condition, based on a removal, restoration, and mitigation plan approved by the department;(6) appropriate terms relating to indemnity, liability, insurance, and risk of loss; and(7) any other provisions considered necessary or desirable by the department.(e) The agreement must provide that the selected proposer is responsible for:(1) preparation of any environmental review documents required under federal law or Chapter 2 of this title (relating to Environmental Policy);(2) preparation of applications and obtaining any environmental permits or other approvals by third parties or governmental entities;(3) funding all planning, design, testing, construction, operation, or maintenance of the lessee's proposed activities, with acknowledgement of the lessee's right to mortgage or otherwise pledge or grant a security interest in the leasehold to secure financing for the acquisition of the leasehold and for the construction and operation of an improvement permitted under the lease;(4) making any changes to existing highway facilities at its sole expense for the proper operation and maintenance of the facilities if the department determines that the proposed use of the leased right of way requires changes or additions;(5) acquiring additional real property rights located outside of the department's holdings that are necessary to conduct the proposed activities; and(6) all utility adjustments and relocations required for its proposed activities.</content><note type="source"><p>Source Note: The provisions of this §21.307 adopted to be effective January 6, 2011, 35 TexReg 11959.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scJ/s21.308"><num value="21.308">§21.308</num><heading>Termination of Agreement</heading><content>(a) An agreement under this subchapter may be terminated if, in the department's sole opinion:(1) the leased assets are not being used in accordance with the lease or have been abandoned; or(2) the selected proposer has not complied with the terms of the agreement.(b) The department will give written notice to the selected proposer of noncompliance with the agreement and specify a reasonable period during which the selected proposer may correct the noncompliance. If the selected proposer fails to correct the issues within the specified period, the department may terminate the agreement.(c) The agreement may contain a provision for early termination of the agreement by either party with or without cause. The right of either party to terminate the agreement without cause before the stated termination date may be conditioned on the payment to the non-terminating party of an amount negotiated by the parties and specified in the agreement.(d) Upon termination of the agreement for any reason, the department may require the selected proposer to:(1) dismantle and remove the freight transportation facility and to restore the right of way at no cost to the department; or(2) hand back the facility to the department in a condition complying with minimum specified criteria and standards.(e) The selected proposer shall bear the cost of any remedial or rehabilitation work identified as being necessary to improve the facility to comply with the minimum specified criteria or standards under subsection (d)(2) of this section.</content><note type="source"><p>Source Note: The provisions of this §21.308 adopted to be effective January 6, 2011, 35 TexReg 11959.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scJ/s21.309"><num value="21.309">§21.309</num><heading>Payment</heading><content>(a) The department will charge for the lease of right of way under this subchapter not less than fair market value, unless the commission authorizes an exception under Transportation Code, §202.052(d). The department may consider its costs in administering the agreement in establishing the amount to be paid for the lease.(b) All payments received under this subchapter will be deposited into the state highway fund.</content><note type="source"><p>Source Note: The provisions of this §21.309 adopted to be effective January 6, 2011, 35 TexReg 11959.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scJ/s21.310"><num value="21.310">§21.310</num><heading>Sublease</heading><content>Any proposed sublease of a lease under this subchapter must be approved by the department. If a sub-lessee is a utility provider, the installation, adjustment, relocation, and maintenance of its facilities must be in accordance with the department's utility accommodation policy in Subchapter C of this chapter (relating to Utility Accommodation).</content><note type="source"><p>Source Note: The provisions of this §21.310 adopted to be effective January 6, 2011, 35 TexReg 11959.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scJ/s21.311"><num value="21.311">§21.311</num><heading>General Requirements</heading><content>(a) The department may not convey title to, or sever from the real property, a permanent improvement constructed on the property leased under this subchapter.(b) Outdoor advertising will not be permitted under an agreement under this subchapter.(c) The person who enters into an agreement with the department under this subchapter is responsible for any common carrier obligation associated with the facility developed under the agreement.(d) A person's use of right of way under an agreement under this subchapter does not constitute abandonment of the property by the department.</content><note type="source"><p>Source Note: The provisions of this §21.311 adopted to be effective January 6, 2011, 35 TexReg 11959.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c21/scK"><num value="K">SUBCHAPTER K</num><heading>CONTROL OF SIGNS ALONG RURAL ROADS</heading><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.401"><num value="21.401">§21.401</num><heading>Purpose</heading><content>This subchapter is established to regulate the orderly and effective display of outdoor advertising along rural highways and roads located outside corporate limits of cities, towns, and villages.</content><note type="source"><p>Source Note: The provisions of this §21.401 adopted to be effective July 1, 2011, 36 TexReg 2418.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.402"><num value="21.402">§21.402</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--The Texas Transportation Commission.(2) Department--The Texas Department of Transportation.(3) Erect--To construct, build, raise, assemble, place, affix, attach, embed, create, paint, draw, or in any way bring into being or establish.(4) License--An outdoor advertising license issued by the department.(5) Main-traveled way--The through traffic lanes exclusive of frontage roads, auxiliary lanes, and ramps.(6) Military service member--A person who is currently serving in the Armed Forces of the United States, in a reserve component of the United States, including the National Guard, or in the state military service of any service.(7) Military spouse--A person who is married to a military service member who is currently on active duty.(8) Military veteran--A person who has served in the Army, Navy, Air Force, Marine Corps, or Coast Guard of the United States, or in an auxiliary service of one of those branches of the armed forces.(9) Nonconforming sign--A sign that was lawfully erected but that no longer complies with a law or rule because of changed conditions or because the law or rule was amended after the sign was erected or that fails to comply with a law enacted or rule adopted after the sign was erected.(10) Nonprofit sign--A sign that is erected and maintained by a nonprofit organization under a permit issued under §21.457 of this subchapter (relating to Nonprofit Sign Permit).(11) Permit--Written authorization granted for the erection of a sign, subject to this subchapter and Transportation Code, Chapter 394.(12) Person--An individual, association, partnership, limited partnership, trust, corporation, or other legal entity.(13) Portable sign--A sign designed to be mounted on a trailer, bench, wheeled carrier, or other non-motorized mobile structure or on skids or legs.(14) Processing area--An area where actions or operations are accomplished that contribute directly to a particular commercial or industrial purpose and are performed during established activity hours.(15) Public park--A public park, forest, playground, nature preserve, or scenic area designated and maintained by a political subdivision or governmental agency.(16) Rural road--A road, street, way, highway, thoroughfare, or bridge that is located in an unincorporated area and is not privately owned or controlled, any part of which is open to the public for vehicular traffic, and over which the state or any of its political subdivisions have jurisdiction.(17) Sign--A thing that is designed, intended, or used to advertise or inform, including a sign, display, light, device, figure, painting, drawing, message, plaque, placard, poster, billboard, logo, or symbol.(18) Sign face--The part of the sign that contains the advertising or information contents and is distinguished from other parts of the sign and another sign face by borders or decorative trim. The term does not include a lighting fixture, apron, or catwalk unless it displays a part of the advertising or information contents of the sign.(19) Sign structure--All of the interrelated parts and materials that are used, designed to be used, or intended to be used to support or display advertising or information contents. The term includes at a minimum, beams, poles, braces, apron, frame, catwalk, stringers, and a sign face.(20) Visible--Capable of being seen whether or not legible or identified without visual aid by a person of normal visual acuity.</content><note type="source"><p>Source Note: The provisions of this §21.402 adopted to be effective July 1, 2011, 36 TexReg 2418; amended to be effective June 19, 2014, 39 TexReg 4668.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.403"><num value="21.403">§21.403</num><heading>Prohibited Signs</heading><content>(a) A sign may not be erected or maintained on a tree or painted or drawn on a rock or other natural feature.(b) A sign may not be erected or maintained within the right of way of a public roadway or an area that would be within the right of way if the right of way boundary lines were projected across an area of railroad right of way, utility right of way, or road right of way that is not owned by the state or a political subdivision.(c) A sign may not be erected or maintained on a highway or part of a highway designated under Transportation Code, §391.252.(d) A sign may not be erected or contain a display that imitates or resembles any official traffic sign, signal, or device.</content><note type="source"><p>Source Note: The provisions of this §21.403 adopted to be effective July 1, 2011, 36 TexReg 2418.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.404"><num value="21.404">§21.404</num><heading>Permit Required</heading><content>A person may not erect or cause to be erected an off-premise sign, other than an exempt sign, that is visible from the main-traveled way of a rural road without first having obtained a permit under this subchapter.</content><note type="source"><p>Source Note: The provisions of this §21.404 adopted to be effective July 1, 2011, 36 TexReg 2418.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.405"><num value="21.405">§21.405</num><heading>Exemptions</heading><content>(a) The following are exempt from the requirements of this subchapter:(1) a sign, the erection and maintenance of which is allowed under the highway beautification provisions of the Transportation Code, Chapter 391;(2) a sign in existence before September 1, 1985, that was properly registered and maintains a valid registration under §21.407 of this subchapter (relating to Existing Off-Premise Signs);(3) a sign that has as its purpose the protection of life and property;(4) a directional or other official sign authorized by law, including a sign pertaining to a natural wonder or scenic or historic attraction;(5) a sign or marker giving information about the location of an underground electric transmission line, telegraph or telephone property or facility, pipeline, public sewer, or waterline;(6) a sign erected by a governmental entity;(7) a sign erected solely for and relating to a public election, but only if:(A) the sign is on private property;(B) the sign is erected after the 91st day before the election and is removed before the 11th day after the election;(C) the sign is constructed of lightweight material;(D) the surface area of the sign is not larger than 50 square feet; and(E) the sign is not visible from the main-traveled way of an interstate or federal-aid primary highway;(8) an off-premise directional sign for a small business, as defined by Government Code, §2006.001, that is on private property and is no larger than 50 square feet;(9) a sign that is required by the Railroad Commission of Texas at the principal entrance to or on each oil or gas producing property, well, tank, or measuring facility to identify or to locate the property, that is no larger in size than is necessary to comply with the Railroad Commission's regulations, and that has no advertising or information content other than the name or logo of the company and the necessary directions;(10) a sign that shows only the name of a ranch on which livestock are raised or a farm on which crops are grown and the directions to, telephone number, or internet address of the ranch or farm and that has a sign face that does not exceed an area of 32 square feet;(11) a sign identifying the name of a recorded subdivision located at an entrance to the subdivision or on property owned by or assigned to the subdivision, home owners association, or other entity associated with the subdivision;(12) a sign of a nonprofit service club, charitable association, religious organization, chamber of commerce, or nonprofit museum that gives information about the meetings, services, events, or locations of the entity and that does not exceed an area of 32 square feet;(13) a public service sign that:(A) is located on a school bus stop seating bench or shelter;(B) identifies the donor, sponsor, or contributor of the shelter;(C) contains a public service message that occupies at least 50 percent of the area of the sign;(D) has no content other than that described by subparagraphs (B) and (C) of this paragraph;(E) is authorized or approved by the law of the entity that controls the highway involved, including being located at a place approved by the entity;(F) has a sign face that does not exceed an area of 32 square feet; and(G) is not facing the same direction as any other sign on that seating bench or shelter;(14) a sign that is erected and maintained by a public school, or a college or university, or a non-profit agricultural fair, but only if the information presented on the sign is limited to information about the meetings, services, events, or on premise activities of the entity, and the total area of the sign's face facing a particular direction of travel does not exceed 200 square feet; and(15) a sign that:(A) is located on the sign owner's real property;(B) does not result in any monetary benefit for the owner or material benefit to a third-party;(C) does not relate to a public election;(D) has no more than a single sign face fronting a particular direction of travel; and(E) has no single sign face that exceeds 96 square feet.(b) An on-premise sign that meets the criteria provided by §21.442 of this subchapter (relating to On-premise Sign) cannot be erected earlier than one year before the date that the business for which the sign is erected will open and conduct business.</content><note type="source"><p>Source Note: The provisions of this §21.405 adopted to be effective July 1, 2011, 36 TexReg 2418; amended to be effective April 19, 2012, 37 TexReg 2687; amended to be effective October 12, 2014, 39 TexReg 7954.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.406"><num value="21.406">§21.406</num><heading>Exemptions for Certain Populous Counties</heading><content>(a) This subchapter does not apply to an off-premise portable sign in an unincorporated area of a county with a population of 3.3 million or more, according to the most recent federal census, if the county either prohibits or regulates the location, height, size, anchoring, or use of such a portable sign.(b) This subchapter does not apply to an on-premise sign in an unincorporated area of a county with a population of 3.3 million or more or a county that borders such a county if:(1) the county has adopted an ordinance to regulate on-premise signs; or(2) the commissioner's court of the county, by order, has authorized the commission to regulate on-premise signs in the unincorporated area of the county in accordance with a municipal or county regulation.</content><note type="source"><p>Source Note: The provisions of this §21.406 adopted to be effective July 1, 2011, 36 TexReg 2418; amended to be effective January 5, 2012, 36 TexReg 9349.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.407"><num value="21.407">§21.407</num><heading>Existing Off-Premise Signs</heading><content>(a) A sign that existed before September 1, 1985 and that was registered not later than December 30, 1985 does not require a permit issued under this subchapter as long as the registration remains valid.(b) The sign registration is valid only for the location indicated on the original registration application and only for the sign described on that application.(c) The sign registration must be renewed on or before January 1 of the year of its expiration.(d) The registration will automatically terminate if:(1) the sign is removed for any reason other than to change the advertising;(2) the registration is not renewed; or(3) the sign is replaced with another structure.(e) To renew the registration, the holder must:(1) file a written request, on the form prescribed by the department;(2) submit a renewal fee of $10 per year for a period of up to five years; and(3) display the registration number on the sign structure in numerals with a minimum height of two inches and a minimum width of one inch.(f) The registration allows for routine and customary repairs and maintenance as provided under §21.434 of this subchapter (relating to Repair and Maintenance), but substantial changes are not authorized for existing signs. An amended permit under §21.423 of this subchapter (relating to Amended Permit) must be obtained prior to performing any customary repairs or maintenance.(g) The owner of an off-premise sign that was in existence before September 1, 1985 and not duly registered or the registration for which was timely renewed shall remove the sign at the owner's expense upon written notification by the department, unless it is an exempt sign.(h) The registration of a sign may be transferred upon filing with the department, on a form prescribed by the department, a request for the transfer and payment of the transfer fee.</content><note type="source"><p>Source Note: The provisions of this §21.407 adopted to be effective July 1, 2011, 36 TexReg 2418.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.408"><num value="21.408">§21.408</num><heading>Continuance of Nonconforming Signs</heading><content>(a) Notwithstanding other provisions of this subchapter, the department will renew a permit for a nonconforming sign only if the sign structure:(1) was lawful on the later of the date it was erected or became subject to the control of the department; and(2) remains substantially the same as it was on the later of the date it was erected, became subject to the department's control, or became a nonconforming sign due to change in statute, rule, or condition.(b) A nonconforming sign may not be:(1) removed and re-erected for any reason, other than a request by a governmental entity; or(2) substantially changed, as described by §21.434 of this subchapter (relating to Repair and Maintenance).</content><note type="source"><p>Source Note: The provisions of this §21.408 adopted to be effective July 1, 2011, 36 TexReg 2418.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.409"><num value="21.409">§21.409</num><heading>Permit Application</heading><content>(a) To obtain a permit for a sign, a person must file an electronic application through the department's website, www.txdot.gov. The application, at a minimum, must include:(1) the complete name and address of the license holder;(2) the complete name and address of the authorized agent of the license holder, if an agent is used;(3) the proposed location and description of the sign;(4) the complete legal name, email address, and telephone number of the owner of the designated site;(5) the appraisal district property tax identification number of the designated site;(6) the original signature of the site owner or the site owner's authorized representative, with appropriate documentation from the site owner authorizing the person to act as the site owner's representative on the application demonstrating:(A) consent to the erection and maintenance of the sign; and(B) right of entry onto the property of the sign location by the department or its agents;(7) information that details how and the location from which the sign will be erected and maintained; and(8) additional information the department considers necessary to determine eligibility.(b) The application must be accompanied by the fee prescribed by §21.424 of this subchapter (relating to Permit Fees).(c) To facilitate a site's location during the initial inspection process, the application must identify the sign site by:(1) GPS coordinates in latitude and longitude, accurate within 50 feet; or(2) a sketch or aerial map depicting distances to nearby landmarks.</content><note type="source"><p>Source Note: The provisions of this §21.409 adopted to be effective July 1, 2011, 36 TexReg 2418; amended to be effective April 19, 2012, 37 TexReg 2687; amended to be effective June 19, 2014, 39 TexReg 4668; amended to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.410"><num value="21.410">§21.410</num><heading>Site Owner's Consent; Withdrawal</heading><content>(a) A site owner's consent to the erection and maintenance of the sign and access to the site by the department or its agent is provided with a permit application under §21.409 of this subchapter (relating to Permit Application). The consent operates for the life of the lease or until the owner delivers to the department and the sign owner a written statement that permission for the maintenance or inspection by the department or its agents of the sign has been withdrawn and documentation showing that the lease allowing the sign has been terminated in accordance with the terms of the lease agreement or through a court order.(b) If the sign owner provides documentation that the sign owner is disputing the lease termination, the department will not cancel the permit until a settlement signed by both parties or a court order settling the dispute is delivered to the department.</content><note type="source"><p>Source Note: The provisions of this §21.410 adopted to be effective July 1, 2011, 36 TexReg 2418.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.411"><num value="21.411">§21.411</num><heading>Applicant's Identification of Proposed Site</heading><content>(a) An applicant for a permit for a new sign must identify the proposed site of the sign by setting a stake or marking the concrete at the proposed location of the edge of the sign structure, including the sign face, that is nearest the right of way.(b) At least two feet of the stake must be visible above the ground. The stake or the mark must be distinguished from any other stake or mark at the location.(c) A stake or marking may not be moved or removed until the application is denied or, if approved, until the sign has been erected.</content><note type="source"><p>Source Note: The provisions of this §21.411 adopted to be effective July 1, 2011, 36 TexReg 2418; amended to be effective April 19, 2012, 37 TexReg 2687.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.412"><num value="21.412">§21.412</num><heading>Permit Application Review</heading><content>(a) The department will consider permit applications in the order of the receipt of the applications.(b) If an application is rejected because it is not complete or has incorrect information, the application loses its priority position and a copy of the application will be sent to the applicant outlining the reasons the application was rejected.(c) The department will hold an application that is for the same site as or a conflicting site with that of an application that the department previously received until the department makes a final decision on the previously received application. The department will notify the applicant that the applicant's application is being held because an application for the same or a conflicting site was previously received. For the purposes of this subsection, the date of a final decision on an application is:(1) the date of the final decision on an appeal under §21.418 of this subchapter (relating to Appeal Process for Permit Denials); or(2) if an appeal is not filed within the period provided by §21.418 of this subchapter, on the 46th day after the date the denial notice was received under §21.413 of this subchapter (relating to Decision on Application).(d) The department will review the permit application for completeness, correctness, and compliance with all requirements of this subchapter. Measurements will be taken at the site to determine if the sign placement meets the spacing and location requirements.(e) If an applicant has indicated on the permit application that an existing sign structure that causes conflict with the new designated sign site will be removed, the department may provide a conditional approval in writing to the applicant if all other requirements of this subchapter are met.</content><note type="source"><p>Source Note: The provisions of this §21.412 adopted to be effective July 1, 2011, 36 TexReg 2418; amended to be effective June 19, 2014, 39 TexReg 4668.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.413"><num value="21.413">§21.413</num><heading>Decision on Application</heading><content>(a) The department will make a decision on an application within 60 days of the date of receipt of the application. If the decision cannot be made within the 60 day period, the department will notify the applicant of the delay providing the reason for the delay, and provide an estimate of when the decision will be made.(b) If the permit application is approved, the department will issue a permit for the sign by sending a copy of the approved application to the applicant.(c) If the permit application is not approved, the department will send a copy of the denied application and a notice that states the reason for the denial.(d) If the permit application is denied, the department will notify the landowner identified on the permit application of the denial by written notice. The notice is for informational purposes only, and does not convey any rights to the landowner. The landowner may not appeal the denial unless the landowner is also the applicant.</content><note type="source"><p>Source Note: The provisions of this §21.413 adopted to be effective July 1, 2011, 36 TexReg 2418; amended to be effective June 19, 2014, 39 TexReg 4668.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.415"><num value="21.415">§21.415</num><heading>General Sign Location Requirements</heading><content>The department will not issue a permit under this subchapter unless the sign for which application is made is located along a roadway to which Transportation Code, Chapter 394 applies and is within 800 feet of a recognized commercial or industrial activity located on the same side of the roadway.</content><note type="source"><p>Source Note: The provisions of this §21.415 adopted to be effective July 1, 2011, 36 TexReg 2418.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.416"><num value="21.416">§21.416</num><heading>Commercial or Industrial Activity</heading><content>(a) For the purposes of this subchapter, a governmental, commercial or industrial activity is an activity that:(1) is customarily allowed only in a zoned commercial or industrial area; and(2) is conducted in a permanent building or structure affixed to the real property that:(A) has an indoor restroom, running water, functioning electrical connections, and permanent flooring, other than dirt, gravel, or sand;(B) is visible from the traffic lanes of the main-traveled way;(C) is not primarily used as a residence;(D) has at least 400 square feet of its interior floor space devoted to the activity; and(E) is within 200 feet of the highway right of way.(b) For the purposes of this subchapter, a building or structure is considered permanently affixed if:(1) it has an attached septic field or is part of a sewer system, or is considered to be real property by the county appraisal district; or(2) all of the following requirements are met:(A) it has no wheels attached;(B) it does not have a towing device, such as hitch or tongue; and(C) it has anchoring straps or cables affixed to the ground using pier footing.(c) The following are not commercial or industrial activities:(1) agricultural, forestry, ranching, grazing, farming, and related activities, including the operation of a temporary wayside fresh produce stand;(2) an activity that is conducted only seasonally;(3) an activity that has not been conducted at its present location for at least 180 days;(4) an activity that is not conducted by at least one person at the activity site, and that is not operated for at least 30 hours per week and on at least four days per week;(5) the operation or maintenance of:(A) an outdoor advertising structure;(B) a recreational facility, such as a campground, golf course, tennis court, wild animal park, or zoo, other than the related activities conducted in a building or structure that meets the requirements of subsection (a)(2) of this section and the parking facilities for that building or structure;(C) an apartment house or residential condominium;(D) a public or private preschool, secondary school, college, or university, other than a trade school or corporate training campus;(E) a quarry or borrow pit, other than the related activities conducted in a building or structure that meets the requirements of subsection (a)(2) of this section and the parking facilities for that building or structure;(F) a cemetery; or(G) a place that is primarily used for worship;(6) an activity that is conducted on a railroad right of way; and(7) an activity that is created primarily or exclusively to qualify an area as an unzoned commercial or industrial area.(d) For the purposes of this section, a building is not primarily used as a residence if more than 50 percent of the building's square footage is used solely for the business activity.(e) A sign is not required to meet the requirements of subsection (a)(2)(C) (as clarified by subsection (d) of this section), (a)(2)(D), (c)(3), or (c)(4) of this section to maintain conforming status if the permit for the sign was issued before the effective date of this section.</content><note type="source"><p>Source Note: The provisions of this §21.416 adopted to be effective July 1, 2011, 36 TexReg 2418; amended to be effective April 19, 2012, 37 TexReg 2687; amended to be effective June 19, 2014, 39 TexReg 4668.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.417"><num value="21.417">§21.417</num><heading>Erection and Maintenance from Private Property</heading><content>(a) The department will not issue a permit for a sign unless it can be erected and maintained from private property that the license holder accesses by:(1) a permitted driveway on a state-maintained roadway;(2) a roadway that is not state maintained; or(3) documented legal access through adjoining private property.(b) If, after a permit is issued, the department finds evidence that the license holder accessed private property on which the sign is located by means other than one listed in subsection (a) of this section, the department will cancel the permit under §21.425 of this subchapter (relating of Cancellation of Permit).(c) This section does not apply to the maintenance of a sign that is on railroad right of way and to which §21.408(a) of this subchapter (relating to Continuance of Nonconforming Signs) applies if:(1) crossing the state's right of way line is the only available access to the sign; and(2) the permit holder notifies and obtains approval of the department before accessing the sign for maintenance.</content><note type="source"><p>Source Note: The provisions of this §21.417 adopted to be effective July 1, 2011, 36 TexReg 2418; amended to be effective June 19, 2014, 39 TexReg 4668; amended to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.418"><num value="21.418">§21.418</num><heading>Appeal Process for Permit Denials</heading><content>(a) If a sign permit is denied, the applicant may file a request with the executive director for an appeal.(b) The request for appeal must:(1) be in writing;(2) contain:(A) a copy of the denied permit application;(B) a statement of why the denial is believed to be in error; and(C) evidence that supports the issuance of the application, such as drawings, surveys, or photographs; and(3) be received within 45 days after the date the denial notice was received.(c) The executive director or the executive director's designee, who may not be below the level of assistant executive director, will make a final determination on the appeal within 60 days after the date that the executive director receives the request for appeal. If the final determination is that the permit is denied, the executive director or the executive director's designee will send the final determination to the applicant stating the reason for denial. If the final determination is that the application be approved, the department will issue the permit in accordance with §21.413 of this subchapter (relating to Decision on Application).(d) If the executive director or the designee is unable to make a final determination on the appeal within the 60-day period under subsection (c) of this section, the department will notify the applicant by mail of the delay and provide an estimated time in which a final determination will be made.</content><note type="source"><p>Source Note: The provisions of this §21.418 adopted to be effective July 1, 2011, 36 TexReg 2418.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.419"><num value="21.419">§21.419</num><heading>Request for a Variance</heading><content>(a) An applicant may request that the executive director approve a variance from the requirements of this subchapter if the applicant believes that a minor exception to this subchapter is required to prevent a substantial injustice.(b) The executive director or the executive director's designee, who must be a person who holds a senior leadership position of the department and reports directly to the executive director, will consider all relevant written evidence submitted by the applicant and collected by the department relating to the request.(c) The executive director or the designee will make a final determination on the request for a variance within 60 days of the receipt of the request.(d) If the executive director or the designee is unable to make a final determination on the request within the 60-day period, the department will notify the applicant by mail of the delay and provide an estimated time in which a final determination will be made.(e) If the variance is granted and the other applicable requirements are satisfied, the department will issue the permit.(f) A denial of a variance is final and is not appealable.</content><note type="source"><p>Source Note: The provisions of this §21.419 adopted to be effective April 19, 2012, 37 TexReg 2687.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.422"><num value="21.422">§21.422</num><heading>Transfer of Permit</heading><content>(a) A sign permit may be transferred only with the written approval of the department.(b) The permit holder must send to the department a written request to transfer a sign permit in a form prescribed by the department accompanied by the applicable fees prescribed by §21.424 of this subchapter (relating to Permit Fees).(c) At the time of the transfer, both the transferor and the transferee must hold a valid license issued under §21.153 of this chapter (relating to License Issuance) or §21.450 of this subchapter (relating to License Issuance), except as provided by subsections (f) - (h) of this section.(d) The documentation and fee required under this section must be sent to: Texas Department of Transportation, Outdoor Advertising, P.O. Box 13043, Austin, Texas 78711-3043.(e) If the request is approved, the department will send to the transferor and to the transferee a copy of the approved permit transfer form.(f) A permit issued to a nonprofit organization under §21.457 of this subchapter (relating to Nonprofit Sign Permit) may be transferred to another nonprofit organization that does not hold a license issued under §21.153 of this chapter or §21.450 of this subchapter, if the sign will be maintained as a nonprofit sign.(g) A permit issued to a nonprofit organization under §21.457 of this subchapter may be converted to a regular permit and transferred to a person that is not a nonprofit organization if the transferee holds a license for the county in which the sign is located at the time of the transfer and the sign meets all of the requirements of this subchapter.(h) The department may approve the transfer of one or more sign permits from a transferor to a person who holds a license, with or without the signature of the transferor, if the person provides to the department:(1) legal documents showing the sign has been sold;(2) documents that indicate that the transferor is dead or cannot be located; or(3) a court order demonstrating the new ownership of the sign permit.(i) The department will not approve the transfer if cancellation of the permit is pending or has been abated awaiting the outcome of an administrative hearing.(j) The department will approve a transfer only if the permit is valid.</content><note type="source"><p>Source Note: The provisions of this §21.422 adopted to be effective July 1, 2011, 36 TexReg 2418; amended to be effective April 19, 2012, 37 TexReg 2687; amended to be effective June 19, 2014, 39 TexReg 4668.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.423"><num value="21.423">§21.423</num><heading>Amended Permit</heading><content>(a) To perform customary maintenance or to make substantial changes to the sign or sign structure under §21.434 of this subchapter (relating to Repair and Maintenance) a permit holder must obtain an amended permit before initiating any action to the sign structure.(b) To obtain an amended permit, the permit holder must submit an amended permit application on a form prescribed by the department. The amended permit application must provide the information required under §21.409 of this subchapter (relating to Permit Application) applicable to an amended permit and indicates the change from the information in the original application for the sign permit. The amended application is not required to obtain the signature of the landowner.(c) The new sign face size, configuration, height, lighting, or location must meet all applicable requirements of this subchapter.(d) The holder of a permit for a nonconforming sign may apply for an amended permit to perform eligible customary maintenance under §21.434 of this subchapter. An amended permit will not be issued for a substantial change, as described by §21.434(c) of this subchapter, to a nonconforming sign.(e) Making a change to a sign, except as provided by subsection (h) of this section, without first obtaining an amended permit is a violation of this subchapter and will result in an administrative enforcement action.(f) The department will make a decision on an amended permit application within 90 days of the date receipt of the amended permit application. If the decision cannot be made within the 90-day period the department will notify the applicant of the delay, provide the reason for the delay, and provide an estimate for when the decision will be made.(g) If an amended permit application is denied, the applicant may file a request with the executive director for an appeal using the same procedures found in §21.167 of this chapter (relating to Appeal Process for Application Denials).(h) In the event of a natural disaster the department may waive the requirement that a required amended permit be issued prior to the repair of a conforming sign. If the department waives this requirement, the amended permit must be submitted within 90 days of the completion of the repairs. If the repairs are in violation of these rules, or the permit holder fails to submit the amended permit application, the sign is subject to enforcement and removal actions.(i) An amended permit is valid for one year after the date of the department's approval of the amended permit application. The date of the department's approval of the amended permit application is considered to be the amended permit's date of issuance.(j) The documentation and fee required under this section must be sent to: Texas Department of Transportation, Outdoor Advertising, P.O. Box 13043, Austin, Texas 78711-3043.(k) If a sign is built with a smaller face than the size shown on the permit application or if the face is reduced in size after it is built, an amended permit will be required to increase the size of the face.</content><note type="source"><p>Source Note: The provisions of this §21.423 adopted to be effective July 1, 2011, 36 TexReg 2418; amended to be effective April 19, 2012, 37 TexReg 2687; amended to be effective June 19, 2014, 39 TexReg 4668; amended to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.424"><num value="21.424">§21.424</num><heading>Permit Fees</heading><content>(a) The amounts of the fees related to permits under this subchapter are:(1) $100 for a new or amended permit application for a sign;(2) $25 for the transfer of a permit; and(3) $10 for a new or amended permit application for a nonprofit sign.(b) A fee prescribed by this section is payable by credit card or electronic check. If payment is dishonored upon presentment, the permit, amended permit, or transfer is voided.</content><note type="source"><p>Source Note: The provisions of this §21.424 adopted to be effective July 1, 2011, 36 TexReg 2418; amended to be effective June 19, 2014, 39 TexReg 4668; amended to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.425"><num value="21.425">§21.425</num><heading>Cancellation of Permit</heading><content>(a) The department will cancel a permit for a sign if the sign:(1) is removed, unless the sign is removed and re-erected at the request of a condemning authority;(2) is not maintained in accordance with this subchapter or Transportation Code, Chapter 394;(3) is damaged beyond repair, as determined under §21.439 of this subchapter (relating to Discontinuance of Sign Due to Destruction);(4) is abandoned, as determined under §21.427 of this subchapter (relating to Abandonment of Sign);(5) has substantial changes made to a non-conforming sign in violation of this subchapter or Transportation Code, Chapter 394;(6) is built by an applicant who uses false information on a material issue of the permit application;(7) is erected, repaired, substantially changed, or maintained in violation of this subchapter, including under §21.417 of this subchapter (relating to Erection and Maintenance from Private Property), §21.423 of this subchapter (relating to Amended Permit), or §21.441 of this subchapter (relating to Destruction of Vegetation and Access from Right of Way Prohibited), or in violation of Transportation Code, Chapter 394;(8) has been made more visible by the permit holder clearing vegetation from the highway right of way in violation of §21.441 of this subchapter;(9) is in an unzoned commercial or industrial area and the department has evidence that an activity supporting the unzoned commercial or industrial area was created primarily or exclusively to qualify the area as an unzoned commercial or industrial area, and that no activity has been conducted at the site within one year; or(10) site cannot be accessed from private property.(b) The department may cancel a permit for a sign if the sign:(1) is erected after the effective date of this section and is more than twenty feet from the location described in the permit application, or is built within twenty feet of the location described in the permit application but at a location that does not meet all spacing requirements of this chapter or other assertions contained in the permit application;(2) has customary repairs made to a non-conforming sign, or substantial changes made to a conforming sign without obtaining a required amended permit under §21.423 of this subchapter (relating to Amended Permit); or(3) is erected, repaired, or maintained from the right of way.(c) Before initiating an enforcement action under this section, the department will notify a sign owner in writing of a violation of subsection (b) of this section and will give the sign owner 90 days to correct the violation, provide proof of the correction, and if required, obtain an amended permit from the department.(d) Upon determination that a permit should be canceled, the department will mail a notice of cancellation to the address of the record license holder. The notice must state:(1) the reason for the cancellation;(2) the effective date of the cancellation;(3) the right of the permit holder to request an administrative hearing on the cancellation; and(4) the procedure for requesting a hearing and the period for filing the request.(e) A request for an administrative hearing under this section must be in writing and delivered to the department within 45 days after the date that the notice of cancellation is received.(f) If timely requested, an administrative hearing will be conducted in accordance with Chapter 1, Subchapter E of this title (relating to Procedures in Contested Case) and the cancellation will be abated until the cancellation is affirmed by order of the commission.(g) A permit holder may voluntarily cancel a permit by submitting a request in writing after the sign for which the permit was issued has been removed. Subsections (d)-(f) of this section do not apply to a permit voluntarily canceled under this subsection.(h) The department will notify the landowner identified on the permit application of a cancellation enforcement action. The notice is for informational purposes only and does not convey any rights to the landowner. The landowner may not appeal the cancellation unless the landowner is also the permit holder.</content><note type="source"><p>Source Note: The provisions of this §21.425 adopted to be effective July 1, 2011, 36 TexReg 2418; amended to be effective June 19, 2014, 39 TexReg 4668; amended to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.426"><num value="21.426">§21.426</num><heading>Administrative Penalties</heading><content>(a) The department may impose administrative penalties against a person who violates Transportation Code, Chapter 394 or this subchapter.(b) The amount of the administrative penalty may not exceed the maximum amount of a civil penalty that may be assessed under Transportation Code, §394.081.(c) In addition to the penalties assessed under subsection (b) of this section, the department may seek to recover the cost of repairing any damage to the right of way done by the sign owner or on the sign owner's behalf.(d) Before initiating an enforcement action under this section, the department will notify the sign owner in writing of a violation of subsection (b)(1) or (2)(B) of this section and will give the sign owner 90 days to correct the violation and provide proof of the correction to the department.(e) Upon determination to seek administrative penalties the department will mail a notice of the administrative penalties to the last known address of the permit holder. The notice must clearly state:(1) the reasons for the administrative penalties;(2) the amount of the administrative penalty; and(3) the right of the holder of the permit to request an administrative hearing.(f) A request for an administrative hearing under this section must be made in writing and received by the department not later than the 90th day after the date the notice of administrative penalties is sent.(g) If timely requested, an administrative hearing shall be conducted in accordance with Chapter 1, Subchapter E of this title (relating to Procedures in Contested Case), and the imposition of administrative penalties will be abated unless and until that action is affirmed by order of the commission.</content><note type="source"><p>Source Note: The provisions of this §21.426 adopted to be effective July 1, 2011, 36 TexReg 2418; amended to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.427"><num value="21.427">§21.427</num><heading>Abandonment of Sign</heading><content>(a) The department may consider a sign abandoned and cancel the sign's permit if:(1) the sign face is blank or without legible advertising or copy for a period of 365 consecutive days or longer; or(2) the sign needs to be repaired or is overgrown by trees or other vegetation.(b) Small temporary signs, such as garage sale signs or campaign signs, that are attached to the structure do not constitute legible advertising or copy for the purpose of ending the period under subsection (a)(1) of this section.(c) The department will not consider the payment of property taxes or the retention of a sign as a balance sheet asset in determining whether the sign permit should be canceled under this section.(d) The department may initiate the cancellation process if the department has evidence that supports the fact that the sign face has been blank or has been without legible advertisement or copy for 365 days, such as photographs showing that, on at least four dates throughout the 365-day period, the sign was in the same condition or was degrading. Evidence is not required for each of the 365 days.(e) If the location of the abandoned sign is allowed under this subchapter, the department may issue a permit for the sign site to anyone who submits an application that meets the requirements of this subchapter. The department will not issue a permit for an abandoned sign that is located in a place that does not meet the requirements of this subchapter.(f) For the purposes of this section "copy" includes any advertisement that the sign is available for lease.(g) A multi-face sign is not abandoned unless all sign faces may be considered abandoned under this section.(h) Before initiating the cancellation process under this section, the department will provide notice to the sign owner and land owner as identified on the permit application of the abandonment determination and allow the sign owner 60 days to correct the issue.</content><note type="source"><p>Source Note: The provisions of this §21.427 adopted to be effective July 1, 2011, 36 TexReg 2418.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.428"><num value="21.428">§21.428</num><heading>Sign Face Size and Positioning</heading><content>(a) An off-premise sign face may not exceed:(1) 672 square feet in area;(2) 25 feet in height; and(3) 60 feet in length.(b) For the purposes of subsection (a) of this section, border and trim are included as part of the sign face, and the base, apron, supports, and other structural members are excluded as part of the sign face.(c) Notwithstanding the area limitation provided by subsection (a)(1) of this section, one or more temporary protrusions may be added to a sign, provided that the sign face, including the protrusions, meets the height and length limitations of subsection (a) of this section and:(1) the area of a protrusion is located exclusively inside of the sign face border and trim; or(2) the area of the protrusion is outside of the sign face border and trim, as indicated on the sign permit, and does not exceed 10 percent of the permitted area.(d) A sign may not be erected that has more than two faces fronting a particular direction of travel on the main-traveled way.(e) A sign erected in a back-to-back or V-type configuration, may have only one face fronting a particular direction of travel.(f) A sign face that exceeds 454 square feet in area, including cutouts, may not be stacked on or placed side by side with another sign face. Two sign faces may not be stacked or placed side by side if combined they exceed 700 square feet in area.(g) A sign face may consist of commercial electronic variable message signs (CEVMS), otherwise referred to as rotating slat signs or tri-vision signs, provided that the rotation is completed within one second and the message is stationary for at least 10 seconds following a rotation.(h) A sign may not have a moveable protrusion in this subchapter.</content><note type="source"><p>Source Note: The provisions of this §21.428 adopted to be effective July 1, 2011, 36 TexReg 2418; amended to be effective June 19, 2014, 39 TexReg 4668.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.429"><num value="21.429">§21.429</num><heading>Spacing of Signs</heading><content>(a) A permitted off-premise sign having a sign face area of at least 301 square feet may not be located within 1,500 feet of another permitted off-premise sign on the same side of the roadway.(b) A permitted off-premise sign having a sign face area of at least 100 but less than 301 square feet may not be located within 500 feet of another permitted off-premise sign having a sign face within that range or within 1500 feet of a permitted off-premise sign that has a sign face of at least 301 square feet and is on the same side of the roadway.(c) A permitted off-premise sign having a face area of less than 100 square feet may not be located within 150 feet of another permitted off-premise sign having a sign face of less than 100 square feet, within 500 feet of a permitted sign with a face area of at least 100 but less than 301 square feet, or within 1,500 feet of a permitted off-premise sign with a face area of at least 301 square feet that is on the same side of the roadway.(d) Two signs located at the same intersection do not violate this section if they:(1) are located so that their messages are not directed toward traffic flowing in the same direction; and(2) are not visible from the main-traveled way of an interstate or federal-aid primary highway.(e) For the purposes of this section, the space between signs is measured between points along the right of way of the roadway perpendicular to the center of the signs.(f) The spacing requirements of this section do not apply to signs separated by buildings, natural surroundings, or other obstructions in a manner that causes only one of the signs to be visible within the specified spacing area.(g) An off-premise sign may not be erected within five feet of a rural road right-of-way line. This distance will be measured from the edge of the sign face nearest to the right of way line.(h) An off-premise sign must be erected within 800 feet of at least one recognized commercial or industrial activity. The commercial or industrial activity must be on the same side of the rural road as the sign.(i) Distance from the commercial or industrial activity is measured from the outer edges of the regularly used buildings, parking lots, storage facilities, or processing areas of the commercial or industrial activity. Measurements are not made from the property line unless the property lines coincide with the regularly used portions of the activity.(j) A sign may not be located in a place that creates a safety hazard, including a location that:(1) is likely to cause a driver to be unduly distracted;(2) obscures or interferes with the effectiveness of an official traffic sign, signal, or device; or(3) obstructs or interferes with the driver's view of approaching, merging, or intersecting roadway or rail traffic.(k) A sign may not be located in an area that is adjacent to or within 1,000 feet of a rest area.(l) The distance from a rest area is measured along the right of way line from the outer edges of the rest area boundary abutting the right of way.(m) The center of a sign may not be located within 250 feet of the nearest point of the boundary of a public park.(n) This subsection applies only if a public park boundary abuts the right of way of a regulated highway. A sign may not be located within 1,500 feet of the boundary of the public park, as measured along the right of way line from the nearest common point of the park's boundary and the right of way. This limitation applies on both sides of the rural road.(o) A permitted sign that is being displaced by a highway construction project will not be considered in determining the spacing for a new sign application.</content><note type="source"><p>Source Note: The provisions of this §21.429 adopted to be effective July 1, 2011, 36 TexReg 2418; amended to be effective April 19, 2012, 37 TexReg 2687.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.430"><num value="21.430">§21.430</num><heading>Multiple Faced Signs</heading><content>(a) For spacing purposes, multiple faced off-premise signs under common ownership, whether double-faced, back-to-back, or of V-type construction, are considered to be one sign and the combined face area of the signs will be used to determine spacing requirements provided the sign faces are:(1) physically contiguous;(2) connected by the same structure or by cross-bracing; or(3) located not more than 15 feet apart at their nearest point.(b) For computing sign face area under §21.428 of this subchapter (relating to Sign Face Size and Positioning) each sign face of a double-faced, back-to-back, or V-type sign is considered to be a separate sign.(c) If a nonconforming sign has two sign faces fronting the same direction of travel, the sign face area of both signs will be used to determine the sign spacing requirements.</content><note type="source"><p>Source Note: The provisions of this §21.430 adopted to be effective July 1, 2011, 36 TexReg 2418.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.432"><num value="21.432">§21.432</num><heading>Height Restrictions</heading><content>(a) Except as provided in subsection (f) of this section a sign may not be erected that exceeds an overall height of 42-1/2 feet.(b) A roof sign that has a solid sign face surface may not at any point exceed 24 feet above the roof level.(c) A roof sign that has an open sign face in which the uniform open area between individual letter or shapes is not less than 40 percent of the total gross area of the sign face may not at any point exceed 40 feet above the roof level.(d) The lowest point of a projecting roof sign or a wall sign must be at least 14 feet above grade.(e) For the purposes of this section, height is measured from the grade level of the centerline of the main-traveled way closest to the sign, at a point perpendicular to the sign location.(f) The height measurement does not include any renewable energy device such as solar panels or wind turbines that are attached to the sign structure above the sign face to improve the energy efficiency of the sign structure.</content><note type="source"><p>Source Note: The provisions of this §21.432 adopted to be effective July 1, 2011, 36 TexReg 2418.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.433"><num value="21.433">§21.433</num><heading>Lighting of and Movement on Signs</heading><content>(a) A sign may not contain or be illuminated by any flashing, intermittent, or moving lights, including any type of screen using animated or scrolling displays, except that this subsection does not apply to a sign that only provides public service information, such as time, date, temperature, or weather, or similar information.(b) Except for a relocated sign, any new sign may be illuminated but only by:(1) upward lighting of no more than four luminaires per direction of the sign face or faces of the structure; or(2) downward lighting of no more than four luminaires per direction of the sign face or faces of the structure.(c) Lights that are a part of or illuminate a sign:(1) must be shielded, directed, and positioned to prevent beams or rays of light from being directed at any portion of the traveled ways of a regulated rural road;(2) may not be of such intensity or brilliance as to cause vision impairment of a driver of any motor vehicle on a regulated rural road or otherwise interfere with the driver's operation of a motor vehicle; and(3) may not obscure or interfere with the effectiveness of an official traffic sign, device, or signal.(d) A temporary protrusion may not be illuminated by flashing or moving lights or enhanced by reflective material that creates the illusion of flashing or moving lights.(e) Reflective paint or reflective disks may be used on a sign face only if the paint or disks do not:(1) create the illusion of flashing or moving lights; or(2) cause an undue distraction to the traveling public.(f) A neon light may be used on a sign face only if:(1) the light does not flash;(2) the light does not cause an undue distraction to the traveling public; and(3) the permit for the sign specifies that the sign is an illuminated sign.(g) This subchapter does not prohibit a temporary protrusion area of the sign face that displays only numerical characters and that satisfies this subsection and the requirements of §21.428 of this subchapter (relating to Sign Face Size and Positioning). The display on the temporary protrusion may be a digital or other electronic display, but if so:(1) it must consist of a stationary image;(2) it may not change more frequently than four times in any 24 hour period; and(3) the process of any change of display must be completed within two minutes.</content><note type="source"><p>Source Note: The provisions of this §21.433 adopted to be effective July 1, 2011, 36 TexReg 2418; amended to be effective June 19, 2014, 39 TexReg 4668.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.434"><num value="21.434">§21.434</num><heading>Repair and Maintenance</heading><content>(a) The following are considered to be routine maintenance activities that do not require an amended permit:(1) the replacement of nuts and bolts;(2) nailing, riveting, or welding;(3) cleaning and painting;(4) manipulation of the sign structure to level or plumb it;(5) changing of the advertising message;(6) the replacement of minor parts if the materials of the minor parts are the same type as those being replaced and the basic design or structure of the sign is not altered;(7) changing all or part of the sign face structure but only if materials similar to those of the sign face being replaced are used; and(8) upgrading existing lighting for an energy efficient lighting system.(b) The following are considered to be customary maintenance activities that may be made but require an amended permit prior to the initiation of such an activity:(1) replacement of poles, but only if not more than one-half of the total number of poles of the sign structure are replaced in any 12 month period and the same material is used for the replacement poles; and(2) adding a catwalk to the sign structure.(c) The following are examples of substantial changes that may be made but require an amended permit before the initiation of such an activity:(1) adding lights to an un-illuminated sign or adding additional lights or adding more intense lighting to an illuminated sign whether or not the lights are attached to the sign structure;(2) changing the number of poles in the sign structure;(3) adding permanent bracing wires, guy wires, or other reinforcing devices;(4) changing the material used in the construction of the sign structure, such as replacing wooden material with metal material;(5) adding faces to a sign or changing the sign configuration;(6) increasing the height of the sign;(7) changing the configuration of the sign structure, such as changing a "V" sign to a stacked or back to back sign, or a single face sign to a back-to back sign; and(8) moving the sign structure or sign face in any way unless the movement is made in accordance with §21.435 of this subchapter (relating to Permit for Relocation of Sign).(d) To add a catwalk to a sign structure the catwalk must meet Occupational Safety and Health Administration guidelines.</content><note type="source"><p>Source Note: The provisions of this §21.434 adopted to be effective July 1, 2011, 36 TexReg 2418; amended to be effective June 19, 2014, 39 TexReg 4668.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.435"><num value="21.435">§21.435</num><heading>Permit for Relocation of Sign</heading><content>(a) A sign may be relocated in accordance with this section, §21.436 of this subchapter (relating to Location of Relocated Sign), and §21.437 of this subchapter (relating to Construction and Appearance of Relocated Sign) if the sign is legally erected and maintained and will be within the highway right of way as a result of a construction project or, under exceptional circumstances as determined by the executive director or the executive director's deputy if the sign is legally erected and maintained and the relocation will further the intended purposes of the Transportation Code, Title 6, Subtitle H, "Highway Beautification."(b) To relocate a sign under this section, the permit holder must obtain a new permit under §21.409 of this subchapter (relating to Permit Application), but the permit fee is waived.(c) To receive a new permit to relocate a sign, the permit holder must submit a new permit application that identifies that the application is for the relocation of an existing sign due to a highway construction project. The new location must meet all local codes, ordinances, and applicable laws.(d) If the permit holder of a sign that must be relocated due to a highway construction project desires to amend the sign structure by following the §21.423 of this subchapter (relating to Amended Permit), they must apply and receive the approved relocation permit from the department before filing for an amended permit.(e) Notwithstanding other provisions of this section, if only a part of a sign will be located within the highway right of way as a result of the construction project, the sign owner may apply to amend an existing permit for the sign to authorize:(1) the adjustment of the sign face on a monopole sign that would overhang the proposed right of way and the required five-foot setback from that location to the land on which the sign's pole is located, including adding a second pole if required to support the adjustment for a legal non-conforming monopole sign;(2) the relocation of the poles and sign face of a multiple pole sign structure that is located in the proposed right of way from the proposed right of way and the required five-foot setback to the land on which the other poles of the sign structure are located; or(3) a reduction in the size of a sign structure that is located partially in the proposed right of way and the required five-foot setback so that the sign structure and sign face are removed from the proposed right of way and the required five-foot setback.(f) A permit for the relocation of a sign must be submitted within 48 months from the earlier of the date the original sign was removed or the date the original sign was required to move. The sign owner is required to continue to renew the sign permit and pay the permit renewal fee for the sign to remain eligible for relocation.(g) To replace an issued and active relocation permit, an operator first must cancel the permit, then must reapply, pay the fee prescribed by §21.424 of this subchapter (relating to Permit Fees), and obtain approval for the new permit in accordance with subsection (a) of this section. The relocation process must be completed within the time requirements of subsection (f) of this section.</content><note type="source"><p>Source Note: The provisions of this §21.435 adopted to be effective July 1, 2011, 36 TexReg 2418; amended to be effective June 19, 2014, 39 TexReg 4668; amended to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.436"><num value="21.436">§21.436</num><heading>Location of Relocated Sign</heading><content>(a) To receive a new permit for relocation, an existing sign must be relocated on a part of the same parcel of land on which the sign was situated before relocation in a location that is allowed under this section.(b) If the sign owner can demonstrate that the location under subsection (a) of this section is not physically or economically feasible for a sign structure, the sign owner, on approval by the department, may relocate the sign to any other location that is allowed under this section. The owner is not entitled to additional relocation benefits under §21.438 of this subchapter (relating to Relocation Benefits) if the sign structure is relocated further than 50 miles from the location of the existing sign.(c) The location of the relocated sign must be within the required distance of a commercial or industrial activity as described by §21.416 of this subchapter (relating to Commercial or Industrial Activity).(d) A sign may not be relocated to a place where it:(1) is likely to cause a driver to be unduly distracted in any way;(2) will obscure or otherwise interfere with the effectiveness of an official traffic sign, signal, or device; or(3) will obstruct or interfere with the driver's view of approaching, merging, or intersecting motor vehicle or rail traffic.(e) A sign may not be relocated from a rural road to a highway that is subject to Subchapter I of this chapter (relating to Regulation of Signs along Interstate and Primary Highways).(f) Spacing requirements of §21.429(a) - (c) of this subchapter (relating to Spacing of Signs) apply to signs relocated under this section.(g) A sign may not be relocated to a place that is:(1) within 500 feet of a public park that is adjacent to a rural road on either side of the roadway; or(2) within five feet of any highway right of way line.</content><note type="source"><p>Source Note: The provisions of this §21.436 adopted to be effective July 1, 2011, 36 TexReg 2418.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.437"><num value="21.437">§21.437</num><heading>Construction and Appearance of Relocated Sign</heading><content>(a) A relocated sign must be constructed with the same number of poles and of the same type of materials as the existing sign. A relocated sign may not exceed the maximum height provided by §21.432 of this subchapter (relating to Height Restrictions). The number of sign faces and lighting, if any, of the relocated sign may not exceed the number of faces or lighting of the existing sign.(b) The size of each of the sign faces of a relocated sign that are visible to approaching traffic may not exceed the size of the existing sign face.(c) The sign faces of a relocated sign may be placed back-to-back, side-by-side, stacked, or in "V" type construction with not more than two displays facing any direction, except that if the area of a sign face exceeds 350 square feet, sign faces may not be stacked or placed side-by-side. The sign structure and sign faces are considered one sign.</content><note type="source"><p>Source Note: The provisions of this §21.437 adopted to be effective July 1, 2011, 36 TexReg 2418.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.438"><num value="21.438">§21.438</num><heading>Relocation Benefits</heading><content>(a) Relocation benefits will be paid in accordance with Subchapter G of this chapter (relating to Relocation Assistance and Benefits) for the relocation of a sign under §21.435 of this subchapter (relating to Permit for Relocation of Sign).(b) The owner of an existing sign that is being relocated must enter into a written agreement with the governmental entity that is acquiring the right-of-way in which the sign is located. In the agreement the owner, in consideration of the payment by the governmental entity of relocation benefits, waives and releases any claim for damages against the governmental entity and the state for any temporary or permanent taking of the sign.</content><note type="source"><p>Source Note: The provisions of this §21.438 adopted to be effective July 1, 2011, 36 TexReg 2418.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.439"><num value="21.439">§21.439</num><heading>Discontinuance of Sign Due to Destruction</heading><content>(a) If a sign is partially destroyed by a natural force outside the control of the permit holder, including wind, tornado, lightening, flood, fire, or hurricane, the department will determine whether the sign can be repaired without an amended permit.(b) The department may require the permit holder to submit an estimate of the proposed work, including an itemized list of the materials to be used and the manner in which the work will be done. The department will allow the sign to be repaired without an amended permit if the department determines that the damage is not substantial. If the damage is determined to be substantial the sign owner must obtain an amended permit under §21.423 of the subchapter (relating to Amended Permit).(c) The department will cancel the existing permit if it determines the damage to the sign is substantial under subsection (g) of this section and an amended permit is not obtained by the sign owner within one year after the date that the department first became aware of the damage.(d) If a permit is canceled under this section or §21.425 of this subchapter (relating to Cancellation of Permit) the remaining sign structure must be dismantled and removed without cost to the state.(e) A sign that is totally or partially destroyed by vandalism or a motor vehicle accident may be rebuilt as described on the most recently approved permit application.(f) If a decision to cancel a permit is appealed, the sign may not be repaired during the appeal process.(g) Damage is considered to be substantial if the cost to repair the sign would exceed 50 percent of the cost to replace it with a sign of the same basic construction using new materials and at the same location.(h) A sign that is partially destroyed by a natural force outside the control of the permit holder in an area that receives a state or federal disaster declaration and the sign owner has documentation to show that the sign damage would not be considered substantial the sign may be repaired without prior determination by the department if, repaired within 180 days of the event and if within 60 days of the completion of the repairs, the owner submits the following:(1) photos of the partially destroyed sign and the repaired sign; and(2) a notarized affidavit executed by the permit holder containing:(A) the permit number of the sign;(B) a statement that the sign was damaged by the natural force;(C) a statement that the cost to repair the sign was less than 60 percent of the cost of a new, sign with the same basic construction; and(D) a statement that the sign was repaired in the same configuration and with like materials according to the most recent approved permit.(i) A sign repaired in violation of this subsection is subject to enforcement and removal.</content><note type="source"><p>Source Note: The provisions of this §21.439 adopted to be effective July 1, 2011, 36 TexReg 2418.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.440"><num value="21.440">§21.440</num><heading>Order of Removal</heading><content>(a) If a sign permit expires without renewal or is canceled or if the sign is erected or maintained in violation of this subchapter, the owner of the sign, on a written demand by the department, shall remove the sign at no cost to the state.(b) If the owner does not remove the sign within 30 days of the day that the demand for removal is sent, the department will remove the sign and will charge the sign owner for the cost of removal, including the cost of any court proceedings.(c) The department will rescind a removal demand if the department determines the demand was issued incorrectly.</content><note type="source"><p>Source Note: The provisions of this §21.440 adopted to be effective July 1, 2011, 36 TexReg 2418.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.441"><num value="21.441">§21.441</num><heading>Destruction of Vegetation and Access from Right of Way Prohibited</heading><content>(a) A person may not:(1) destroy a tree or other vegetation on the right of way for any purpose related to this subchapter; or(2) erect or maintain a sign from the right of way.(b) The department will initiate an enforcement action if the permit holder, or someone acting on behalf of the permit holder, violates this section.(c) It is not a violation to trim the portion of the tree or vegetation that encroaches onto private property at the private property line as long as the trimming occurs from the private property.</content><note type="source"><p>Source Note: The provisions of this §21.441 adopted to be effective July 1, 2011, 36 TexReg 2418.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.442"><num value="21.442">§21.442</num><heading>On-Premise Signs</heading><content>(a) A business may not maintain more than five on-premise signs on a frontage of a single rural road at a single business location.(b) A permit under §21.404 of this subchapter (relating to Permit Required) is not required to erect an on-premise sign.(c) An on-premise sign is a sign that:(1) is located on the real property of a business and consists only of:(A) the name, logo, trademark, telephone number, and internet address of that business; or(B) an identification of that business's principal and accessory products or services offered on the property; or(2) only advertises the sale or lease of the real property on which the sign is located and is removed within 90 days after the date of the closing of the real property transaction.(d) For the purposes of this section, a sign is located on the real property of a business if:(1) the real property on which the sign is located and the real property on which the activity of the business is conducted are one contiguous tract that is under common ownership; or(2) the sign is located on the real property of a commercial development and the businesses of the development share the sign structure of that sign.(e) For the purpose of subsection (d)(1) of this section, real property is not considered to be a part of one contiguous tract if the real property on which the sign is located is:(1) separated from the real property on which the business activity is located by a road or highway or by another business;(2) devoted to a separate purpose unrelated to the advertised business activity;(3) held under an easement or other lesser property interest than the property interest in the land on which the business activity is located; or(4) is a narrow strip or other configuration of land that cannot be put to any reasonable use related to the advertised business activity other than for signing purposes.(f) A sign is not an on-premise sign if:(1) the sign consists principally of brand name or trade name advertising and the product or service advertised is only incidental to the principal activity;(2) the sign advertises activities that are not conducted on the premises; or(3) the sign provides rental income to the owner of the real property on which it is located, unless the owner of the real property receives the income from an on-premise business for the use of the sign.(g) For the purposes of this subsection:(1) the date of the closing of a sales transaction is the date that legal title to a property is conveyed to a purchaser for property under a contract to buy; and(2) the date of the closing of a lease transaction is the date that the landlord and tenant enter into a binding lease of a property.</content><note type="source"><p>Source Note: The provisions of this §21.442 adopted to be effective July 1, 2011, 36 TexReg 2418.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.444"><num value="21.444">§21.444</num><heading>Fees Nonrefundable</heading><content>A fee paid to the department under this subchapter is nonrefundable.</content><note type="source"><p>Source Note: The provisions of this §21.444 adopted to be effective July 1, 2011, 36 TexReg 2418.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.445"><num value="21.445">§21.445</num><heading>Property Right Not Created</heading><content>Issuance of a permit under this subchapter does not create a property right in the permit holder.</content><note type="source"><p>Source Note: The provisions of this §21.445 adopted to be effective July 1, 2011, 36 TexReg 2418.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.446"><num value="21.446">§21.446</num><heading>Time Proposed Roadway Becomes Subject to Subchapter</heading><content>For the purposes of this subchapter, a proposed roadway becomes a roadway and a proposed interchange becomes an interchange:(1) when environmental clearance and the approved alignment have been obtained from the Federal Highway Administration; or(2) if environmental clearance and approved alignment from the Federal Highway Administration are not required for a proposed roadway, when the alignment is approved by the department or other political subdivision responsible for constructing the roadway.</content><note type="source"><p>Source Note: The provisions of this §21.446 adopted to be effective July 1, 2011, 36 TexReg 2418.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.447"><num value="21.447">§21.447</num><heading>Complaint Procedures</heading><content>(a) The department will accept and investigate all written complaints on a specific sign structure, sign company, or any other issue under the jurisdiction of the outdoor advertising program.(b) The complaints can be filed via the department's website, www.txdot.gov, or by mail to Texas Department of Transportation, Outdoor Advertising, P.O. Box 13043, Austin, Texas 78711-3043.(c) If the complaint involves a sign structure or a sign company the department will notify the owner of the sign structure or sign company of the complaint and the pending investigation within 15 days of receipt of the complaint. This notification will include a copy of the complaint and complaint investigation procedures.(d) If the complaint included contact information, the department will provide the complainant with a copy of the complaint procedures within 15 days of the receipt of the complaint.(e) If the complaint involves fewer than 10 sign structures the department will investigate the complaint and make a finding within 30 days of the receipt of the complaint. If the complaint involves 10 or more sign structures or is an investigation of a sign company or other outdoor advertising matter the department will make a finding within 90 days of the receipt of the complaint.(f) If the department is unable to meet the deadlines in subsection (e) of this section, the department will notify the complainant, the sign owner, or sign company of the delay and will provide a date for the completion of the investigation.(g) The department will provide the complainant, sign owner, or sign company the findings of the investigation, which will include whether administrative enforcement actions are being initiated.</content><note type="source"><p>Source Note: The provisions of this §21.447 adopted to be effective April 19, 2012, 37 TexReg 2687.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.448"><num value="21.448">§21.448</num><heading>License Required</heading><content>(a) Except as provided by this subchapter, a person may not obtain a permit for a sign under this subchapter unless the person holds a currently valid license issued under §21.145 of this chapter (relating to License Issuance; Amendment), or under §21.450 of this subchapter (relating to License Issuance), applicable to the county in which the sign is to be erected or maintained.(b) A license is valid for one year beginning on the date of its issuance or most recent renewal.</content><note type="source"><p>Source Note: The provisions of this §21.448 adopted to be effective April 19, 2012, 37 TexReg 2687; amended to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.449"><num value="21.449">§21.449</num><heading>License Application</heading><content>(a) To apply for a license under this subchapter, a person must file an application in a form prescribed by the department. The application must include at a minimum:(1) the complete legal name, mailing address, and telephone number of the applicant; and(2) designation of each county in which the applicant's signs are to be erected or maintained.(b) The application must be signed, notarized, and filed with the department and be accompanied by:(1) a fully executed outdoor advertiser's surety bond:(A) in the amount of $2,500 for each county designated under subsection (a)(2) of this section up to a maximum of $10,000;(B) payable to the commission to reimburse the department for removal costs of a sign that the license holder unlawfully erects or maintains; and(C) in a form prescribed by the department, executed by a surety company authorized to transact business in this state;(2) a duly certified power of attorney from the surety company authorizing the surety company's representative to execute the bond on the effective date of the bond;(3) the license fee prescribed by §21.453 of this subchapter (relating to License Fees); and(4) an indication that the applicant is a military service member, military spouse, or military veteran to ensure priority handling of application.(c) The documentation and fee required under this section must be sent by certified or regular mail to: Texas Department of Transportation, Outdoor Advertising, P.O. Box 13043, Austin, Texas 78711-3043.</content><note type="source"><p>Source Note: The provisions of this §21.449 adopted to be effective April 19, 2012, 37 TexReg 2687; amended to be effective June 19, 2014, 39 TexReg 4668.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.450"><num value="21.450">§21.450</num><heading>License Issuance</heading><content>(a) The department will issue a license if the requirements of §21.144 of this chapter (relating to License Application), or if the requirements of §21.449 of this subchapter (relating to License Application), are satisfied.(b) To amend a license, the license holder must file an amended application in a form prescribed by the department and accompanied by a valid rider to its surety bond.</content><note type="source"><p>Source Note: The provisions of this §21.450 adopted to be effective April 19, 2012, 37 TexReg 2687; amended to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.451"><num value="21.451">§21.451</num><heading>License Not Transferable</heading><content>A license issued under this subchapter is not transferable.</content><note type="source"><p>Source Note: The provisions of this §21.451 adopted to be effective April 19, 2012, 37 TexReg 2687.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.452"><num value="21.452">§21.452</num><heading>License Renewals</heading><content>(a) To renew a license, the license holder must submit through the department's website, www.txdot.gov, not later than November 1 of the year for which the license renewal fee is due:(1) an electronic application;(2) the applicable renewal fee prescribed by §21.453 of this subchapter (relating to License Fees); and(3) proof of current surety bond coverage.(b) No later than January 1 of the year for which the license renewal fee is due, the department will provide electronically to the license holder a notification of the amount due. The department will send quarterly reminder notices to any license holder who maintains an unpaid balance and will provide notice to the license holder of the opportunity to file a late renewal.(c) If the requirements of subsection (a) of this section are not met, a license expires on November 2nd. An expired license may be reinstated if the department receives a reinstatement request, accompanied by proof of current surety bond and the appropriate fee under §21.453 of this subchapter (relating to License Fees), not later than December 15 of the year in which the license expired.(d) An expired license that is not reinstated under this section is terminated on December 16 of the year in which the license expired and may not be renewed. A license is not eligible for renewal unless the license holder has complied with the permit requirements of this subchapter, Subchapter I of this chapter (relating to Regulation of Signs Along Interstate and Primary Highways), or Transportation Code, Chapters 391 and 394.</content><note type="source"><p>Source Note: The provisions of this §21.452 adopted to be effective April 19, 2012, 37 TexReg 2687; amended to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.453"><num value="21.453">§21.453</num><heading>License Fees</heading><content>(a) The amount of the fee for a license application under this subchapter is $125.(b) The amount of the annual license renewal fee for a calendar year is equal to:(1) $75; plus(2) the amount computed by multiplying $75 by the total number of eligible permits held under the license of this chapter.(c) To reinstate an expired license under §21.147 of this subchapter (relating to License Renewals), the license holder must pay an additional late fee of one percent of the annual renewal fee under this section in addition to the annual renewal fee.(d) A license fee is payable online by credit card, or electronic check. If payment is dishonored on presentment, the license is voidable.(e) In this section, "eligible" means any permit that does not have a status of "canceled" or "expired."</content><note type="source"><p>Source Note: The provisions of this §21.453 adopted to be effective April 19, 2012, 37 TexReg 2687; amended to be effective September 1, 2024, 49 TexReg 6256.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.454"><num value="21.454">§21.454</num><heading>Temporary Suspension of License</heading><content>If the department is notified by a surety company that a bond is being canceled, the department will notify the license holder by certified mail that a new bond must be obtained and filed with the department before the bond cancellation date or the 30th day after the day of the receipt of the notice, whichever is later.</content><note type="source"><p>Source Note: The provisions of this §21.454 adopted to be effective April 19, 2012, 37 TexReg 2687.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.455"><num value="21.455">§21.455</num><heading>License Revocation and Non-Renewal</heading><content>(a) The department will initiate an enforcement proceeding, as described in this section, to revoke a license holder's license if:(1) the license holder does not provide the department with the required surety bond within the time specified in §21.449 of this subchapter (relating to License Application) or §21.452 of this subchapter (relating to License Renewals);(2) the license holder's surety bond coverage is terminated under §21.454 of this subchapter (relating to Temporary Suspension of License);(3) the number of final enforcement actions of this subchapter, Subchapter I of this chapter (relating to Regulation of Signs Along Interstate and Primary Highways), or Transportation Code, Chapters 391 and 394, committed by the license holder in the aggregate equal or exceed:(A) 10 percent of the number of valid permits held by the license holder, if the license holder holds more than 1,000 sign permits;(B) 20 percent of the number of valid permits held by the license holder, if the license holder holds at least 500 but fewer than 1,000 sign permits;(C) 25 percent of the number of valid permits held by the license holder if the license holder holds at least 100 but fewer than 500 sign permits; or(D) 30 percent of the number of valid permits held by the license holder if the license holder holds fewer than 100 sign permits; or(4) the license holder has not complied with any administrative orders or agreements arising out of and relating to previous enforcement actions initiated against the license holder under this section.(b) The department will send notice by certified mail of an action under this section to the address of record provided by the license holder.(c) The notice will clearly state:(1) the reasons for the action;(2) the effective date of the action;(3) the right of the license holder to request an administrative hearing; and(4) the procedure for requesting a hearing including the period in which the request must be made.(d) A request for an administrative hearing under this section must be made in writing to the department within 45 days after the date that the notice is mailed.(e) If timely requested, an administrative hearing will be conducted in accordance with Chapter 1, Subchapter E of this title (relating to Procedures in Contested Case).</content><note type="source"><p>Source Note: The provisions of this §21.455 adopted to be effective April 19, 2012, 37 TexReg 2687.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.456"><num value="21.456">§21.456</num><heading>Exception to License Requirement for Nonprofit Signs</heading><content>A nonprofit organization may erect or maintain a nonprofit sign without obtaining an outdoor advertising license, but the organization must obtain a permit under either §21.457 of this subchapter (relating to Nonprofit Sign Permit) before it may erect or maintain such a sign.</content><note type="source"><p>Source Note: The provisions of this §21.456 adopted to be effective April 19, 2012, 37 TexReg 2687.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scK/s21.457"><num value="21.457">§21.457</num><heading>Nonprofit Sign Permit</heading><content>(a) A nonprofit service club, charitable association, religious organization, chamber of commerce, economic development council, nonprofit museum, or governmental entity may obtain a permit under this section to erect or maintain a nonprofit sign.(b) To qualify as a nonprofit sign, the sign must:(1) advertise or promote:(A) a political subdivision in whose jurisdiction the sign is located or a political subdivision that is adjacent to such a political subdivision; or(B) the entity that will hold the permit, but may only give information about the meetings, services, events, or location of the entity or provide a message that relates to promotion of all or a part of the political subdivision but that does not include identification of individual merchants; and(2) comply with each sign requirement under this subchapter from which it is not expressly exempted.(c) An application for a permit under this section must be in a form prescribed by the department and must include, in detail, the content of the message to be displayed on the sign.(d) After a permit is issued, the permit holder must obtain approval from the department to change the message of the sign. The department may issue an order of removal of the sign if the permit holder fails to obtain that approval.(e) If a sign ceases to qualify as a nonprofit sign, the permit for the sign is subject to cancellation under §21.425 of this subchapter (relating to Cancellation of Permit).(f) If the holder of a permit issued under this section loses its nonprofit status or wishes to change the sign so that it no longer qualifies as a nonprofit sign the permit holder must:(1) obtain a license under §21.145 of this chapter (relating to License Issuance; Amendment) or §21.450 of this subchapter (relating to License Issuance); and(2) convert the sign permit to a permit for a sign other than a nonprofit sign and pay the original permit and renewal fees provided by §21.424 of this subchapter (relating to Permit Fees).</content><note type="source"><p>Source Note: The provisions of this §21.457 adopted to be effective April 19, 2012, 37 TexReg 2687; amended to be effective June 19, 2014, 39 TexReg 4668; amended to be effective September 1, 2024, 49 TexReg 6256.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c21/scL"><num value="L">SUBCHAPTER L</num><heading>LEASING OF HIGHWAY ASSETS</heading><section identifier="/us/state/tx/tac/t43/p1/c21/scL/s21.600"><num value="21.600">§21.600</num><heading>Purpose</heading><content>The Texas Department of Transportation may lease any highway asset not currently needed for highway purposes. This subchapter, which sets forth the leasing requirements and procedures, applies only to leasing and not to other permissive use of highway assets.</content><note type="source"><p>Source Note: The provisions of this §21.600 adopted to be effective August 15, 2002, 27 TexReg 7177.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scL/s21.601"><num value="21.601">§21.601</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings unless the context clearly indicates otherwise.(1) Commission--The Texas Transportation Commission.(2) Department--The Texas Department of Transportation.(3) Director--The director of the right of way division of the department or the director's designee not below the level of section director.(4) Executive director--The executive director of the department or the executive director's designee not below the level of deputy executive director or assistant executive director.(5) District--One of the 25 geographical district offices of the department.(6) District engineer--The chief executive officer in charge of a district of the department.(7) Highway asset--An interest in real property that is held or controlled by the department for a highway or department purpose.</content><note type="source"><p>Source Note: The provisions of this §21.601 adopted to be effective August 15, 2002, 27 TexReg 7177.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scL/s21.602"><num value="21.602">§21.602</num><heading>Highway Asset to be Leased</heading><content>(a) The commission may authorize the lease of a highway asset if it finds that:(1) the interest to be leased will not be needed for highway purposes during the period of the lease;(2) the lease is for a purpose that is not inconsistent with the applicable highway use; and(3) the lease will be economically beneficial to the department.(b) The director may authorize the lease of a highway asset if:(1) the director makes the findings required by subsection (a) of this section; and(2) the term of the lease does not exceed two years, or the lease contains a cancellation clause by which the department, in its sole discretion, may terminate the lease with not more than two years notice.</content><note type="source"><p>Source Note: The provisions of this §21.602 adopted to be effective August 15, 2002, 27 TexReg 7177; amended to be effective February 18, 2015, 40 TexReg 721.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scL/s21.603"><num value="21.603">§21.603</num><heading>Methods of Awarding Leases</heading><content>(a) The department may, in its sole discretion, award a lease by any method it determines to be in its best interest.(b) Prior to the date of the lease award, notice of real property available for lease may be published on the TxDOT website. When a lease is awarded on a sealed bid basis, notice of the proposed lease will be advertised at least 20 days prior to the date of the bid opening. The notice will be published once a week for three consecutive weeks prior to bid opening in a newspaper of general circulation in the county in which the highway asset is located.(c) The department will charge not less than fair market value for leases. However, if the commission finds it to be in the public interest, the commission may waive the fair market value requirement for a lease to a public utility provider or an institution of higher education as defined by Education Code, §61.003, or for social, environmental, or economic mitigation purposes.</content><note type="source"><p>Source Note: The provisions of this §21.603 adopted to be effective August 15, 2002, 27 TexReg 7177; amended to be effective February 18, 2015, 40 TexReg 721.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scL/s21.604"><num value="21.604">§21.604</num><heading>Lease Agreement</heading><content>A lease for highway assets shall be in written form approved by the director and shall include:(1) information necessary to contact the party responsible for developing and operating the leased asset;(2) the amount of the rent, any required deposits, the term of the lease, and the method of payment of the rental amounts or deposits;(3) a statement of the authorized use of the leased asset;(4) a statement that any change in the authorized use of the leased asset is subject to prior written approval of the director;(5) a detailed description of the asset to be leased, which may be three-dimensional where vertical limits are needed;(6) the general design for the use of the leased asset, including any improvements to be constructed, any maps, plans, or sketches necessary to set out the pertinent features in relation to any highway facility and a description of any temporary improvements to be provided by the lessee;(7) a statement that any significant revision in the design of the improvements described in subsection (d) of §21.605 of this subchapter is subject to prior written approval by the district engineer;(8) a statement that the department shall have the right to approve all construction and plans for construction on the leased asset;(9) permission for the employees of and any representatives authorized by the department to enter the leased asset for the purpose of inspection, maintenance, or reconstruction of highway facilities as necessary, or to determine compliance with the terms and conditions of the lease;(10) a statement that any improvements located within the leased asset will be maintained by the lessee at the lessee's sole expense, so as to assure that any structures in the area within the highway asset will be kept in good condition, both as to safety and appearance, and that maintenance will not interfere with highway use;(11) a statement that in the event the district engineer determines that the responsible party has failed in its maintenance obligation, the department has the right to enter the leased asset to perform such work, all at the expense and liability of the lessee;(12) a statement requiring forfeiture of deposits, payment to the department of litigation costs, or any other expense incurred by the department due to nonperformance of the terms of the lease agreement;(13) a performance bond when considered necessary by the department;(14) adequate public liability insurance for the leased asset, the conduct of lessee's business, and lessee's indemnification obligations to the department set forth in the lease, to be provided by lessee at lessee's sole expense, naming the department as an additional insured and including other endorsements as determined to be necessary by the department, in an amount and form acceptable to the department for the payment of any damages occurring to the highway facility or to the public for personal injury, loss of life or property damage which may occur; except that the director may waive this requirement when the lease is with a county, city, state agency, or the federal government and when the entity has assumed the specific responsibility for payment of any related damages occurring to the highway facility or to the public for personal injury, loss of life, or property damage;(15) a statement that the lease may be terminated when, in the sole opinion of the department, the asset ceases to be used in accordance with the use provisions or is abandoned;(16) a statement that the lease may be terminated by the department when, in the sole opinion of the department, there is noncompliance with the terms of the lease or the conditions are violated and noncompliance or violation is not corrected within a reasonable length of time determined by the department after written notice of noncompliance or violation has been given and that in the event the lease is terminated and the department determines it necessary to request the removal of lessee improvements located within the asset, the removal shall be accomplished by the lessee in a manner prescribed by the district engineer and at no cost to the department;(17) a statement that the lease and leased premises shall not be transferred, assigned, or conveyed to another party without prior written approval by the director;(18) a requirement that the lease or any improvements on the leased asset will be kept free of all liens and will not be used as security for any loan; provided however, the lessee will be allowed to mortgage or otherwise pledge or grant a security interest in the leasehold interest to secure financing for the acquisition of the leasehold and for the construction and operation of an improvement permitted under the lease, subject to the terms and conditions contained in the lease;(19) a statement that the lessee assumes all risks of losses resulting from the lease;(20) a description of nondiscrimination requirements; and(21) any other provisions deemed necessary or desirable by the director.</content><note type="source"><p>Source Note: The provisions of this §21.604 adopted to be effective August 15, 2002, 27 TexReg 7177; amended to be effective February 18, 2015, 40 TexReg 721.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scL/s21.605"><num value="21.605">§21.605</num><heading>General Requirements</heading><content>(a) All matters relating to the leasing of federal-aid highway right of way are subject to the approval of the Federal Highway Administration.(b) The use of leased right of way beneath the established gradeline of a highway shall provide sufficient vertical and horizontal clearances for the construction, operation, maintenance, ventilation, and safety of highway facilities.(c) The use of leased highway right of way above the established gradeline of the highway shall provide for vertical and horizontal clearances.(d) Piers, columns, or any other portion of any improvements to be constructed on the leased right of way shall not be erected in a location that will interfere with the visibility or reduce sight distance or in any other way interfere with the safety and free flow of traffic or level of service on highway facilities.(e) The structural supports for any improvements to be constructed on leased right of way shall be located to clear all horizontal and vertical dimensions specified by design standards of the department.(f) The use of leased right of way shall not result in either highway or nonhighway users being unduly exposed to hazardous conditions.(g) Appropriate safety precautions and features necessary to minimize the possibility of injury to users of either a highway facility or leased right of way shall be provided. All structures constructed above highway facilities shall include adequate enclosure to prevent people and objects from falling. Improvements on leased right of way will not be approved for construction over or under the highway facilities, unless the plans contain adequate provisions, acceptable to the department, for evacuation of the structures or facilities in case of a major accident endangering occupants.(h) Improvements constructed on leased assets shall be fire resistant in accordance with the provisions of the local applicable building codes. The leased highway asset shall not be used for any purpose or occupation which is deemed by the department to be a hazard to highway or nonhighway users. In cases where the department questions the acceptability of the existing local applicable building codes, conformance with a nationally accepted model building code, or any other code acceptable to the department may be required.(i) Structures built over highway right of way shall occupy no more length of the highway than prescribed by the department.(j) The design, occupancy, and use of any structure over or under a highway facility shall be such that the use, safety, appearance, and the enjoyment of the highway will not be adversely affected by fumes, vapors, odors, drippings, droppings, or discharges of any kind from the structure.(k) All signs, displays, or devices to be located or maintained by a lessee must have prior written approval by the district engineer and shall be restricted to those indicating ownership and type of on-premise activities.(l) Construction of any structure above or below a highway shall not require any temporary or permanent change in alignment or profile of an existing highway without prior written approval by the department.(m) When the department is of the opinion that the proposed use of leased right of way requires changes in or additions to existing highway facilities for the proper operation and maintenance of the facilities, the changes or additions shall be provided without cost to the department.(n) Improvements on leased right of way shall be designed and constructed in a manner that will permit access to highway facilities for the purpose of inspection, maintenance, and reconstruction when necessary.(o) Persons desiring to lease highway assets may be required to furnish an attorney's title opinion establishing to the department's satisfaction that the lease will be consistent with property rights owned by others.(p) Persons desiring to lease highway assets shall furnish at their own expense all engineering, appraisal, and other reports, designs, and findings requested by the department.</content><note type="source"><p>Source Note: The provisions of this §21.605 adopted to be effective August 15, 2002, 27 TexReg 7177.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scL/s21.606"><num value="21.606">§21.606</num><heading>Requests to Lease</heading><content>(a) A person desiring to lease a highway asset shall submit a written request through the department's website. Each request shall include:(1) the name and address of the person requesting the lease;(2) a description of the area or interest of the asset to be leased, improvements (if any) proposed to be constructed, the intended use of the proposed leased asset, and a proposed term of lease;(3) sketches or drawings showing the area to be leased, proposed improvements to be constructed, including utilities to serve the improvements, existing highways or other improvements, all means of proposed access to the area, and preliminary drainage plans;(4) adequate information to support findings to authorize leasing of the asset; and(5) the name, address, and telephone number of the individual authorized to furnish any additional information desired by the department regarding a request to lease.(b) The department may request additional information, reports, or data of any kind deemed desirable in addition to the written request referred to in subsection (a) of this section in order to comply with the requirements of this section.(c) The department will forward the request for lease to the district engineer, the right of way division for processing and, when appropriate, for preparing recommendations to the commission, the executive director, and the Federal Highway Administration.(d) The department will inform the potential lessee of the actions taken on the request to lease.</content><note type="source"><p>Source Note: The provisions of this §21.606 adopted to be effective August 15, 2002, 27 TexReg 7177; amended to be effective February 18, 2015, 40 TexReg 721.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c21/scM"><num value="M">SUBCHAPTER M</num><heading>QUARRY AND PIT SAFETY</heading><section identifier="/us/state/tx/tac/t43/p1/c21/scM/s21.701"><num value="21.701">§21.701</num><heading>Purpose and Scope</heading><content>(a) This subchapter implements the Texas Aggregate Quarry and Pit Safety Act, Natural Resources Code, Chapter 133.(b) This subchapter applies to all active, inactive, or abandoned quarries and pits located in whole or part within the boundaries of Texas.</content><note type="source"><p>Source Note: The provisions of this §21.701 adopted to be effective July 15, 2004, 29 TexReg 6734; amended to be effective January 7, 2009, 34 TexReg 69.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scM/s21.702"><num value="21.702">§21.702</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Abandoned--Having relinquished all right, title, claim, and possession with the intent of never again claiming a future right or title or resuming possession.(2) Act--The Texas Aggregate Quarry and Pit Safety Act, Natural Resources Code, Chapter 133, and this subchapter.(3) Active quarry or pit--A quarry or pit that has ongoing aggregate extraction activity or that shows evidence of aggregate extraction activity within the preceding 180-day period whether or not equipment or a plant is at the site.(4) Aggregates--Any commonly recognized construction material originating from a quarry or pit by the disturbance of the surface, including dirt, soil, rock asphalt, clay, granite, gravel, gypsum, marble, sand, shale, stone, caliche, limestone, dolomite, rock, riprap, or other similar substance.(5) Barrier--An object of substantial construction that will obstruct, restrain, and prevent the normal passage of persons or vehicular traffic.(6) Berm--A ridge of refuse, overburden, or other material in a lengthened elevation designed to act as a dike or barrier, capable of moderating or limiting the force of a vehicle in order to impede the passage of the vehicle.(7) Commission--Texas Transportation Commission.(8) Department--Texas Department of Transportation.(9) Director--The director of the Maintenance Division of the department, or the director's designee.(10) Division--The Maintenance Division of the department.(11) In hazardous proximity to a public road--That distance beginning 200 feet from the outer edge of a roadway to the pit perimeter.(12) Inactive quarry or pit--A site that includes an industrial aggregate extraction plant or any portion of a site that includes an industrial aggregate extraction plant, that although previously in aggregate production, is not currently being quarried by any ownership, lease, joint venturer, or some other legal arrangement.(13) Operator--Any person, partnership, firm, or corporation engaged in and responsible for the physical operation and control of the extraction of aggregates.(14) Overburden--All materials displaced in an aggregate extraction operation that are not or reasonably would not be expected to be removed from the affected area. The term includes the material that must be removed to access the aggregate that is to be extracted.(15) Owner--Any person, partnership, firm, or corporation having title, in whole or in part, to the land on which an aggregate operation exists or has existed.(16) Pit--An open excavation not less than five feet below the adjacent and natural ground level from which aggregates have been or are being extracted.(17) Public road or right of way--Every way publicly maintained or any part thereof as defined by Transportation Code, §541.302, and the decisions thereunder.(18) Quarry--A site where aggregates are being or have been removed or extracted from the earth to form a pit, including the entire excavation, stripped areas, haulage ramps, the land immediately adjacent thereto upon which a plant if required for processing the raw materials is located, exclusive of any land owned or leased by the responsible party that is not being currently used in the production of aggregates.(19) Quarrying--The current and ongoing surface excavation and development without shafts, drafts, or tunnels, with or without slopes, for the extraction of aggregates from natural deposits occurring in the earth.(20) Refuse--All waste material directly connected with the production, cleaning, or preparation of aggregates that have been produced by quarrying.(21) Responsible party--The current operator of the quarry or pit, or if no operator exists, the owner of the land in which the pit exists.(22) Ridge--A lengthened elevation of overburden created in the aggregate production process.(23) Roadway--The part of the public road intended for normal vehicular traffic that consists of an improved driving surface constructed of concrete, asphalt, compacted soil, rock, or other material.(24) Site--The tract of land on which a pit is located, including the immediate area on which the plant used in the extraction of aggregates is located.(25) Unacceptable unsafe location--A condition where the edge of a pit is located within 200 feet of a public roadway intersection in a manner that the department determines:(A) presents a significant risk of harm to motorists by reason of the proximity of the pit to the roadway intersection and has no naturally occurring or artificially constructed barrier or berm between the road and pit that would likely prevent a motor vehicle from entering the pit as the result of a motor vehicle collision at or near the intersection; or(B) is at any other location constituting a substantial dangerous risk to the driving public, which condition can be rectified by the placement of berms, barriers, guardrails, or other devices as required by this subchapter.</content><note type="source"><p>Source Note: The provisions of this §21.702 adopted to be effective July 15, 2004, 29 TexReg 6734; amended to be effective January 7, 2009, 34 TexReg 69.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scM/s21.703"><num value="21.703">§21.703</num><heading>Form Availability</heading><content>(a) Forms for the application for a safety certificate, transfer of a safety certificate, safety certificate waiver, and for the notice of cessation of operations are available at the offices of the department or by accessing the Texas Department of Transportation web site at www.txdot.gov and searching on the word "pit".(b) Forms are also available by writing to the Director, Maintenance Division, Texas Department of Transportation, 125 E. 11th Street, Austin, Texas 78701-2483.</content><note type="source"><p>Source Note: The provisions of this §21.703 adopted to be effective July 15, 2004, 29 TexReg 6734; amended to be effective January 7, 2009, 34 TexReg 69.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scM/s21.704"><num value="21.704">§21.704</num><heading>Fees</heading><content>Each application for a safety certificate or transfer of a safety certificate and each notice of cessation of operations shall be accompanied by check or money order made payable to the State of Texas for the application fee. The fee schedule is as follows:(1) safety certificate application for a non-governmental entity--$500;(2) safety certificate transfer--$250;(3) notice of cessation of operations--$500;(4) governmental entity application for inactive or abandoned pit safety certificate--$350.</content><note type="source"><p>Source Note: The provisions of this §21.704 adopted to be effective July 15, 2004, 29 TexReg 6734; amended to be effective January 7, 2009, 34 TexReg 69.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scM/s21.705"><num value="21.705">§21.705</num><heading>Form and Content of Initial Inventory Report</heading><content>(a) Each report must be on the forms furnished by the department and must show the location, age, operational status, and current use of the quarry or pit to which the report applies.(b) Only a single report under this subchapter is required when joint owners or operators or a combination of either exists.(c) Only a single report is required for each owner or operator having multiple pit locations within the state.(d) Only one accurate report relating to each quarry or pit is required.</content><note type="source"><p>Source Note: The provisions of this §21.705 adopted to be effective July 15, 2004, 29 TexReg 6734.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scM/s21.706"><num value="21.706">§21.706</num><heading>Barriers Required</heading><content>(a) A responsible party for an active pit in hazardous proximity to a public road must construct a barrier or other device between the public road adjoining the site and the pit.(b) A responsible party for an abandoned or inactive pit which is both in hazardous proximity to a public road and in an unacceptable unsafe location must construct a barrier or other device between the public road adjoining the site and the pit.(c) The responsible party may choose to slope the sidewalls of a pit in place of constructing a berm or barrier, provided that in the opinion of the responsible party such corrective measure better serves the public safety and provided that the slope shall not exceed 30 degrees from the horizontal.(d) The barrier or other device must be completed not later than the 90th day after the day on which the responsible party receives a notice of approval from the department. An additional time of not more than 60 days may be granted by the department for good cause shown. If the responsible party must obtain an easement or right-of-entry before constructing the barrier or other device, the department may grant additional reasonable time to complete the barrier or other device.(e) The department may grant a waiver from the barrier requirement if the responsible party submits an application to the department showing that:(1) a governmental entity obtained a right-of-way and constructed a public road within 200 feet of the abandoned or inactive pit before August 26, 1991; and(2) the pit has remained abandoned or inactive since the road was constructed.</content><note type="source"><p>Source Note: The provisions of this §21.706 adopted to be effective July 15, 2004, 29 TexReg 6734.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scM/s21.707"><num value="21.707">§21.707</num><heading>Barrier Construction Standards</heading><content>(a) A barrier required under §21.706 of this subchapter must be determined by the department to be sufficient to prevent the normal passage of vehicular traffic from entering the site of the pit.(b) The design of the barrier must be approved by the department to insure proper performance.(c) The barrier may be a guardrail, concrete barrier, or berm barrier. A guardrail must meet the current department specification and standard detail for metal beam guard fence. A concrete barrier must meet the current department specifications and standards for a rigid barrier and the appropriate standards for end treatments, attenuators, and crash cushion. A berm barrier must meet the current department specifications and standards for berm barriers.(d) A barrier that was determined to conform to construction standards for the issuance of a safety certificate and that has deteriorated so that it no longer meets the construction standards applicable at the time the safety certificate was issued will be required to be improved to conform to those standards.</content><note type="source"><p>Source Note: The provisions of this §21.707 adopted to be effective January 7, 2009, 34 TexReg 69.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scM/s21.708"><num value="21.708">§21.708</num><heading>Prohibition Against Opening Pits</heading><content>(a) No responsible party may open a new pit on a site for the extraction of aggregates if the pit perimeter will be less than 25 feet from the outer right of way line of any public road or highway ("the setback distance").(b) No responsible party may open a new pit on a site for the extraction of aggregates in this state if the pit perimeter is in hazardous proximity to a public road without first filing a quarry safety plan and receiving a safety certificate.(c) No operator may open a new pit on a site for the extraction of aggregates if the operator is in violation of the rules under this subchapter at another site.(d) An operator who is not the owner of the site may not open a new pit on the site without the written permission of the owner.</content><note type="source"><p>Source Note: The provisions of this §21.708 adopted to be effective July 15, 2004, 29 TexReg 6734; amended to be effective January 7, 2009, 34 TexReg 69.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scM/s21.709"><num value="21.709">§21.709</num><heading>Quarry Safety Plan</heading><content>The quarry safety plan required to be filed for new pits in hazardous proximity to a public road opened from and after November 1, 1991, must:(1) detail how the applicant intends to comply with the safety provisions of this subchapter in opening and closing the pit;(2) contain the information required by the safety certificate application;(3) be filed on Form-2114;(4) be in writing, certified and sworn to by the applicant; and(5) be filed with the Maintenance Division at least 60 days prior to the opening of the pit.</content><note type="source"><p>Source Note: The provisions of this §21.709 adopted to be effective July 15, 2004, 29 TexReg 6734.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scM/s21.710"><num value="21.710">§21.710</num><heading>Sloping of Pit Sidewalls</heading><content>The department will determine if potential holding or impounding of water in a pit will create a hazard to the motoring public requiring a barrier to be constructed. The department may allow a slope of not more than 30 degrees to be built on the side wall or walls adjacent to the public road in lieu of the barrier if the water does not pose a hazard to the motoring public.</content><note type="source"><p>Source Note: The provisions of this §21.710 adopted to be effective January 7, 2009, 34 TexReg 69.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scM/s21.711"><num value="21.711">§21.711</num><heading>Safety Certificate Required</heading><content>(a) A safety certificate is required for an active, inactive, or abandoned quarry or pit that is located in hazardous proximity to a public road or is in an unacceptable unsafe location, excluding an inactive or abandoned quarry or pit that receives a written barrier waiver from the department.(b) Except as provided in subsection (c) of this section, a responsible party must obtain a safety certificate prior to:(1) opening a new pit in hazardous proximity to a public road and in an unacceptable unsafe location; or(2) reopening, operating, or abandoning a quarry or pit that is in hazardous proximity to a public road and in an unacceptable unsafe location.(c) The department will notify the responsible party in writing if after inspection the department finds that a safety certificate is required for the pit or quarry. A responsible party is not required to obtain a safety certificate to operate or maintain an existing quarry or pit unless the department has notified the responsible party in writing that it must do so.(d) Any responsible party who is utilizing a portion of a site for quarrying operations, including the stockpiling, sale, or processing of aggregates or a combination thereof, or who has a current, valid, or outstanding agreement or legal right to develop, utilize, or quarry the property, shall be responsible for obtaining a safety certificate limited to that specific pit area he is using or excavating or intends to use or excavate.(e) Any responsible party may operate the pit during a period that is described in §21.717 of this subchapter (relating to Recertification After Transfer of Title).</content><note type="source"><p>Source Note: The provisions of this §21.711 adopted to be effective July 15, 2004, 29 TexReg 6734; amended to be effective January 7, 2009, 34 TexReg 69.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scM/s21.712"><num value="21.712">§21.712</num><heading>Construction, Expansion, or Relocation of Roads</heading><content>(a) An entity that constructs, expands, or relocates a public road so that it causes an existing quarry or pit to be located in an unacceptable, unsafe location or in hazardous proximity to the public road, shall construct berms or barriers.(b) The berms or barriers shall be constructed prior to the opening of the new, expanded, or relocated public road to travel by the public.(c) The entity responsible for construction, expansion, or relocation of the public road shall report the same to the director within 90 days of the date the construction, expansion, or relocation is finally accomplished, including construction of the berms or barriers.(d) The report shall be in writing, certified and sworn to by an authorized representative of the entity, and shall contain:(1) the name, address, and telephone number of the entity responsible for the construction, expansion, or relocation of the public road;(2) the distance of each adjoining pit perimeter from the nearest right-of-way line of the new, expanded, or relocated public road and the nearest intersection of any public or private road or driveway;(3) a description of and a construction plan for any berm or barrier, specifying the material used;(4) the name, address, and telephone number of the responsible party; and(5) the name, address, and telephone number of the owner or owners if different from the responsible party.</content><note type="source"><p>Source Note: The provisions of this §21.712 adopted to be effective July 15, 2004, 29 TexReg 6734.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scM/s21.713"><num value="21.713">§21.713</num><heading>Form and Content of Safety Certificate Applications</heading><content>(a) Each pit for which a safety certificate is requested shall be addressed in a separate application.(b) An application for a safety certificate must be on the form furnished by the department and contain:(1) the name, address, and telephone number of the responsible party;(2) the name, address, and telephone number of the owner or owners if different from the responsible party;(3) the type of quarrying activities, if any, occurring on the site, or proposed to occur on the site;(4) a brief description of the site, including the acreage outside and inside the pit;(5) the distance of each pit perimeter from the nearest edge of each roadway that the site adjoins and the nearest intersection of any public road that the site adjoins and the nearest intersection of any public or private road or driveway;(6) the depth in feet of the deepest excavation in the pit within 200 feet of a roadway edge as measured from the top of the pit highwall located between the pit and the roadway;(7) a description of and a construction plan for any barrier or other device allowed by these regulations to be constructed, specifying the material to be used and the expected date of completion;(8) for new pits in hazardous proximity to a public road, a statement as to the yearly progress of the encroachment of the pit perimeter within the hazardous proximity to the public road, if any; and(9) any other information or condition that meets the definition of an unacceptable unsafe location.</content><note type="source"><p>Source Note: The provisions of this §21.713 adopted to be effective July 15, 2004, 29 TexReg 6734.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scM/s21.714"><num value="21.714">§21.714</num><heading>Review of Applications</heading><content>(a) The department will notify an applicant by certified mail within ten days of receipt of an application for a safety certificate that the application:(1) complies with the Act and is approved; or(2) does not comply with the Act and is disapproved.(b) A notice required under subsection (a)(2) of this section must specify the defects in the application. An applicant who receives this notice may submit, within 30 days of receipt of the notice, a modified application or plan.(c) Within five days of receipt of a modified application under subsection (b) of this section, the department will approve or disapprove the application and will notify an applicant of its decision by certified mail.(d) The department will give first priority to applications for sites that are abandoned or that are within the setback distance.</content><note type="source"><p>Source Note: The provisions of this §21.714 adopted to be effective July 15, 2004, 29 TexReg 6734.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scM/s21.715"><num value="21.715">§21.715</num><heading>Inspection of Barriers and Certificate Decision</heading><content>(a) Within 15 days of the time in which construction of barriers described in an approved application is required to be completed, the department may inspect those barriers to determine whether they meet the requirements.(b) If, after inspection, the department determines that the barriers described in an approved application conform with the plan and comply with the Act, the department will issue a safety certificate to the responsible party.(c) If, after inspection, the department determines that a barrier does not comply with the Act, the department will give the applicant written notice of any defects in that barrier and shall specify a reasonable time, not to exceed 60 days from the day notice is received, for the applicant to cure the defects.</content><note type="source"><p>Source Note: The provisions of this §21.715 adopted to be effective July 15, 2004, 29 TexReg 6734.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scM/s21.716"><num value="21.716">§21.716</num><heading>Transfer of Certificate after Transfer of Title</heading><content>(a) A responsible party holding a safety certificate has the full right, power, and authority to transfer the certificate upon the sale, lease, or other transfer of title to the site, provided the new owner, operator, lessor or lessee, or party in interest files with the director a written affidavit that:(1) all barriers between a pit and the nearest edge of any roadway comply with the Act; and(2) there will be no change, on or after the day of the transfer of title or operation, in the:(A) condition or location of a barrier; and(B) distance of a pit perimeter from the nearest intersection of a public road and a private road or driveway.(b) The transfer affidavit must be filed not later than the 30th day after the day on which the transfer of title to or operation of the quarry or pit occurs.(c) The department will process and approve a transfer of a safety certificate not later than the 10th day after the day on which the department receives a completed transfer affidavit, including the application fee.(d) At its option, the department may refuse to issue or approve the transfer of a certificate to a person who has violated the Act.(e) The hypothecating, mortgaging, or other transfer of equitable title or a pledge of any assets to credits of the operator or owner shall not require the filing of a transfer affidavit.(f) The department may revoke or disapprove the transfer of a safety certificate only if, after notice and hearing, the department determines that the holder of the certificate has violated the Act.</content><note type="source"><p>Source Note: The provisions of this §21.716 adopted to be effective July 15, 2004, 29 TexReg 6734.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scM/s21.717"><num value="21.717">§21.717</num><heading>Recertification after Transfer of Title</heading><content>(a) Unless a proper transfer affidavit is filed under this chapter, or an application for an amended certificate as required by subsection (b) of this section is pending, an existing safety certificate expires on the 90th day after the day on which a sale, lease, or other transfer of title to or operation of the quarry or pit for which the certificate was issued occurs.(b) To obtain an amended or new safety certificate, a new owner, operator, lessor, or lessee must submit a safety certificate application as required by §21.713 of this subchapter (relating to Form and Content of Safety Certificate Applications), not later than the 30th day after the day on which the transfer of title to the quarry or pit occurs or a change in the activities of the quarry or pit necessitates.(c) If an application for a new certificate has been submitted as required by subsection (b) of this section, the existing safety certificate continues in effect until the department's decision either approving or disapproving the new or amended certificate is issued and becomes final.</content><note type="source"><p>Source Note: The provisions of this §21.717 adopted to be effective July 15, 2004, 29 TexReg 6734.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scM/s21.718"><num value="21.718">§21.718</num><heading>Cessation of Operations</heading><content>(a) At least 60 days prior to cessation of operations, the responsible party who plans or intends to cease active operations in a quarry or pit shall notify the department of its intent, submit any additional plans the operator determines necessary to protect the public good and welfare after the cessation of operations, and include the applicable fee.(b) Within 10 days after receipt of the notice, the department shall inspect the quarry or pit to ensure compliance with the provisions of this chapter and any additional plans submitted by the operator.(c) Within 10 days after the inspection, the department shall notify the operator of compliance, or lack of compliance, and in the event of compliance shall issue a safety certificate.(d) In the event of noncompliance, the department shall follow the procedures of §21.714 of this subchapter (relating to Review of Applications) and §21.715 of this subchapter (relating to Inspection of Barriers and Certificate Decision).</content><note type="source"><p>Source Note: The provisions of this §21.718 adopted to be effective July 15, 2004, 29 TexReg 6734.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scM/s21.719"><num value="21.719">§21.719</num><heading>Enforcement</heading><content>(a) Within its jurisdiction, the department shall have a right of entry to, upon, and through any aggregate quarry or pit without advance notice or search warrant, upon presentation of appropriate credentials.(b) The operator shall maintain a copy of the safety certificate for each active quarry or pit at or near the location of the quarry or pit and shall make the safety certificate available for inspection by any authorized representative of the department, upon presentation of appropriate credentials.(c) On receipt of a complaint of a violation of the Act or on its own motion, the department will give the responsible party written notice of each alleged violation, including the applicable statutory reference or rule violated, and the date, time, and place for a hearing.(d) If, after notice and a hearing, the department determines that a violation has occurred, the director will make written findings of the actual or threatened violation and the required corrective work and shall prescribe a specific deadline, commensurate with the work to be done but not to exceed 90 days from the date of the order, for completion of the corrective work, unless an extension of time for good cause shown by the responsible party is granted by the director.(e) If the responsible party fails to perform corrective work required by the department under subsection (d) of this section within 120 days after notice is given to the responsible party, the department may contract for the corrective work to be done at reasonable, customary, and ordinary costs applicable in the industry. Costs shall be submitted within 30 days of the date the work is finished, and the responsible party shall have 60 days to pay the costs or appeal the decision. In the event the responsible party fails to pay the costs as presented or fails timely to contest or appeal the costs as presented by the department, the department shall have the right to impose a fine or injunction as is warranted, consistent with the provisions of the Act and this subchapter.</content><note type="source"><p>Source Note: The provisions of this §21.719 adopted to be effective July 15, 2004, 29 TexReg 6734.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scM/s21.720"><num value="21.720">§21.720</num><heading>Civil Penalties</heading><content>(a) A responsible party who violates the Act after due notice is liable to the state for a civil penalty of not less than $500 or more than $5,000 for each act of violation on a first offense.(b) A responsible party who violates the Act after due notice is liable to the state for a civil penalty of not less than $1,000 or more than $10,000 for each act of violation on a second and subsequent offense.</content><note type="source"><p>Source Note: The provisions of this §21.720 adopted to be effective July 15, 2004, 29 TexReg 6734.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scM/s21.721"><num value="21.721">§21.721</num><heading>Injunctive Relief</heading><content>(a) The department may enforce the Act by seeking an injunction or other appropriate remedy.(b) On application for injunctive or other relief and a finding that a person is violating or has violated the Act, a court may grant the injunctive or other relief warranted by the facts.</content><note type="source"><p>Source Note: The provisions of this §21.721 adopted to be effective July 15, 2004, 29 TexReg 6734.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scM/s21.722"><num value="21.722">§21.722</num><heading>Recovery of Costs</heading><content>A responsible party is liable to the department for its costs incurred in undertaking corrective or enforcement action, including staff expenses, and for court costs and attorney's fees.</content><note type="source"><p>Source Note: The provisions of this §21.722 adopted to be effective July 15, 2004, 29 TexReg 6734.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scM/s21.723"><num value="21.723">§21.723</num><heading>Forms</heading><content>(a) The forms of Appendix A have been adopted by the commission for use pursuant to the Act and this subchapter. Reproduction of these forms is authorized for use by applicants to complete the filings required. (b) The forms have been designated as follows: (1) application for cessation of operations--Form-2113;Attached Graphic(2) application for quarry and pit safety certificate--Form-2114; Attached Graphic(3) application for transfer of quarry and pit safety certificate--Form-2115; andAttached Graphic(4) application for waiver of quarry and pit safety certificate--Form-2116. Attached Graphic</content><note type="source"><p>Source Note: The provisions of this §21.723 adopted to be effective July 15, 2004, 29 TexReg 6734.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scM/s21.724"><num value="21.724">§21.724</num><heading>Distance Between Pit and Property Line</heading><content>(a) Quarrying is considered completed when a quarry or pit is no longer an active quarry or pit under this subchapter. At the time quarrying is completed, the distance from the edge of the consolidated material of a pit that does not have lateral support to the property line of the nearest property that is not owned or leased by the operator may not be less than 50 feet.(b) This section does not apply:(1) to a pit if the operator and the adjacent property owner agree that the pit may be located closer to the property line;(2) to an excavation constructed by political subdivision to provide drainage or storm water retention; or(3) to a county with a population of 3.3 million or more.</content><note type="source"><p>Source Note: The provisions of this §21.724 adopted to be effective effective January 7, 2009, 34 TexReg 69.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c21/scN"><num value="N">SUBCHAPTER N</num><heading>RAIL FACILITIES</heading><section identifier="/us/state/tx/tac/t43/p1/c21/scN/s21.801"><num value="21.801">§21.801</num><heading>Acquisition of Real Property</heading><content>(a) The term rail facility, when used in this subchapter, shall have the definition as set forth in Transportation Code, §91.001. Except as otherwise provided herein, the department will comply with policies and procedures prescribed in 43 TAC Chapter 21, Subchapters A (relating to Land Acquisition Procedures), D (relating to Expenses Incidental to Transfer of Title To State), and G (relating to Relocation Assistance and Benefits) of this title in the acquisition of right-of-way, a property right or other interest in real property for the acquisition, construction, maintenance or operation of rail facilities. For the purposes of this subsection, references in the above subchapters to highway, road and roadway are considered references to railroad right-of-way and rail facilities. For all rail facilities, right-of-way is acquired with access between abutting properties and the rail facility permitted or denied in accordance with the approved design of the projects.(b) The department may purchase real property along alternative potential routes for a rail facility if the commission has authorized such an acquisition and the district engineer determines that:(1) the property to be acquired is or may possibly be used in connection with the rail facility;(2) the size and location of the property is reasonably related to the possible future design and alignment of the rail facility; and(3) the acquisition along alternative potential routes may be economically beneficial to the department by preserving undeveloped or underdeveloped property for a new rail corridor.(c) Right-of-way, a property right or other interest in real property for a rail facility may be acquired directly by other public or private entities under contract with the department in accordance with Transportation Code, §91.052, §91.054, and §91.075, including the use of comprehensive development agreements and pass-through fare agreements. These entities are in addition to those listed in §21.1 of this title that are otherwise authorized by law to acquire right-of-way for rail facilities.</content><note type="source"><p>Source Note: The provisions of this §21.801 adopted to be effective February 16, 2006, 31 TexReg 886.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scN/s21.802"><num value="21.802">§21.802</num><heading>Disposal of Real Property</heading><content>(a) Except as otherwise provided herein, the department will comply with policies and procedures prescribed in 43 TAC Chapter 21, Subchapter F of this title (relating to Disposal of Real Estate Interests) in the sale, conveyance or other disposition of any rights or other interests in real property acquired under this Subchapter N. For the purposes of this subsection (a), references in Subchapter F to highway, road and roadway are considered references to railroad right-of-way and rail facilities.(b) Real property interests shall be transferred or sold in consideration of such fair value as determined by the commission to be appropriate, and with the following priorities:(1) to an operating railroad company or railroad district, whether private or public, or to a governmental entity with the authority to condemn the property,(2) to abutting or adjoining landowners, or(3) to the general public.(c) The priorities described in subsection (b) shall not apply to an exchange of an interest in real property acquired but not needed for a department purpose as whole or partial consideration for another interest in real property needed for a department purpose.(d) In lieu of monetary payment for real property transferred to a governmental entity under this section, the commission may determine that fair value consideration exists if the estimated cost of future maintenance on the rail facility property to be transferred equals or exceeds the appraised fair market value of such property.(e) Revenue from the transfer or sale of property under this Subchapter N shall be deposited to the credit of the state highway fund.</content><note type="source"><p>Source Note: The provisions of this §21.802 adopted to be effective February 16, 2006, 31 TexReg 886.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c21/scO"><num value="O">SUBCHAPTER O</num><heading>UTILITY ACCOMMODATION FOR RAIL FACILITIES</heading><section identifier="/us/state/tx/tac/t43/p1/c21/scO/s21.901"><num value="21.901">§21.901</num><heading>Purpose</heading><content>This subchapter prescribes the accommodation, location, method of installation, adjustments, removal, relocation, and maintenance of utility facilities within state railroad right of way. It was developed in the interest of safety, protection, utilization, and future development of state railroad right of way with due consideration given to public service afforded by adequate and economical utility installations.</content><note type="source"><p>Source Note: The provisions of this §21.901 adopted to be effective April 20, 2006, 31 TexReg 3273.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scO/s21.902"><num value="21.902">§21.902</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) AREMA--American Railroad Engineering and Maintenance of Way Association.(2) ANSI--American National Standards Institute.(3) Backfill--Replacement of soil around and over an underground utility facility.(4) BNG--Below natural grade.(5) Boring--Piercing a hole under the surface of the ground without disturbing the earth surrounding the hole.(6) Carrier--Pipe directly enclosing a transmitted liquid or gas.(7) Casing--A pipe enclosing a carrier.(8) Coating--Material applied to or wrapped around a pipe.(9) Communication line--Fiber optic, telephone cable, and similar lines, not exceeding 400 volts to ground or 750 volts between any two points of the circuit, the transmittal power of which does not exceed 150 watts.(10) Conduit or duct--An enclosed tubular runway for protecting wires or cables.(11) Cover--The depth of material placed over a utility, measured from top of utility casing or carrier pipe to the natural ground line or construction line above the utility.(12) Department--The Texas Department of Transportation.(13) District engineer--The chief administrative officer in charge of a district, or his or her designee.(14) Electric supply--Electric light, power supply, and trolley lines, regardless of voltage used for transmitting a supply of electrical energy.(15) Encasement--Structural element surrounding a pipe or cable.(16) Flexible casing pipe--A plastic, fiberglass, or metallic pipe, including copper or aluminum pipe, having a large ratio of diameter to wall thickness that can be deformed without undue stress.(17) Grounded--Connected to the earth or to some extended conducting body that intentionally or accidentally is connected with the earth.(18) Grout--A cement mortar or slurry of fine sand or clay as conditions govern.(19) Jack-and-bore--The installation method whereby the leading edge of the jacked pipe is well ahead of the cutting face of the auger bit and the auger removes waste from inside the pipe as it is being jacked.(20) Jacking--The installation of small pipes by the use of hydraulic jacks or rams to push the pipe under the traveled surface of a road, railroad roadbed, or other facility.(21) Joint use agreement--A use and occupancy agreement that describes the obligations, responsibilities, rights, and privileges vested in the department and retained by the utility, and used for situations in which the utility has a compensable interest in the land occupied by its facilities and the land is to be jointly occupied and used for railroad and utility purposes.(22) Manhole--An opening to an underground utility system that workers or others may enter for the purpose of maintaining, inspecting, or making installations.(23) Pipe--A tubular product made as a production item for sale, except for cylinders formed from plate in the course of fabrication of auxiliary equipment.(24) Pressure--Relative internal pressure in PSI (pounds per square inch) gauge.(25) Right of way--A general term denoting land or a property interest in the land, usually in a strip, used for railroad transportation purposes.(26) Seal--A material placed between the carrier pipe and casing to prevent the intrusion of water, where ends of casing are below the ground surface.(27) Shoulder--That portion of the roadbed outside the ballast.(28) Trenching--Installing in a narrow excavation.(29) Tunneling--Excavating the earth ahead of a large diameter pipe by one or more of the following processes.(A) The earth ahead of the pipe is excavated using hand tools while the pipe is pushed through the holes by means of jacks, rams, or other mechanical devices.(B) The excavation is carried on simultaneously with the installation of tunnel liner plates.(C) The tunnel liner plates are installed immediately behind the excavation as it progresses and are assembled completely away from the inside.(30) Use and occupancy agreement--The written document, whether in the form of an agreement, acknowledgment, notice, or request, by which the department approves the use and occupancy of railroad right of way by utility facilities.(31) Utility--All publicly or cooperatively owned lines, facilities, and systems for producing, transmitting, or distributing communications, power, electricity, light, heat, gas, oil, crude products, water, steam, waste, storm water, and other similar commodities that serve the public.</content><note type="source"><p>Source Note: The provisions of this §21.902 adopted to be effective April 20, 2006, 31 TexReg 3273; amended to be effective December 11, 2008, 33 TexReg 10064.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scO/s21.903"><num value="21.903">§21.903</num><heading>Applicability</heading><content>For railroads under department jurisdiction, the provisions of this subchapter apply to:(1) new utility installations, including replacement of an existing facility with the same facility or a facility of a different type or design;(2) additions to existing utility installations;(3) adjustment and relocation of utilities; and(4) existing or planned utility installations for which agreements with the department were entered into prior to the date of the adoption of this subchapter.</content><note type="source"><p>Source Note: The provisions of this §21.903 adopted to be effective April 20, 2006, 31 TexReg 3273.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scO/s21.904"><num value="21.904">§21.904</num><heading>Exceptions</heading><content>Exceptions to any design, location, or method of installation provision in this subchapter may be authorized by the department. Requests for exceptions will be considered only where it is shown that extreme hardship or unusual conditions provide justification and where alternate measures can be prescribed in keeping with the intent of this subchapter. All requests for exceptions shall be fully documented including design data, cost comparisons, and other pertinent information. Exceptions must be recommended by the district engineer and authorized by the director of the Right of Way Division.</content><note type="source"><p>Source Note: The provisions of this §21.904 adopted to be effective April 20, 2006, 31 TexReg 3273.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scO/s21.905"><num value="21.905">§21.905</num><heading>Requests</heading><content>Use and occupancy agreements are required when utility facilities are installed, relocated, or maintained along or across department property. In situations in which the utility has a prior property interest that is being retained within the railroad right of way, a joint use agreement is required. Approval of requests to install, maintain, or relocate a utility facility within department property shall be evidenced by an agreement that includes the terms, conditions, and utility location plans as may be prescribed by the director of the Right of Way Division to convey necessary information in order to protect and preserve the railroad and the safety, health, and welfare of those who are using it. Requests for utility facility installation along with plans for the proposed installation shall be submitted to the department at least 30 days prior to the commencing of construction. It is the utility's responsibility to inform the department, in writing, of any:(1) material change in the character, use, or function of an approved utility facility; and(2) name, ownership, or address change.</content><note type="source"><p>Source Note: The provisions of this §21.905 adopted to be effective April 20, 2006, 31 TexReg 3273; amended to be effective December 11, 2008, 33 TexReg 10064.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scO/s21.906"><num value="21.906">§21.906</num><heading>Design</heading><content>(a) Location.(1) Utility lines shall be located to avoid or minimize the need for adjustments for future railroad improvements and to permit access to the utility lines for maintenance with minimum interference to railroad traffic.(2) Pipelines may be installed under tracks by boring, jacking, or in some cases, open-trenching. Water jetting and puddling are not permitted. Holes may be mechanically bored and cased using a cutting head and continuous auger mounted inside of the casing. Small diameter holes may be augured and the casing or utility facility pushed in later.(3) Where practical, pipelines carrying liquefied petroleum gas shall cross the railway where the tracks are carried on an embankment.(4) All high-pressure pipelines of greater than 60-psi internal pressure, except those in public roads, shall be prominently marked at the property line, on both sides of the track for under crossings, by signs that state the size of the line and its depth.(5) The utility is not permitted to attach to bridges or route facilities through drainage structures or cattle passes. Utilities are not to be attached to other railroad structures without the written approval of the department.(6) As a general rule, overhead power, communication, and cable television line crossings at bridges must be avoided.(b) Design considerations.(1) The design of any utility installation will be the responsibility of the utility. An installation within state railroad right of way must be reviewed and approved by the department with regard to location and the manner of adjustment. This includes the measures to be taken to preserve the safety and flow of rail traffic, structural integrity of the roadway or structure, ease of maintenance, and the integrity of the utility facility. Utility installations on, over, or under state railroad right of way shall conform with this subchapter or, as a minimum, the appropriate requirements outlined in the following:(A) Safety Rules for the Installation and Maintenance of Electric Supply and Communication Lines-National Electric Safety Code;(B) Title 49 C.F.R. Part 192, Transportation of Natural and Other Gas by Pipeline: Minimum Federal Safety Standards;(C) Title 49 C.F.R. Part 195, Transportation of Hazardous Liquids by Pipelines;(D) American Society for Testing and Materials (ASTM) Specifications;(E) Texas Manual on Uniform Traffic Control Devices; and(F) Rules and Regulations for Public Water Systems, Texas Commission on Environmental Quality.(2) All utility installations on, over, or under state railroad right of way shall be of durable materials designed for long service life and relatively free from routine servicing and maintenance. All utility installations shall comply with current applicable material specifications and codes.(3) References given to any manual, publication, or specification are intended to be the most current edition. If a conflict occurs between any publication and this subchapter, the most restrictive specification will be used.(4) For all boring and jacking installations greater than 26 inches in diameter, and at a depth of between five and one-half feet and 10 feet below top of tie, a geotechnical study will be performed to determine the presence of granular material and high water table elevation at the sole expense of the utility. The study will include recommendations and a plan for a procedure to prevent failure and a collapse of the bore. Core samples are to be taken near the ends of tie at the proposed location, at least as deep as the bottom of the proposed horizontal bore. Test results must be reviewed and approved by the department prior to boring activities commencing. The department reserves the right, based on the test results, to require the utility, at its own expense, to select an alternate location or to implement additional engineering specifications in order to utilize the desired location.(c) Safety flagging.(1) When work is performed within 25 feet of the centerline of the track, railroad flagging will be required.(2) Flagging services will be conducted in an industry approved manner subject to the approval of the department.(d) Material storage. Storage of materials and parking of equipment and vehicles not in use in actual utility work is not permitted on state railroad right of way.</content><note type="source"><p>Source Note: The provisions of this §21.906 adopted to be effective April 20, 2006, 31 TexReg 3273.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scO/s21.907"><num value="21.907">§21.907</num><heading>Maintenance and Servicing Utilities</heading><content>(a) Regular maintenance.(1) Maintenance of the utility facility is the responsibility of the utility owner.(2) Maintenance must be performed to keep the facility in an as-constructed condition, and in a good state of repair in accordance with the requirements of applicable federal, state, and local laws, regulatory standards, and utility codes.(3) The utility shall replace and stabilize all earth cover and vegetation when it has eroded over an underground utility facility where such erosion is due to, or caused by, the placement or existence of the underground utility facility.(4) The utility shall be responsible for correcting any settlement of backfill, fills, and embankments that may occur.(b) Emergency maintenance.(1) Emergency maintenance of utilities located on state railroad right of way is permissible if an emergency exists that endangers the life, safety, or welfare of the public and requires immediate repair. The utility shall take all necessary and reasonable safety measures to protect the public and the railroad.(2) The utility will advise the department of the need for emergency maintenance as soon as possible and will restore the right of way and facilities to their original condition.</content><note type="source"><p>Source Note: The provisions of this §21.907 adopted to be effective April 20, 2006, 31 TexReg 3273.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scO/s21.908"><num value="21.908">§21.908</num><heading>Preservation, Restoration, and Cleanup</heading><content>(a) Disturbed areas.(1) Areas of state railroad right of way disturbed by the installation, maintenance, removal, or relocation of utilities shall be kept to a minimum.(2) Disturbed areas shall be returned to normal grade and elevation, with compaction of backfill material, and all excess or undesirable material removed by the utility.(3) The utility shall provide protection against erosion in disturbed areas subject to erosion. The protection may be in the form of rock riprap, wash checks, hay or straw cover, or other material that is approved by the department and does not interfere with railroad maintenance.(b) Drainage facilities. Care shall be taken to avoid disturbing existing drainage facilities. Underground utility facilities shall be bedded with pervious material and outlets provided for entrapped water. Under drains shall be installed where necessary.(c) Cleanup. Unused material or debris shall be removed from the work site area. At the end of every construction day, construction equipment and materials shall be removed as far from the operating railroad tracks as possible, a minimum of 25 feet from the centerline.(d) Vegetation control.(1) When utility installation is complete, the utility shall return the railroad right of way to a condition at least equal to its original condition, including reseeding or resodding to prevent erosion.(2) The department may specify the extent and methods of tree, bush, shrubbery, or any other aesthetic feature's removal, trimming, or replacement in conjunction with paragraph (1) of this subsection.(3) Pruning of trees shall comply with the department's Roadside Vegetation Management Manual. When unapproved pruning or cutting or damage occurs, the utility shall be responsible for the replacement of trees or for damages to existing trees and bushes.</content><note type="source"><p>Source Note: The provisions of this §21.908 adopted to be effective April 20, 2006, 31 TexReg 3273.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scO/s21.909"><num value="21.909">§21.909</num><heading>Utilities Paralleling Railroad Property</heading><content>(a) General Provisions. Any utility line greater than 500 feet in length will be considered a parallel line and is to be located on uniform alignment, within 10 feet or less of the property line so as to provide a safe environment and to preserve space for future railroad improvements. Utilities will be located so as to provide a safe environment and shall conform to the current National Electrical Safety Code, American Waterworks Association Specifications, Federal Pipeline Safety Regulations, and The American Railway Engineering and Maintenance Association Specifications. If laws or orders of public authority prescribe a higher degree of protection, then the higher degree of protection prescribed shall supersede the provisions of this subchapter.(b) Overhead installations.(1) A minimum of four feet clearance is required above signal and communication lines.(2) Poles must be located at least 50 feet from the centerline of the railroad main, branch, and running tracks, CTC sidings, and heavy tonnage spurs. Pole location adjacent to industry tracks must provide at least a 10-foot clearance from the centerline of the track, when measured at right angles. If located adjacent to curved track, then the clearance must be increased at a rate of one and one-half inches per degree of curved track.(3) Regardless of the voltage, unguyed poles shall be located a minimum distance from the centerline of any track, equal to the height of the pole above the ground-line plus 10 feet. If guy wiring is required, the guys shall be placed in such a manner as to keep the pole from leaning or falling in the direction of the tracks.(4) Poles, including steel poles, must be located a minimum distance from the railroad signal and communication line equal to the height of the pole above the ground-line, or must be guyed at right angles to the lines. High voltage towers, 34.5kV and higher, must be located off railroad right of way.(5) For proposed electrical lines paralleling tracks, the department may request that an inductive interference study be performed at the expense of the utility. Inductive interference from certain lines has the potential to disrupt the signal system in the track causing failures in the track signals and highway grade crossing warning devices. The district engineer may require an inductive interference study based on the proposed proximity of high voltage lines to other utility lines.(c) Underground installations.(1) Underground utility installations shall be located on top of the back slope at the outer limits of the railroad property.(2) Pipelines laid longitudinally on state railroad right of way shall be located as far as practical from any tracks or other important structures. If located within 40 feet of the centerline of any track, the carrier pipe shall be encased or be of special design as approved by the district engineer.(3) If the pipeline is located 40 feet or less from the centerline of the track, the pipeline shall be encased in a steel pipe subject to the approval of the department. No pipe may be placed closer than 25 feet from the centerline of the track. The pipe must be buried with a minimum cover of three feet.(A) If less than minimum depth is necessary because of existing utilities, water table, ordinance, or similar reasons, the line shall be rerouted.(B) Locations where it will be difficult to attain minimum depth due to wet or rocky terrain shall be avoided. Any location change from the plans must be approved by the department.(4) The use of plastic carrier pipe for sewer, water, natural gas, and other liquids is acceptable under specific circumstances. The use of plastic pipe is satisfactory if the pipe is designed to meet AREMA and all applicable federal and state codes, and if the carrier pipe is properly encased with a steel casing pipe for the entire length on state railroad right of way.(5) Manholes shall be limited to those necessary for installation and maintenance of underground lines and may vary as to size and shape depending on the type of utility they serve. To conserve space, their dimensions should be minimally acceptable by good engineering and safety standards. The only equipment to be installed in manholes located on the right of way is that which is essential to the normal flow of the utility, such as circuit reclosers, cable splices, relays, valves, and regulators. Other equipment shall be located outside the limits of the state railroad right of way. Manholes shall not protrude above the surrounding ground nor be located in the shoulder, shoulder slope, ditch, back slope, or within 25 feet of the centerline of the track without the approval of the department.(6) Electric power lines.(A) A minimum depth of three feet BNG will be maintained for 750 volts and less, and four feet BNG for greater than 750 volts.(B) A 6-inch wide warning tape will be installed one foot BNG directly over the underground power line where located on railroad right of way outside the track ballast sections.(7) Fiber optic lines.(A) A minimum depth of four feet BNG is required for fiber optic cable wire lines.(B) Whenever feasible, all cable shall be laid within five feet from property lines.(C) A six-inch wide warning tape will be installed, one foot BNG directly over the underground fiber optic line where located on state railroad right of way outside the track ballast sections.(D) No rail plow will be permitted.</content><note type="source"><p>Source Note: The provisions of this §21.909 adopted to be effective April 20, 2006, 31 TexReg 3273.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scO/s21.910"><num value="21.910">§21.910</num><heading>Utilities Crossing Railroad Property</heading><content>(a) General provisions. Installations crossing railroad property, to the extent feasible and practical, are to be perpendicular to the railroad alignment and preferably at not less than 45 degrees to the centerline of the track. Utilities shall not be placed within culverts or under railroad bridges, buildings, or other important structures. Utilities will be located so as to provide a safe environment and shall conform to the current National Electrical Safety Code, American Waterworks Association Specifications, Federal Pipeline Safety Regulations, and The American Railway Engineering and Maintenance Association Specifications. If laws or orders of public authority prescribe a higher degree of protection, then the higher degree of protection prescribed shall supersede the provisions of this subchapter. (b) Overhead installations. (1) A minimum of four feet clearance is required above signal and communication lines. (2) Poles must be located 50 feet from the centerline of the railroad main, branch, and running tracks, CTC sidings, and heavy tonnage spurs. Poles located adjacent to industry tracks must provide at least a 10 foot clearance from the centerline of the track when measured at right angles. If located adjacent to curved tracks, then the clearance must be increased at a rate of one and one-half inches per degree of curved track. (3) Regardless of the voltage, unguyed poles shall be located a minimum distance from the centerline of any track, equal to the height of the pole above the ground-line plus 10 feet. If guying is required, the guys shall be placed in such a manner as to keep the pole from leaning or falling in the direction of the tracks. (4) Poles, including steel poles, must be located a minimum distance from the railroad signal and communication line equal to the height of the pole above the ground-line or must be guyed at right angles to the lines. High voltage towers, 34.5kV and higher, must be located off state railroad right of way. (5) Crossings shall not be installed under or within 500 feet of the end of any railroad bridge, or 300 feet from the centerline of any culvert or switch area. (6) Complete spanning of the property is encouraged with supportive structures and appurtenances located outside state railroad right of way. For electric supply lines, the crossing span shall not exceed 150 feet with adjacent span not exceeding one and one-half times the crossing span length. For communication lines, the crossing span shall not exceed 100 feet in heavy loading districts, 125 feet in medium loading districts, and 150 feet in light loading districts. The adjacent span shall not exceed one and one-half times the crossing span length. For heavier type construction, the district engineer may allow longer spans. (7) Joint-use construction is encouraged at locations where more than one utility or type of facility is involved. However, electricity and petroleum, natural gas, or flammable materials shall not be combined. Pipe truss design and layout are subject to review and approval by the district engineer. (8) To ensure that overhead wire crossings are clear from contact with any equipment passing under the wires, communication lines shall be constructed with a minimum clearance of 24 feet above the top of the rail, and electric lines with a minimum clearance of 26 and one-half feet or greater above the top of the rail when required by the National Electric Safety Code or state and local regulations. Electric lines must have a fluorescent ball marker on low wire over the centerline of the track. (9) The utility owner will label the posts closest to the crossing with the owner's name and telephone number for emergency contact. (10) All overhead flammable and hazardous material lines require district engineer approval. (11) For proposed electrical lines crossing tracks, the department may require that an inductive interference study be performed at the expense of the utility owner. Inductive interference from certain lines has the potential to disrupt the signal system in the track, causing failures in the track signals, and highway grade crossing warning devices. The district engineer may require an inductive interference study based on the proposed proximity of high voltage lines to other utility lines. (c) Underground installations. (1) General. (A) All underground utility crossings of railroad trackage shall be designed to carry Cooper's E-80 (Railroad) live loading with diesel impact (AREMA, Cooper's loading Section 8-2-8). This 80,000 pound axle load may be distributed laterally a distance of three feet, plus a distance equal to the depth from structure grade line to the base of the rail, on each side of the centerline of single tracks, or the centerline of outer track where multiple tracks are to be crossed. In no case shall railroad loading design extend less than 10 feet laterally from the centerline of the track. Longitudinally, the load may be distributed between the five-foot axle spacing of the Cooper configuration. Railroad loading criteria will also apply where future tracks on state railroad right of way are contemplated, to the extent this information is available. (B) All utility crossings under ditches and railroad trackage shall have a minimum depth of cover of three feet below the flow line of the ditch or ground surface and five and one-half feet from the base of the rail. In fill sections, the natural ground line at the toe of the slope will be considered as ditch grade. The depth of cover shall not be less than that meeting applicable industry standards. (C) For all boring and jacking installations under main and passing tracks greater than 26 inches in diameter and at a depth of between five and one-half feet and 10 feet below top of tie, a geotechnical study must be performed to determine the presence of granular material and high water table elevation, at the sole expense of the utility. The study will include recommendations and a plan for a procedure to prevent failure and a collapse of the bore. Generally, core samples are to be taken near the ends of tie at the proposed location, at least as deep as the bottom of the proposed horizontal bore. Core sample results must be reviewed and approved by the department prior to beginning boring activities. Based on core sample results, the department may require additional engineering specifications be implemented, at the sole expense of the utility, or may require the utility to select an alternate location. (D) The use of plastic carrier pipe for sewer, water, natural gas, and other liquids is acceptable under specific circumstances. The use of plastic pipe is satisfactory if the pipe is designed to meet all applicable federal and state codes, and if the carrier pipe is properly encased within a steel casing pipe per AREMA standards. This casing must extend the full width of the right of way. Casing may be omitted only for gaseous products if the carrier pipe is steel and, at a minimum, is placed 10 feet below the base of the rail per AREMA standards. (2) General design and construction requirements. (A) If the minimum depth is not attainable because of existing utilities, water table, ordinances, or similar reasons, the line shall be rerouted. (B) Locations that are considered unsuitable or undesirable are to be avoided. These include deep cuts in wet or rocky terrain or where it will be difficult to obtain minimum depth. (C) Underground installations may be made by open-trenching from the property line to the toe of the fill slope in fill sections, and to the toe of the shoulder slope in cut sections, but to no closer than 30 feet of the centerline of the track. The remainder will be tunneled, augured, jacked, or directional-bored through the roadbed. (D) Manholes shall be located outside railroad right of way property, when possible. Manholes will not be located in the shoulder, shoulder slope, ditch, or backslope, or within 25 feet of the centerline of track, and shall not protrude above the surrounding ground without the approval of the department. (E) Jacking pits shall be located a minimum of 30 feet from the centerline of the track. (3) Pipeline requirements. (A) Pipeline designs are to specify the type and class of material, maximum working pressures, and test and design pressure. Pipelines that are not constructed, operated, and maintained under regulations established under the U.S. Department of Transportation Hazardous Materials Regulations Board shall, upon revisions in the class of material or an increase in the maximum operating pressure, obtain department approval. (B) Pipelines carrying oil, liquefied petroleum gas, natural or manufactured gas, or other flammable products shall conform to the requirements of the current AREMA; ANSI/ASME B 31.4 Code for pressure piping - Liquid Petroleum Transportation Piping Systems; ANSI B 31.8 Code for pressure piping - Gas Transmission and Distribution Piping Systems; other applicable ANSI codes; and 49 C.F.R. Part 192 - Transportation of Natural or Other Gas by Pipeline, or Part 195 - Transportation of Hazardous Liquids by Pipeline, except that the maximum allowable stress of design of steel pipe shall not exceed the percentages of the specified minimum yield strength (multiplied by longitudinal joint factor) of the pipe as defined in the ANSI codes. (C) Pipelines under railroad tracks and across state railroad right of way property shall be encased. Casings shall extend from right of way line to right of way line unless otherwise approved. (D) Pipelines and casing pipes shall be suitably insulated from underground conduits carrying electric wires on railroad property. (E) Reinforced concrete pipe must be encased for a distance as wide as the embankment at the utility crossing in order to protect against track failure due to joint separation. (4) Encasement of utilities. (A) Casings may be omitted for gaseous products only under the following circumstances. (i) Carrier pipe must be steel and the wall thickness must conform to Cooper E-80 loading for casing pipe shown in the tables included in the AREMA manual Chapter 1, Part 5 for Pipeline Crossings. The length of thicker-walled pipe shall extend from railroad right of way line to right of way line. This will result in thicker-walled pipe on state railroad right of way. (ii) All steel pipes shall be coated and cathodically protected. (iii) The depth from base of rail to top of pipe shall not be less than 10 feet below base of rail. The depth from ditches or other low points on railroad right of way shall not be less than six feet from ground line to top of pipe. (B) In circumstances where it is not feasible to install encasement from right of way line to right of way line, casing pipe under railroad tracks and across railroad property shall extend to the greater of the following distances, measured at right angles to the centerline of the track: (i) two feet beyond toe of slope; (ii) three feet beyond ditch line; (iii) 25 feet from centerline of outside track when casing is sealed at both ends; (iv) 45 feet from centerline of outside track when casing is open at both ends; or (v) if additional track is planned for future construction, casing must extend far enough to meet above distances given the additional track requirement. (C) Pipelines and casing pipe shall be suitably insulated from underground conduits carrying electric wires on railroad property. (D) Casing pipe and joints shall be made of metal and of leak proof construction. Casings shall be capable of withstanding the railroad loadings and other loads superimposed upon them. (E) Wall thickness designations for steel casing pipe for Cooper E-80 loading including impact are as follows: Attached Graphic(i) Steel pipe shall have a minimum yield strength of 35,000 pounds per square inch. (ii) All metallic casing pipes are to be designed for effective corrosion control and long service life and relatively free from routine servicing and maintenance. Corrosion control measures must include cathodic protection. (iii) Cast iron may be used for casing and shall conform to ANSI A21. The pipe shall be connected with mechanical-type joints. Plain-end pipe shall be connected with compression-type couplings. The strength of the cast iron pipe to sustain external loads shall be computed in accordance with the most current ANSI A21.1 Manual for the Computation of Strength and Thickness of Cast Iron Pipe. (F) The inside diameter of the casing pipe shall be such that the carrier pipe can be removed without disturbing the casing. All joints or couplings, supports, insulators, or centering devices for the carrier pipe shall be considered in the selection of the casing diameter. (G) For flexible casing pipe, a minimum vertical deflection clearance of the casing pipe shall be three percent of its diameter plus one-half inch so that no loads from the roadbed, track, railroad traffic, or casing pipe are transmitted to the carrier pipe. When insulators are used on the carrier pipe, the relationship of the casing size to the size of the carrier pipe is as follows: Attached Graphic(5) Casing and pipeline installation. (A) Casing and pipeline installations must be accomplished by directional boring, jack-and-bore, tunneling, or other approved methods. Tunneling construction under tracks will be permitted only under direct supervision of the department. Tunneling procedures and equipment, as well as structural design, must have department approval prior to starting any work on state railroad right of way. Generally, tunneling will not be considered where less than six feet of cover exists, or where excessively sandy, loose, or rocky soils are anticipated. Rail elevations over the work must be monitored at intervals prescribed by the department to detect any track movement. Movements of over one-quarter inch vertically shall be immediately reported to the department. The following requirements shall apply to these construction methods. (i) The use of water under pressure jetting or puddling will not be permitted to facilitate boring, pushing, or jacking operations. Some boring may require water to lubricate cutter and pipe, and under such conditions, is considered dry boring. (ii) Where unstable soil conditions exist, boring or tunneling operations shall be conducted in such a manner as not to be detrimental to the railroad. (iii) If excessive voids or too large a bored hole is produced during casing or pipeline installations, or if it is necessary to abandon a bored or tunneled hole, prompt remedial action shall be taken by the utility. (iv) All voids or abandoned holes caused by boring or jacking are to be filled by pressure grouting. The grout material shall be sand cement slurry with a minimum of two sacks of cement per cubic yard and a minimum of water to assure satisfactory placement. (v) The hole diameter resulting from bored or tunneled installations shall not exceed the outside diameter of the utility pipe, cable or casing including coating, by more than one and one-half inches for pipes with an inside diameter of 12 inches or less, or two inches for pipes with an inside diameter greater than 12 inches. (vi) Pits for boring, tunneling, or jacking will not be permitted within 30 feet of the centerline of the track or closer to the track than the toe of fill slopes in fill sections, or toe of shoulder slopes in ditch sections when pipes are allowed on the railroad property. (B) Vents. In casing pipe installations, vents are appurtenances by which fluids or gases between carrier and casing may be inspected, sampled, exhausted, or evacuated. (i) Vents shall be located at the high end of short casings and at both ends of casings longer than 150 feet. (ii) Vent standpipes shall be located and constructed so as not to interfere with maintenance of the railroad or to be concealed by vegetation. Where possible, they shall be marked and located at the property line. The markers shall give the name and address of the owner, and a phone number to contact in case of an emergency. (iii) Casing pipe shall be properly vented when sealed. Vent pipes shall be of sufficient diameter, but in no case less than two inches in diameter, and shall be attached near each end of the casing, projecting through the ground surface at property lines. (iv) Vent pipes shall extend not less than four feet above ground surface. The top of a vent pipe shall be fitted with a properly screened down-turned elbow or a relief valve. (v) For pipelines carrying flammable materials, vent pipes on casings shall be at least 16 feet vertically from aerial electric wires. Casings shall be suitably insulated from underground conduits carrying electric wires on railroad right of way. (C) Shut-off valves. (i) The utility shall install accessible emergency shut-off valves within effective distances on each side of the railroad track. Where pipelines are provided with automatic control stations, no additional valves will be required. (ii) Shut-off valves may not be placed on the right of way unless approved by the district engineer. If approval is acquired, a guardrail must protect the shut-off valve. (iii) When a guardrail is required, its height shall be four feet above the ground line. All four corner posts shall be driven to a minimum depth of four feet below ground line. There shall be a minimum clearance of two feet from the valve to the guardrail. The steel pipes for the four corner posts and guardrail shall have a minimum diameter of four inches. All joints will be welded with a one-quarter inch fillet weld all around. (6) Water lines. (A) Where casing pipe is used, venting is not required. Sealing will be required if the ends of the casing are not above high water. (B) Where non-metallic pipe is permitted and installed, steel casings are required from right of way line to right of way line. (C) Manholes must be located outside the right of way, if possible. Manholes shall not be located within 25 feet of railroad trackage in the shoulder, shoulder slope, ditch or backslope, and shall not protrude above the surrounding ground without the approval of the department. (D) The utility shall place a readily identifiable and suitable marker at each railroad property line where it is crossed by a water line. (7) Sewer lines. (A) New and relocated sewer lines shall be constructed with satisfactory joints, materials, and designs that will provide protection and resistance to damage from sulfide gases and other corrosive elements to which they may be exposed. (B) Where casing pipe is used, venting and sealing of casing will be required. (C) Where non-metallic pipe is permitted and installed, a durable metal wire shall be concurrently installed or other means shall be provided for detection purposes. (D) Manholes must be located outside the right of way, if possible. Manholes shall not be located within 25 feet of railroad trackage in the shoulder, shoulder slope, ditch or backslope, and shall not protrude above the surrounding ground without the approval of the department. (8) Electric power lines. (A) Lines must remain at a minimum depth of five and one-half feet below the base of rail (BBR). (B) Lines must remain at a minimum depth of three feet BNG for 750 volts and less, and four feet BNG for greater than 750 volts. (C) The wireline must be encased completely across the state railroad right of way with a rigid metallic conduit. (D) Crossings must not be installed under or within 50 feet of the end of any railroad bridge, centerline of any culvert, or switch area. (E) Department personnel must be present during installation if railroad signals are in the vicinity of wireline crossings, unless otherwise authorized by the department. (F) Markers that identify the utility shall be placed at both property lines for utilities crossing the railroad property. For parallel lines, markers shall be placed above the cable at intervals no less than 300 feet apart. The markers shall identify the owner, type of cable, and an emergency telephone number. A six-inch wide warning tape shall be installed, one foot BNG directly over the underground power line where located on state railroad right of way outside the track ballast sections. (G) Above-ground utility appurtenances installed as a part of an underground installation shall be located at or near the railroad property line and shall not be any closer than 25 feet to the centerline of track. (9) Fiber optic lines. The same requirements for electric power line crossings as outlined in paragraph (8) of this subsection will apply for fiber optic line crossings except that: (A) a minimum depth of four feet BNG is required for fiber optic cable wirelines; (B) the department must approve any specialized equipment used to install cable; and (C) no rail plow will be allowed for installation purposes.</content><note type="source"><p>Source Note: The provisions of this §21.910 adopted to be effective April 20, 2006, 31 TexReg 3273.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scO/s21.911"><num value="21.911">§21.911</num><heading>Plans and Approvals</heading><content>(a) Plans.(1) The design of all utility installations will be the responsibility of the utility.(2) The plans for the proposed installation shall be submitted to and meet the approval of the department before construction is initiated.(3) Plans shall be drawn to scale showing the relationship of the proposed utility line to the railroad tracks, the angle of crossing, location of valves and vents, the railroad mile post and engineering station, railroad property lines, and general layout of tracks and other railroad facilities. The plans shall include a cross-section or sections from the field survey that will show utility placement in relation to actual profile of ground and tracks. If tunneling is proposed, method of supporting tracks or driving of tunnel shall be shown. The geotechnical study, when required, shall be included.(4) For carrier pipe and casing pipe, the plans shall contain the:(A) contents to be carried;(B) inside diameter;(C) pipe material;(D) specifications and grade of material;(E) wall thickness;(F) actual working pressure;(G) type of joints;(H) longitudinal joint factor;(I) coating;(J) method of installation;(K) vents (number, size, height above ground);(L) seals-both ends, one end;(M) cover (top of tie to top of pipe or casing);(N) cover (other than under tracks);(O) cover (at ditches);(P) cathodic protection; and(Q) type, size, and spacing of insulators or supports.(5) When a geotechnical study is required, the findings and protection plan shall be prepared by a Texas licensed civil engineer and included with the plans. The geotechnical crew must be properly permitted to enter state railroad right of way and a flagger will be required when working within 25 feet of the track.(6) Plans shall be submitted to the department no less than 30 days prior to the beginning of construction.(b) Approvals. Approval of plans is required for all installations of utilities prior to initiation of work on state railroad right of way. The execution of the work on state railroad right of way shall be subject to the inspection and direction of the department.</content><note type="source"><p>Source Note: The provisions of this §21.911 adopted to be effective April 20, 2006, 31 TexReg 3273.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c21/scQ"><num value="Q">SUBCHAPTER Q</num><heading>REGULATION OF DIRECTIONAL SIGNS</heading><section identifier="/us/state/tx/tac/t43/p1/c21/scQ/s21.941"><num value="21.941">§21.941</num><heading>Description of Directional Sign</heading><content>A directional sign is a sign that contains only a message that identifies an attraction or activity that meets the requirements of this section and provides directional information, such as mileage, route number, or exit number, useful to the traveler in locating the attraction or activity. A directional sign may not contain descriptive words or phrases or pictorial or photographic representations of the activity or its environs.</content><note type="source"><p>Source Note: The provisions of this §21.941 adopted to be effective July 1, 2011, 36 TexReg 2418.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scQ/s21.942"><num value="21.942">§21.942</num><heading>Requirements for Erection and Maintenance of Sign</heading><content>(a) Before a person may erect a directional sign, the person must obtain the approval of the department. A license or permit issued under Subchapter I or Subchapter K of this chapter (relating to Regulation of Signs along Interstate and Primary Highways and Control of Signs along Rural Roads, respectively) is not required for the erection or maintenance of a directional sign.(b) To obtain the approval the person must file an application on a form prescribed by the department that shows the location, message content, construction, and dimensions of the sign.(c) No fee is required for the application or approval.</content><note type="source"><p>Source Note: The provisions of this §21.942 adopted to be effective July 1, 2011, 36 TexReg 2418.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scQ/s21.943"><num value="21.943">§21.943</num><heading>Eligibility</heading><content>(a) To be eligible for a directional sign, a privately owned activity or attraction must be of national or regional interest to the traveling public and must be:(1) a natural phenomenon;(2) a scenic attraction;(3) an historic, educational, cultural, scientific, or religious site; or(4) an outdoor recreational area.(b) The department may determine whether an attraction or activity satisfies the requirements of subsection (a) of this section. In making the determination the department may use among other resources the National Register of Historic Places and the "Texas State Travel Guide" published by the State of Texas.</content><note type="source"><p>Source Note: The provisions of this §21.943 adopted to be effective July 1, 2011, 36 TexReg 2418.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scQ/s21.944"><num value="21.944">§21.944</num><heading>Size of Sign</heading><content>A sign, including its border and trim but excluding its supports, may not exceed:(1) an area of 150 square feet;(2) a height of 20 feet; or(3) a length of 20 feet.</content><note type="source"><p>Source Note: The provisions of this §21.944 adopted to be effective July 1, 2011, 36 TexReg 2418.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scQ/s21.945"><num value="21.945">§21.945</num><heading>Condition of Sign</heading><content>(a) A directional sign must be structurally safe and maintained in good repair.(b) A directional sign may not be obsolete.(c) A directional sign may not move or have animated or moving parts.</content><note type="source"><p>Source Note: The provisions of this §21.945 adopted to be effective July 1, 2011, 36 TexReg 2418.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scQ/s21.946"><num value="21.946">§21.946</num><heading>Location and Spacing</heading><content>(a) A directional sign may not be located within 2,000 feet of:(1) an interchange or intersection at grade along the interstate system or other primary system, as measured from the nearest point of the beginning, ending, or pavement widening at the exit from or entrance to the main-traveled way; or(2) a rest area, park, or scenic area.(b) A directional sign may not:(1) obscure or otherwise interfere with the effectiveness of an official traffic sign, signal, or device;(2) obstruct or interfere with a driver's view of approaching, merging, or intersecting traffic;(3) be erected on a tree or painted or drawn on a rock or other natural feature; or(4) be located in a rest area, parkland, or scenic area.(c) Two directional signs facing the same direction of travel may not be spaced less than one mile apart.(d) Not more than three directional signs relating to the same attraction or activity and facing the same direction of travel may be erected along a single route approaching the attraction or activity.(e) A directional sign located adjacent to the interstate highway system must be within 75 air miles of the attraction or activity. A sign located adjacent to the primary highway system must be within 50 air miles of the attraction or activity.</content><note type="source"><p>Source Note: The provisions of this §21.946 adopted to be effective July 1, 2011, 36 TexReg 2418.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scQ/s21.947"><num value="21.947">§21.947</num><heading>Lighting of Sign</heading><content>(a) A directional sign may not contain, include, or be illuminated by flashing, intermittent, or moving lights.(b) Lights that are a part of or illuminate a directional sign:(1) must be shielded so that beams or rays of light are not being directed at any portion of the traveled way of an interstate or primary highway; and(2) may not be of such intensity or brilliance that they:(A) impair the vision of the driver of a motor vehicle on an interstate or primary highway or otherwise interfere with the driver's operation of the motor vehicle; or(B) obscure or interfere with the effectiveness of an official traffic sign, device, or signal.</content><note type="source"><p>Source Note: The provisions of this §21.947 adopted to be effective July 1, 2011, 36 TexReg 2418.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c21/scR"><num value="R">SUBCHAPTER R</num><heading>LEASING OF RIGHT OF WAY TO SALTWATER PIPELINE OPERATORS</heading><section identifier="/us/state/tx/tac/t43/p1/c21/scR/s21.961"><num value="21.961">§21.961</num><heading>Purpose</heading><content>(a) The Texas Department of Transportation may lease any highway right of way not currently needed for highway purposes to a saltwater pipeline operator.(b) This subchapter establishes leasing requirements and procedures for lease of right of way by saltwater pipeline operators and implements Natural Resources Code, Chapter 91 Subchapter T. This subchapter applies only to leasing and not to other permissive uses of the right of way.(c) The procedure provided by this subchapter is separate from and in addition to the procedures established under Subchapter L of this chapter (relating to Leasing of Highway Assets).</content><note type="source"><p>Source Note: The provisions of this §21.961 adopted to be effective October 12, 2014, 39 TexReg 7946.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scR/s21.962"><num value="21.962">§21.962</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings unless the context clearly indicates otherwise:(1) Commission--The Texas Transportation Commission.(2) Department--The Texas Department of Transportation.(3) Director--The director of the right of way division of the department or the director's designee.(4) District--One of the 25 geographical district offices of the department.(5) District administrator--The chief executive officer in charge of a District.(6) Executive director--The executive director of the department or the executive director's designee not below the level of deputy executive director.(7) Premises--The area within a right of way being leased by a saltwater pipeline operator for the installation, operation and maintenance of a saltwater pipeline facility.(8) Right of way--An interest in real property that is held or controlled by the department for a highway purpose.(9) Saltwater pipeline facility--A pipeline facility that conducts water that contains salt and other substances and that is intended to be used in drilling or operating a well used in the exploration for or production of oil or gas, including an injection well used for enhanced recovery operations, or that is produced during drilling or operating an oil, gas, or other type of well. The term includes a pipeline facility that conducts flowback and produced water from an oil or gas well on which a hydraulic fracturing treatment has been performed to an oil and gas waste disposal well for disposal.(10) Saltwater pipeline operator--A person, who owns, installs, manages, operates, leases, or controls a saltwater pipeline facility.</content><note type="source"><p>Source Note: The provisions of this §21.962 adopted to be effective October 12, 2014, 39 TexReg 7946; amended to be effective April 20, 2016, 41 TexReg 2777.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scR/s21.963"><num value="21.963">§21.963</num><heading>Lease of Right of Way for a Saltwater Pipeline Facility</heading><content>(a) The director may execute the lease of the premises for the installation, operation, and maintenance of a saltwater pipeline facility if the director finds that:(1) there is sufficient area within the right of way to accommodate the saltwater pipeline facility;(2) the area proposed as the premises will not be needed for highway purposes during the term of the lease; and(3) the lessee's use of the right of way will be consistent with safety, maintenance, operation, and beautification of the state highway system.(b) The lessee is required to pay to the department an amount determined by the department that is not less than fair market value for the lease of the premises. The department may consider its costs of administering the lease in establishing the amount charged.(c) Except as provided by subsection (d) of this section, the term of the lease may not exceed 10 years, unless the lease contains a cancellation clause by which the department, in its sole discretion, may terminate the lease after 10 years with not more than 12 months' notice.(d) The term of a lease for the installation of an above-ground saltwater pipeline facility may not exceed 180 days.</content><note type="source"><p>Source Note: The provisions of this §21.963 adopted to be effective October 12, 2014, 39 TexReg 7946; amended to be effective April 20, 2016, 41 TexReg 2777.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scR/s21.964"><num value="21.964">§21.964</num><heading>Lease Request</heading><content>(a) To lease an area within the right of way a person must submit, at the person's sole expense, a written application to the district administrator of the district in which the right of way is located. The application must be in a form approved by the department and must include:(1) the name and address of the person requesting the lease;(2) a legal description of the proposed premises;(3) a description of the saltwater pipeline facility to be installed, including the proposed size and depth of all pipelines and a description of any appurtenances;(4) sketches or drawings that show:(A) the proposed premises;(B) the proposed Pipeline Facility to be constructed or installed;(C) the existing highway facilities, existing utilities, and other improvements;(D) all means of proposed access to the area; and(E) with preliminary drainage plans, if applicable;(5) adequate information to support a determination to authorize leasing of the proposed premises;(6) the proposed term of the lease; and(7) the name, address, and telephone number of the individual or entity that is authorized to furnish any additional information requested by the department relating to the application.(b) In addition to the information required under subsection (a) of this section, the district administrator may request additional information, reports, engineering plans or other data that the district administrator considers necessary for compliance with this subchapter. The applicant shall provide those requested items at its sole expense.(c) As a condition for the lease of the premises, department may require the saltwater pipeline operator to furnish an attorney's title opinion establishing to the department's satisfaction that the lease will be consistent with property rights owned by others.(d) The district administrator will forward the application to the right of way division for processing.(e) The district administrator will inform the applicant of the actions taken on the application.</content><note type="source"><p>Source Note: The provisions of this §21.964 adopted to be effective October 12, 2014, 39 TexReg 7946.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scR/s21.965"><num value="21.965">§21.965</num><heading>Lease Agreement</heading><content>(a) A lease under this subchapter must be in writing, be executed by the director, and contain the terms specified in this section.(b) The department may not execute a lease that would impair or relinquish the state's right to use the property when needed to construct or improve the highway facility for which it was acquired.(c) If the proposed saltwater pipeline facility operator does not obtain all required governmental approvals or permits throughout the term of lease, the department will terminate the lease.(d) The lease must contain:(1) information necessary for the department to contact the lessee;(2) the amount of rent, any required deposits, the term of the lease and the method of payment of rental amounts;(3) a detailed description of the premises, including engineering plans of the proposed as-built saltwater pipeline facility;(4) a description of the authorized use of the premises;(5) a statement that any significant revision in the design of the saltwater pipeline facility is subject to prior written approval by the district administrator;(6) a statement that the department has the right to approve all construction and plans for construction on the premises;(7) permission for the employees and authorized representatives of the department to enter the premises for the inspection, maintenance, or reconstruction of highway facilities or for determining compliance with the terms of the lease;(8) a requirement that lessee maintain, at its sole expense, the saltwater pipeline facility located within the premises in good condition, both as to safety and appearance, and a representation that the required maintenance of the saltwater pipeline facility will not interfere with the highway facilities or the highway use;(9) a statement that if the district administrator determines that the lessee has failed in its maintenance obligation, the department has the right to enter the premises to perform, at the expense and liability of the lessee, the work required for compliance;(10) a statement that on breach of the lease by lessee, lessee:(A) forfeits any deposits under the lease;(B) shall pay the department for all expenses incurred by the department due to lessee's failure to comply with the terms of the lease, including all of its litigation costs;(11) a requirement that the lessee provide a security bond not to exceed six months rental under the lease, as provided under Transportation Code, §202.053;(12) a requirement that lessee provide a removal bond in an amount equal to the anticipated future cost of removing any saltwater pipeline facilities and appurtenances, as well as the restoration and mitigation of the right of way to a suitable and safe, pre-lease condition, based on a removal, restoration, and mitigation plan approved by the department;(13) a requirement that the lessee provide, and maintain at all times during the term of the lease, at lessee's sole expense, adequate public liability insurance for the premises, the conduct of lessee's business, and lessee's indemnification obligations to the department set forth in the lease, naming the department as an additional insured and including other endorsements as determined to be necessary by the department, in an amount and form acceptable to the department for the payment of any damage occurring to the right of way, the highway facilities and appurtenances and for the payment to the public for personal injury, loss of life, or property damage that may occur;(14) a statement that the lease may be terminated as provided by §21.967 of this subchapter (relating to Termination of Lease);(15) a statement that neither the lease nor the premises shall be transferred, assigned, or conveyed to another party without prior written approval of the district administrator;(16) a statement that the lessee shall keep the lease and any improvements on the premises free of all liens and may not use the lease or such an improvement as security for any loan, except that the department may allow the lessee to mortgage or otherwise pledge or grant a security interest in the leasehold interest to secure financing for the acquisition of the leasehold or for the construction and operation of the saltwater pipeline facility permitted under the lease, subject to the terms of the lease;(17) a statement that the lessee is responsible for compliance with all federal, state, and local environmental laws and regulations, including obtaining any required permits or approvals by third parties or governmental entities;(18) a statement that the lessee assumes all risks of loss resulting from the lease and indemnifies the department for any claims and losses related to the lease;(19) a description of applicable nondiscrimination requirements;(20) a requirement that the lessee promptly restore the highway facilities and any associated facilities in the right of way to their former condition of usefulness after the installation or maintenance of the saltwater pipeline facility is complete; and(21) any other provisions that the department considers desirable.</content><note type="source"><p>Source Note: The provisions of this §21.965 adopted to be effective October 12, 2014, 39 TexReg 7946.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scR/s21.966"><num value="21.966">§21.966</num><heading>Disposition of Payments</heading><content>All payments received under this subchapter will be deposited into the state highway fund.</content><note type="source"><p>Source Note: The provisions of this §21.966 adopted to be effective October 12, 2014, 39 TexReg 7946.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scR/s21.967"><num value="21.967">§21.967</num><heading>Termination of Lease</heading><content>(a) The department will terminate a lease under this subchapter if the saltwater pipeline facility operator does not obtain all required governmental approvals or permits.(b) The department may terminate a lease under this subchapter if in the department's sole opinion:(1) the premises has been abandoned;(2) the saltwater pipeline operator has not complied with the terms of the lease; or(3) the premises is necessary for a conflicting highway purpose.(c) The lease may contain a provision for early termination of the agreement by either party with or without cause.(d) On termination of the lease for any reason, the saltwater pipeline operator shall remove the saltwater pipeline facility and restore the right of way to the condition in which it existed on the date the lease was fully executed, at no cost to the department.</content><note type="source"><p>Source Note: The provisions of this §21.967 adopted to be effective October 12, 2014, 39 TexReg 7946.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scR/s21.968"><num value="21.968">§21.968</num><heading>Federal Highway Administration Approvals</heading><content>All matters relating to the leasing of federal-aid highway right of way are subject to the approval of the Federal Highway Administration.</content><note type="source"><p>Source Note: The provisions of this §21.968 adopted to be effective October 12, 2014, 39 TexReg 7946.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scR/s21.969"><num value="21.969">§21.969</num><heading>Use of Right of Way under Lease</heading><content>A saltwater pipeline operator's use of right of way under a lease under this subchapter does not constitute an abandonment of the right of way by the department, nor create a property interest in the lessee.</content><note type="source"><p>Source Note: The provisions of this §21.969 adopted to be effective October 12, 2014, 39 TexReg 7946.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scR/s21.970"><num value="21.970">§21.970</num><heading>Clearances, Safety Requirements, and Standards</heading><content>(a) The saltwater pipeline operator shall use the right of way beneath or above the established gradeline of a highway in conformance with §21.36 and §21.40 of this chapter (relating to Rights of Utilities and Underground Utilities, respectively) and shall provide sufficient vertical and horizontal clearances for the construction, operation, maintenance, ventilation, and safety of highway facilities.(b) The saltwater pipeline operator may not install a saltwater pipeline facility in a location that will interfere with the visibility or reduce sight distance or in any other way interfere with the safety and free flow of traffic or level of service on highway facilities.(c) Any structural support for a saltwater pipeline facility to be constructed on the right of way shall be located to clear all horizontal and vertical dimensions specified by design standards of the department.(d) The saltwater pipeline operator may not use right of way in any way that results in any person, whether or not a highway user, being unduly exposed to hazardous materials or conditions.(e) The saltwater pipeline operator shall provide appropriate safety precautions and features necessary to minimize the possibility of injury to users of either highway facilities or the right of way. The department will not approve construction of saltwater pipeline facilities over or under highway facilities, unless the plans contain adequate provisions, acceptable to the department, for evacuation of the facilities in case of an accident that endangers those occupants.(f) A saltwater pipeline facility must be fire resistant and conform with existing applicable local codes, a nationally accepted model construction standard, or other standards required by the department.(g) The design, occupancy, and use of any saltwater pipeline facility may not result in the use, safety, appearance, and the enjoyment of the highway facilities being adversely affected by fumes, vapors, odors, drippings, droppings, or discharges of any kind from the saltwater pipeline facility.</content><note type="source"><p>Source Note: The provisions of this §21.970 adopted to be effective October 12, 2014, 39 TexReg 7946.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scR/s21.971"><num value="21.971">§21.971</num><heading>Marker or Tracking Device</heading><content>All markers or tracking devices to be located or maintained in the right of way by a lessee must have prior written approval by the district administrator and may contain only information that indicates ownership, contact information, or warning information.</content><note type="source"><p>Source Note: The provisions of this §21.971 adopted to be effective October 12, 2014, 39 TexReg 7946.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c21/scR/s21.972"><num value="21.972">§21.972</num><heading>Changes of and Access to Highway Facilities</heading><content>(a) Construction or installation of the saltwater pipeline facility may not require any temporary or permanent change in alignment or profile of existing highway facilities unless the lessee obtains the department's prior written approval of that change.(b) If the department, in its sole discretion, approves changes in existing highway facilities under subsection (a) of this section, the lessee shall provide the changes at the lessee's sole expense and without cost to the department.(c) A saltwater pipeline facility shall be designed and constructed in a manner that will permit access to highway facilities for purposes of inspection, maintenance, and reconstruction when necessary.</content><note type="source"><p>Source Note: The provisions of this §21.972 adopted to be effective October 12, 2014, 39 TexReg 7946.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p1/c22"><num value="22">CHAPTER 22</num><heading>USE OF STATE PROPERTY</heading><subchapter identifier="/us/state/tx/tac/t43/p1/c22/scB"><num value="B">SUBCHAPTER B</num><heading>USE OF STATE HIGHWAY RIGHT OF WAY</heading><section identifier="/us/state/tx/tac/t43/p1/c22/scB/s22.10"><num value="22.10">§22.10</num><heading>Purpose</heading><content>It is the policy of the department and the commission to facilitate the use of state highway right of way for certain public purposes which benefit the general public while being consistent with the safe and efficient operation of the state highway system. The sections under this subchapter prescribe the policies and procedures governing use of state highway right of way for other than department business.</content><note type="source"><p>Source Note: The provisions of this §22.10 adopted to be effective March 1, 1995, 20 TexReg 963; amended to be effective February 17, 2005, 30 TexReg 728.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c22/scB/s22.11"><num value="22.11">§22.11</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Area engineer--The chief administrative officer in charge of an area office of the department.(2) Area office--An office responsible for carrying out the department's primary functions at the local level for a designated geographical area within a district.(3) Arterial roadway--A roadway which contains predominately at-grade intersections, allows continuous access to abutting property, and has posted speeds equal to or less than 45 miles per hour.(4) Banner--A sign painted or fabricated on fabric mesh or flexible plastic above or along a roadway or highway.(5) BC Sheets--The latest edition of Barricade and Construction Standards published by the department.(6) Closure--The temporary direct or indirect restriction, in whole or in part, of vehicular use of a segment of the state highway system. This includes, but may not be limited to, the main lanes (including service roads, ramps, and connectors) and the shoulders of any numbered highway on the state highway system.(7) Commission--The Texas Transportation Commission.(8) Compliant Work Zone Traffic Control Device List--A list of all work zone traffic control devices that have been determined by the department to be crashworthy based on the criteria contained in National Cooperative Highway Research Report 350: Recommended Procedures for the Safety Performance Evaluation of Highway Features. A copy of this list is available on the department's website, or by contacting the department's Traffic Operations Division or the appropriate area engineer.(9) Controlled access highway--In accordance with applicable state law, the main lanes and shoulders of a state highway on which owners or occupants of abutting lands and other persons are denied access to or from the highway except at such points only and in such manner as may be determined by the department.(10) Department--The Texas Department of Transportation.(11) District--A subdivision of the department responsible for the day-to-day operations of the department in a specific geographically defined area.(12) District engineer--The chief administrative officer of a district of the department or his or her designee.(13) DPS--The Texas Department of Public Safety.(14) Edible agricultural commodity--Any product produced and sold for human consumption.(15) Executive director--The chief administrative officer of the department.(16) Film and video production--The on-location creation of a film or video project including, but not limited to, feature films, television productions, television commercials, documentaries, music videos, and corporate or industrial communication productions.(17) Non-profit corporation--A corporation that is incorporated or holds a certificate of authority under the Texas Non-Profit Corporation Act, Texas Civil Statutes, Articles 1396-1.01 et seq.(18) Peace officer--A law enforcement officer or peace officer of this state or a political subdivision of this state or a federal law enforcement officer or special agent performing duties in this state.(19) Person--An individual, corporation, organization, business trust, estate, trust, partnership, association, and any other legal entity.(20) Professional engineer--A person who has been duly licensed by the Texas Board of Professional Engineers to engage in the practice of engineering in the state of Texas.(21) Requestor--A person requesting a closure or use of the state highway system for a special event or film/video production.(22) Right of way--The entire width of land between the public boundaries or property lines of a highway.(23) Routine traffic control--The handling of events which last no more than four hours at one location and no more than nine consecutive total hours for moving events. Examples of these events include parades, marches, and other such events, and use authorized law enforcement personnel who accept the responsibility for traffic control as being well within their capabilities to protect and direct all parties involved.(24) Sign--Any outdoor sign, display, light, device, figure, painting, drawing, message, plaque, poster, or other thing that is designed, intended, or used to advertise or inform.(25) Special event--An event serving a public purpose and sponsored by a civic or nonprofit organization, including, but not limited to, fairs, festivals, bicycle events, marathons, walkathons, rodeos, and charitable fund-raising events, but not including political events or events that could be construed to advocate or oppose a candidate for election or influence the passage or defeat of a measure on an election ballot.(26) State highway system--The system of highways in the state included in a comprehensive plan prepared by the department's executive director under the direction and with the approval of the commission in accordance with Transportation Code, §201.103.(27) Substantial negative impacts to the environment--Any harm to the natural or cultural features caused by any activity either directly or indirectly resulting from a closure or film/video production, including, but not limited to:(A) a chemical or fuel spill;(B) blast or fire damage to habitat or vegetation;(C) temporary or permanent placement of fill in wetlands or waters in the right of way;(D) alteration of a historic bridge or historic roadside park;(E) extensive tire tracking or other damage to the contours of the site resulting in sediment runoff to water bodies or wetlands; or(F) any disturbance or removal of protected species without proper authorization.(28) Texas Film Commission--The office responsible for promoting the development of the film industry in the state, currently located in the Office of the Governor's Music, Film, Television, and Multimedia Office.(29) Traffic control--The exclusive use of law enforcement personnel and their vehicles to direct and control traffic, pedestrians, and other items making use of the right of way, requiring very little planning and few, if any, traffic control devices.(30) Traffic control plan--A written description consisting of text or a combination of text and diagrams that describes how vehicular or pedestrian traffic will be controlled during a closure or film/video production as described in this subchapter.(31) Traffic enforcement plan--A general description in writing or a sketch showing where and how the police vehicles will be used along with any supporting cones, signs, or barricades, if any. This does not require an engineer's expertise.(32) TMUTCD--Texas Manual on Uniform Traffic Control Devices.(33) Turnouts--Paved areas adjacent to the roadway shoulder large enough to accommodate at least one passenger vehicle.(34) Workday--A non-holiday for the department and a weekday, not a Saturday or Sunday.</content><note type="source"><p>Source Note: The provisions of this §22.11 adopted to be effective March 1, 1995, 20 TexReg 963; amended to be effective June 23, 1997, 22 TexReg 5682; amended to be effective February 17, 2005, 30 TexReg 728; amended to be effective February 18, 2010, 35 TexReg 1301.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c22/scB/s22.12"><num value="22.12">§22.12</num><heading>Closures</heading><content>(a) Policy. The department may authorize the closure of a segment of the state highway system for no more than seven consecutive days if such action serves a public purpose and is consistent with the safety and convenience of the traveling public. This section prescribes the policies and conditions by which an individual, private entity, or governmental entity may obtain such approval.(b) Request.(1) Who may submit.(A) Unincorporated area. Any individual, private entity, or governmental entity may submit a request for approval of a closure in an unincorporated area.(B) Incorporated area. Only a municipality may submit a request for approval of a closure in an incorporated area. Any individual, private entity, or other governmental entity desiring a closure must ask the municipality to submit a request to the district engineer.(2) Content of request. A request for approval of a closure must be submitted in writing to the district engineer of the district where the closure is to occur and must include the following information:(A) a physical description of the limits of the event, including county names and highway numbers, the number of lanes the highway has, and the number of lanes to be used, and a map showing the location of the event;(B) the proposed schedule of start and stop times, and dates at each location;(C) a brief description of the proposed activities involved, including the:(i) approximate number of people;(ii) number and type of animals; and(iii) number and types of equipment;(D) a traffic control plan which incorporates the requirements of this subchapter; and(E) an explanation of the public purpose to be served by the event.(3) When submitted. A request for a closure must be submitted at least 30 days prior to the date of the proposed event, unless an exception is approved by the district engineer and the notice is adequate for the requestor and the department to coordinate as required by this subchapter.(c) Requirements of the traffic control plan.(1) The traffic control plan shall be in accordance with the latest edition of the TMUTCD.(2) The traffic control plan shall clearly define in text or text with a supporting drawing the phases necessary for all traffic control devices and any other pertinent items that define how vehicles and pedestrians will be controlled during the individual phases of the operation.(3) The district engineer may require that other details be shown on the traffic control plan depending on the complexity of the closure.(4) The district engineer may require any traffic control plan of sufficient complexity to be signed, sealed, and dated by a registered professional engineer.(5) The district engineer may waive the requirement for the submission of a traffic control plan if:(A) the proposed closure requires only traffic control utilizing law enforcement personnel and law enforcement vehicles; and(B) in the opinion of the district engineer, public safety is not in question due to low approach speeds and good sight distances or other specific conditions.(d) Approval. The district engineer will approve a closure if he or she determines that:(1) the event requiring the closure serves a public purpose;(2) the requestor has designed a satisfactory traffic control plan, if required, to protect both motorists and all participants and spectators, and the plan will not substantially inconvenience the traveling public;(3) the event itself will not impair the safety of the traveling public;(4) the convenience of abutting property owners and residents is adequately protected, and adequate access for such persons to their property is assured;(5) the closure does not conflict with scheduled maintenance or construction activities;(6) the event will not cause substantial negative impacts to the environment, including landscape or historic features;(7) there will be appropriate passage allowance for emergency vehicle travel; and(8) the requestor or organization that is involved has not failed to follow a traffic control plan within the last three years.(e) Written agreement. If the district engineer approves the proposed closure, the requestor, which will be considered the local government if the closure is in an incorporated area, must enter into a written agreement with the department, in a form prescribed by the department, prior to the closure. The agreement will contain terms and conditions the department deems necessary to protect the public safety including, but not limited to:(1) the physical description of the limits of the event, including county names and highway numbers;(2) the proposed schedule of start and stop times, and dates at each location;(3) a description of the proposed activities involved, including the:(A) approximate number of people;(B) number and type of animals;(C) number and types of equipment; and(D) description of any planned physical modification of any man-made or natural features in or adjacent to the right of way;(4) the traffic control plan (if required);(5) a statement that this event serves a public purpose;(6) a statement that the requestor shall assume all costs associated with the event;(7) a traffic enforcement plan, including a letter from the law enforcement agency that will be providing the traffic control for the event;(8) assurance that there will be appropriate passage allowance for emergency vehicle travel;(9) a statement that the requestor will avoid or minimize impacts, and will, at its own expense, restore or repair damage occurring outside the right of way and restore or repair the right of way, including, but not limited to, roadway and drainage structures, signs, overhead signs, pavement markings, traffic signals, power poles, pavement, etc., to a condition equal to that existing before the closure, and restore the natural and cultural environment in accordance with federal and state law, including landscape features;(10) a statement that:(A) the requestor shall indemnify and save harmless the state, its officers, employees, agents, and contractors from claims and liabilities due to the activities of the requestor; or(B) the local government acknowledges its responsibilities for the acts and omissions of its officers, employees, agents, and contractors, to the extent permitted by applicable law, if the requestor is a local government that is unable to provide indemnification;(11) evidence that the requestor has obtained adequate insurance naming the department as a coinsured by the requestor or responsible party in an amount and form acceptable to the department for the payment of any damages which may occur during the time period of encroachment and to save the state harmless;(12) a statement that the requestor must abide by all applicable federal, state, and local environmental laws, regulations, ordinances, and any conditions or restrictions required by the department to protect the natural environment and cultural resources on the right of way;(13) a statement that any temporary traffic control devices used on state highway right of way under the terms of the agreement must be devices included in the department's Compliant Work Zone Traffic Control Device List;(14) a statement that the department reserves the right to inspect the implementation of the traffic control plan and if the traffic control is found to be inadequate, the responsible party will bring the traffic control into compliance with the originally submitted plan, upon written notice from the department noting the required changes, prior to the event;(15) a statement that the department may request changes to the traffic control plan in order to ensure public safety due to changing or unforeseen circumstances regarding the closure;(16) a statement that the appropriate law enforcement agency:(A) has reviewed traffic control for the event and that the agency believes them to be adequate; or(B) is unsure as to the adequacy of traffic control and that it will contact the appropriate district for consultation no less than 10 workdays prior to the event;(17) a statement that the requestor will complete all revisions to the traffic control plan as requested by the district engineer within the required timeframe or that the agreement will be terminated upon written notice from the district engineer to the requestor; and(18) a statement that any failure to cooperate with the department may constitute reckless endangerment of the public and that the DPS may be notified of the situation as soon as possible for appropriate action, and not following the traffic control plan or department instructions may result in a denial of future use of the right of way for three years.(f) Multi-year agreements.(1) The department may enter into a multi-year agreement with a requestor for events that occur annually and do not substantially change from year to year.(2) The maximum duration for such an agreement is five years.(3) An amendment to the agreement may be signed by the district engineer and the requestor if unexpected changes to the event occur.(4) The requestor must submit proof of insurance annually to the department at least 14 workdays prior to the proposed event.(5) The department may terminate a multi-year agreement at any time during the duration of the agreement if the district engineer believes termination to be in the best interest of the traveling public.(g) Exceptions.(1) General. Closures necessary for emergency traffic control and maintenance activities pursuant to a municipal maintenance agreement do not require prior department approval.(2) Film and video productions. Requests for approval of film and video productions must be submitted in accordance with §22.13 of this subchapter (relating to Film and Video Productions).(3) Bicycle races. A competitive bicycle race that does not involve the complete restriction of vehicular traffic in one or both directions such that a detour is required is not subject to approval by the department, if the sponsoring organization has obtained the approval of the appropriate local law enforcement agency or agencies in accordance with Transportation Code, §551.105.(4) Routine traffic control. A closure involving routine traffic control may not require department approval, provided that the closure is in an incorporated area and does not take place on a controlled access highway but does take place on an arterial roadway. The district engineer shall be notified by law enforcement by facsimile seven workdays before the routine traffic control event occurs or 10 workdays before the event if notified by letter. This notification must have sufficient detail to allow the general evaluation of the event with regard to the safety and operation of the highway. If the department requires additional traffic control measures, the law enforcement agency will be notified by phone as well as by facsimile or letter of the extra requirements, and if a formal written agreement will be required.(h) Disapproval. If a district engineer disapproves a request for approval of a closure, he or she will provide written notice describing the basis for the determination.(i) Appeal. A requestor may appeal a district engineer's disapproval to the department's assistant executive director for engineering operations by submitting to that official by mail or facsimile the information provided to the district engineer.</content><note type="source"><p>Source Note: The provisions of this §22.12 adopted to be effective March 1, 1995, 20 TexReg 963; amended to be effective February 17, 2005, 30 TexReg 728.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c22/scB/s22.13"><num value="22.13">§22.13</num><heading>Film and Video Productions</heading><content>(a) Policy. In accordance with Government Code, Chapter 485, it is the policy of the department to cooperate with the Office of the Governor's Music, Film, Television, and Multimedia Office to the greatest extent possible to fully implement the state's goal of promoting the development of the music, film, television, and multimedia industries in Texas. This section is intended to encourage and facilitate access to department highway facilities and their adjacent right of way for the promotion of that goal while preserving the safety and convenience of the traveling public and the integrity of state highway facilities and right of way.(b) Activities included. A person or entity desiring to produce a film, video, or other production on a segment of the state highway system must first obtain the approval of the department for any activity within state highway right of way that:(1) requires a closure of a segment of the state highway system;(2) will otherwise disrupt the normal flow of traffic;(3) could damage state highway right of way or other facilities of the department; or(4) in any way affects the safety and convenience of the traveling public.(c) Request.(1) A person or entity desiring approval for an activity subject to this section must first notify the Texas Film Commission. That office will provide general information, including instructions on how to submit a request for approval to the department.(2) After contacting the Texas Film Commission, a request for a film or video production must be submitted at least 30 days prior to the date of the proposed production unless an exception is approved by the district engineer and the notice is adequate for the requestor and the department to coordinate as required by this subchapter. The request shall include the following information:(A) the location of the production, including county name, highway number, and description of the physical location;(B) the proposed schedule of start and stop times, and dates at each location (commonly known as preparation and wrap);(C) a brief description of the proposed activities, including the proposed placement of production company personnel and equipment on state highway right of way; and(D) a permit or appropriate documentation as may be required by applicable local ordinance of a municipality if the production is within the limits of an incorporated area.(3) The district engineer may request additional information necessary to make his or her determination under subsection (d) of this section.(d) Approval. The district engineer will approve the request if he or she determines that:(1) the proposed production is consistent with the safety and convenience of the traveling public;(2) the proposed production will not cause substantial negative impacts to the environment as defined in this subchapter, including landscape features;(3) the proposed production does not conflict with scheduled maintenance or construction activities;(4) the convenience of abutting property owners and residents is adequately protected, and adequate access for such persons to their property is assured;(5) if a closure is proposed:(A) the requestor has designed to the department's satisfaction a traffic control plan to protect both motorists and all participants and spectators, and that will not substantially inconvenience the traveling public; and(B) there will be appropriate passage allowance for emergency vehicle travel;(6) the department has been given sufficient time to adequately review the proposal; and(7) the requestor or organization involved has not failed to follow a traffic control plan within the last three years.(e) Requirements of the traffic control plan.(1) The traffic control plan shall be in accordance with the latest edition of the TMUTCD.(2) The traffic control plan shall clearly define in text or text with a supporting drawing the phases necessary for all traffic control devices and any other pertinent items that define how vehicles and pedestrians will be controlled during the individual phases of the operation.(3) The district engineer may require other details to be shown on the traffic control plan depending on the complexity of the closure.(4) The district engineer may require any traffic control plan of sufficient complexity to be signed, sealed, and dated by a registered professional engineer.(5) The district engineer may waive the requirement for the submission of a traffic control plan if:(A) the proposed closure requires only traffic control utilizing law enforcement personnel and law enforcement vehicles; and(B) in the opinion of the district engineer, public safety is not in question due to the specific conditions involved with the closure.(f) Agreement. If the district engineer approves the proposed production, the requestor must execute a written agreement with the department prior to the production. The agreement will contain terms and conditions the department deems necessary to protect public safety and the integrity of the facility and adjacent right of way including, but not limited to:(1) the location of the production, including county name, highway number, and description of the physical location;(2) the schedule of start and stop times, and dates at each location;(3) a description of the activities, including the placement of people and equipment that the requestor will place on state highway right of way;(4) the traffic control plan, if applicable;(5) a statement that the requestor assumes all costs associated with the production;(6) a statement that the requestor will avoid or minimize impacts, and will, at its own expense, restore or repair damage occurring outside the right of way and restore or repair the right of way, including, but not limited to, roadway and drainage structures, overhead signs, signs, traffic signals, pavement markings, pavement, etc., to a condition equal to that existing before the production, and restore the natural and cultural environment in accordance with federal and state law, including landscape features;(7) a statement that the requestor shall indemnify and save harmless the state, its officers, employees, agents, and contractors from claims and liabilities due to the activities of the requestor;(8) suitable documentation that the requestor has obtained adequate insurance naming the department as a coinsured by the requestor or responsible party in an amount and form acceptable to the department for the payment of any damages which may occur during the time period of encroachment and to save the state harmless;(9) a statement that the requestor will abide by all state and federal environmental laws and any conditions required by the department to protect the environment;(10) if the production requires a closure:(A) a traffic enforcement plan, including a letter, by mail or facsimile, from the law enforcement agency that will be providing the traffic control for the event, or a contact name and telephone number for the responsible law enforcement agency; and(B) assurance that there will be appropriate passage allowance for emergency vehicle travel;(11) a statement that any temporary traffic control devices used on state highway right of way under the terms of the agreement must be devices included in the department's Compliant Work Zone Traffic Control Device List;(12) a statement that the department reserves the right to inspect the implementation of the traffic control plan and if the traffic control is found to be inadequate, the responsible party will bring the traffic control into compliance with the originally submitted plan, upon written notice from the department noting the required changes, prior to the event;(13) a statement that the department may request changes to the traffic control plan in order to ensure public safety due to changing or unforeseen circumstances regarding the closure;(14) a statement that the appropriate law enforcement agency:(A) has reviewed traffic control for the closure and that the agency believes them to be adequate; or(B) is unsure as to the adequacy of traffic control and that it will contact the appropriate district for consultation no less than 10 workdays prior to the closure;(15) a statement that the requestor will complete all revisions to the traffic control plan as requested by the district engineer within the required timeframe or that the agreement will be terminated upon written notice from the district engineer to the requestor;(16) a statement that any failure to cooperate with the department may constitute reckless endangerment of the public and that the DPS may be notified of the situation as soon as possible for the appropriate action, and failing to follow the traffic control plan or department instructions may result in a denial of future use of the right of way for three years; and(17) such other terms and conditions determined by the district engineer to be essential for the preservation of public safety and convenience of the traveling public as well as the integrity of state highway facilities and right of way.(g) Disapproval. If a district engineer disapproves a request for approval of a production, he or she will provide written notice, by mail or facsimile, describing the basis for the determination. The district engineer will also provide notice of disapproval by telephone if requested by the requestor.(h) Appeal. A requestor may appeal a district engineer's disapproval to the department's assistant executive director for engineering operations, by submitting to that official by mail or facsimile the information provided to the district engineer.(i) Signs.(1) All traffic control devices used in conjunction with a film or video production under this subchapter, including sign supports, shall be devices listed in the department's Compliant Work Zone Traffic Control Device List. This requirement does not apply to temporary signs as allowed in this section.(2) A production company may place two temporary signs, one for each direction of travel, at the point of departure from the state highway system, for the purpose of guiding production personnel to the site of an approved production, provided that each sign:(A) does not contain red on the front or back of the sign, and does not appear to represent any official regulatory, warning, or guide sign;(B) is no larger than 36 inches by 36 inches;(C) is made of heavy cardboard or 1/4 inch thick plastic, or other material as approved by the district engineer;(D) is mounted on a Type I folding barricade or short-term, short-duration sign support as shown on the department's Compliant Work Zone Traffic Control Device List or wood supports no greater than two inches by two inches in thickness, and has no more than two supports;(E) has a mounting height to the bottom of the sign of no less than one foot and no more than three feet above surrounding ground level;(F) is not located on the mainlanes of a controlled access highway (it may be located on the frontage road of a controlled access highway); and(G) is not mounted on a traffic control device and is placed so as to not interfere with other traffic control devices.(3) A sign may not be installed more than one day before filming starts and must be removed within one day after the filming is completed.(4) If a sign becomes a hazard due to inclement weather, inadequate maintenance, accidental damage, or other cause, the department may remove the sign or ask the requestor to do so.(5) A sign not removed in compliance with paragraphs (3) or (4) of this subsection is subject to removal by the department and the requestor is liable for removal and disposal costs as provided by §29.6 of this title (relating to Signs on State Highway Right of Way).</content><note type="source"><p>Source Note: The provisions of this §22.13 adopted to be effective March 1, 1995, 20 TexReg 963; amended to be effective February 17, 2005, 30 TexReg 728.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c22/scB/s22.14"><num value="22.14">§22.14</num><heading>Vendors</heading><content>(a) Purpose. Encroachment on highways and right-of-ways of the state highway system by unauthorized structures and vehicles and by roadside vendors causes damage to the system, increases litter, and frequently creates unsafe or hazardous conditions. This section prescribes the policies and procedures governing use of state highway right-of-way by vendors.(b) Policy.(1) A person may not park or place any vehicle or structure, wholly or partly within the right-of-way of a state highway, for the purpose of selling the same or of selling any article, service, or thing from such vehicle or structure, except as provided in paragraph (2) of this subsection.(2) The prohibition described in paragraph (1) of this subsection does not apply to:(A) placing, constructing, or maintaining a structure pursuant to other statutory authority;(B) an activity undertaken pursuant to the terms of a right-of-way lease entered under the provisions of Texas Civil Statutes, Article 6673a-3;(C) the sale of an edible agricultural commodity for a period not to exceed 60 days, within the right-of-way of a state highway other than a controlled access facility, if that commodity was grown or produced upon the property immediately abutting the affected right-of-way; or(D) any other activity expressly authorized by law.(c) Application. A person who desires to engage in an activity, as identified in subsection (b)(2)(C) of this section, must file an application to obtain authorization to sell goods on the right-of-way at the department's district office not fewer than seven calendar days prior to the requested date of placement. The application shall be in a form prescribed by the department and shall at a minimum require:(1) the name, address, and telephone number of the person responsible for the request;(2) a tax statement or other proof of ownership, leasehold, or written permission from the owner of the property;(3) the proposed location of the vehicle or structure (distance from the roadway);(4) the size of the encroachment (height, width, and length);(5) the proposed time period of the encroachment;(6) the commodities being sold; and(7) a section reserved to the department which sets forth such other terms and conditions that the department may require.(d) Use of rights-of-way restrictions.(1) Location. The location approved under subsection (e) of this section shall be as far from the edge of the pavement as possible, and may not be in a place:(A) where the encroachment may cause sight restriction or a safety problem;(B) inside the clear zone as defined in the latest edition of the Department's Design Division Operations and Procedure Manual;(C) which will conflict with scheduled maintenance or construction actions;(D) which will cause substantial negative impacts to the environment, including landscape features; or(E) where customers could park their vehicles in such a way as to create a safety hazard.(2) Signs. A person authorized to utilize the right-of-way under this section may not place a sign on the right-of-way, vehicle, or the structure.(e) Approval. The district engineer or his or her designee will review the application and approve the location, subject to any additional terms and conditions deemed necessary to protect the safety of the traveling public, if the use of right-of-way is in compliance with this section.(f) Agreement. If the application is approved, the requestor must enter into a written agreement with the department. The agreement will contain terms and conditions the department deems necessary to protect the public safety including, but not limited to:(1) the physical description of the encroachment;(2) the approved location of the encroachment;(3) the approved time period of the encroachment;(4) the commodities being sold;(5) a statement that the requestor will avoid or minimize impacts, and will, at its own expense, restore or repair damage occurring outside the right-of-way and restore or repair the right-of-way, including roadway and drainage structures, signs, pavement, etc., to a condition equal to that existing before the encroachment, and, to the extent practicable, restore the natural environment, including landscape features;(6) a statement that the requestor is responsible for any damages or accidents which may occur during the time period of encroachment and to save the state harmless;(7) a statement that the requestor will abide by all applicable federal, state, and local environmental laws, regulations, ordinances, and any conditions or restrictions required by the department to protect the natural and cultural resources of the right-of-way; and(8) a statement that if hazardous traffic conditions develop due to the presence of the encroachment, the requestor shall correct the measure as the department requires.(g) Disapproval. If the request is not approved, the department will provide written notice describing the basis for the determination.(h) Review. Any decision made by a designee of the district engineer may be reviewed and overruled by the district engineer.</content><note type="source"><p>Source Note: The provisions of this §22.14 adopted to be effective March 1, 1995, 20 TexReg 963.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c22/scB/s22.15"><num value="22.15">§22.15</num><heading>Authorized Temporary Signs</heading><content>(a) Temporary signs. The department may authorize a person or entity to temporarily erect, place, and maintain a sign on state highway right-of-way, provided that the sign:(1) informs the public of a special event which is open to the public; or(2) serves to identify a commercial entrance or driveway along a state highway which is under construction if the department determines construction activities have temporarily restricted the access or visibility of the adjacent commercial area, thus impairing the safety and convenience of the travelling public.(b) Application.(1) Commercial signs. A contractor, working on a highway improvement contract pursuant to Texas Civil Statutes, Transportation Code, Chapter 223, is authorized to erect a sign to indicate a commercial entrance or driveway as provided in the plans and specifications developed in conjunction with the project.(2) Special events. To obtain authorization for the placement of a special event sign on state highway right-of-way, a person or entity must file an application at the department's local area office not fewer than 14 calendar days prior to the requested date of placement. The application shall be in a form prescribed by the department and shall at a minimum include:(A) the name, address, and telephone number of the person responsible for the request;(B) the proposed location of the sign (distance from the pavement, mounting height);(C) the proposed text, background color, and legend color for the sign;(D) the size of the sign (height, width, thickness, and sign material);(E) the proposed method of support of the sign (dimension and material);(F) the nature, location, date of the event, and sponsor of the special event, if applicable; and(G) any additional information requested by the area engineer as necessary to make his or her determination under subsection (c) of this section.(c) Approval. The area engineer will approve the placement and support of a special event sign found to be in compliance with this section, subject to any additional terms and conditions deemed necessary to protect the safety of the traveling public by signing and dating the application, and stamping or otherwise inscribing the word "approved" on the requestor's application. If the area engineer does not approve the request, he or she will send written notice describing the basis for the determination.(d) Sign restrictions.(1) Sign size.(A) A sign approved for placement by a contractor on a segment of the state highway system must conform with the Texas MUTCD and the BC sheets in effect at the time of installation.(B) A sign approved for placement under subsection (c) of this section may not:(i) exceed 16 square feet if placed on the roadside to inform the travelling public;(ii) exceed four square feet if used to guide participants in a bicycle or pedestrian event;(iii) extend more than three feet beyond the pavement edge; or(iv) imitate or resemble any official traffic sign, signal, or device.(2) Sign material. A sign approved for placement under subsection (c) of this section shall be constructed of heavy cardboard, plastic, fabric mesh, or plywood no thicker than 1/4 inches.(3) Sign location. A sign approved for placement under subsection (c) of this section shall be placed as far from the edge of the pavement as possible (except for those signs used to guide participants in a bicycle or pedestrian event which shall be placed no less than one foot from the edge of the pavement), and may not be placed:(A) in a location where it may prevent the driver of a vehicle from having a clear and unobstructed view of official signs and approaching or merging traffic;(B) on any highway appurtenances, including, but not limited to, traffic control devices, official signs, sign supports, light standards, poles, and delineators;(C) on any tree or other natural feature;(D) less than 18-1/2 feet above the pavement if the sign is a banner placed over the pavement; or(E) closer to the pavement edge than official highway signs, except for those signs used to guide participants in a bicycle or pedestrian event which shall be placed no less than one foot from the edge of the pavement.(4) Text of sign.(A) A sign approved for placement for a special event under subsection (c) of this section shall not contain commercial advertising but may identify the event's sponsor by name and the sponsor's trademark. The name of the event's sponsor and sponsor's trademark shall be displayed less conspicuously than the activity.(B) A sign approved for placement to aid visibility and access for a commercial business entrance or driveway may contain:(i) directional text such as "DRIVEWAY" with an accompanying arrow;(ii) the type of service such as "GAS," "LODGING," "FOOD," "MALL;"(iii) the type of business such as "CLEANERS," "FOOD STORE," and "RESTAURANT."(5) Lighting. A sign approved for placement under subsection (c) of this section may not display lighting.(6) Banner supports. A banner approved for placement above a roadway under subsection (c) of this section shall be placed on supports which comply with the safety standards of the Texas MUTCD and the BC Sheets, and must be approved by department personnel prior to installation.(7) Placement of sign. A special event sign location will be allocated on a first-come, first-serve basis. A sign approved for placement under subsection (c) of this section for a special event may not be placed more than 24 hours prior to the event; provided, however, a banner may be installed no more than 30 days prior to the event.(e) Exception. The executive director or his or her designee may waive one or more of the requirements of this section not inconsistent with applicable statutory law provided that he or she, by written order, specifies the public benefits to result from the placement.(f) Sign maintenance. A sign approved for placement under subsection (c) of this section shall be maintained by the owner in compliance with all requirements of this section. The authorization for any sign not maintained in accordance with all requirements is deemed void, and the sign may be removed by the department in accordance with subsection (g) of this section.(g) Removal.(1) A sign authorized for placement under this section shall be removed by the applicant within 24 hours of the completion of the event; except banners shall be removed within seven days of the completion of the event.(2) If a sign becomes a hazard due to inclement weather, inadequate maintenance, accidental damage, or other cause, the department will remove the sign.(3) A special event sign not removed in compliance with paragraph (1) of this subsection is subject to removal by the department and the applicant is liable for removal and disposal costs as provided by §25.10 of this title (relating to Signs on State Highway Right-of-Way).</content><note type="source"><p>Source Note: The provisions of this §22.15 adopted to be effective March 1, 1995, 20 TexReg 963; amended to be effective December 12, 1999, 24 TexReg 10916.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c22/scB/s22.16"><num value="22.16">§22.16</num><heading>Authorized Permanent Signs</heading><content>(a) Purpose. Transportation Code, §392.0325, authorizes a person to submit to the department a request to maintain certain signs that encroach on state highway right-of-way. This section prescribes the policies and procedures by which a person may obtain approval.(b) Definitions. The following words and terms, when used in this section shall have the following meanings, unless the context clearly indicates otherwise.(1) Sign - An awning or sign that will:(A) encroach on state highway right-of-way;(B) be attached to a building located on property other than state highway right-of-way;(C) refer to a commercial activity or business located in the building; and(D) either:(i) consist solely of the name of the establishment;(ii) identify the establishment's principal product or services; or(iii) advertises the sale or lease of the property on which the sign is located.(2) Director - The chief administrative officer in charge of the Maintenance Division of the department.(c) Request.(1) A request for approval under this section must be submitted to the appropriate department district office. The request shall be on a form prescribed by the department and shall at a minimum include:(A) the name, address, and telephone number of the person submitting the request;(B) the proposed location of the sign (including distance from the pavement and mounting height);(C) the proposed text, background color, and legend color for the sign;(D) the size and composition of the sign (including height, width, thickness, and sign material);(E) the proposed method of support of the sign (dimension and material);(F) detailed plans for the installation and maintenance of the sign;(G) a traffic control plan that incorporates the requirements contained in the Texas Manual on Uniform Traffic Control Devices, if it will be necessary to use state highway right-of-way to install or maintain the sign; and(H) if applicable, a brief statement about the historic significance of the sign and of the building to which the sign is attached.(2) The district may require additional information determined necessary for the department to properly evaluate the request.(3) All costs necessary to collect information required under this subsection are the sole responsibility of the requestor.(d) Approval.(1) Subject to the provisions of paragraph (2) of this subsection, the director will approve a request submitted under subsection (c) of this section if the director:(A) determines that the sign will not constitute a safety hazard;(B) determines that the sign will not interfere with the construction, reconstruction, operation, or maintenance of the highway facility; and(C) obtains the approval of the Federal Highway Administration, if approval is required under federal law.(2) The director will not approve a request if the sign:(A) is attached in any manner to a structure on the right-of-way;(B) encroaches into the clear zone as defined by the Texas Manual on Uniform Traffic Control Devices;(C) encroaches on right-of-way that is scheduled for future construction or rehabilitation in the department's Unified Transportation Program;(D) has utilities located above or below the proposed sign;(E) will distract drivers from direction or other official signs authorized by law; or(F) will unduly distract the traveling public.(3) The director will take into account the historic significance of the building and the sign that is attached to and is a contributing feature of the building.(e) Agreement. If the director approves a request under subsection (d) of this section, the requestor must enter into an agreement with the department. If the requestor is not the owner of the building to which the sign will be attached, the building owner must also be a party to the agreement. The agreement will include:(1) any additional terms and conditions deemed necessary by the director to protect the safety of the traveling public;(2) a statement that the requestor and owner shall indemnify and save harmless the state, its officers, employees, agents, and contractors from claims arising from or connected with the requestor's use of the right-of-way under the agreement; and(3) a statement that the requestor and owner shall be responsible for the removal or relocation of the sign, if the sign must be relocated or removed due to improvements to the highway facility.(f) Violation. If a person maintains a sign in violation of the agreement or a provision of this section, the department will consider the sign to be an illegal encroachment subject to enforcement and removal under Transportation Code, Chapter 392, Subchapter B.(g) Disapproval. If the director denies a request, the director will provide written notice describing the basis for the determination.(h) Appeal. A person denied approval under this section may file an appeal with the executive director or the director's designee not below the level of assistant executive director. The decision of the executive director or the director's designee is final.</content><note type="source"><p>Source Note: The provisions of this §22.16 adopted to be effective December 12, 1999, 24 TexReg 10916; amended to be effective July 23, 2000, 25 TexReg 6813.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c22/scB/s22.17"><num value="22.17">§22.17</num><heading>Memorial Markers</heading><content>(a) Purpose. This section prescribes the process by which the department will allow the placement, along state highway right-of-way, of privately funded memorials honoring peace officers killed in the line of duty.(b) Agreement. The department may execute an agreement with a non-profit corporation to fund, install, and maintain memorials honoring peace officers. A corporation must enter into an agreement with the department in a form prescribed by the department prior to any request for approval to install a memorial. Once a corporation has entered into an agreement, it may request to install a memorial in a specific location on the state highway right-of-way. Corporations desiring to install memorials must submit notice of such interest to the director of the department's Maintenance Division, along with a copy of the corporation's certificate of incorporation. The agreement will contain terms and conditions the department deems necessary to protect the privacy of the deceased peace officer and to protect the public safety, including, but not limited to:(1) a statement that only memorials which honor peace officers who lost their lives in the line of duty will be allowed;(2) a statement that the corporation must submit a separate request for each memorial it desires to install on state highway right-of-way;(3) a statement that the memorials will be furnished, installed, and maintained at no cost to the department, and that the corporation will correct any superficial or structural damage done to markers within 30 days of notification for superficial damage, and within 90 days of notification for structural damage;(4) a statement that the exact location of each memorial must be approved by the department;(5) a statement that the department may temporarily or permanently relocate the memorials to accommodate highway construction, reconstruction, maintenance or operations;(6) a statement that the exact wording on the memorials must be approved by the department, and that the name of the company supplying the markers must not appear on the marker;(7) a statement that the corporation must furnish and install any initial roadside signing of the memorials which meets all department requirements;(8) a statement that the department will furnish replacement signs if the need arises;(9) a statement that the department may provide and maintain turnouts, where necessary, so that motorists may view the memorials;(10) a statement that the corporation will not use the name of the department or refer to the department in any activity which is designed to collect funds or any activity which may lead to the collection of funds; and(11) a statement that, by approving the placement of a memorial, the department is not obligated to increase maintenance around the site to a level higher than it would be if the memorial were not installed on the right-of-way.(c) Requests for specific installations.(1) A non-profit corporation with which the department has entered into an agreement, desiring to install a memorial on state highway right-of-way, must file a request for department approval with the district in which the right-of-way is located.(2) A request to install a memorial must be submitted in writing to the appropriate district engineer and must, at a minimum, include:(A) the memorial's size and materials;(B) the wording on the memorial;(C) the proposed location where the memorial will be installed, including county, highway, location (distance from a roadway intersection, waterway intersection, county line, etc.), and distance from the right-of-way line;(D) written concurrence from the family of the deceased peace officer ;(E) whether or not the requestor will provide any roadside signage, such as signage indicating the distance remaining until a motorist reaches a memorial marker; and(F) written certification from the governmental entity that employed the peace officer that the peace officer in question was killed in the line of duty.(d) Department action. The district engineer or his or her designee will review the request and approve the installation of the memorial, and its location, if the request is in compliance with this section, subject to any additional terms and conditions deemed necessary to protect the safety of the traveling public. The district engineer or designee will send written notice of his or her determination. If the district engineer or designee does not approve the request, he or she will send written notice describing the modifications needed. These notifications will include, as appropriate:(1) the department's approval or a requirement that a revision be made in the request;(2) the approved location on the right-of-way to install the memorial;(3) whether or not the department wishes to have a representative present when the memorial is installed;(4) specific times of day when the installation may occur;(5) the name and telephone number of a department contact; and(6) any other information the department deems appropriate.(e) Appeal. The requestor may appeal a district engineer's disapproval to the executive director or his or her designee, by submitting to that official by mail or facsimile a notice of appeal, along with the information provided to the district engineer.(f) Specifications.(1) All material used in the construction and installation of the memorial must be approved by the department.(2) The dimensions of a memorial must not exceed four and one-half feet in height, two feet in width, and six inches in depth.(g) Location. A memorial approved for installation under this section shall be placed as close to the right of way line as possible unless otherwise approved by the district engineer, and may not be placed:(1) in a location where it may prevent the driver of a vehicle from having a clear and unobstructed view of official signs and approaching and merging traffic; or(2) where it will cause substantial negative impact to landscape features or maintenance operations.(h) Installation.(1) Once the corporation has received the department's approval to install a memorial, the corporation will have 90 days from the date of the approval to install the memorial.(2) If the department determines the memorial has not been installed according to this section, an agreement, or the department's approval, the department may require the corporation to relocate or remove the memorial. If so requested, the corporation will relocate or remove the memorial within 30 days. If the memorial has not been relocated or removed after 30 days has passed, the department may remove or relocate the memorial. If the department determines the memorial poses a potential hazard, the department may immediately relocate or remove the memorial without having first notified the corporation.(i) Termination of agreement. The agreement may be canceled by either party for any reason upon 30 days written notice to the other party. Termination of the agreement will also cancel any department approval to install a memorial not yet installed.</content><note type="source"><p>Source Note: The provisions of this §22.17 adopted to be effective December 12, 1999, 24 TexReg 10918; amended to be effective February 18, 2010, 35 TexReg 1301.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c22/scC"><num value="C">SUBCHAPTER C</num><heading>USE OF STATE INTELLECTUAL PROPERTY</heading><section identifier="/us/state/tx/tac/t43/p1/c22/scC/s22.20"><num value="22.20">§22.20</num><heading>Purpose</heading><content>Transportation Code, §201.205 and Government Code, §2054.115 authorize the department to apply for, register, secure, hold, license, and protect copyrights, trademarks, patents, or other evidence of protection or exclusivity. The department may receive license fees, royalties, or other consideration, both monetary and nonmonetary, for the use of its intellectual property. This subchapter prescribes the policies and procedures governing the protection of department intellectual property, and the use of department intellectual property by third parties.</content><note type="source"><p>Source Note: The provisions of this §22.20 adopted to be effective November 20, 1997, 22 TexReg 11093; amended to be effective February 20, 2002, 27 TexReg 1185.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c22/scC/s22.21"><num value="22.21">§22.21</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Department--The Texas Department of Transportation.(2) District engineer--The chief administrative officer of a district of the department.(3) Division director--The chief administrative officer of a division of the department.(4) Executive director--The chief administrative officer of the department.(5) Intellectual property--Ideas, publications, and other original innovations fixed in a tangible medium, including, but not limited to:(A) literary works;(B) logos;(C) service marks;(D) studies;(E) maps and planning documents;(F) engineering, architectural, and graphic designs;(G) manuals;(H) automated systems software;(I) audiovisual works;(J) sound recordings;(K) travel literature, including but not limited to pamphlets, bulletins, books, maps, periodicals, and electronic information published or produced under Texas Civil Statutes, Article 6144e; and(L) mechanical devices.(6) Office director--The chief administrative officer of an office of the department.(7) Unregistered--Intellectual property that is not registered with the U.S. Copyright Office or U.S. Patent and Trademark Office.</content><note type="source"><p>Source Note: The provisions of this §22.21 adopted to be effective November 20, 1997, 22 TexReg 11093; amended to be effective February 20, 2002, 27 TexReg 1185.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c22/scC/s22.22"><num value="22.22">§22.22</num><heading>Licensure</heading><content>(a) Policy. The department may authorize the licensure of department owned intellectual property. This section prescribes the procedure for obtaining a license.(b) Request. A person must submit a written request for a license to the district engineer, division director, or office director with jurisdiction over the intellectual property. A request must include, but is not limited to:(1) the name of the requestor and if an organization, the name of the organization;(2) the name or description of the intellectual property requested to be licensed;(3) the purpose for which the intellectual property will be used;(4) the plan of distribution and marketing, if applicable;(5) the term of the license, if applicable; and(6) a request for waiver of fees, if applicable.(c) Approval. The district engineer, division director, or office director with jurisdiction over the intellectual property will approve the request if he or she determines that the granting of a license:(1) is consistent with Transportation Code, §201.205, and Government Code, §2054.115;(2) will benefit the department; and(3) does not conflict with department plans or activities.(d) Disapproval. If the department denies the request, it will provide the requestor with a written statement describing the reason for denial.(e) Fees. The department will determine the monetary value of department intellectual property, or an equivalent nonmonetary value, and will set license fees.(1) Amount of fee. In determining an appropriate fee for licensure of department intellectual property, the department will consider the:(A) commercial rates for comparable property;(B) original development cost;(C) intended use of the property;(D) private or public status of the requestor; and(E) primary beneficiary of the license.(2) Waiver of fee. The department may waive or reduce the amount of fees, royalties, or other monetary or nonmonetary value to be assessed if the executive director or his or her designee determines that such waiver or reduction will further the goals and missions of the department and result in a net benefit to the state. In making this determination, the executive director or designee will consider whether:(A) the licensee is a governmental entity;(B) the intellectual property will be used for a commercial purpose;(C) the department is the primary beneficiary of the licensee's use of the intellectual property; and(D) the department has an interest in maximizing the distribution and use of the intellectual property.(f) Agreement. Except as provided in subsection (g) of this section, if the department approves the granting of a license, the requestor must execute a written agreement with the department prior to any delivery or use of the intellectual property. The agreement will contain terms and conditions the department deems necessary to protect the department, including, but not limited to:(1) license term and geographical area;(2) rights granted, including patent-rights;(3) description of products utilizing the trademark;(4) fees or royalties;(5) inspection of licensee's books and records;(6) policing of trademark or copyright infringement;(7) prohibited uses; and(8) indemnification of the department.(g) Exception. A written license agreement is not required for department intellectual property that is downloaded from the department's Internet web site, or for the licensure of unregistered department intellectual property that is generally available to the public, including articles, maps, plans, and photographs. The department will insert in or otherwise include with the intellectual property the appropriate notice of copyright, trademark, or other notice of the department's ownership. The department may provide a requestor with a written statement that includes permission to use the intellectual property and any restrictions on the licensee's use of the intellectual property.(h) Appeal. A requestor may appeal department denial of the license request to the executive director or designee not below the level of assistant executive director by submitting a written request for appeal. The decision of the executive director or his or her designee will be final.(i) Public information. Requests for the licensure of department intellectual property that is determined to be public information under Government Code, Chapter 552 will be processed in accordance with Chapter 3, subchapter B of this title (relating to Public Information). Any release of intellectual property is subject to compliance with subsections (f) and (g) of this section.</content><note type="source"><p>Source Note: The provisions of this §22.22 adopted to be effective November 20, 1997, 22 TexReg 11093; amended to be effective February 20, 2002, 27 TexReg 1185.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p1/c23"><num value="23">CHAPTER 23</num><heading>TRAVEL INFORMATION</heading><subchapter identifier="/us/state/tx/tac/t43/p1/c23/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t43/p1/c23/scA/s23.1"><num value="23.1">§23.1</num><heading>Purpose and Scope</heading><content>This chapter prescribes the policies and procedures for operation of the Travel Information Division of the Texas Department of Transportation. The travel and tourism functions of the division, as authorized by Transportation Code, Chapter 204, include operation of the state's network of travel information centers, production and dissemination of the state's travel and tourism information including, publication of Texas Highways magazine, the state's official travel magazine, and operation of the department's promotional products program.</content><note type="source"><p>Source Note: The provisions of this §23.1 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c23/scA/s23.2"><num value="23.2">§23.2</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--The Texas Transportation Commission.(2) Department--The Texas Department of Transportation.(3) Director--The director of the Travel Information Division.(4) Division--The Travel Information Division of the Texas Department of Transportation.(5) Person--An individual, partnership, corporation, or other business entity.(6) Promotional product--An item sold through the promotional products program under Subchapter D of this chapter (relating to Promotional Product Program) and described by §23.65 of this chapter (relating to Types of Promotional Products).(7) Travel information--Maps, pamphlets, brochures, other printed materials, public service announcements, public service programs, advertisements, webpages, and electronic media, that are designed to inform the public, stimulate travel to and within Texas, and publicize points of interest, recreational grounds, scenic places, historical facts, highway and road conditions, emergency travel information or other items of interest and value to the traveling public.(8) Travel information center--A location selected by the department at which travel information and travel counseling are provided.</content><note type="source"><p>Source Note: The provisions of this §23.2 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c23/scB"><num value="B">SUBCHAPTER B</num><heading>TRAVEL INFORMATION</heading><section identifier="/us/state/tx/tac/t43/p1/c23/scB/s23.11"><num value="23.11">§23.11</num><heading>Purpose</heading><content>Transportation Code, Chapter 204, authorizes the department to create and publish travel information for distribution to the traveling public and to include paid advertising in travel information if the quality and quantity of the travel information is maintained. This subchapter prescribes the department's policies and procedures relating to the development, production, printing, marketing, and distribution of travel information by or for the department.</content><note type="source"><p>Source Note: The provisions of this §23.11 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c23/scB/s23.12"><num value="23.12">§23.12</num><heading>Contracts for Travel Information</heading><content>The department, consistent with Government Code, Chapters 2155 - 2158 and 2252, and Texas Constitution, Article XVI, Section 21, may enter into contracts with one or more persons for production, marketing, or distribution of travel information to achieve more effective or economical production, marketing, or distribution of travel information than could be attained by departmental efforts alone.</content><note type="source"><p>Source Note: The provisions of this §23.12 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c23/scB/s23.13"><num value="23.13">§23.13</num><heading>Travel Information Content</heading><content>(a) Subject matter. The director or the director's designee may select subject matter for inclusion in department travel information, subject to the limitations provided in Transportation Code, §204.001.(b) Information submitted by non-department personnel. The director or the director's designee may consider for inclusion in department travel information, information that is submitted by a person who is not a part of the department.(c) Removal of information. The director may remove information submitted under subsection (b) of this section if the department receives a consumer complaint concerning inaccurate information or inadequate services related to the information. The department will send a written notice of the complaints to the person that submitted the information. If the department determines the complaints are valid, the director or director's designee, on written notice to the person that submitted the information stating the reason for removal, may remove the information from all department travel information.</content><note type="source"><p>Source Note: The provisions of this §23.13 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c23/scB/s23.14"><num value="23.14">§23.14</num><heading>Texas Official Travel Map</heading><content>(a) As authorized by Transportation Code, Chapter 204, the department will publish the Texas Official Travel Map for the general traveling public. The map will show cities, towns, and highways, as described in this section, the mileage between selected points, and the locations of Texas state parks, national forests, national parks and wildlife refuges, safety rest areas, travel information centers, major lakes and rivers, counties, and other geographic information selected by the department.(b) The map may include a city or town with a population of 50 or more that is:(1) located on the state-maintained highway system; or(2) near a significant park or recreational area, or a historical, recreational, or scenic facility that is of interest to tourists and regularly open to the public.(c) The map will include highways that are designated by the commission and regularly open to public traffic including:(1) interstate highways;(2) United States highways;(3) state highways;(4) farm-to-market, ranch-to-market, or recreational roads that connect with one or more higher-grade highways or roadways; and(5) farm-to-market, ranch-to-market, or recreational roads, spurs, loops, business routes, or park roads that provide access to widely recognized parks, lakes, tourism attractions, or recreational areas.(d) The map may include map insets that show a few primary highways or through routes in selected cities or areas of the state. The department will select a city or area for an inset in a manner to best use the limited space available on the map and on the basis of annual traffic volume in each of the metropolitan areas or on the basis of the city or area being a port of entry.(e) The map may include a chart that shows the mileage between selected cities and towns. In selecting a city or town for the chart, the department will consider:(1) the significance of its location as a geographic reference point for calculating long-distance trips within Texas, assuring a statewide balance in the selections;(2) the importance of its location as a gateway or entrance point to the state or as the site of significant highway intersections;(3) whether it is a primary travel or tourist destination; and(4) its population.</content><note type="source"><p>Source Note: The provisions of this §23.14 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c23/scB/s23.15"><num value="23.15">§23.15</num><heading>Acceptable Advertising Subject Matter</heading><content>Subject to the limitations provided in Transportation Code, §204.001, subjects acceptable for advertising in department travel information are:(1) Texas vacation, travel, and tourism-related attractions, sites, facilities, destinations, accommodations, restaurants, events, equipment and services;(2) shopping opportunities related to Texas destinations and products, including food products;(3) pleasure-driving, including equipment, facilities, destinations, and services;(4) recreational attractions, sites, equipment, facilities, and services;(5) outdoor activities and attractions, including camping, hiking, fishing, boating, bicycling, gardening, photography, birding and other wildlife viewing, and astronomical and geological attractions;(6) public transportation modes, products, facilities, and services;(7) financial, media, and higher education services related to Texas institutions;(8) real estate developments related to recreational and retirement living in Texas; and(9) other matters of interest and value to the public and highway users.</content><note type="source"><p>Source Note: The provisions of this §23.15 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c23/scB/s23.16"><num value="23.16">§23.16</num><heading>Unacceptable Advertising Subject Matter and Restrictions</heading><content>(a) Unacceptable subjects. The following are unacceptable for an advertisement in department travel information:(1) an out-of-state travel-tourism location, destination, facility, or service, unless it borders and has ties with Texas or augments Texas travel or tourism;(2) an alcoholic beverage, except as provided by subsection (c) of this section;(3) a tobacco product;(4) a sexually-oriented product or service; and(5) any subject that is not related to travel and tourism, as determined by the department.(b) Other restrictions. The department will not accept an advertisement that:(1) it considers to be misleading or a misrepresentation of facts; or(2) discriminates against a state or federally protected class of persons.(c) Exception. This section does not prohibit the advertisement of a product, or a facility open to the general public, that highlights a registered Texas Department of Agriculture's GO TEXAN product that is grown, produced, or manufactured in Texas.</content><note type="source"><p>Source Note: The provisions of this §23.16 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c23/scB/s23.17"><num value="23.17">§23.17</num><heading>Advertising Notices</heading><content>(a) Electronic mailing list. A person interested in advertising in department travel information may request, by registering on the department's website, to receive advertising information from the department electronically. The department or its designated agent may provide advertising space deadlines and rates to persons on the electronic mailing list. Annually, the department will publish in the Texas Register a notice with instructions for requesting to be included in the department's electronic mailing list to receive advertising information. A person may request to be removed from the electronic mailing list at any time. (b) Printed information. On request, the department or its designated agent will provide a copy of the advertising information.</content><note type="source"><p>Source Note: The provisions of this §23.17 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c23/scB/s23.18"><num value="23.18">§23.18</num><heading>Advertising Rates and Sales</heading><content>(a) Advertising rates. The department will calculate advertising rates for each travel information publication that the department considers appropriate for advertising. The department will publish the advertising rate information on a continuous basis on the department's website and at least annually in the Texas Register. The published information will include information about: (1) advertising space and positions; (2) advertising rates; (3) publication issue and closing dates; (4) circulation data; (5) publisher's editorial profile; and (6) other related information. (b) Advertising sales. The department or its designated agent will accept orders for paid advertising that meet the requirements of this subchapter and are received before the publication deadline, in the order in which the orders are received, until all advertising space for the publication is filled.</content><note type="source"><p>Source Note: The provisions of this §23.18 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c23/scB/s23.19"><num value="23.19">§23.19</num><heading>Removal of Advertising</heading><content>The director or director's designee may remove an advertisement based on the department receiving a complaint concerning the advertised product or service. The department will send a written notice of the complaints to the advertiser. If the department determines the complaints are valid, the director or director's designee, on written notice to the advertiser stating the reasons for removal, may remove the advertisement from all travel information.</content><note type="source"><p>Source Note: The provisions of this §23.19 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c23/scB/s23.20"><num value="23.20">§23.20</num><heading>Distribution</heading><content>(a) Purpose. This section prescribes the policies and procedures of the department relating to the distribution of travel information, except that it does not apply to the distribution of the Texas Highways Magazine. The procedures provide for equitable free distribution of available travel information within budgetary constraints and maximize the resources of the department available to advertise the highways of the state and to promote travel to and within the state. (b) Single copies. A single copy of a publication will be distributed free of charge to each individual requesting the publication. (c) Multiple copies free of charge. (1) Subject to inventory and budgetary constraints, the department: (A) will distribute multiple copies of travel information free of charge to: (i) each elected state or federal official, for use in the official's duties; and (ii) the Economic Development and Tourism Office of the Governor, a state or federal agency, and a local governmental entity involved in tourism; and (B) may distribute multiple copies of travel information free of charge to a person that submits, on a form prescribed by the department, a written request in which the person: (i) describes how the copies will assist the traveling public and stimulate travel to or within the state; and (ii) certifies that all copies of the travel information will be redistributed to the public free of charge. (2) If a request submitted under paragraph (1) of this subsection is denied, the department will provide to the requestor a written notice of the reasons for the denial. (d) Multiple copies for a charge. Subject to inventory and budgetary constraints, the department may provide multiple copies of travel information to any person who: (1) reimburses the department for all reasonable direct and indirect production costs for the copies; and (2) certifies in a written form prescribed by the department that all copies of the travel information will be redistributed to the public free of charge.</content><note type="source"><p>Source Note: The provisions of this §23.20 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c23/scC"><num value="C">SUBCHAPTER C</num><heading>TRAVEL INFORMATION CENTERS</heading><section identifier="/us/state/tx/tac/t43/p1/c23/scC/s23.41"><num value="23.41">§23.41</num><heading>Purpose</heading><content>The department is required by Transportation Code, Chapter 204, to maintain and operate a statewide system of travel information centers. This subchapter prescribes department policies and procedures for:(1) providing at travel information centers highway information, travel guidance, and travel information designed to assist the traveling public and stimulate travel to and within this state; and(2) selling commercial advertising space at a travel information centers.</content><note type="source"><p>Source Note: The provisions of this §23.41 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c23/scC/s23.42"><num value="23.42">§23.42</num><heading>Display of Non-Department Produced Travel Information</heading><content>(a) Travel information. The department may accept, display, and distribute to the traveling public at the department's travel information centers travel information that promotes Texas travel and tourism opportunities and is provided by a third party.(b) Eligibility for display. To be displayed at a travel information center under this section, travel information must be:(1) the type of information described by Transportation Code, §204.001;(2) provided to the department free of charge; and(3) approved for display by the director or the director's designee.(c) Unacceptable information. The department will not accept information that:(1) is solely for the purpose of selling a membership or promoting something that is not directly related to travel or tourism;(2) promotes an out-of-state travel and tourism activity, destination, facility, attraction, or service that does not directly augment Texas travel or tourism;(3) contains terminology, advertising, or pictures that are sexually-oriented;(4) is intended to be displayed on a wall at a travel information center; or(5) discriminates against a state or federally protected class of persons.(d) Request for display. A person may submit a request for the display of travel information under this section. The department will review requests in the order in which the requests are received. If the travel information is seasonal or if no space for display is available, the travel information will be placed on a waiting list for display.(e) Agreement. Before a person may display travel information under this section, the person must enter into a written agreement with the department for the display of that information.(f) Manner of display. Travel information to which this section applies will be:(1) displayed in a manner, as determined by the travel information center supervisor that:(A) is the most efficient and informative for the public; and(B) gives more exposure to destinations that are near the travel information center or in high demand;(2) regularly rotated; and(3) displayed in season, if it is of a seasonal nature.(g) Disposal. Outdated travel information will not be returned to its provider and will be disposed of in the most appropriate manner, as determined by the travel information center supervisor, with priority given to recycling.</content><note type="source"><p>Source Note: The provisions of this §23.42 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c23/scC/s23.43"><num value="23.43">§23.43</num><heading>Advertising at Travel Information Centers</heading><content>(a) Sale of space. In accordance with 23 U.S.C. §111, and Transportation Code, Chapter 204, the department may sell, or contract with a vendor to sell on the department's behalf, commercial advertising space at a travel information center in accordance with this section.(b) Limitations. An advertisement may be exhibited only within a facility at the travel information center. The advertising area may not exceed 60 percent of all of the display area in the facility, with the remaining display area to be used free of charge for providing information to the traveling public and public service announcements.(c) Acceptable subject matter. The subject of an advertisement in a travel information center is limited to:(1) Texas vacation, travel or tourism-related attractions, sites, facilities, destinations, accommodations, restaurants, events, equipment or services determined by the department to be of cultural, educational, historical, or recreational interest to the public;(2) shopping opportunities related to Texas destinations and products, including food products;(3) pleasure-driving, including equipment, facilities, destinations, and services;(4) recreational attractions, sites, equipment, facilities, and services;(5) outdoor activities and attractions, including camping, hiking, fishing, boating, bicycling, gardening, photography, birding and other wildlife viewing, astronomical and geological attractions;(6) public transportation facilities and services;(7) financial, media, and higher education services related to Texas institutions;(8) real estate developments related to recreational and retirement living in Texas; and(9) other matters of interest and value to the public and highway users, as determined by the department.(d) Unacceptable subject matter. An advertisement in a travel information center may not advertise:(1) an out-of-state travel-tourism location, destination, facility, or service unless it borders and has ties with Texas or augments Texas travel or tourism;(2) an alcoholic beverage, except as provide by subsection (e) of this section;(3) a tobacco product;(4) a sexually-oriented product or service; or(5) another subject that is not related to travel or tourism.(e) Exception. This section does not prohibit the advertisement of a product, or a facility open to the general public, that highlights a registered Texas Department of Agriculture's GO TEXAN product that is grown, produced, or manufactured in Texas.</content><note type="source"><p>Source Note: The provisions of this §23.43 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c23/scC/s23.44"><num value="23.44">§23.44</num><heading>Agreement for Advertising at Travel Information Centers</heading><content>Before an advertiser may place an advertisement at a travel information center, the advertiser must enter into an agreement with department or the department's vendor. The agreement must:(1) require that the advertiser comply with state law, including laws prohibiting discrimination against any state or federally protected class of persons;(2) include a termination clause protecting the department from allowing any activity that would decrease the amount of federal highway funding available to the department;(3) provide the specific amount of charges for the advertising space;(4) identify the location of each advertisement; and(5) be for a term of not more than two years.</content><note type="source"><p>Source Note: The provisions of this §23.44 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c23/scC/s23.45"><num value="23.45">§23.45</num><heading>Removal of Advertisement at Travel Information Centers</heading><content>(a) Grounds for removal. The director or director's designee, or the department's vendor, may remove an advertisement in the commercial advertising space at a travel information center if:(1) the department or its vendor receives a complaint about the advertised product or service that the department or vendor determines to be valid;(2) the department or its vendor considers the advertisement to be misleading or contain a misrepresentation of facts; or(3) the advertisement discriminates against any state or federally protected class of persons.(b) Removal. If the department or vendor determines that a complaint received under subsection (a)(1) of this section is valid, the department or its vendor will send a written notice of the complaint to the advertiser. If the department or vendor determines that the complaint is valid and that removal of the advertisement is appropriate, the director or director's designee, or the department's vendor, on written notice to the advertiser stating the reasons for removal, may remove the advertisement.</content><note type="source"><p>Source Note: The provisions of this §23.45 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c23/scC/s23.46"><num value="23.46">§23.46</num><heading>Vendor for Advertising Operations</heading><content>(a) Contracts. The department may contract with one or more vendors for professional services to administer the advertising operations for the department at travel information centers.(b) Quarterly reporting. A vendor shall furnish a quarterly electronic inventory to the department in a format prescribed by the department. The inventory must include:(1) a list of all participating advertisers that have a valid agreement with the vendor under §23.44 of this subchapter (relating to Agreement for Advertising at Travel Information Centers); and(2) data pertaining to sales, advertising rates, and unused advertising space at each travel information center.(c) Annual report. A vendor shall furnish an annual report to the department in a format prescribed by the department. The annual report must include:(1) a listing of all advertisers with which the vendor has executed an agreement under §23.44 of this subchapter during the year for which the report is made;(2) a financial accounting of all revenues collected during that year by the vendor from the sales of advertising space at each travel information center;(3) the annual revenues submitted to the department from the sales of advertising space at each travel information center;(4) data pertaining to sales, advertising rates, and unused advertising space at each travel information center; and(5) any other information associated with the contract that the department determines necessary.</content><note type="source"><p>Source Note: The provisions of this §23.46 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c23/scC/s23.47"><num value="23.47">§23.47</num><heading>Advertising Sales and Solicitations</heading><content>(a) Electronic mailing list. A person interested in advertising at a travel information center may request, by registering on the department's or its vendor's website, to receive department advertising information electronically. The information provided to persons on the electronic mailing list will include notices of available advertising space and rates. Annually, the department will publish in the Texas Register a notice with instructions for requesting to be included in the department's electronic mailing list to receive advertising information. A person may request to be removed from the electronic mailing at any time. (b) Printed information. On request, the department or its vendor will provide a printed copy of the advertising information by mail.</content><note type="source"><p>Source Note: The provisions of this §23.47 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c23/scC/s23.48"><num value="23.48">§23.48</num><heading>Advertising Rates and Sales</heading><content>(a) Advertising rates. The department will calculate advertising rates for each travel information center. The department or its vendor will publish the advertising rate information on a continuous basis on the department's or its vendor's website and at least annually in the Texas Register. The published information will include information about: (1) advertising space and positions; (2) advertising rates; (3) unique travel information center public visitor data; and (4) other related information. (b) Procedure for selling advertising. The department or its vendor will accept all advertising orders in the order in which the orders are received until all advertising space is filled, and will create a waiting list if necessary.</content><note type="source"><p>Source Note: The provisions of this §23.48 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c23/scC/s23.49"><num value="23.49">§23.49</num><heading>Vending Machines</heading><content>(a) In accordance with 23 C.F.R. Part 752, Human Resources Code, §94.002, and Government Code §2165.212, the department may permit vending machines in travel information centers for the purposes of dispensing food, drink, and other items that it determines appropriate and desirable.(b) The Texas Department of Assistive and Rehabilitative Services, Division for Blind Services has first right of refusal to operate vending machines in travel information centers.</content><note type="source"><p>Source Note: The provisions of this §23.49 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c23/scC/s23.50"><num value="23.50">§23.50</num><heading>Non-department use of Travel Information Centers</heading><content>(a) Request. A person may submit a request in writing to hold an event at a travel information center. Requests will be approved in the order in which the orders are received.(b) Agreement. Before a person may hold an event at a travel information center, the person must enter into a written agreement with the department agreeing to abide by the requirements of this section.(c) Activity. All events at a travel information center or its facilities shall be conducted in a manner that will cause the least interference with the travel information center's operations.(d) Restrictions. Alcoholic beverages are prohibited in a travel information center or its facilities and on the premises of the center. Any item, including food or drink, that is offered at the travel information center as part of an event, must be given free of charge to all visitors at the travel information center.(e) Signs. The person hosting the event at a travel information center:(1) must receive prior approval of the director or the director's designee of each sign to be used for the event, including advance signs advising motorists of the event;(2) may not attach a sign to the travel information center or a highway sign or place a sign so that it interferes with the travel information center's operation or the view from the roadway of a highway sign;(3) shall prominently display a sign indicating that all items provided are free of charge to all visitors of the travel information center; and(4) except for the sign required under paragraph (3) of this subsection, shall limit the signs used to only those necessary to identify the person hosting the event and to ownership signs that are permanently affixed to trailers, vehicles, tents, and other equipment that are directly used for holding the event.(f) Services. The department will not furnish utilities unless the department expressly agrees to do so in the written agreement required for the event.(g) Cleanup. The person hosting the event is solely responsible for the cleanup of all facilities used for the event.(h) Compliance. The department will monitor compliance with the requirements of this section. The department may immediately cancel event activities on the failure to comply with those requirements. The department may use a person's non-compliance as the basis for refusing future requests.</content><note type="source"><p>Source Note: The provisions of this §23.50 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c23/scD"><num value="D">SUBCHAPTER D</num><heading>PROMOTIONAL PRODUCT PROGRAM</heading><section identifier="/us/state/tx/tac/t43/p1/c23/scD/s23.61"><num value="23.61">§23.61</num><heading>Purpose</heading><content>Transportation Code, §204.009, authorizes the department to sell promotional products such as calendars, books, prints, caps, clothing, or other items that advertise the resources of Texas. This subchapter prescribes policies and procedures relating to the department's promotional product program, including the selection, pricing, and sale of items.</content><note type="source"><p>Source Note: The provisions of this §23.61 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c23/scD/s23.62"><num value="23.62">§23.62</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Mark--A trademark, service mark, or copyright owned by the department, which may consist of a word, phrase, name, symbol, emblem, logo, or any combination of those items.(2) Program--The promotional product program of the department.(3) Retailer--A person that contracts with the department, department's vendor, or wholesaler to directly sell products under the program.(4) Vendor--A person that acts as the authorized agent of the department in the marketing, administration, and the solicitation of participating wholesalers and retailers.(5) Wholesaler--A person that offers a product to the department or its vendor to be sold through the program.</content><note type="source"><p>Source Note: The provisions of this §23.62 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c23/scD/s23.63"><num value="23.63">§23.63</num><heading>Sale of Products by the Department</heading><content>(a) Place of sales. The department may sell products under this subchapter:(1) at any department building, including a rest area building or travel information center;(2) at a location at which the department has access to provide travel information, if such a sale is authorized under the access agreement;(3) through the Texas Highways magazine and its website; and(4) through a department controlled or operated website that is created for the purpose of promoting department programs or campaigns.(b) Fees. Shipping and handling fees will be added to mail orders to offset the cost of distribution.(c) Currency; taxes. All sales must be made in United States dollars and all applicable sales taxes will be added to the price of the products.(d) Revenue. All revenue collected under the program will be deposited to the credit of the state highway fund for use in the department's travel information operations.</content><note type="source"><p>Source Note: The provisions of this §23.63 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c23/scD/s23.64"><num value="23.64">§23.64</num><heading>Refunds and Complaints</heading><content>(a) Refunds. A refund of the purchase price of a product sold under the program, less shipping and handling costs, will be made on return of the product and the sales receipt or proof of purchase to the department or the department's vendor, as appropriate, but only if the product is undamaged and unused and is returned with all tags and product packaging.(b) Complaints. Complaints about merchandise may be directed to the director or the department's vendor and will be reviewed before the placement of future orders of the product. If the vendor receives a complaint, the vendor will provide to the department within 30 days after the date of receipt of the complaint a report that provides details of the complaint and all actions taken to resolve the complaint.</content><note type="source"><p>Source Note: The provisions of this §23.64 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c23/scD/s23.65"><num value="23.65">§23.65</num><heading>Types of Promotional Products</heading><content>(a) Production or purchase. A product sold under the program may be designed and produced by the department or purchased from a wholesaler.(b) Resources of the state. A product provided for sale under the program must advertise the resources of Texas the state and convey a positive image of the scenic, recreational, historical, geographical, cultural, or artistic aspects of the state or promote other department programs that advertise the resources of the state.(c) Product categories. The following are approved product categories:(1) printed material and paper products;(2) clothing, jewelry, and accessories;(3) audio-visual media items;(4) travel related products;(5) seasonal items;(6) home décor;(7) gardening and outdoor accessories;(8) kitchen and food items;(9) games;(10) promotional items;(11) tickets for events or attractions in the state; and(12) travel related coupon booklets.</content><note type="source"><p>Source Note: The provisions of this §23.65 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c23/scD/s23.66"><num value="23.66">§23.66</num><heading>Request for Inclusion of Product in Program</heading><content>(a) Request. A wholesaler, at any time, may request that a product be considered for sale under the program by sending to the director or the director's designee a sample of the product and a written request that includes:(1) a description of the product, including its composition;(2) location of the product's manufacturer;(3) wholesale unit price of the product;(4) suggested retail price of the product;(5) selling history and performance of the product if it has been previously marketed;(6) inventory production capabilities;(7) method of delivery; and(8) proof of ownership of the rights to market the product.(b) Determination. The director or the director's designee will make the final determination on a request under subsection (a) of this section.(c) Notification. The department will notify the wholesaler of the final determination. If the request is approved, the department will initiate a contract for the sale of the wholesaler's product.(d) Samples. All samples submitted under this section become the property of the department unless the wholesaler specifies otherwise in the request and provides with the request a pre-paid return label and packaging or details for the wholesaler's personal pick-up of the sample.</content><note type="source"><p>Source Note: The provisions of this §23.66 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c23/scD/s23.67"><num value="23.67">§23.67</num><heading>Market Research and Product Selection</heading><content>(a) Research. The department may conduct market research to determine which products are to be offered for sale under the program.(b) Selection. After review of the research results, the department will select the products to be sold and begin a search for suppliers of those products.(c) Bids. The department may obtain bids to produce selected products in accordance with Government Code, Chapters 2155 - 2158.(d) Wholesaler list. The department will maintain a list of wholesalers who express an interest in supplying products. When the department determines that new products are needed, the department will notify those on the list.</content><note type="source"><p>Source Note: The provisions of this §23.67 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c23/scD/s23.68"><num value="23.68">§23.68</num><heading>Vendor Contract and Duties</heading><content>(a) Vendor Services. The department may contract with a vendor to provide one or more of the following services for the program:(1) conducting market research under §23.67 of this subchapter (relating to Market Research and Product Selection);(2) soliciting products;(3) conducting initial product selection; or(4) managing product acquisitions, inventory, or sales.(b) Product Selection. The final selection of a product for the program must be made by the department.(c) Records. A vendor that contracts with the department under the program must maintain all records received from a wholesaler regardless of whether the wholesaler's product was selected for the program.(d) Agreement with Wholesaler. A vendor that contracts to manage product acquisitions for the department shall enter into an agreement under §23.71 of this subchapter (relating to Wholesaler Agreement) with each wholesaler whose products are acquired by the vendor for the program.(e) Agreement with Retailer. A vendor that contracts to manage product sales for the department shall enter into an agreement under §23.72 of this subchapter (relating to Retailer Agreement) with each retailer that sells products for the program through the vendor.</content><note type="source"><p>Source Note: The provisions of this §23.68 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c23/scD/s23.69"><num value="23.69">§23.69</num><heading>Vendor Wholesale Report</heading><content>A vendor that contracts to manage product acquisitions shall furnish to the department, in a format prescribed by the department, monthly and annual wholesale reports. A report must include for the reporting period:(1) a list of the names of all wholesalers participating in the program through the vendor;(2) a list of the names of all wholesalers who submitted to the vendor products for consideration for the program and for each wholesaler a detailed description of each product submitted and whether the product was selected or rejected;(3) revenue submitted by the vendor to the department, identifying the separate sources of revenue; and(4) the total amount of fees retained by the vendor.</content><note type="source"><p>Source Note: The provisions of this §23.69 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c23/scD/s23.70"><num value="23.70">§23.70</num><heading>Vendor Retail Report</heading><content>A vendor who is contracted to manage product sales for the department shall furnish to the department, in a format prescribed by the department, monthly and annual retail reports. A report must include for the reporting period:(1) a list of the names of all retailers participating in the program through the vendor;(2) contact information for each retailer participating in the program through the vendor, including address, key contact name, website, email, and phone numbers;(3) the amount of administrative and royalty fees owed to the vendor under the program and those collected by the vendor;(4) revenue submitted to the department for each retailer; and(5) the date of expiration of the agreement for each participating retailer.</content><note type="source"><p>Source Note: The provisions of this §23.70 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c23/scD/s23.71"><num value="23.71">§23.71</num><heading>Wholesaler Agreement</heading><content>(a) Agreement. A wholesaler whose product is selected must enter into an agreement with the department or the department's vendor, as appropriate, before the product may be sold under the program. The agreement must include:(1) the description of the product;(2) the quantity to be provided;(3) payment terms;(4) marketing and distribution terms, if applicable;(5) the delivery schedule;(6) the return policy;(7) the agreement period with the termination date of the agreement; and(8) any intellectual property rights related to the product and include or provide for any necessary licensing agreement.(b) Pricing. The agreement must provide that the department will set the price of the product and may change the price of the product without notice to the wholesaler.(c) Termination. The agreement must provide that the department may discontinue the acquisition or sale of a product at any time. A product must achieve an acceptable level of sales activity, as determined solely by the department, to be considered for continued participation in the program.</content><note type="source"><p>Source Note: The provisions of this §23.71 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c23/scD/s23.72"><num value="23.72">§23.72</num><heading>Retailer Agreement</heading><content>(a) Agreement. A retailer that sells products through the program must enter into an agreement, in a form prescribed by the department, with the department or its vendor, before any product may be sold.(b) Terms. Each agreement must:(1) be for a term of not less than two years and provide the date that the agreement will terminate;(2) require that the retailer comply with state laws prohibiting discrimination based on any state or federally legally protected class of persons;(3) state the fees charged by the vendor to administer the program if a vendor is used; and(4) provide detailed information about the specific products being sold.</content><note type="source"><p>Source Note: The provisions of this §23.72 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c23/scD/s23.73"><num value="23.73">§23.73</num><heading>Use of Department Owned Intellectual Property</heading><content>(a) License agreement. A retailer, vendor, or wholesaler that produces or sells any promotional products under the program that use a department owned mark must enter into an appropriate license agreement with the department under Transportation Code, §201.205, as part of their contract.(b) Goodwill. The retailer, vendor, or wholesaler shall cooperate with the department in building and maintaining the goodwill of the department and the goodwill associated with the department's marks.</content><note type="source"><p>Source Note: The provisions of this §23.73 adopted to be effective January 7, 2015, 40 TexReg 95.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p1/c25"><num value="25">CHAPTER 25</num><heading>TRAFFIC OPERATIONS</heading><subchapter identifier="/us/state/tx/tac/t43/p1/c25/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL</heading><section identifier="/us/state/tx/tac/t43/p1/c25/scA/s25.1"><num value="25.1">§25.1</num><heading>Uniform Traffic Control Devices</heading><content>(a) The 2025 Texas Manual on Uniform Traffic Control Devices was prepared by the Texas Department of Transportation to govern standards and specifications for all traffic control devices to be erected and maintained upon any street, highway, bikeway, public facility, or private property open to public travel within this state, including those under local jurisdiction, and is adopted by reference. Copies of the manual are available online through the Texas Department of Transportation web site, www.txdot.gov, and a copy is available for public inspection at the department's Traffic Safety Division office located at 6230 East Stassney Lane, Austin, Texas 78744.(b) This manual will be periodically updated. In the intervals between updates, standards contained in "Official Rulings on Requests for Interpretations, Changes, and Experimentation" to the United States Department of Transportation's Manual on Uniform Traffic Control Devices for Streets and Highways will be inserted in this manual and may be used as interim standards.(c) This manual is not intended to preclude the use of sound engineering judgment and experience in the application and installation of devices and particularly in those cases not specifically covered which must not conflict with the manual or other applicable state laws.</content><note type="source"><p>Source Note: The provisions of this §25.1 adopted to be effective January 1, 1976; amended to be effective August 26, 1976, 1 TexReg 2240; amended to be effective February 27, 1977, 2 TexReg 623; amended to be effective January 3, 1978, 2 TexReg 4917; amended to be effective December 13, 1978, 3 TexReg 4151; amended to be effective August 28, 1979, 4 TexReg 2863; amended to be effective October 19, 1979, 4 TexReg 3716; amended to be effective January 29, 1980, 5 TexReg 138; amended to be effective December 1, 1980, 5 TexReg 4264; amended to be effective September 2, 1981, 6 TexReg 3011; amended to be effective February 15, 1983, 8 TexReg 402; amended to be effective February 17, 1984, 9 TexReg 500; amended to be effective March 21, 1989, 14 TexReg 1294; amended to be effective March 30, 1994, 19 TexReg 1832; amended to be effective December 5, 1995, 20 TexReg 9749; amended to be effective January 10, 1999, 24 TexReg 169; amended to be effective January 9, 2003, 28 TexReg 364; amended to be effective March 16, 2006, 31 TexReg 1727; amended to be effective October 16, 2008, 33 TexReg 8556; amended to be effective December 8, 2011, 36 TexReg 8244; amended to be effective December 6, 2012, 37 TexReg 9528; amended to be effective October 12, 2014, 39 TexReg 7958; amended to be effective January 18, 2026, 50 TexReg 7734.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scA/s25.2"><num value="25.2">§25.2</num><heading>Load Limits on County Roads and Bridges</heading><content>(a) Purpose. Transportation Code, §621.301, provides that a county may establish load limits for any county road or bridge only with the concurrence of the department. This section prescribes the policies and procedures governing department concurrence with a proposed county load limit.(b) Definitions. The following words and terms, when used in this section, will have the following meanings, unless the context clearly indicates otherwise:(1) Calculations--Computations of the load limit of a road or bridge in accordance with accepted engineering principles.(2) Department--The Texas Department of Transportation.(3) District engineer--The chief administrative officer of a district in which the county resides.(4) Engineer--A person who is licensed by the Texas Board of Professional Engineers to engage in the practice of engineering in this state.(5) Executive director--The executive director of the department or the executive director's designee not below the level of deputy executive director.(6) Load limits--Maximum loads a road or bridge can safely carry.(c) Load limit for a bridge pursuant to department inspection. If the department inspects a county bridge and notifies the commissioners court that the bridge qualifies for a lower load limit under 23 C.F.R. Part 650, Subpart C, a load limit established consistent with the department's notification is deemed to have the department's concurrence. The department's notification shall serve as evidence of concurrence.(d) County revision to load limit.(1) Request.(A) If a county determines that the load limit of a county bridge should be different than the load limit supported by a department inspection, the county shall submit the proposed load limit to the district engineer.(B) If a county determines that the load limit of a county road should be changed, the county shall submit the proposed change in load limit to the district engineer.(2) Required documentation. A request for a load limit shall be accompanied by supporting documentation that is sealed by an engineer and that includes at a minimum:(A) calculations supporting the proposed limit;(B) for a bridge, a structural evaluation report documenting the condition; and(C) for a road, a full-depth pavement structural analysis and a pavement visual distress condition evaluation.(3) Concurrence.(A) The district engineer will concur with the proposed load limit if the district engineer determines that the submitted documentation and calculations are based on accepted engineering principles.(B) The district engineer will, in writing, concur or not concur within 30 calendar days.(C) If the department does not indicate concurrence or nonconcurrence in writing within 30 calendar days of receipt by the department of a request that included all required documentation, the proposed load limit shall be deemed concurred with by the department. The department may review the load limit and withdraw this concurrence at any time by providing written notification to the county.(4) Appeal. A county may appeal the decision of the district engineer by submitting a written request, along with the required documentation, to the executive director. The executive director will review the request and determine if department concurrence will be granted. The executive director's decision is final.</content><note type="source"><p>Source Note: The provisions of this §25.2 adopted to be effective December 5, 2001, 26 TexReg 9916.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scA/s25.3"><num value="25.3">§25.3</num><heading>Installation of Pay Telephones</heading><content>The department may install pay telephones in rest areas along highway routes and at other locations when deemed necessary as a public service for motorists. All pay telephones will be installed under an agreement executed between the department and the telephone company setting forth the responsibilities of each party regarding the installation, operation, and maintenance of the telephone facility. Pay telephone installations shall not be made unless authorized by minute order of the State Highway and Public Transportation Commission.</content><note type="source"><p>Source Note: The provisions of this §25.3 adopted to be effective January 1, 1976.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scA/s25.5"><num value="25.5">§25.5</num><heading>Installation, Operation, and Maintenance of Traffic Signals</heading><content>(a) The department may install, maintain, and operate traffic signals on the state highway system in unincorporated areas when requested by anyone and provided that the location or locations meets one or more of the warrants for highway traffic signals contained in the current Texas Manual on Uniform Traffic Control Devices for Streets and Highways.(b) The department may install, maintain, and operate traffic signals on the state highway system in incorporated cities of less than 50,000 population (latest federal census) when requested by the city council, mayor, or city manager and on frontage roads and at interchanges of freeways of the state highway system within incorporated cities and provided that the location or locations meets one or more of the warrants for highway traffic signals contained in the current Texas Manual on Uniform Traffic Control Devices for Streets and Highways and that the city agrees to enter into an agreement setting forth the responsibilities of each party.(c) The department is responsible for authorizing traffic signals to be installed at locations on the state highway system other than freeways in incorporated cities of 50,000 or more population (latest federal census), provided that the locations meet one or more of the warrants for highway traffic signals contained in the current Texas Manual on Uniform Traffic Control Devices for Streets and Highways. The cost of installation, operation, and maintenance of these signals is the responsibility of the city, except that the department may provide for the installation of traffic signals when the installation is financed in part with federal-aid funds and the city agrees to enter into an agreement setting forth the responsibilities of each party.</content><note type="source"><p>Source Note: The provisions of this §25.5 adopted to be effective January 1, 1976; amended to be effective July 19, 1976, 1 TexReg 1849; amended to be effective June 29, 1987, 12 TexReg 1934.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scA/s25.6"><num value="25.6">§25.6</num><heading>Payment for and Erection of Signs (and Supplemental Flashing Beacons) by Others on State Highway Routes</heading><content>All installations and changes to traffic control devices along designated routes of the state highway system shall be at the expense of the department except under the following conditions.(1) When provisions of an agreement executed with local jurisdictions delegate responsibilities for installation and/or maintenance of the traffic control devices to others.(2) When a particular device requested by local officials within cities or individuals outside of incorporated cities is not deemed necessary by the department for the regulation, warning, or guidance of motorists, but the requested device could be installed in accordance with the Texas Manual on Uniform Control Devices and without adverse effect on motorist safety, the department may install said device at the expense of others.(3) When a guide sign change is required on the main lanes of a freeway, the cost of the change may be charged to others when the following conditions are satisfied:(A) the facility on which the change is requested has already been signed to interstate standards;(B) the requested sign change involves the addition of a name for a previously unnamed road or street, or a change in the name of a city street or county road which resulted from the official action of the city or county governing body;(C) the requested change in name cannot be accomplished within the available space on the existing sign or requires changes in the sign support;(D) the requested sign changes are requested to be made prior to the time the affected signs require maintenance replacement.(4) The department may place at the expense of others signs of a temporary nature requested to be erected on a highway route for a special event provided the following conditions are satisfied.(A) The design and size of temporary signs are approved by the department.(B) No signs of this nature will be installed which will in any way interfere with other traffic control devices.(C) The signs will be placed only for such times and in such locations as approved by the department.(D) No signing of this nature will be considered unless it can be clearly shown that such signs will be necessary for guidance of a large number of motorists to a destination open to the general public and will not adversely affect the safety of the motoring public.(E) Temporary signs which are not reusable on a regular basis and which would be needed for less than one month shall be furnished by others at no cost to the department.(5) The department may authorize the placement of special signs by others within highway rights-of-way, when necessary as a service to the motoring public, where the following conditions are satisfied.(A) The design and size of special signs shall be approved by the department.(B) The signs will be placed only for such times and in such locations as authorized by the department.(C) No special signs shall be authorized for installation which will in any way interfere with other traffic control devices or be for a destination not open to the general public.</content><note type="source"><p>Source Note: The provisions of this §25.6 adopted to be effective January 1, 1976; amended to be effective July 19, 1976, 1 TexReg 1849.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scA/s25.9"><num value="25.9">§25.9</num><heading>Memorial Designated Highways and Historical Routes</heading><content>(a) Purpose. Texas Transportation Code, Chapter 225, provides for the memorial designation of roadways on the state highway system. Subchapter A of that chapter authorizes local governmental units, if approved by the department, to assign a memorial designation to a part of the state highway system, and authorizes a county historical commission to apply to the Texas Historical Commission and the department for the marking with the historical designation of a farm-to-market or ranch road that follows a historical route. This section prescribes the policies and procedures by which memorial highways and historical routes are designated.(b) Highways designated as memorial highways in the statute. The department will design, construct, or erect a marker for a memorial highway designated by statute only if all costs of designing, constructing, and erecting the marker have been donated to the department.(c) Transportation Commission. Texas Transportation Code, §225.001, prohibits the Texas Transportation Commission from naming any road, bridge, street, or highway on the state highway system other than by designating it with the regular highway number.(d) Local governments. Local governmental units, such as a city or county, may submit a request to the department to assign a memorial designation to any part or parts of the state highway system within the local government's jurisdiction.(1) The request to assign a memorial designation to a part of a state highway must:(A) be sent to the office of the local department district in which the part to be designated is located; and(B) include:(i) a description and location of the marker or markers to be erected;(ii) a statement describing the nature and the objective of the designation, including, if the designation is for a person, the historical significance of the designee; and(iii) a copy of the order or resolution of the local government's governing body that provides the memorial designation of the highway.(2) The department will not approve a memorial designation if:(A) the highway or part of the highway is assigned a memorial designation when the request is received, regardless of whether the markers have been erected; or(B) the request is to assign a memorial designation for a living person or does not describe the designee's significance in the state's history or in the lives of the people of this state.(3) Two or more local governmental units may cooperate in seeking a single continuous memorial designation for a highway under their jurisdictions.(e) Memorial designation markers. The department will design, construct, or erect a memorial designation marker only if all costs for the marker have been donated to the department.(1) Local governmental units may furnish to the department for installation a memorial marker of a size and type approved by the department.(2) The department will erect a memorial marker at a place most suitable to the department's maintenance operations.(3) The department will maintain the grounds surrounding the memorial marker.(4) A marker for a local government memorial designated highway will be replaced only if all costs to replace the marker have been donated to the department.(5) Memorial markers may be erected at each end of the designated limits, and, if applicable, at intermediate sites so that the markers are approximately 75 miles apart.(f) Historical routes.(1) Application. A county historical commission may apply to the Texas Historical Commission and the department for the marking with a historical name of a farm-to-market or ranch road that follows a historical route.(2) Certification. Before the department may mark the road with the historical name, the Texas Historical Commission must certify that the name has been in common usage in the area for at least 50 years. The certification must be based on evidence submitted by the applying county historical commission, which must include affidavits from at least five long-time residents of the area.(3) Installation. On certification by the Texas Historical Commission, the department will prepare and install markers along the road indicating the road's historical name. The applying county historical commission shall pay for the preparation of the markers.(g) Official highway name, number, and postal address. A memorial designation or marker placed under this section does not replace the official name, highway number, or the postal address of the highway.</content><note type="source"><p>Source Note: The provisions of this §25.9 adopted to be effective December 31, 1992, 17 TexReg 8960; amended to be effective December 9, 2015, 40 TexReg 8797.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scA/s25.11"><num value="25.11">§25.11</num><heading>Continuous and Safety Lighting Systems</heading><content>(a) Purpose. This section describes the criteria governing the installation and financing of continuous lighting and safety lighting systems on segments of the state highway system.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Bikeway--A facility designed or designated for use by bicycles.(2) Continuous lighting system--A system that provides uniform illumination of a continuous section of a segment of the state highway system.(3) Department--The Texas Department of Transportation.(4) District engineer--The chief administrative officer for a district of the department.(5) Executive director--The executive director of the department.(6) Freeway--A divided highway with full control of access.(7) Functional manual--The latest edition of the manual or manuals, published by the department's traffic operations division, governing the installation, maintenance, and operation of lighting systems.(8) Highway--A road, bridge, or highway that is a segment of the state highway system, and which may include a bikeway or pedestrian way.(9) Pedestrian way--A facility designed for pedestrian use, such as a walkway, sidewalk, or pedestrian bridge.(10) Safety lighting system--A system that provides safer and more efficient movement of nighttime traffic at urban or rural interchanges, highway intersections, and points of nighttime hazard on segments of the state highway system.(c) Funding eligibility.(1) Continuous lighting system. The department may expend funds for the construction, maintenance, or operation of a continuous lighting system on the following types of highways:(A) multi-lane divided urban freeways with full control of access; and(B) multi-lane arterial highways with partial control of access that provide:(i) access to abutting property;(ii) at-grade crossings at minor streets and roads; and(iii) grade separation structures at the major crossing of arterial highways, streets, and roads.(2) Safety lighting system.(A) The department may expend funds for safety lighting systems on any highway designated as a part of the state highway system, provided that the department anticipates that:(i) the safety of nighttime traffic movements will be enhanced; and(ii) the incidence of nighttime accidents might be minimized or eliminated.(B) A continuous lighting system may qualify as a safety lighting system, provided that:(i) the system is installed on a freeway with full control of access;(ii) the freeway passes through unincorporated areas, or through incorporated areas with a municipal population of less than 50,000 people according to the most recent federal census;(iii) the freeway has an average daily traffic volume in excess of 70,000 vehicles; and(iv) a department study of the traffic volume or nighttime accident rate of the freeway indicates that continuous lighting will substantially improve traffic safety and the efficiency of nighttime traffic.(3) Bikeway and pedestrian way lighting.(A) The department may expend funds for continuous and safety lighting systems on bikeways and pedestrian ways on any segment of the state highway system, and on any highway maintained by the department.(B) When bikeway or pedestrian way lighting is installed, the department may expend funds for lighting systems on the adjacent roadway to the same extent that lighting is provided for the bikeway or pedestrian way.(d) Local government installation and financing.(1) Local governments may finance, install, and operate a continuous lighting or safety lighting system on a highway not lighted by the department, provided that the lighting system installed by the local government on a segment of the state highway system meets all safety-related requirements under federal and state law and functional manuals.(2) When requested by a local government, the department will cooperate in the consideration of a lighting system, and may assist in system development, planning, and design.(e) Method of financing.(1) Continuous lighting systems. A local government shall participate in the installation, maintenance, and operation of continuous lighting systems by choosing one of the following two methods of participation.(A) 100% agreement. The department will fund the total cost of designing and installing the continuous lighting system, provided that the local government agrees to assume all of the cost of the subsequent operation and maintenance of the system.(B) 50-50 agreement. The department and the local government will each share one-half of the cost of installation, maintenance, and operation of a continuous lighting system, including a prorated share of the department's general and administrative costs. These costs include the preparation of plans and specifications, advertisement for bids, and letting of the contract.(2) Safety lighting systems.(A) The department may fund all or any part of the cost of installation, operation, and maintenance of a safety lighting system eligible for department participation under subsection (c)(2) or (3) of this section.(B) If a department installed or funded safety lighting system is later incorporated into the limits of a continuous lighting system in which the department participated in the cost of installation, the cost of operation and maintenance of the safety lighting system shall be shared by the department and the local government on the same basis as they share the cost of operation and maintenance of the continuous lighting system.(C) If a department installed or funded safety lighting system is later incorporated into the limits of a continuous lighting system in which the department does not participate in the cost of installation, the department will continue to pay the entire cost of the operation and maintenance of the safety lighting system; however, the department will not participate in the cost of operation and maintenance of the continuously lighted sections into which the safety lighting system is incorporated.(3) Excess costs. When the participating local government desires that special or unusual amenities, qualities, or features be incorporated into the lighting system beyond the standard design equipment, systems, or practices of the department or beyond that otherwise provided for by the department, the desires of the local government will be incorporated into the lighting system as much as is practicable, provided that the local government furnishes all additional estimated funds in accordance with the terms of an escrow agreement between the department and the local government.(f) Agreement.(1) Financing, installation, maintenance, and operation of lighting systems in which the department participates in the cost shall be in accordance with the terms and conditions of an agreement between the department and the local government.(2) A local government may operate or maintain a lighting system contrary to the terms of the agreement if the district engineer finds that such action would be consistent with the safety of the traveling public.(g) Default. If a local government defaults on any lighting agreement with the department, the department will discontinue any further funding of continuous lighting systems in that local government's jurisdiction, unless the executive director determines that such action would be inconsistent with the safety of the traveling public.</content><note type="source"><p>Source Note: The provisions of this §25.11 adopted to be effective November 18, 1994, 19 TexReg 8774.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c25/scB"><num value="B">SUBCHAPTER B</num><heading>PROCEDURES FOR ESTABLISHING SPEED ZONES</heading><section identifier="/us/state/tx/tac/t43/p1/c25/scB/s25.20"><num value="25.20">§25.20</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--The Texas Transportation Commission.(2) Department--The Texas Department of Transportation.(3) District--A geographical area managed by a district engineer, in which the department conducts its primary work activities.(4) Environmental speed limit--A speed limit created by the commission at the request of the Texas Commission on Environmental Quality for the purposes of meeting federal air quality standards.(5) Farm-to-Market (FM) or Ranch-to-Market (RM) road--A road shown in the records of the commission to be a farm-to-market or ranch-to-market road.(6) May--A permissive condition.(7) Regional Mobility Authority--An authority created under Transportation Code, Chapters 361 or 370, at the request of one or more counties and authorized by the commission for the purpose of constructing, maintaining, and operating transportation projects.(8) Regional Tollway Authority--An authority created under Transportation Code, Chapter 366, consisting of two or more counties for the purpose of acquisition, design, financing, construction, operation, and maintenance of a turnpike project or system.(9) Shall--A mandatory condition.(10) Should--Advisable but not mandatory; however, any reason for not following the instruction shall be supported by sound engineering judgment.(11) TCEQ--The Texas Commission on Environmental Quality which is the state air pollution control agency and is the principal authority in the state of Texas on matters relating to the quality of the state's air resources.(12) Texas Manual on Uniform Traffic Control Devices (TMUTCD)--The manual, and any revisions, adopted by the commission as required under Transportation Code, §544.001.(13) Trial runs--A drive through the speed zoned section of roadway at the chosen speeds to determine if the speeds are appropriate for the area.</content><note type="source"><p>Source Note: The provisions of this §25.20 adopted to be effective December 9, 2004, 29 TexReg 11389; amended to be effective October 16, 2008, 33 TexReg 8557.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scB/s25.21"><num value="25.21">§25.21</num><heading>Introduction</heading><content>(a) Overview.(1) Purpose. This subchapter provides the information and procedures necessary for establishing speed zones and advisory speeds on the state highway system.(2) Applicability. This subchapter is intended for use by entities with authority to set speed zones. These procedures shall be followed by the department, cities, and commanding officers of the U.S. military reservations when establishing speed zones on the state highway system. Regional tollway and regional mobility authorities shall follow these procedures when establishing speed zones.(3) Responsibilities.(A) The department will:(i) conduct engineering and traffic studies associated with the establishment of speed zones and advisory speeds;(ii) request cities to pass ordinances or resolutions establishing speed zones when necessary; and(iii) erect and maintain necessary speed limit and advisory speed signs and notify local enforcement authorities upon installation of the signs.(B) Cities will:(i) request that the district conduct engineering and traffic studies associated with the establishment of speed zones on the state highway system within the city limits or conduct the studies themselves; and(ii) upon approval by the department, prepare and pass city ordinances or resolutions establishing speed zones.(C) A commissioners court of a county by resolution may request, through the district office, that the commission determine and declare a reasonable and safe prima facie speed limit lower than that established by Transportation Code, §545.352, on any part of a farm-to-market or a ranch-to-market road that is without improved shoulders located in that county.(b) Background.(1) Prima facie concept. In Texas, all speed limits are considered "prima facie" limits. Prima facie limits are those limits which on the face of it, are reasonable and prudent under normal conditions.(2) Authority to set speed zones.(A) Transportation Code, §545.353 authorizes the commission to alter maximum speed limits on highway routes both within and outside of cities, provided the Procedures for Establishing Speed Zones are followed and the commission determines that the speed being established on a part of the highway system is a safe and reasonable speed for that part of the highway. The commission may establish a speed limit of:(i) 75 miles per hour on any portion of the state highway system;(ii) 80 miles per hour on parts of Interstate Highway 10 and of Interstate Highway 20 in Crockett, Culberson, Hudspeth, Jeff Davis, Kerr, Kimble, Pecos, Reeves, Sutton, or Ward counties; or(iii) up to 85 miles per hour on a highway designed to accommodate travel at the speed being established.(B) The altering of the general statewide maximum speed limits to fit existing traffic and physical conditions of the highway constitutes the basic principle of speed zoning.(C) Transportation Code, §545.355 and §545.356, give counties and cities the authority to establish a prima facie maximum speed limit of 75 miles per hour within their respective jurisdictions. The law also provides that any speed zone on highway routes in cities established by commission minute order will supersede any conflicting zone set by city ordinance or resolution.(D) Except in very unusual circumstances, the zoning on state highway routes within cities should only be set by city ordinance or resolution based upon the recommendations of the department. The usual practice, even for speed zones established by city ordinance or resolution, is for the department to make the necessary speed studies and recommend the most appropriate zoning to the city. Cities that have a traffic engineering staff may also make speed studies on state-maintained highways and recommend proper zoning. The procedure is permissible so long as the department is afforded an opportunity to review and approve the recommended city zoning.(E) County commissioner courts and governing bodies of incorporated cities and villages may alter maximum prima facie speed limits on roadways under their jurisdiction in accordance with the provisions of Transportation Code, §545.355 and §545.356, respectively. However, alteration of maximum prima facie speed limits on any designated or marked roadway of the state highway system, even within the corporate limits of a city, typically requires an engineering and traffic investigation in accordance with §25.23 of this subchapter (relating to Speed Zone Studies), and the approval of the department.(F) A county that increases the prima facie speed limit on a county road or highway is also required to conduct an engineering and traffic investigation. However, for a county road or highway outside the limits of the right of way of an officially designated or marked highway or road on the state highway system, the county commissioners court may declare a lower speed limit of not less than 30 miles per hour, if the commissioners court determines that the prima facie speed limit on the road or highway is unreasonable or unsafe.(G) County authority does not extend to any segment of the state highway system; however, the commissioners court of a county, by resolution, may request the commission to determine and declare a reasonable and safe prima facie speed limit that is lower than a speed limit established by Transportation Code, §545.352, on any part of a farm-to-market or ranch-to-market road without improved shoulders located in that county.(H) The commission shall give consideration to local public opinion and may determine and declare a lower speed limit on any part of the road without an engineering and traffic investigation, but the commission must use sound and generally accepted traffic engineering practices in determining and declaring the lower speed limit. Sound and generally accepted engineering practices for these FM and RM roadways without improved shoulders are described in §25.23(d) of this subchapter.(I) County authority is different from the authority of cities, who may exercise concurrent authority subject only to commission override. In exercising their authority, cities must base any speed zones on engineering and traffic investigations, notwithstanding the type of road or street and whether the state highway system is involved.(J) The authority of regional tollway authorities, regional mobility authorities, and the Commanding Officer of a United States Military Reservation to alter the speed limits are addressed in Transportation Code, §§370.033, 545.354, and 545.358. These decision making authorities are required to follow the speed zone procedures adopted by the department when altering, on the basis of an engineering and traffic study, speed limits on off-system turnpikes or on-system highways within the confines of a military reservation.(3) Guidelines for selecting speed limits. All authorized entities using these procedures should observe the following guidelines when setting speed limits.(A) Speed limits on all roadways should be set based on spot speed studies and the 85th percentile operating speed (see §25.23 of this subchapter). Legal minimum and maximum speeds should establish the boundaries of the speed limits. If an existing roadway section's posted speed limit is to be raised, the roadway's roadside features should be examined to determine if modifications may be necessary to maintain roadside safety.(B) It is appropriate for posted speed limits to be based on the 85th percentile speed, even for those sections of roadway that have an inferred design speed lower than the 85th percentile speed. Posting a roadway's speed limit based on its 85th percentile speed is considered good and typical engineering practice. This practice remains valid, even where the inferred design speed is lower than the resulting posted speed limit. In such situations, the posted speed limit would not be considered excessive or unsafe.(C) Arbitrarily setting lower speed limits at point locations due to a perceived shorter than desirable stopping sight distance is neither effective nor good engineering practice.(D) If a section of roadway has, or is expected to have, a posted speed in excess of the roadway's inferred design speed and a safety concern exists at the location, then appropriate warning or informational signs should be installed to warn or inform drivers of the condition.(i) Slightly shorter than desirable stopping sight distances do not present an unsafe operating condition because of the conservative assumptions made in establishing desirable stopping sight distances.(ii) Any sign is a roadside object that should be installed only when its need is clearly demonstrated.(E) New or reconstructed roadways and roadway sections should be designed to accommodate operating speeds consistent with the roadway's highest anticipated posted speed limit based on the roadway's initial or ultimate function.(c) Factors affecting safe speed.(1) Introduction. This subsection discusses various factors influencing drivers and their perception of the safe speed at which to operate a vehicle. Because so many variables affect the safe operating speed of vehicles, it is not practical to consider each individually. These factors should be considered as a whole and weighed accordingly.(2) Design and physical factors of the roadway.(A) The design and physical factors of the roadway place a definite limitation on the safe operating speed of vehicles. These factors include:(i) horizontal and vertical curves;(ii) hidden driveways and other roadside developments;(iii) high driveway density;(iv) rural residential or developed areas; and(v) lack of striped, improved shoulders.(B) Chapter 5, Sections 2 and 5 of the Procedures for Establishing Speed Zones manual provides the methods that must be used to determine if a curve or an obstruction to sight distance requires an advisory speed restriction.(C) The effects of such factors as lane width, condition of surface, type and width of shoulders, frequency of intersections, and roadside development are not so easily measured. As a general rule, especially on tangents, these factors will be measured on the basis of prevailing speeds as determined by speed checks.(3) The vehicle.(A) The mechanical condition of vehicles and their characteristics for accelerating, decelerating, stopping, and turning affect safe speeds.(B) The body roll angle of different makes of cars and year models of the same make also affects the safe operating speed on curves.(C) Braking capabilities of different vehicles, such as passenger cars, buses, and various truck-trailer combinations, are obviously different, and it would generally not be practical to post safe speeds for each group.(D) Normally, the posted speed will be that for the passenger car.(4) The driver.(A) The selection of speeds to be posted will be aimed at the ability and performance of the average driver.(B) Average driver ability is considered in the form of perception - reaction time in the calculation of critical approach speeds to intersections, crosswalks, and locations with limited sight distance and in determining the posting distance for signs.(5) Traffic.(A) The presence of other vehicles on the highway, including those which may be entering, crossing, turning off, or parked, affects operating speeds.(B) The frequency of pedestrians is an important factor. This is especially true at intersections with limited sight distance and at approaches to crosswalks.(C) The speeds shall be posted for off-peak hour traffic on an average weekday. This will require drivers to adjust their speeds to lower values at times of peak hour traffic at some locations.(6) Weather and visibility.(A) Speeds will normally be selected and posted for good weather conditions and dry pavement. Texas law, however, also provides for the posting of speeds for wet weather conditions.(B) Except in cases where the statewide maximum legal limits are posted, speeds will normally be posted on the basis of daylight speed values determined under good weather conditions.(C) When it can be shown that it is required during wet or inclement weather, a wet weather speed zone may be established by commission minute order.(i) The wet weather speed limit should be posted in addition to the regular posted speed zone.(ii) When appropriately signed, this wet weather speed limit will be effective during wet weather at any time during hours of daylight and darkness.(d) Accident reconstruction speed limits.(1) Transportation Code, §545.3561, gives municipalities and counties the authority to temporarily lower prima facie speed limits at the site of a crash investigation using vehicular accident reconstruction. The municipality or county must use a transportation engineering official with experience establishing speed limits. For a municipality, the authority applies to a highway or part of a highway in the municipality, including a highway in the state highway system. For a county, the authority does not apply to a road or highway in the state highway system.(2) In establishing the speed limit the municipality or county is not required to conduct an engineering and traffic study or comply with other provisions of this subchapter. To set the temporary speed limit the municipality or county must:(A) follow safety guidelines as developed by the department for setting regulatory construction speed limits in work zone areas;(B) provide notice to the department district engineer in the district in which the accident reconstruction is occurring at least 48 hours prior to the speed reduction; and(C) during the time that the accident reconstruction is being conducted, place and maintain temporary speed limit signs that conform to the Texas Manual on Uniform Traffic Control Devices and temporarily conceal all other signs that permit higher speeds and remove the temporary signs and concealments when the accident reconstruction is complete.(3) If a traffic lane will be closed to accommodate the reconstruction investigation the municipality or county must follow all department rules and guidelines on lane closures.(4) The department may remove any temporary speed limit signs or concealments of speed limit signs that remain if the municipality does not remove them and after the department determines that the accident reconstruction is complete.</content><note type="source"><p>Source Note: The provisions of this §25.21 adopted to be effective December 9, 2004, 29 TexReg 11389; amended to be effective March 16, 2006, 31 TexReg 1728; amended to be effective October 16, 2008, 33 TexReg 8557; amended to be effective October 20, 2011, 36 TexReg 6968.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scB/s25.22"><num value="25.22">§25.22</num><heading>Regulatory and Advisory Speeds</heading><content>(a) Application of regulatory and advisory speeds. (1) Introduction. (A) When an engineering and traffic investigation shows that the statutory speed limits are no longer applicable for the existing conditions, the prima facie maximum speed limits should be altered accordingly with a speed zone. (B) The types of speed zones are as follows: (i) regulatory; and (ii) advisory. (C) Advisory speeds may be posted within regulatory speed zones to advise drivers of a safe operating speed. (2) Regulatory speeds. (A) Regulatory speed zones should be applied only to those locations and sections of highways which are not dealt with adequately by the general statewide speed limits, and they should be indicators of the speed limitations imposed by physical and traffic conditions at such locations. (i) Speed limits are determined by specific roadway and traffic conditions. (ii) Speed limits should not be lowered to the extent necessary for a driver to avoid a collision with a pedestrian or other motorist who is entering or crossing the highway in violation of an existing traffic regulation. (B) The following factors affect roadway safety and, therefore, should be considered when establishing speed limits: (i) horizontal and vertical curves; (ii) hidden driveways and other roadside developments; (iii) high driveway density; (iv) crash history along the location; (v) rural residential or developed areas; and (vi) lack of striped, improved shoulders. (3) Advisory speeds. (A) Advisory speeds are the desirable speeds for curves, intersections, or other locations where design standards or physical conditions of the roadway restrict safe operating speeds to values less than the maximum legal speeds or posted regulatory speed limit. (B) The following Figure illustrates the use and application of warning signs with advisory speeds. For additional information on determining advisory speeds, see §25.25 of this subchapter (relating to Application of Advisory Speeds). Attached Graphic(4) Advisory speed sections in regulatory zones. (A) If an advisory speed is located within a regulatory speed zone, it is not necessary to lower the zone speed to conform with the advisory speed. In erecting the signs, care should be taken to not erect a regulatory speed limit sign so near the advisory speed sign that drivers may become confused by two different speed values. (B) An advisory speed within a regulatory speed zone should not be posted for a value higher than the posted speed of the regulatory speed zone. Care should also be taken not to place a regulatory speed sign between an advisory speed sign and the location to which the advisory speed applies. (5) Regulatory versus advisory speeds. (A) Advisory speeds are determined primarily by physical and design characteristics of the roadway. (B) The setting of regulatory speeds, while also affected by physical and design factors, is determined in large part by existing free flow traffic speeds. (C) A commission minute order, or city or county ordinance or resolution is not required for advisory speed zones, but is required for regulatory speed zones. (b) Regulatory speed zones. (1) Introduction. A regulatory speed zone is the application, by commission minute order or city or county ordinance or resolution, of posted legal speed limits to sections of roadway where the numerical values of these special speed limits have been determined through engineering investigations of traffic and physical conditions. (2) Within incorporated cities. (A) The commission has the authority to: (i) alter the speed limits on highways within the corporate limits of cities; or (ii) override a speed limit set by city ordinance or resolution on such highways. (B) The department should make studies and present recommendations to the city for its acceptance and passage of a city ordinance or resolution to establish city speed zones. (3) Highway approaches to incorporated cities. (A) Speed zoning of highway approaches to cities should find its greatest application near the cities where built-up business and residential areas require speeds below the statewide maximum for safe operation. (B) Graduated or buffer zones may be used on approaches to cities to accomplish a gradual reduction of highway speeds to the speed posted at the city limits. (4) Minimum speed limits. (A) The need for minimum speed limits should be determined through an engineering and traffic investigation. When such a speed is justified, it should be regulated in the same manner as maximum speed limits are regulated. (B) Minimum speed limits are generally justified when studies show that slow moving vehicles on any part of a highway consistently impede the normal and reasonable movement of traffic to such an extent that they contribute to unnecessary lane changing or passing maneuvers. (C) The maximum speed limits and the need for minimum speed limits must be determined from the same speed check data. Section 25.23(b) of this subchapter (relating to Determining the 85th Percentile Speed) contains a discussion of the 85th percentile speed and minimum limits. (D) MINIMUM SPEED LIMIT signs (R2-4) shall be displayed in conjunction with and beneath the MAXIMUM SPEED LIMIT signs (R2-1) or as an integral sign (R2-4a). (5) Regulatory speed signs (R2 Series). (A) Signs for regulatory speed zones shall be: (i) from the R2 series as shown in the Texas Manual on Uniform Traffic Control Devices (TMUTCD); and (ii) of the appropriate design, including size, text, and color. (B) At the end of speed zones on conventional highways where the maximum legal rural speeds are permissible, an R2-1 SPEED LIMIT XX sign, or larger size sign showing those limits, should be erected in accordance with the TMUTCD. (C) At the end of speed zones on freeways where the maximum legal rural speeds are permissible, the R2-1 SPEED LIMIT XX sign showing those limits shall be erected. (D) The following Figure illustrates the typical location and frequency of signs for regulatory speed zones. Attached Graphic(i) Distances shown between speed limit signs are examples and may be greater, depending on the results of speed checks. (ii) Posted regulatory speed limits will be based on the 85th percentile, as described in §25.23(b) of this subchapter. (6) Signs within cities. The department may erect and maintain speed limit signs on highway routes within the corporate limits of cities where speed limits based on the results of an engineering and traffic investigation are established. (c) Construction regulatory and advisory speeds. (1) Introduction. Traffic control in work sites should be designed on the assumption that drivers will only reduce their speeds if they clearly perceive a need to do so. Reduced speed zoning should be avoided as much as practicable. (2) Advisory construction speeds. (A) Advisory speed plates (CW13-1) in conjunction with construction warning signs can often be used more appropriately than construction regulatory speed signs. (B) The advisory speed plates are intended to supplement construction warning signs advising drivers of a safe speed to drive through the section signed. See Part 6 of the Texas Manual on Uniform Traffic Control Devices (TMUTCD) for sign detail and typical application diagrams. (C) The advisory speed can be altered as needed by project conditions, and several different advisory speeds can be used for varying conditions throughout the project. (3) Regulatory construction speed zones. (A) Regulatory construction speed limits should be used only for sections of construction projects where speed control is of major importance and enforcement is available. (B) Regulatory construction speed signs (R2-1) should be removed during periods when they are not needed in order to minimize interference with traffic. See Part 6 of the TMUTCD for sign detail. (C) According to Part 6 of the TMUTCD reduced speed zoning should be avoided as much as practicable. Reduced speeds should only be posted in the vicinity of work being performed and not throughout the entire project. Traffic control plan designs should, as much as possible, accommodate the speeds existing prior to construction. These decisions, however, require engineering judgment depending on the nature of the project and other factors which affect the safety of the traveling public and construction workers. (D) On sections of highway under construction, speed studies and other studies normally made in determining speeds to be posted for a regulatory speed zone are not required. In selecting the speeds to be posted, consideration should be given to: (i) safe stopping sight distances; (ii) construction equipment crossings; (iii) the nature of the construction project; and (iv) any other factors which affect the safety of the traveling public and construction workers. (E) Only those speed limits authorized by commission minute order or city or county ordinance or resolutions may be posted. (F) Construction speed zones are automatically canceled when construction is complete. (4) Request for regulatory construction speed zones. If a city desires the commission to establish the zones, then it should send a written request to that district. (5) Advisory speed construction warning plates (CW13-1). (A) The CW13-1 ADVISORY SPEED plate may be used in conjunction with any construction warning sign to indicate the maximum safe speed for passenger cars around a curve or through a hazardous location. It shall not be used in conjunction with any sign other than a construction warning sign, nor shall it be used alone. (B) The CW13-1 plate shall always be mounted on the same post with, and immediately below, the construction warning sign to which it applies. (C) The CW13-1 plate is classed with the construction warning signs because, when used, it is in effect a part of a construction warning sign. (6) Regulatory construction speed limit signs. (A) R2-1 SPEED LIMIT signs shall be used for signing construction speed zones. (B) Speed limit signs shall be erected only for the limits of the section of roadway where speed reduction is necessary for the safe operation of traffic and protection of construction personnel. In most cases, this will involve only a short section of roadway where work is in progress, but in some cases, it will involve partially completed sections extending for some distance. (C) It is imperative that proper speed limits be posted in construction work zones. Improperly posted work zone speed limits adversely affect the flow of traffic by: (i) encouraging driver disrespect for all speed limits; and (ii) endangering the driver who observes an unreasonably low posted speed limit. (D) The reduced speed limits are effective only within the limits where signs are erected, even though the entire length of the project may be covered by commission minute order. The following Figure shows typical signing of a construction speed zone. Attached Graphic(7) Covering or removing temporarily unnecessary reduced speed signs. (A) If the reduced speed limits are not necessary for the safe operation of traffic during certain construction operations or those days and hours the contractor is not working, the regulatory construction speed limit signs should be made inoperative by: (i) moving the signs to the edge of the right of way and facing them away from the roadway; or (ii) covering the signs when the reduced speed limits are not necessary (Care should be taken to delineate the sign post so it does not become an invisible obstacle at night adjacent to the roadway.) (B) Leaving speed limit signs in place when not needed has at least three adverse effects: (i) drivers ignore the signs, and by doing so, they are subject to arrest; (ii) respect for all speed limit signs is lessened; and (iii) the law-abiding driver becomes a traffic hazard by observing the reduced speed. (8) Signs installed by the contractor. (A) Even though a contractor may furnish and/or install speed limit signs on a construction project, the engineer must see that contractors do not erect any signs of their own design with speed limits of their choosing. (B) Except under the immediate direction of the engineer, contractors have no responsibility whatsoever for the design, location, or maintenance of speed limit signs. (d) School speed zones. (1) Introduction. Reduced speed limits should be used for school zones during the hours when children are going to and from school. Usually such school speed zones are only considered for schools located adjacent to highways or visible from highways. Pedestrian crossing activity should be the primary basis for reduced school speed zones. However, irregular traffic and pedestrian movements must also be considered when children are being dropped off and picked up from school. If, for some reason, there is a delay in the installation of a school flasher, other static signs for school zones should be installed as soon as possible after the minute order is approved. (2) Signs. (A) Where the department is responsible for signing school speed zones, the zones shall be signed with a combination of the S4-3 SCHOOL and the R2-1 SPEED LIMIT sign assembly. Flashing beacons shall also be used with the S4-4 WHEN FLASHING sign to identify the periods the school speed limit is in force. One sign, S5-1, could be used, which is a combination of these. The S5-1 SCHOOL SPEED LIMIT XX WHEN FLASHING may be used in place of the S4-3, R2-1, and S4-4. A commission minute order or city or county ordinance or resolution authorizing the reduced speed limit is required prior to use of these signs in school zones. Cities should be allowed to sign school speed zones in accordance with the other options set out in the Texas Manual on Uniform Traffic Control Devices. (B) The S4-3, R2-1 and S4-4 sign assembly with flashers shall be mounted on a permanent type mounting and placed at each zone limit of the section of highway, road, or street through which the speed limit has been reduced. The sign assembly with flashing beacons may be placed off the shoulder of the road, in the median, or overhead to face traffic entering the school speed zone. An illustration of signing for school speed zones is shown in the TMUTCD. Other types of signs used by cities should be similarly located in conformance with the TMUTCD. (3) Intervals of operation. (A) Generally, the zones indicated on the signs should be in effect only during the following specified intervals: (i) from approximately 45 minutes before school opens until classes begin; (ii) from the beginning to the end of the lunch period; and (iii) for a 30 minute period beginning at the close of school. (B) The intervals of operation of the flashing beacons on the School Zone Speed Limit Assembly may be extended or revised for school events as mutually agreed upon by the school district and the entity responsible for the operation of the flashing beacons. In this case, the flashing beacons should only be operated when there is an increase in vehicular activity or pedestrian traffic in and around the roadway associated with the school event. (4) More information. See the Texas Manual on Uniform Traffic Control Devices, Part 7, for more details on school areas. (e) Private road speed zones. (1) Introduction. In addition to setting speeds on highway routes, Transportation Code, §542.006, requires the commission to establish speed limits and erect necessary signing on private roads under certain conditions. (2) Eligibility requirements. To be eligible for speed zoning, a private road must: (A) be located in a subdivision that has a total of 400 or more residents or is adjacent to one or more other subdivisions that, together with the subdivision through which the road runs, have a combined total of 400 or more residents (All subdivisions included in the count must have plats filed in the deed records of a county.); (B) be located outside of an incorporated area; and (C) be patrolled or scheduled to be patrolled by a law enforcement entity. (3) Process initiation. The process for speed zoning private roads must be initiated by petition from the majority of property owners along the road for which zoning is requested. (4) Petitions rejected by the commission. If the commission rejects the petition, then the commission shall hold a public hearing on the advisability of making the speed restrictions applicable. For more details, see Transportation Code, §542.006(c), (d), and (e).</content><note type="source"><p>Source Note: The provisions of this §25.22 adopted to be effective December 9, 2004, 29 TexReg 11389; amended to be effective October 16, 2008, 33 TexReg 8557; amended to be effective October 20, 2011, 36 TexReg 6968.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scB/s25.23"><num value="25.23">§25.23</num><heading>Speed Zone Studies</heading><content>(a) Overview.(1) Engineering and traffic investigation. This section includes information concerning interim speed limits for a new or reconstructed highway and a description of how to conduct an engineering and traffic investigation as the basis for establishing a regulatory speed zone along a roadway. This investigation is commonly called a speed zone study.(2) Interim speed limits for new or reconstructed highways.(A) An interim speed limit for a new or reconstructed highway shall be determined and posted before the highway is opened to traffic.(B) To set an interim speed limit, a traffic and engineering investigation will be conducted.(C) The traffic and engineering investigation will include a review of:(i) the statutory prima facie speed applicable to the highway;(ii) the design speed applicable to the highway; and(iii) a trial run speed study for the highway.(D) To set an interim speed limit at a speed that is less than the prima facie speed applicable to the highway, a commission minute order or a city ordinance setting the interim speed limit is required.(E) Warning signs and advisory speed signs may be used on a highway with an interim speed limit to alert drivers to any hazards.(F) When traffic speeds have stabilized on the highway, an 85th percentile speed study will be conducted under subsection (b) of this section. The interim speed limit will be used on the highway until the maximum speed for the highway is determined following the conclusion of that investigation.(3) Scope of study.(A) The speed zone study should cover the entire length of a potential zone, even though an analysis of the data may later indicate that the actual limits of the area that requires zoning are less than the limits of the potential zone.(B) A speed zone study consists of the following principle areas:(i) determining the 85th percentile speed;(ii) crash study;(iii) developing of strip maps;(iv) speed zone design; and(v) rechecks of speed zones.(b) Determining the 85th percentile speed.(1) General concepts.(A) The maximum speed limits posted as the result of a study should be based primarily on the 85th percentile speed, when adequate speed samples can be secured.(B) Speed checks should be made as quickly as possible, but it is not necessary to check the speed of every car. In many cases, traffic will be much too heavy for the observer to check all cars.(2) Speed checks for new or reconstructed highways. Speed checks on new or reconstructed highway sections should not be performed until it is apparent that the traffic speeds have stabilized.(3) Operation of speed check stations.(A) Normal speed checks should:(i) be made on average week days during off-peak hours under normal traffic conditions;(ii) be made under favorable weather conditions;(iii) include only "free floating" vehicles (see subparagraph (B) of this paragraph);(iv) include a minimum of 125 cars in each direction at each station; and(v) be discontinued after two hours using a radar or four hours if performed by a traffic counter that classifies vehicles by type, even if 125 cars have not been timed.(B) The vehicles checked should be only those in which drivers are choosing their own speed ("free floating").(i) When a line of vehicles moving closely behind each other passes the speed check station, only the speed of the first vehicle should be checked, since the other drivers may not be choosing their own speed.(ii) Cars involved in passing or turning maneuvers should not be checked, because they are probably driving at an abnormal rate of speed.(C) Trucks and buses should be recorded separately and should not be included as part of the 125-car total.(4) Location of speed check stations.(A) A complete picture of speeds in an area can only be obtained through the proper location of speed check stations. Ideally, speed checks at an infinite number of locations would be desirable. However, since this is not practical, speed check stations must be strategically located to show all the important changes in prevailing speeds.(B) In urban areas and on approaches to cities, speed check stations:(i) should generally be located at intervals of 0.25 mile or less if necessary to insure an accurate picture of the speed pattern;(ii) should be located midway between signals or 0.2 miles from any signal, whichever is less, to ensure an accurate representation of speed patterns;(iii) should take into account the locality and the uniformity of physical and traffic conditions;(iv) may be determined by trial runs through the area if volumes are too low or if a recheck of speeds is all that is needed; and(v) should be checked midway between interchanges on the main lanes of expressways and freeways.(C) In rural areas, speed check stations:(i) may be at intervals greater than 0.25 mile, as long as the general speed pattern is followed;(ii) may only be necessary at each end and the middle point if the characteristics of the roadway are consistent throughout the entire section; and(iii) may be determined by trial runs through the area if the characteristics of the roadway are consistent throughout the entire section and a speed check in that section indicates that 125 vehicles cannot be checked in the two hours using a radar or four hours if performed by a traffic counter that classifies vehicles by type.(5) Measuring speeds.(A) Radar speed meters which operate on the radar principle are normally used for making speed checks. These devices operate from the power of an automobile battery and give direct readings of vehicle speeds in miles per hour which are accurate to within 2 miles per hour.(B) New technologies may be used in determining vehicular speeds for use in calculating 85th percentile speed if the measured speeds are accurate to within 2 miles per hour and the gap between vehicles is 3 seconds or greater. Examples of new technologies are counter-classifiers with the capability of classifying vehicles, determining vehicular speeds, and differentiating the gap between vehicles. These devices may include video imaging, tube counters, magnetic counters, inductive counters, etc.(c) Schools.(1) A regular speed zone must not change within the limits of a school speed zone since posting of a regular speed zone sign at the point of change would prematurely terminate the school speed zone. This is due to the fact that speed limits remain fixed until a revised limit is encountered.(2) Speed checks provide a sound basis for selecting the proper speed limits for school zones. While it is not common practice to set speed limits significantly lower than the 85th percentile speed for regulatory speed zones, exceptions to this practice are often found at school zones.(3) Factual studies, reason, and sound engineering judgment should govern the final decision on the maximum deviation from the 85th percentile speed which will provide a reasonable and prudent speed limit.(4) It is not advisable to set a school speed limit above 35 miles per hour in either rural or urban areas. Lower school speed limits should be considered when the 85th percentile speed is below 50 miles per hour.(5) When the results of a speed study indicate an 85th percentile speed at or below 50 miles per hour, the reduced school speed limit should not be more than 15 miles per hour below the 85th percentile speed or normal posted speed limits. If the 85th percentile speed is 55 miles per hour, the reduced school speed limit should be 20 miles per hour below the 85th percentile speed. Any roadway with an 85th percentile speed greater than 55 miles per hour requires a buffer zone to transition down to a 35 mile per hour speed limit.(6) Operating School Buffer Zones With School Zones.(A) Establishing buffer zones. In some cases, it may be appropriate to operate the buffer zone during the same time periods that the school speed zone operates. This will allow motorists to travel at the higher posted speeds through both zones when the slower speeds are not necessary. An example of this would be highway with a regular posted speed limit of 70 mph and a posted school zone speed limit of 35 mph. It would be appropriate to have a school transition speed zone of 55 mph that flashes with the 35 mph school zone on either side. This design makes for better public relations because people are not encouraged to violate or disrespect the law when driving through permanently fixed transition zones that are in affect 24 hours a day. Other situations may not lend themselves to such transitions zones, and should be left up to engineering judgment.(B) Sign design.(i) The basic sign design for a school transition speed limit shall be the same as that used for a regular school zone speed limit sign.(ii) Where the department is responsible for signing school zone speeds and school transition speed zones, the "School Speed Limit XX When Flashing" signs shall be used.(d) Speed zone design.(1) Zone length.(A) The length of any section of zone set for a particular speed should be as long as possible and still be consistent with the 85th percentile speeds. These zone lengths should be shown on the strip map in miles to three decimal places. Where graduated zones on the approach to the city are at locations where speeds fluctuate, the speed zone should generally be 0.2 mile or more.(B) School zones are the exception to this rule and may be as short as reasonable in urban areas, depending on approach speeds.(i) School zones in urban areas where speeds are 30 miles per hour or less may have school zones as short as 200 to 300 feet.(ii) Where speeds exceed 40 miles per hour, the minimum school zone length should be 1,000 feet to allow for normal deceleration.(2) Transitions.(A) The change in speed between two adjacent zones should not normally be greater than 15 miles per hour, because the change in speed would be too abrupt for driver observance.(B) If adjacent 85th percentile speeds show an abrupt change of more than 15 miles per hour, a transition zone of approximately 0.2 mile or more in length should be used.(3) Urban areas. Texas law states that the maximum speed limit through an urban district is 30 miles per hour, unless zoned otherwise by proper authority. A reasonable and prudent speed limit should be determined and negotiated with the city and set by city ordinance or resolution or by commission minute order. A section of highway in this category should be speed zoned by commission minute order only if all negotiations with the city have proved unsuccessful.(4) Directional differences.(A) The 85th percentile speeds may differ considerably by direction at some locations. Such conditions are usually caused by relatively heavy development on one side of the road. Next to the development, motorists will tend to drive slower because of interference from traffic to and from the development.(B) On divided highways, the zone speeds should conform to the 85th percentile speed even though this may require zoning for different speeds in opposite directions.(C) On undivided roadways, the zones in opposite directions should be the same for enforcement purposes.(5) Variation from 85th percentile.(A) The posted speed selected is the nearest value ending in 5 or 0. The final speed limit may be lowered or raised by as much as 5 miles per hour from the 85th percentile speed or trial-run speed (performed if 125 cars cannot be checked during the two or four hour speed check) based on the professional judgment of the supervising engineer. Only under special conditions would the zone speed vary further from the 85th percentile. Explanations of such conditions follow.(i) Different results at adjacent speed check stations. If the 85th percentile speeds for adjacent speed check stations are approximately the same, they may be averaged to determine the zone speed. Any 85th percentile speed should not be included in such averages if it varies more than 7 miles per hour from the speed derived from the average.(ii) Crash rate greater than average. On a section of highway having a crash rate greater than the statewide average crash rate for the same type of roadway section, the zone speed may be as much as 12 miles per hour lower than the 85th percentile speed. This should be considered more as an exception than as a rule, and should be done only when enforcement agencies will assure a degree of enforcement that will make the speed zone effective.(iii) Light traffic volumes. At locations where traffic volumes are light and 125 cars cannot be checked in the two or four hours that the speed check station is operated, the 85th percentile speed may not be reliable. Trial runs need to be made and documented in the study.(iv) Legislative or congressional action. Notwithstanding the volume of traffic, if legislative or congressional action results in the immediate increase in statewide maximum legal speed limits, then reasonable and prudent speed zones may be established by trial runs and engineering judgment in lieu of other speed check procedures provided in this subchapter. Speed zones established through this process should be rechecked in accordance with the procedure in subsection (e) of this section.(v) Additional roadway factors. The posted speed limit may be reduced by as much as 10 miles per hour (12 miles per hour for locations with crash rates higher than the statewide average) below the 85th percentile speed or trial-run speed (performed if 125 cars cannot be checked during the two or four hour speed check) based on sound and generally accepted engineering judgment that includes consideration of the following factors:(I) narrow roadway pavement widths - 20 feet or less, for example;(II) horizontal and vertical curves - possible limited sight distance;(III) hidden driveways and other developments - possible limited sight distance;(IV) high driveway density - the higher the number of driveways, the higher the potential for encountering entering and turning vehicles;(V) crash history along the location;(VI) rural residential or developed areas - higher potential for pedestrian and bicycle traffic; and(VII) lack of striped, improved shoulders - constricted lateral movement.(B) Local public opinion may also be considered on farm-to-market and ranch-to-market roads without improved shoulders (Transportation Code, §545.3535(b)).(C) The final decision on the amount of variation from the 85th percentile speed for a specific roadway should be based on the engineering judgment of the supervising engineer.(D) Speed limits should not be posted more than 10 miles per hour (12 miles per hour for locations with crash rates higher than the statewide average) below the 85th percentile or trial-run speed (performed if 125 cars cannot be checked during the two or four hour speed check) since unreasonably low speed limits have not been shown to be an effective way to control speeding. Allowing too great a variation would risk losing motorist respect for speed limits and traffic control devices.(6) Blanket lowering of maximum speed limits. Blanket lowering of speed limits may be justified to avoid non-compliance with direct requests from the federal government to lower the statewide maximum speed limit.(7) Trial runs.(A) For the trial run, an average passenger vehicle that is representative of most vehicles on the highway and a reasonably competent driver should be selected.(B) After the 85th percentile speeds and zone lengths have been selected, several trial runs should be made through the area in both directions driving at the selected speeds. This should show any irregularities in the zoning which need correction.(8) Location of regulatory speed limit signs.(A) Speed zones are legally described to the nearest thousandth of a mile (5 feet). Regulatory speed limit signs should be located within approximately 5 feet of the actual reference marker or milepoint defined in the minute order or city ordinance or resolution.(B) The locations of regulatory speed zones tied to speed changes should be examined carefully to ensure that signs can be erected within the 5 feet variation. If adherence to the 5 feet variation is not possible, the speed zone sign should be placed as close to the actual location defined in the minute order or city ordinance or resolution as practical. For example, if the reference marker or milepoint is located at an intersection, the regulatory speed limit signs should be located in accordance with standard procedures for placement of departure signing.(e) Rechecks of speed zones.(1) Introduction.(A) The basic data on which speed zones are established are subject to change when conditions change, and established speed zones must not be considered permanent.(B) Physical improvements to the roadway, increased roadside development, and heavy increases in traffic volumes justify a recheck of speeds to determine whether the 85th percentile speed has changed enough to require a change in the zone speeds.(2) Frequency of rechecks.(A) Periodic rechecks of all zones are desirable at intervals of about three to five years in urban areas regardless of roadway improvements, roadside developments, or increases in traffic volumes. Trial runs or rechecks of every third speed check station may be made.(B) Rechecks in rural areas are desirable at intervals of five to ten years. In many instances, trial runs may be sufficient.(C) If the speed checks or trial runs indicate a need for revision of the zone, rechecks of speeds should be made at all speed check stations for that particular section.(f) Environmental speed limits.(1) Existing environmental speed limits. Existing environmental speed limits created at the request of the Texas Commission on Environmental Quality (TCEQ) may be retained on the state highway system until such time as:(A) the TCEQ advises the department in writing that the speed limit is unnecessary; and(B) a speed study performed for the area finds that the existing environmental speed zone is not reflective of the 85th percentile speed as determined by procedures detailed in this subchapter.(2) New environmental speed limits prohibited. As per Transportation Code, §545.353(j), no new environmental speed limits may be created on the state highway system.</content><note type="source"><p>Source Note: The provisions of this §25.23 adopted to be effective December 9, 2004, 29 TexReg 11389; amended to be effective March 16, 2006, 31 TexReg 1728; amended to be effective May 20, 2010, 35 TexReg 3859; amended to be effective October 20, 2011, 36 TexReg 6968.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scB/s25.24"><num value="25.24">§25.24</num><heading>Speed Zone Approval</heading><content>(a) State highway system. Speed zones on the state highway system and on turnpikes under the department's authority, may be set by commission minute order or by the city, depending on the circumstance. Attached Graphic(b) Regional Mobility Authorities. Speed zones on turnpikes under the control of a Regional Mobility Authority (RMA) may be set by order of the RMA board or by a city through which the turnpike passes. Attached Graphic(c) Regional Tollway Authorities. Speed zones on turnpikes under the control of a Regional Tollway Authority (RTA) may be set by order of the RTA board or by a city through which the turnpike passes. Attached Graphic</content><note type="source"><p>Source Note: The provisions of this §25.24 adopted to be effective December 9, 2004, 29 TexReg 11389; amended to be effective October 20, 2011, 36 TexReg 6968.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scB/s25.25"><num value="25.25">§25.25</num><heading>Application of Advisory Speeds</heading><content>(a) Overview. (1) Introduction. A discussion of the following types of advisory speeds is included in this section: (A) curves and turns; (B) intersections; (C) narrow and one-lane bridges; (D) descending grades of six percent or greater; (E) dips; and (F) exit ramps. (2) Advisory speed sign posting. (A) The W13-1 ADVISORY SPEED sign may be used in conjunction with any warning sign to indicate the maximum safe speed for passenger cars around a curve or through a hazardous location. It shall not be used in conjunction with any sign other than a warning sign, nor shall it be used alone. (B) The W13-1 sign shall always be mounted on the same post and immediately below the warning sign to which it applies. (C) The following Figure shows typical warning and advisory speed signing applications.Attached Graphic(b) Curves and turns. (1) Horizontal curves having a safe operating speed of 5 miles per hour or more below the posted maximum speed limit should be signed with advisory speed limits. (2) Vertical curves may also be signed with advisory speed limits. (3) The method described in Chapter 5, Section 2 of the Procedures for Establishing Speed Zones manual will be used to determine the advisory speed to be posted for vertical curves. (c) Intersections. (1) Introduction. Advisory zones may be posted at: (A) intersections such as traffic circles designed for an operating speed less than the speed of the approaches; and (B) intersections with restricted sight distances which require a reduction in speed for safe operation. (2) View obstructions. Trial runs should be conducted to determine the safe and reasonable speed for the area. For intersections having view obstructions, this speed may be posted as an advisory speed below a warning sign to warn motorists of the limited sight distance. (d) Narrow and one-lane bridges. (1) Introduction. (A) The following bridges may require advisory speeds: (i) narrow bridges with clear width between curbs less than 18 feet, but more than 16 feet; and (ii) one lane bridges with clear width between curbs of 16 feet or less. (B) Advisory speed zones should be applied for such structures when horizontal or vertical sight distance restrictions on the approaches require a reduction of approach speeds for safe operation. (C) Advisory speeds of this type are intended to eliminate the element of surprise. (2) Placement of signs. (A) The normal location of the W5-2 NARROW BRIDGE or W5-3 ONE LANE BRIDGE signs, under which a W13-1 ADVISORY SPEED sign would be mounted, is specified in Table 2C-4 of the latest edition of the Texas Manual on Uniform Traffic Control Devices. (B) The signs may be located at a greater distance in advance of the bridge if necessary to allow sufficient time and distance for deceleration and may be repeated at the point where the structure first comes into view. (e) Descending grades of six percent or greater. (1) Introduction. The posting of advisory speed may be prudent where vehicles may attain a speed in excess of that required: (A) for a safe stopping distance; or (B) for safe travel around curves at the bottom or within the limits of the grade. (2) Determining minimum sight distances. The minimum horizontal and vertical sight distances on descending grades of 6% or greater should be determined either by field measurements or by calculations from the plans. (3) Calculation. Using the minimum sight distance as the safe stopping distance, the critical speed should be calculated from the following formula. Attached Graphic(4) If a curve is involved. (A) If a curve is within the limits of or at the bottom of such a grade, the advisory speed for the curve should be determined by the method described in Chapter 5, Section 2 of the Procedures for Establishing Speed Zones manual. (B) The speed to be posted should be the lower of the two speeds found for providing a safe stopping distance and that for safe travel around the curve. (f) Dips and exit ramps. (1) Dips. (A) An advisory speed may be desirable where a depression in the road profile is sufficiently abrupt to: (i) create a hazardous condition; (ii) cause discomfort to passengers; (iii) cause a shifting in cargo; or (iv) deflect a vehicle from its true course when crossed at speeds prevailing on the approaches. (B) The speed to be posted for dips should be determined by trial runs. It should be the highest speed that will enable a vehicle to travel over the dip: (i) without considerable discomfort to passengers; (ii) without causing a shifting of cargo; or (iii) without causing a deflection of a vehicle from its true course. (2) Exit ramps. The Exit Speed or Ramp Speed signs (W13-2 and W13-3) are intended for use where engineering investigations of roadway, geometric, or operating conditions show the necessity of advising drivers of the maximum recommended speed on a ramp.</content><note type="source"><p>Source Note: The provisions of this §25.25 adopted to be effective February 17, 2000, 25 TexReg 1151; amended to be effective December 9, 2004, 29 TexReg 11389; amended to be effective March 16, 2006, 31 TexReg 1728; amended to be effective October 16, 2008, 33 TexReg 8557.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scB/s25.26"><num value="25.26">§25.26</num><heading>Provisional Traffic and Engineering Investigation Requirements</heading><content>(a) This section applies only to increasing the speed limit within an existing speed zone from 70 miles per hour to 75 miles per hour, as authorized by the legislature.(b) The speed zone study necessary for increasing the speed limit from 70 to 75 miles per hour may, at the sole discretion of the department, be limited to the determination of the 85th percentile speed at one or more speed check locations within the established speed zone. Because the boundaries of the speed zone have been established for the 70 mile per hour zone, a strip map is not required for the increase.(c) The provisions of this subchapter related to establishing a speed limit apply to an action under this section unless such a provision conflicts with this section, in which event this section controls to the extent of the conflict.</content><note type="source"><p>Source Note: The provisions of this §25.26 adopted to be effective October 20, 2011, 36 TexReg 6968.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scB/s25.27"><num value="25.27">§25.27</num><heading>Variable Speed Limits</heading><content>(a) Purpose. This section describes the criteria governing the authority to set variable speed limits under Transportation Code, §545.353(k).(b) Criteria for variable speed limits. A district engineer may temporarily lower the established prima facie speed limits on a part of the state highway system in the engineer's district as necessary for the safe and orderly movement of traffic because of traffic volume, adverse weather conditions, highway construction work zones, or traffic crashes and incidents. A speed limit lowered under this section:(1) must be based on an engineering and traffic investigation described by subsection (c) of this section; and(2) will be lowered only by five miles per hour or ten miles per hour below the prima facie speed limit.(c) Engineering and traffic investigation. The engineering and traffic investigation required to establish a speed limit under this section may include the determination of a spot speed within the affected area, speed-over-distance readings from automated field technology, sight distance during inclement weather, or traffic flow obtained by either field investigation or automated technology. An 85th percentile speed study is not required for establishing a variable speed limit.(d) Sign placement. A speed limit established under this section is effective only if a sign indicating the change in the speed limit is displayed between 500 and 1,000 feet before the point at which the speed limit takes effect and only when the speed limit is posted. A sign will also be posted at the point where the speed limit takes effect, and at other locations that the district engineer determines are necessary to comply with the Texas Manual on Uniform Traffic Control Devices. Notice of a speed limit established under this section may be displayed using a stationary or portable changeable message sign, as defined by Transportation Code, §544.013. The department may use an electronic sign that is capable of displaying more than one message for posting a reduced speed limit.(e) Documentation of lowered variable speed limits. The department will keep an official record of all changes made to prima facie speed limit on an affected roadway under this section that includes the date, time, and duration of the lowered speed limit.(f) Coordination. The department will coordinate with state and local law enforcement agencies regarding the locations and amount of the reductions under this section. The department will make records maintained under subsection (e) of this section available to state and local law enforcement entities in order to support speed limit enforcement.(g) Prohibited use. Transportation Code, §545.353(k), prohibits the lowering of an established prima facie speed limit under this section to divert traffic to a toll road for the purpose of increasing revenue from toll charges.</content><note type="source"><p>Source Note: The provisions of this §25.27 adopted to be effective October 16, 2024, 49 TexReg 8406.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scB/s25.28"><num value="25.28">§25.28</num><heading>Reducing Speeds on Roadways with a Greater Than Average Crash Rate</heading><content>(a) This section applies only to decreasing the speed limit within an existing speed zone on the state highway system if the crash rate in the section of the roadway is greater than the statewide average crash rate for similar roadways.(b) The speed zone study that is necessary for reducing the speed limit is limited to the determination of the 85th percentile speed or trial run speed at one or more speed check locations within the established speed zone and consideration of the following factors that are applicable:(1) narrow roadway pavement;(2) horizontal and vertical curves;(3) high driveway density;(4) lack of striped, improved shoulders; and(5) crash history within the speed zone.(c) The speed limit posted under this section may be as much as 12 miles per hour below the 85th percentile speed or trial-run speed that was used to determine the speed limit that is being reduced. The final decision on the amount of the variation should be based on the engineering judgment of the supervising engineer.(d) The provisions of this subchapter related to establishing a speed limit apply to an action under this section unless such a provision conflicts with this section, in which event this section controls to the extent of conflict.(e) A strip map is not required under this section.</content><note type="source"><p>Source Note: The provisions of this §25.28 adopted to be effective April 16, 2015, 40 TexReg 2099.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c25/scC"><num value="C">SUBCHAPTER C</num><heading>CONGESTION MITIGATION FACILITIES</heading><section identifier="/us/state/tx/tac/t43/p1/c25/scC/s25.40"><num value="25.40">§25.40</num><heading>Purpose</heading><content>Transportation Code, Subchapter F, Chapter 224, authorizes the Texas Department of Transportation (the department) to finance, design, construct, operate, or maintain one or more lanes on a state highway facility as high occupancy vehicle (HOV) or exclusive lanes and to charge a toll for these lanes. The department may also enter into agreements with various transportation entities for the design, construction, operation, and maintenance of HOV and toll lanes. In order to support the construction of infrastructure and traffic operation strategies designed to decrease traffic congestion, improve air quality, improve safety, and enhance the use of existing highways, this subchapter prescribes requirements for the designation, funding, and operation of HOV lanes, toll lanes, and exclusive lanes on the state highway system.</content><note type="source"><p>Source Note: The provisions of this §25.40 adopted to be effective September 19, 2002, 27 TexReg 8778; amended to be effective May 20, 2004, 29 TexReg 4930.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scC/s25.41"><num value="25.41">§25.41</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--The Texas Transportation Commission.(2) Department--The Texas Department of Transportation.(3) Exclusive lane--A lane of a highway or segment of a highway on the state highway system the use of which is restricted to one or more specific classifications of motor vehicle.(4) Executive director--The executive director of the department, or a designee not below the level of district engineer, division director, or office director.(5) High occupancy vehicle (HOV)--A bus or other motorized passenger vehicle occupied by a specified minimum number of passengers.(6) High occupancy vehicle (HOV) lane--One or more lanes of a highway or an entire highway where designated high occupancy vehicles are given at all times, or at regularly scheduled times, a priority or preference over some or all other vehicles moving in the general stream of highway traffic.(7) High occupancy toll (HOT) lane--An HOV lane that may be used by vehicles carrying fewer than the specified minimum number of passengers, or other eligible vehicles, that pay a toll for the right to do so.(8) HOV Authority--A transit authority created under Transportation Code, Chapter 451, 452, or 453; a regional mobility authority created under Transportation Code, Chapter 361 or 370; a municipality; a transportation corporation; or a coordinated county transportation authority created under Transportation Code, Chapter 460.(9) Level of Service C--A measure of highway congestion as defined by the latest edition of the Highway Capacity Manual published by the United States Transportation Research Board.(10) Low-emission vehicle--A vehicle that has been certified by regulations of the federal Environmental Protection Agency to meet the Tier II Bin 1 or Bin 2 emission level established for that make and model year.(11) Seriously degraded--When a lane or lanes fail to achieve at least a level of Service C for 90% of the time over a consecutive 90-day period during weekday peak travel periods.(12) Toll entity--A regional tollway authority created under Transportation Code, Chapter 366; a transit authority created under Transportation Code, Chapter 451, 452, or 453; a regional mobility authority created under Transportation Code, Chapter 361 or 370; a county acting under Transportation Code, Chapter 284; or a transportation corporation.(13) Toll lane--A lane or lanes of the state highway system, including an HOV lane, on which a toll has been authorized by order of the commission under Transportation Code, Chapter 224, Subchapter F.(14) Transportation corporation--A corporation created by the commission under §§15.80 - 15.93 of this title (relating to Transportation Corporations).</content><note type="source"><p>Source Note: The provisions of this §25.41 adopted to be effective September 19, 2002, 27 TexReg 8778; amended to be effective May 20, 2004, 29 TexReg 4930; amended to be effective March 16, 2006, 31 TexReg 1729.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scC/s25.42"><num value="25.42">§25.42</num><heading>Development of HOV, Exclusive, and Toll Lanes</heading><content>(a) Criteria. The department may expend funds to perform studies and analyses of project alternatives that include the development of an HOV (including a HOT lane), toll, or exclusive lane on the state highway system for the purposes of congestion mitigation as described under this subchapter. In performing studies and project planning, the department will consider whether a potential HOV, toll, or exclusive lane will:(1) maximize the effectiveness of existing roadways;(2) increase the number of persons moved on a roadway;(3) improve transit operating efficiency;(4) limit any negative effect on general purpose lanes;(5) provide connectivity to or enhance the effectiveness of existing HOV, toll, or exclusive lanes;(6) enhance the effectiveness of a conforming metropolitan transportation plan or transportation improvement program for a metropolitan planning area that includes a geographic area that is classified as nonattainment, near nonattainment, or maintenance for air quality;(7) enhance the effectiveness of an approved congestion management plan for a geographic area that has been designated as a transportation management area; and(8) provide a more cost-effective alternative to capacity improvements for a given corridor.(b) Project development. After completion of all necessary studies and project planning, the department will submit a proposal to the commission requesting the designation of one or more lanes on a state highway facility as dedicated HOV, toll, or exclusive lanes, and requesting approval to design and construct an HOV, toll, or exclusive lane project. In determining whether to make a designation and grant approval, the commission will consider the criteria prescribed in subsection (a) of this section. As part of the designation and approval process, the commission will consider the studies and planning documents prepared by the department under subsection (a) of this section.</content><note type="source"><p>Source Note: The provisions of this §25.42 adopted to be effective September 19, 2002, 27 TexReg 8778; amended to be effective May 20, 2004, 29 TexReg 4930.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scC/s25.43"><num value="25.43">§25.43</num><heading>Operation of HOV and Toll Lanes</heading><content>(a) Eligibility requirements. The executive director, in cooperation with an HOV authority with which the department contracts under this subchapter, will establish eligibility requirements for vehicles authorized to use HOV lanes on the state highway system, including eligible vehicle classes and occupancy requirements. These requirements may be established based on the type and location of the transportation facility and on the time of day. In establishing these requirements, the executive director will consider:(1) the level of service on the HOV lanes;(2) the level of service on general purpose lanes that are part of the highway facility on which HOV lanes are located or are proposed to be located;(3) the consistency of the requirements with eligibility requirements established for any connecting facilities;(4) the availability of alternative routes and the level of service on those routes;(5) the effect of the requirements on transit operating efficiency; and(6) the effect of the requirements on roadway safety and air quality.(b) Toll charges.(1) The commission by minute order, or its designee, will establish charges for the use of toll lanes or the commission will authorize an HOV authority or toll entity with which the department contracts to set the amount of toll charges. Variable toll charges may be established based on severity of congestion, time of day, classification of vehicle, type and location of facility, and vehicle occupancy. In establishing toll charges, the commission or its designee will consider the results of traffic and revenue studies and operational plans prepared by the department or an HOV authority or toll entity with which the department contracts under this subchapter, and the criteria prescribed in subsection (a) of this section.(2) A governmental entity that contributes substantial funding for a toll lane project may recommend a toll charge to be set by commission minute order or its designee. The commission or its designee will approve the recommended toll charge if the commission, or its designee, determines that the charge:(A) is consistent with the criteria described in paragraph (1) of this subsection; and(B) complies with the requirements of any trust agreement, indenture, or other instrument securing debt financing for the project.(c) Administrative fee. The commission by minute order, or an HOV authority or toll entity with which the department contracts by order of its governing body, will establish an administrative fee charged to owners of vehicles that use toll lanes established under this subchapter without paying the proper toll. In establishing an administrative fee, the commission will consider:(1) the estimated cost to the department to collect unpaid tolls on tolled lanes on the state highway system; and(2) the existing or estimated violation rate on tolled lanes on the state highway system.(d) Operating agreements. The department may enter into an agreement with an HOV authority or toll entity to operate one or more HOV or toll lanes. The agreement will contain terms necessary for the safe and efficient operation of the HOV or toll lane, including, but not limited to:(1) an operations plan that includes occupancy requirements, hours of operation, and provisions for law enforcement and incident management;(2) responsibilities for maintenance of the facilities;(3) insurance and audit requirements;(4) responsibilities for setting toll charges and administrative fees;(5) indemnification of the department; and(6) distribution of revenue between the department and the HOV authority or toll entity.</content><note type="source"><p>Source Note: The provisions of this §25.43 adopted to be effective September 19, 2002, 27 TexReg 8778; amended to be effective May 20, 2004, 29 TexReg 4930.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scC/s25.44"><num value="25.44">§25.44</num><heading>Use of HOV Lanes by Motorcycles and Low-Emissions Vehicles</heading><content>(a) The department may allow motorcycles and low-emissions vehicles to use HOV lanes without meeting the minimum occupancy requirements of the facility.(b) In determining whether to allow these vehicles to use an HOV lane or lanes without meeting the minimum occupancy requirements, the department will consider the ability of the HOV lane or lanes to absorb the additional traffic volume without suffering adverse operational impacts.(c) The department may suspend or rescind this authorization if:(1) the department believes that the operation of the HOV lane or lanes has become, or is in danger of becoming, seriously degraded; or(2) the use of an HOV facility by these vehicles without meeting the minimum occupancy requirement would jeopardize or impair the state's ability to receive or use federal funds.</content><note type="source"><p>Source Note: The provisions of this §25.44 adopted to be effective May 20, 2004, 29 TexReg 4930.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scC/s25.45"><num value="25.45">§25.45</num><heading>Exclusive Lanes</heading><content>(a) The commission by minute order may designate, and the department may finance, design, construct, operate, or maintain an exclusive lane or lanes on a portion of the state highway system.(b) In designating an exclusive lane, the commission must find that such a designation will improve transportation safety, mobility, or air quality.(c) Before designating an exclusive lane, there must be:(1) two or more lanes adjacent to the proposed exclusive lane for the use of other vehicles; or(2) a multi-lane facility adjacent to the proposed exclusive lane for the use of other vehicles.(d) The department may charge a toll for the use of an exclusive lane if the toll is expected to enhance safety or mobility, improve congestion or air quality, and:(1) the lanes or multi-lane facility adjacent to the exclusive lane are also tolled; or(2) a vehicle authorized to use the tolled exclusive lane is authorized to use non-tolled adjacent lanes or an adjacent non-tolled multi-lane facility.(e) Lanes that are adjacent to an exclusive lane may be designated as exclusive lanes themselves for differing classes of motor vehicles.(f) The department may enter into an agreement with a regional mobility authority created under Transportation Code, Chapter 361 or 370, a county acting under Transportation Code, Chapter 282, or a transportation corporation to design, construct, operate, or maintain a toll exclusive lane created under this section.</content><note type="source"><p>Source Note: The provisions of this §25.45 adopted to be effective May 20, 2004, 29 TexReg 4930.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scC/s25.46"><num value="25.46">§25.46</num><heading>Traffic Control Devices</heading><content>(a) The department is responsible for the installation and maintenance of all official traffic control devices necessary to implement and ensure compliance with lane restrictions designated under this subchapter.(b) If the department enters into a contract with an entity to operate a toll lane under this subchapter, the department may authorize the contracted entity to erect and maintain the necessary traffic control devices.(c) All traffic control devices installed under this subchapter must be in compliance with the Texas Manual on Uniform Traffic Control Devices.(d) Motorists are required to obey traffic control devices installed under this subchapter as required under Transportation Code, §544.004.</content><note type="source"><p>Source Note: The provisions of this §25.46 adopted to be effective May 20, 2004, 29 TexReg 4930.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scC/s25.47"><num value="25.47">§25.47</num><heading>Police and Emergency Vehicles</heading><content>A police or emergency vehicle as defined by Transportation Code, §541.201, may use any lane of the state highway system regardless of restrictions imposed under this subchapter.</content><note type="source"><p>Source Note: The provisions of this §25.47 adopted to be effective May 20, 2004, 29 TexReg 4930.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c25/scD"><num value="D">SUBCHAPTER D</num><heading>BICYCLE ROAD USE</heading><section identifier="/us/state/tx/tac/t43/p1/c25/scD/s25.50"><num value="25.50">§25.50</num><heading>Purpose</heading><content>Transportation Code, §201.902, requires the department to adopt rules regarding bicycle road use on the state highway system. This subchapter prescribes the policies and procedures governing enhancement of the state highway system for bicycle use.</content><note type="source"><p>Source Note: The provisions of this §25.50 adopted to be effective February 22, 1995, 20 TexReg 965; amended to be effective May 15, 2008, 33 TexReg 3776.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scD/s25.51"><num value="25.51">§25.51</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Bicycle Advisory Committee--The committee, established under §1.85 of this title (relating to department advisory committees), that advises the commission concerning bicycle issues.(2) Department--The Texas Department of Transportation.(3) District--One of 25 geographical areas, managed by a district engineer, in which the department conducts its primary work activities.(4) District bicycle coordinator--A person designated by the department to coordinate highway projects and policies of the department that might affect bicycle use on the state highway system at the district level.(5) District Engineer--The chief administrative officer in charge of a district of the department.(6) State bicycle coordinator--A person designated by the department to coordinate highway projects and policies of the department that might affect bicycle use on the state highway system at the state level.</content><note type="source"><p>Source Note: The provisions of this §25.51 adopted to be effective February 22, 1995, 20 TexReg 965; amended to be effective May 15, 2008, 33 TexReg 3776.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scD/s25.52"><num value="25.52">§25.52</num><heading>State and District Bicycle Coordinators</heading><content>(a) The state bicycle coordinator will:(1) coordinate the consideration and integration of bicycling into the development or revision of regular, routine operating policies, plans and programs of the department;(2) identify the needs and concerns of bicyclists by operating as a central contact for bicyclists;(3) represent the department on bicycle issues at the state and national level to the Federal Highway Administration, the U.S. Department of Transportation, and other states;(4) receive and respond to letters, telephone calls, requests, inquiries, and visits from people concerning a wide variety of bicycle related issues; and(5) act as the department liaison with the Bicycle Advisory Committee.(b) The district bicycle coordinators will:(1) coordinate the consideration and integration of bicycling into the development or revision of regular, routine operating policies, plans and programs of the department at the district level;(2) identify the needs and concerns of bicyclists by operating as a central contact for the district;(3) receive and respond to letters, telephone calls, requests, inquiries, and visits from people within the district concerning a wide variety of bicycle related issues;(4) record comments, concerns, and needs related to bicycling, and convey this information to the district staff for planning purposes;(5) speak to bicycle groups concerning bicycle related issues upon request;(6) coordinate the training of the district's design section in bicycle accommodation; and(7) coordinate with and keep the state bicycle coordinator informed about bicycle activity in the district.</content><note type="source"><p>Source Note: The provisions of this §25.52 adopted to be effective February 22, 1995, 20 TexReg 965.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scD/s25.53"><num value="25.53">§25.53</num><heading>Bicycle Use on the State Highways</heading><content>The department will commence consideration of bicycle use on the state highway system by:(1) seeking comments on policies and certain highway improvement projects from the Bicycle Advisory Committee;(2) taking bicycle accommodation into consideration during the planning and implementation of all construction and rehabilitation projects; and(3) compiling research related to bicycle hazards, and developing guidelines for prioritizing maintenance that takes these hazards into consideration.</content><note type="source"><p>Source Note: The provisions of this §25.53 adopted to be effective February 22, 1995, 20 TexReg 965; amended to be effective May 15, 2008, 33 TexReg 3776.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scD/s25.54"><num value="25.54">§25.54</num><heading>Design, Construction, and Maintenance Standards</heading><content>(a) The department adopts the latest version of the American Association of State Highway and Transportation Officials "Guide for the Development of Bicycle Facilities."(b) The department will continue to review guidelines for design, construction, and maintenance of bicycle facilities with the intent to adopt new guidelines as appropriate.</content><note type="source"><p>Source Note: The provisions of this §25.54 adopted to be effective February 22, 1995, 20 TexReg 965.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scD/s25.55"><num value="25.55">§25.55</num><heading>Comment Solicitation on Bicycle Road Use</heading><content>(a) Public Hearing.(1) Opportunity for a hearing. The department will annually provide an opportunity for a public hearing on:(A) use of the state highway system for bicycle events; and(B) department policies affecting bicycle use of the state highway system.(2) Notice. An opportunity for a public hearing and a public hearing held under this subsection will be advertised in the Texas Register.(3) Request for hearing. No further action will be taken to hold a public hearing if at the end of the time set for affording an opportunity for a public hearing fewer than ten individuals request a hearing.(b) Local Hearing.(1) Opportunity for a hearing. Each district will annually provide an opportunity for a public hearing on district transportation projects and programs that might affect bicycle use.(2) Notice.(A) An opportunity for a public hearing and a public hearing held under this subsection will be advertised by publishing two notices in local newspapers having general circulation. The first notice of an opportunity for a public hearing shall be published approximately 30 days in advance of the deadline date set by the district office for submission of written requests for holding a public hearing, and the second notice shall be published approximately ten days prior to the deadline date. The first notice of the public hearing shall be published approximately 30 days before the hearing, and the second notice shall be published approximately ten days before the hearing.(B) These notices will contain, at a minimum, the name and telephone number of the local district bicycle coordinator who may be contacted for questions or comments concerning district transportation projects and programs.(C) No further action will be taken to hold a public hearing if at the end of the time set for affording an opportunity for a public hearing no requests are received.(c) Mailing list.(1) Participants. Each district will maintain a mailing list of interested bicyclists, bicycle organizations, and bicycle shops. In department advertisements required under subsection (b) of this section, the department will invite such interested individuals and groups to submit a request to be added to the mailing list.(2) Notice of public involvement. All individuals and groups who request to be added to the mailing list will receive notice of public hearing activities related to environmental and public involvement for state projects conducted under the department's early coordination and public involvement rules and of public hearing activities required under subsection (b) of this section.</content><note type="source"><p>Source Note: The provisions of this §25.55 adopted to be effective February 22, 1995, 20 TexReg 965.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c25/scF"><num value="F">SUBCHAPTER F</num><heading>HAZARDOUS MATERIAL ROUTING DESIGNATIONS</heading><section identifier="/us/state/tx/tac/t43/p1/c25/scF/s25.101"><num value="25.101">§25.101</num><heading>Purpose</heading><content>Transportation Code, §644.201 designates the department as the state routing agency for non-radioactive hazardous materials (NRHM), in accordance with Title 49, Code of Federal Regulations, Part 397, Subpart C. Effective January 1, 1998, the department is required to approve all new NRHM routing designations or revisions to routing designations established prior to January 1, 1998 by the Texas Department of Public Safety.</content><note type="source"><p>Source Note: The provisions of this §25.101 adopted to be effective January 8, 1998, 23 TexReg 153; amended to be effective January 5, 2012, 36 TexReg 9350.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scF/s25.102"><num value="25.102">§25.102</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:(1) Commercial motor vehicle--Any vehicle used on the highways in the transportation of hazardous materials in commerce, in a quantity requiring placarding under regulations issued under the federal Hazardous Materials Transportation Act (Title 49, United States Code, §5101 et seq.)(2) Commission--The Texas Transportation Commission.(3) Department--The Texas Department of Transportation.(4) District--One of the 25 geographical areas, managed by a district engineer, in which the department conducts its primary work activities.(5) Executive Director--The Executive Director of the Texas Department of Transportation.(6) Hazardous material--A substance or material, including a hazardous substance, which has been determined by the United States Secretary of Transportation, pursuant to the Hazardous Materials Regulations contained in Title 49, Code of Federal Regulations, Chapter I, Subchapter C, to be capable of posing an unreasonable risk to health, safety, or property when transported in commerce, and which has been so designated.(7) Highway route--Any road or highway open to the public.(8) Non-Radioactive Hazardous Materials (NRHM)--A non-radioactive hazardous material transported by a motor vehicle in types and quantities which require placarding, pursuant to Table 1 or 2 of Title 49, Code of Federal Regulations §172.504.(9) Political subdivision--A county, municipality, local board, authority or commission, or public corporation, established under the laws of the state of Texas, that has the authority to construct and maintain a public road or highway.(10) Routing designation--Any regulation, limitation, restriction, curfew, time of travel restriction, lane restriction, routing ban, port-of-entry designation, or route weight restriction, applicable to the highway transportation of NRHM over a specific highway route or portion of a route.</content><note type="source"><p>Source Note: The provisions of this §25.102 adopted to be effective January 8, 1998, 23 TexReg 153.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scF/s25.103"><num value="25.103">§25.103</num><heading>Routing Designations by Political Subdivisions</heading><content>(a) Purpose. Title 49, Code of Federal Regulations (C.F.R.), Part 397, Subpart C, authorizes a political subdivision of a state to establish NRHM route designations on roads and highways open to the public under the jurisdiction of the political subdivision. Transportation Code, §644.202 requires a municipality with a population of more than 850,000 to develop a route for commercial motor vehicles carrying NRHM on a road or highway in the municipality and to submit the proposed route to the department for approval. This section prescribes the responsibilities of political subdivisions in establishing NRHM route designations and requires a political subdivision proposing the establishment of a new or revised NRHM routing designation to comply with this section in order to ensure that all route designations are properly established. (b) Costs. The political subdivision is responsible for all costs of NRHM route development, including proposal preparation, public hearings, signs, sign supports, sign installation, and sign maintenance. (c) Initial contact. A political subdivision considering the establishment of a NRHM route shall contact the local district office of the department and any other political subdivisions within a 25 mile radius of any point along the proposed NRHM route, and shall consult with those entities during the process for determining the best NRHM route. Coordination with the Texas Department of Public Safety and the local emergency planning council or committee is encouraged. (d) Route analysis and proposal. A political subdivision intending to establish a NRHM routing designation shall fully consider and address in writing all of the federal standards and factors listed in 49 C.F.R. §397.71(b) in the route determination process. When analyzing these standards and factors, the political subdivision shall use the most current version of the United States Department of Transportation publication entitled "Guidelines for Applying Criteria to Designate Routes for Transporting Hazardous Materials" or an equivalent routing analysis tool to develop a route proposal. If an equivalent routing analysis tool is used, the political subdivision shall include in its route proposal a written explanation of how the tool is equivalent to the United States Department of Transportation standards. (e) Local public hearing. A political subdivision shall hold at least one public hearing on any proposed NRHM routing designation. Public hearings may take the form of a city council or commissioners court meeting and shall conform with all applicable state laws governing public meetings, including the Texas Open Meetings Act, Government Code, Chapter 551. Public notification of the hearing shall comply with the following criteria. (1) The public shall be given 30 days prior notice of the hearing through publication in at least two newspapers of general circulation in the affected area, one of which is a newspaper with statewide circulation. (2) The notice shall contain a complete description of the proposed route, including the location, route name, highway number if the route is on the state highway system, and beginning and ending points of the route, together with the date, time, and location of the public hearing. (3) The notice shall initiate a 30-day public comment period and shall inform the public where to send any written comments. (f) Proposal submission. A political subdivision that has conducted a local public hearing in compliance with subsection (e) of this section shall submit eight copies of the NRHM route designation proposal and one original color map of the proposed NRHM route to the department for approval. The proposal and map shall be submitted to the Texas Department of Transportation, Traffic Operations Division, 125 East 11th Street, Austin, Texas 78701-2483. The proposal shall include: (1) documentation demonstrating compliance with Title 49, C.F.R., Part 397, Subpart C, and this section; (2) a complete description of the proposed route; and (3) a signature of approval by an authorized official of the political subdivision such as the mayor, city manager, county judge or an equivalent level of authority. (g) Proposal review. The department will provide the public with notice through publication in the Texas Register, a 30-day period in which to comment, and will conduct a public hearing to receive additional comments on the proposed NRHM routing designation. The public hearing will be conducted before the executive director or the designee of the executive director. The department will publish a notice satisfying the criteria identified in subsection (e) of this section in two newspapers of general circulation in the affected area. Public hearings under this subsection will be held in Austin, Texas. (h) Consultation with other states or Indian tribes. At least 60 days prior to establishing the NRHM routing designation, the department will provide written notice to the officials responsible for NRHM highway routing in all other affected states or Indian tribes. If no response is received within 60 days from the date of receipt of the notification of the proposed routing designation, the routing designation will be considered approved by the affected states or Indian tribes. The department will attempt to resolve any concerns or disagreement expressed by any consulted states or Indian tribes related to the proposed routing designation. If these concerns or disagreements are not resolved, the department will petition the Federal Highway Administration for resolution of the dispute in accordance with 49 C.F.R. §397.75. (i) Authorization and approval. If the department determines that a route has met all of the criteria for approval, the executive director will approve the NRHM routing designation, notify the political subdivision in writing that the proposed routing designation is authorized, and issue appropriate notice to the Federal Highway Administration and the Texas Department of Public Safety. A political subdivision that is issued a letter of approval shall designate the NRHM route by ordinance, resolution, rule, regulation, or other official order, and shall forward a copy of the order to the department within 30 days of receipt of the letter of approval. (j) Route signing. After receipt of department approval and passage of the order, the political subdivision shall submit the proposed sign and installation locations of the NRHM route designation to the local district office for approval. All signs must conform to the latest version of the Texas Manual on Uniform Traffic Control Devices. Sign installations shall be coordinated with the local district office prior to placement.</content><note type="source"><p>Source Note: The provisions of this §25.103 adopted to be effective January 8, 1998, 23 TexReg 153; amended to be effective January 5, 2012, 36 TexReg 9350.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scF/s25.104"><num value="25.104">§25.104</num><heading>Department Routing Designations</heading><content>(a) Purpose. The department may propose a NRHM route on any road or highway of the state open to the public for the enhancement of public safety in the transportation of NRHM. The department will comply with this section to ensure new or revised NRHM routing designations proposed by the department are properly established.(b) Costs. The department is responsible for all costs of route development, including proposal preparation and public hearings. The department is responsible for all costs associated with sign fabrication for a NRHM route. The political subdivision that maintains the road or highway shall bear the costs for installation and maintenance of the signs. The department will be responsible for all costs related to sign fabrication, installation, and maintenance when a route is designated on a facility on the state highway system for which the department is responsible for maintenance.(c) Initial contact. Before initiating a routing study, the department will request the governing bodies of any political subdivision that maintains a road or highway on which the department may designate a NRHM route to submit a resolution indicating whether the political subdivision supports the initiation of the routing study. The department will also contact the regional office of the Texas Department of Public Safety and any other political subdivisions within a 25 mile radius of any point along the proposed NRHM route, and will consult with those entities during the process for determining the best NRHM route. The department may also coordinate with the local emergency planning council or committee.(d) Route analysis and proposal. The department will fully consider and address in writing all of the federal standards and factors listed in 49 CFR §397.71(b) in the route determination process. When analyzing these standards and factors, the department will use the most current version of the United States Department of Transportation publication entitled Guidelines for Applying Criteria to Designate Routes for Transporting Hazardous Materials or an equivalent routing analysis tool to develop a route proposal. If an equivalent routing analysis tool is used, the department will include in its route proposal a written explanation of how the tool is equivalent to the United States Department of Transportation standards.(e) Public hearing. The department will hold at least one public hearing on any proposed NRHM routing designation in accordance with the Texas Open Meetings Act, Government Code, Chapter 551. The hearing will be held in the department district in which the road or highway that the department proposes to designate a NRHM route is located. Public notification of the hearing will comply with the following criteria.(1) The public will be given at least 30 days prior notice of the hearing through publication in the Texas Register and at least one other newspaper of general circulation in the affected area.(2) The notice will contain a complete description of the proposed route, including the location, route name, highway number if the route is on the state highway system, and beginning and ending points of the route, together with the date, time, and location of the public hearing.(3) The notice will initiate a 30-day public comment period and will inform the public where to send any written comments.(f) Consultation with other states or Indian tribes. At least 60 days prior to establishing the NRHM routing designation, the department will provide written notice to the officials responsible for NRHM highway routing in all other affected states or Indian tribes. If no response is received within 60 days from the date of receipt of the notification of the proposed routing designation, the routing designation will be considered approved by the affected states or Indian tribes. The department will attempt to resolve any concerns or disagreement expressed by any consulted states or Indian tribes related to the proposed routing designation. If these concerns or disagreements are not resolved, the department will petition the Federal Highway Administration for resolution of the dispute in accordance with 49 CFR §397.75.(g) Local approval of NRHM routing designations. After completion of the routing study and public hearing, if the proposed NRHM routing designation includes a road or highway that is not part of the state highway system, the department will obtain a written resolution supporting the proposed designation from the governing body of the political subdivision that maintains the road or highway.(h) Proposal content. The department will prepare a route proposal and a color map of the route. The proposal will include:(1) documentation demonstrating compliance with Title 49, Code of Federal Regulations, Part 397, Subpart C and this section;(2) a complete description of the proposed route; and(3) the resolution required by subsection (f) of this section.(i) Department action. If the department determines that a route has met all criteria for approval, the executive director will submit the NRHM routing designation to the commission for approval in accordance with subsection (j) of this section.(j) Commission approval. The commission will evaluate and approve the routing designation proposal based on the safety of the traveling public and the following factors and conditions as contained in the most recent version of the United States Department of Transportation publication entitled "Guidelines for Applying Criteria to Designate Routes for Transporting Hazardous Materials" as follows:(1) population density;(2) the type of highway;(3) the results of public participation;(4) the type and quantity of NRHM;(5) emergency response capabilities;(6) exposure and other risk factors;(7) terrain considerations;(8) continuity of routes;(9) alternative routes;(10) effects on commerce;(11) delays on transportation;(12) climatic conditions; and(13) congestion and crash history.(k) Action on approval by commission. Upon approval by the commission, the department will notify the political subdivision with jurisdiction over the road or highway on which the NRHM route is designated and will issue appropriate notice to the Federal Highway Administration and the Texas Department of Public Safety. A political subdivision that is notified of a NRHM route designation shall designate the NRHM route by ordinance, resolution, rule, regulation, or other official order, and shall forward a copy of the order to the department.(l) Route signing. After receipt of the notice of commission's approval, the department will provide the signs for the NRHM route designation. All signs must conform to the latest version of the Texas Manual on Uniform Traffic Control Devices. Sign installation will be coordinated by the local district office prior to placement.</content><note type="source"><p>Source Note: The provisions of this §25.104 adopted to be effective January 8, 1998, 23 TexReg 153.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c25/scG"><num value="G">SUBCHAPTER G</num><heading>INFORMATION LOGO SIGN AND TOURIST-ORIENTED DIRECTIONAL SIGN PROGRAM</heading><section identifier="/us/state/tx/tac/t43/p1/c25/scG/s25.400"><num value="25.400">§25.400</num><heading>Purpose</heading><content>Transportation Code, §391.091 and §391.099, requires the department to contract with a person, firm, group, or association in the State of Texas to erect and maintain information logo and tourist-oriented directional signs within eligible highway rights of way. It further requires the commission to adopt rules necessary to administer and enforce this signing program, and to regulate the content, composition, placement, erection, and maintenance of these signs within eligible highway rights of way. The sections in this subchapter prescribe the policies and procedures for the implementation of this program.</content><note type="source"><p>Source Note: The provisions of this §25.400 adopted to be effective November 17, 2005, 30 TexReg 7497.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scG/s25.401"><num value="25.401">§25.401</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Business logo--A separate sign panel of specified dimensions attached to a specific information logo sign assembly and containing the commercial establishment name, symbol, brand, trademark, or combination.(2) Commercial establishment--A privately owned business or corporation offering one or more of the primary motorist services.(3) Commission--The Texas Transportation Commission.(4) Contractor--A person, firm, group, or association in the State of Texas that acts as the authorized agent of the department in the operation of the specific information logo or the tourist-oriented directional (TOD) sign program.(5) Department--The Texas Department of Transportation.(6) Driveway access--A vehicle entrance, built in compliance with state and local standards and regulations, for use by the public providing access from a public street or highway to a commercial establishment or major shopping area.(7) Eligible highway--(A) for information logo signs, a controlled access highway on the designated state highway system; or(B) for TOD signs and participating facilities, a non-controlled access highway located on the designated state highway system outside the corporate limits of a municipality with a population of 5,000 or more.(8) Executive director--The executive director of the Texas Department of Transportation or his or her designee.(9) Gross building area--Square footage of usable area within a building, or series of buildings, that is considered usable by the retail businesses and the public.(10) Information logo sign--A specific information logo sign assembly or a major shopping area guide sign.(11) Interchange--The intersection of the centerlines of an eligible highway and a crossroad.(12) Major portion--Fifty-one percent or more.(13) Major shopping area guide sign--A rectangular supplemental sign panel imprinted with the name of the retail shopping area as it is commonly known to the public and containing directional information.(14) Major shopping area ramp sign--A supplemental sign with the common name of the major shopping area, directional arrows, and/or distances placed near an eligible highway exit ramp or access road.(15) Multiple crossroad interchange--An interchange in which one exit in a direction of travel from an eligible highway provides the only point of access for two or more crossroads; the center of a multiple crossroad interchange is the mid-point of the intersection of the centerline of the eligible highway and centerlines of the affected crossroads.(16) Pharmacy services--The act of accepting and filling prescriptions by or under the supervision of a pharmacist licensed by the State of Texas.(17) Primary motorist service--Gas, food, lodging, camping, or 24-hour pharmacy services available to the traveling public.(18) Ramp business logo--A reduced size separate sign panel of specified dimensions attached to a ramp sign and containing the commercial establishment name, symbol, brand, trademark, or combination.(19) Ramp sign--A supplemental sign with ramp business logos or the name of the major shopping area, directional arrows, and distances placed near an eligible highway or eligible highway exit ramp.(20) Specific information logo sign assembly--A rectangular supplemental sign imprinted with the words "GAS," "FOOD," "LODGING," "CAMPING," or "24 HOUR Rx" or with a combination of those words, and the names (or business logos) of commercial establishments offering those services.(21) State--the State of Texas.(22) Texas MUTCD--Texas Manual on Uniform Traffic Control Devices for Streets and Highways, latest edition, issued by the Texas Department of Transportation.(23) TOD sign assembly--An official sign structure erected under the TOD sign program containing one or more TOD panels and located on a TOD sign program eligible highway as defined in this subchapter.(24) TOD sign panel--An individual sign panel of a business or entity participating in the TOD program contained on a TOD sign assembly.(25) TOD sign program--Tourist-oriented directional sign program.(26) Trailblazer sign--A sign used in conjunction with the TOD sign program off of the designated state highway system that indicates the direction to the participating business or entity.</content><note type="source"><p>Source Note: The provisions of this §25.401 adopted to be effective November 17, 2005, 30 TexReg 7497; amended to be effective January 4, 2007, 31 TexReg 10830; amended to be effective June 19, 2008, 33 TexReg 4685; amended to be effective January 7, 2015, 40 TexReg 102.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scG/s25.402"><num value="25.402">§25.402</num><heading>Information Logo Sign and TOD Sign Program</heading><content>(a) Program. The department may award a contract or contracts to a person, firm, group, or association in the State of Texas, for an initial period not to exceed five years, to develop, operate, and maintain information logo and TOD signs at appropriate locations along eligible highways subject to the terms and conditions of the subsection.(b) Marketing. In marketing the information logo and TOD sign program, the contractor shall market the program to have maximum statewide implementation under the terms and conditions contained in the program contract.(c) Site plans. Prior to construction of an information logo sign at an approved location, the contractor must submit a site plan to the department. Upon approval of the site plan, the contractor may begin work at the location described.(d) Contacting participating businesses. In the first three months of a contract between the department and the contractor, the contractor shall contact all participating businesses with logo or TOD sign panels to:(1) notify the businesses of the new contract between the department and the contractor; and(2) coordinate whether the participating businesses will renew if space is available.(e) Cooperation with other contractors. The contractor is required to cooperate with any contractor working on the state highway system as well as any other contractors operating other sign programs within the state. Upon request by a potential lessee, the department, or a member of the public, the contractor will furnish the name, address, and telephone number of other information logo sign or TOD sign contractors.(f) Annual report. The contractor shall furnish an annual report to the department. The annual report will include the contractor's financial statement, number of logo sign assemblies erected, number of major shopping area guide signs erected, number of TOD sign assemblies and panels erected, and number of participation agreements completed. Other reports may also be required throughout the year as determined by the department.(g) Program information.(1) The contractor shall furnish an electronic inventory to the department in a format or formats of the department's choice. This inventory shall include, but not be limited to:(A) a list of all businesses participating in the program;(B) information on all participating businesses including addresses, key contacts, and phone numbers;(C) location information for each information logo sign including:(i) roadway;(ii) exit number or crossroad; and(iii) direction;(D) information for each TOD sign including:(i) roadway and crossroad;(ii) number of TOD sign panels per TOD sign assembly;(iii) direction; and(iv) county; and(E) date of expiration of the contract between each participating business and the program contractor.(2) The inventory shall be updated and provided to the department on a monthly basis.(h) Installation by contractor. Installation of information logo and TOD signs may only be performed by the contractor, a subcontractor approved by the department, or, in emergency situations, by the department. In the event that the department undertakes installation or other duties of the contractor, the contractor shall immediately remit to the department the specified fee or cost of such work.(i) Department review. Prior to installation, the design and location of information logo and TOD signs must be submitted to the department for review.(j) Sign relocation or removal. If the department determines that additional regulatory, warning, or guide signing is needed, existing or planned information logo or TOD signs shall be removed or relocated by the contractor as directed by the department and at the sole expense of the contractor. If the department determines that construction or maintenance activities within the eligible highway rights of way will create conditions where existing information logo or TOD signs will not be in compliance with Transportation Code, Chapter 391, or provisions of this title, the contractor shall:(1) remove the business logos and ramp business logos of the affected commercial establishments;(2) remove the information logo signs and ramp signs;(3) remove the TOD signs; and(4) reimburse advance rental fees paid by participating businesses or entities prorated as per the date of removal of the business logos, major shopping area guide signs, or TOD signs.(k) Sign maintenance. The information logo and TOD signs shall be maintained by the contractor in a manner and condition that is a distinct benefit to the safety of the public, benefit to the participating businesses or entities, and to the satisfaction of the department.(l) Fees. The contractor shall assess a fee covering the installation, annual rental, covering, maintenance, and replacement costs for the signs and shall remit to the department the amount specified in the contract no later than the seventh business day following the last day of the month such fees are received by the contractor.(1) Reduced fees. The contractor shall reduce the annual rental fee by a prorated amount for each calendar day when:(A) the business or ramp business logo(s), or the major shopping area guide sign has not been erected; or(B) a previously erected business, ramp business logo, major shopping area guide sign, or TOD sign is obscured from view of the motorists for a period of time exceeding 10 consecutive calendar days.(2) Non-reducible fee. A contractor may not reduce the annual fee for the period a business logo, ramp business logo, or major shopping area guide sign, or TOD sign is covered at the request of the participating business or entity.(m) Termination.(1) Contractor termination. If the contractor terminates the contract or defaults prior to the conclusion date of any five-year term, ownership of the contract rights and any rights in the information logo or TOD signs constructed at the various interchanges and intersections shall immediately pass to and vest in the department on the effective date of termination, and the contractor shall not be entitled to any compensation.(2) Department termination. If the department terminates the contract, before the contract's termination date, for reasons other than default by the contractor, the contractor will be paid for the depreciated value, as established by the department, for each of the information logo or TOD signs erected. The percentages are as follows (based on elapsed time since sign installation and the expiration year's statewide average square foot bid price for a similar ground mounted sign):(A) less than one year--90%;(B) one year or more but less than two years--50%;(C) two years or more but less than three years--25%; or(D) three years or more--0%.(3) Contract termination.(A) If the contract terminates at its specified termination date, the existing contractor is not awarded the contract, and the existing contractor's contract contains payment terms for economic value at the end of the specified termination date, then the subsequent contractor will pay the department the following economic value based on elapsed time since sign installation and the expiration year's statewide average square foot bid price for a similar ground mounted sign:(i) less than one year--90%;(ii) one year or more but less than two years--50%;(iii) two years or more but less than three years--25%; or(iv) three years or more--0%.(B) The department will pay the existing contractor the amount indicated in subparagraph (A) of this paragraph.(C) Specific information logo ramp signs will not be eligible for consideration of compensation.(D) An existing specific information logo sign contractor receiving a new contract will not be eligible for compensation upon expiration of the contract.(E) The department will provide an estimate of the economic value of these signs in the department's request for offer.(n) Sale, transfer, and assignment of contract. The contractor shall not sell, transfer, assign, or otherwise dispose of the contract or any portion thereof, or of its right, title, or interest therein, without the prior written consent of the department.</content><note type="source"><p>Source Note: The provisions of this §25.402 adopted to be effective November 17, 2005, 30 TexReg 7497.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scG/s25.403"><num value="25.403">§25.403</num><heading>Request for Proposals</heading><content>(a) Notice. The department will publish a request for proposals for the information logo and TOD sign program.(b) Evaluation. The department will determine the best value to the state by evaluating the contractor's:(1) proposed team and the time commitment for each team member;(2) capability for undertaking and performing the work;(3) understanding of the project;(4) quality of services offered;(5) financial resources and ability to perform the work;(6) approach or course of action to meeting the goals and objectives;(7) ability to meet the schedule;(8) proposed percentage to be paid to the department from fees collected from program participants;(9) proposed amount for the fees that will be charged to participants in the program; and(10) ability to fulfill any other criteria listed in the request for proposal.(c) Ineligible proposal. The department will not consider a proposal that:(1) fails to comply with any requirement contained in the request for proposals issued under this section; or(2) fails to guarantee a fee to be paid to the department of at least 10% of the fees collected from program participants or a percentage as specified by the department in the request for proposals of the fees collected from program participants sufficient to cover the department's costs to administer the program.</content><note type="source"><p>Source Note: The provisions of this §25.403 adopted to be effective November 17, 2005, 30 TexReg 7497.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scG/s25.404"><num value="25.404">§25.404</num><heading>Specifications for Information Logo Signs</heading><content>(a) Specific information logo signs.(1) Design. A specific information logo sign assembly shall:(A) have a blue background with a white reflective border;(B) contain a principal legend equal in height to the directional legend;(C) meet the applicable provisions of the Texas MUTCD;(D) have background material that conforms with department specifications for reflective sheeting;(E) be fabricated, erected, and maintained in conformance with department specifications and fabrication details;(F) provide vertical spacing and horizontal spacing for a balanced appearance of business logos.(2) Content. A specific information logo sign shall contain:(A) word legends for the following services: GAS, FOOD, LODGING, CAMPING, or "24 HOUR Rx";(B) the exit number or, if exit numbers are not applicable, "NEXT RIGHT";(C) no more than six business logos on one logo sign assembly; and(D) no more than three types of services on a sign assembly.(3) Placement. Subject to approval of the department, a specific information logo sign shall be installed or placed:(A) to conform to the following order of placement along the direction of travel: PHARMACY, CAMPING, LODGING, FOOD, GAS;(B) according to the following priorities where available space is limited: GAS, FOOD, LODGING, CAMPING, and PHARMACY;(C) to take advantage of natural terrain;(D) to have the least impact on the scenic environment;(E) to avoid visual conflict with other signs within the highway right-of-way;(F) with a lateral offset equal to or greater than existing guide signs;(G) at least 800 feet from the previous interchange and at least 800 feet from the exit direction sign at the interchange from which the services are available;(H) without blocking motorists' visibility of existing traffic control and guide signs;(I) in locations that are not overhead;(J) where a motorist, after following the sign(s), can conveniently re-enter the highway and continue in the original direction of travel; and(K) at least 800 feet between two large guide signs, but not excessively spaced.(4) Existing signs. Existing regulatory, warning, destination, guide, recreation, and cultural interest signs will not be removed; provided, however, that subject to the written approval of the department, such existing signs may be relocated by special permission of the department at the sole expense and responsibility of the contractor and only to the extent necessary to accommodate logo signs.(b) Business logos.(1) Design. A business logo:(A) may not exceed 48 inches in width or 36 inches in height;(B) may be any color or combination of colors; and(C) may only be fabricated, erected, and maintained in conformance with current department specifications for aluminum signs and reflective sheeting.(2) Content. A business logo may:(A) consist of a registered trademark or a legend message identifying the name or abbreviation of the commercial establishment;(B) contain supplemental information that is determined by the department to be essential motorist information, such as "24 HOURS," "DIESEL," "CNG," or "LNG";(C) contain a message, symbol, or trademark only if the message, symbol, or trademark does not resemble an official traffic control device;(D) contain text, symbols, or advertising only if the text, symbols, or advertising are related to the primary service of the specific information logo sign; and(E) contain an "RV Access" supplemental information or symbol indicating the business has facilities that accommodate the on-site movement and parking of recreational vehicles. The facility must meet the following criteria to be considered eligible to receive the RV Access supplemental information:(i) roadway access and egress must be hard surface, free of potholes, and at least 12 feet wide with a minimum swing radius of 50 feet to enter and exit the facility;(ii) roadway access, egress, and parking facilities must be free of any electrical wires, tree branches, or other obstructions up to 14 feet above the surface;(iii) facilities requiring short-term parking, such as restaurants or tourist attractions, must have 2 or more spaces that are 12 feet wide and 65 feet long with a swing radius of 50 feet to enter and exit the spaces;(iv) fueling facilities with canopies must have a 14-foot clearance, and those selling diesel fuel must have pumps with non-commercial nozzles;(v) fueling facilities must allow for a pull-through with a swing radius of 50 feet;(vi) a campground must have 2 or more spaces that are 18 feet wide and 45 feet long; and(vii) the commercial establishment must post on its site directional signing, as needed, to those RV access parking spaces and other on-site RV access services, so that the motorist is given additional guidance upon leaving the public highway and entering the business establishment's property.(c) Ramp signs.(1) Design. A ramp sign shall:(A) meet the applicable provisions of the Texas MUTCD;(B) have a blue background with a white reflective border;(C) conform with the latest department specifications for reflective sheeting for the background material of the sign; and(D) be fabricated, erected, and maintained in conformance with the current department specifications for aluminum signs and roadside signs.(2) Placement. Subject to approval by the department, a ramp sign may be placed along an exit ramp or access road, or at an intersection of an access road and crossroad when a commercial establishment's building or on-premise signing is not visible from that exit ramp, access road, or intersection.(3) Content. A ramp business logo shall:(A) be no larger than 24 inches in width and 18 inches in height;(B) contain directional arrows and distances; and(C) be a duplicate of the business logo erected on a specific information logo sign.(d) Major shopping area guide signs.(1) Design. A major shopping area sign shall:(A) have a blue background with a white reflective legend and border;(B) meet the applicable provisions of the Texas MUTCD;(C) have background, legend, and border material that conforms to department specifications for reflective sheeting;(D) not be illuminated externally or internally; and(E) be fabricated, erected, and maintained in conformance with department specifications and fabrication details.(2) Content. A major shopping area guide sign shall:(A) contain the name of the major shopping area as it is commonly known to the public; and(B) contain the exit number or, if exit numbers are not applicable, other directional information.(3) Placement. Subject to approval of the department, a major shopping area guide sign shall be installed or placed:(A) so that it is independently mounted;(B) to take advantage of natural terrain;(C) to have the least impact on the scenic environment;(D) to avoid visual conflict with other signs within the highway right-of-way;(E) with a lateral offset equal to or greater than existing guide signs;(F) for both directions of travel on the eligible urban highway;(G) without blocking motorists' visibility of existing traffic control and guide signs; and(H) in locations that do not include overhead installation.(4) Existing signs. Existing regulatory, warning, destination, guide, recreation, and cultural interest signs will not be removed; provided, however, that subject to the written approval of the department, such existing signs may be relocated by special permission of the department at the sole expense and responsibility of the contractor and only to the extent necessary to accommodate major shopping area guide signs.(e) Major shopping area ramp signs.(1) Design. A major shopping area ramp sign shall:(A) have a blue background with a white reflective legend and border;(B) meet the applicable provisions of the Texas MUTCD;(C) have background, legend, and border material that conforms to department specifications for reflective sheeting;(D) be fabricated, erected, and maintained in conformance with department specifications and fabrication details; and(E) not be illuminated internally or externally.(2) Content. A ramp sign shall contain:(A) the name of the major shopping area as it is commonly known to the public; and(B) directional arrows and distances.(3) Placement. Subject to approval of the department, the major shopping area ramp sign(s) may be placed along an exit ramp or access road, or at an intersection of an access road and crossroad if the major shopping area driveway access, buildings, or parking areas are not visible from that exit ramp, access road, or intersection.(f) The department reserves the right of final approval of the content and placement of all signs and logos in this subchapter.</content><note type="source"><p>Source Note: The provisions of this §25.404 adopted to be effective November 17, 2005, 30 TexReg 7497; amended to be effective January 7, 2015, 40 TexReg 102.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scG/s25.405"><num value="25.405">§25.405</num><heading>Commercial Establishment Eligibility</heading><content>(a) General requirements for specific information logo sign eligibility. To be eligible to have a business logo placed on a specific information logo sign, a commercial establishment must:(1) offer at least one primary motorist service;(2) be located with driveway access to the access road (frontage road), ramp, or intersecting crossroad;(3) be visible, or have on-premise signing visible, from the commercial establishment's driveway access or the exit ramp, access road, crossroad, or intersection (or for an establishment that provides lodging, be visible from an eligible highway or an interchange on an eligible highway and be located on a street that is not more than two turns off the access or frontage road to the eligible highway); and(4) be located not farther than three miles from an interchange on an eligible highway, but if no gas, food, lodging, or camping service participating or willing to participate in the specific information logo sign program is located within three miles of an interchange, the department may approve commercial establishments of the same service:(A) if located not farther than six miles from the interchange;(B) nine miles from the interchange if no service participating or willing to participate is located six miles from the interchange;(C) 12 miles from the interchange if no service participating or willing to participate is located nine miles from the interchange; or(D) 15 miles from the interchange if no service participating or willing to participate is located 12 miles from the interchange;(5) comply with all applicable laws concerning the provisions of public accommodations without regard to race, religion, color, sex, or national origin; and(6) post its hours of operation on or near the main entrance so that they are visible to the public during open and closed hours.(b) Specific services eligibility. In addition to the general requirements for eligibility to have a business logo placed on a specific information logo sign, a commercial establishment must meet the requirements for at least one of the following primary motorist services.(1) Gas. To be eligible to have a business logo placed on a specific information logo sign carrying the legend "GAS," a commercial establishment must provide:(A) vehicle services, including fuel, oil, and water;(B) restroom facilities and drinking water;(C) continuous operation for at least 12 hours per day, seven days a week; and(D) a telephone accessible to the public.(2) Food. To be eligible to have a business logo placed on a specific information logo sign carrying the legend "FOOD," a commercial establishment must provide:(A) a license or other evidence of compliance with public health or sanitation laws, if required by law;(B) continuous operation at least 10 hours a day to serve two meals a day, six days a week;(C) seating capacity for at least 16 people;(D) public restrooms; and(E) a telephone accessible to the public.(3) Lodging. To be eligible to have a business logo placed on a specific information logo sign carrying the legend "LODGING," a commercial establishment must provide:(A) a license or other evidence of compliance with laws regulating facilities providing lodging, if required by law;(B) a minimum of 10 guest rooms each of which provides sleeping accommodations; and(C) a telephone accessible to the public.(4) Camping. To be eligible to have a business logo placed on a specific information logo sign carrying the legend "CAMPING," a commercial establishment must provide:(A) a license or other evidence of compliance with laws regulating camping facilities, if required by law;(B) a facility that is accessible to and capable of accommodating all types of recreational vehicles, travel trailers, campers, and tents;(C) adequate parking accommodations;(D) drinking water; and(E) modern sanitary facilities.(5) Pharmacy. To be eligible to have a business logo placed on a specific information logo sign carrying the legend "24 HOUR Rx," a commercial establishment must:(A) be open for business 24 hours of each day; and(B) provide pharmacy services 24 hours of each day.(c) Multiple services eligibility. If a commercial establishment offers more than one primary motorist service, it will be eligible to display a business logo for each of those services on the appropriate specific information logo sign, provided that:(1) minimum criteria for the service as described in §25.404 of this subchapter (relating to Specifications for Information Logo Signs) are met;(2) the additional business logo(s) would not prevent participation by another eligible commercial establishment whose sole service would be displaced; and(3) a business logo space is available.(d) Variances.(1) A person may request a variance from the information logo sign program. Requests for variances will only be considered if the existing requirements preclude participation in the program.(2) A variance may be requested for a waiver of:(A) an eligibility requirement except for the requirements listed in subsections (a)(1), (2) (except that an exception may be asked for an intersecting crossroad if the roadway with driveway access Tees into the frontage road of the eligible highway and is easily accessible or visible from that intersection), (5), and (6), and (b) of this section;(B) location of the establishment;(C) placement of the sign; or(D) type of highway, except the highway must be on the state highway system and for logo signs at or near a grade-separated intersection.(3) A person may submit a request for a variance to the department's local district engineer indicating:(A) which requirement of the program it does not meet; and(B) the variance requested.(4) The department may require additional documentation following generally accepted engineering standards, which may include, but not be limited to:(A) traffic studies;(B) maps indicating ramps, major arterials, ingress and egress points, existing signs and distances;(C) traffic flow analysis including traffic counts to and from the commercial establishment or major shopping area;(D) crash data and analysis; and(E) detailed site plan of the commercial establishment or major shopping area, including but not limited to available parking, driveways, and location in reference to eligible highways.(5) The executive director may grant a variance if he or she determines it is feasible to place the sign at the requested location and the sign meets the requirements of the Texas MUTCD; and(A) the variance will substantially promote traffic safety;(B) the variance will substantially improve traffic flow;(C) an overpass, highway sign or other highway structure unduly obstructs the visibility of an existing commercial sign; or(D) the variance is necessary to substantially improve the efficiency and effectiveness of communicating information needed by people to safely and efficiently use the transportation system.(6) The executive director will indicate the reason for granting or denying a variance in writing.</content><note type="source"><p>Source Note: The provisions of this §25.405 adopted to be effective November 17, 2005, 30 TexReg 7497; amended to be effective June 19, 2008, 33 TexReg 4685; amended to be effective January 7, 2015, 40 TexReg 102.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scG/s25.406"><num value="25.406">§25.406</num><heading>Major Shopping Area Eligibility</heading><content>(a) Eligibility criteria. To be eligible to have a major shopping area guide sign, the major shopping area must:(1) consist of 10 or more retail commercial establishments:(A) that have a combined gross building area of 650,000 or more square feet;(B) that are located within close proximity to one another;(C) that have a unifying architectural design theme for the commercial establishments;(D) at least two of which are anchor retail businesses, that have a combined gross building area of 150,000 or more square feet; and(E) that are planned, developed, and managed as a single property;(2) be located not farther than three miles from an interchange with an eligible highway; and(3) be located with driveway access to the eligible highway access road (frontage road), ramp, intersecting crossroad or city street.(b) Variances.(1) A person may request a variance from the requirements of the major shopping area guide sign program. A request for a variance will only be considered if the existing requirements preclude participation in the program.(2) A variance may be requested for waiver of the requirement of:(A) eligibility;(B) location of the major shopping area;(C) placement of the sign; or(D) type of highway, except the highway must be on the state highway system.(3) A person may submit a request for a variance to the department's local district engineer indicating:(A) which requirement of the program it does not meet; and(B) the variance requested.(4) The department may require additional documentation following generally accepted engineering standards, which shall include, but not be limited to:(A) traffic studies;(B) maps indicating ramps, major arterials, ingress and egress points, existing signs, and distances;(C) traffic flow analysis including traffic counts to and from the major shopping area;(D) crash data and analysis;(E) detailed site plan of the major shopping area, including but not limited to available parking, driveways, and location in reference to eligible urban highways.(5) The executive director may grant a variance if he or she determines it is feasible to place the sign at the location and the sign meets the requirements of the Texas MUTCD; and(A) the variance will substantially promote traffic safety;(B) the variance will substantially improve traffic flow;(C) an overpass, highway sign, or other highway structure unduly obstructs the visibility of an existing commercial sign; or(D) the variance is necessary to substantially improve the efficiency and effectiveness of communicating the information needed by people to safely and efficiently use the transportation system.(6) The executive director will indicate the reason for granting or denying a variance in writing.(7) A variance will not be granted if the executive director finds that:(A) a major shopping area is located on an intersecting crossroad or city street whose name can be easily identified with the major shopping area and has existing advance and exit guide signs; or(B) the major shopping area parking is so insufficient that it causes undue congestion of the roadway system.</content><note type="source"><p>Source Note: The provisions of this §25.406 adopted to be effective November 17, 2005, 30 TexReg 7497; amended to be effective January 4, 2007, 31 TexReg 10830; amended to be effective June 19, 2008, 33 TexReg 4685.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scG/s25.407"><num value="25.407">§25.407</num><heading>Logo Sign Program Operation</heading><content>(a) Commercial establishment and major shopping area application.(1) Applications for commercial establishments or major shopping areas desiring to participate in the information logo sign program are available upon request from the department.(2) A commercial establishment or major shopping area desiring to participate in the information logo sign program must submit an application to the contractor and verify that all requirements are met. Applications must be submitted to the location as stated on the application form. The contractor will verify the eligibility of each applicant.(3) For commercial establishments, a separate application is required for each primary motorist service per interchange per direction of travel. Only one application per commercial establishment per primary motorist service per direction of travel per interchange will be accepted.(4) Applications will be reviewed by the contractor and applicants will be notified in writing if qualified or rejected. Rejected applications will be returned and deficiencies noted.(5) Rejected applicants may resubmit their application when the noted deficiencies have been corrected.(6) To be eligible for the selection process for the available business logo space(s), available first alternate position, or available second alternate position, a commercial establishment must have submitted a qualified application before the commercial establishment application deadline.(7) The commercial establishment application deadline for the initial installation for a new or existing logo sign assembly drawing will be set as specified by the contractor and approved by the department.(8) Qualified applications received after the commercial establishment application deadline will be placed on file and considered eligible for future drawings.(b) Commercial establishment selection.(1) Available business logo space(s) and relative placement of business logos on the specific information logo sign, available first alternate position, and available second alternate position will be awarded by drawing of the qualified applications received before the commercial establishment application deadline. The relative placement of business logos in available space(s), in order of selection, is upper left, upper middle, upper right, lower left, lower middle, and lower right. For a specific information logo sign that includes more than one service, the relative placement of business logos in available space(s), in order of selection, is left to right and top to bottom for each portion of the sign designated for each service.(2) The drawing will be held publicly by the contractor on a date specified by the contractor and approved by the department in the presence of two or more department employees. When business logo spaces become available, additional drawings will be held publicly as needed in the presence of two or more department employees. Additional drawings of qualified applicants will be held no earlier than 20 days nor later than 45 days after the commercial establishment application deadline.(3) When a business logo space(s) becomes available, the first and second alternates have first right of refusal, respectively, for the available business logo space. If the first alternate accepts an available business logo space, the second alternate then becomes the first alternate with first right of refusal for any existing or future available business logo space. Any remaining available business logo space(s), available first alternate position, or available second alternate position are awarded by the drawings.(4) If the number of qualified applicants is less than or equal to the number of available business logo space(s) at the time of the commercial application deadline, the available spaces will be awarded to the qualified applicants. The random drawing will determine only the relative placement of the business logo signs in the available space(s).(5) The contractor shall notify the commercial establishment of the award of specific information business logo sign space within 10 calendar days of the date of the award. To accept the award, the commercial establishment must execute a written participation agreement with the contractor within 30 calendar days of the date of the award. The participation agreement shall be in a form as prescribed by the department and shall, at a minimum, contain all applicable provisions prescribed by this subchapter.(c) Responsibilities and rights of commercial establishment.(1) The commercial establishment must provide a business logo and, if necessary, ramp business logo(s) within 60 days of notification by the contractor of the contractor's intent to erect the specific information logo signs or ramp signs.(2) A commercial establishment may renew its participation agreement with the contractor on an annual or multi-year basis no later than the date specified by the contractor and approved by the department. If the commercial establishment does not renew the agreement with the contractor, the contractor will remove the business logo at the end of the participation agreement, and will make the vacated space(s) available to other commercial establishments pursuant to subsection (b) of this section.(d) Covering of business logo. A business logo and the ramp business logo(s) of a commercial establishment may be covered by the contractor if the commercial establishment is temporarily closed for a period not exceeding 30 calendar days. Unless removed pursuant to subsection (e) of this section, the business logo and ramp business logo(s) will remain covered until the commercial establishment reopens.(e) Removal of business logo.(1) A business logo of a participating commercial establishment shall be removed by the contractor if the commercial establishment:(A) ceases to exist;(B) fails to pay the annual rental fee or other fees within 30 calendar days of the due date as specified on the agreement;(C) is temporarily closed for more than 30 calendar days;(D) does not meet the minimum eligibility requirements of §25.405 of this subchapter, and all corrections are not made within 30 calendar days of written notification;(E) is sold, and the new commercial establishment does not continue the original primary motorist service or does not meet the minimum requirements for the primary motorist service;(F) has not provided a replacement business logo sign within 60 calendar days of written notification that the business logo is missing, damaged, broken, or faded; or(G) relocates and is no longer eligible for participation in the program.(2) Removal of a business logo by the contractor will include the removal of the commercial establishment's ramp business logo sign(s).(3) If the business logo is removed due to the default of the commercial establishment to perform within the terms of the participation agreement and this subchapter, the participation agreement is terminated between the commercial establishment and the contractor. All funds paid to the contractor by the commercial establishment are forfeited. Upon removal of a business logo, the vacated space becomes available pursuant to subsection (b) of this section. A replacement commercial business is selected, as stated in the commercial establishment selection process.(4) If the business logo is removed permanently due to actions of the department, the participation agreement is terminated between the commercial establishment and the contractor. Advance funds paid to the contractor by the commercial establishment will be pro-rated as per the date of removal, and any remaining amounts refunded to the commercial establishment.(f) Responsibilities and rights of the major shopping area. The major shopping area may renew its participation agreement with the contractor on an annual or multi-year basis at a date specified by the contractor and approved by the department. If the major shopping area does not renew the agreement with the contractor, the contractor will remove the guide signs and ramp signs at the end of the participation agreement.(g) Covering or removal of major shopping area guide sign.(1) A major shopping area guide sign(s) of a major shopping area may be covered by the contractor if:(A) the major shopping area is temporarily closed for a period not exceeding 30 calendar days; or(B) the department finds the parking is so insufficient that it causes undue congestion to the state highway system.(2) A major shopping area guide sign of a major shopping area may be covered until:(A) the property reopens; or(B) the department finds there is now sufficient parking.(3) A major shopping area guide sign of a participating major shopping area shall be removed by the contractor if the major shopping area:(A) ceases to exist;(B) fails to pay the annual rental fee or other fees within 30 calendar days of the due date as specified in the agreement;(C) is temporarily closed for more than 30 calendar days;(D) does not meet the minimum eligibility requirements of §25.406 of this subchapter, and all corrections are not made within 30 calendar days of written notification;(E) is sold, and the new major shopping area does not continue as a public retail business; or(F) does not correct the parking insufficiency within 90-days' notice by the department.(4) Removal of a major shopping area guide sign by the contractor will include the removal of the major shopping area's ramp sign(s).(5) If the major shopping area guide sign is removed due to the default of the major shopping area to perform within the terms of the participation agreement and the requirements as stated herein, the participation agreement is terminated between the major shopping area and the contractor. All funds paid to the contractor by the major shopping area are forfeited.(6) If the major shopping area guide sign is removed permanently due to actions of the department, the participation agreement is terminated between the major shopping area and the contractor. Advance funds paid to the contractor by the major shopping area will be pro-rated as per the date of removal, and any remaining amounts refunded to the major shopping area.</content><note type="source"><p>Source Note: The provisions of this §25.407 adopted to be effective November 17, 2005, 30 TexReg 7497; amended to be effective January 7, 2015, 40 TexReg 102.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scG/s25.408"><num value="25.408">§25.408</num><heading>TOD Sign Program Operation</heading><content>(a) Eligibility. A facility eligible for a TOD sign panel is a winery or other business or non-profit entity including a farm, ranch or other tourist activity that meets the following requirements:(1) General criteria. An eligible facility must:(A) derive a major portion of its income or visitors during the normal business season from highway users not residing within 50 miles from the facility;(B) provide a tourist-oriented service or tourist-oriented product of significant interest to the traveling public;(C) comply with all state and federal laws relating to:(i) provision of public accommodation without regard to race, religion, color, age, sex, or national origin; and(ii) licensing and approval of service facilities; and(D) be located within five driving miles from the eligible highway;(E) provide modern restroom facilities and drinking water;(F) be clean and in good repair; and(G) be in compliance with provisions regarding illegal signs as defined in the Highway Beautification Act of 1965 (23 USC 131).(2) Specific requirements. In addition to the general requirements, an eligible facility must meet the following specific requirements for at least one of the following categories of TOD sign panels.(A) Wineries. To be eligible for a TOD sign panel a winery must:(i) produce wine on the premises;(ii) conduct regularly scheduled public tours of the grounds or facilities or provide such tours upon walk-up request;(iii) market the product on the premises as a retail sale;(iv) have a wine tasting area on the premises; and(v) have a winery permit issued by the State of Texas.(B) Agritourism.(i) To be eligible for a TOD sign panel an agritourism applicant must:(I) sow, cultivate, or produce an agricultural product on site;(II) devote a minimum of five acres of land to the production of an agricultural product;(III) conduct regularly scheduled public tours of the grounds or facilities or provides such tours upon walk-up request;(IV) market the product on the premises as a retail sale; and(V) be open twelve months a year or during the normal seasonal period.(ii) Examples of eligible agritourism businesses include, but are not limited to, farms, ranches, herb farms, wildflower farms, and farmers markets.(C) Other commercial tourist-oriented businesses or entities.(i) To be eligible for a TOD sign panel, an eligible commercial tourist-oriented applicant must:(I) provide a unique or unusual commercial or non-profit service or product of significant interest to the tourist community;(II) offer services of interest to tourists upon walk-up request, such as retail sales, tours, overnight accommodations, or use of on-site services or facilities;(III) be open for business at least five days a week, and one of the five days must be Saturday or Sunday; and(IV) be a tourist destination or an accommodation that is not part of a franchise or national chain.(ii) Examples of eligible commercial tourist-oriented businesses include, but are not limited to, art/craft centers, art galleries, auction houses, amphitheaters, amusement parks, antique businesses, aquariums, arboretums, arenas, auditoriums, bed and breakfasts, boat landings/marinas, civic centers, concert halls, equestrian centers, fairgrounds, golf courses, museums, natural attractions, pavilions, stadiums, water oriented businesses, and wildlife preserves.(3) Ineligible facilities. Facilities excluded from participation in the TOD sign program include, but are not limited to, adult entertainment facilities, animal shelters, cemeteries, convenience stores, funeral homes, gas stations, industrial parks or plants, media facilities, local jails, local police or sheriffs' offices, movie theaters, office parks, radio stations, television stations, truck terminals, post offices, medical facilities, retirement homes, veterans facilities, veterinary facilities, mobile home parks, and residential or commercial subdivisions.(4) Final determination of eligibility. The department will make all final determinations regarding an applicant's eligibility to participate in the TOD sign program.(b) Application.(1) Applications for eligible facilities desiring to participate in the TOD sign program are available upon request from the department.(2) An eligible facility desiring to participate in the TOD sign program must submit an application to the contractor and verify that all eligibility requirements are met. Applications must be submitted to the location stated on the application form. The contractor will verify the eligibility of each applicant.(3) Applications will be reviewed by the contractor and applicants will be notified in writing of the application being approved or disapproved according to the following schedule.(A) Within 30 days the contractor will notify the business that:(i) the application has been received; and(ii) that the application is complete, or that additional information is required to complete the application.(B) The contractor will approve or disapprove the application:(i) within 60 days after the business submits the application if no additional information is required; or(ii) within 30 days after the date the business submits all of the additional information requested by the contractor under subparagraph (A) of this paragraph.(c) Specifications for TOD sign assemblies and sign panels.(1) Sign assembly. A TOD sign assembly shall:(A) have a blue background with a white reflective border;(B) meet all applicable provisions of the MUTCD;(C) have background material which conforms with department specifications for reflective sheeting; and(D) be fabricated, erected, and maintained in conformance with department specifications and fabrication details.(2) Order of priority. TOD sign panels will be assigned to eligible facilities in the following priority: wineries, agritourism, and other commercial tourist-oriented businesses.(3) Content. A TOD sign panel will contain no more than the following items as space limitations will allow:(A) a maximum of two lines of text describing the name of the eligible facility;(B) a directional arrow indicating the direction of and distance to the eligible facility; or(C) a symbol or icon depicting the type of eligible facility as designed and approved by the department.(4) Panel limitations. Each TOD sign assembly may have no more than three TOD sign panels.(5) Placement. Subject to approval by the department, a TOD sign assembly shall be installed or placed:(A) only on TOD eligible highways as defined in this subchapter;(B) to take advantage of natural terrain;(C) to have the least impact on the scenic environment;(D) to avoid visual conflict with other signs within the highway right-of-way;(E) with a lateral offset equal to or greater than existing guide signs;(F) in advance of the intersection or business entrance on the TOD eligible highway;(G) at least 200 feet from any other traffic control devices; and(H) so that it does not block motorists' visibility of existing traffic control and guide signs.(6) Maximum number of TOD sign assemblies. The maximum number of TOD sign assemblies will be limited to three per intersection approach subject to the placement requirements contained in this subchapter.(7) Existing signs. Existing regulatory, warning, destination, guide, recreation, and cultural interest signs will not be removed; provided, however, that subject to the written approval of the department, such existing signs may be relocated by special permission of the department at the sole expense and responsibility of the contractor and only to the extent necessary to accommodate TOD signs.(d) TOD trailblazer signs.(1) At each turn required to be made by the traveling public from a TOD sign to the participating facility, a TOD trailblazer sign shall be in place directing the turn.(2) Any costs associated with installation and maintenance of trailblazer signs is the responsibility of the participating facility and is not part of the TOD contract between the department and contractor.(3) No TOD sign will be installed until all necessary trailblazer signs have been installed by the participating facility.(4) When trailblazer signs are required to be installed off the state highway system, it will be the participating facility's responsibility to contact the private property owner or appropriate local jurisdiction for approval to install these signs.(5) If at any time the department determines that trailblazer signing off the state highway system is not adequate to direct the motorist, the participating facility shall be notified. If action is not taken by the participating facility to correct this problem within 60 days, the TOD sign panel on the state highway system shall be removed or covered at the discretion of the department.(e) TOD sign panel order. Order of placement of TOD sign panels will be determined by the department so as to maximize the number of participating businesses.(f) Removal of TOD sign panel.(1) A TOD sign panel of an eligible facility shall be removed by the contractor if the facility:(A) ceases to exist;(B) fails to pay the annual rental fee or other fees within 30 calendar days of the due date as specified in the agreement;(C) does not meet the minimum requirements as stated in subsection (a) of this section, and all corrections are not made within 30 calendar days of written notification;(D) is sold, and the new eligible facility does not continue the original tourist-oriented activity or service, or does not meet the minimum requirements for a TODS eligible facility; or(E) relocates and is no longer eligible for participation in the program.(2) If the TOD sign panel is removed due to the default of the eligible facility to perform within the terms of the participation agreement and this subchapter, the participation agreement is terminated between the eligible facility and the contractor. All funds paid to the contractor by the eligible facility are forfeited. Upon removal of a TOD sign panel, the vacated space becomes available pursuant to the procedures contained in this subchapter.(3) If the TOD sign panel is removed permanently due to actions of the department, the participation agreement is terminated between the eligible facility and the contractor. Advance funds paid to the contractor by the eligible facility will be pro-rated as per the date of removal, and any remaining amounts refunded to the commercial establishment.(g) Seasonal facilities. Seasonal facilities may participate in the TOD sign program provided they meet the general eligibility criteria for participation in the program.(h) Existing winery signs prior to 2005. Notwithstanding the requirements of this subsection, a winery that had a sign maintained by the department prior to enactment of the TODS Program in 2005 is eligible to participate in the TOD sign program.(i) Variances. Variances may not be requested for any eligibility requirements for TOD sign panels as described in this section.(j) Allocation process for excess demand. The contractor will hold a public drawing to assign TOD sign panel spaces when there are more eligible facilities wishing to participate in the program than TOD panel spaces available at a given location.(1) To be eligible for the selection process for the available TOD space(s), an eligible facility must have submitted a qualified application before the TOD sign program application deadline.(2) The application deadline for the initial installation for a new or existing TOD sign assembly drawing will be set at a date specified by the contractor and approved by the department.(3) Qualified applications received after the deadline will be placed on file and considered eligible for future drawings.(4) Selection.(A) Available TOD sign panel space(s) on the specific TOD sign assembly will be awarded by drawing of the qualified applications received before the application deadline.(B) Spaces will be awarded based on the following priority: wineries, agritourism and other commercial tourist-oriented businesses.(C) The drawing will be held publicly by the contractor at a date specified by the contractor and approved by the department in the presence of two or more department employees. When additional TOD sign panel spaces become available, additional drawings will be held as needed at a date specified by the contractor and approved by the department.(D) The contractor shall notify applicants of the award of the TOD sign panel space within 10 calendar days of the date of the award. To accept the award, the applicant must execute a written participation agreement with the contractor within 30 calendar days of the date of the award. The participation agreement shall be in a form as prescribed by the department and shall, at a minimum, contain all applicable provisions prescribed in this subchapter.</content><note type="source"><p>Source Note: The provisions of this §25.408 adopted to be effective November 17, 2005, 30 TexReg 7497; amended to be effective June 19, 2008, 33 TexReg 4685; amended to be effective January 7, 2015, 40 TexReg 102.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scG/s25.409"><num value="25.409">§25.409</num><heading>Appeal</heading><content>(a) Contractor. A contractor may appeal any adverse decision by the department by filing a petition for an administrative hearing pursuant to §§1.21-1.26 of this title (relating to Procedures in Contested Cases). Any dispute as to the terms of the contract will be governed by §9.2 of this title (relating to Contract Claim Procedure).(b) Commercial establishment or TOD facility. A commercial establishment or TOD facility may petition the Traffic Operations Division director (director) to appeal an adverse decision of the program contractor.(1) The petition must be in writing and received by the director at 125 E. 11th Street, Austin, Texas 78701-2483 within 30 days of the contractor's adverse decision.(2) The petition must include:(A) an explanation of the adverse decision made by the contractor;(B) statement of facts as to why the contractor's decision is in error; and(C) any supporting documentation to be considered by the director, such as drawings or photographs.(3) The decision by the director is final.(4) If the petition is denied the department will send a written decision to the petitioner stating the reasons for denial.</content><note type="source"><p>Source Note: The provisions of this §25.409 adopted to be effective November 17, 2005, 30 TexReg 7497.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c25/scH"><num value="H">SUBCHAPTER H</num><heading>CITY PRIDE SIGN PROGRAM</heading><section identifier="/us/state/tx/tac/t43/p1/c25/scH/s25.420"><num value="25.420">§25.420</num><heading>Purpose</heading><content>The sections under this subchapter prescribe the policies and procedures for the implementation of the city pride sign program which will allow municipalities to erect and display signs concerning points of interest, or geographical, recreational, cultural, or civic information, at the city limits on state highway right of way.</content><note type="source"><p>Source Note: The provisions of this §25.420 adopted to be effective December 16, 1996, 21 TexReg 11834.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scH/s25.421"><num value="25.421">§25.421</num><heading>Definitions</heading><content>The following words and terms, when used in the sections under this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Attachment sign--A sign, provided by a civic organization or a governmental entity, that displays points of interest or geographical, recreational, cultural, or civic information, including awards for participation in programs.(2) City pride sign--A sign placed near a city's jurisdictional limits that displays attachment signs.(3) Civic organization--A non-profit organization.(4) Department--The Texas Department of Transportation.(5) District--One of the 25 geographical areas managed by a district engineer, in which the department conducts its primary work activities.(6) Eligible highway--A non-controlled access highway on the state highway system.(7) KTB sign--A sign that shows a city's dedication to the mission of preventing litter and promoting beautification for the Keep Texas Beautiful Proud Community Program.(8) Municipality--A city, town, or a self-governing unincorporated community.(9) Non-controlled access highway--In accordance with applicable state law, a state highway on which owners, or occupants of abutting lands, and other persons have access to or from the highway other than at such points determined by the department.(10) Non-profit organization--A non-profit unincorporated association or society or a corporation that is incorporated or holds a certificate of authority under the Texas Non-Profit Corporation Act (Texas Civil Statutes, Article 1396-1.01 et seq.).(11) Texas MUTCD--Texas Manual on Uniform Traffic Control Devices for Streets and Highways, latest edition, issued by the Texas Department of Transportation.(12) THC sign--A Texas Historical Commission sign with the legend "Historical Markers in City" which is used to indicate the presence of historical markers in the city.(13) TNRCC sign--A sign that promotes the maintenance of the state's water quality and contains attachment signs for the Texas Natural Resource Conservation Commission's Superior Public Drinking Water or Clean Texas 2000 programs.</content><note type="source"><p>Source Note: The provisions of this §25.421 adopted to be effective December 16, 1996, 21 TexReg 11834; amended to be effective November 22, 1998, 23 TexReg 11664.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scH/s25.422"><num value="25.422">§25.422</num><heading>City Pride Sign Program</heading><content>(a) Municipality application.(1) A municipality may obtain an application for participation in the city pride sign program from the Texas Department of Transportation, Traffic Operations Division, 125 East 11th Street, Austin, Texas 78701-2483, or a district office. The application may contain a request for more than one sign. One city pride, TNRCC, THC, and KTB sign may be placed at each eligible highway entrance.(2) An application must be submitted to a district office.(b) Department approval.(1) The district engineer or his or her designee will approve the design and locations of the city pride, TNRCC, THC, and KTB signs if the plans meet department specifications in accordance with §25.424 of this title (relating to Specifications for Signs).(2) The department will notify a municipality in writing whether its specifications have met the department's criteria. Deficiencies will be noted in the returned application.(3) A municipality may resubmit its application when the noted deficiencies have been corrected.(c) Written agreement. If the district engineer or his or her designee approves the sign, the municipality must enter into a written agreement with the department. The participation agreement shall be in a form prescribed by the department and shall, at a minimum, contain the requirements of this subchapter.(d) Cooperation with contractors. While installing or maintaining the sign, the municipality is required to cooperate with any department contractor working on the state highway system at that location.(e) Installation.(1) The municipality or its contractor may install the city pride, TNRCC, THC, or KTB sign. The department will inspect installation to ensure that the sign meets department and Texas MUTCD standards.(2) The municipality shall submit as-built plans to the department within 45 calendar days upon completion of the installation of a city pride, TNRCC, THC, or KTB sign.(f) Maintenance. The municipality shall maintain the city pride, TNRCC, THC, or KTB signs in a safe manner and condition in accordance with department standards.(g) Sign relocation or removal.(1) If the department determines that additional regulatory, warning, or guide signing is needed, it may require the municipality to remove or relocate an existing or planned city pride, TNRCC, THC, or KTB sign at the expense of the municipality. If the department determines that construction or maintenance activities within the state highway right of way will create conditions where an existing city pride, TNRCC, THC, or KTB sign will not be in compliance with the provisions of this subchapter, the municipality shall remove the city pride, TNRCC, THC, or KTB sign at its expense.(2) The municipality shall remove a city pride, TNRCC, THC, or KTB sign if it has not provided a replacement sign within 60 calendar days of written notification from the department that the sign is damaged, broken, faded, or has become a hazard due to failure to build to specifications, inclement weather, inadequate maintenance, accidental damage, or other cause.(3) A sign not removed in compliance with paragraph (2) of this subsection is subject to removal by the department and the municipality is liable for removal and disposal costs as provided by §25.10 of this title (relating to Signs on State Highway Right of Way).(h) Fees. The department and the municipality shall not require fees for participation in the city pride sign program.(i) Termination. The department may terminate the agreement upon default of the municipality.</content><note type="source"><p>Source Note: The provisions of this §25.422 adopted to be effective December 16, 1996, 21 TexReg 11834; amended to be effective November 22, 1998, 23 TexReg 11664.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scH/s25.423"><num value="25.423">§25.423</num><heading>Civic Organization Eligibility</heading><content>(a) General requirements for eligibility. A civic organization's application must be approved by the municipality. To be eligible to have an attachment sign placed on a city pride sign in accordance with §25.422 of this title (relating to City Pride Sign Program), a civic organization must:(1) be located within or have a member who resides in the municipality; and(2) comply with all applicable laws concerning the provisions of public accommodations without regard to race, religion, color, sex, or national origin.(b) Placement.(1) The attachment sign shall be placed within the available sign space.(2) An organization may have only one attachment sign per city pride sign unless the city and organization agree to installation of additional signs.</content><note type="source"><p>Source Note: The provisions of this §25.423 adopted to be effective December 16, 1996, 21 TexReg 11834.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scH/s25.424"><num value="25.424">§25.424</num><heading>Specifications for Signs</heading><content>(a) City pride, TNRCC, THC, and KTB signs.(1) Design.(A) A city pride sign:(i) shall be fabricated in conformance with department standard plan sheet CPS (CITY PRIDE SIGN);(ii) may contain a message no greater than eight inches in height identifying the municipality;(iii) shall meet the applicable provisions of the Texas MUTCD;(iv) shall have background material which conforms with department specifications;(v) shall be fabricated, erected, and maintained in conformance with department specifications and fabrication details; and(vi) shall have attachment signs spaced for a balanced appearance.(B) TNRCC, THC, or KTB signs:(i) shall meet the applicable provisions of the Texas MUTCD;(ii) shall have background material which conforms with department specifications; and(iii) shall be fabricated, erected, and maintained in conformance with department specifications and fabrication details.(2) Content. A city pride, TNRCC, THC, or KTB sign shall not contain:(A) advertising or words that may be construed as advertising, including, but not limited to, the offering of products and services;(B) notification of municipal ordinances or regulations;(C) attachments to the sign that extend beyond the sign borders; or(D) attachments to the supports, including banners and flags.(3) Placement. Subject to approval of the department, a city pride, TNRCC, THC, or KTB sign shall be installed or placed:(A) between 300 feet and 800 feet from the city limits;(B) to take advantage of natural terrain;(C) to have the least impact on the scenic environment;(D) to avoid visual conflict with other signs within the state highway right of way;(E) with a lateral offset greater than existing guide signs;(F) without blocking motorists' view of existing traffic control and guide signs; and(G) in locations other than hanging above the road.(4) Lighting. A sign approved for placement under paragraph (3) of this subsection may not display lighting.(5) Existing signs.(A) A municipality may not remove existing regulatory, warning, destination, guide, recreation, and cultural interest signs; provided, however, existing signs may be relocated with written permission of the department at the expense and responsibility of the municipality to the extent necessary to accommodate city pride, TNRCC, THC, or KTB signs.(B) The department may remove civic organizational or attachment signs from the right of way if a sign becomes damaged, broken, faded, or a hazard due to accidental damage or other causes, or to reduce the number of existing signs for the safety of the traveling public. If a municipality desires to install a city pride sign, any proposed or existing signs which meet the definitions of an attachment sign shall be placed on or transferred to the city pride sign at the expense of the municipality in accordance with this subchapter.(b) Attachment signs.(1) Design.(A) An attachment sign shall not exceed 48 inches in width or 36 inches in height.(B) An attachment sign may be any color or combination of colors.(2) Content.(A) An attachment sign may not:(i) consist of text, symbols, trademarks or a legend message identifying the name or abbreviation of a commercial establishment, service, or product; or(ii) contain supplemental address or directional information, such as meeting dates or locations.(B) An attachment sign may contain a message, symbol, or trademark only if the message, symbol, or trademark does not resemble an official traffic control device.</content><note type="source"><p>Source Note: The provisions of this §25.424 adopted to be effective December 16, 1996, 21 TexReg 11834; amended to be effective November 22, 1998, 23 TexReg 11664.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scH/s25.425"><num value="25.425">§25.425</num><heading>Program Operation</heading><content>(a) Civic organization application. A civic organization shall apply to the municipality.(b) Civic organization selection. The municipality will be responsible for selecting the civic organizations and placing the attachment signs.(c) Removal of civic organization attachment sign.(1) The municipality shall contact the civic organization in writing if the civic organization does not meet the requirements of §25.423 of this title (relating to Civic Organization Eligibility), or if the attachment sign is missing, damaged, broken, or faded.(2) The civic organization has 30 calendar days after written notification to meet the requirements of §25.423 of this title (relating to Civic Organization Eligibility). The civic organization has 60 calendar days after written notification to replace a missing, damaged, broken, or faded attachment sign.(3) The municipality shall remove an attachment sign of a participating civic organization if the civic organization:(A) ceases to exist;(B) does not meet the requirements of this subchapter, and all corrections are not made within the time limits set in the written notification; or(C) has not provided a replacement attachment sign within 60 calendar days of written notification that the attachment sign is damaged, broken, or faded or has become a hazard due to failure to build to specifications, inclement weather, inadequate maintenance, accidental damage, or other cause.(4) A sign not removed in compliance with paragraph (3) of this subsection is subject to removal by the department and the applicant is liable for removal and disposal costs as provided by §25.10 of this title (relating to Signs on State Highway Right of Way).</content><note type="source"><p>Source Note: The provisions of this §25.425 adopted to be effective December 16, 1996, 21 TexReg 11834.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c25/scI"><num value="I">SUBCHAPTER I</num><heading>SAFE ROUTES TO SCHOOL PROGRAM</heading><section identifier="/us/state/tx/tac/t43/p1/c25/scI/s25.500"><num value="25.500">§25.500</num><heading>Purpose</heading><content>Section 1404 of Public Law 109-59 created a federal Safe Routes to School Program. This subchapter implements this program. The overall purpose of this program is to enhance safety in and around school areas through a comprehensive program designed to improve the bicycle and pedestrian safety of school age children; encourage a healthy and active lifestyle from an early age; enable and encourage children, including those with disabilities, to walk and bicycle to school; and to facilitate projects and activities that will improve safety and reduce traffic, fuel consumption, and air pollution in the vicinity of schools. The Safe Routes to School Program is a competitive program funded through state and federal funds. The sections under this subchapter prescribe the policies and procedures for the implementation of the program.</content><note type="source"><p>Source Note: The provisions of this §25.500 adopted to be effective December 5, 2001, 26 TexReg 9917; amended to be effective July 18, 2002, 27 TexReg 6349; amended to be effective July 20, 2006, 31 TexReg 5668.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scI/s25.501"><num value="25.501">§25.501</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--The Texas Transportation Commission.(2) Department--The Texas Department of Transportation.(3) District--One of 25 geographical areas, managed by a district engineer, in which the department conducts its primary work activities.(4) Division--An organizational unit in the department's Austin headquarters.(5) Eligible school--A public or private school that contains any of the grades from kindergarten to eighth grade.(6) Executive director--The executive director of the Texas Department of Transportation or his or her designee.(7) On-system road--A road or highway that is a portion of the designated state highway system.(8) Off-system road--A road or highway open to the public that is not part of the designated state highway system, such as a county road or city street.(9) Public property--Property owned by a state, city, county, other public entity, or school district.(10) Program--The Safe Routes to School Program.(11) State highway system--The system of highways in the state included in a comprehensive plan prepared by the executive director with the approval of the commission, in accordance with Transportation Code, §201.103.</content><note type="source"><p>Source Note: The provisions of this §25.501 adopted to be effective December 5, 2001, 26 TexReg 9917; amended to be effective July 18, 2002, 27 TexReg 6349; amended to be effective July 20, 2006, 31 TexReg 5668; amended to be effective September 15, 2011, 36 TexReg 5950.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scI/s25.502"><num value="25.502">§25.502</num><heading>Project Eligibility</heading><content>(a) Types of projects. Projects eligible to receive funding under this program include those involving both infrastructure related and non-infrastructure related activities.(b) Infrastructure projects. Eligible infrastructure based projects include:(1) sidewalk improvements such as new sidewalks, widened sidewalks, sidewalk gap closures, sidewalk repairs, curb cuts for ramps, and the construction of curbs and gutters;(2) pedestrian/bicycle crossing improvements such as new or upgraded traffic signals, crosswalks, median refuges, pavement markings, traffic signs, pedestrian or bicycle over-crossings and under-crossings, flashing beacons, traffic signal phasing extensions, bicycle sensitive actuation devices, pedestrian activated signal upgrades, and sight distance improvements;(3) on-street bicycle facilities such as new or upgraded bicycle lanes, widened outside lanes or roadway shoulders, geometric improvements, turning lanes, channelization and roadway realignment, traffic signs, and pavement markings;(4) traffic diversion improvements including separation of pedestrians and bicycles from vehicular traffic adjacent to school facilities, and traffic diversion away from school zones or designated routes to a school;(5) off-street bicycle and pedestrian facilities including exclusive multi-use bicycle or pedestrian trails and pathways;(6) traffic calming measures for off-system roads such as roundabouts, traffic circles, curb extensions at intersections that reduce curb-to-curb roadway travel widths, center islands, full and half-street closures, and other speed reduction techniques;(7) secure bicycle parking facilities; and(8) other projects that promote pedestrian and bicycle safety of children in and around school areas.(c) Non-infrastructure projects. Non-infrastructure projects are those activities designed to encourage walking and bicycling to school. Eligible projects include:(1) public awareness campaigns and outreach efforts to the news media and community leaders;(2) traffic education and enforcement in the vicinity of schools;(3) providing student education on bicycle and pedestrian safety, health, and the environment; and(4) other projects that promote pedestrian and bicycle safety of children in and around school areas.(d) Location for infrastructure projects. Infrastructure projects must be located within public right of way within a two-mile radius of an eligible school. The proposal may include projects that are located:(1) on or off the dedicated state highway system; or(2) on private lands that have a public easement if there is a written legal easement or other written legally binding agreement that ensures public access to the project.(e) Project cost limitations. The executive director may limit the maximum amount of funding participation per project for each year of the program. This limitation will be based on the availability of and demand for program funding and may be established with each call for projects issued under this subchapter. The project cost limitation will apply to all projects submitted for consideration.(f) Eligible project boundaries.(1) Infrastructure project applications may be in connection with a single school campus, multiple schools, a region, or a school district.(2) Non-infrastructure projects may cover a single school, multiple schools, school district, multiple school districts, multiple regions, or be statewide in nature.(g) Projects proposed on the state highway system. Any proposed infrastructure project under this program on the state highway system will not be eligible if the district finds that the project interferes or disrupts any planned improvements or existing infrastructure.</content><note type="source"><p>Source Note: The provisions of this §25.502 adopted to be effective December 5, 2001, 26 TexReg 9917; amended to be effective July 18, 2002, 27 TexReg 6349; amended to be effective July 20, 2006, 31 TexReg 5668.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scI/s25.503"><num value="25.503">§25.503</num><heading>Project Application</heading><content>(a) Call for applications. The department will call for applications for Safe Routes to School projects by publication in the Texas Register. This notice will contain information on the application, application content, and submission deadlines. The department will also consider alternative means of publication of the program announcement as necessary to reach interested local jurisdictions and interested parties.(b) The department will issue separate applications for infrastructure and non-infrastructure projects.(c) Who may apply.(1) For infrastructure projects the department will accept and consider candidate projects from state agencies and political subdivisions.(2) For non-infrastructure projects the department will accept and consider candidate projects from state agencies, political subdivisions, schools, school districts, non-profit organizations, and for-profit organizations, or any combination of these entities.(d) How to submit a project.(1) Applications for infrastructure projects must be submitted to the district engineer of the district responsible for the area in which the proposed project will be constructed.(2) If the limits of the project extend to more than one district, the applicant should contact the responsible division for the appropriate district office to submit the application prior to the due date.(3) Project applications for non-infrastructure projects must be submitted to the responsible division administering the program as identified in the department's call for projects.(4) The application must be completed and returned to the appropriate office within the required deadlines as described in the project call for applications notification.(5) The candidate project must utilize the application forms prescribed by the department for this purpose.(6) Copies of the application forms and the Safe Routes to School Program Guidelines will be available at each department district as well as from the responsible division in Austin. The documents will also be published on the department web site.</content><note type="source"><p>Source Note: The provisions of this §25.503 adopted to be effective December 5, 2001, 26 TexReg 9917; amended to be effective July 18, 2002, 27 TexReg 6349; amended to be effective July 20, 2006, 31 TexReg 5668.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scI/s25.504"><num value="25.504">§25.504</num><heading>Project Evaluation and Selection</heading><content>(a) Application evaluation. The responsible division will review each program application for completeness and compliance with project eligibility requirements described in §25.502 of this subchapter. Applications that do not comply with these requirements or that are not received by the published deadline will not be evaluated.(b) Project evaluation process.(1) The executive director or designee will appoint a project evaluation committee of department staff with expertise in bicycle safety, pedestrian safety, roadway safety, roadway design, traffic engineering, or other related fields to review, evaluate, and make recommendations on the proposals submitted for the program.(2) The department's Bicycle Advisory Committee, as created under §1.85 of this title (relating to department advisory committees), will also serve as a project evaluation committee to review, evaluate, and make recommendations on the proposals submitted for the program.(3) The project advisory committees will evaluate the proposals using the evaluation methodology developed by the responsible division administering the program.(4) The project advisory committees will provide their project selection recommendations and supporting documentation to the director of the responsible division administering the program.(5) The director of the responsible division administering the program will recommend a program of candidate projects for consideration by the commission.(c) Selection criteria for infrastructure projects. Safe Routes to School applications for infrastructure projects meeting all requirements included in §25.502 will be evaluated based on the following selection criteria:(1) identification of current and potential safe walking and bicycling routes to school;(2) the potential of the proposal to create a safer walking and bicycling built environment within two miles of a school;(3) the demonstrated need of the community and the children served;(4) identification of safety hazards;(5) the potential of the proposal to reduce child injuries and fatalities;(6) the potential of the proposal to encourage walking and bicycling among students;(7) support for the project by the community and interested parties;(8) identification of detailed construction costs;(9) compliance with design criteria established by the responsible division;(10) applications that demonstrate a link to an existing or planned comprehensive traffic safety plan; and(11) other factors relating to the proposed project deemed necessary to promote pedestrian and bicycle safety of children in and around school areas.(d) Selection criteria for non-infrastructure projects. Safe Routes to School applications for non-infrastructure projects meeting all requirements included in §25.502 of this subchapter will be evaluated on the following selection criteria:(1) identification of the current and potential overall need for programs to encourage and promote walking and bicycling to the proposed project location;(2) identification of existing safety hazards and the need for a behavioral program to increase awareness of those issues;(3) the potential of the proposal to reduce child injuries and fatalities through education, enforcement, or other activities;(4) the potential of the proposal to encourage walking and bicycling among students;(5) support for the project by the community and interested parties;(6) a plan for evaluating the success of the project; and(7) other factors deemed necessary to promote pedestrian and bicycle safety of children in and around school areas.(e) Commission approval. Approval by the commission will be based on the recommendations from the director of the responsible division administering the program, funding availability, the safety of the traveling public, the overall goals of the program, and safety in and around school areas.(f) Approved projects. After approval by the commission, the department will notify applicants of the project selection status.(1) Approved infrastructure projects must comply with design, plan preparation, letting requirements, and other requirements established by the director of the responsible division.(2) Approved non-infrastructure projects must comply with the requirements established by the director of the responsible division included in the call for project proposals.</content><note type="source"><p>Source Note: The provisions of this §25.504 adopted to be effective July 18, 2002, 27 TexReg 6349; amended to be effective July 20, 2006, 31 TexReg 5668.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scI/s25.505"><num value="25.505">§25.505</num><heading>Project Funding and Monitoring</heading><content>(a) Reimbursement. The Safe Routes to School Program is a reimbursement program for costs incurred. Any costs incurred by applicants prior to project approval, final contract execution, and federal project authorization are not eligible for reimbursement under the program.(b) Funding allocations between project types. Non-infrastructure based projects will make up at least 10% and no more than 30% of the overall program funding. The exact proportion of infrastructure to non-infrastructure funding will be determined by the department.(c) Local contribution. No local contribution is required for projects submitted for funding under the Safe Routes to School Program.(d) Project overruns. Project overruns will be evaluated by the responsible division administering the program on a case-by-case basis to determine if the project will continue and how the additional costs will be covered.(e) Commission allocation for state initiated projects. The commission may allocate funds to the department for use on the state highway system for Safe Routes to School projects initiated by the department.(f) Project monitoring and evaluation. The department will monitor and evaluate the effectiveness of each project funded on this subchapter to ensure compliance with state and federal law and regulation. Each recipient of funding is required to cooperate fully with the department in this process.</content><note type="source"><p>Source Note: The provisions of this §25.505 adopted to be effective effective July 20, 2006, 31 TexReg 5668.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c25/scJ"><num value="J">SUBCHAPTER J</num><heading>RESTRICTIONS ON USE OF STATE HIGHWAYS</heading><section identifier="/us/state/tx/tac/t43/p1/c25/scJ/s25.601"><num value="25.601">§25.601</num><heading>Purpose</heading><content>(a) Transportation Code, §545.0651 and §545.0652 authorize a municipality, a county, or the Texas Department of Transportation to restrict through traffic, by class of vehicle, to two or more designated lanes of traffic on certain portions of the designated state highway system. Section 545.0651 and §545.0652 require a municipality or county to submit a description of the proposed restriction to the department for review and approval prior to adoption. This subchapter prescribes responsibilities of municipalities and counties relating to restricting use of a highway on the state highway system to designated lanes, and requirements for obtaining department approval of those restrictions. This subchapter also describes the procedures that will be followed by the department when initiating a lane restriction permitted under Transportation Code, §545.0651.(b) Transportation Code, §545.0653 authorizes the department to restrict a commercial motor vehicle to a specific lane of traffic in a construction or maintenance work zone if a traffic study performed by the department shows that the restriction will improve safety. Section 25.605 of this chapter describes the procedures that the department will follow when lane restrictions are imposed as authorized under Transportation Code, §545.0653.(c) This subchapter does not apply to the routing of oversize or overweight vehicles for which a permit is issued under Transportation Code, Chapter 623 and Chapter 28 of this title (relating to Oversize and Overweight Vehicles and Loads).</content><note type="source"><p>Source Note: The provisions of this §25.601 adopted to be effective February 19, 1998, 23 TexReg 1326; amended to be effective January 8, 2004, 29 TexReg 230; amended to be effective December 9, 2015, 40 TexReg 8798.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scJ/s25.602"><num value="25.602">§25.602</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:(1) Class of vehicle--All or any of the types of vehicles, machines, tractors, trailers, or semitrailers, or any combination thereof, propelled or drawn by mechanical power and used on a highway. A class of vehicle includes, but is not limited to:(A) a semitrailer;(B) special mobile equipment;(C) a trailer; or(D) a truck.(2) Commission--The Texas Transportation Commission.(3) Controlled access facility--As defined in Transportation Code, §203.001, a designated state highway to or from which access is denied or controlled, in whole or in part, from or to adjoining real property or an intersecting public or private way, without regard to whether the designated state highway is located in or outside a local jurisdiction as defined in this subchapter.(4) Department--The Texas Department of Transportation.(5) District--One of 25 geographical areas, managed by a district engineer, in which the department conducts its primary work activities.(6) Executive Director--The executive director of the Texas Department of Transportation or his or her designee.(7) Highway--A public roadway that:(A) is in the designated state highway system;(B) is designated a controlled access facility; and(C) has a minimum of three travel lanes, excluding access or frontage roads, in each direction of traffic that may be part of a single roadway or may be separate roadways that are constructed as an upper and lower deck.(8) Local jurisdiction--A home-rule, general law, or special law municipality, incorporated under the laws of the state of Texas or any of the state's 254 counties.(9) Order--A resolution or order of a county commissioners court or municipal ordinance.(10) Restricted lanes--two or more lanes restricted by class of vehicle.(11) State highway system--The system of highways in the state included in a comprehensive plan prepared by the executive director with the approval of the commission, in accordance with Transportation Code, §201.103.(12) Written transcript--A verbatim record of a meeting required under this subchapter as prepared and certified by a court reporter or by an employee of a local jurisdiction and certified by an appropriate official of a local jurisdiction.(13) Commercial motor vehicle--Has the meaning assigned by Transportation Code, §548.001.(14) Construction or maintenance work zone--Has the meaning assigned by Transportation Code, §472.022.</content><note type="source"><p>Source Note: The provisions of this §25.602 adopted to be effective February 19, 1998, 23 TexReg 1326; amended to be effective January 8, 2004, 29 TexReg 230; amended to be effective December 9, 2015, 40 TexReg 8798.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scJ/s25.603"><num value="25.603">§25.603</num><heading>Development of Proposed Restriction by Local Jurisdictions</heading><content>(a) Costs. Each local jurisdiction is responsible for all costs related to restriction development, including proposal preparation, local jurisdiction public hearings, and public information announcements regarding the order enforcing the restriction.(b) Initial contact. A local jurisdiction evaluating whether to establish an order shall contact and coordinate with the local district office of the department and with any other local jurisdiction with contiguous boundaries to the proposed lane restriction. Coordination with the local metropolitan planning organization and the local emergency planning council or committee is encouraged.(c) Route analysis and order formulation. A local jurisdiction intending to establish an order that restricts through traffic by class of vehicle to designated lanes shall fully comply with all of the standards and factors listed in Transportation Code, §545.0651 and §545.0652. Those standards and factors require an order to:(1) apply only to a highway as defined in Transportation Code, §545.0651, and this subchapter;(2) allow a restricted vehicle to use any lane of the highway to pass another vehicle and to enter or exit the highway; and(3) designate lane restrictions, to the greatest extent practicable, on the same lanes as a contiguous local jurisdiction when the lane restrictions end at another jurisdiction's boundaries.(d) Local public hearing. A local jurisdiction shall hold at least one public hearing on any proposed order that restricts through traffic by class of vehicle to designated lanes. A city council or county commissioners court meeting that conforms with all applicable state laws governing public meetings, including the Texas Open Meetings Act, Government Code, Chapter 551, and which allows the public to comment on the proposed order at the meeting will satisfy the requirements of this subsection. Public notification of the hearing shall contain a complete description of the proposed restriction, including the location, route numbers, and beginning and ending points of the restriction.(e) Proposal submission. A local jurisdiction that has drafted a proposed order that restricts through traffic by class of vehicle to designated lanes, and has conducted a public hearing in compliance with subsection (d) of this section, shall submit six copies of the proposed order to the department for approval. The proposal shall be submitted to the local district office of the department, and shall include:(1) documentation demonstrating compliance with Transportation Code, §545.0651, and this subchapter;(2) two original plan views of the roadway and a complete description of the proposed restriction;(3) a signature of approval by an authorized official of the local jurisdiction such as the mayor, city manager, county judge, county engineer, or an equivalent level of authority; and(4) a written transcript of any public comments received concerning the proposed order.(f) Proposal review. The department, when reviewing a proposed order and evaluating the impact of a proposed restriction, shall comply with the requirements of Transportation Code, §545.0651 and §545.0652, and this subchapter. The department shall also ensure a systems approach in order to preclude the designation of inconsistent lane restrictions among adjacent local jurisdictions. To be approved, a proposed restriction is subject to the following requirements and restrictions.(1) The order must allow a restricted vehicle to use any lane of the highway to pass another vehicle and to enter and exit the highway.(2) The department will conduct a traffic study to evaluate the impact of the proposed restriction. Any restriction must not increase the existing level of congestion as determined by highway capacity analysis.(3) Contiguous local jurisdictions must consult each other when designating restrictions that end at another local jurisdiction's boundaries. To the greatest extent practicable, all lane restrictions shall be designated on the same lanes in each local jurisdiction.(g) Public involvement. The department shall provide the public with notice of a proposed order by publishing a notice in the Texas Register. The notice will provide a complete description of the proposed restriction, shall inform the public of a 30-day public comment period, and shall inform the public where to send any written comments concerning the restriction. Except as provided in subsection (h) of this section, if the comments received warrant further public consideration, the department may conduct a public hearing to receive additional comments on the proposed order. If a public hearing is to be conducted, the department will publish appropriate notice in the Texas Register at least 10 days prior to the date of the hearing. Public hearings under this subsection shall be held in the local district office or other suitable location as determined by the department.(h) Public hearing involving multiple proposals. If contiguous local jurisdictions each submit proposed orders containing lane restrictions that apply to the same highway route, the department shall hold at least one public hearing on the proposed orders. The requirements of subsection (g) of this section relating to public notice, location, and conduct of the hearing shall apply to a public hearing under this subsection.(i) Authorization and approval. If the department determines that an order has met all of the criteria in subsection (f) of this section, the department will notify the local jurisdiction in writing that the proposed order is authorized and approved. A local jurisdiction that is issued a letter of authorization and approval shall formally designate the routes affected by order and shall forward a copy of the adopted order to the department.(j) Disapproval and appeal.(1) If a proposed order is disapproved, the department will notify the local jurisdiction in writing of the reasons for disapproval.(2) If the executive director designates another department official, such as the district engineer of the local district office, to evaluate and approve a proposed order, a local jurisdiction may submit an appeal of a disapproved order to the executive director. If no designation is made, the decision of the executive director is final.(k) Restriction signing. After approval of the restriction and passage of the order, but prior to enforcement of the restrictions, the department shall provide, install, and maintain appropriate traffic control devices along the restricted route, in accordance with Transportation Code, §545.0651(g) and §545.0652(g).(l) Suspension or rescission of order approval. The executive director may suspend or rescind approval of an order restricting through traffic by class of vehicle to designated lanes of a highway. Prior to suspension or rescission of approval, the department will notify the appropriate authorized officials of the local jurisdiction. A local jurisdiction may appeal a suspension or rescission to the executive director if authority to suspend or rescind an approved order has been delegated to another department official. Otherwise, the decision of the executive director is final. The department may suspend or rescind approval for the following reasons:(1) changes in pavement conditions;(2) changes in traffic conditions;(3) geometric changes in roadway configuration;(4) construction or maintenance activities; or(5) emergency or incident management.</content><note type="source"><p>Source Note: The provisions of this §25.603 adopted to be effective February 19, 1998, 23 TexReg 1326; amended to be effective January 8, 2004, 29 TexReg 230.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scJ/s25.604"><num value="25.604">§25.604</num><heading>Department Initiated Lane Restrictions</heading><content>(a) Commission action. The commission may restrict, by class of vehicle, through traffic to two or more designated lanes of a highway.(b) Consultation. Prior to adopting a lane restriction, the department will consult with any local jurisdiction in whose boundaries the lane restriction would be located.(c) Route analysis and restriction formulation. Before establishing a lane restriction, the department will ensure that the restriction:(1) applies only to a highway as defined in Transportation Code, §545.0651, and this subchapter;(2) allows a restricted vehicle to use any lane of the highway to pass another vehicle and to enter or exit the highway; and(3) is, to the greatest extent practicable, on the same lane as an existing lane restriction of a local jurisdiction when the lane restriction ends at the local jurisdiction's boundaries.(d) Local public hearing. The department will hold at least one public hearing on any proposed lane restriction. The hearing will conform to all applicable state laws governing public meetings, including the Open Meetings Act, Government Code, Chapter 551, and allow the public to comment on the proposed restriction at the hearing. Public notification of the hearing will be published in the Texas Register at least 10 days prior to the meeting and provide a 30-day comment period. This notice will contain a complete description of the proposed restriction, including the location, route numbers, and beginning and ending points of the restriction. Public hearings under this subsection will be held in the local district office or other suitable locations as determined by the department.(e) Criteria for department initiated lane restrictions. When initiating a lane restriction the department will:(1) comply with the requirements of Transportation Code, §545.0651, and this subchapter;(2) ensure a systems approach in order to preclude the designation of inconsistent lane restrictions among adjacent local jurisdictions; and(3) conduct a traffic study to evaluate the impact of any department initiated restriction, including a determination that the proposed department lane restriction will not increase the existing level of congestion as determined by highway capacity analysis.(f) Commission approval. Before approving a department initiated lane restriction, the commission will consider the following factors:(1) results of the traffic study conducted under subsection (e)(3) of this section and all potential impacts the restriction may have on existing traffic flow;(2) crash history;(3) geometric configuration of the highway;(4) any current or planned construction or maintenance activities and how those activities may affect the proposed lane restriction;(5) impact of the proposed lane restriction on emergency and incident management activities; or(6) other factors deemed necessary by the department.(g) Restriction signing. Before a restriction may be enforced, the department will provide, install, and maintain appropriate traffic control devices along the restricted route, in accordance with Transportation Code, §545.0651(g).(h) Suspension or rescission of restriction.(1) The commission may suspend or rescind a lane restriction initiated by the department based upon the factors contained in subsection (f) of this section. Prior to suspension or rescission, the department will notify any impacted local jurisdiction.(2) In an emergency (such as incident management, inclement weather, maintenance or construction activities, or other factors) the executive director may temporarily suspend a department initiated lane restriction. Such a suspension may remain in effect for a period of 90 days after which time the temporary suspension must be either removed or approved by the commission.</content><note type="source"><p>Source Note: The provisions of this §25.604 adopted to be effective January 8, 2004, 29 TexReg 230.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scJ/s25.605"><num value="25.605">§25.605</num><heading>Department Initiated Lane Restrictions in Construction or Maintenance Work Zones</heading><content>(a) The executive director may restrict a commercial motor vehicle to a specific lane of traffic in a construction or maintenance work zone for a highway that is part of the state highway system if the executive director determines that, based on traffic study performed by the department to evaluate the effect of the restriction, the restriction is necessary to improve safety.(b) The traffic study must include a review of:(1) the percentage of all vehicles in the construction or maintenance work zone that is anticipated to be commercial motor vehicles;(2) the lane configurations in the work zone;(3) lane widths in the work zone;(4) the roadway geometry in the work zone; and(5) the speed limit in the work zone.(c) If the executive director imposes a lane restriction under this section, the department shall erect and maintain official traffic control devices informing the driving public of that restriction. A lane restriction may not be enforced until the appropriate traffic control devices are in place.(d) The executive director may rescind a lane restriction imposed under this section at any time that the executive director determines that the restriction is no longer necessary to improve safety.(e) A lane restriction imposed under this section expires when the lane that is subject to the restriction is no longer in a construction or maintenance work zone.(f) The department shall remove traffic control devices erected under this section if the lane restriction is rescinded under subsection (d) or expires under subsection (e).</content><note type="source"><p>Source Note: The provisions of this §25.605 adopted to be effective December 9, 2015, 40 TexReg 8798.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c25/scL"><num value="L">SUBCHAPTER L</num><heading>TELECOMMUNICATIONS FACILITIES</heading><section identifier="/us/state/tx/tac/t43/p1/c25/scL/s25.801"><num value="25.801">§25.801</num><heading>Purpose</heading><content>Transportation Code, Chapter 202, Subchapter E, authorizes the department to enter into a lease or other agreement with a telecommunications provider to allow the provider to place its telecommunications facilities on department right of way or to use facilities owned by the state. This subchapter prescribes the policies and procedures governing access by an agreement other than a lease.</content><note type="source"><p>Source Note: The provisions of this §25.801 adopted to be effective September 15, 1998, 23 TexReg 9432.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scL/s25.802"><num value="25.802">§25.802</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Department--The Texas Department of Transportation including the Texas Turnpike Authority Division.(2) Executive director--The executive director of the department or his or her designee not below the level of district engineer, division director, or office director. For projects of the Texas Turnpike Authority Division of the Texas Department of Transportation, executive director means the Texas Turnpike Authority Board or the director of the Texas Turnpike Authority Division.(3) Improved portion--Any portion of the right of way that has been graded or to which surface material has been applied.(4) Median--The improved portion of the right of way of a divided highway either between opposing directions of travel or between the frontage road and the main travel lanes.(5) State highway--A segment of the system of highways in the state included in a comprehensive plan prepared by the department's executive director under the direction and with the approval of the commission in accordance with Transportation Code, §221.001.(6) Telecommunications--A transmission, emission, or reception of signs, signals, writings, images, or sounds of intelligence of any nature by wire, radio, optical, or other electromagnetic systems.</content><note type="source"><p>Source Note: The provisions of this §25.802 adopted to be effective September 15, 1998, 23 TexReg 9432.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scL/s25.803"><num value="25.803">§25.803</num><heading>Use of Department Facilities</heading><content>(a) Agreement.(1) The department may enter into an agreement with a telecommunications provider if the provisions of the agreement would:(A) be of general benefit to the department;(B) be consistent with the department's safety, maintenance, operation, and beautification objectives;(C) allow the department to maximize revenue; and(D) advance the department's efforts to share or develop its own telecommunications program.(2) The agreement will allow the provider to:(A) place the provider's telecommunications facilities within the median of a divided state highway; or(B) use telecommunications facilities owned or installed by the department in or on the improved portion of a state highway, including the median, structures, equipment, conduit, or other component of the highway facility.(3) The agreement may provide for consideration to the department in the form of:(A) payment;(B) shared use of a telecommunication facility; or(C) equipment, facilities, or services.(4) The agreement will contain the specific details of each project. This agreement may include, but not be limited to, requirements concerning:(A) traffic control;(B) bonds and insurance;(C) coordination with existing and future department construction projects;(D) relocations; and(E) testing and inspection of telecommunications facilities.(b) Traditional utility accommodation. Nothing in this section limits a telecommunications provider's ability to place facilities in the right of way as authorized by state law and in accordance with §§21.31-21.56 of this title (relating to Utility Accommodation).(c) Coordination with local governments. The agreement may require that, prior to installation, the provider demonstrates to the department that all affected city and county governments have been notified of the proposed placement of telecommunications facilities within their jurisdictions.(d) Federal Highway Administration approval. The placement of telecommunications facilities on federal-aid highways is subject to the approval of the Federal Highway Administration.</content><note type="source"><p>Source Note: The provisions of this §25.803 adopted to be effective September 15, 1998, 23 TexReg 9432.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scL/s25.804"><num value="25.804">§25.804</num><heading>Request for Proposals</heading><content>(a) Notice. The department will publish a notice of intent to issue a request for proposals for the use of telecommunications facilities owned or installed by the department or for the placement of telecommunications facilities in the right of way. The notice will be published in at least two general circulation newspapers, on the department's Internet web site, and in the Texas Register at least 45 calendar days prior to the deadline for submission of a proposal.(b) Content. The request for proposal will include, but not be limited to, the:(1) description of the project;(2) geographic location and extent of the project;(3) technical construction and implementation information;(4) date and time by which all complete proposals must be submitted;(5) number of copies required; and(6) required format and maximum length.</content><note type="source"><p>Source Note: The provisions of this §25.804 adopted to be effective September 15, 1998, 23 TexReg 9432.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scL/s25.805"><num value="25.805">§25.805</num><heading>Proposals</heading><content>A proposal must be sealed and contain:(1) the contract number;(2) an organizational chart containing names of the:(A) prime provider and any subproviders proposed for the team and their contract responsibilities; and(B) key personnel proposed for the contract and percent of their time to be dedicated to the project.(3) a summary of the project team qualifications;(4) a clear and concise statement demonstrating an understanding of the scope and requirements of the project;(5) a description of how the provider proposes to meet the project's goals and objectives;(6) a proposed schedule of work which describes the provider's internal methods for schedule control;(7) an audited financial statement dated no later than the preceding fiscal year;(8) supporting information, such as charts, photographs, graphs, resumes, and references; and(9) other pertinent information addressed in the notice.</content><note type="source"><p>Source Note: The provisions of this §25.805 adopted to be effective September 15, 1998, 23 TexReg 9432.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scL/s25.806"><num value="25.806">§25.806</num><heading>Selection Process</heading><content>(a) Evaluation. The executive director will consider the following factors in evaluating the proposals:(1) consistency with the department's safety, maintenance, operation, and beautification objectives;(2) maximization of revenue or development of department telecommunications infrastructure; and(3) any other benefit to the department.(b) Counteroffer and negotiation.(1) The executive director may discuss an acceptable or potentially acceptable proposal with a telecommunications provider to assess the provider's ability to meet the solicitation requirements.(2) The executive director may permit the provider to revise its proposal in order to obtain the best final offer. If one provider is offered the opportunity to discuss and revise its offer, then all providers who meet the requirements will receive the same opportunity.(3) The executive director will not discuss or disclose the contents of competing proposals during the process of negotiation.(4) The executive director may reject all offers.(5) The executive director will notify the selected provider in writing.(c) Execution.(1) Agreement. The provider shall sign the agreement within 90 working days from the date of notification to the provider.(2) Exclusivity. The agreement may allow for the exclusive use of a portion of the department's median or other facilities. The agreement may require the provider to be a wholesaler of telecommunications capacity.(3) Termination. The agreement will include provisions for termination and may include provisions requiring removal of improvements at the provider's cost in connection with termination.(4) Access to right of way.(A) The provider shall give the department 48 hours prior notice before entering department right of way to perform any installation, maintenance, or operation. The provider must follow a traffic control plan which incorporates the requirements of the Texas Manual on Uniform Traffic Control Devices.(B) The telecommunications provider may enter department right of way to correct an emergency situation if the department is notified as soon as practical after the event. Even under emergency conditions the provider shall follow traffic safety control procedures.(5) Maintenance. In the absence of specific provisions in the agreement, the telecommunications provider is responsible for all maintenance associated with installations.</content><note type="source"><p>Source Note: The provisions of this §25.806 adopted to be effective September 15, 1998, 23 TexReg 9432.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c25/scM"><num value="M">SUBCHAPTER M</num><heading>TRAFFIC SAFETY PROGRAM</heading><section identifier="/us/state/tx/tac/t43/p1/c25/scM/s25.901"><num value="25.901">§25.901</num><heading>Purpose</heading><content>The purpose of this subchapter is to provide an orderly and efficient system of traffic safety program grant agreements or contracts between the department and local governments, state agencies, colleges, universities, individuals, and other public and private entities for the purpose of improving traffic safety and to facilitate compliance with applicable federal and state laws. This subchapter shall be construed to obtain these objectives.</content><note type="source"><p>Source Note: The provisions of this §25.901 adopted to be effective December 24, 1990, 15 TexReg 7100; amended to be effective March 22, 1996, 21 TexReg 2093; amended to be effective May 19, 2011, 36 TexReg 3111.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scM/s25.902"><num value="25.902">§25.902</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--The Texas Transportation Commission.(2) Common rule--Title 49, United States Code of Federal Regulations, Part 18, Uniform Administrative Requirements for Grants and Cooperative Agreements with State and Local Governments.(3) Contract--A Texas traffic safety program contract between the department and another state agency for the procurement of goods or services for a traffic safety project, and including expenditures pursuant to which are reimbursable, in whole or in part, by the department with traffic safety funds.(4) Department--The Texas Department of Transportation.(5) District--One of the 25 geographical areas into which the department divides the state.(6) DOT--The United States Department of Transportation.(7) FHWA--The Federal Highway Administration.(8) Grant agreement--A Texas traffic safety program agreement between a subgrantee and the department for the implementation of a traffic safety project which includes an approved project description and planned expenditures reimbursable, in whole or in part, by the department with traffic safety funds.(9) Local government--A county, city, incorporated village or town, council of government, or other jurisdiction existing, created, or organized under general, home-rule, or special laws of the state.(10) Monitoring--Project review and documentation that provides a method of tracking fiscal management and progress toward achievement of objectives.(11) National Highway Traffic Safety Administration (NHTSA)--A federal administration in DOT, which is responsible for the administrative oversight of traffic safety funds and programs among the various states.(12) Program--The Texas Traffic Safety Program consisting of a coordinated program planned and administered by the department under the Federal Highway Safety Act of 1966 and the Texas Traffic Safety Act of 1967.(13) Project--An activity or group of related activities having one or more defined objectives for improving traffic safety, a detailed plan for implementation, a schedule with milestones, a budget, and a method of evaluating accomplishments.(14) Prospective contractor--Any state agency, college, university, local government, public or private for-profit or nonprofit organization, or individual (other than the department) which is designated as a party in an approved contract.(15) State--The State of Texas.(16) State agency--A state office, officer, department, division, bureau, board, commission, legislative committee, authority, institution, or a subdivision of one of these entities.(17) Subgrantee--Any state agency, college, university, local government, public or private for-profit or nonprofit organization, or individual that receives traffic safety grant funds from the department, and which is accountable to the department for the use of the funds provided.(18) Texas highway safety plan--The document which identifies the state's traffic safety problems and describes the programs and projects to address those problems. It serves as the basis for the execution of a federal-aid agreement.(19) Uniform Grant and Contract Management Standards--The standards included in Chapter 783, Texas Government Code, concerning uniform grant and contract management standards for state agencies.</content><note type="source"><p>Source Note: The provisions of this §25.902 adopted to be effective December 24, 1990, 15 TexReg 7100; amended to be effective March 22, 1996, 21 TexReg 2093; amended to be effective May 19, 2011, 36 TexReg 3111.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scM/s25.903"><num value="25.903">§25.903</num><heading>Scope</heading><content>This subchapter governs the scope and content of program grant agreements and contracts and the means of determining whether costs of a proposed project will be eligible for reimbursement with traffic safety funds pursuant to a grant agreement or a contract with the department. They shall not be construed to enlarge, diminish, modify, or alter the power or authority of the department or any substantive rights of any person, organization, or political jurisdiction. This subchapter does not apply to purchase order contracts awarded in accordance with Government Code, Chapter 2155.</content><note type="source"><p>Source Note: The provisions of this §25.903 adopted to be effective December 24, 1990, 15 TexReg 7100; amended to be effective March 22, 1996, 21 TexReg 2093; amended to be effective May 19, 2011, 36 TexReg 3111.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scM/s25.904"><num value="25.904">§25.904</num><heading>Goals and Objectives</heading><content>The long-term goal of the program is to reduce traffic crashes and the resulting deaths, injuries, and property damage to the lowest possible level. Objectives which support this goal are established for the various functional areas of the program. These objectives may be revised by the department whenever it determines a need to do so. Current objectives for the program are published in the Texas highway safety plan.</content><note type="source"><p>Source Note: The provisions of this §25.904 adopted to be effective December 24, 1990, 15 TexReg 7100.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scM/s25.905"><num value="25.905">§25.905</num><heading>Availability of Documents</heading><content>(a) Forms. Forms issued by the department are available from the nearest district office or from the department's traffic operations division, traffic safety section.(b) State and federal regulations. Copies of pertinent state and federal regulations are maintained on file in the department's headquarters in Austin. Additional copies of federal regulations are generally available from the United States Government Printing Office.(c) Procedures. The highway traffic safety volume of the department's traffic operations manual establishes program and project management procedures in support of the program. A copy of these procedures is available from the department's traffic operations division, traffic safety section.</content><note type="source"><p>Source Note: The provisions of this §25.905 adopted to be effective December 24, 1990, 15 TexReg 7100; amended to be effective March 22, 1996, 21 TexReg 2093.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scM/s25.906"><num value="25.906">§25.906</num><heading>Participation</heading><content>(a) Any prospective subgrantee with traffic safety responsibility may have its project proposal considered for inclusion in the Texas highway safety plan.(1) Local governments wishing to submit a project proposal should contact the traffic safety section of the traffic operations division regarding their project proposals.(2) These proposals will be considered for inclusion in the Texas highway safety plan during the planning period which generally begins a year or more prior to the projected date of implementation for the project proposals.(3) Approval of federal funding for the Texas highway safety plan is normally not received by the department until just prior to the beginning of each federal fiscal year, which begins on October 1. In some instances the full amount of funding available for a given fiscal year is not known until after October 1 of that year. For this reason, the department may be unable to determine if a particular project proposal will be funded until after the beginning of the fiscal year in which it is to be implemented.(4) Except for those projects funded according to legislative or regulatory requirements, grant funding will be awarded according to the following criteria:(A) potential for impact on traffic safety;(B) quality of problem identification, supported by verifiable information or statistical data;(C) demonstration of a reasonable and logical solution for improving traffic safety; and(D) cost effectiveness.(b) To be eligible to receive traffic safety funds under a grant agreement entered into after January 1, 2012, an entity must have adopted an internal ethics and compliance program that satisfies the requirements of §10.51 of this title (relating to Internal Ethics and Compliance Program) and must enforce compliance with that program.</content><note type="source"><p>Source Note: The provisions of this §25.906 adopted to be effective December 24, 1990, 15 TexReg 7100; amended to be effective March 22, 1996, 21 TexReg 2093; amended to be effective May 19, 2011, 36 TexReg 3111.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scM/s25.907"><num value="25.907">§25.907</num><heading>Types of Projects Eligible</heading><content>A grant agreement or contract may be executed to provide funding assistance for projects which meet eligibility requirements for one or more of the following areas:(1) alcohol/drug countermeasures projects which support anti-driving while intoxicated and/or anti-driving under the influence of drug activities;(2) police traffic services projects which provide for improved enforcement and related activities;(3) occupant protection projects which provide for increasing the correct and legal use of occupant protection devices;(4) traffic records projects which improve statewide traffic records systems;(5) emergency medical services projects which provide training to technicians who administer aid to traffic crash victims, or which otherwise improve the emergency medical service system;(6) motorcycle safety projects which provide for increasing the safety of motorcycle riders and passengers;(7) safety and traffic engineering projects which provide improved roadway safety through engineering-related activities;(8) school bus safety projects that provide training for school bus drivers and pupil transportation administrators;(9) pedestrian and bicycle safety projects that focus on community school zones and public information and education materials;(10) community programs that combine multi-issue traffic safety efforts within the geographic and political confines of communities and college or university campuses; and(11) other projects approved by the commission and included in the approved Texas highway safety plan which may be implemented to eliminate or reduce the severity of certain defined traffic safety problems.</content><note type="source"><p>Source Note: The provisions of this §25.907 adopted to be effective December 24, 1990, 15 TexReg 7100; amended to be effective March 22, 1996, 21 TexReg 2093.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scM/s25.908"><num value="25.908">§25.908</num><heading>Activities and Other Items Not Eligible</heading><content>Program funds may not be expended for:(1) the purchase of radios, vehicles, emergency equipment, or any other hardware items, except when the department determines the purchase to be essential to the proper accomplishment of a project meeting the other criteria specified;(2) real property purchase, office construction, rehabilitation or remodeling, or for office furnishings and fixtures for state, local, or private buildings, or structures; or(3) out-of-state travel unless authorized in writing by the department.</content><note type="source"><p>Source Note: The provisions of this §25.908 adopted to be effective December 24, 1990, 15 TexReg 7100.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scM/s25.909"><num value="25.909">§25.909</num><heading>Basic Grant Agreement Requirements</heading><content>The department will furnish a standard grant agreement format to prospective subgrantees whose proposals are selected for funding. This document will include terms and conditions necessary to produce a sound and complete grant agreement.</content><note type="source"><p>Source Note: The provisions of this §25.909 adopted to be effective December 24, 1990, 15 TexReg 7100; amended to be effective March 22, 1996, 21 TexReg 2093.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scM/s25.910"><num value="25.910">§25.910</num><heading>General Acceptance Criteria</heading><content>(a) Each grant agreement submitted to the department for approval shall be reviewed for compliance with the applicable provisions.(b) Any grant agreement will be rejected if the Texas highway safety plan cannot provide sufficient funds for the particular type of project submitted.</content><note type="source"><p>Source Note: The provisions of this §25.910 adopted to be effective December 24, 1990, 15 TexReg 7100; amended to be effective March 22, 1996, 21 TexReg 2093.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scM/s25.911"><num value="25.911">§25.911</num><heading>Federal Rules and Regulations</heading><content>(a) The NHTSA and the FHWA are subject to the common rule, which is also applicable to the program.(b) The program is also subject to the program regulations promulgated by the NHTSA and FHWA.(c) Changes to federal rules and regulations applicable to the program will be implemented and incorporated into the rules governing the program.</content><note type="source"><p>Source Note: The provisions of this §25.911 adopted to be effective December 24, 1990, 15 TexReg 7100; amended to be effective March 22, 1996, 21 TexReg 2093.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scM/s25.912"><num value="25.912">§25.912</num><heading>Financial Reports</heading><content>As required by the common rule, but at variance with the Uniform Grant and Contract Management Standards, recipients of National Highway Traffic Safety Administration (NHTSA) grants shall use NHTSA or state financial reports.</content><note type="source"><p>Source Note: The provisions of this §25.912 adopted to be effective December 24, 1990, 15 TexReg 7100.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scM/s25.913"><num value="25.913">§25.913</num><heading>Project Monitoring</heading><content>The department will monitor and prepare reports on program performance to assure compliance with state and federal regulations and to assure that performance objectives are being met.</content><note type="source"><p>Source Note: The provisions of this §25.913 adopted to be effective March 22, 1996, 21 TexReg 2093.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c25/scN"><num value="N">SUBCHAPTER N</num><heading>MEMORIAL SIGN PROGRAM FOR VICTIMS OF IMPAIRED DRIVING AND MOTORCYCLE CRASHES</heading><section identifier="/us/state/tx/tac/t43/p1/c25/scN/s25.950"><num value="25.950">§25.950</num><heading>Purpose</heading><content>Transportation Code, §201.909 and §201.911, require the department to establish and administer memorial sign programs to publicly memorialize the victims of alcohol or controlled substance-related vehicle crashes, which is referred to in this subchapter as the Memorial Sign Program for Victims of Impaired Driving, and persons killed while riding or operating a motorcycle, which is referred to in this subchapter as the Memorial Sign Program for Victims of Motorcycle Crashes.</content><note type="source"><p>Source Note: The provisions of this §25.950 adopted to be effective December 6, 2007, 32 TexReg 8858; amended to be effective December 8, 2011, 36 TexReg 8255.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scN/s25.951"><num value="25.951">§25.951</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:(1) Applicant--A person requesting a sign under the Memorial Sign Program for Victims of Impaired Driving or the Memorial Sign Program for Victims of Motorcycle Crashes in accordance with this subchapter.(2) Department--The Texas Department of Transportation.(3) Impaired--Under the influence of alcohol or a controlled substance while operating a vehicle.(4) State highway system--The system of highways in the state included in a comprehensive plan approved by the Texas Transportation Commission, in accordance with Transportation Code, §201.103.</content><note type="source"><p>Source Note: The provisions of this §25.951 adopted to be effective December 6, 2007, 32 TexReg 8858; amended to be effective December 8, 2011, 36 TexReg 8255.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scN/s25.952"><num value="25.952">§25.952</num><heading>Application</heading><content>(a) A person may request the construction and installation of a sign memorializing one or more victims of an alcohol or controlled substance-related vehicle crash, or a motorcycle crash by following the procedures set out in this subchapter.(b) The applicant must submit on a form provided by the department an application that contains the following information:(1) the name of each victim for whom the sign is requested;(2) the location of the crash;(3) the date of the crash;(4) the name and contact information of the applicant; and(5) the name of one of the vehicle operators involved in the crash.(c) If the department notifies the applicant that a copy of the officer's accident report required to be submitted to the department by the reporting law enforcement agency under Transportation Code, §550.062, is not on file with the department, the applicant must submit a copy of that report.(d) The applicant may provide to the department additional government documents relating to the crash if necessary to establish that a driver was impaired.</content><note type="source"><p>Source Note: The provisions of this §25.952 adopted to be effective December 6, 2007, 32 TexReg 8858; amended to be effective February 18, 2010, 35 TexReg 1302; amended to be effective December 8, 2011, 36 TexReg 8255.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scN/s25.953"><num value="25.953">§25.953</num><heading>Determination of Program Eligibility</heading><content>(a) The officer's accident report for the crash will be used by the department to determine eligibility for a memorial sign.(b) If the application is for a memorial sign for a victim of an alcohol or controlled substance related vehicle crash and the officer's accident report does not indicate that the driver of one of the vehicles was impaired or that the use of alcohol or a controlled substance was a factor or condition of the accident, the department will review other governmental records provided by the applicant to determine eligibility for the sign.(c) To be eligible for a memorial sign for a victim of a motorcycle crash, the officer's accident report must indicate that the victim was operating or riding on a motorcycle.(d) To be eligible for a sign the officer's accident report must indicate that the crash occurred on the state highway system.(e) A person is not eligible for a memorial sign for the victim of an alcohol or controlled substance related vehicle crash if the victim was operating a vehicle involved in the crash and the officer's accident report or another submitted governmental document shows that the victim was impaired at the time of the crash.(f) A victim may be memorialized by only one sign, excluding a replacement sign, installed under this subchapter. The department will deny an application for a victim that is submitted after an application for the same victim has been approved.</content><note type="source"><p>Source Note: The provisions of this §25.953 adopted to be effective December 6, 2007, 32 TexReg 8858; amended to be effective December 8, 2011, 36 TexReg 8255.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scN/s25.954"><num value="25.954">§25.954</num><heading>Fee</heading><content>(a) A fee for a memorial sign installed under this subchapter is $350.(b) Upon approval of the application, the applicant must remit the fee to the department before construction of the sign may begin.</content><note type="source"><p>Source Note: The provisions of this §25.954 adopted to be effective December 6, 2007, 32 TexReg 8858; amended to be effective December 8, 2011, 36 TexReg 8255.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scN/s25.955"><num value="25.955">§25.955</num><heading>Sign Description</heading><content>(a) A sign will have a blue background with a white legend and:(1) the memorial sign for a victim of an impaired driver shall include the following elements:(A) the phrase "Please Don't Drink and Drive";(B) the phrase "In Memory of";(C) one line of text denoting the name of the victim, victims, or the phrase "The (family name) Family"; and(D) the date of the crash; or(2) the memorial sign for a victim of a motorcycle crash shall include the following elements:(A) a red cross;(B) the phrase "In Memory of";(C) one line of text denoting the name of the victim, victims, or the phrase "The (family name) Family"; and(D) the date of the crash.(b) The name of more than one victim may appear on a sign only if the length of the victims' names does not exceed one line of text. If the length of the names exceeds one line of text, or if requested by the applicant, a sign may display the family name of the victims.</content><note type="source"><p>Source Note: The provisions of this §25.955 adopted to be effective December 6, 2007, 32 TexReg 8858; amended to be effective February 18, 2010, 35 TexReg 1302; amended to be effective December 8, 2011, 36 TexReg 8255.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scN/s25.956"><num value="25.956">§25.956</num><heading>Sign Installation and Replacement</heading><content>(a) A sign may be installed under this subchapter only on state highway system right-of-way.(b) The department will install the sign as near the crash location as practical. In determining the sign location, the department will consider:(1) the safety of the traveling public; and(2) available space on state right-of-way for the sign.(c) If the sign is damaged, vandalized, or destroyed, during the posting period beginning on the date that the sign is installed, the department will reinstall the sign only if the applicant pays a replacement fee to cover the cost of the replacement sign. The amount of the replacement fee is equal to the amount of the fee set under §25.954 of this subchapter (relating to Fees).(d) The department will replace a sign that is damaged by the department without the payment of the replacement fee.</content><note type="source"><p>Source Note: The provisions of this §25.956 adopted to be effective December 6, 2007, 32 TexReg 8858; amended to be effective December 8, 2011, 36 TexReg 8255.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scN/s25.957"><num value="25.957">§25.957</num><heading>Sign Removal</heading><content>(a) The department will remove a sign installed under the Memorial Sign Program for Victims of Impaired Driving or its replacement on the second anniversary of the date that the original sign was installed.(b) The department will remove a sign installed under the Memorial Sign Program for Victims of Motorcycle Crashes or its replacement on the first anniversary of the date that the original sign was installed.(c) The department will notify the applicant after the sign has been removed. The notice will provide information on how the applicant may take possession of the sign. If the applicant fails to take possession of the sign within 30 days after the date on which notice is given under this subsection, the department will destroy the sign.</content><note type="source"><p>Source Note: The provisions of this §25.957 adopted to be effective December 6, 2007, 32 TexReg 8858; amended to be effective December 8, 2011, 36 TexReg 8255.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c25/scO"><num value="O">SUBCHAPTER O</num><heading>CRASH RECORDS INFORMATION SYSTEM</heading><section identifier="/us/state/tx/tac/t43/p1/c25/scO/s25.971"><num value="25.971">§25.971</num><heading>Purpose</heading><content>Transportation Code, Chapter 550 provides that the Texas Department of Transportation shall be the official repository for all operator and officer motor vehicle accident reports and all reports of medical examiners and justices of the peace prepared to record a motor vehicle accident fatality. This subchapter sets out additional information necessary for collecting reports of medical examiners and justices of the peace and amending accident reports.</content><note type="source"><p>Source Note: The provisions of this §25.971 adopted to be effective January 3, 2008, 32 TexReg 10066.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scO/s25.972"><num value="25.972">§25.972</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Department--The Texas Department of Transportation.(2) Medical examiner--The medical examiner appointed by a county commissioners court to determine the cause of all non-natural deaths or the justice of the peace if the county has not appointed a medical examiner.</content><note type="source"><p>Source Note: The provisions of this §25.972 adopted to be effective January 3, 2008, 32 TexReg 10066.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scO/s25.973"><num value="25.973">§25.973</num><heading>Medical Examiner's Report</heading><content>(a) A medical examiner shall submit to the department on a form prescribed by the department a report detailing the death of a person resulting from a traffic accident within the medical examiner's jurisdiction.(b) The medical examiner's report must include:(1) the name of the deceased;(2) the date of the accident;(3) the county in which the accident occurred;(4) whether the deceased was a:(A) vehicle operator;(B) vehicle passenger; or(C) pedestrian or other person who was not an occupant in a vehicle;(5) if the fatality was the result of a bridge collapse as defined in Transportation Code, §550.081(2);(6) the location of the bridge if the fatality was the result of a bridge collapse; and(7) except as provided by subsection (c) of this section, the results of any toxicological testing conducted on the deceased and the name of the laboratory, medical examiner's office, or other facility that conducted the testing.(c) If a toxicological test is conducted and the results are not available at the time the report to the department is due, the medical examiner shall:(1) note on the report: "toxicological test results unavailable;" and(2) as soon as practicable after the toxicological test results become available, submit a supplemental report that contains the results of the toxicological testing and the name of the testing facility.(d) The department will make the reporting form available on the department's web site at www.txdot.gov (keyword "toxicology reporting").(e) Not later than the 11th day of each month, the medical examiner shall submit the reports covering the deaths resulting from traffic accidents that occurred during the preceding three months, including those occurring as a result of a bridge collapse, except that the medical examiner is not required to submit information that was previously submitted to the department.(f) The department will accept monthly and supplemental medical examiner's reports via:(1) United States Mail at the address located on the report form;(2) facsimile at the number contained on the report form; or(3) the department's Internet website, when such a capability is available.</content><note type="source"><p>Source Note: The provisions of this §25.973 adopted to be effective January 3, 2008, 32 TexReg 10066; amended to be effective March 18, 2010, 35 TexReg 2207.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scO/s25.974"><num value="25.974">§25.974</num><heading>Officer Accident Report Modifications</heading><content>(a) This section applies only to accident reports filed with the department under Transportation Code, §550.061 or §550.062.(b) The department may correct the location of an accident in an accident report if the department determines that, using the department's mapping system, the reported location is incorrect.(c) The department will accept a change to an accident report filed under Transportation Code, §550.062, only from the law enforcement officer who prepared the report or an officer in that officer's chain of command.</content><note type="source"><p>Source Note: The provisions of this §25.974 adopted to be effective January 3, 2008, 32 TexReg 10066.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scO/s25.975"><num value="25.975">§25.975</num><heading>Crash Record Statistical Analysis</heading><content>(a) The department will classify motor vehicle crashes by the standards established in the following manuals available through the department web site at www.txdot.gov:(1) the Manual on Classification of Motor Vehicle and Traffic Accidents as adopted by the American Standards Institute, Inc.; and(2) the Minimum Model Uniform Crash Criteria (MMUCC) Guideline.(b) For department reporting purposes, only a death caused by the crash that occurs within 30 days after the motor vehicle crash will be counted as a motor vehicle traffic crash fatality.</content><note type="source"><p>Source Note: The provisions of this §25.975 adopted to be effective October 16, 2008, 33 TexReg 8558; amended to be effective December 12, 2013, 38 TexReg 8928.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scO/s25.976"><num value="25.976">§25.976</num><heading>Reporting by Involved Drivers</heading><content>(a) A driver involved in a motor vehicle crash that is not investigated by law enforcement is required to submit a driver's crash report within 10 days of the date of the crash on a form prescribed by the department if the crash resulted in: (1) injury to or the death of a person; or (2) $1000 or more of property damage to the property of any one person. (b) The form is available through the department website at www.txdot.gov.</content><note type="source"><p>Source Note: The provisions of this §25.976 adopted to be effective October 16, 2008, 33 TexReg 8558.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c25/scO/s25.977"><num value="25.977">§25.977</num><heading>Reporting by Investigating Officers</heading><content>(a) A law enforcement officer who investigates a motor vehicle crash shall submit a crash record report within 10 days of the accident on a form prescribed by the department if the crash resulted in:(1) injury to or death of a person;(2) $1000 or more of property damage to the property of any one person.(b) The crash record report form must include:(1) information about the crash;(2) information about all vehicles involved in the crash;(3) information about each person involved in the crash; and(4) other factors necessary for the department to comply with state and federal reporting requirements.(c) The department has developed Form CR-3, Texas Peace Officer's Crash Report, to satisfy the requirements of subsection (b) of this section. Investigating officers must file Form CR-3 through a web-based format beginning September 1, 2019.(d) The forms are available through the department's website at www.txdot.gov.(e) Incomplete or inaccurate crash reports, with the exception of location information as described in §25.974(b) of this subchapter (relating to Officer Accident Report Modifications), will be returned to the originating law enforcement agency for correction.</content><note type="source"><p>Source Note: The provisions of this §25.977 adopted to be effective October 16, 2008, 33 TexReg 8558; amended to be effective November 19, 2009, 34 TexReg 8045; amended to be effective June 16, 2011, 36 TexReg 3603; amended to be effective December 12, 2013, 38 TexReg 8928; amended to be effective October 17, 2018, 43 TexReg 6850.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p1/c26"><num value="26">CHAPTER 26</num><heading>REGIONAL MOBILITY AUTHORITIES</heading><subchapter identifier="/us/state/tx/tac/t43/p1/c26/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t43/p1/c26/scA/s26.1"><num value="26.1">§26.1</num><heading>Purpose</heading><content>Transportation Code, Chapter 370, provides that the Texas Transportation Commission may authorize the creation of a regional mobility authority for the purposes of constructing, maintaining, and operating transportation projects in a region of the state. Chapter 370 further provides for commission approval or regulation of certain actions and operations of a regional mobility authority. This chapter prescribes the policies and procedures governing commission regulation of regional mobility authorities as provided by Chapter 370.</content><note type="source"><p>Source Note: The provisions of this §26.1 adopted to be effective March 18, 2004, 29 TexReg 2722.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c26/scA/s26.2"><num value="26.2">§26.2</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) AASHTO--The American Association of State Highway and Transportation Officials.(2) Board--The board of directors of a regional mobility authority.(3) Commission--The Texas Transportation Commission.(4) County--Includes the cities of El Paso, Laredo, Brownsville, McAllen, and Port Aransas.(5) Director--A director of a board.(6) Department--The Texas Department of Transportation.(7) Environmental Permits, Issues, and Commitments (EPIC)--Any permit, issue, coordination, commitment, or mitigation obtained to satisfy social, economic, or environmental impacts of a transportation project, including, but not limited to, sole source aquifer coordination, wetland permits, stormwater permits, traffic noise abatement, threatened or endangered species coordination, archeological permits, and any mitigation or other commitment associated with any of those issues.(8) Executive director--The executive director of the department or the executive director's designee not below district engineer, division director, or office director.(9) Fiscal year--An accounting period of 12 months that is consistent, to the extent feasible, with the fiscal year of an RMA's member counties.(10) Governmental entity--A municipality, county, the department, or other public entity authorized to construct, maintain, and operate a transportation project within the region of a regional mobility authority.(11) Metropolitan planning organization--An organization designated to carry out the transportation planning process in prescribed urbanized areas as required by 23 U.S.C. §134.(12) Nonattainment area--An area designated by the U.S. Environmental Protection Agency as not meeting the air quality standards outlined in the Clean Air Act.(13) Petitioner--The county or counties petitioning for the creation of a regional mobility authority.(14) Public utility facility--Means:(A) a water, wastewater, natural gas, or petroleum pipeline or associated equipment;(B) an electric transmission or distribution line or associated equipment; or(C) telecommunications information services, or cable television infrastructure or associated equipment, including fiber optic cable, conduit, and wireless communications facilities.(15) RMA--A regional mobility authority.(16) Revenue--Fares, fees, rents, tolls, and other money received by an authority from the ownership or operation of a transportation project.(17) State Implementation Plan--The plan prepared by the Texas Commission on Environmental Quality as required by 42 USC §7410 to attain and maintain air quality standards.(18) Surplus revenue--Revenue that exceeds:(A) the regional mobility authority's debt service requirements for a transportation project, including the redemption or purchase price of bonds subject to redemption or purchase as provided in the applicable bond proceedings;(B) coverage requirements of a bond indenture for a transportation project;(C) costs of operation and maintenance for a transportation project;(D) cost of repair, expansion, or improvement of a transportation project;(E) funds allocated for feasibility studies; and(F) necessary reserves as determined by the regional mobility authority.(19) Transportation project--Means:(A) a turnpike project;(B) a system designated under Transportation Code, §370.034;(C) a passenger or freight rail facility, including:(i) tracks;(ii) a rail line;(iii) switching, signaling, or other operating equipment;(iv) a depot;(v) a locomotive;(vi) rolling stock;(vii) a maintenance facility; and(viii) other real and personal property associated with a rail operation;(D) a roadway with a functional classification greater than a local road or rural minor collector;(E) a bridge;(F) a ferry;(G) an airport, other than an airport that on September 1, 2005 was served by one or more air carriers engaged in scheduled interstate transportation, as those terms were defined by 14 C.F.R. §1.1 on that date;(H) a pedestrian or bicycle facility;(I) an intermodal hub;(J) an automated conveyor belt for the movement of freight;(K) a border crossing inspection station, including an inspection station located at or near an international border crossing or a border crossing from another state of the United States that is not more than 50 miles from an international border;(L) an air quality improvement initiative;(M) a public utility facility;(N) a transit system;(O) a parking area, structure, or facility, or a collection device for parking fees;(P) if applicable, projects and programs listed in the most recently approved state implementation plan for the area covered by the RMA, including an early action compact;(Q) improvements in a transportation reinvestment zone designated under Transportation Code, Chapter 222, Subchapter E; and(R) port security, transportation, or facility projects eligible for funding under Transportation Code, §55.002.(20) Turnpike project--A highway of any number of lanes, with or without grade separations, owned or operated by an RMA under this chapter and any improvement, extension, or expansion to that highway, including:(A) an improvement to relieve traffic congestion and promote safety;(B) a bridge, tunnel, overpass, underpass, interchange, entrance plaza, approach, toll house, service road, or ramp;(C) an administration, storage, or other building the RMA considers necessary for the operation of a turnpike project;(D) a property right, easement, or interest the RMA acquires to construct or operate the turnpike project; and(E) a parking area or structure, rest stop, park, and any other improvement or amenity the RMA considers necessary, useful, or beneficial for the operation of a turnpike project.</content><note type="source"><p>Source Note: The provisions of this §26.2 adopted to be effective March 18, 2004, 29 TexReg 2722; amended to be effective January 5, 2006, 30 TexReg 8998; amended to be effective November 19, 2014, 39 TexReg 9075.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c26/scB"><num value="B">SUBCHAPTER B</num><heading>CREATION OF A REGIONAL MOBILITY AUTHORITY</heading><section identifier="/us/state/tx/tac/t43/p1/c26/scB/s26.11"><num value="26.11">§26.11</num><heading>Petition</heading><content>(a) One or more counties may petition the commission for approval to create an RMA. The petition shall include:(1) an adopted resolution from the commissioners court of each county indicating its approval of the creation by the county of an RMA;(2) a description of how the RMA would improve mobility in the region;(3) a description of a potential candidate transportation project or system of projects the RMA may undertake depending on study outcomes, including:(A) an explanation of how the project or system of projects will be consistent with the appropriate policies, strategies, and actions of the Texas Transportation Plan, and, if appropriate, with the metropolitan transportation plan developed by the metropolitan planning organization;(B) a brief description of any known environmental, social, economic, or cultural resource issues, such as impacts on wetlands and other water resources, endangered species, parks, neighborhoods, businesses, historic buildings or bridges, and archeological sites;(C) the name and address of any individuals or organizations known to be opposed to any element of the project or system of projects, and a description of any known controversies concerning the project or system of projects; and(D) a preliminary financing plan for the project or system of projects, which shall include an estimate of the following information, if available to the petitioner:(i) total estimated cost, including planning, design, right of way acquisition, environmental mitigation, and construction; and(ii) proposed financing, specifying the source and use of the funds, including debt financing and department contributions, identified as a loan or a grant;(4) a commitment by the RMA to be fully responsible for identifying all EPIC, obtaining all required environmental permits, and other required environmental approvals;(5) a brief description of any other transportation projects the petitioner is currently considering to be developed by the RMA; and(6) the representation criteria and the appointment process for board members.(b) The cities of El Paso, Laredo, Brownsville, McAllen, or Port Aransas may petition the commission for approval to create an RMA in the same manner as a county under subsection (a) of this section. Instead of the requirements of subsection (a)(1) of this section, the city must submit a resolution from its city council indicating its approval of the creation by the city of an RMA.(c) For purposes of this subchapter, a system means a combination or network of transportation projects that the RMA may undertake.</content><note type="source"><p>Source Note: The provisions of this §26.11 adopted to be effective March 18, 2004, 29 TexReg 2722; amended to be effective January 5, 2006, 30 TexReg 8998.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c26/scB/s26.12"><num value="26.12">§26.12</num><heading>Public Hearing</heading><content>(a) If the department finds that the petition meets the requirements of §26.11 of this subchapter, it will notify the petitioner of its findings and will conduct one or more public hearings to receive public comment on the proposed RMA. (b) The department will hold at least one hearing within at least one of the counties of the petitioner. (c) The department will file a notice of each hearing with the Secretary of the State for publication in the Texas Register. (d) The petitioner shall advertise each hearing in accordance with an outreach plan developed in consultation with the department.</content><note type="source"><p>Source Note: The provisions of this §26.12 adopted to be effective March 18, 2004, 29 TexReg 2722.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c26/scB/s26.13"><num value="26.13">§26.13</num><heading>Approval</heading><content>(a) The commission may authorize the petitioner to create an RMA if it finds that:(1) the creation of an RMA:(A) has sufficient public support based upon:(i) public comments received at public hearings;(ii) any resolutions of support from affected political subdivisions; and(iii) the expressed opinion, if any, of the affected metropolitan planning organizations;(B) will result in direct benefits to the state, local governments, and the traveling public; and(C) will improve the efficiency of the state's transportation systems; and(2) each potential candidate project or system of projects:(A) if it is a highway project, the project is consistent with the Texas Transportation Plan, the metropolitan transportation plan, the metropolitan mobility plan, and the Statewide Transportation Improvement Program; and(B) subject to the completion of required studies and subject to commission approval under §26.31 of this chapter (relating to Request), will benefit the traveling public.(b) The commission may refuse to authorize the creation of an RMA if the commission determines that the proposed board will not fairly represent political subdivisions in the counties of the RMA that will be affected by the creation of the RMA.</content><note type="source"><p>Source Note: The provisions of this §26.13 adopted to be effective March 18, 2004, 29 TexReg 2722.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c26/scB/s26.14"><num value="26.14">§26.14</num><heading>Commission Action</heading><content>(a) Order. If approved under §26.13 of this subchapter, the commission will adopt a minute order authorizing the creation of the RMA. The minute order will:(1) describe the potential candidate project or system of projects to be developed, maintained, and operated by the RMA; and(2) establish, consistent with Transportation Code, §370.251, the initial size of the board, which shall be composed of an odd number of directors.(b) Approval of project. Approval of the creation of an RMA shall not constitute final commission approval of any transportation project subject to approval under §26.31 of this chapter (relating to Request).</content><note type="source"><p>Source Note: The provisions of this §26.14 adopted to be effective March 18, 2004, 29 TexReg 2722.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c26/scB/s26.15"><num value="26.15">§26.15</num><heading>Creation</heading><content>(a) The petitioner shall create an RMA authorized under §26.14 of this subchapter by resolution of each county. Each resolution shall appoint directors consistent with the provisions of §26.14(a)(2) of this subchapter.(b) Additional directors. The petitioner shall provide for the appointment of any additional members described in §26.11(a)(6) of this subchapter.</content><note type="source"><p>Source Note: The provisions of this §26.15 adopted to be effective March 18, 2004, 29 TexReg 2722; amended to be effective March 15, 2017, 42 TexReg 1152.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c26/scB/s26.16"><num value="26.16">§26.16</num><heading>Alternative Board Composition and Method of Appointment</heading><content>(a) If a petition under §26.11 of this subchapter includes a county in which a regional tollway authority under Transportation Code, Chapter 366 operates or a county owning or operating a toll project under Transportation Code, Chapter 284, the petitioner may submit to the commission an alternative board structure and method of appointment.(b) The commission may approve a proposal submitted under subsection (a) of this section if:(1) the proposal includes an adopted resolution from the commissioners court of each county in the RMA indicating its approval of the alternative board structure and method of appointment; and(2) the commission determines that the alternative will provide for adequate representation of affected political subdivisions.</content><note type="source"><p>Source Note: The provisions of this §26.16 adopted to be effective March 18, 2004, 29 TexReg 2722.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c26/scB/s26.17"><num value="26.17">§26.17</num><heading>Board Membership after Commission Approval</heading><content>(a) After the commission approves the composition and appointment method of the board of an RMA under §26.13 or §26.16 of this subchapter (relating to Approval and Alternate Board Composition and Method of Appointment, respectively) and the RMA has been created and the initial board members have been appointed, the representation criteria and appointment process for the RMA's board members may be revised by the governing body of each county that is a member of the RMA or the city that created the RMA.(b) A revision under subsection (a) of this section is not subject to review or approval of the commission.(c) After the appointment of the initial board members, an appointment to an RMA's board is not subject to review or approval of the commission.</content><note type="source"><p>Source Note: The provisions of this §26.17 adopted to be effective December 8, 2011, 36 TexReg 8256.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c26/scC"><num value="C">SUBCHAPTER C</num><heading>REVISIONS TO REGIONAL MOBILITY AUTHORITY--ADDITIONS, WITHDRAWALS, AND DISSOLUTION</heading><section identifier="/us/state/tx/tac/t43/p1/c26/scC/s26.21"><num value="26.21">§26.21</num><heading>Addition of Counties</heading><content>(a) One or more counties may request the commission for approval to become part of an existing RMA. The commission may approve the request only if:(1) the county has submitted a resolution from its commissioners court indicating support for the request;(2) the board of the RMA has agreed in writing to the addition;(3) each county that is a member of the RMA has submitted an adopted resolution from its commissioners court indicating support for the request;(4) the commission finds that the addition will benefit the mobility of the region; and(5) the commission finds that affected political subdivisions in the new county or counties will be adequately represented on the board.(b) If one of the counties requesting approval under subsection (a) of this section is part of a regional tollway authority under Transportation Code, Chapter 366 or owns or operates a toll project under Transportation Code, Chapter 284, the county may submit to the commission an alternative board structure and method of appointment. The commission may approve the alternative board structure and method of appointment if:(1) the proposal includes an adopted resolution from the commissioners court of each county in the RMA indicating its approval of the alternative board structure and method of appointment;(2) the commission determines that the alternative will provide for adequate representation of affected political subdivisions; and(3) the commission approves the request submitted under subsection (a) of this section.</content><note type="source"><p>Source Note: The provisions of this §26.21 adopted to be effective March 18, 2004, 29 TexReg 2722.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c26/scC/s26.22"><num value="26.22">§26.22</num><heading>Withdrawal of Counties</heading><content>(a) One or more counties may petition the commission for approval to withdraw from an RMA. The commission may approve the petition only if the RMA has no bonded indebtedness.(b) If the RMA has any debt other than bonded indebtedness, the petitioning county must obtain the approval of the board of the RMA.</content><note type="source"><p>Source Note: The provisions of this §26.22 adopted to be effective March 18, 2004, 29 TexReg 2722.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c26/scC/s26.23"><num value="26.23">§26.23</num><heading>Dissolution of an RMA</heading><content>(a) Voluntary dissolution. The board of an RMA may request the commission for approval to dissolve. The commission may approve the request if:(1) all debts, obligations, and liabilities of the RMA have been paid and discharged or adequate provision has been made for the payment of all debts, obligations, and liabilities;(2) there are no suits pending against the RMA, or adequate provision has been made for the satisfaction of any judgment, order, or decree which may be entered against it in any pending suit; and(3) the RMA has commitments from other governmental entities to assume jurisdiction of all RMA transportation projects.(b) Involuntary dissolution.(1) The commission may by order require the RMA to dissolve if it determines that the RMA has not, as determined by the commission, substantially complied with the requirements of a commission rule or an agreement between the department and the RMA.(2) The commission may not require dissolution unless:(A) the conditions described in subsection (a)(1) and (2) of this section have been met; and(B) the holders of any indebtedness have evidenced their agreement to the dissolution.(3) At least 30 days prior to adopting an order under this section, the department will provide written notice to the RMA's board offering an opportunity for the RMA to speak before the commission.</content><note type="source"><p>Source Note: The provisions of this §26.23 adopted to be effective March 18, 2004, 29 TexReg 2722.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c26/scD"><num value="D">SUBCHAPTER D</num><heading>APPROVAL OF A TRANSPORTATION PROJECT</heading><section identifier="/us/state/tx/tac/t43/p1/c26/scD/s26.31"><num value="26.31">§26.31</num><heading>Request</heading><content>(a) In accordance with Transportation Code, §370.187, the RMA must request commission approval of a transportation project that will connect to the state highway system or to a department rail facility. The RMA must obtain approval after completing the environmental review required by Transportation Code, §370.188 and federal law and before construction of the project begins.(b) To secure approval under this section, the RMA shall submit:(1) a report identifying relocations or reconstruction to state highway system facilities or department rail facilities anticipated in connection with the proposed project;(2) a copy of any report, study, or analysis prepared pursuant to the federal National Environmental Policy Act or Transportation Code, §370.188; and(3) a commitment that the RMA will comply with §26.33 of this subchapter.</content><note type="source"><p>Source Note: The provisions of this §26.31 adopted to be effective March 18, 2004, 29 TexReg 2722.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c26/scD/s26.32"><num value="26.32">§26.32</num><heading>Approval</heading><content>In deciding whether to grant approval under this subchapter, the commission will consider whether the project may be effectively integrated into the state's transportation system.</content><note type="source"><p>Source Note: The provisions of this §26.32 adopted to be effective March 18, 2004, 29 TexReg 2722.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c26/scD/s26.33"><num value="26.33">§26.33</num><heading>Design and Construction</heading><content>(a) Applicability. This section applies to an RMA transportation project that will connect to the state highway system or a department rail facility.(b) State or federal funds. RMA turnpike projects that use federal or state funds provided by the department must also comply with Chapter 27, Subchapter E of this title (relating to Financial Assistance for Toll Facilities). If a requirement of Chapter 27, Subchapter E conflicts with any provision of this section, the most stringent requirement, as determined by the executive director, will apply.(c) Responsibility. The RMA is fully responsible for the design and construction of each project it undertakes, including ensuring that all EPIC are addressed in project design and construction.(d) Design criteria for highway facilities.(1) State criteria. All designs developed by or on behalf of the RMA shall comply with the latest version of the department's manuals, including, but not limited to, the Roadway Design Manual, Pavement Design Manual, Hydraulic Design Manual, the Texas Manual on Uniform Traffic Control Devices, Bridge Design Manual, and the Texas Accessibility Standards.(2) Alternative criteria. An RMA may request approval to use different accepted criteria for a particular item of work. Alternative criteria may include, but are not limited to, the latest version of the AASHTO Policy on Geometric Design of Highways and Streets, the AASHTO Pavement Design Guide, and the AASHTO Bridge Design Specifications. The use of alternative criteria is subject to the approval of the Federal Highway Administration for those projects involving federal funds. The executive director may approve the use of alternative criteria if the alternative criteria are determined to be sufficient to protect the safety of the traveling public and protect the integrity of the transportation system.(3) Exceptions to design criteria. An RMA may deviate from the state or alternative criteria for a particular design element on a case by case basis after determining that the particular criteria could not reasonably be met due to physical, environmental, or other relevant factors and that the proposed design is a prudent engineering solution. Documentation of the exceptions shall be retained by the RMA and furnished to the department in accordance with subsection (h) of this section.(e) Design and construction criteria for rail facilities. Rail facilities developed by or on behalf of the RMA shall comply with the current version of the American Railway Engineering and Maintenance of Way Association (AREMA) standards.(f) Access. For proposed projects that will change the access control line to an interstate highway, the RMA shall submit to the department all data necessary for the department to request Federal Highway Administration approval.(g) Construction specifications for highway projects.(1) All plans, specifications, and estimates developed by or on behalf of the RMA shall conform to the latest version of the department's Standard Specifications for Construction and Maintenance of Highways, Streets, and Bridges, and shall conform to department required special specifications and special provisions.(2) The executive director may approve the use of an alternative specification if the proposed specification is determined to be sufficient to ensure the quality and durability of the finished product for the intended use and the safety of the traveling public.(h) Design and construction review and approval.(1) Applicability. This subsection applies to the segment of an RMA transportation project that connects to the state highway system or a department rail facility, including an overpass, underpass, intersection, or interchange.(2) Exceptions to design criteria. An RMA may request approval to deviate from the state or alternative criteria for a particular design element on a case by case basis. The request for approval shall state the criteria for which an exception is being requested and must include a comprehensive description of the circumstances and engineering analysis supporting the request. The executive director may approve an exception after determining that the particular criteria could not reasonably be met due to physical, environmental, or other relevant factors and that the proposed design is a prudent engineering solution.(3) Preliminary plan review. When design of the connection is approximately 30% complete, the RMA shall send the following preliminary design information to the department for review and approval in accordance with the procedures and timeline established in the project development agreement described in §26.34 of this subchapter:(A) a design schematic depicting plan, profile, and superelevation information for each roadway and rail line;(B) typical sections showing existing and proposed horizontal dimensions, cross slopes, location of profile grade line, pavement layer thickness and composition, earthen slopes, right of way lines, if applicable, rail cross ties, type and size of rail and ballast type;(C) bridge, retaining wall, and sound wall layouts, including, where applicable, an indication of structural capacity in terms of design loading;(D) hydraulic studies and drainage area maps showing the drainage of waterways entering the project and local project drainage; and(E) the location and text of proposed mainlane guide signs shown on a schematic that includes lane lines or arrows indicating the number of lanes.(4) Final plan review. When final plans are complete, the RMA shall send the following information to the executive director for review and approval in accordance with the procedures and timelines established in the project development agreement described in §26.34 of this subchapter:(A) seven copies of the final set of plans, specifications, and engineer's estimate (PS&E) that have been signed and sealed by the responsible engineer; and(B) revisions to the preliminary design submission previously approved by the department summarized or highlighted for the department.(5) Contract bidding and award. The RMA shall not advertise the project for receipt of bids until it has received approval of the PS&E from the department. This paragraph does not apply to a project developed under a comprehensive development agreement.(6) Contract revisions.(A) All contract revisions related to the connections to the department facility shall comply with the latest version of the applicable national or state administration criteria and manuals, and must be submitted to the department for its records. Major contract revisions must be submitted to the executive director for approval prior to beginning the revised construction work. Procedures governing the executive director's approval, including time limits for department review, shall be included in the project agreement described in §26.34 of this subchapter.(B) For purposes of this subsection, "major contract revision" means a revision to a construction contract that:(i) reduces geometric design or structural capacity below project design criteria;(ii) changes the location or configuration of the physical connection to the department facility;(iii) changes the placement of columns and other structural elements within the department's right of way;(iv) changes the traffic control plan in a manner that reduces the capacity on the department facility as shown on the approved PS&E(v) changes the access on a controlled access facility; or(vi) for federally funded projects, eliminates or revises EPICs.(i) As-built plans. Within six months after final acceptance of the construction project, the RMA shall file with the department a set of the as-built plans incorporating any contract revisions. These plans shall be signed, sealed, and dated by a Texas licensed professional engineer certifying that the project was constructed in accordance with the plans and specifications.(j) Document and information exchange. If available, the RMA agrees to deliver to the department all materials used in the development of the project including, but not limited to, aerial photography, computer files, surveying information, engineering reports, environmental documentation, general notes, specifications, and contract provision requirements.(k) State and federal law. The RMA shall comply with all federal and state laws and regulations applicable to the project and the state highway system, and shall provide or obtain all applicable permits, plans, and other documentation required by a federal or state entity.(l) Work on state right of way. All work required within the limits of state owned right of way shall be accomplished only pursuant to express written agreement with the department.</content><note type="source"><p>Source Note: The provisions of this §26.33 adopted to be effective March 18, 2004, 29 TexReg 2722; amended to be effective January 5, 2006, 30 TexReg 8998.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c26/scD/s26.34"><num value="26.34">§26.34</num><heading>Project Development Agreement</heading><content>The RMA and the department shall enter into an agreement governing the development of a project under this subchapter. The agreement shall, at a minimum, include:(1) the responsibilities of each party concerning the design and construction of the project and EPIC;(2) procedures governing the submittal of information required by this subchapter;(3) timelines governing approvals of the executive director under this subchapter; and(4) other terms or conditions mutually agreed upon by the parties.</content><note type="source"><p>Source Note: The provisions of this §26.34 adopted to be effective March 18, 2004, 29 TexReg 2722.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c26/scD/s26.35"><num value="26.35">§26.35</num><heading>RMA Project on State Highway System</heading><content>(a) An RMA may request the commission to designate a highway project as a part of the state highway system. The commission may approve the request if:(1) the commission determines that the project can be efficiently integrated into the state highway system;(2) the RMA agrees to design, construct, maintain, and operate the project in accordance with standards established by the department, and to be subject to department reviews and approvals as deemed necessary by the department; and(3) the RMA agrees to be responsible for all EPIC.(b) The RMA and the department may agree to allocate maintenance or operation responsibilities to the department.</content><note type="source"><p>Source Note: The provisions of this §26.35 adopted to be effective March 18, 2004, 29 TexReg 2722.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c26/scD/s26.36"><num value="26.36">§26.36</num><heading>Projects of Another Governmental Entity</heading><content>(a) Purpose. Except as for a transportation project described in Transportation Code, §370.033(f)(1) or (2), the department must approve an RMA's acquisition, planning, design, construction, maintenance, repair, or operation of a transportation project on behalf of another governmental entity. Feasibility analysis, including preliminary design, is not subject to the approval requirements of this section. This section prescribes the procedures by which the commission will consider approval.(b) Request. An RMA seeking commission approval under this section must submit a request to the executive director. The request must include:(1) an overview of the transportation project for which the request is being made, including a description of the project, the total estimated cost of the project, and a description of the work to be performed by the RMA and by the governmental entity;(2) a description of the need for the project and the benefits anticipated to result from completion of the project, including any anticipated:(A) impacts on the economic development potential in the area;(B) reductions in congestion;(C) improvements in efficiency on the region's transportation system;(D) enhancements to safety; and(E) improvements to air quality in the region;(3) a proposed project funding plan that includes amounts proposed for each of the project cost categories, including design, development, financing, construction, maintenance, and operation;(4) department contributions and participation anticipated to be requested for the project;(5) official written approval of the project by the board of the RMA and the governing body of the governmental entity with jurisdiction over the project;(6) a description of and any documentation evidencing local public support for the project and any local public opposition;(7) a preliminary project development and implementation schedule, including an estimated date when the project will be completed;(8) a description of the RMA's experience in developing transportation projects comparable to the project for which the request is being made;(9) if applicable, given the nature of the project, information explaining how the project will be consistent with the Statewide Transportation Plan and, if appropriate, with the metropolitan transportation plan developed by the metropolitan planning organization with jurisdiction over the project;(10) a preliminary identification of any known environmental, social, economic, or cultural resource issues, such as hazardous material sites, impacts on wetlands and other water resources, endangered species, parks, neighborhoods, businesses, historic buildings or bridges, and archeological sites;(11) a binding commitment that the environmental consequences of the proposed project will be fully considered in accordance with, and that the proposed project will comply with, all applicable local, state, and federal environmental laws, regulations, and requirements; and(12) a binding commitment to implement all EPIC.(c) Commission approval.(1) Compliance with applicable requirements. The commission may approve a request submitted under this section if the RMA commits to the department and in the agreement with the governmental entity that the RMA will comply with all applicable federal, state, and, if applicable, department requirements.(2) Considerations. In determining whether to approve a request submitted under this section, the commission will consider:(A) the ability of the RMA to award, manage, and complete the work to be performed by the RMA for the project;(B) the need for the project and whether the project is ready for development;(C) the anticipated benefit of the project to the governmental entity and the region; and(D) evidence of local support in the area in which the project is located.(3) Findings. The commission may approve a request submitted under this section if it finds that:(A) if applicable, given the nature of the project, the project is consistent with the appropriate policies, strategies, and actions of the statewide transportation plan and, if appropriate, with the regional transportation plan developed by the metropolitan planning organization with jurisdiction over the project;(B) the RMA's participation in the project will facilitate the ability of the governmental entity to construct the project and achieve the benefits anticipated to be derived from the project;(C) the project will neither duplicate nor conflict with the operations of the department;(D) the project is supported by the RMA, the governmental entity and metropolitan planning organization with jurisdiction over the project, and each other governmental entity affected by the project; and(E) the project is in the best interest of the region.</content><note type="source"><p>Source Note: The provisions of this §26.36 adopted to be effective November 19, 2014, 39 TexReg 9075.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c26/scE"><num value="E">SUBCHAPTER E</num><heading>TRANSFER OF TXDOT FERRY</heading><section identifier="/us/state/tx/tac/t43/p1/c26/scE/s26.41"><num value="26.41">§26.41</num><heading>Request</heading><content>(a) An RMA may request the commission to transfer a department owned and operated ferry to an RMA.(b) A request submitted under subsection (a) of this section must be in writing and must include:(1) an explanation of how the proposed transfer is an integral part of the region's overall plan to improve mobility in the region;(2) an explanation of how the request complies with §26.43(a)(3) and (4) of this subchapter;(3) copies of any completed studies concerning the transfer;(4) a brief description of any known environmental, social, economic, or cultural resource issues, such as impacts on wetlands and other water resources, endangered species, parks, neighborhoods, businesses, historic buildings or bridges, and archeological sites concerning the transfer; and(5) the name and address of any individuals or organizations known to be opposed to the transfer, and a description of any known controversies concerning the transfer.</content><note type="source"><p>Source Note: The provisions of this §26.41 adopted to be effective March 18, 2004, 29 TexReg 2722; amended to be effective January 5, 2006, 30 TexReg 8999.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c26/scE/s26.42"><num value="26.42">§26.42</num><heading>Public Involvement</heading><content>(a) If the commission determines that the proposed transfer is an integral part of the region's overall plan to improve mobility in the region, the department will: (1) hold one or more public hearings in each county in which the project is located for the purpose of seeking oral comments; (2) hold one or more informal public meetings, which will be held, if practicable, in the project area; and (3) solicit written comments. (b) Notice of a solicitation of written comments, a public meeting, and a public hearing held under subsection (a) of this section will be: (1) published in the Texas Register; (2) published in one or more newspapers of general circulation in each of the counties in which the ferry is located; (3) published in a newspaper, if any, published in each of the counties of the applicable authority; (4) posted on the department's website, with a link to the RMA's website, if available; and (5) posted on the RMA's website, if available, with a link to the department's website. (c) The department will publish and post notices under subsection (b) of this section at least 10 days prior to the date of a hearing or meeting. (d) A notice published or posted under subsection (b) of this section will inform the public that the RMA's request and any studies submitted by the RMA in support of the request are available for review at one or more designated offices of the department and can be found on the websites of the department and, if available, the RMA. The notice will provide the links to the request and studies. The department will not make studies available on the websites if it determines such action to be impractical due to size of the files.</content><note type="source"><p>Source Note: The provisions of this §26.42 adopted to be effective March 18, 2004, 29 TexReg 2722; amended to be effective January 5, 2006, 30 TexReg 8999.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c26/scE/s26.43"><num value="26.43">§26.43</num><heading>Approval</heading><content>(a) The commission may, after considering public input concerning the proposed transfer, approve a proposed transfer under this subchapter if:(1) the RMA agrees to assume all liability and responsibility for the safe and effective maintenance and operation of the ferry upon its transfer;(2) the RMA agrees to assume all liability and responsibility for compliance with all federal laws, regulations, and policies applicable to the ferry;(3) the commission determines that the transfer is in the public interest;(4) the RMA agrees to assume all liability and responsibility for EPIC; and(5) the RMA has adopted rules providing criteria and guidelines for approval of the transfer of a ferry.(b) Commission approval under this section is conditioned on the approval of the governor.</content><note type="source"><p>Source Note: The provisions of this §26.43 adopted to be effective March 18, 2004, 29 TexReg 2722; amended to be effective January 5, 2006, 30 TexReg 8999.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c26/scE/s26.44"><num value="26.44">§26.44</num><heading>Preliminary Approval</heading><content>(a) The commission may grant preliminary approval of the transfer, with final approval conditioned on the completion of preliminary studies necessary for the commission to make findings required by §26.43 of this subchapter. The preliminary studies may include, but are not limited to, social, economic, and environmental studies and the preparation of traffic and revenue forecasts.(b) The commission may require the RMA to pay for or complete all or a portion of the preliminary studies.(c) Upon completion of the preliminary studies, the department will hold one or more additional public hearings. The department will publish and post notice of a hearing held under this subsection in accordance with §26.42(b)-(d).(d) The commission may grant final approval of the transfer consistent with the requirements of §26.43 of this subchapter.</content><note type="source"><p>Source Note: The provisions of this §26.44 adopted to be effective March 18, 2004, 29 TexReg 2722.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c26/scE/s26.45"><num value="26.45">§26.45</num><heading>Reimbursement</heading><content>(a) An authority shall reimburse the commission for the cost of a transferred ferry unless the commission determines that the transfer will result in a substantial net benefit to the state, the department, and the traveling public that equals or exceeds the cost.(b) In computing the cost of the ferry, the commission will:(1) include the total amount spent by the department for the original construction of the ferry, including the costs associated with the preliminary engineering and design engineering for plans, specifications, and estimates, the acquisition of necessary rights-of-way, and actual construction of the ferry and all necessary appurtenant facilities; and(2) consider the anticipated future costs of expanding, improving, maintaining, operating, or extending the ferry to be incurred by the RMA and not by the department if the ferry is transferred.</content><note type="source"><p>Source Note: The provisions of this §26.45 adopted to be effective March 18, 2004, 29 TexReg 2722; amended to be effective January 5, 2006, 30 TexReg 8999.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c26/scE/s26.46"><num value="26.46">§26.46</num><heading>Use of Surplus Revenue</heading><content>Notwithstanding the provisions of §26.53 of this chapter (relating to Surplus Revenue) to the contrary, the commission may, as a condition to the transfer, require that expenditures of surplus revenue, if any, derived from a transferred ferry be made to implement projects included in the metropolitan transportation plan or the department's unified transportation program. Within the project operating agreement described under §26.54 of this chapter (relating to Project Operating Agreement), the commission and the RMA shall, prior to transfer, mutually agree to the amount of expenditures subject to this section and projects to be funded under this section. These provisions may be revised at any time upon agreement of both parties.</content><note type="source"><p>Source Note: The provisions of this §26.46 adopted to be effective March 18, 2004, 29 TexReg 2722; amended to be effective January 5, 2006, 30 TexReg 8999.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c26/scE/s26.47"><num value="26.47">§26.47</num><heading>Applicability</heading><content>This subchapter does not apply to a ferry located in a municipality with a population of 5,000 or less unless the city council of the municipality approves the transfer.</content><note type="source"><p>Source Note: The provisions of this §26.47 adopted to be effective March 18, 2004, 29 TexReg 2722.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c26/scF"><num value="F">SUBCHAPTER F</num><heading>MISCELLANEOUS OPERATION PROVISIONS</heading><section identifier="/us/state/tx/tac/t43/p1/c26/scF/s26.51"><num value="26.51">§26.51</num><heading>Conflict of Interest</heading><content>(a) Prohibited conduct for directors and employees. A director or employee of an RMA may not:(1) accept or solicit any gift, favor, or service that might reasonably tend to influence the director or employee in the discharge of official duties or that the director or employee knows or should know is being offered with the intent to influence the director's or employee's official conduct;(2) accept other employment or engage in a business or professional activity that the director or employee might reasonably expect would require or induce the director or employee to disclose confidential information acquired by reason of the official position;(3) accept other employment or compensation that could reasonably be expected to impair the director's or employee's independence of judgment in the performance of the director's or employee's official duties;(4) make personal investments, including investments of a spouse, that could reasonably be expected to create a conflict between the director's or employee's private interest and the interest of the RMA or that could impair the ability of the individual to make independent decisions;(5) intentionally or knowingly solicit, accept, or agree to accept any benefit for having exercised the director's or employee's official powers or performed the director's or employee's official duties in favor of another; or(6) have a personal interest in an agreement executed by the RMA.(b) Eligibility of directors and chief administrative officer.(1) A person is not eligible to serve as a director or chief administrative officer of an RMA if the person or the person's spouse:(A) is employed by or participates in the management of a business entity or other organization, other than a political subdivision, that is regulated by or receives funds from the department, the RMA, or a member county;(B) directly or indirectly owns or controls more than a 10% interest in a business or other organization that is regulated by or receives funds from the department, the RMA, or a member county;(C) uses or receives a substantial amount of tangible goods, services, or funds from the department, the RMA, or a member county; or(D) is required to register as a lobbyist under Government Code, Chapter 305, because of the person's activities for compensation on behalf of a profession related to the operation of the department, the RMA, or a member county.(2) A person is not eligible to serve as a director or chief administrative officer of an RMA if the person is an officer, employee, or paid consultant of a Texas trade association in the field of road construction or maintenance, public transportation, rail, or aviation, or if the person's spouse is an officer, manager, or paid consultant of a Texas trade association in the field of road construction or maintenance, public transportation, rail, or aviation.(3) Except as provided in Transportation Code, §370.251(g), a person is not ineligible to serve as a director or chief administrative officer of an RMA if the person has received funds from the department, the RMA, or a member county for acquisition of highway right of way.(4) The commission may approve an exception to the requirements of subsection (b)(1)(A) of this section if:(A) the RMA or the applicable county has properly disclosed to the public the details of the potential conflict;(B) the potential conflict concerns employment with an entity that receives funds from a member county; and(C) the commission determines that the employment will not result in the director or chief administrative officer incurring any obligation of any nature that is in substantial conflict with the director or officer's proper discharge of his or her duties on behalf of the RMA.(c) In addition to the prohibitions and restrictions of this section, a director is subject to Local Government Code, Chapter 171.</content><note type="source"><p>Source Note: The provisions of this §26.51 adopted to be effective March 18, 2004, 29 TexReg 2722; amended to be effective January 5, 2006, 30 TexReg 8998.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c26/scF/s26.52"><num value="26.52">§26.52</num><heading>Donations</heading><content>An RMA may only accept donations of cash, goods, services, and property that will further the performance of its functions. All donations shall be used by the RMA for their intended purpose in accordance with applicable law. All RMAs, in receiving donations, shall accept and use the donations only for specific purposes legally supported and authorized by the donors and shall be strictly accountable to the donors.</content><note type="source"><p>Source Note: The provisions of this §26.52 adopted to be effective March 18, 2004, 29 TexReg 2722.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c26/scF/s26.53"><num value="26.53">§26.53</num><heading>Surplus Revenue</heading><content>(a) General. Each fiscal year, if an RMA determines that it has surplus revenue from transportation projects, the RMA shall:(1) reduce tolls;(2) spend the surplus revenue on other transportation projects in the counties of the RMA, in accordance with the provisions of this subchapter and, if applicable, as authorized by federal law; or(3) deposit the surplus revenue to the credit of the Texas Mobility Fund.(b) Expenditures on transportation projects. Subject to any applicable restrictions under federal law, an RMA may spend surplus revenue in the region on other transportation projects by:(1) constructing a transportation project located within the counties of the RMA;(2) assisting in the financing of a toll or toll-free transportation project of another governmental entity; or(3) constructing a toll or toll-free transportation project and, on completion of the project, transferring the project to a governmental entity if:(A) approved by the commission under subsection (c) of this section;(B) the governmental entity authorizes the RMA to construct the project and agrees to assume all liability and responsibility for the maintenance and operation of the project on its transfer; and(C) the project is constructed in compliance with all laws applicable to the governmental entity.(c) Commission approval. The commission will approve an RMA constructing a transportation project under subsection (b)(3) of this section if:(1) the project comes from a conforming transportation plan and transportation improvement program, when required by federal law;(2) the project is consistent with the Texas Transportation Plan, the metropolitan transportation plan, and the Statewide Transportation Improvement Program; and(3) the commission determines that the project will have a significant positive impact on the mobility of the region of the RMA.(d) Considerations. When approving or disapproving a project under subsection (c) of this section, the commission will consider:(1) the anticipated reduction to traffic congestion;(2) potential social, environmental, and economic impacts of the project, and the extent to which the RMA has complied with all EPIC;(3) benefit to state and local government; and(4) whether the construction will expand the availability of funding for transportation projects or reduce direct state costs.</content><note type="source"><p>Source Note: The provisions of this §26.53 adopted to be effective March 18, 2004, 29 TexReg 2722.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c26/scF/s26.54"><num value="26.54">§26.54</num><heading>Project Operating Agreement</heading><content>An RMA and the department may enter into a project operating agreement governing the maintenance and operation of a transportation project. The agreement may include provisions governing:(1) bridge inspection; and(2) department maintenance or operation of the turnpike project, provided the RMA reimburses the department for necessary costs of maintaining or operating the project unless the RMA is provided assistance under Chapter 27, Subchapter E of this title (relating to Financial Assistance for Toll Facilities).</content><note type="source"><p>Source Note: The provisions of this §26.54 adopted to be effective March 18, 2004, 29 TexReg 2722.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c26/scF/s26.55"><num value="26.55">§26.55</num><heading>Contracts with Mexico</heading><content>(a) Prior to entering into a contract with the United Mexican States or a state of the United Mexican States, the RMA must submit to the department:(1) a summary of the purpose of the agreement;(2) a list of the duties and responsibilities to be performed by each party to the contract;(3) a description of any federal, state, or local funds to be spent in Mexico; and(4) a description of any work to be done by RMA employees or contractors within Mexico.(b) The commission will authorize the RMA to enter into a contract with the United Mexican States or a state of the United Mexican States if it determines that, based on the information provided by the RMA and any other factors the commission deems relevant, the contract will provide a significant benefit to the State of Texas.</content><note type="source"><p>Source Note: The provisions of this §26.55 adopted to be effective March 18, 2004, 29 TexReg 2722.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c26/scF/s26.56"><num value="26.56">§26.56</num><heading>Required Internal Ethics and Compliance Program</heading><content>(a) An RMA shall adopt an internal compliance and ethics program that satisfies the requirements of §10.51 of this title (relating to Internal Ethics and Compliance Program).(b) An RMA must finally adopt a program described by subsection (a) of this section before the later of:(1) April 1, 2011; or(2) the first anniversary of the date on which the RMA is created.(c) An RMA shall enforce compliance with its internal compliance and ethics program.</content><note type="source"><p>Source Note: The provisions of this §26.56 adopted to be effective April 15, 2010, 35 TexReg 2858; amended to be effective January 6, 2011, 35 TexReg 11964.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c26/scG"><num value="G">SUBCHAPTER G</num><heading>REPORTS AND AUDITS</heading><section identifier="/us/state/tx/tac/t43/p1/c26/scG/s26.61"><num value="26.61">§26.61</num><heading>Written Reports</heading><content>(a) Financial and operating reports. An RMA shall submit the following financial and operating reports to each county or city that is a part of the RMA:(1) the annual operating and capital budgets adopted by the RMA each fiscal year pursuant to the trust agreement or indenture securing bonds issued for a project, and any amended or supplemental operating or capital budget;(2) annual financial information and notices of material events required to be disclosed under Rule 15c2-12 of the United States Securities and Exchange Commission (17 C.F.R. §240.15c2-12); and(3) to the extent not otherwise disclosed in another report required under this subsection, a statement of any surplus revenue held by the RMA and a summary of how it intends to use the surplus revenue.(b) Investment reports. An RMA shall submit to each county or city that is a part of the RMA an independent auditor's review, if required by law, of the reports of investment transactions prepared by an RMA's investment officers under Government Code, §2256.023.(c) Certification. Reports submitted under this section must be approved by official action of the board and certified as correct by the chief administrative officer of the RMA.(d) Submission dates. Reports required by subsection (a)(1) and (3) of this section must be submitted within 90 days after the beginning of the fiscal year or the adoption of any amended or supplemental budget. Reports required by subsection (a)(2) and subsection (b) of this section must be submitted within 30 days after disclosure under Rule 15c2-12 or approval of the independent auditor's report.</content><note type="source"><p>Source Note: The provisions of this §26.61 adopted to be effective March 18, 2004, 29 TexReg 2722; amended to be effective January 5, 2012, 36 TexReg 9350.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c26/scG/s26.62"><num value="26.62">§26.62</num><heading>Annual Audits</heading><content>(a) General. The RMA shall maintain its books and records in accordance with generally accepted accounting principles in the United States, as promulgated by the Government Accounting Standards Board, the Financial Accounting Standards Board, or pursuant to applicable federal or state laws or regulations, and shall have an annual financial and compliance audit of such books and records in accordance with this section.(b) Submission date. The annual audit shall be submitted to each county or city that is a part of the RMA within 120 days after the end of the fiscal year.(c) Certification. The financial and compliance audit must be conducted by an independent certified public accountant in accordance with generally accepted auditing standards, as modified by the governor's Uniform Grant Management Standards, or the standards of the Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non-profit Organizations, as applicable.(d) Paperwork retention period. All work papers and reports shall be retained for a minimum of four years from the date of the audit report, unless the counties or cities that are parts of the RMA require a longer retention period.</content><note type="source"><p>Source Note: The provisions of this §26.62 adopted to be effective March 18, 2004, 29 TexReg 2722; amended to be effective January 5, 2012, 36 TexReg 9350.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c26/scG/s26.63"><num value="26.63">§26.63</num><heading>Other Reports to Counties and Cities</heading><content>The RMA will provide other reports and information regarding its activities promptly when requested by the counties or cities that are parts of the RMA.</content><note type="source"><p>Source Note: The provisions of this §26.63 adopted to be effective March 18, 2004, 29 TexReg 2722; amended to be effective January 5, 2012, 36 TexReg 9350.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c26/scG/s26.64"><num value="26.64">§26.64</num><heading>Operating Records</heading><content>The department will have access to all operating and financial records of the RMA. The executive director will provide notification if access is desired by the department.</content><note type="source"><p>Source Note: The provisions of this §26.64 adopted to be effective March 18, 2004, 29 TexReg 2722.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c26/scG/s26.65"><num value="26.65">§26.65</num><heading>Annual Reports to the Commission</heading><content>(a) Compliance Report. Within 150 days after the end of the fiscal year of an RMA, the RMA shall submit to the executive director a report that lists each duty that the RMA is required to perform under this subchapter and that indicates that the RMA has performed that requirement for that fiscal year. Each report submitted under this subsection must be in the form prescribed by the department, approved by official action of the board, and certified as correct by the chief administrative officer of the RMA.(b) Project Report. Not later than December 31 of each year, an RMA shall submit to the commission a written report that describes the progress made during that year on each transportation project or system of projects of the RMA, including the initial project for which the RMA was created.</content><note type="source"><p>Source Note: The provisions of this §26.65 adopted to be effective January 5, 2012, 36 TexReg 9350.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p1/c27"><num value="27">CHAPTER 27</num><heading>TOLL PROJECTS</heading><subchapter identifier="/us/state/tx/tac/t43/p1/c27/scA"><num value="A">SUBCHAPTER A</num><heading>COMPREHENSIVE DEVELOPMENT AGREEMENTS</heading><section identifier="/us/state/tx/tac/t43/p1/c27/scA/s27.1"><num value="27.1">§27.1</num><heading>Statement of Policy</heading><content>(a) It is the policy of the department to consider the feasibility of private involvement in projects the department undertakes. The objectives of this policy are to:(1) expand the scope of projects studied;(2) accelerate the construction and completion of projects;(3) reduce the overall costs of a project;(4) minimize department financial contributions to pay the costs of a project; and(5) maximize the benefits of project facilities.(b) To encourage private participation in eligible projects, the department may issue requests for proposals from private entities to acquire, design, develop, finance, construct, reconstruct, extend, expand, maintain, or operate eligible projects under a comprehensive development agreement. The department will also accept unsolicited proposals from private entities to acquire, design, develop, finance, construct, reconstruct, extend, expand, maintain, or operate eligible projects under a comprehensive development agreement, and will evaluate those proposals in accordance with these rules and the requirements of Transportation Code, Chapter 223, Subchapter E. The department will consider the extent to which private involvement in existing and future projects of the department is practicable and beneficial, and will analyze whether department participation is practicable and beneficial with respect to projects proposed by responsible private parties. The department may formulate selection criteria for its use in considering the private entities with which the department may contract to undertake responsibilities for eligible projects, as well as for evaluation of projects suggested to the department as suitable for private participation.(c) These rules apply to private involvement in the acquisition, design, development, financing, construction, reconstruction, extension, expansion, maintenance, or operation of all or part of an eligible project or of multiple eligible projects. These rules are not intended to limit or otherwise apply to the department's procurement of goods and services in the ordinary course of its operations, for which the department may seek private participation in accordance with applicable laws, rules, and policies.</content><note type="source"><p>Source Note: The provisions of this §27.1 adopted to be effective July 18, 2002, 27 TexReg 6377; amended to be effective September 18, 2003, 28 TexReg 8005; amended to be effective January 5, 2006, 30 TexReg 9000.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scA/s27.2"><num value="27.2">§27.2</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Affiliate--An entity that directly or indirectly controls, is controlled by, or is under common control with a private entity.(2) Certification of eligibility status form--A notarized form describing any suspension, voluntary exclusion, ineligibility determination actions by an agency of the federal government, indictment, conviction, or civil judgment involving fraud or official misconduct, each with respect to the proposer or any person associated with the proposer in the capacity of owner, partner, director, officer, principal investor, project director/supervisor, manager, auditor, or a position involving the administration of federal funds, covering the three-year period immediately preceding the date of the qualification statement.(3) Commission--The Texas Transportation Commission.(4) Comprehensive development agreement--An agreement with a private entity that, at a minimum, provides for the design and construction, reconstruction, extension, expansion, or improvement of an eligible project and may also provide for the financing, acquisition, maintenance, or operation of an eligible project.(5) Confidential questionnaire--A prequalification form reflecting detailed financial and experience data.(6) Conflict of interest--A circumstance arising out of the existing or past activities, business interests, contractual relationships, or organizational structure of a consultant, proposer, or developer, where:(A) the private entity is or may be unable to give impartial assistance or advice to the department;(B) the private entity's objectivity in performing the scope of work sought by the department is or might be otherwise impaired;(C) the private entity has an unfair competitive advantage;(D) the private entity's performance of services on behalf of the department provides or may provide an unfair competitive advantage to a third party; or(E) there is a reasonable perception or appearance of impropriety or unfair competitive advantage benefiting the private entity or a third party as a result of the private entity's participation in a comprehensive development agreement project.(7) Consultant--An individual or business entity, including any division or affiliate of the entity, retained by the department to provide consultant services in connection with a comprehensive development agreement project. The term includes an individual or business entity providing or that has provided services under contract to a consultant, either directly or through a subconsultant, at any level.(8) Consultant services--All services provided to the department by an independent contractor under a best value or qualifications based procurement method, including architectural and engineering services, right-of-way acquisition services, environmental services, planning services, procurement services, traffic and revenue services, project oversight services, financial services (including financial advisory and banking services), and legal services.(9) Control--The possession, directly or indirectly, of the power to cause the direction of the management of the entity, whether through voting securities, by contract, family relationship, or otherwise.(10) Debarment--Disqualification of a private entity from submitting a qualification submittal or other proposal to the department, as described in §§27.3 - 27.5 of this subchapter, entering into a comprehensive development agreement, or participating as a member of a proposer or developer team.(11) Department--The Texas Department of Transportation.(12) Design--Includes planning services, technical assistance, and technical studies provided in support of the environmental review process undertaken with respect to an eligible project, as well as surveys, investigations, the development of reports, studies, plans and specifications, and other professional services provided for an eligible project.(13) Design-build contract--A comprehensive development agreement that includes the design and construction of a toll project, does not include the financing of a toll project, and may include the acquisition, maintenance, or operation of a toll project.(14) Developer--A private entity (including any division or affiliate of the entity) that has entered into a comprehensive development agreement with the department.(15) Eligible project--A project described in Transportation Code, §223.201, and including a:(A) toll project;(B) state highway improvement project that includes both tolled and nontolled lanes and that may include nontolled appurtenant facilities;(C) state highway improvement project in which the private entity has an interest in the project;(D) state highway improvement project financed wholly or partly with the proceeds of private activity bonds, as defined by Section 141(a), Internal Revenue Code of 1986;(E) project that combines a toll project and a rail facility as defined in Transportation Code, §91.001;(F) nontolled state highway improvement project authorized by the Texas Legislature; or(G) project that combines two or more eligible projects described in Transportation Code, §223.201(f).(16) Environmental and planning services--Some or all of the following services provided to the department with respect to a comprehensive development agreement project:(A) the study and evaluation of alternatives and potential environmental impacts of the proposed project;(B) preparation of environmental analysis and impact documents relating to the project, including facility and corridor analyses and draft and final environmental impact statements; and(C) planning associated with the environmental approval, permitting, and clearance process for the project.(17) Executive director--The executive director of the department or designee not below the level of assistant executive director.(18) Financial services--Some or all of the following services provided to the department with respect to a comprehensive development agreement project:(A) acting in the capacity of financial advisor to the department by providing advice on finance-related issues, including development of short-term or long-term finance strategy and plans of finance for individual projects or on an ongoing basis;(B) identifying and pursuing sources of funds; and(C) acting as underwriter (either lead or co-lead) for a revenue bond issuance on a comprehensive development agreement project or facility, but excluding underwriters for bonds that are not related to a comprehensive development agreement project.(19) Gift or benefit--Anything reasonably regarded as pecuniary gain or pecuniary advantage, including any benefit or favor to another person in whose welfare the beneficiary has a direct and substantial interest, regardless of whether the donor is reimbursed. The term includes, but is not limited to, cash, loans, meals, lodging, services, tickets, door prizes, free entry to entertainment or sporting events, transportation, or hunting or fishing trips.(20) Legal services--Some or all of the following services with respect to a comprehensive development agreement project:(A) providing advice on legal issues and strategies relating to project environmental approvals, planning, procurement, financing, contract administration, risk management, and disputes, claims, or litigation; and(B) reviewing, drafting, and negotiating procurement documents, project contracts, and other documents.(21) Preliminary engineering and architectural services--Preparation of preliminary design and architectural documents and reports, utility and right-of-way mapping, and provision of similar technical documents that will be incorporated by others into a request for qualifications, request for competing proposals and qualifications, or request for proposals, but not including the evaluation or selection of alignments in connection with the development of environmental documents, assistance with development of the solicitation documents, developer scope of work/technical provisions, evaluation criteria for a procurement, or other items that would constitute environmental services or procurement services.(22) Procurement services--Some or all of the following services provided to the department with respect to a comprehensive development agreement project:(A) development of procurement strategy;(B) development and preparation of the solicitation documents, developer scope of work/technical provisions, or contract documents;(C) implementation and administration of the solicitation;(D) preparation or implementation of any evaluation criteria, process, or procedures;(E) evaluation of proposer submissions (e.g., qualification submittals and proposals);(F) negotiation of the contract; and(G) any other activities determined by the department as related to a procurement.(23) Project oversight services--Some or all of the following services provided to the department with respect to a comprehensive development agreement project after award of the comprehensive development agreement:(A) design review;(B) construction oversight and inspection;(C) quality control and quality assurance;(D) project management and overview;(E) contract administration;(F) claims management;(G) public relations and community outreach;(H) right of way acquisition services; and(I) appraisal, legal description, condemnation package, and utility assembly review.(24) Proposal review fee--A fee prescribed by these rules that is required to be tendered with any unsolicited proposal.(25) Proposer--A private entity, including any division or affiliate of the entity, that has submitted a statement of qualifications, proposal, or other submission in order to participate in an ongoing procurement for the development, design, construction, financing, operation, or maintenance of an eligible project under a comprehensive development agreement.(26) Reprimand--A formal, written warning that documents an act or omission committed by the private entity.(27) Request for proposals--A request for submittal of a detailed proposal from private entities to acquire, design, develop, finance, construct, reconstruct, extend, expand, maintain, or operate an eligible project.(28) Request for qualifications--A request for submission by a private entity of a description of that entity's experience, technical competence, and capability to complete an eligible project, and such other information as the department considers relevant or necessary.(29) Sanction--Debarment, suspension, prohibition against participation in particular procurement opportunities, or reprimand.(30) Subconsultant--An individual or business entity that performs or performed work on behalf of a consultant as part of the performance of the consultant's work for the department, either directly or through a subconsultant at any level.(31) Suspension--Immediate, temporary disqualification of a private entity from submitting a qualification submittal or other proposal to the department, as described in §§27.3 - 27.5 of this subchapter, entering into a comprehensive development agreement, or participating as a member of a proposer or developer team. Suspension differs from debarment in that it may take effect prior to and during the hearing process.(32) Toll project--Has the meaning assigned by Transportation Code, §201.001.(33) Traffic and revenue services--Some or all of the following services provided to the department with respect to a comprehensive development agreement project:(A) conducting draft and investment grade traffic and revenue studies, toll elasticity studies, toll feasibility studies, toll pricing studies, or studies or analyses of a similar nature, including peer review studies; and(B) data mining and preparation of reports, analyses, and projections in connection with the traffic and projected revenues.</content><note type="source"><p>Source Note: The provisions of this §27.2 adopted to be effective July 18, 2002, 27 TexReg 6377; amended to be effective September 18, 2003, 28 TexReg 8005; amended to be effective January 5, 2006, 30 TexReg 9000; amended to be effective May 17, 2007, 32 TexReg 2670; amended to be effective September 15, 2011, 36 TexReg 5951; amended to be effective February 20, 2014, 39 TexReg 1000.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scA/s27.3"><num value="27.3">§27.3</num><heading>General Rules for Private Involvement</heading><content>(a) Solicited and unsolicited proposals. The rules in this subchapter address the manner by which the department intends to evaluate submissions received from private entities in response to requests for qualifications and proposals issued by the department, as well as unsolicited proposals received by the department.(b) Reservation of rights. The department reserves all rights available to it by law in administering these rules, including without limitation the right in its sole discretion to:(1) withdraw a request for qualifications or a request for proposals at any time, and issue a new request;(2) reject any and all qualifications submittals or proposals, whether solicited or unsolicited, at any time;(3) terminate evaluation of any and all qualifications submittals or proposals, whether solicited or unsolicited, at any time;(4) issue a request for qualifications relating to a project described in an unsolicited proposal after the rejection or termination of the evaluation of the proposal and any competing proposals;(5) suspend, discontinue, or terminate comprehensive development agreement negotiations with any proposer at any time prior to the actual authorized execution of such agreement by all parties;(6) negotiate with a proposer without being bound by any provision in its proposal, whether solicited or unsolicited;(7) negotiate with a proposer to include aspects of unsuccessful proposals for that project in the comprehensive development agreement;(8) request or obtain additional information about any proposal from any source;(9) modify, issue addenda to, or cancel any request for qualifications or request for proposals;(10) waive deficiencies in a qualifications submittal or proposal, accept and review a non-conforming qualifications submittal or proposal, or permit clarifications or supplements to a qualifications submittal or proposal;(11) revise, supplement, or make substitutions for all or any part of these rules; or(12) retain or return all or any portion of the fees required to be paid by proposers under this subchapter, as provided in subsection (h) of this section.(c) Costs incurred by proposers. Except as provided in §27.4(f) of this subchapter (relating to Solicited Proposals), under no circumstances will the state, the department, or any of their agents, representatives, consultants, directors, officers, or employees be liable for, or otherwise obligated to, reimburse the costs incurred by proposers, whether or not selected for negotiations, in developing solicited or unsolicited proposals or in negotiating agreements.(d) Department information. Any and all information the department makes available to proposers shall be as a convenience to the proposer and without representation or warranty of any kind except as may be expressly specified in the request for qualifications or request for proposals. Proposers may not rely upon any oral responses to inquiries.(e) Procedure for communications. If a proposer has a question or request for clarification regarding these rules or any request for qualifications or request for proposals issued by the department, the proposer shall submit the question or request for clarification in writing to the person responsible for receiving those submissions, as designated in the request for qualifications or request for proposals, and the department will provide the responses in writing. The proposer shall also comply with any other provisions in the request for qualifications or request for proposals regulating communications.(f) Compliance with rules. In submitting any proposal, the proposer shall be deemed to have unconditionally and irrevocably consented and agreed to the foregoing provisions and all other provisions of this subchapter.(g) Proposer information submitted to department. All qualifications submittals or proposals submitted to the department become the property of the department and may be, except as provided by Transportation Code, §223.204, subject to the Public Information Act, Government Code, Chapter 552. Proposers should familiarize themselves with the provisions of Transportation Code, §223.204 and the Public Information Act. In no event shall the state, the department, or any of their agents, representatives, consultants, directors, officers, or employees be liable to a proposer for the disclosure of all or a portion of a proposal submitted under this subchapter. If the department receives a request for public disclosure of all or any portion of a proposal, the department will notify the applicable proposer of the request and inform such proposer that it has an opportunity to assert, in writing, a claimed exception under the Public Information Act or other applicable law within the time period specified in the department's notice and allowed under the Public Information Act. If a proposer has special concerns about information it desires to make available to the department, but which it believes constitutes a trade secret, proprietary information or other information excepted from disclosure, the proposer should specifically and conspicuously designate that information as such in its proposal. The proposer's designation shall not be dispositive of the trade secret, proprietary, or exempted nature of the information so designated.(h) Proposal review fee. A nonnegotiable proposal review fee shall be required for any unsolicited proposal submitted under this subchapter and applied by the department to offset the cost of processing and reviewing the proposal. An unsolicited proposal for a project in the department's unified transportation program must be accompanied by a proposal review fee of $5,000. An unsolicited proposal for a project that is not in the department's unified transportation program must be accompanied by a proposal review fee of $10,000. The executive director may approve a proposal review fee for a particular project in a lower amount. In approving a lower fee, the executive director shall consider the complexity of the project. Failure to submit the required proposal review fee shall bar the department's consideration of the applicable proposal. All fees shall be submitted in the form of a cashier's check made payable to the department. A proposal review fee that is submitted with a proposal for a project that is not an eligible project, or that the department is not otherwise legally authorized to accept shall be returned to the proposer. All other proposal review fees are nonrefundable.(i) Sufficiency of proposal. All proposals, whether solicited or unsolicited, should be as thorough and detailed as possible so that the department may properly evaluate the potential feasibility of the proposed project as well as the capabilities of the proposer and its team members to provide the proposed services and complete the proposed project.(j) Project studies. Studies that the department deems necessary as to route designation, civil engineering, traffic and revenue, environmental compliance, and any other matters will be assigned, conducted, and paid for as negotiated between the department and the successful proposer and set forth in the comprehensive development agreement or in any separate contract for consultant services. Unless otherwise provided in the request for proposals, the department will favor proposals in which the costs for studies will be advanced by the private entity, particularly if the advance is at the private entity's risk. The department may elect to pay, in whole or in part, the costs for such studies in its sole discretion. The department may require that the financial plan for each proposal provide for reimbursement of all related expenses incurred by the department, as well as any department study funds utilized in connection with the project.(k) Proposer's additional responsibilities. The department, in its sole discretion, may authorize the successful proposer to seek licensing, permitting, approvals, and participation required from other governmental entities and private parties, subject to such oversight and review by the department as specified in the comprehensive development agreement or in any separate contract for consultant services.(l) Proposer's work on environmental review of eligible project. The department may solicit proposals or accept unsolicited proposals in which the proposer is responsible for providing assistance in the environmental review and clearance of an eligible project, including the preparation of environmental impact assessments and analyses and the provision of technical assistance and technical studies to the department or its environmental consultant relating to the environmental review and clearance of the proposed project. The environmental review and the documentation of that review shall at all times be conducted as directed by the department and subject to the oversight of the department, and shall comply with all requirements of state and federal law, applicable federal regulations, and the National Environmental Policy Act (42 U.S.C. §4321 et seq.), if applicable, including but not limited to the study of alternatives to the proposed project and any proposed alignments, procedural requirements, and the completion of any and all environmental documents required to be completed by the department and any federal agency acting as a lead agency. The department:(1) shall determine the scope of work to be performed by the private entity or its consultants or subcontractors;(2) shall specify the level of design, alternatives to be reviewed, impacts to consider, and other information to be provided by the private entity or its consultants or subcontractors; and(3) shall independently review any studies and conclusions reached by the private entity or its consultants or subcontractors before their inclusion in an environmental document.(m) Effect of environmental requirements on comprehensive development agreement. Completion of the environmental review is required before the private entity may be authorized to conduct and complete the final design and start construction of a project. Additionally, all applicable state and federal environmental permits and approvals must be obtained before the private entity may start construction of the portion of a project requiring the permit or approval. Unless and until that occurs, the department is not bound to any further development of the project. The department, and any federal agency acting as a lead agency, may select an alternative other than the one in the proposed project, including the "no-build" alternative. A comprehensive development agreement shall provide that the agreement will be modified as necessary to address requirements in the final environmental documents, and shall provide that the agreement may be terminated if the "no-build" alternative is selected or if another alternative is selected that is incompatible with the requirements of the agreement.(n) Public meetings and hearings. All public meetings or hearings required to be held pursuant to applicable law or regulation will be directed and overseen by the department, with participation by such other parties as it deems appropriate.(o) Additional matters. Any matter not specifically addressed in this subchapter which pertains to the acquisition, design, development, financing, construction, reconstruction, extension, expansion, maintenance, or operation of an eligible project pursuant to this subchapter, shall be deemed to be within the primary purview of the commission, and all decisions pertaining thereto, whether or not addressed in this subchapter, shall be as determined by the commission, subject to the provisions of applicable law.(p) Performance and payment security. The department shall require a private entity entering into a comprehensive development agreement to provide a performance and payment bond or an alternative form of security in an amount that, in the department's sole determination, is sufficient to ensure the proper performance of the agreement, and to protect the department and payment bond beneficiaries supplying labor or materials to the private entity or a subcontractor of the private entity. Bonds and alternate forms of security shall be in the form and contain the provisions required in the request for proposals or the comprehensive development agreement, with such changes or modifications as the department determines to be in the best interest of the state. In addition to, or in lieu of, performance and payment bonds, the department may require:(1) a cashier's check drawn on a federally insured financial institution, and drawn to the order of the department;(2) United States bonds or notes, accompanied by a duly executed power of attorney and agreement authorizing the collection or sale of the bonds or notes in the event of the default of the private entity or a subcontractor of the private entity, or such other act or event that, under the terms of the comprehensive development agreement, would allow the department to draw upon or access such security;(3) an irrevocable letter of credit issued or confirmed by a financial institution to the benefit of the department, meeting the credit rating and other requirements prescribed by the department, and providing coverage for a period of at least one year following final acceptance of the project and completion of any warranty period;(4) an irrevocable letter signed by a guarantor meeting the net worth or other financial requirements prescribed in the request for proposals or comprehensive development agreement, and which guarantees, to the extent required under the request for proposals or comprehensive development agreement, the full and prompt payment and performance when due of the private entity's obligations under the comprehensive development agreement and other documents and agreements executed by the private entity in connection with the comprehensive development agreement; or(5) any other form of security deemed suitable by the department.(q) Performance evaluations. The department will evaluate the performance of a private entity that enters into a comprehensive development agreement, and will evaluate the performance of the private entity's major team members, consultants, and subcontractors, in accordance with the requirements of this subsection. Evaluations will be conducted annually at twelve month intervals during the term of the comprehensive development agreement, upon termination of the comprehensive development agreement, and when the department determines that work is materially behind schedule or not being performed according to the requirements of the comprehensive development agreement. Optional evaluations may be conducted as provided in the comprehensive development agreement. Acts or omissions that are the subject of a good faith dispute will not be considered. After a performance evaluation is conducted, and for at least 30 days before the evaluation becomes final and is used by the department, the department will provide for review and comment a copy of the performance evaluation report to the entity being evaluated and, if that entity is a consultant or subcontractor, to the entity that entered into the comprehensive development agreement. The department will consider and take into account any submitted comments in finalizing the performance evaluation report. The results of performance evaluations will be provided to the entity that was evaluated and may be used in the evaluation of qualifications submittals and proposals under §27.4 of this subchapter and §9.153 of this title (relating to Solicitation of Proposals) by proposers that include the major team members, consultants, and subcontractors evaluated.</content><note type="source"><p>Source Note: The provisions of this §27.3 adopted to be effective July 18, 2002, 27 TexReg 6377; amended to be effective September 18, 2003, 28 TexReg 8005; amended to be effective August 19, 2004, 29 TexReg 7998; amended to be effective January 5, 2006, 30 TexReg 9000; amended to be effective May 17, 2007, 32 TexReg 2670; amended to be effective July 19, 2012, 37 TexReg 5339.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scA/s27.4"><num value="27.4">§27.4</num><heading>Solicited Proposals</heading><content>(a) Applicability. If the department develops a concept for private participation in an eligible project, it will solicit participation in accordance with the requirements of this section. (b) Request for qualifications - notice. If authorized by the commission to issue a request for qualifications for an eligible project, the department will set forth the basic criteria for professional experience, technical competence, and capability to complete a proposed project, and such other information as the department considers relevant or necessary in the request for qualifications. The department will publish notice advertising the issuance of the request for qualifications in the Texas Register and will post the notice and the request for qualifications on the department's Internet website. The department may also elect to furnish the request for qualifications to businesses in the private sector that the department otherwise believes might be interested and qualified to participate in the project which is the subject of the request for qualifications. (c) Request for qualifications - content. At its sole option, the department may elect to furnish conceptual designs, fundamental details, technical studies and reports or detailed plans of the proposed project in the request for qualifications. The request for qualifications may request one or more conceptual approaches to bring the project to fruition. (d) Request for qualifications - evaluation. The department, after evaluating the qualification submittals received in response to a request for qualifications, will identify and approve a "short-list" that is composed of those entities that are considered most qualified to submit detailed proposals for a proposed project. In evaluating the qualification submittals, the department will consider the results of performance evaluations conducted by the department under §27.3 of this subchapter (relating to General Rules for Private Involvement) and §9.152 of this title (relating to General Rules for Design-Build Contracts) determined by the department to be relevant to the project, the results of other performance evaluations determined by the department to be relevant to the project, and other objective evaluation criteria that the department considers relevant to the project, which may include the private entity's financial condition, management stability, technical capability, experience, staffing, and organizational structure. The request for qualifications will include the criteria used to evaluate the qualification submittals and the relative weight given to the criteria. The department shall advise each entity providing a qualification submittal whether it is on the short-list of qualified entities. (e) Requests for proposals. If authorized by the commission, the department will issue a request for proposals from all private entities qualified for the short-list, consisting of the submission of detailed documentation regarding the project. The request for proposals will require the submission of a proposed price breakdown if required by §27.10 of this subchapter, and may require the submission of additional information relating to: (1) the proposer's qualifications and demonstrated technical competence; (2) the feasibility of developing the project as proposed; (3) detailed engineering or architectural designs; (4) the proposer's ability to meet schedules; (5) a detailed financial plan, including costing methodology, cost proposals, and project financing approach; or (6) any other information the department considers relevant or necessary. (f) Requests for proposals - payment for work product. The request for proposals may stipulate an amount of money, as authorized under Transportation Code, §223.203(m), that the department will pay to an unsuccessful proposer that submits a detailed proposal that is responsive to the requirements of the request for proposals. The commission shall approve the amount of the payment to be stipulated in the request for proposals. In determining whether to approve a payment, the commission shall consider: (1) the effect of a payment on the department's ability to attract meaningful proposals and to generate competition; (2) the work product expected to be included in the proposal and the anticipated value of that work product; and (3) the costs anticipated to be incurred by a private entity in preparing a proposal. (g) Joint proposal by private entity and environmental consultant. If the department solicits proposals in which an entity affiliated with the proposing private entity will act as the department's environmental consultant for an eligible project, the request for proposals may require the submission of a consolidated joint proposal from the private entity and the environmental consultant or subcontractor that results in a comprehensive development agreement and separate contract for environmental services. (h) Detailed proposal evaluation criteria. The proposals will be evaluated by the department based on the results of performance evaluations conducted by the department under §27.3 of this subchapter and §9.152 of this title determined by the department to be relevant to the project, the results of other performance evaluations determined by the department to be relevant to the project, the proposed price breakdown included in the proposal if required by §27.10 of this subchapter, and other objective evaluation criteria the department deems appropriate for the project, which may include the reasonableness of any financial plan submitted by a proposer, the reasonableness of the project schedule, reasonableness of assumptions (including those related to ownership, legal liability, law enforcement, and operation and maintenance of the project), forecasts, financial exposure and benefit to the department, compatibility with other planned or existing transportation facilities, likelihood of obtaining necessary approvals and other support, cost and pricing, toll rates and projected usage, scheduling, environmental impact, manpower availability, use of technology, governmental liaison, and project coordination, with attention to efficiency, quality of finished product and such other criteria, including conformity with department policies, guidelines and standards, as may be deemed appropriate by the department to maximize the overall performance of the project and the resulting benefits to the state. Specific evaluation criteria and requests for pertinent information will be set forth in the request for proposals. (i) Apparent best value proposal. Based on the evaluation and the evaluation criteria described under subsection (h) of this section and set forth in the request for proposals, the department will rank all proposals that are complete, responsive to the request for proposals, and in conformance with the requirements of this subchapter, and may select the private entity whose proposal offers the apparent best value to the department. If the request for proposals provides for a consolidated joint proposal to be submitted for a separate environmental consultant contract as well as the comprehensive development agreement, the request for proposals shall specify how the two parts of the proposal will be evaluated in making the overall best value determination. (j) Selection of entity. The department shall submit a recommendation to the commission regarding approval of the proposal determined to provide the apparent best value to the department. The commission may approve or disapprove the recommendation, and if approved, will award the comprehensive development agreement to the apparent best value proposer. Award may be subject to the successful completion of negotiations, any necessary federal action, execution by the executive director of the comprehensive development agreement, and satisfaction of such other conditions that are identified in the request for proposals or by the commission. The proposers will be notified in writing of the department's rankings. The department shall also make the rankings available to the public. (k) Negotiations with selected entity. If authorized by the commission, the department will attempt to negotiate a comprehensive development agreement with the apparent best value proposer to design, develop, construct, finance, reconstruct, extend, expand, maintain, or operate the project and (if included in the request for proposals) an environmental consultant contract. If a comprehensive development agreement satisfactory to the department cannot be negotiated with that proposer, or if, in the course of negotiations, it appears that the proposal will not provide the department with the overall best value, the department will formally end negotiations with that proposer and, in its sole discretion, either: (1) reject all proposals; (2) modify the request for proposals and begin again the submission of proposals; or (3) proceed to the next most highly ranked proposal and attempt to negotiate a comprehensive development agreement with that entity in accordance with this paragraph. (l) Negotiations with environmental consultant. If an environmental consultant contract satisfactory to the department cannot be negotiated with the selected consultant, the department may elect to terminate negotiations and proceed with the negotiation of the comprehensive development agreement only.</content><note type="source"><p>Source Note: The provisions of this §27.4 adopted to be effective July 18, 2002, 27 TexReg 6377; amended to be effective September 18, 2003, 28 TexReg 8005; amended to be effective January 5, 2006, 30 TexReg 9000; amended to be effective May 17, 2007, 32 TexReg 2670; amended to be effective December 6, 2007, 32 TexReg 8859; amended to be effective July 19, 2012, 37 TexReg 5339; amended to be effective February 20, 2014, 39 TexReg 1000.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scA/s27.5"><num value="27.5">§27.5</num><heading>Unsolicited Proposals</heading><content>(a) Applicability. Private entities may submit unsolicited proposals to the department requesting participation in an eligible project. Unsolicited proposals that comply with the requirements of this section shall be processed in accordance with the requirements of this section. (b) Proposal contents. A proposal requesting department participation in a proposed project shall be filed with the department and must include the following information: (1) the limits, scope, and location of the proposed project, including, where applicable and available, project length, project termini, number of lanes and lane miles, number and type of structures, and preliminary right-of-way requirements; (2) all proposed interconnections with other transportation facilities and improvements to those facilities that will be necessary if the project is developed; (3) if available, a conceptual project design and preliminary geotechnical information; (4) information describing how the project will be consistent with the Statewide Transportation Plan and, if appropriate, with the metropolitan transportation plan developed by the metropolitan planning organization; (5) the results expected from project implementation, including anticipated financial performance and improvement to mobility and capacity, and the critical factors for the project's success; (6) all studies previously completed by the proposer concerning the project; (7) information concerning the experience, expertise, technical competence, and qualifications of the proposer and of each member of the proposer's management team and of other key employees, consultants, and subcontractors, including the name, address, and professional designation of each member of the proposer's management team and of other key employees, consultants, and subcontractors, the capability of the proposer to undertake the proposed project, and information responsive to the evaluation criteria listed in §27.4(d) of this subchapter; (8) a specific description of the level and nature of participation sought from the department, including technical support and financial participation, and the desired schedule for that participation; (9) to the extent then available, information relevant to the department's performance of its environmental review responsibilities under §27.3(l) and (m) of this subchapter; (10) a description of potential social, economic, and environmental impacts and potentially competing facilities, including the potential impacts of competing facilities on the proposed project; (11) other information of probable interest to the department; and (12) the proposal review fee required by §27.3(h) of this subchapter. (c) Preliminary evaluation of unsolicited proposal. Any proposal properly filed with the department in accordance with subsection (b) of this section and accompanied by the proper proposal review fee will be reviewed by the department. The department may meet with the proposer as necessary to clarify the proposal, or may issue requests for clarification. Based on that review and any clarification, the department will determine whether to further evaluate its requested participation in the applicable project. If the department determines that further evaluation of the proposal is warranted, a recommendation will be made to the commission to issue a request for competing proposals and qualifications. That recommendation shall be based on whether the proposed project: (1) enhances the state transportation network, based on the project's: (A) compatibility with existing and planned transportation facilities; (B) furtherance of state, regional, and local transportation plans, programs, policies, and goals; and (C) consistency with system planning objectives and priorities and projects under development; (2) is ready to proceed to procurement, based on project constraints and characteristics, financial resources designated or available for the proposed project, the status of environmental approvals, project acceptability, and whether meaningful competition can be generated; (3) includes or is likely to foster design or other innovation; and (4) such other criteria as the department deems relevant. (d) Approval to request competing proposals and qualifications. If the recommendation is that the department further evaluate the proposal and its requested participation in the applicable project, and the commission approves that recommendation, the department will publish notice of that decision and provide an opportunity for the submission of competing proposals and qualifications as provided in this section. The department will publish a notice in the Texas Register and in one or more newspapers of general circulation in this state. The notice will state that the department has received an unsolicited proposal under these rules, that it intends to evaluate the proposal, that it may negotiate a comprehensive development agreement with the proposer based on the proposal, and that it will accept for simultaneous consideration any competing proposals and qualifications that the department receives in accordance with these rules within 45 days of the initial publication of the notice in the Texas Register, or such additional time as authorized by commission order. In determining whether to authorize additional time for submission of competing proposals and qualifications, the commission will consider the complexity of the proposed project. The notice will summarize the proposed project, and identify its proposed location and any proposed interconnections with other transportation facilities. The request for competing proposals and qualifications will specify the criteria that will be used to evaluate the proposals, and the relative weight given to the criteria. The department may provide traffic counts, forecasts, conceptual designs, and other available technical studies, reports, and data either in the request for competing proposals and qualifications or upon request of any entity responding to the request. The department may also elect to furnish the request for competing proposals and qualifications to businesses in the private sector that the department otherwise believes might be interested and qualified to participate in the project which is the subject of the request for competing proposals and qualifications. (e) Submission of revised proposal by original proposer. The private entity submitting the original unsolicited proposal shall be required to submit a proposal and qualification submittal in response to the request for competing proposals and qualifications. A proposal and qualification submittal submitted by that entity and any other entity in response to a request must contain the information required by subsection (b) of this section and any other information required in the request for competing proposals and qualifications. (f) Exclusive procedure to consider competing proposals and qualifications submittals. Failure by a prospective proposer to submit a competing proposal and qualification submittal within the 45-day period or such additional time as authorized by the commission, shall preclude the proposal and qualification submittal from consideration by the department unless and until the department terminates consideration of, or negotiations on, the original unsolicited proposal, as supplemented in response to the request for competing proposals and qualifications, and any and all competing proposals and qualification submittals received within that time period. The department shall not be obligated to grant requests to extend the time period to submit competing proposals and qualification submittals. The receipt of one or more competing unsolicited proposals during that period will not trigger the posting or publication of a new notice or the commencement of any new time period. (g) Noncompeting proposals. If the department receives proposals that have certain characteristics in common with the original unsolicited proposal, yet differ in other material respects, the department reserves the right, in its sole discretion, to treat such a proposal as either a competing proposal and qualification submittal or a noncompeting proposal. Because of the consequences to a proposer of failing to submit a competing proposal and qualification submittal within the 45-day period, or such additional time as authorized by the commission, prospective proposers are strongly urged to monitor the department's notices of unsolicited proposals received, and be prepared to submit within that time period if they perceive that a proposal they are considering or are preparing bears certain similarities to, or has characteristics in common with, an unsolicited proposal which is the subject of a notice. A proposal that is deemed to be noncompeting will be evaluated as a new unsolicited proposal in accordance with this section. (h) Evaluation of proposals - competing proposals and qualification submittals. Upon the expiration of the 45-day period, or such additional time as authorized by the commission, the department will subject the revised proposal submitted by the original proposer, together with any and all properly submitted competing proposals and qualification submittals, to the following evaluation process. If one or more properly submitted competing proposals and qualification submittals are received, the department shall review the proposals and qualification submittals utilizing the evaluation criteria set forth in §27.4(d) of this subchapter and the request for competing proposals and qualifications, and the information specified in subsection (b) of this section. The department will identify and approve a short-list that is composed of those proposers that are considered most qualified to submit detailed proposals for the proposed project, and the process will proceed in the manner described in §27.4(e) - (l) of this subchapter. (i) Evaluation of proposals - no competing proposals and qualification submittals. If no properly submitted competing proposal and qualification submittal is received, the department will evaluate the revised proposal submitted by the original proposer, proceeding, to the extent applicable, in the manner described in §27.4(h) - (l) of this subchapter.</content><note type="source"><p>Source Note: The provisions of this §27.5 adopted to be effective July 18, 2002, 27 TexReg 6377; amended to be effective September 18, 2003, 28 TexReg 8005; amended to be effective January 5, 2006, 30 TexReg 9000; amended to be effective May 17, 2007, 32 TexReg 2670.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scA/s27.6"><num value="27.6">§27.6</num><heading>Protest Procedures</heading><content>(a) Applicability. This section prescribes exclusive procedures for protests regarding:(1) allegations that the terms of a request for qualifications, request for competing proposals and qualifications, or request for proposals are wholly ambiguous, contrary to legal requirements applicable to the procurement, or exceed the department's authority;(2) a determination as to whether a qualifications submittal or proposal is responsive to the requirements of the request for qualifications, request for competing proposals and qualifications, or request for detailed proposals, as applicable;(3) short-listing determinations; and(4) award of a comprehensive development agreement.(b) Required early communication for certain protests. Protests concerning the issues described in subsection (a)(1) of this section may be filed only after the proposer has informally discussed the nature and basis of the protest with the department, following the procedures for those discussions prescribed in the request for qualifications, request for competing proposals and qualifications, or request for detailed proposals, as applicable.(c) Deadlines for protests.(1) Protests concerning the issues described in subsection (a)(1) of this section must be filed as soon as the basis for the protest is known, but no later than 20 calendar days prior to the date for submission of the qualifications submittal or proposal, unless the protest relates to an addendum to the request, in which case the protest must be filed no later than 5 business days after the addendum is issued.(2) Protests concerning the issues described in subsection (a)(2) of this section must be filed no later than 5 business days after receipt of the notification of non-responsiveness.(3) Protests concerning the issues described in subsections (a)(3) and (4) of this section must be filed no later than 10 business days after the earliest of the notification of short-listing or intent to award, and the public announcement of the short-listing determination or the apparent best value proposer.(d) Content of protest. Protests shall completely and succinctly state the grounds for protest, its legal authority, and its factual basis, and shall include all factual and legal documentation in sufficient detail to establish the merits of the protest. Statements shall be sworn and submitted under penalty of perjury.(e) Filing of protest. Protests shall be filed in the manner and at the address specified in the request for qualifications, request for competing proposals and qualifications, or request for proposals, and a copy of the protest shall be submitted to all other proposers for the project.(f) Comments from other proposers. Other proposers may file statements in support of or in opposition to the protest within 7 days of the filing of the protest. The department shall promptly forward copies of all such statements to the protestant. Any statements shall be sworn and submitted under penalty of perjury.(g) Burden of proof. The protestant shall have the burden of proving its protest. No hearing will be held on the protest. The protest shall be decided on the basis of written submissions.(h) Decision on protest. The department employee specified in the request for qualifications, request for competing proposals and qualifications, or request for proposals, as applicable, shall issue a decision on the protest within 30 days of the filing of the protest. The designated employee shall not be a member of a subcommittee or committee involved in the evaluation of proposals for the project.(i) Protestant's payment of costs. If a protest is denied, the proposer filing the protest shall be liable for the department's costs reasonably incurred to defend against or resolve the protest, including legal and consultant fees and costs, and any unavoidable damages sustained by the department as a consequence of the protest.(j) Rights and obligations of proposers. Each proposer, by submitting its proposal, expressly recognizes the limitation on its rights to protest provided in this section, and expressly waives all other rights and remedies and agrees that the decision on the protest is final and conclusive. If a proposer disregards, disputes, or does not follow the exclusive protest remedies provided in this section, it shall indemnify and hold the department and its officers, employees, agents, and consultants harmless from and against all liabilities, fees and costs, including legal and consultant fees and costs, and damages incurred or suffered as a result of such proposer's actions. Each proposer, by submitting a proposal, shall be deemed to have irrevocably and unconditionally agreed to this indemnity obligation.</content><note type="source"><p>Source Note: The provisions of this §27.6 adopted to be effective January 5, 2006, 30 TexReg 9000.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scA/s27.7"><num value="27.7">§27.7</num><heading>Design-Build Contracts</heading><content>(a) Applicability. The department may prequalify a private entity to submit a detailed proposal to provide services under a design-build contract. The department is not required to publish a request for qualifications for a design-build contract, and may enter into a design-build contract based solely on an evaluation of detailed proposals submitted by prequalified private entities in response to a request for proposals. If the department develops a concept for private participation in an eligible design-build project, or proceeds with the further evaluation of an unsolicited proposal for an eligible design-build project, and chooses to prequalify private entities to submit a detailed proposal without publishing a request for qualifications, it will proceed in accordance with the requirements of this section. Each entity comprising a team that intends to submit a detailed proposal must be prequalified or precertified in accordance with the requirements of this section.(b) Prequalification.(1) Audited financial qualification of construction, maintenance, and operations providers. Unless waived under subparagraph (B) of this paragraph, to be eligible to propose on a design-build contract as a provider of construction services, maintenance services, or operations services, a potential proposer must be prequalified in accordance with subparagraph (A) of this paragraph.(A) Requirements.(i) To be prequalified to propose, either individually or as a member of the proposers' team, as a provider of construction, maintenance, or operations services on a design-build contract, a private entity must:(I) submit a completed confidential questionnaire to the department's Construction Division in Austin at any time, but at least 120 days prior to the due date for a response to a request for proposals, in a form prescribed by the department, which shall include certain information concerning the proposer's equipment, experience, and financial condition;(II) have its certified public accountant submit the audited and other financial information required by the current edition of the department's Bulletin Number 2, titled "Contractor's Financial Resources";(III) demonstrate it has the financial capacity to complete, operate, and maintain, as applicable, a specific project. Factors that will be considered in assessing a proposer's financial capacity include:(-a-) the proposer's current financial strength;(-b-) the proposer's credit quality;(-c-) any claims, litigation, or equivalent current or pending against the proposer;(IV) demonstrate, if it will be the prime provider of construction services under a contract, that it is capable of obtaining payment and performance bonds in the amount of $250 million, or 100% of the construction cost of the project, whichever is less, from a surety rated in the top two categories by two nationally recognized rating agencies or at least A minus (A-) or better and Class VIII or better by A.M. Best and Company, or an alternative form of security in the amount of $250 million, or 100% of the construction cost of the project, whichever is less, in accordance with §27.3 of this subchapter (relating to General Rules for Private Involvement);(V) satisfactorily comply with any technical qualification requirements determined by the department to be necessary for a specific project; and(VI) for the purpose of proposing on federal-aid projects, properly complete the Certification of Eligibility Status form contained in the Confidential Questionnaire.(ii) The department will make its examination and determination based on the information submitted, and advise the potential proposer of its approved design-build contract capacity. Information adverse to the potential proposer contained in the Certification of Eligibility Status form will be reviewed by the department and the Federal Highway Administration, and may result in the proposer being declared ineligible to submit proposals on federal-aid projects.(iii) Satisfactory audited financial information and financial capacity will grant a 36-month period of prequalification from the date of the department's determination.(iv) The department may require current audited information at any time if circumstances develop which are factors that could alter the firm's financial condition, ownership structure, affiliation status, or ability to operate as an on-going concern. The potential proposer must immediately notify the department in writing of any material changes in its financial condition that occur while the department is conducting its examination.(v) The department may grant a 90 day grace period of prequalification, for the purpose of preparing and submitting current audited information prior to the expiration of the 90 day period of prequalification.(B) Waiver.(i) The department will waive the audited financial qualification requirements of subparagraph (A) of this paragraph if the department's estimate is $10,000,000 or less unless the executive director or the director's designee determines that audited financial qualification should be required due to:(I) safety considerations;(II) the complexity of the work; or(III) the potential impact of the work on adjacent property owners.(ii) To be eligible to propose on a design-build contract for which the audited financial qualification requirements have been waived under clause (i) of this subparagraph, a proposer must:(I) submit a proposer's questionnaire, in a form prescribed by the department, which includes certain information concerning a proposer's equipment and experience;(II) submit unaudited and other data as required in the instructions to the proposer's questionnaire;(III) demonstrate it has the financial capacity to complete, operate, and maintain, as applicable, a specific project. Factors that will be considered in assessing a proposer's financial capacity include:(-a-) the proposer's current financial strength;(-b-) the proposer's credit quality;(-c-) any claims, litigation, or equivalent current or pending against the proposer;(IV) demonstrate, if it will be the prime provider of construction services under a contract, it is capable of obtaining payment and performance bonds from a surety rated in the top two categories by two nationally recognized rating agencies or at least A minus (A-) or better and Class VIII or better by A.M. Best and Company, in an amount that is sufficient to ensure the proper performance of any agreement and protects the department and payment bond beneficiaries supplying labor or materials to the proposer or a subcontractor of the proposer, or an alternative form of security in accordance with §27.3 of this subchapter;(V) satisfactorily comply with any technical qualification requirements determined by the department to be necessary on a specific project; and(VI) for a federal-aid project, properly complete the Certification of Eligibility Status form contained in the proposer's questionnaire. Information adverse to the potential proposer contained in the certification will be reviewed by the department and by the Federal Highway Administration, and may result in the proposer being declared ineligible to submit a proposal on a federal-aid project).(iii) The department will make its examination and determination based on the information submitted, and advise the proposer of its approved design-build contract capacity.(I) A proposer with no prior experience in construction, maintenance, or operations, or a negative working capital position (i.e., financial statements indicate that current liabilities exceed current assets), will receive a design-build contract capacity of not less than $1,000,000.(II) An experienced proposer with sufficient working capital and financial capability, as determined by the department, will receive a design-build contract capacity of:(-a-) not less than $10,000,000 for a proposer submitting compiled financial information if the proposer has at least one year experience in construction, maintenance, or operations and has satisfactorily completed at least two projects in these fields;(-b-) not less than $25,000,000 for a proposer submitting compiled financial information if the proposer has at least two years experience in construction, maintenance, or operations and has satisfactorily completed at least four projects in these fields. Those contractors possessing more than two years experience but less than five years experience will be granted at least an additional $5,000,000 in design-build contract capacity for each additional year of experience in construction, maintenance, or operations; and(-c-) over $50,000,000 for a proposer submitting reviewed financial information if the proposer has at least five years of experience in construction, maintenance, or operations and has satisfactorily completed at least four projects in these fields.(2) Financial statements. For purposes of this section:(A) An audited financial statement involves an examination of the accounting system, records, and financial statements by an independent certified public accountant in accordance with generally accepted auditing standards. Based on the examination, the auditor expresses an opinion concerning the fairness of the financial statements in conformity with generally accepted accounting principles.(B) A reviewed financial statement is substantially less in scope than an audited financial statement, and consists primarily of inquiries of proposer personnel and analytical procedures applied to financial data by an independent certified public accountant. Only negative assurance is expressed by the auditor, meaning the auditor is not aware of any material modifications that should be made in order for the financial statements to conform to generally accepted accounting principles.(C) A compiled financial statement is limited to presenting in the form of financial statements information that is the representation of management. No opinion or any other form of assurance is expressed on the statements by the auditor.(c) Precertification.(1) Contract Eligibility. To be eligible to perform work on a design-build contract in the categories approved according to §9.43 of this title (relating to Precertification Requirements), a prime provider and a subprovider must be precertified in accordance with this section unless:(A) the anticipated work in an individual work category is less than 2.5% of the contract; or(B) the department has waived the precertification requirements for a contract that is less than $10,000,000.(2) Application.(A) Registered architects, registered professional engineers, registered or licensed professional surveyors, and other technical staff who desire to be precertified by the department to perform engineering, architectural, or surveying work on design-build contracts, shall submit a completed precertification application to the department for review and determination of precertification status.(B) An application form prescribed by the department may be obtained by contacting the Texas Department of Transportation, Design Division, 125 East 11th Street, Austin, Texas 78701-2483, or through the department's web site.(C) The application form will request information concerning the experience of the individual.(D) The precertification web site will include:(i) a copy of the application form;(ii) instructions concerning submittal of information for precertification, including format and length restrictions for data to be submitted; and(iii) the requirements for precertification in each category.(E) The submittal date for review deadlines as described in paragraph (3) of this subsection shall be the date the precertification application is received by the department.(F) The precertification of a provider by the department does not guarantee that work will be awarded to that provider.(3) Deadline. When precertification is required as described in paragraph (1) of this subsection, prime providers and subproviders must be precertified in the technical categories by the due date for responses to a request for proposals to be eligible to submit a response.(4) Data management. The department will maintain the qualification information submitted in the precertification application by the firm for an employee.(5) Firm and employee status.(A) A firm may be precertified in a work category if the firm has a current employee precertified in the category.(B) A firm employee may be precertified in a work category if the employee possesses the skills and experience to meet the requirements. An employee is not precertified based on the firm's experience.(C) A precertification will transfer with the employee if the employee leaves the firm.(D) The department may review a firm's information to evaluate whether the support, equipment, and other resources necessary to do the work are provided to the employee.(E) A firm with one employee who is precertified in multiple work categories is precertified in those categories. When required, prime providers and subproviders must be precertified in the categories of work they will be performing; however, a provider or subprovider is not required to be precertified in every category of work involved in the contract, unless it will be performing in a lead capacity on all categories of work.(6) Review process.(A) An individual, and therefore the firm, will be precertified within 60 days of receipt of complete and accurate information for the submittal, or notified in writing within the same time period that they did not meet the requirements for precertification or that additional submittals will be required for review.(B) If the submittal is incomplete, a firm will be requested to submit additional information for review. The firm shall submit such information within 30 days of receipt of the department's request for such information. If the information is not provided within 30 days after receipt of the request, the application for precertification will be processed with the information available. The department will make a determination on precertification status within 60 days of receipt of the additional information.(C) The department will consider the following factors in reviewing the precertification applications:(i) current license or registration;(ii) personal experience and training; and(iii) work category requirements as maintained on the department's web site.(7) Updates. A firm must report any change in the information included in the original application no later than 45 days after the change occurs.(8) Appeal. A firm may appeal denial of precertification by submitting additional information to the department within 30 days of receipt of written notification of denial. This information shall justify why the applicant meets the requirements for precertification. The department will review the information and make a determination regarding precertification. A firm may file a written complaint regarding precertification denial with the executive director or his or her designee.(9) Precertification requirements.(A) Eligible employees. A firm may be precertified in the technical work categories maintained on the department's web site by providing the listed requirements. A firm may only submit an application for an individual who is employed by that firm at the time of submittal for precertification.(B) Experience. The experience used to meet requirements may be either prior to or after licensure unless otherwise stated in a specific category. For the purpose of experience for precertification, the employee may be licensed to practice in any state for which that experience is recognized by the:(i) Texas Board of Professional Engineers for engineers;(ii) Texas Board of Architectural Examiners for architects; or(iii) Texas Board of Professional Land Surveying for land surveyors.(10) Work categories. The approved precertification work category definitions and requirements will be maintained on the department's web site. The commission, by minute order, may add, revise, or delete a work category.(d) Requests for proposals for design-build contracts.(1) Requests for proposals. If authorized by the commission, the department will issue a request for proposals from all private entities prequalified in accordance with this section, and the process will proceed in the manner described in §27.4(e) - (l) of this subchapter.(2) Additional evaluation criteria. In addition to the evaluation criteria set forth in §27.4(e) - (l), design innovation shall also be a criterion in evaluation of proposals submitted in response to a request for proposals for a design-build contract.</content><note type="source"><p>Source Note: The provisions of this §27.7 adopted to be effective May 17, 2007, 32 TexReg 2670.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scA/s27.8"><num value="27.8">§27.8</num><heading>Conflict of Interest and Ethics Policies</heading><content>(a) Purpose. This section prescribes ethical standards of conduct applicable to private entities, including consultants and subconsultants, participating in the department's comprehensive development agreement program. A private entity's failure to comply with these standards of conduct may result in the private entity's preclusion from participation in a project or sanctions being imposed under §27.9 of this subchapter (relating to Sanctions).(b) Gifts and benefits. A proposer, developer, consultant, or subconsultant participating in the comprehensive development agreement program, or an affiliate of any of those entities, may not offer, give, or agree to give a gift or benefit to a member of the commission or to a department employee whose work for the department includes the performance of procurement services relating to a project under this subchapter, or who participates in the administration of a comprehensive development agreement. Notwithstanding this prohibition, a consultant or subconsultant (unless a member of a proposer or developer team, if authorized under subsection (c) of this section) may offer, give, or agree to give a token item that does not exceed an estimated value of $25 (excluding cash, checks, stocks, bonds, or similar items), where the item is distributed generally as a normal means of advertising.(c) Conflicts of interest.(1) Purpose. This subsection prescribes department policy on conflicts of interest relating to consultants and subconsultants participating in the comprehensive development agreement program, and thereby:(A) protects the integrity and fairness of the program and all procurements carried out by the department as part of the program;(B) avoids circumstances where a consultant, proposer, or developer obtains, or appears to obtain, an unfair competitive advantage as a result of work performed by a consultant or subconsultant;(C) provides guidance to private entities so they may assess, and make informed business decisions concerning their participation in the program; and(D) protects the department's interests and confidential and sensitive project-specific and programmatic information.(2) Applicability. This subsection applies to all comprehensive development agreement projects undertaken by the department. This subsection applies to consultants and subconsultants, and to individual employees of consultants and subconsultants who participated in the performance of services for the department. A reference in this subsection to a consultant or subconsultant also means individual employees of a consultant or subconsultant who participated in the performance of services for the department. To the extent that the department has previously consented in writing to a consultant's or subconsultant's performance of services that are in conflict with this subsection, participation on a proposer team as an equity owner or team member, acting as a consultant or subconsultant to a proposer, or having a financial interest in a proposer or an equity owner or team member of a proposer, this subsection does not modify or alter the prior consent. The foregoing does not prevent, however, the application of this subsection to the consultant or subconsultant for other projects, including taking into account the performance of services on the project for which consent was obtained. This subsection may by extension prohibit or restrict the ability of a proposer to have a consultant or subconsultant participate on the proposer team as an equity owner or team member, act as a consultant or subconsultant to the proposer, or have a financial interest in the proposer or an equity owner or team member of the proposer.(3) Period in which a conflict of interest applies. If a determination is made under this subsection that the performance of services by a consultant or subconsultant raises a conflict of interest, the resulting prohibition or restriction provided in this subsection continues:(A) for the private entity until the date the performance of services ends and all work product prepared by the entity and other information and data provided to the entity in the performance of services is publicly available; and(B) for an individual that is an employee of or was employed by the consultant or subconsultant and who participated in the performance of services for the department:(i) until five years after the date the performance of services ends for those projects for which the individual was materially involved in providing services to the department; and(ii) until one year from the date the performance of services ends for projects for which the individual was not materially involved in providing services to the department.(4) Application to new firm. If a conflict of interest is determined to apply to an individual pursuant to paragraph (3)(B) of this subsection, the conflict of interest and prohibition with respect to the individual will not apply to the individual's new place of employment. If the new employer is otherwise eligible to perform consultant services, the new employer will remain eligible despite the employment of the individual. This paragraph does not apply to an individual employed by an affiliate of its previous employer, and the conflict of interest and prohibition with respect to the individual will apply to such affiliate.(5) Federal requirements. For federal-aid projects, the department must comply with the Federal Highway Administration's organizational conflict of interest regulations (found in 23 CFR §636.116). The requirements of this subsection do not limit, modify, or otherwise alter the effect of those regulations, and will be applied consistent with those regulations.(6) General conflict of interest standards. Except as provided in paragraph (7) of this subsection, no consultant providing consultant services to the department with respect to a comprehensive development agreement project may be a proposer or participate as an equity owner, team member, consultant, or subconsultant of or to a proposer for that project, or have a financial interest in any of the foregoing entities with respect to that project. Except as provided in paragraph (8) of this subsection, a consultant performing consultant services for a comprehensive development agreement project will not be prohibited from participating on a different comprehensive development agreement project as a proposer or participating as an equity owner, team member, consultant, or subconsultant of or to a proposer for the different project, or having a financial interest in any of the foregoing entities with respect to the different project.(7) Providing services for the same project. A consultant that is actively providing preliminary engineering and architectural services to the department with respect to a comprehensive development agreement project, or that performed and completed environmental or traffic and revenue services for a comprehensive development agreement project, may be a proposer or participate as an equity owner, team member, consultant, or subconsultant of or to a proposer for the same project, or have a financial interest in any of the foregoing entities with respect to that project, provided:(A) with respect to a consultant providing preliminary engineering and architectural services, all work product prepared by the consultant and other information and data provided to the consultant in the performance of services is made available to all proposers prior to the issuance of the request for proposals for that project; or(B) the executive director issues a written determination under paragraph (9) of this subsection that:(i) the consultant will not, or in the case of the previous performance of consultant services did not, have access to or obtain knowledge of confidential or sensitive information, procedures, policies and processes that could provide an unfair competitive advantage with respect to the procurement for that project;(ii) the data and information provided to the consultant in the performance of the consultant services is either irrelevant to the procurement for that project or is available on an equal and timely basis to all proposers;(iii) the work products from the consultant incorporated into or relevant to the procurement for that project are generally available on an equal and timely basis to all proposers;(iv) with respect to environmental services, a record of decision or finding of no significant impact has been issued for the project; and(v) with respect to traffic and revenue services, there will be no impact on the project's plan of finance, including the ability to obtain and close funding and potential sources of funding.(8) Procurement and financial services. A consultant actively engaged and performing procurement services or financial services with respect to a comprehensive development agreement project may not be a proposer or participate as an equity owner, team member, consultant, or subconsultant of or to a proposer for that project, or have a financial interest in any of the foregoing entities with respect to that project. A consultant actively engaged and performing procurement services or financial services with respect to a comprehensive development agreement project may be a proposer or participate as an equity owner, team member, consultant, or subconsultant of or to a proposer for another comprehensive development agreement project, or may have a financial interest in any of the foregoing entities with respect to another comprehensive development agreement project, provided the consultant submits a request for a written determination under paragraph (9) of this subsection that establishes to the commission's satisfaction that such participation or interest would not constitute a conflict of interest or create the appearance of a conflict of interest, and the consultant institutes ethical walls or other safeguards required by the department.(9) Requests for determinations or exceptions. A consultant, proposer, or developer may submit a request to the executive director for a determination whether participation in a comprehensive development agreement project or the performance of particular services with respect to a comprehensive development agreement project would constitute a conflict of interest, or to request approval of an exception to the applicability of this subsection to those services. A request for approval of an exception may be made if a consultant, proposer, or developer desires to appeal a previous determination that a conflict of interest exists. The executive director will forward a request to the department's Office of General Counsel for analysis and recommendation prior to issuing a decision. In determining whether a conflict of interest exists, or whether to approve an exception, the commission or executive director, as appropriate, shall consider the executive director's recommendation and:(A) the extent to which the firm or individual employee obtained access to or the ability to gain knowledge of confidential or sensitive information, procedures, policies, and processes concerning the comprehensive development agreement program or a particular project or procurement that could provide an unfair competitive advantage with respect to the procurement or project at issue;(B) the type of consulting services at issue;(C) the particular circumstances of each procurement;(D) the specialized expertise needed by the department and proposers to implement the procurement;(E) the past, current, or future working relationship between the consultant and the department;(F) the period of time between the potential conflict situation and the project at issue; and(G) the potential impact on the procurement and project at issue, including competition.(10) Multiple services. If a consultant is providing more than one category of consultant services to the department and there are differences in the standards, restrictions, and limitations applicable to those categories, the standards, restrictions, and limitations applicable to a category that are more stringent will be applied.(11) Participation on proposer or developer team. A consultant participating with respect to a comprehensive development agreement project as a proposer or developer, or as an equity owner, team member, consultant, or subconsultant of or to a proposer or developer, or having a financial interest in any of the foregoing entities, is eligible to provide consultant services (other than procurement services) to the department for another comprehensive development agreement project, provided that, once the consultant is retained to perform consultant services for the department, the restrictions in this subsection shall apply.(12) Restriction of services and conditions to approvals and exceptions. In instances where a written determination under paragraph (9) of this subsection that a conflict of interest does not exist (including, in particular, where the conditions prescribed in paragraph (7) of this subsection has been met), or grants an exception to the application of this subsection under paragraph (9), the department may still, in its discretion:(A) restrict the scope of services the consultant or subconsultant may be eligible to perform for the department in order to further the intent and goals of this subsection; and(B) condition an approval, determination, or exception as the commission or executive director determines appropriate to further the intent and goals of this subsection, including by requiring the consultant, subconsultant, proposer, or developer to execute confidentiality agreements, institute ethical walls, or segregate certain personnel from participation in a project or the performance of consultant services.(13) Provisions are nonexclusive. The provisions in this subsection do not address every situation that may arise in the context of the department's comprehensive development agreement program nor require a particular decision or determination when faced with facts similar to those described in this subsection. The department retains the ultimate and sole discretion to determine on a case-by-case basis whether a conflict of interest exists and what actions may be appropriate to avoid, neutralize, or mitigate any actual or potential conflict, or the appearance of any conflict. The provisions of this subsection shall not be construed to preclude or condone any conduct with regard to projects other than projects under a comprehensive development agreement. The department will continue to evaluate other projects based on its traditional conflict of interest standards.(d) Rules of contact. In order to provide a fair and unbiased procurement process, a request for qualifications, request for proposals, or request for competing proposals and qualifications will contain rules of contact regulating communications between proposers or any of its team members and the commission, the department, and third parties involved in the procurement. Communication includes face-to-face, telephone, facsimile, electronic-mail (e-mail), or formal written communication. The rules of contact become effective upon the issuance of the request for qualifications, request for proposals, or request for competing proposals and qualifications. The rules of contact will include provisions:(1) prohibiting a proposer or any of its team members from communicating with another proposer or its team members with regard to the project, request for qualifications, request for proposals, or request for competing proposals and qualifications, or either team's qualifications submittal or proposal;(2) requiring each proposer to designate one or more representatives responsible for contact with the department, and requiring the proposer to correspond with the department regarding the project, request for qualifications, request for proposals, or request for competing proposals and qualifications only through the department's authorized representatives and the proposer's designated representatives;(3) prohibiting any ex parte communication regarding the project, request for qualifications, request for proposals, or request for competing proposals and qualifications or the procurement with any member of the commission or with any department staff, advisors, contractors, or consultants involved in the procurement until the earliest of the execution and delivery of the comprehensive development agreement, the rejection of all qualifications submittals or proposals by the department, or the cancellation of the procurement;(4) permitting communications in exceptional circumstances and designating department personnel authorized to approve such communications, and providing that the restrictions on communications shall not preclude or restrict communications with regard to matters unrelated to the request for qualifications, request for proposals, or request for competing proposals and qualifications, or participation in public meetings of the commission or any public or proposer workshop related to the project, request for qualifications, request for proposals, or request for competing proposals and qualifications;(5) designating a department employee not involved in the procurement to act as an ombudsman who is authorized to receive confidential communications (including questions, comments, or complaints regarding the procurement) and who, after removing, to the extent practicable, any information identifying the proposer, forwards the communications to the employees designated as the department's authorized representatives; and(6) authorizing the executive director to disqualify a proposer from the procurement and participation in the project at issue or to impose another sanction under §27.9 of this subchapter if it is determined that a proposer has engaged in any improper communications in violation of the rules of contact.(e) Exceptions to rules of contact. Notwithstanding subsection (d)(1) of this section:(1) subcontractors that are shared between two or more proposer teams may communicate with members of each of those teams so long as those proposers establish a protocol to ensure that the subcontractor will not act as a conduit of information between the teams; and(2) the prohibition provided by that subsection does not apply to public discussions regarding the project, request for qualifications, request for proposals, or request for competing proposals and qualifications at any department sponsored informational meetings.</content><note type="source"><p>Source Note: The provisions of this §27.8 adopted to be effective June 1, 2007, 32 TexReg 2670; amended to be effective August 18, 2011, 36 TexReg 5098; amended to be effective September 14, 2016, 41 TexReg 7135.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scA/s27.9"><num value="27.9">§27.9</num><heading>Sanctions</heading><content>(a) Procedure.(1) Notification of rules. A copy of this section will be included in each request for qualifications, request for proposals, and request for competing proposals and qualifications issued under this subchapter. Failure to comply with this subsection does not affect the applicability of this section.(2) Referral to executive director. In determining whether to refer a private entity to the executive director for possible sanctions, the department will consider the criteria set forth in subsection (c)(3) of this section.(3) Notice of sanctions. The department will notify the private entity of a sanction by certified mail within five days after the executive director's decision to impose the sanction. The notice will summarize the facts and circumstances underlying the sanction, identify the effective date and period of the sanction, and state that the private entity may petition for a hearing within 10 days after receiving notice of the sanction. Except as provided in subsection (b) of this section, a sanction is effective on the date specified in the notice.(4) Agreed modification of procedure. The procedure for considering a sanction may be modified by agreement of the executive director and the private entity.(5) Contractual obligations unaffected. The imposition of sanctions does not affect a private entity's obligations under a comprehensive development agreement or any other agreement with the department or limit the commission's contractual remedies thereunder.(6) Affiliated entities included. References to the term "private entity" also include an affiliate of the private entity, provided that the affiliate is an entity:(A) which directly or indirectly through one or more intermediaries controls, is controlled by, or is under common control with, the private entity or any of its members, partners, or shareholders holding a 10% or greater interest in the private entity; or(B) for which 10% or more of the equity interest in such entity is held directly or indirectly by the private entity, any of the private entity's members, partners or 10% or greater shareholders or any affiliate of the private entity under subparagraph (A) of this paragraph.(7) Responsibility for acts of others. The conduct of an individual or other entity acting on behalf of the private entity may be imputed to the private entity.(b) Opportunity for hearing.(1) Availability of hearing. The private entity will be given the opportunity for a hearing after receiving notice of a sanction and may petition for a hearing as provided in §1.21 et seq. of this title (relating to Procedures in Contested Cases). The petition must be filed within 10 days after the private entity receives notice of the sanction.(2) Stay of sanctions pending hearing. A sanction, except a suspension, is automatically stayed from the date a petition for hearing is filed until a final order is entered by the commission. On entry of a final order imposing the sanction or dismissing the hearing, the full term of the sanction will be reinstated as if it were first imposed on the date of the final order unless the commission specifically orders that a lesser sanction be imposed.(3) Commission discretion. In the public interest, the commission may reduce, eliminate, or modify sanctions imposed under this section at any time.(4) Exception. The opportunity for a hearing described in subsection (b)(1) of this section does not apply to a private entity that has been sanctioned though the use of a reprimand. In such cases, the private entity may submit written documentation disputing the reprimand to the executive director for further consideration.(c) Application of sanctions.(1) Determination of offense. The executive director will determine whether a private entity has committed an act or omission listed under subsection (e)(1) of this section.(2) Consideration of all circumstances. The existence of grounds for imposing a sanction does not mandate that a private entity be sanctioned. The seriousness of the acts or omissions (including the existence of and elapsed time since previous acts or omissions) and any mitigating circumstances will be considered before sanctions are imposed.(3) Mitigating circumstances. The executive director will consider mitigating circumstances (or lack thereof) in deciding whether to impose sanctions. Mitigating circumstances may include:(A) the private entity's culpability;(B) the level of impact the sanction will have on a particular comprehensive development agreement project;(C) whether, in light of all facts and circumstances, a severe sanction is necessary to protect the interest of the state and the integrity of the comprehensive development agreement program;(D) restitution paid by the private entity or a third party for damages suffered by a governmental entity as a result of the private entity's actions;(E) cooperation by the private entity with a governmental entity in the investigation of bidding crimes, including the provision of a full and complete account of the private entity's involvement; and(F) the private entity's disassociation from individuals and firms that have been involved in a bidding crime.(4) Determination of sanction level. The executive director, after consideration of all circumstances (including any mitigating circumstances) will determine a sanction level described in subsection (e)(2) of this section to be imposed on the private entity.(5) Progressive sanctions. If the private entity has previously been sanctioned, the executive director may use increasingly more severe sanctions in order to achieve the private entity's compliance with department policies and procedures. Every effort will be made to resolve the situation with the imposition of the least severe sanction that is appropriate for the circumstances under consideration. However, in cases where the act or omission is of such a nature that progressive sanction action is not in the best interest of the state or the comprehensive development agreement program, a more severe sanction may be imposed even if such act or omission is the first act or omission by the private entity which warrants sanction action.(6) Consecutive sanctions. In the case of multiple violations by the same private entity arising out of separate occurrences, the executive director may impose multiple sanctions consecutively and in any order.(7) Imposition of lesser sanctions. A lesser sanction may be imposed instead of the maximum sanction permitted.(8) Executive director discretion. In the best interest of the state or the comprehensive development agreement program, the executive director may reduce, eliminate, or modify sanctions at any time.(d) Suspension.(1) Grounds. The executive director may immediately suspend a private entity without a prior hearing if the private entity is notified of debarment under subsection (e) of this section.(2) Duration. A suspension will terminate when a final order is entered after a hearing or when ordered by the executive director.(e) Sanctions.(1) Grounds. The executive director may sanction a private entity for the following reasons:(A) conviction of a bidding crime as defined in §9.101 of this title (relating to Contractor Sanctions), a plea of guilty or nolo contendere to a charge of a bidding crime, or a public admission to a bidding crime, whether made by the private entity or by an individual or other entity that acted on behalf of the private entity;(B) conviction of the private entity for an offense indicating a lack of moral or ethical integrity, such as bribery or payment of kickbacks or secret rebates to agents of a governmental entity, if the offense reflects on the business practices of the private entity;(C) commission of acts indicating a lack of moral or ethical integrity and reflecting on the business practices of the private entity, if the executive director has probable cause to believe that the acts have been committed;(D) disqualification of the private entity by a state or by an agency of the federal government for any of the reasons listed in this section;(E) failure of the private entity to notify the department promptly of a conviction of a bidding crime or debarment for any reason by a state or by an agency of the federal government;(F) the private entity is declared in default on a comprehensive development agreement in accordance with the terms of that agreement;(G) violation of the conflict of interest provisions applicable to private entities participating in the department's comprehensive development agreement program as set forth in §27.8 of this subchapter (relating to Conflict of Interest and Ethics Policies);(H) violation of the provision relating to offering, conferring, or agreeing to confer gifts and benefits to department employees as set forth in §27.8 of this subchapter; or(I) any other grounds described in §9.106(a) of this title (relating to Contractor Sanctions) exist.(2) Sanction levels. The executive director will determine the level of sanction appropriate for the circumstances under consideration.(A) Level 1. Reprimand. After four reprimands in one calendar year, any subsequent act or omission committed by the private entity will result in the imposition of a more severe sanction.(B) Level 2. Prohibition against the private entity's participation in a particular procurement.(C) Level 3. Debarment of the private entity for a period of no more than 36 months.(D) Level 4. Permanent debarment of the private entity.(3) Exception. Debarment under paragraph (2)(D) of this subsection may not be for more than the period of debarment established by the state or federal agency on whose actions the debarment is based.(4) Use of sanction information. Information pertaining to any sanction(s) imposed against a private entity may be considered by the department during the evaluation of qualification submittals and other proposals submitted by the private entity during a procurement process. Use of this information is limited to sanction action(s) which occurred within 10 years of the date the qualification submittal or other proposal is received by the department.</content><note type="source"><p>Source Note: The provisions of this §27.9 adopted to be effective May 17, 2007, 32 TexReg 2670.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scA/s27.10"><num value="27.10">§27.10</num><heading>Compensation upon Termination for Convenience</heading><content>(a) Purpose. Transportation Code, §371.101 requires a comprehensive development agreement under which a private participant receives the right to operate and collect revenue from a toll project to contain a provision authorizing the department to terminate the agreement for convenience and purchase the interest of the private participant in the comprehensive development agreement and related property, and to include a price breakdown stating a specific price for the purchase of the private participant's interest at specified intervals from the date the toll project opens. This section describes the methodology for determining the compensation amount owed to the private participant as a result of the termination for convenience of a comprehensive development agreement in which the private participant has an ownership right to the toll revenues and is subject to Transportation Code, §371.101.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Fair market value--The amount that a willing and able buyer would offer, and a willing and able seller would accept, for the purchase and sale of the private participant's interest, in an arm's length transaction, under the conditions specified in the comprehensive development agreement.(2) Specified interval--A period of not less than two years and not more than five years that is specified by the department within the term of the comprehensive development agreement from the date the toll project opens, as defined in the comprehensive development agreement.(c) Price breakdown. A proposer shall include a proposed price breakdown in its proposal, using the specified intervals required by the department. The department will evaluate the proposed price breakdowns as provided in §27.4 of this subchapter.(d) Compensation amount. A comprehensive development agreement under which a private participant has an ownership right to revenue from a toll project shall include provisions regarding compensation to the private participant if the department chooses to exercise its option to terminate for convenience the comprehensive development agreement at any time before the toll project opens. A comprehensive development agreement under which a private participant has an ownership right to revenue from a toll project shall provide that, if the department chooses to exercise its option to terminate for convenience the comprehensive development agreement and lease at any time during a specified interval, the compensation to the private participant respecting the termination may not exceed the lesser of:(1) the price stated for the interval in the price breakdown included in the comprehensive development agreement that is in effect on the date of purchase, as defined in the comprehensive development agreement; or(2) the greater of:(A) the fair market value of the private participant's interest on the valuation date, as defined in the comprehensive development agreement, plus or minus any other applicable amounts specified in the comprehensive development agreement; or(B) an amount equal to the amount of outstanding debt specified in the comprehensive development agreement, plus or minus any other applicable amounts specified in the comprehensive development agreement.(e) Notification of price interval and exercise of option to terminate. A comprehensive development agreement subject to this section shall include a provision requiring the private participant to notify the department of the beginning of a price interval not later than 12 months before the price interval takes effect. The department shall notify the private participant if it will exercise the option to terminate for convenience the comprehensive development agreement during the price interval not later than 6 months after receiving the private participant's notice. The comprehensive development agreement shall provide that the department may rescind a notice of the exercise of an option to terminate without liability.(f) Adjustments to compensation amount. If a project requires expansion or reconstruction in a manner that differs from the manner provided in the original project scope or schedule, the price for terminating the comprehensive development agreement may be adjusted to reflect the changes in the agreement.</content><note type="source"><p>Source Note: The provisions of this §27.10 adopted to be effective December 6, 2007, 32 TexReg 8859; amended to be effective February 20, 2014, 39 TexReg 1000.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c27/scB"><num value="B">SUBCHAPTER B</num><heading>TRANSFER OF DEPARTMENT TOLL PROJECTS</heading><section identifier="/us/state/tx/tac/t43/p1/c27/scB/s27.11"><num value="27.11">§27.11</num><heading>Purpose</heading><content>Transportation Code, §228.151, authorizes the Texas Department of Transportation to lease, sell, or transfer a toll project to certain entities if approved by the Texas Transportation Commission and the governor. This subchapter prescribes the policies and procedures governing commission approval of the lease, sale, or transfer of a toll project.</content><note type="source"><p>Source Note: The provisions of this §27.11 adopted to be effective March 18, 2004, 29 TexReg 2739; amended to be effective January 5, 2006, 30 TexReg 9002; amended to be effective February 20, 2014, 39 TexReg 1002.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scB/s27.12"><num value="27.12">§27.12</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) AASHTO--The American Association of State Highway and Transportation Officials.(2) Commission--The Texas Transportation Commission.(3) Department--The Texas Department of Transportation.(4) Entity--The governmental entity that receives a toll project under §27.13 of this subchapter (relating to Transfer of Toll Projects).(5) Environmental Permits, Issues, and Commitments (EPIC)--Any permit, issue, coordination, commitment, or mitigation obtained to satisfy social, economic, or environmental impacts of a toll project, including, but not limited to, sole source aquifer coordination, wetland permits, stormwater permits, traffic noise abatement, threatened or endangered species coordination, archeological permits, and any mitigation or other commitment associated with any of those issues.(6) Executive director--The chief administrative officer of the department or designee.(7) Toll project--A toll project of the Texas Department of Transportation, as defined by Transportation Code, §201.001(b).</content><note type="source"><p>Source Note: The provisions of this §27.12 adopted to be effective effective March 18, 2004, 29 TexReg 2739; amended to be effective January 5, 2006, 30 TexReg 9002.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scB/s27.13"><num value="27.13">§27.13</num><heading>Transfer of Toll Projects</heading><content>(a) Requirements. Transportation Code, §228.151, authorizes the department to lease, sell, or transfer a toll project or system, including a non-tolled state highway or a segment of a non-tolled state highway converted to a toll project, to a governmental entity that has the authority to operate a tolled highway or a local government corporation created under Transportation Code, Chapter 431. (b) Request. To secure approval under this section, the receiving entity must submit to the executive director: (1) an evaluation of the impact of such action on regional mobility and project financial viability; (2) a written commitment that the entity will assume all liability and responsibility for the safe and effective maintenance and operation of the highway on its transfer; (3) a written commitment that the entity will assume all liability and responsibility for existing and future EPIC, including obtaining all environmental permits and approvals and for compliance with all federal and state environmental laws, regulations, and policies applicable to the highway and related improvements; (4) a written commitment that the entity agrees to provide for public involvement and to conduct a study of the social and environmental impact of all proposed improvements to a toll project; and (5) if applicable, a written commitment that the entity agrees to comply with the design and construction standards of §27.15 of this subchapter (relating to Project Development for Transferred Toll Projects) when developing projects on the transferred highway. (c) Approval. (1) In order to approve the lease, sale, or transfer of a project, and after considering public comment received under subsection (e) of this section, the commission must find that such transfer: (A) is in the best interests of the state; (B) is in the best interests of the entity receiving the project; and (C) will not adversely affect: (i) the financial viability of the project; or (ii) regional mobility. (2) The commission may not approve the lease, sale, or transfer unless the governor approves the transfer as being in the best interests of the state and the entity receiving the project. (d) Reimbursement. The receiving entity must agree to reimburse the department for any expenditures of the department for the construction, operation, and maintenance of the project that have not been reimbursed with the proceeds of bonds issued by the commission for the project, unless the commission finds that the transfer will result in substantial net benefits to the state, the department, and the public that equal or exceed the amount of the repayment waived. (e) Public involvement. (1) As part of the information that will be used by the commission in determining whether to lease, sell, or transfer a toll project, the department will: (A) hold one or more hearings in each county in which that project is located for the purpose of receiving oral comments; and (B) solicit written comments. (2) Notice of a solicitation of written comments and a public hearing held under paragraph (1) of this subsection will be: (A) published in the Texas Register; (B) published in one or more newspapers of general circulation in each of the counties in which the involved toll project is located; and (C) posted on the department's website. (3) The department will publish and post notices under paragraph (2) of this subsection at least 10 days prior to the date of the hearing. (4) The department will prepare a summary of the public hearings and all comments received in response to the notice and hearings.</content><note type="source"><p>Source Note: The provisions of this §27.13 adopted to be effective effective March 18, 2004, 29 TexReg 2739; amended to be effective January 5, 2006, 30 TexReg 9002.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scB/s27.15"><num value="27.15">§27.15</num><heading>Project Development for Transferred Toll Projects</heading><content>(a) Applicability. This section applies to:(1) a toll project that was leased, sold, or transferred under §27.13 of this subchapter (relating to Transfer of Toll Projects) and that is located within the right of way of a state highway; and(2) a toll project of another governmental entity that is located within the right of way of a state highway.(b) State or federal funds. An entity's toll project that uses federal or state funds provided by the department must also comply with Chapter 27, Subchapter E of this title (relating to Financial Assistance for Toll Facilities).(c) Environmental review and public involvement.(1) When an entity proposes to develop a toll project that had been leased, sold, or transferred under §27.13 of this subchapter, the entity shall:(A) conduct a study of the social and environmental impacts of the project in accordance with Chapter 2, Subchapter C of this title (relating to Environmental Review and Public Involvement for Transportation Projects);(B) provide for public involvement by complying with §2.43(c) of this title (relating to Non Federal-Aid Transportation Projects); and(C) develop the project in accordance with §2.50 of this title (relating to Financial Assistance for Toll Facilities and Pass-Through Toll Projects) if the entity requests federal-aid or federal-aid and state highway funds to assist with the project.(2) Respective roles and responsibilities. The entity shall request that the department make a determination of the respective roles and responsibilities of the entity and the department under Chapter 2, Subchapter C, of this title. The entity shall comply with the department's directives. The directives will specify who will conduct the following work, either by the entity or by the department:(A) preparation and completion of environmental studies;(B) submission of appropriate environmental documentation for department review;(C) preparation of any document revisions;(D) submission of copies of the environmental studies and documentation adequate for distribution;(E) preparation of legal and public notices for department review and use;(F) arrangements for appropriate public involvement, including court reporters and accommodations, if requested, for persons with special communication or physical needs related to the public hearing;(G) preparation of public meeting and hearing materials;(H) preparation of any responses to comments;(I) preparation of public meeting and public hearing summary and analysis, and the comment and response reports, and submission of a verbatim transcript of any public hearing and a signed certification that any hearing has been held in accordance with §2.43(c) of this title, the Civil Rights Act of 1964, and the Civil Rights Restoration Act of 1987; and(J) submission of documentation showing that all EPIC have been or will be completed, including copies of permits or other approvals required prior to construction.(d) Responsibility. The entity is fully responsible for the design and construction of each project it undertakes, including ensuring that all EPIC are addressed in project design and construction.(e) Design criteria.(1) State criteria. All designs developed by or on behalf of the entity shall comply with the latest version of the department's manuals, including, but not limited to, the Roadway Design Manual, Pavement Design Manual, Hydraulic Design Manual, the Texas Manual on Uniform Traffic Control Devices, Bridge Design Manual, and the Texas Accessibility Standards.(2) Alternative criteria. An entity may request approval to use different accepted criteria for a particular item of work. Alternative criteria may include, but are not limited to, the latest version of the AASHTO Policy on Geometric Design of Highways and Streets, the AASHTO Pavement Design Guide, and the AASHTO Bridge Design Specifications. The use of alternative criteria is subject to the approval of the Federal Highway Administration for those projects involving federal funds. The executive director may approve the use of alternative criteria if the alternative criteria are determined to be sufficient to protect the safety of the traveling public and the integrity of the transportation system.(3) Exceptions to design criteria. An entity may deviate from the state or alternative criteria for a particular design element, on a case by case basis, after determining that the particular criteria could not reasonably be met due to physical, environmental, or other relevant factors and that the proposed design is a prudent engineering solution. Documentation of the exceptions shall be retained by the entity and furnished to the department in accordance with subsection (h) of this section.(f) Access. For proposed projects that will change the access control line to an interstate highway, the entity shall submit to the department all data necessary for the department to request Federal Highway Administration approval.(g) Construction specifications.(1) All plans, specifications, and estimates developed by or on behalf of the entity shall conform to the latest version of the department's Standard Specifications for Construction and Maintenance of Highways, Streets, and Bridges, and shall conform to department required special specifications and special provisions.(2) The executive director may approve the use of an alternative specification if the proposed specification is determined to be sufficient to ensure the quality and durability of the finished product for the intended use and the safety of the traveling public.(h) Design and construction review and approval.(1) Applicability. This subsection applies to the segment of an entity's toll project that connects to the state highway system, including an overpass, underpass, intersection, or interchange.(2) Exceptions to design criteria. An entity may request approval to deviate from the state or alternative criteria for a particular design element on a case by case basis. The request for approval shall state the criteria for which an exception is being requested and must include a comprehensive description of the circumstances and engineering analysis supporting the request. The executive director may approve an exception after determining that the particular criteria could not reasonably be met due to physical, environmental, or other relevant factors and that the proposed design is a prudent engineering solution.(3) Preliminary plan review. When design of the connection is approximately 30% complete, the entity shall send the following preliminary design information to the department for review and approval in accordance with the procedures and timelines established in the project development agreement described in subsection (m) of this section:(A) a design schematic depicting plan, profile, and superelevation information for each roadway;(B) typical sections showing existing and proposed horizontal dimensions, cross slopes, location of profile grade line, pavement layer thickness and composition, earthen slopes, and right of way lines;(C) bridge, retaining wall, and sound wall layouts, including, where applicable, an indication of structural capacity in terms of design loading;(D) hydraulic studies and drainage area maps showing the drainage of waterways entering the project and local project drainage; and(E) the location and text of proposed mainlane guide signs shown on a schematic that includes lane lines or arrows indicating the number of lanes.(4) Final plan review. When final plans are complete, the entity shall send the following information to the executive director for review and approval in accordance with the procedures and timelines established in the project development agreement described in subsection (m) of this section:(A) seven copies of the final set of plans, specifications, and engineer's estimate (PS&E) that have been signed and sealed by the responsible engineer; and(B) revisions to the preliminary design submission previously approved by the department summarized or highlighted for the department.(5) Contract bidding and award. The entity shall not advertise the project for receipt of bids until it has received approval of the PS&E from the department.(6) Contract revisions.(A) All contract revisions related to the connections to the department facility shall comply with the latest version of the applicable national or state administration criteria and manuals, and must be submitted to the department for its records. Major contract revisions must be submitted to the executive director for approval prior to beginning the revised construction work. Procedures governing the executive director's approval, including time limits for department review, shall be included in the project agreement described in subsection (m) of this section.(B) For purposes of this subsection, "major contract revision" means a revision to a construction contract that:(i) reduces geometric design or structural capacity below project design criteria;(ii) changes the location or configuration of the physical connection to the department facility;(iii) changes the placement of columns and other structural elements within the department's right of way;(iv) changes the traffic control plan in a manner that reduces the capacity on the department facility as shown on the approved PS&E(v) changes the access on a controlled access facility; or(vi) for federally funded projects, eliminates or revises EPICs.(i) As-built plans. Within six months after final acceptance of the construction project, the entity shall file with the department a set of the as-built plans incorporating any contract revisions. These plans shall be signed, sealed, and dated by a licensed professional engineer in Texas certifying that the project was constructed in accordance with the plans and specifications.(j) Document and information exchange. If available, the entity agrees to deliver to the department all materials used in the development of the project including, but not limited to, aerial photography, computer files, surveying information, engineering reports, environmental documentation, general notes, specifications, and contract provision requirements.(k) State and federal law. The entity shall comply with all federal and state laws and regulations applicable to the project and the state highway system, and shall provide or obtain all applicable permits, plans, and other documentation required by a federal or state entity.(l) Work on state right of way. All work required within the limits of state-owned right of way shall be accomplished only pursuant to express written agreement with the department.(m) Project development agreement. The entity and the department shall enter into an agreement governing the development of a project under this section. The agreement shall, at a minimum, include:(1) the responsibilities of each party concerning the design and construction of the project and EPIC;(2) procedures governing the submittal of information required by this section;(3) timelines governing approvals by the executive director under this section; and(4) other terms or conditions mutually agreed upon by the parties.</content><note type="source"><p>Source Note: The provisions of this §27.15 adopted to be effective effective January 5, 2006, 30 TexReg 9002.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scB/s27.16"><num value="27.16">§27.16</num><heading>Toll Projects of Other Entities Within State Highway Right of Way</heading><content>(a) The department may, by license, lease, or transfer of real property, authorize a governmental entity with the authority to construct and operate a toll project, to construct a toll project within the right of way of a state highway.(b) If the department authorizes construction of a toll project under subsection (a) of this section, and the department does not transfer any improvements to department property, then §27.13 of this subchapter (relating to Transfer of Toll Projects) does not apply. The commission may, however, in its discretion, order the department to comply with one or more of the requirements of §27.13.</content><note type="source"><p>Source Note: The provisions of this §27.16 adopted to be effective effective January 5, 2006, 30 TexReg 9002.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c27/scC"><num value="C">SUBCHAPTER C</num><heading>PRIVATE TOLL ROADS</heading><section identifier="/us/state/tx/tac/t43/p1/c27/scC/s27.30"><num value="27.30">§27.30</num><heading>Purpose</heading><content>Transportation Code, Chapter 362, provides that a private entity or corporation may not construct any privately owned toll project which connects to a road, bridge, or highway included in the state highway system unless the project is approved by the Texas Transportation Commission and the Texas Department of Transportation. The sections under this subchapter prescribe the procedures and conditions by which a private entity or corporation may obtain the approval of the commission and the department.</content><note type="source"><p>Source Note: The provisions of this §27.30 adopted to be effective February 21, 1996, 21 TexReg 977.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scC/s27.31"><num value="27.31">§27.31</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter head, shall have the following meanings, unless the context clearly indicates otherwise.(1) Applicant--A private entity or corporation, authorized by law to construct a toll project, proposing to construct a project which will connect to a road, bridge, or highway included in the state highway system.(2) Commission--The Texas Transportation Commission.(3) Department--The Texas Department of Transportation.(4) Design manuals--The latest editions of the:(A) operations and procedures manual of the design division;(B) operation and planning manual of the design division;(C) hydraulic manual of the design division;(D) Texas Manual on Uniform Traffic Control Devices;(E) standard highway sign designs for Texas; and(F) traffic control standard sheets booklet of the traffic operations division.(5) Metropolitan planning organization--An organization designated in certain urbanized areas to carry out the transportation planning process as required by 23 United States Code §134.(6) Project--A road or highway, bridge, ferry, or similar project other than those constructed, operated, maintained, and/or financed under Transportation Code, Chapter 361, or toll road authorities created by counties, and that is financed in whole or in part through the issuance of revenue bonds payable from toll revenues collected from users.</content><note type="source"><p>Source Note: The provisions of this §27.31 adopted to be effective February 21, 1996, 21 TexReg 977.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scC/s27.32"><num value="27.32">§27.32</num><heading>Preliminary Studies</heading><content>(a) Studies. Prior to submitting an application to the department for the approval of a project, an applicant shall conduct a feasibility study and a study of the social and environmental impact of the project.(1) Feasibility study. An applicant shall conduct a feasibility study to determine the financial viability of the proposed project. The study shall include:(A) the proposed method for financing the planning, design, construction, maintenance, and operation of the project; and(B) traffic data and projections.(2) Social and environmental impact. An applicant shall conduct a study of the social and environmental impact of the project, consistent with the spirit and intent of the National Environmental Policy Act, 42 United States Code §§4321 et seq., and 23 United States Code §109(h). The study shall include the following components.(A) Route and alignment. The applicant shall provide a design geometric layout certified by a professional engineer registered in Texas to be in accordance with design manuals that will:(i) identify the selected route and alignment as well as the alternative routes and alignments which were considered;(ii) provide evidence of the project's logical termini and independent utility;(iii) provide the location of interchanges, mainlanes, grade separations, ramps, profiles and horizontal alignment, projected traffic volumes, and right-of-way limits for all routes and alignments considered; and(iv) identify revisions or changes to state highway system facilities necessitated by the project.(B) Environmental documentation.(i) An applicant shall prepare an environmental document in accordance with Chapter 2, Subchapter C, of this title (relating to Environmental Review and Public Involvement for Transportation Projects).(ii) The environmental document must describe all reasonable and feasible measures to avoid, minimize, or mitigate for adverse environmental impacts and all practicable measures to enhance the environment.(iii) The form and content of an environmental document prepared by an applicant and any decision by an applicant that an environmental impact statement is not necessary must be approved by the department.(b) Public involvement. An applicant shall provide for public involvement by:(1) complying with §2.43(c) of this title (relating to Non Federal-Aid Transportation Projects);(2) holding one or more public hearings following the completion of the studies required by this section as may be necessary to ensure participation by each community affected by the project; and(3) notifying the department in writing not less than ten days in advance of all public meetings and public hearings held under this section.(c) Revision to environmental document. Following the public hearing, an applicant shall revise the environmental document for the project to address any issues or concerns identified during the public involvement process.(d) Respective roles and responsibilities. The applicant shall request that the department make a determination of the respective roles and responsibilities of the applicant and the department under Chapter 2, Subchapter C, of this title (relating to Environmental Review and Public Involvement for Transportation Projects). The applicant shall comply with the department's directives. The directives will specify who will conduct the following work, either by the applicant or by the department:(1) preparation and completion of environmental studies;(2) submission of appropriate environmental documentation for department review;(3) preparation of any document revisions;(4) submission of copies of the environmental studies and documentation adequate for distribution;(5) preparation of legal and public notices for department review and use;(6) arrangements for appropriate public involvement, including court reporters and accommodations if requested for persons with special communication or physical needs related to public hearings;(7) preparation of public meetings and hearing materials;(8) preparation of any responses to comments;(9) preparation of public meeting and public hearing summary and analysis, and the comment and response reports; and(10) submission of documentation showing all environmental permits, issues, and commitments have been or will be completed, including copies of permits or other approvals required prior to construction.(e) Record. An applicant shall provide the department:(1) the appropriate environmental document;(2) summary and comment and response reports for all meetings;(3) summary and analysis and comment and response reports for all public hearings;(4) a summary of the proposed changes in the project location and design and mitigation planned as a result of comments;(5) the verbatim transcript of any public hearing;(6) certification that all public hearings were held in accordance with §2.43 of this title (relating to Non Federal-Aid Transportation Projects, the Civil Rights Act of 1964, and the Civil Rights Restoration Act of 1987; and(7) revised environmental document showing the proposed changes in project location, design, and mitigation as a result of comments and public involvement.</content><note type="source"><p>Source Note: The provisions of this §27.32 adopted to be effective February 21, 1996, 21 TexReg 977; amended to be effective April 21, 2005, 30 TexReg 2235.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scC/s27.33"><num value="27.33">§27.33</num><heading>Application</heading><content>(a) To secure approval of a project, an applicant must file an application with the department's executive director or his or her designee who shall serve as department liaison for the project. The application shall be in a form prescribed by the department, and must be accompanied by the following items:(1) preliminary studies and the record and analysis of public involvement completed in accordance with §27.32 of this title (relating to Preliminary Studies);(2) an analysis of project impact, which must include the following:(A) integration with the state highway system and, if located within the jurisdiction of a metropolitan planning organization in an urbanized area, certification from that organization that the project is compatible with the existing regional transportation plan;(B) economic impact based on a study assessing the potential impact of the project on the economy of the region in which the project is to be located, including the economies of each county in which the project is to be located and of the municipalities within those counties; and(C) impact on trade with Mexico, consisting of an assessment of the potential impact of the project on the free flow of trade between the Republic of Mexico and the State of Texas with respect to a project located in whole or in part in a county adjacent to the border between the state and the Republic of Mexico, or in a county adjacent to such a county.(b) If the department finds that the initial application meets the requirements of subsection (a) of this section, and that the preliminary design is in compliance with the design manuals, it shall notify the applicant of its findings and shall conduct one or more public hearings to receive public comment on the proposed project; and, subsequent to the public hearings, it shall submit the application together with its findings and recommendations to the commission for appropriate action.</content><note type="source"><p>Source Note: The provisions of this §27.33 adopted to be effective February 21, 1996, 21 TexReg 977.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scC/s27.34"><num value="27.34">§27.34</num><heading>Project Requirements</heading><content>(a) Field changes. Any design field change during the course of construction shall be certified by a professional engineer registered in Texas as being in conformance with the department's design standards contained in the design manuals. A design field change relating to the connection of the proposed project with the state highway system must be approved by the department.(b) As-built plans. Upon completion of construction of the project the applicant shall file with the department a set of the as-built plans incorporating any field changes during construction. These plans with field changes shall be signed, sealed, and dated by a professional engineer registered in Texas certifying that the project was constructed in accordance with the plans and specifications.(c) State and federal law. An applicant shall comply with all federal and state laws and regulations applicable to the project and shall provide or obtain all permits, plans, and other documentation required by a federal, state, or local governmental entity.(d) Speed limit. Upon completion of the project, posted speed limits for the various categories of vehicles shall be established in accordance with the procedures utilized by the department for the state highway system, but in no case shall such limits exceed the maximum prima facie speed limits prescribed by state law for a public road having the same characteristics.(e) Access. For proposed projects which will provide new access to a roadway requiring Federal Highway Administration (FHWA) approval of changes in access control, the applicant shall submit to the department all data necessary to request FHWA approval.(f) Work on state right-of-way. All work required within the limits of state owned right-of-way shall be accomplished only pursuant to express written agreement with the department and at the sole expense of the applicant. This work will include all connections with, and necessary modifications to, state highways, and any necessary preliminary engineering and construction inspection. The department may, however, allow work to be accomplished by the applicant on appurtenant facilities.</content><note type="source"><p>Source Note: The provisions of this §27.34 adopted to be effective February 21, 1996, 21 TexReg 977.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scC/s27.35"><num value="27.35">§27.35</num><heading>Hearing</heading><content>A public hearing held by the department for the purposes of §27.33(b) of this title (relating to Application) shall be conducted by the executive director or his or her designee. Any persons, including, but not limited to, official representatives of a county, municipality, metropolitan planning organization, or other governmental entity, and any individual, group, or association may provide comment.</content><note type="source"><p>Source Note: The provisions of this §27.35 adopted to be effective February 21, 1996, 21 TexReg 977.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scC/s27.36"><num value="27.36">§27.36</num><heading>Commission Action</heading><content>(a) Preliminary approval.(1) The commission may preliminarily approve the construction of a project if it finds that the project:(A) will be consistent with the state transportation plan and an existing regional transportation plan developed by a metropolitan planning organization, if any, of a municipality within whose municipal limits or extraterritorial jurisdiction the proposed project is to be located;(B) will have no significant overall adverse impact on the economy of the region in which the project is to be located;(C) will have no significant overall adverse impact on the free flow of trade between the Republic of Mexico and the State of Texas with respect to a project located in whole or in part in a county adjacent to the border between the state and the Republic of Mexico or in a county adjacent to such a county; and(D) will produce the revenue sufficient to finance the construction, maintenance, operation, design, and planning of the project based upon accurate traffic data and projections.(2) Prior to granting preliminary approval of a project, the commission shall consider:(A) the impact of the project on the economies of each county in which the project is to be located and of the municipalities within those counties; and(B) the views, comments, and certification, if any, of a metropolitan planning organization submitted under §27.33(a)(2)(A) of this title (relating to Application).(3) The commission may not grant preliminary approval of a project unless it finds that the project will provide for all reasonable and feasible measures to avoid, minimize, or mitigate for adverse environmental impacts as well as, when practicable, measures to enhance the environment.(b) Final approval. Subsequent to preliminary commission approval under subsection (a) of this section, the applicant shall submit plans, specifications, and estimates. If the department finds the plans and specifications to be in compliance with the design manuals and the latest versions of the department's standard specifications for construction of highways, streets, and bridges, the commission will grant final approval for the project. All construction plan sheets shall be signed, sealed, and dated in accordance with the Texas Engineering Practice Act by a registered professional engineer.(c) Order of approval or disapproval. Preliminary and final approval of the project shall each:(1) be by written order of the commission;(2) include the rationale, findings, and conclusions on which approval or disapproval is based; and(3) if approved, contain any specified conditions deemed by the commission to be necessary and appropriate.</content><note type="source"><p>Source Note: The provisions of this §27.36 adopted to be effective February 21, 1996, 21 TexReg 977.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scC/s27.37"><num value="27.37">§27.37</num><heading>Compliance</heading><content>(a) If, subsequent to final commission approval and prior to completion of the project, the applicant, for any reason, fails or refuses to satisfy any requirement for commission approval of the project, the applicant may not connect the project to any portion of the state highway system.(b) If, subsequent to final commission approval and completion of the project, the applicant, for any reason, fails or refuses to satisfy any requirement concerning the operation and maintenance of the project, the department shall sever the connection of the project to any portion of the state highway system and erect such barriers or barricades as may be appropriate for such purpose.(c) Prior to denying or severing connection to a portion of the state highway system, the department will provide the applicant written notice of noncompliance stating the reasons for denial or severance. The applicant will be granted reasonable notice to bring the project into compliance.(d) An applicant may appeal a decision under this section to deny or sever connection to a portion of the state highway system by filing a petition for an administrative hearing pursuant to §§1.21-1.61 of this title (relating to Contested Case Procedure).</content><note type="source"><p>Source Note: The provisions of this §27.37 adopted to be effective February 21, 1996, 21 TexReg 977.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c27/scD"><num value="D">SUBCHAPTER D</num><heading>REGIONAL TOLLWAY AUTHORITIES</heading><section identifier="/us/state/tx/tac/t43/p1/c27/scD/s27.40"><num value="27.40">§27.40</num><heading>Purpose</heading><content>Transportation Code, Chapter 366, authorizes two or more counties, if one of the counties has a population of not less than 300,000 and the counties form a contiguous territory, to create a regional tollway authority for the purpose of the expansion and improvement of transportation facilities and systems in this state. Unless one of the counties has a population of two million or more, the creation of a regional tollway authority requires that the counties gain the approval of the Texas Transportation Commission. Transportation Code, §201.113 authorizes the Texas Transportation Commission and a regional tollway authority to enter into an agreement for the improvement by a regional tollway authority of portions of the state highway system. This subchapter prescribes the policies and procedures governing commission approval of the creation of a regional tollway authority and an improvement to the state highway system by a regional tollway authority.</content><note type="source"><p>Source Note: The provisions of this §27.40 adopted to be effective March 19, 1998, 23 TexReg 2833; amended to be effective April 19, 2000, 25 TexReg 3307; amended to be effective January 5, 2006, 30 TexReg 9004; amended to be effective January 5, 2012, 36 TexReg 9352.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scD/s27.41"><num value="27.41">§27.41</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--The Texas Transportation Commission.(2) Commissioners Court--A county commissioners court.(3) Department--The Texas Department of Transportation.(4) Executive director--The chief administrative officer of the department.(5) Metropolitan Planning Organization--An organization designated by the governor to carry out the transportation process in prescribed urbanized areas as required by Title 23, United States Code, §134.(6) Turnpike project--A highway of any number of lanes, with or without grade separations, owned, operated or proposed by an existing or proposed regional tollway authority and any improvement, extension, or expansion to that highway.</content><note type="source"><p>Source Note: The provisions of this §27.41 adopted to be effective March 19, 1998, 23 TexReg 2833.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scD/s27.42"><num value="27.42">§27.42</num><heading>Creation</heading><content>(a) Purpose. Transportation Code, §366.031 authorizes two or more counties to create a regional tollway authority if: one of the counties has a population of not less than 300,000; the counties form a contiguous territory; and each county, acting through its respective commissioners court, passes an order to propose creation of a regional tollway authority. Unless one of the counties has a population of two million or more, §366.031 requires the approval of the commission for the creation of a regional tollway authority. This section prescribes the policies and procedures governing commission approval of the creation of a regional tollway authority.(b) Application. To secure commission approval under this section for the creation of a regional tollway authority, the commissioners courts shall jointly submit to the executive director, in a form prescribed by the department, a written request for approval. The request shall be accompanied by:(1) from each member county, each incorporated city within those counties, and each metropolitan planning organization with jurisdiction in those counties, a resolution of the entity's governing body indicating its support;(2) a description of how the existence of a regional tollway authority would expand the availability of funding for transportation projects or reduce direct state costs;(3) a description of the first turnpike project the regional tollway authority intends to undertake including, but not limited to:(A) an explanation of how the project will be consistent with the appropriate policies, strategies and actions of the statewide transportation plan and, if appropriate, with the metropolitan transportation plan developed by the metropolitan planning organization;(B) if the project is in a Clean Air Act nonattainment area, an explanation of how the project will be consistent with the transportation air quality goals outlined in the State Implementation Plan; and(C) a study of the potential social, economic, and environmental impacts of the initial project.(c) Approval.(1) The executive director will determine the sufficiency of the information provided, and if determined to be in compliance with subsection (b) of this section, will submit the application to the commission for approval.(2) The commission may grant approval for creation of a regional tollway authority if it finds that creation:(A) will result in construction of a project consistent with the appropriate policies, strategies, and actions of the statewide transportation plan at an earlier date than the department would otherwise construct the project, and that project is needed to address a severe safety issue, substantially reduce severe traffic congestion, or substantially improve air quality in a nonattainment area more quickly than the department would otherwise attain these goals;(B) will result in direct benefit to the state, local governments, and the traveling public;(C) will improve the efficiency of the state's transportation systems and would neither duplicate nor conflict with the operations of the department, including the Texas Turnpike Authority Division of the department;(D) will expand the availability of funding for transportation projects or reduce direct state costs;(E) is supported by each member county, each incorporated city within those counties, and each metropolitan planning organization with jurisdiction within those counties; and(F) is in the best interest of the state.(d) Social, environmental, and economic impact. In evaluating the proposed creation of a regional tollway authority, the commission will consider the potential social, environmental, and economic impacts of the initial project.(e) Contingencies. The commission may make its approval contingent upon the proposed regional tollway authority applicant complying with identified revisions to the proposed project or complying with other conditions determined by the commission as necessary to provide for the health or safety of the traveling public.(f) Order of approval or disapproval. Approval or disapproval of the creation of a regional tollway authority shall be by written order of the commission, and shall include the rationale, findings, and conclusions on which approval or disapproval is based.(g) Department responsibility. Approval of the creation of a regional tollway authority shall in no way constitute nor be construed as department assumption of any liability, responsibility, or duty for financing, design, construction, maintenance, or operation of any project under the jurisdiction of the regional tollway authority.</content><note type="source"><p>Source Note: The provisions of this §27.42 adopted to be effective March 19, 1998, 23 TexReg 2833; amended to be effective January 5, 2012, 36 TexReg 9352.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scD/s27.44"><num value="27.44">§27.44</num><heading>Improvement of the State Highway System by Regional Tollway Authorities</heading><content>(a) Request. If requested by a regional tollway authority, and approved as provided in this section, a regional tollway authority may improve a segment of the state highway system. In this section, improvement means construction, reconstruction, and maintenance, and the making of a necessary plan or survey before beginning construction, reconstruction, or maintenance, and includes a project or activity appurtenant to a state highway, including drainage facilities, surveying, traffic counts, driveways, landscaping, lights, or guardrails.(b) Approval. Except as provided in subsection (d) of this section, the commission may authorize a regional tollway authority to provide for improvement of the state highway system if the regional tollway authority commits in an agreement with the department to comply with all applicable federal, state, and department requirements. In approving a request from a regional tollway authority to provide for improvement of the state highway system, the commission will consider:(1) the capability of the regional tollway authority to award and manage the construction contract in a timely manner consistent with applicable federal and state laws and regulations;(2) the need for expeditious project completion;(3) the cost effectiveness of the regional tollway authority's proposal as compared to the department's management of the project; and(4) any other considerations relating to the benefit of the state, the traveling public, and the operations of the department.(c) Agreement. If approved by the commission pursuant to subsection (b) of this section, an agreement will be executed between the department and the regional tollway authority, outlining the responsibilities of each party and including the following provisions.(1) The regional tollway authority will comply with all applicable federal, state, and department requirements, including, but not limited to, environmental clearance, design standards, construction oversight, and materials testing.(2) The appropriate department division and/or the Federal Highway Administration must approve the plans, specifications, and estimates, including traffic control plans, before any advertisement of the project for bidding may occur.(3) If federal or state financial assistance is requested, the regional tollway authority will comply with all federal, state, and department requirements applicable to federal and state financed projects, including, but not limited to, review and approval of bidding procedures, contract documents, and contracts by the appropriate department division or office prior to issuance of proposals or other documents.(d) Feasibility determinations. The executive director or designee may approve without commission action those improvements that are necessary to determine whether it is feasible to develop a segment of the designated state highway system as a turnpike project, including preliminary plans and surveys. A regional tollway authority may provide those improvements under an agreement with the department that outlines the responsibilities of each party and includes the following provisions.(1) The regional tollway authority will provide the improvements at its expense.(2) If feasibility is not achieved, the regional tollway authority will provide the work product to the department.(3) If federal financial assistance will be requested for the turnpike project, the regional tollway authority will comply with all requirements applicable to federally financed projects.(4) Any work performed on state highway right of way will be approved in advance by the appropriate department district, including approval of traffic control plans.(e) Environmental review and public involvement.(1) When a regional tollway authority proposes an improvement on the state highway system and no federal-aid or state highway funds are used, the regional tollway authority shall complete environmental studies and public involvement in accordance with federal and state requirements and in accordance with Chapter 2, Subchapter C, of this title (relating to Environmental Review and Public Involvement for Transportation Projects).(2) The department shall determine respective roles and responsibilities. The regional tollway authority shall request that the department make a determination of the respective roles and responsibilities of the regional tollway authority and the department under Chapter 2, Subchapter C, of this title. The regional tollway authority shall comply with the departments directives. The directives will specify who will conduct the following work, either by the regional tollway authority or by the department:(A) preparation and completion of environmental studies;(B) submission of appropriate environmental documentation for department review;(C) preparation of any document revisions;(D) submission of copies of the environmental studies and documentation adequate for distribution;(E) preparation of legal and public notices for department review and use;(F) arrangements for appropriate public involvement, including court reporters and accommodation if requested for persons with special communication or physical needs related to the public hearing;(G) preparation of public meeting and hearing materials;(H) preparation of and responses to comments;(I) preparation of public meeting and public hearing summary and analysis, and the comment and response reports and submission of a verbatim transcript of any public hearing, and a signed certification that any hearing has been held in accordance with §2.43(c) of this title (relating to Non Federal-Aid Transportation Projects), the Civil Rights Act of 1964, and the Civil Rights Restoration Act of 1987; and(J) submission of documentation showing that all environmental permits, issues, and commitments have been or will be completed, including copies of permits or other approvals required prior to construction.(3) For proposed projects that will provide new access to a roadway requiring Federal Highway Administration approval for changes in access, the regional tollway authority shall prepare the appropriate environmental documentation in accordance with §2.42 of this title (relating to Federal-Aid Transportation Projects).(4) When a regional tollway authority proposes to improve the state highway and requests federal-aid or federal-aid and state highway funds to assist with the project in accordance with this section, the project shall be developed in accordance with §2.50 of this title (relating to Financial Assistance for Toll Facilities and Pass-Through Toll Projects).(f) Acknowledgment. The regional tollway authority must acknowledge in an agreement that, while not an agent, servant, or employee of the state, it is responsible for its own acts and deeds and for those of its agents or employees during the performance of the work authorized in the agreement.</content><note type="source"><p>Source Note: The provisions of this §27.44 adopted to be effective April 19, 2000, 25 TexReg 3307; amended to be effective April 21, 2005, 30 TexReg 2235.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c27/scE"><num value="E">SUBCHAPTER E</num><heading>FINANCIAL ASSISTANCE FOR TOLL FACILITIES</heading><section identifier="/us/state/tx/tac/t43/p1/c27/scE/s27.50"><num value="27.50">§27.50</num><heading>Purpose</heading><content>Transportation Code, §222.103 authorizes the Texas Department of Transportation to participate, by spending funds from any available source, in the cost of the acquisition, construction, maintenance, or operation of a toll facility of a public or private entity, and provides that the Texas Transportation Commission shall require the repayment of any money spent. Transportation Code, §372.002 provides that notwithstanding any other law, a toll project entity is not required to repay to the department any money contributed by the department as participation in the cost of a toll project of the entity if (1) the funds are held in a subaccount created under Transportation Code, §228.012 or (2) a toll project entity commenced the environmental review process for the project on or before January 1, 2014. This subchapter prescribes the policies and procedures by which the department will participate in the cost of a toll facility that is not under the jurisdiction of the department.</content><note type="source"><p>Source Note: The provisions of this §27.50 adopted to be effective August 15, 2002, 27 TexReg 7178; amended to be effective May 16, 2018, 43 TexReg 3122.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scE/s27.51"><num value="27.51">§27.51</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) AASHTO--The American Association of State Highway and Transportation Officials.(2) Commission--The Texas Transportation Commission.(3) Department--The Texas Department of Transportation.(4) Design manual--The latest editions of and successors to all design manuals available from the department, including but not limited to the following:(A) Roadway Design Manual;(B) operations and procedures manual of the Environmental Affairs Division;(C) Pavement Design Manual;(D) Bridge Design Manual;(E) Bridge Project Development Manual;(F) Bridge Geotechnical Manual;(G) Hydraulic Design Manual;(H) Texas Manual on Uniform Traffic Control Devices;(I) standard highway sign designs for Texas; and(J) traffic control standard sheets booklet of the traffic operations division.(5) Development costs--Costs associated with the development of a toll facility before all environmental clearances required to commence construction of the facility have been obtained, including, but not limited to, expenses incurred for the preparation of preliminary engineering, traffic and revenue estimates, major investment studies, environmental impact or assessment studies, and feasibility studies and analyses.(6) Environmental Permits, Issues, and Commitments (EPIC)--Any permit, issue, coordination, commitment, or mitigation obtained to satisfy social, economic, or environmental impacts of a project, including, but not limited to, sole source aquifer coordination, wetland permits, stormwater permits, traffic noise abatement, threatened or endangered species coordination, archeological permits, and any mitigation or other commitments associated with any of those issues.(7) Executive director--The executive director of the Texas Department of Transportation or designee.(8) Financial assistance--Participation by the department in the cost of a toll project by providing a requestor with project funding or other contributions funded by the department, as authorized by Transportation Code, §222.103, §366.301, §370.301, and §372.002.(9) Interoperability--With respect to the technology used or to be used by a requestor as part of an electronic toll collection system:(A) the transponders utilized or to be utilized by the requestor can be read and properly processed by the transponder technology utilized by the department and other governmental and private entities operating toll facilities in this state; and(B) the transponder technology utilized or to be utilized by the requestor can read and properly process information transmitted by transponders utilized by the department and other governmental and private entities operating toll facilities in this state.(10) Metropolitan planning organization--An organization designated in certain urbanized areas to carry out the transportation planning process as required by Title 23, United States Code, §134.(11) MPO--A metropolitan planning organization.(12) Nonattainment area--An area designated by the U.S. Environmental Protection Agency as not meeting the air quality standards outlined in the Clean Air Act.(13) Requestor--The public or private entity requesting financial assistance under this subchapter.(14) Transponder--A device placed on or within a motor vehicle that is capable of transmitting information used to assess or collect tolls.(15) Toll project entity--Has the meaning assigned by Transportation Code, §372.001.</content><note type="source"><p>Source Note: The provisions of this §27.51 adopted to be effective August 15, 2002, 27 TexReg 7178; amended to be effective March 18, 2004, 29 TexReg 2745; amended to be effective May 16, 2018, 43 TexReg 3122.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scE/s27.52"><num value="27.52">§27.52</num><heading>Available Financial Assistance</heading><content>(a) The commission may provide financial assistance under this subchapter for any combination of the following purposes relating to the development, acquisition, construction, maintenance, and operation of a toll facility:(1) development costs;(2) preparation of project plans, specifications, and engineer's estimate;(3) construction, including right of way acquisition and utility relocation;(4) operation;(5) maintenance; and(6) necessary or incidental administrative, legal, and other expenses.(b) The commission may provide financial assistance under this subchapter for which repayment is not required only to a toll project entity as authorized under Transportation Code, §372.002(d).</content><note type="source"><p>Source Note: The provisions of this §27.52 adopted to be effective August 15, 2002, 27 TexReg 7178; amended to be effective May 16, 2018, 43 TexReg 3122.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scE/s27.53"><num value="27.53">§27.53</num><heading>Request</heading><content>(a) Eligibility.(1) A public or private entity that is authorized by state law to acquire, design, construct, finance, operate, or maintain a toll facility is eligible to submit a request for financial assistance under this subchapter.(2) A private entity is not eligible to submit a request for a grant.(3) For requests submitted after January 1, 2010, to be eligible to receive funds under this subchapter, an entity must have adopted an internal ethics and compliance program that satisfies the requirements of §10.51 of this title (relating to Internal Ethics and Compliance Program) and must enforce compliance with that program.(b) Basic request. Except as otherwise noted below with respect to a request for funding of development costs only, a request must be accompanied by:(1) an overview of the project, which shall include a description of the project, the estimated total cost of the project or the preliminary cost estimate of development costs if the request is to fund only development costs, and the proposed use of the requested financial assistance;(2) a list of all proposed funding sources, including, but not limited to, bond revenue, any equity contribution from the requestor, and the financial assistance requested under this subchapter, and the proposed use of the funding;(3) the requested terms of the financial assistance;(4) a description of the need, or potential need in the case of a request to fund development costs, for the project and potential impact on traffic congestion and mobility;(5) a statement of the amount of unencumbered (or unreserved) cash on hand or the requestor's latest audited financial statement;(6) the latest bond rating obtained by the requestor when using similar sources of revenue to be pledged, if applicable;(7) a preliminary design study which includes:(A) an initial route and potential alignments;(B) the project's logical termini and independent utility, if applicable; and(C) potential revisions or changes to state highway system facilities necessitated by the project;(8) a description of the extent to which the requestor's toll collection system or plan for a toll collection system provides interoperability;(9) unless the request is to fund development costs only, official written approval of the project by the governing body of each entity that may become liable for repayment of any financial assistance;(10) a binding commitment that the environmental consequences of the proposed project will be fully considered in accordance with, and that the proposed project will comply with, all applicable local, state, and federal environmental laws, regulations, and requirements;(11) a binding commitment to implement all EPIC; and(12) documentary evidence, to the extent then available, of community involvement in development of the proposed project and public opinion about it.(c) Supplemental information and data. Except as provided in subsection (d) of this section, the requestor shall submit the following supplemental information and data.(1) Financial feasibility study. Unless the request is to fund development costs only, the requestor shall submit a financial feasibility study that includes:(A) a project construction or asset acquisition schedule identifying the timing, amount, and source of all funds required;(B) an analysis of the expected financing period of the project;(C) a pro forma annual cash flow analysis for the expected financing period of the project showing:(i) if applicable, anticipated revenues to be used in repayment by source;(ii) anticipated disbursements for preliminary studies and engineering, construction, EPIC, right of way acquisition, utility adjustments, operations, and maintenance;(iii) anticipated debt service coverage ratios for each debt obligation; and(iv) funds expected to be used to meet the requirements of any sinking funds, reserve funds, and amortization payments;(D) a description of the methods used in preparing the financial feasibility study, the assumptions contained in the study, and persons and entities responsible for the preparation of the study;(E) if the financial assistance is required to be repaid, the length of time the financial assistance will be outstanding or obligated;(F) the anticipated interest rates for any and all debt outstanding during the term of the financial assistance;(G) the anticipated benefits to the state and to the requestor resulting from the assistance; and(H) based upon then available information and analyses, a description of how the requested assistance will, to the extent applicable, accomplish the following (it being understood that failure to accomplish all of these items will not necessarily cause a request to be ineligible for financial assistance):(i) expand the availability of funding for transportation projects;(ii) reduce direct state costs;(iii) maximize private and local participation in the cost of projects; and(iv) improve the efficiency of the state's transportation systems.(2) Project impacts. The requestor shall provide the following information concerning the impact of the project:(A) how the project will be consistent with the Statewide Transportation Plan and, if appropriate, with the metropolitan transportation plan developed by an MPO;(B) if the project is in a nonattainment area, how the project will be consistent with the Statewide Transportation Improvement Program, with the conforming plan and Transportation Improvement Program for the MPO in which the project is located (if necessary), and with the State Implementation Plan; and(C) a preliminary description of any known environmental, social, economic, or cultural resource issues, such as hazardous material sites, impacts on wetlands and other water resources, endangered species, parks, neighborhoods, businesses, historic buildings or bridges, and archeological sites.(d) Waiver of required information or data. The executive director may waive submission of individual items of information or data required by subsection (c) of this section if:(1) the information or data required by this section is not relevant to the project or the financial assistance requested;(2) the department already possesses information or data in a format that may be substituted for the required information or data; or(3) the past performance of the requestor on previous projects developed in collaboration with the department indicates that the requestor will adequately and prudently address the issues and impacts described in the requested information or data.</content><note type="source"><p>Source Note: The provisions of this §27.53 adopted to be effective August 15, 2002, 27 TexReg 7178; amended to be effective March 18, 2004, 29 TexReg 2745; amended to be effective February 19, 2009, 34 TexReg 1114; amended to be effective January 6, 2011, 35 TexReg 11964; amended to be effective May 16, 2018, 43 TexReg 3122.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scE/s27.54"><num value="27.54">§27.54</num><heading>Commission Action</heading><content>(a) Preliminary approval.(1) Considerations. Prior to granting preliminary approval of an eligible project, the commission will consider:(A) the transportation need for and anticipated public benefit of the project, including such factors as the project's potential ability to accelerate needed transportation facilities or to reduce financial and other burdens on the commission and the department regarding the development, operation, and maintenance of such facilities;(B) availability of funding from all sources;(C) the percentage of the total project cost that is represented by the requested financial assistance;(D) the financial feasibility of the project;(E) potential social, economic, and environmental impacts of the project;(F) the extent to which the requestor's toll collection system or plan for a toll collection system provides interoperability;(G) evidence of local public support; and(H) the requestor's past experience with similar projects and past performance working in collaboration with the department in the development of such projects, if applicable.(2) Project requirements. The commission may grant preliminary approval of a project for financing if it finds that:(A) the project is consistent with the Statewide Transportation Plan and, if appropriate, with the metropolitan transportation plan developed by an MPO;(B) if the project is in a nonattainment area, the project will be consistent with the Statewide Transportation Improvement Program, with the conforming plan and Transportation Improvement Program for the MPO in which the project is located (if necessary), and with the State Implementation Plan;(C) the project will improve the efficiency of the state's transportation systems;(D) the project will expand the availability of funding for transportation projects or reduce direct state costs; and(E) if the financial assistance is required to be repaid, the application shows that the project and the requestor are likely to have sufficient revenues to assure repayment of the financial assistance according to the terms of the agreement.(3) Authorized actions. By granting preliminary approval, the commission authorizes the executive director to:(A) evaluate the project's limits, scope, definition, design, and other features, and identify any which adversely affect the financing of the project, including EPIC;(B) negotiate the amount, type and timing of disbursements of financial assistance;(C) if the financial assistance is required to be repaid, negotiate an interest rate, a repayment schedule, collateral securing the financial assistance, and default provisions;(D) negotiate provisions providing, if necessary for the project's financial feasibility, for the subordination of financial assistance provided under this subchapter to any other debt obligations for the project; and(E) negotiate all other provisions necessary to complete an agreement under this subchapter.(4) Relevant facts. In determining the extent to which the executive director will seek changes to the features described in subsection (a)(3)(A) of this section, the executive director shall consider:(A) the requestor's past experience with similar projects; and(B) whether the project is intended to become part of the state highway system or otherwise subject to the jurisdiction of the department.(b) Project impacts and traffic and revenue report.(1) Prior to receiving final approval under subsection (c) of this section for financial assistance for the construction of a project, the requestor shall:(A) complete a study of the social, economic, and environmental impacts of the project and provide for public involvement in the manner prescribed by Chapter 2, Subchapter C of this title (relating to Environmental Review and Public Involvement For Transportation Projects); and(B) obtain an investment grade traffic and revenue report for the project from a nationally recognized traffic engineer.(2) The executive director may waive the requirements of paragraph (1)(A) or (B) of this subsection if the director determines that the study or report is inapplicable or unnecessary due to the nature of the requested assistance.(c) Final approval. Subsequent to preliminary approval, completion of negotiations, and compliance with this section, the commission may grant final approval if it determines that:(1) providing financial assistance will prudently provide for the protection of public funds; and(2) the project will provide for all reasonable and feasible measures to avoid, minimize, or mitigate adverse environmental impacts.(d) Contingencies. The commission may make its preliminary approval contingent upon the requestor making changes, performing other acts, or establishing certain conditions necessary to provide for the adequacy of any required repayments. The commission may make its final approval subject to the requestor fulfilling specified conditions precedent to the release of financial assistance under this subchapter, which shall also be set forth in the financial assistance agreement. The necessity and nature of such changes, acts or conditions will be determined with consideration for the requestor's past experience with similar projects and past performance working in collaboration with the department in the development of such projects, especially with regard to the requestor's previous use of the commission's financial assistance.</content><note type="source"><p>Source Note: The provisions of this §27.54 adopted to be effective August 15, 2002, 27 TexReg 7178; amended to be effective March 18, 2004, 29 TexReg 2745; amended to be effective May 16, 2018, 43 TexReg 3122.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scE/s27.55"><num value="27.55">§27.55</num><heading>Financial Assistance Agreement</heading><content>(a) Executive Director. The executive director will negotiate the terms of agreements deemed necessary to comply with any requirements of preliminary approval, to protect the public's safety, and to prudently provide for the protection of public funds while furthering the purposes of this subchapter. These agreements shall include, but not be limited to, terms provided for in this section, as applicable to a particular project. The department shall provide in an agreement such assurances as are reasonably and customarily required by the requestor that are necessary for the purpose of obtaining financial assistance for, developing, or operating a particular project, provided that such assurances are, in the department's reasonable judgment, consistent with the provisions of the agreement.(b) Performance of work.(1) The requestor shall comply with applicable state and federal law, and with all terms and conditions of any agreements. If approval or concurrence of the Federal Highway Administration, the Federal Transit Administration, or any other federal agency is required, the department may require that the requestor seek approval or concurrence through the department. Upon request and, to the extent applicable and permitted by federal law, after reasonable advance notice and opportunity to cure from the department, the requestor shall reimburse the department for any federal funds that are applied by the requestor to pay costs not incurred in conformity with applicable state and federal law.(2) The requestor shall maintain its books and records in accordance with generally accepted accounting principles in the United States, as promulgated by the Governmental Accounting Standards Board, the Financial Accounting Standards Board, or pursuant to applicable federal or state laws or regulations, and with all other applicable federal and state requirements, subject to any exceptions required by existing bond indentures of the requestor that are applicable to the project, and any exceptions the requestor has historically implemented that have been acceptable to the public debt markets.(3) The requestor shall, at the requestor's cost, have a full audit performed annually of its books and records by an independent certified public accountant selected by the requestor and reasonably acceptable to the department. The audit must be conducted in accordance with generally accepted auditing standards promulgated by the Financial Accounting Standards Board, the Governmental Accounting Standards Board, or the standards of the Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non-profit Organizations, as applicable, and with all other applicable federal and state requirements. The requestor shall cause the auditor to provide a full copy of the audit report and any other management letters or auditor's comments directly to the department within a reasonable period of time after they have been provided to the governing body of the requestor.(4) The requestor shall retain all work papers and reports for a minimum of four years from the date of the audit report, unless the department notifies the requestor in writing to extend the retention period. If requested by the department, audit work papers shall be made available to the department, within 30 days of request, at any time during the retention period.(5) The requestor shall retain all original project files, records, accounts, and supporting documents until project completion or until all financial assistance under this subchapter has been repaid, if applicable, or for the period of time required by applicable federal and state law, if longer, unless relieved of this requirement by the department in writing.(6) Prior to the department assuming jurisdiction of the project, if applicable, the requestor shall ensure that the project, including all its components and appurtenances, is in a condition that complies with §27.57 of this subchapter. All design data, surveys, construction plans, right of way maps, utility permits, and agreements with other entities relating to the project shall be transferred to the department once the department assumes jurisdiction of the project. This paragraph applies to projects that will become a part of the state highway system.</content><note type="source"><p>Source Note: The provisions of this §27.55 adopted to be effective August 15, 2002, 27 TexReg 7178; amended to be effective May 16, 2018, 43 TexReg 3122.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scE/s27.56"><num value="27.56">§27.56</num><heading>Design and construction</heading><content>(a) Responsibility.(1) The requestor is fully responsible for the design and construction of each project it undertakes, including:(A) ensuring that all EPIC are addressed in project design;(B) assessing field changes for potential environmental impacts; and(C) obtaining any necessary EPIC required for field changes.(2) All construction plans shall be signed, sealed, and dated by a professional engineer licensed in Texas.(b) Design criteria.(1) Plans and specifications. Project plans and specifications must be in compliance with either the latest version of the design manuals or the latest version of AASHTO standards, including the AASHTO Policy on Geometric Design of Highways and Streets, the AASHTO Pavement Design Guide, and the AASHTO Bridge Design Specifications.(2) Exceptions to design criteria. A requestor may request approval to deviate from the required design criteria for a particular design element on a case-by-case basis. The request for approval shall state the criteria for which an exception is being requested and must include a comprehensive description of the circumstances and engineering analysis supporting the request. The executive director may approve an exception after determining that the particular criteria could not reasonably be met due to physical, environmental or other relevant factors (and in making this determination, the executive director shall consider whether the project is intended to become part of the state highway system or otherwise subject to the jurisdiction of the department), and that the proposed design is a prudent engineering solution.(c) Project development.(1) Access. For proposed projects that will change the access to an interstate highway, the requestor shall submit to the department all data necessary for the department to request Federal Highway Administration approval.(2) Preliminary design submission and approval. When design is approximately 30% complete, the requestor shall send the following preliminary design information to the department for review and approval in accordance with the procedures and time line established in the financial assistance agreement:(A) a completed Design Summary Report form as contained in the department's Project Development Process Manual;(B) a design schematic depicting plan, profile, and superelevation information for each roadway;(C) typical sections showing existing and proposed horizontal dimensions, cross slopes, location of profile grade line, pavement layer thickness and composition, earthen slopes, and right of way lines;(D) bridge, retaining wall, and sound wall layouts;(E) hydraulic studies and drainage area maps showing the drainage of waterways entering the project and local project drainage;(F) an explanation of the anticipated handling of existing traffic during construction;(G) when structures meeting the definition of a bridge as defined by the National Bridge Inspection Standards are proposed, an indication of structural capacity in terms of design loading;(H) an explanation of how the U.S. Army Corps of Engineers permit requirements, including associated certification requirements of the Texas Natural Resource Conservation Commission, will be satisfied if the project involves discharges into waters of the United States; and(I) the location and text of proposed mainlane guide signs shown on a schematic that includes lane miles or arrows indicating the number of lanes.(3) Construction specifications.(A) All plans, specifications, and estimates developed by or on behalf of the requestor shall conform to the latest version of the department's Standard Specifications for Construction and Maintenance of Highways, Streets, and Bridges, and shall conform to department required special specifications and special provisions, subject to subsection (c)(3)(B) of this section.(B) The executive director may approve the use of an alternative specification if the proposed specification is determined to be sufficient to ensure the quality and durability of the finished product for the intended use and the safety of the traveling public. In deciding whether to approve the use of an alternative specification, the executive director shall consider whether the project is intended to become part of the state highway system or otherwise subject to the jurisdiction of the department.(4) Submission and approval of final design plans and contract administration procedures. When final plans are complete, the requestor shall send the following information to the executive director for review and approval in accordance with the procedures and time line established in the financial assistance agreement:(A) seven copies of the final set of plans, specifications, and engineer's estimate (PS&E) that have been signed and sealed by the responsible engineer;(B) summarized or highlighted revisions to information provided with the preliminary design submission;(C) proposal necessary for bidding the project in compliance with applicable state and federal requirements;(D) contract administration procedures containing criteria that comply with the applicable national or state administration criteria and manuals; and(E) location and description of all EPIC addressed in construction.(5) Contract bidding and award. The requestor shall not advertise the project for receipt of bids until it has received approval of the PS&E from the department. Procedures relating to bidder qualification, bidding, award, and execution of a contract for the development and maintenance of a project that is financed with state or federal funds shall comply with either the policies and procedures prescribed in Chapter 9, Subchapter B of this title (relating to Highway Improvement Contracts), or with policies and procedures that comply with the applicable requirements of federal law and with the applicable requirements of state law that are intended to ensure fair and open competition.(6) Construction inspection and oversight. The requestor is responsible for overseeing all construction operations, including the oversight and follow-through with all EPIC. Inspection and project oversight shall be performed in accordance with requirements prescribed in the financial assistance agreement.(7) Contract revisions. All contract revisions shall comply with the latest version of the applicable national or state administration criteria and manuals, and must be submitted to the department for its records. Any revision that affects prior environmental approvals or significantly revises the project scope or the geometric design must be submitted to the executive director for approval prior to beginning the revised construction work. Procedures governing the executive director's approval, including time limits for department review, shall be included in the financial assistance agreement.(8) As-built plans. Upon completion of construction of the project, the requestor shall file with the department a set of the as-built plans incorporating any contract revisions. These plans shall be signed, sealed, and dated by a licensed professional engineer in Texas certifying that the project was constructed in accordance with the plans and specifications.(9) Document and information exchange. If available, the requestor agrees to electronically deliver to the department all materials used in the development of the project including, but not limited to, aerial photography, computer files, surveying information, engineering reports, environmental documentation, general notes, specifications, and contract provision requirements.(10) State and federal law. The requestor shall comply with all federal and state laws and regulations applicable to the project, and shall provide or obtain all applicable permits, plans, and other documentation required by a federal, state, or local governmental entity.(11) Work on state right of way. All work required within the limits of state owned right of way shall be accomplished only pursuant to express written agreement with the department.</content><note type="source"><p>Source Note: The provisions of this §27.56 adopted to be effective August 15, 2002, 27 TexReg 7178.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scE/s27.57"><num value="27.57">§27.57</num><heading>Maintenance</heading><content>(a) The department may require specific standards and procedures to be used in maintenance of the project.(b) All structures defined as a bridge by the National Bridge Inspection Standards shall be maintained in compliance with applicable state and federal requirements. The department will perform safety inspections of these structures in accordance with federal requirements.(c) In establishing the standards and procedures described in subsection (a) of this section, if any, or in considering exceptions to the standards and inspection procedures described in subsection (b) of this section, the department shall consider:(1) the requestor's past experience with similar projects (if applicable); and(2) whether the project is intended to become part of the state highway system or otherwise subject to the jurisdiction of the department.</content><note type="source"><p>Source Note: The provisions of this §27.57 adopted to be effective August 15, 2002, 27 TexReg 7178.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scE/s27.58"><num value="27.58">§27.58</num><heading>Financial and Credit Requirements</heading><content>A requestor receiving financial assistance that is required to be repaid under this subchapter shall agree to:(1) provide collateral and security for repayment of financial assistance and completion of the project, or other protections as the executive director may deem necessary;(2) repay the financial assistance at the specified interest rate over a specified time period according to the repayment schedule;(3) submit the following financial and operating reports to the department within 30 days of adoption or disclosure, approved by the governing body of the requestor and certified as correct by its chief administrative officer:(A) the annual operating and capital budgets adopted by the requestor each fiscal year pursuant to a trust agreement or indenture or equivalent document securing bonds issued for a project, and any amended or supplemental operating or capital budget; and(B) annual financial information and notices of material events required to be disclosed under Rule 15c2-12 of the United States Securities and Exchange Commission (17 C.F.R. §240.15c2-12); and(4) abide by provisions governing default.</content><note type="source"><p>Source Note: The provisions of this §27.58 adopted to be effective August 15, 2002, 27 TexReg 7178; amended to be effective May 16, 2018, 43 TexReg 3122.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c27/scF"><num value="F">SUBCHAPTER F</num><heading>COUNTY TOLL ROADS AND FERRIES</heading><section identifier="/us/state/tx/tac/t43/p1/c27/scF/s27.70"><num value="27.70">§27.70</num><heading>Purpose</heading><content>Transportation Code, §284.011 authorizes the Texas Transportation Commission (commission) to convey a ferry operated by the Texas Department of Transportation (department) to a county or a local government corporation for operation and maintenance as a county ferry under Transportation Code, Chapter 284. Transportation Code, §362.051 provides that a governmental or private entity must obtain the commission's approval before beginning construction of a toll road, toll bridge, or turnpike that is to be part of the state highway system. Transportation Code, §284.009(d) authorizes the commission, if requested by a county, to adopt an order stating that a county toll project will not become a part of the state highway system upon payment of project debt. This subchapter prescribes policies and procedures governing the implementation of these statutes.</content><note type="source"><p>Source Note: The provisions of this §27.70 adopted to be effective March 18, 2004, 29 TexReg 2746; amended to be effective January 5, 2006, 30 TexReg 9005.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scF/s27.71"><num value="27.71">§27.71</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) AASHTO--The American Association of State Highway and Transportation Officials.(2) Commission--The Texas Transportation Commission.(3) Commissioners court--A county commissioners court.(4) County--A county described in Transportation Code, §284.002.(5) Department--The Texas Department of Transportation.(6) Environmental Permits, Issues, and Commitments (EPIC)--Any permit, issue, coordination, commitment, or mitigation obtained to satisfy social, economic, or environmental impacts of a toll road project, including, but not limited to, sole source aquifer coordination, wetland permits, stormwater permits, traffic noise abatement, threatened or endangered species coordination, archeological permits, and any mitigation or other commitment associated with any of those issues.(7) Executive director--The chief administrative officer of the department or designee.(8) Toll road project--A causeway, bridge, tunnel, turnpike, highway, or any combination of those facilities, including:(A) a necessary overpass, underpass, interchange, entrance plaza, toll house, service station, approach, fixture, and accessory and necessary equipment;(B) necessary administration, storage, and other buildings; and(C) all property rights, easements, and related interests acquired.</content><note type="source"><p>Source Note: The provisions of this §27.71 adopted to be effective March 18, 2004, 29 TexReg 2746.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scF/s27.72"><num value="27.72">§27.72</num><heading>Conveyance of State Ferry</heading><content>(a) Request. (1) Transportation Code, §284.011, authorizes the commission to convey a ferry operated by the department under Transportation Code, §342.001, to a county or local government corporation incorporated under Transportation Code, Chapter 431 in a county to which Transportation Code, Chapter 284 applies. (2) A county or local government corporation may request a conveyance under this section by submitting a written request that includes: (A) an explanation of how the proposed conveyance will improve overall mobility in the region; (B) copies of any completed studies concerning the transfer; (C) a copy of the county's or local government corporation's criteria and guidelines for approval of the conveyance of a ferry; (D) a brief description of any known environmental, social, economic, or cultural resource issues, such as impacts on wetlands and other water resources, endangered species, parks, neighborhoods, businesses, historic buildings or bridges, and archeological sites concerning the transfer; and (E) the name and address of any individuals or organizations known to be opposed to the transfer, and a description of any known controversies concerning the transfer. (b) Public involvement. (1) As part of the information that will be used by the commission in determining whether to convey a ferry, the department will: (A) hold one or more public hearings in the county in which the ferry is located for the purpose of receiving oral comments; and (B) solicit written comments. (2) Notice of a solicitation of written comments and a public hearing held under paragraph (1) of this subsection will be: (A) published in the Texas Register; (B) published in one or more newspapers of general circulation in the county in which the ferry is located; (C) posted on the department's website, with a link to the county's website, if available; and (D) posted on the county's website, if available, with a link to the department's website. (3) The department will publish and post notices under paragraph (2) of this subsection at least 10 days prior to the date of the hearing. (4) The department will prepare a summary of the public hearings and all comments received in response to the notice and the hearings. (c) Reimbursement. The county or local government corporation shall reimburse the department for the cost of a conveyed ferry unless the commission determines that the conveyance will result in a substantial net benefit to the state, the department, and the traveling public that equals or exceeds that cost. In computing the cost of the ferry, the commission will include the total dollar amount spent by the department for the original construction of the ferry, including the costs associated with the preliminary engineering and design engineering for plans, specifications, and estimates, the acquisition of necessary rights-of-way, and actual construction of the ferry and all necessary appurtenant facilities, and will consider the anticipated future costs of expanding, improving, maintaining, or operating the ferry to be incurred by the county or local government corporation and not by the department if the ferry is conveyed. (d) Criteria. Subject to the requirements of Subsection (f) of this section, the commission may, after considering public input concerning the proposed conveyance, approve the transfer of a ferry to the county or local government corporation if: (1) the commission determines that the proposed conveyance is an integral part of the region's overall plan to improve mobility in the region; (2) the county agrees to assume all liability and responsibility for the safe and effective maintenance and operation of the ferry on its conveyance; (3) the county agrees to assume all liability and responsibility for compliance with all federal laws, regulations, and policies applicable to the ferry; (4) the county agrees to assume all liability and responsibility for existing and future EPIC, including obtaining all environmental permits and approvals and for compliance with all federal and state environmental laws, regulations, and policies applicable to the ferry and related improvements; (5) the county agrees to provide for public involvement and to conduct a study of the social and environmental impact of all proposed improvements to the ferry; (6) the commissioners' court of the county in which the ferry is located has approved the transfer; and (7) the governing body of the municipality has approved the conveyance, if any of the docking facilities used by the ferry are located in a municipality with a population of 8,000 or less. (e) Preliminary approval. Subject to the requirements of subsection (f) of this section, the commission may grant preliminary approval of the conveyance of a ferry, with final approval conditioned on the completion of preliminary studies necessary for the commission to make the findings required by subsection (d) of this section, including social, economic, and environmental studies. The commission may require the county to pay for or complete all or a portion of the preliminary studies. Upon completion of the preliminary studies, the department will hold one or more additional public hearings. The department will publish and post notice of a hearing held under this subsection in accordance with subsection (b)(2) of this section. The commission may grant final approval of the conveyance consistent with the requirements of subsections (d) and (f) of this section. (f) Conveyance. (1) If the commission approves a conveyance under subsection (D) or (e) of this section, the commission will notify the governing body of the municipality in which the ferry is located so that the governing body may order an election on the approval of the conveyance. (2) The commission will convey the ferry if approved by a majority of the voters in the municipality and, if required by federal law, by the United States Department of Transportation. Coincident with the conveyance, the commission will remove the ferry from the designated state highway system, and the county shall assume all liability, responsibility, and duty for financing, design, construction, maintenance and operation of the ferry.</content><note type="source"><p>Source Note: The provisions of this §27.72 adopted to be effective January 5, 2006, 30 TexReg 9005.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scF/s27.73"><num value="27.73">§27.73</num><heading>Commission Approval of County Toll Project</heading><content>(a) Purpose. Transportation Code, Chapter 284, authorizes a county to construct a toll road project. Transportation Code, §362.051 provides that a governmental or private entity must obtain the commission's approval before beginning construction of a toll project that is to be a part of the state highway system. Transportation Code, §284.008(c) specifies that a county's toll road project will become a part of the state highway system when all the bonds and interest on the bonds of the project are paid, thereby requiring commission approval of a county toll road project under Transportation Code, §362.051. This section prescribes the procedure by which a county may obtain commission approval under Transportation Code, §362.051. This section does not apply to a county toll project for which the commission has adopted an order under Transportation Code, §284.008(d), stating that the project will not become a part of the state highway system under §284.008(c). This section also does not apply to a county with a population of more than two million.(b) Request. To secure approval of a toll road project under this section, a county shall submit a written request for approval to the executive director. The request must be accompanied by:(1) a summary of the anticipated financing plan for purposes of seeking the approval described in subsection (e)(2) of this section;(2) traffic and revenue forecasts;(3) a detailed schematic indicating the location of interchanges and mainlanes;(4) a report identifying relocations or reconstruction to state highway system facilities anticipated in connection with the proposed toll road project;(5) an evaluation of the toll road project's integration into the state highway system;(6) documentation demonstrating that the environmental review and public involvement for the project have been conducted in the manner prescribed by Chapter 2, Subchapter C of this title (relating to Environmental Review and Public Involvement for Transportation Projects); and(7) a written commitment to comply with the design and construction standards prescribed in §27.74 of this subchapter (relating to Design and Construction Standards for Toll Road Projects) when developing the toll road project.(c) Environmental review and public involvement.(1) When a county proposes to develop a toll road project under this section, the county shall conduct a study of the social and environmental impacts of the project in accordance with Chapter 2, Subchapter C, of this title.(2) The county shall provide for public involvement by complying with §2.43(c) of this title (relating to Non Federal-Aid Transportation Projects).(3) When a county proposes to develop a toll road project under this section and requests federal-aid or federal-aid and state highway funds to assist with the project, the project shall be developed in accordance with §2.50 of this title (relating to Financial Assistance for Toll Facilities and Pass-Through Toll Projects).(4) When a county proposes a toll road project under this section and no federal-aid or state highway funds are used, the county shall complete environmental studies and public involvement in accordance with all applicable federal and state requirements and in accordance with Chapter 2, Subchapter C, of this title.(d) Respective roles and responsibilities. The county shall request that the department make a determination of the respective roles and responsibilities of the county and the department under Chapter 2, Subchapter C, of this title. The county shall comply with the department's directives. The directives will specify who will conduct the following work, either by the county or by the department:(1) preparation and completion of environmental studies;(2) submission of appropriate environmental documentation for department review;(3) preparation of any document revisions;(4) submission of copies of the environmental studies and documentation adequate for distribution;(5) preparation of legal and public notices for department review and use;(6) arrangements for appropriate public involvement, including court reporters and accommodations if requested for persons with special communication or physical needs related to the public hearing;(7) preparation of public meeting and hearing materials;(8) preparation of any responses to comments;(9) preparation of public meeting and public hearing summary and analysis, the comment and response reports, and submission of a verbatim transcript of any public hearing and a signed certification that the hearing has been held in accordance with §2.43(c) of this title (relating to Non Federal-Aid Transportation Projects), the Civil Rights Act of 1964, and the Civil Rights Restoration Act of 1987; and(10) submission of documentation showing that all EPIC have been or will be completed, including copies of permits or other approvals required prior to construction.(e) Approval. In deciding whether to approve a county toll road project, the commission will consider whether:(1) the toll road project may be effectively integrated into the state highway system;(2) the department is able to construct any connecting roads necessary for the toll road project to generate sufficient revenue to pay the debt incurred for its construction; and(3) the environmental review and public involvement for the toll road project have been conducted in the manner prescribed by Chapter 2, Subchapter C of this title.</content><note type="source"><p>Source Note: The provisions of this §27.73 adopted to be effective March 18, 2004, 29 TexReg 2746; amended to be effective January 5, 2006, 30 TexReg 9005; amended to be effective January 5, 2012, 36 TexReg 9352.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scF/s27.74"><num value="27.74">§27.74</num><heading>Design and Construction Standards for Toll Road Projects</heading><content>(a) Applicability. This section applies to county toll road projects that are subject to §27.73 of this subchapter.(b) (b) State or federal funds. County toll road projects that use federal or state funds provided by the department must also comply with Chapter 27, Subchapter E of this title (relating to Financial Assistance for Toll Facilities).(c) Responsibility. The county is fully responsible for the design and construction of each project it undertakes, including ensuring that all EPIC are addressed in project design and construction.(d) Design criteria for highway facilities.(1) State criteria. All designs developed by or on behalf of the county shall comply with the latest version of the department's manuals, including, but not limited to, the Roadway Design Manual, Pavement Design Manual, Hydraulic Design Manual, the Texas Manual on Uniform Traffic Control Devices, Bridge Design Manual, and the Texas Accessibility Standards.(2) Alternative criteria. A county may request approval to use different accepted criteria for a particular item of work. Alternative criteria may include, but are not limited to, the latest version of the AASHTO Policy on Geometric Design of Highways and Streets, the AASHTO Pavement Design Guide, and the AASHTO Bridge Design Specifications. The use of alternative criteria is subject to the approval of the Federal Highway Administration for those projects involving federal funds. The executive director may approve the use of alternative criteria if the alternative criteria are determined to be sufficient to protect the safety of the traveling public and the integrity of the transportation system.(3) Exceptions to design criteria. A county may deviate from the state or alternative criteria for a particular design element on a case by case basis after determining that the particular criteria could not reasonably be met due to physical, environmental, or other relevant factors and that the proposed design is a prudent engineering solution. Documentation of the exceptions shall be retained by the county and furnished to the department in accordance with subsection (g) of this section.(e) Access. For proposed projects that will change the access control line to an interstate highway, the county shall submit to the department all data necessary for the department to request Federal Highway Administration approval.(f) Construction specifications for highway projects.(1) All plans, specifications, and estimates developed by or on behalf of the county shall conform to the latest version of the department's Standard Specifications for Construction and Maintenance of Highways, Streets, and Bridges, and shall conform to department required special specifications and special provisions.(2) The executive director may approve the use of an alternative specification if the proposed specification is determined to be sufficient to ensure the quality and durability of the finished product for the intended use and the safety of the traveling public.(g) Design and construction review and approval.(1) Applicability. This subsection applies to the segment of a county toll road project that connects to the state highway system, including an overpass, underpass, intersection, or interchange.(2) Exceptions to design criteria. A county may request approval to deviate from the state or alternative criteria for a particular design element on a case by case basis. The request for approval shall state the criteria for which an exception is being requested and must include a comprehensive description of the circumstances and engineering analysis supporting the request. The executive director may approve an exception after determining that the particular criteria could not reasonably be met due to physical, environmental, or other relevant factors and that the proposed design is a prudent engineering solution.(3) Preliminary plan review. When design of the connection is approximately 30% complete, the county shall send the following preliminary design information to the department for review and approval in accordance with the procedures and timeline established in the project development agreement described in subsection (l) of this section:(A) a design schematic depicting plan, profile, and superelevation information for each roadway;(B) typical sections showing existing and proposed horizontal dimensions, cross slopes, location of profile grade line, pavement layer thickness and composition, earthen slopes, and right of way lines;(C) bridge, retaining wall, and sound wall layouts, including, where applicable, an indication of structural capacity in terms of design loading;(D) hydraulic studies and drainage area maps showing the drainage of waterways entering the project and local project drainage; and(E) the location and text of proposed mainlane guide signs shown on a schematic that includes lane lines or arrows indicating the number of lanes.(4) Final plan review. When final plans are complete, the county shall send the following information to the executive director for review and approval in accordance with the procedures and timelines established in the project development agreement described in subsection (l) of this section:(A) seven copies of the final set of plans, specifications, and engineer's estimate (PS&E) that have been signed and sealed by the responsible engineer; and(B) revisions to the preliminary design submission previously approved by the department summarized or highlighted for the department.(5) Contract bidding and award. The county shall not advertise the project for receipt of bids until it has received approval of the PS&E from the department.(6) Contract revisions.(A) All contract revisions related to the connections to the department facility shall comply with the latest version of the applicable national or state administration criteria and manuals, and must be submitted to the department for its records. Major contract revisions must be submitted to the executive director for approval prior to beginning the revised construction work. Procedures governing the executive director's approval, including time limits for department review, shall be included in the project agreement described in subsection (l) of this section.(B) For purposes of this subsection, "major contract revision" means a revision to a construction contract that:(i) reduces geometric design or structural capacity below project design criteria;(ii) changes the location or configuration of the physical connection to the department facility;(iii) changes the placement of columns and other structural elements within the department's right of way;(iv) changes the traffic control plan in a manner that reduces the capacity on the department facility as shown on the approved PS&E(v) changes the access on a controlled access facility; or(vi) for federally funded projects, eliminates or revises EPICs.(h) As-built plans. Within six months after final acceptance of the construction project, the county shall file with the department a set of the as-built plans incorporating any contract revisions. These plans shall be signed, sealed, and dated by a licensed professional engineer in Texas certifying that the project was constructed in accordance with the plans and specifications.(i) Document and information exchange. If available, the county agrees to deliver to the department all materials used in the development of the project including, but not limited to, aerial photography, computer files, surveying information, engineering reports, environmental documentation, general notes, specifications, and contract provision requirements.(j) State and federal law. The county shall comply with all federal and state laws and regulations applicable to the project and the state highway system, and shall provide or obtain all applicable permits, plans, and other documentation required by a federal or state entity.(k) Work on state right of way. All work required within the limits of state-owned right of way shall be accomplished only pursuant to express written agreement with the department.(l) Project development agreement. The county and the department shall enter into an agreement governing the development of a project under this section. The agreement shall, at a minimum, include:(1) the responsibilities of each party concerning the design and construction of the project and EPIC;(2) procedures governing the submittal of information required by this section;(3) timelines governing approvals by the executive director under this section; and(4) other terms or conditions mutually agreed upon by the parties.</content><note type="source"><p>Source Note: The provisions of this §27.74 adopted to be effective March 18, 2004, 29 TexReg 2746; amended to be effective January 5, 2006, 30 TexReg 9005.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scF/s27.75"><num value="27.75">§27.75</num><heading>Commission Order Directing that County Toll Project Shall Not Become Part of the State Highway System</heading><content>(a) Purpose. Transportation Code, §282.008(c), provides that, except as provided in Transportation Code, §282.008(d), a county toll project becomes a part of the state highway system and the commission shall maintain the project without toll when the project debt is paid. §284.008(d) provides that before construction of a county toll project, a county may request that the commission adopt an order stating that the project will not become a part of the state highway system. This section governs the procedure by which a county may seek approval under Transportation Code, §284.008(d).(b) Request. A county seeking commission approval under this section shall submit a written request to the department before the county enters into a contract for construction of the toll project. The request shall include:(1) a detailed schematic indicating the location of interchanges and mainlanes; and(2) justification for not being required to comply with the design, construction, environmental review, and public involvement requirements of §27.73 and §27.74 of this subchapter (relating to Commission Approval of County Toll Project and Design and Construction Standards for Toll Road Projects);(3) a description of the county's experience in developing toll facilities; and(4) a resolution in support of the request adopted by the county commissioners court.(c) Commission order. The commission will approve a request submitted under subsection (b) of this section if the commission determines that:(1) permanent operation and ownership of the project as a county road will be an efficient and effective method to provide transportation services in the region; and(2) the county has the ability to provide, and a past record of providing, safe and effective highway facilities without department oversight or regulation.</content><note type="source"><p>Source Note: The provisions of this §27.75 adopted to be effective January 5, 2006, 30 TexReg 9005.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c27/scG"><num value="G">SUBCHAPTER G</num><heading>OPERATION OF DEPARTMENT TOLL PROJECTS</heading><section identifier="/us/state/tx/tac/t43/p1/c27/scG/s27.80"><num value="27.80">§27.80</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--The Texas Transportation Commission.(2) Comprehensive development agreement--An agreement as defined in §27.2 of this chapter (relating to Definitions).(3) Department--The Texas Department of Transportation.(4) Executive director--The executive director of the department or designee.(5) Military vehicle--A vehicle owned by a branch of the armed forces of the United States or national or state guard of the United States, properly marked according to the rules of the owning military branch, and not registered with a state motor vehicle registry to an individual, corporation, or entity other than the owning military branch or organization.(6) Operational concession--An agreement under which a private operator purchases a right to conduct a business involving a toll project for a specified number of years in return for a fee paid to the department and the assumption of operation and maintenance responsibilities.(7) Tag--A transponder placed on or within a vehicle that is capable of transmitting information used to assess or collect tolls.(8) Toll project--A project of the Texas Department of Transportation as defined by Transportation Code, §201.001.(9) Toll project entity--An entity authorized by law to acquire, design, construct, finance, operate, and maintain a toll project, including a regional tollway authority under Transportation Code, Chapter 366, a regional mobility authority under Transportation Code, Chapter 370, or a county under Transportation Code, Chapter 284.</content><note type="source"><p>Source Note: The provisions of this §27.80 adopted to be effective February 17, 2005, 30 TexReg 730; amended to be effective March 16, 2006, 31 TexReg 1729; amended to be effective October 12, 2014, 39 TexReg 7960; amended to be effective September 11, 2024, 49 TexReg 7055.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scG/s27.81"><num value="27.81">§27.81</num><heading>Free Use Of Toll Project By Military Vehicles</heading><content>(a) Purpose. Transportation Code, §362.901, requires the commission to adopt rules to allow a military vehicle to use toll projects without payment of a toll or fare. This section describes the policies implementing §362.901.(b) General. Except as provided in subsection (f) or (g) of this section, the department will allow free use of toll projects by military vehicles in convoy and individually. Military vehicles will be allowed free use in all lanes except where it would be unsafe or impractical to do so.(c) Electronic toll collection (ETC) lanes. The department prefers that military vehicles use ETC lanes. Military vehicles will not be required to carry transponders or be registered with a toll customer service center in order to obtain free passage.(d) Automated enforcement. The department will develop procedures so that military vehicle images recorded by automated violation enforcement systems, if any, will be rejected and violation notices will not be issued.(e) Records. The department may maintain records of free passage of military vehicles on its toll projects for audit, reconciliation, and reporting purposes.(f) Exception. To the extent of any inconsistency with the requirements of this subchapter, the provision of free passage for military vehicles on toll projects that are governed by a trust agreement or indenture in existence on the effective date of this subchapter shall be governed by the terms of that trust agreement or indenture.(g) Operating agreements with a toll project entity. If the department enters into an agreement with a toll project entity to operate a toll project, the use of the project by military vehicles may be governed by the rules and policies of the toll project entity in lieu of the requirements of this section, with the exception of subsection (f)of this section.</content><note type="source"><p>Source Note: The provisions of this §27.81 adopted to be effective February 17, 2005, 30 TexReg 730; amended to be effective July 18, 2018, 43 TexReg 4764; amended to be effective September 11, 2024, 49 TexReg 7055.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scG/s27.82"><num value="27.82">§27.82</num><heading>Toll Operations</heading><content>(a) Toll policies. The department shall adopt policies relating to toll collection and enforcement and the operation of customer service centers. The policies will authorize all fees imposed under this section to be paid by credit card, debit card not requiring the entry of a personal identification number (PIN), money order, personal or cashier's check, or cash. In adopting those policies, the department shall consider:(1) whether those policies will provide ease of use by travelers and maximize mobility on toll projects;(2) whether those policies will provide a high level of customer service;(3) the requirements of project bond covenants;(4) cost of operations;(5) whether those policies will facilitate the auditing of customer service center operations and the marketing of toll projects; and(6) whether those policies will maximize the preservation of revenue streams.(b) Exception. Toll collection and enforcement policies adopted by the department are not subject to the requirements of §5.10 of this title (relating to Collection of Debts).(c) Customer account fees. The department may charge fees to customers for purposes of establishing and administering electronic toll collection customer accounts. The commission by minute order will establish customer account fees. In establishing customer account fees, the commission will consider the cost of operations, including the estimated cost to the department for labor, materials, storage, postage, and bank fees, as well as the requirements of project bond covenants. Customer account fees may be waived or dismissed in accordance with toll collection and enforcement policies adopted by the department under this section. Customer account fees may include fees for the following items:(1) standard tags;(2) specialty tags;(3) mailed or faxed account statements;(4) account maintenance; and(5) checks returned for insufficient funds.(d) Toll rates. Except as provided in subsections (f) and (g) of this section, the commission by minute order will establish toll rates for the use of a toll project. In setting toll rates, the commission will consider:(1) the results of traffic and revenue studies and any schedule of toll rates established in a traffic and revenue report;(2) the requirements of project bond covenants; and(3) vehicle classifications, type and location of the facility, and similar criteria that apply to a specific project.(e) Administrative fees. Except as provided in subsection (f) of this section, the owner or lessee of a vehicle who fails to pay the amount owed as stated in an invoice from the department for the use of a toll project may be charged an administrative fee of $4 per unpaid invoice. Administrative fees may be waived or dismissed in accordance with toll collection and enforcement policies adopted by the department under this section.(f) Operating agreements with a private entity. The commission may authorize a private entity under contract to operate a department toll project to set toll rates for the use of the toll project and to establish an administrative fee charged to owners of vehicles that use the toll project without paying the proper toll, if:(1) the private entity is required under the contract to submit to the department for approval:(A) the methodology for:(i) the setting of tolls;(ii) increasing the amount of the tolls; and(iii) the setting of an administrative fee to be imposed to recover the cost of collecting an unpaid toll; and(B) any proposed change in an approved methodology for the setting of a toll or an administrative fee;(2) the private entity will operate the toll project under a comprehensive development agreement or under a contract resulting from a procurement under §27.83 of this chapter (relating to Contracts to Operate Department Toll Projects) that provides an operational concession to the private entity; and(3) the commission approves the award of the contract to the private entity.(g) Dynamic pricing. The executive director will establish toll rates for the use of a toll project where dynamic pricing is in effect. In setting the toll rates, the executive director will consider vehicle classifications, type and location of the facility, regional policies, and similar criteria that apply to a specific project. The toll rates may be established through the approval of an algorithm or other methodology designed to maintain a free-flowing level of traffic on one or more lanes of the toll project.(h) Toll Assessment Review. An owner or lessee may, not later than the due date specified in the invoice from the department, send a written request to the department for a review of the toll assessments contained in the invoice. If, after a review, the department determines that the tolls were assessed correctly, the customer will be responsible for paying the amount owed as stated in the invoice. If the department determines that any of the tolls were assessed incorrectly, the department will provide the customer with an updated balance due. If the customer fails to pay the amount owed by the due date specified in the first invoice after the review, the department may charge the customer an administrative fee, as described in subsection (e) of this section. A request under this subsection must be mailed to the department's customer service center at 12719 Burnet Road, Austin, Texas 78727, or submitted through www.txtag.org, and must include the following information:(1) the customer's name, address, and contact information;(2) the make, model, year, and license plate number of the vehicle associated with the tolls under review;(3) the date, time, and location of the tolls under review;(4) the reason that the tolls are being disputed; and(5) if the dispute involves vehicle ownership, the date that the person purchased or sold the vehicle, as applicable.(i) Operating agreements with a toll project entity. If the department enters into an agreement with a toll project entity to operate a toll project, the operation of the project may be governed by the rules and policies of the toll project entity in lieu of the requirements of this section, with the exception of subsections (d) and (g)of this section.</content><note type="source"><p>Source Note: The provisions of this §27.82 adopted to be effective March 16, 2006, 31 TexReg 1729; amended to be effective March 1, 2011, 35 TexReg 10770; amended to be effective October 12, 2014, 39 TexReg 7960; amended to be effective March 1, 2018, 43 TexReg 779; amended to be effective July 18, 2018, 43 TexReg 4764; amended to be effective September 11, 2024, 49 TexReg 7055.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scG/s27.83"><num value="27.83">§27.83</num><heading>Contracts to Operate Department Toll Projects</heading><content>(a) Purpose. Transportation Code, §228.052 authorizes the department to enter into an agreement with one or more persons to provide, on terms approved by the department, personnel, equipment, systems, facilities, and services necessary to operate a toll project or system. This section prescribes the requirements for soliciting proposals for a contract to provide an operational concession to a private entity. Except as provided by this section and §27.84 of this subchapter (relating to No-Cost Contracts for Services to Support the Operation of Department Toll Projects), the department may use any of its applicable procurement processes to procure personnel, equipment, systems, facilities, or services necessary to operate a toll project or system.(b) Procurement process. A contract that provides an operational concession to the private entity shall be procured using the two-step procurement process set out in subsections (c)-(i) of this section.(c) Request for qualifications. The department will set forth the basic criteria for professional experience, technical competence, and other information the department considers relevant or necessary in a request for qualifications, and will publish it, at a minimum, in one or more newspapers of general circulation in this state. The department may elect to furnish fundamental details or technical studies and reports relating to the toll project in the request for qualifications.(d) Request for qualifications - evaluation. The department, after evaluating the submissions received in response to a request for qualifications, will identify those entities that will be considered qualified to submit detailed proposals for the toll project. In evaluating the submissions, the department will consider qualities that the department considers relevant to the project, which may include the private entity's financial condition, management stability, technical capability, experience, staffing, and organizational structure. The request for qualifications will include the criteria used to evaluate the submissions and the relative weight given to the criteria. The department will advise each entity providing a submission whether or not it is on the "short-list" of qualified entities.(e) Request for proposals. The department will issue a request for proposals consisting of the submission of detailed documentation regarding the project. The request for proposals may require the submission of additional information relating to:(1) the proposer's qualifications and demonstrated technical competence;(2) the feasibility of operating the toll project as proposed;(3) the proposer's ability to meet schedules;(4) a detailed financial plan, if applicable, including costing methodology, cost proposals, and project financing approach; or(5) any other information the department considers relevant or necessary.(f) Detailed proposal evaluation criteria. The proposals will be evaluated by the department based on those evaluation criteria the department deems appropriate for the toll project, which may include the reasonableness of any financial plan submitted by a proposer, the reasonableness of the project schedule, reasonableness of assumptions (including those related to legal liability, law enforcement, and operation and maintenance of the project), forecasts, financial exposure and benefit to the department, compatibility with other planned or existing transportation facilities, likelihood of obtaining necessary approvals and other support, cost and pricing, toll rates and projected usage, scheduling, environmental impact, manpower availability, use of technology, governmental liaison, and project coordination, with attention to efficiency, quality of finished product and such other criteria, including conformity with department policies, guidelines and standards, as may be deemed appropriate by the department to maximize the overall performance of the toll project and the resulting benefits to the state. Specific evaluation criteria and requests for pertinent information will be set forth in the request for proposals.(g) Apparent best value proposal. Based on the evaluation and the evaluation criteria described under subsection (f) of this section and set forth in the request for proposals, the department will rank all proposals that are complete, responsive to the request for proposals, and in conformance with the requirements of this section, and may select the private entity whose proposal offers the apparent best value to the department.(h) Selection of entity. The department will submit a recommendation to the commission regarding approval of the proposal determined to provide the apparent best value to the department. The commission may approve or disapprove the recommendation, and if approved, will award the agreement to the apparent best value proposer. Award may be subject to the successful completion of negotiations, any necessary federal action, execution by the executive director of the agreement, and satisfaction of other conditions that are identified in the request for proposals or by the commission. The proposers will be notified in writing of the department's rankings. The department shall also make the rankings available to the public.(i) Negotiations with selected entity. If authorized by the commission, the department will attempt to negotiate an agreement with the apparent best value proposer to operate the project. If an agreement satisfactory to the department cannot be negotiated with that proposer, or if, in the course of negotiations, it appears that the proposal will not provide the department with the overall best value, the department will formally end negotiations with that proposer and, in its sole discretion, either:(1) reject all proposals;(2) modify the request for proposals and begin again the submission of proposals; or(3) proceed to the next most highly ranked proposal and attempt to negotiate an agreement with that entity in accordance with this subsection.</content><note type="source"><p>Source Note: The provisions of this §27.83 adopted to be effective March 16, 2006, 31 TexReg 1729; amended to be effective September 14, 2016, 41 TexReg 7136; amended to be effective July 18, 2018, 43 TexReg 4764.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scG/s27.84"><num value="27.84">§27.84</num><heading>No-Cost Contracts for Services to Support the Operation of Department Toll Projects</heading><content>(a) Purpose. Transportation Code, §228.052 authorizes the department to enter into an agreement with one or more persons to provide, on terms approved by the department, personnel, equipment, systems, facilities, and services necessary to operate a toll project or system. This section prescribes the requirements for soliciting proposals for services to support the operation of a department toll project or system that will be provided by a private entity at no cost to the department.(b) Types of services. The department may enter into agreements with private entities for services to support toll operations, including:(1) establishing fleet account programs to manage the payment of tolls;(2) providing account maintenance services, including accepting payments, updating customer account information, and selling and registering tags; and(3) any other activities that the department considers necessary to enhance customer service and promote the efficient and effective operation of its toll projects and systems.(c) Solicitation process. The department will publish a notice regarding opportunities to provide the services described in subsection (b) of this section on the department's internet website. The notice will include information regarding the proposed scope of work, technical specifications, professional experience requirements, proposal submission requirements, and specific evaluation criteria that will be used during the selection process. The notice will specify the duration of the solicitation, which may be an indefinite or extended period of time as determined by the department.(d) Evaluation and selection procedures. The department will evaluate the proposals based on the criteria specified in the notice and identify those entities that are qualified to perform the specified services. The department will advise each entity, in writing, whether it has been selected. If a proposal is rejected, the department will provide to the entity the reason for the rejection.(e) Agreement. Following selection, the entity must execute an agreement to provide the services, in a form specified by the department.</content><note type="source"><p>Source Note: The provisions of this §27.84 adopted to be effective September 14, 2016, 41 TexReg 7136.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scG/s27.85"><num value="27.85">§27.85</num><heading>Service Charge for Payment Transactions</heading><content>(a) Purpose. Transportation Code, §228.052 provides that a person that enters into an agreement with the department to provide services for a customer to pay an amount on an electronic toll collection customer account at a location other than a department office may collect from the customer a service charge in addition to the amount paid on the account. This section sets the maximum amount of the service charge and the circumstances under which the service charge may be assessed.(b) Amount of service charge. A person may collect from the customer a service charge, not to exceed $2.00, for:(1) accepting a payment due on an invoice or notice of nonpayment;(2) accepting a payment to establish or replenish the minimum balance on a tag; or(3) accepting a payment for the sale of a tag.(c) Service charge authorized for each transaction. A person may collect a separate service charge for each payment transaction conducted by a customer.(d) Specific authorization required. A person may not assess the service charge described in subsection (b) of this section unless the agreement with the department specifically authorizes such a charge.</content><note type="source"><p>Source Note: The provisions of this §27.85 adopted to be effective September 14, 2016, 41 TexReg 7136.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c27/scH"><num value="H">SUBCHAPTER H</num><heading>DETERMINATION OF TERMS FOR CERTAIN TOLL PROJECTS</heading><section identifier="/us/state/tx/tac/t43/p1/c27/scH/s27.90"><num value="27.90">§27.90</num><heading>Purpose</heading><content>Transportation Code, §228.013 requires, for certain department toll projects in which a private entity has a financial interest in the project's performance, that the distribution of the project's financial risk, the method of financing for the project, and the tolling structure and methodology be determined by a committee comprised of representatives from the department, any local toll project entity for the area in which the project is located, the applicable metropolitan planning organization, and each municipality or county that provides revenue or right of way for the project. This subchapter prescribes the process for a committee's issuance of its determination.</content><note type="source"><p>Source Note: The provisions of this §27.90 adopted to be effective September 15, 2011, 36 TexReg 5951.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scH/s27.91"><num value="27.91">§27.91</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--The Texas Transportation Commission.(2) Committee--A committee established under this subchapter.(3) Comprehensive development agreement--An agreement with a private entity authorized under Transportation Code, Chapter 223, Subchapter E that, at a minimum, provides for the design and construction, reconstruction, extension, expansion, or improvement of a toll project and may also provide for the financing, acquisition, maintenance, or operation of a toll project.(4) Concession agreement--A comprehensive development agreement under which a private entity agrees to develop, finance, and construct a toll project, and to assume operation or maintenance responsibilities for a toll project, in exchange for rights to revenue of the project.(5) Department--The Texas Department of Transportation.(6) Executive director--The executive director of the department or the executive director's designee.(7) Local funds--Funds of a city or county, any other funds paid by a city or county to meet local participation requirements, and money deposited in a subaccount created under Transportation Code, §228.012.(8) Local toll project entity--Has the meaning assigned by Transportation Code, §373.001.(9) Metropolitan planning organization--The organization or policy board of an organization created and designated under 23 U.S.C. §134 and 49 U.S.C. §5303, as amended, to make transportation planning decisions for a metropolitan planning area in which a toll project is located and to carry out the metropolitan transportation planning process.(10) Toll project--Has the meaning assigned by Transportation Code, §201.001.</content><note type="source"><p>Source Note: The provisions of this §27.91 adopted to be effective September 15, 2011, 36 TexReg 5951; amended to be effective September 14, 2016, 41 TexReg 7135.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c27/scH/s27.92"><num value="27.92">§27.92</num><heading>Financial Terms</heading><content>(a) Applicability. This subchapter applies only to a department toll project that will be developed under a concession agreement, and for which:(1) funds allocated to a metropolitan planning organization are expected to be used to pay for project costs;(2) local funds are expected to be used to pay for project costs; or(3) property of a city or county is expected to be used as project right of way or a city or county is expected to pay for the acquisition of right of way for the project.(b) Formation and membership of committee. For a project subject to Transportation Code, Chapter 373, Subchapter B, the committee shall be formed after the department exercises its option under that subchapter to develop, finance, construct, and operate the project. The membership of a committee shall be determined after the commission authorizes the department to initiate a procurement for a toll project that provides for the potential delivery of the project through a concession agreement. To be eligible to serve as a committee member, a person must be an elected official or a full-time employee of the represented entity. A committee consists of the following members:(1) one member appointed by each metropolitan planning organization within whose boundaries all or part of the proposed project may be located;(2) one member appointed by each local toll project entity within whose boundaries all or part of the proposed project may be located;(3) one member appointed by each city and county which has:(A) provided local funds to pay for right of way acquisition or other project costs or to acquire right of way for the project, or has provided property of the city or county for use as project right of way; or(B) submitted to the department an order or resolution adopted by the city council or county commissioners court committing local funds or property to the project; and(4) one member appointed by the executive director to represent the department.(c) Officers. The committee will, subject to the concurrence of the commission, elect a chair and vice-chair by majority vote of the members of the committee.(d) Duties. A committee established under this subchapter shall submit a report to the executive director before the date the department issues a request for qualifications for the toll project, except for a project for which the department and a local toll project entity have agreed on the terms and conditions for the project under Transportation Code, §228.0111, or for which a local toll project entity has waived its option to develop, construct, and operate the project, in which case the report shall be submitted before the date the department issues a request for proposals for the project. If the project is subject to a market valuation agreement, market valuation waiver agreement, or similar agreement entered into under Transportation Code, §228.0111, or a toll project agreement entered into under Transportation Code, §373.006, the report may not include determinations that are inconsistent with the provisions of the agreement that relate to the determinations to be included in the report. A report shall contain the following determinations:(1) the distribution of project financial risk, which is the allocation of revenue risk for a toll project between the department and the private entity with which the department enters into an agreement for the project;(2) the method of financing for the project, which is a determination of whether the project should be funded with private or public funding or a combination of private and public funding; and(3) unless the project is subject to a regional tolling policy, the project's tolling structure and methodology.(e) Failure to submit report. All members of a committee will utilize their best efforts to support the generation of a report. If a committee does not submit a report by the date the department is scheduled to issue a request for qualifications or request for proposals, as applicable, for a project, the department will use any business terms applicable to the project that have been adopted by the metropolitan planning organization and that relate to the determinations to be included in the report.(f) Meetings.(1) Meeting requirements. The department's Office of General Counsel will submit to the Office of the Secretary of State notice of a meeting of the committee at least eight days before the date of the meeting. The notice will provide the date, time, place, and purpose of the meeting. A meeting of a committee will be open to the public. A committee will follow the agenda set for each meeting under paragraph (2) of this subsection.(2) Scheduling of meetings. Meeting dates, times, places, and agendas will be set by the office designated under subsection (g) of this section. Any committee member may suggest an agenda item, provided that the agenda item must be approved by the chair of the committee and the department. A committee's report may only discuss items that are within the committee's jurisdiction. The office designated under subsection (g) of this section will provide notice of the time, date, place, and purpose of meetings to the members, by mail, email, telephone, or any combination of the three, at least eight calendar days before each meeting. All meetings must take place in Texas and must be held in a location that is readily accessible to the general public.(3) Committee action. A quorum of the committee is one half or more of the number of members appointed to the committee. A committee may act only by majority vote of the members present at the meeting and voting.(4) Record. Minutes of all committee meetings shall be prepared and filed with the executive director. The complete proceedings of all committee meetings must also be recorded by electronic means.(5) Public information. All minutes, transcripts, and other records of the committees are records of the department and as such, are subject to disclosure under the provisions of Government Code, Chapter 552.(g) Administrative support. For each committee, the executive director will designate an office or division of the department that will be responsible for providing any necessary administrative support essential to the functions of the committee. The department will provide project information and other information to the committee to assist the committee in carrying out its duties, including the project procurement schedule.(h) Duration. After a committee submits the report described in subsection (d) of this section, the committee ceases to exist. The department may, in its discretion, reconvene a committee if changed circumstances may result in a change in the committee's determinations.</content><note type="source"><p>Source Note: The provisions of this §27.92 adopted to be effective September 15, 2011, 36 TexReg 5951; amended to be effective July 19, 2012, 37 TexReg 5344; amended to be effective September 14, 2016, 41 TexReg 7135.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p1/c28"><num value="28">CHAPTER 28</num><heading>OVERSIZE AND OVERWEIGHT VEHICLES AND LOADS</heading><subchapter identifier="/us/state/tx/tac/t43/p1/c28/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t43/p1/c28/scA/s28.1"><num value="28.1">§28.1</num><heading>Purpose and Scope</heading><content>The department participates in the regulation of the movement of oversize and overweight vehicles and loads on the state highway system, in order to insure the safety of the traveling public, and to protect the integrity of the highways and the bridges. The department's responsibilities are accomplished through the authorization of the issuance of permits for the movement of oversize and overweight vehicles and loads by certain authorities, and the execution of special contracts for the movement of oversize and overweight vehicles and loads to travel across the width of a state highway. The sections under this chapter prescribe the policies and procedures for authorizing the issuance of permits and the execution of contracts.</content><note type="source"><p>Source Note: The provisions of this §28.1 adopted to be effective August 16, 2012, 37 TexReg 6093.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scA/s28.2"><num value="28.2">§28.2</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, will have the following meanings, unless the context clearly indicates otherwise.(1) Axle--The common axis of rotation of one or more wheels whether power-driven or freely rotating, and whether in one or more segments.(2) Axle group--An assemblage of two or more consecutive axles, with two or more wheels per axle, spaced at least 40 inches from center of axle to center of axle, equipped with a weight-equalizing suspension system that will not allow more than a 10% weight difference between any two axles in the group.(3) Commission--The Texas Transportation Commission.(4) Daylight--The period beginning one-half hour before sunrise and ending one-half hour after sunset.(5) Department--The Texas Department of Transportation.(6) Four-axle group--Any four consecutive axles, having at least 40 inches from center of axle to center of axle, whose extreme centers are not more than 192 inches apart and are individually attached to or articulated from, or both, to the vehicle by a weight equalizing suspension system.(7) Gross weight--The unladen weight of a vehicle or combination of vehicles plus the weight of the load being transported.(8) Motor carrier--A person that controls, operates, or directs the operation of one or more vehicles that transport persons or cargo over a public highway in this state.(9) Overweight--An overdimension load that exceeds the maximum weight specified in Transportation Code, §621.101.(10) Permitted vehicle--A vehicle, combination of vehicles, or vehicle and its load operating under the provisions of a permit.(11) Permittee--Any person, firm, or corporation that is issued an oversize/overweight permit or temporary vehicle registration by the Texas Department of Motor Vehicles .(12) Single axle--An assembly of two or more wheels whose centers are in one transverse vertical plane or may be included between two parallel transverse planes 40 inches apart extending across the full width of the vehicle.(13) State highway--A highway or road under the jurisdiction of the Texas Department of Transportation.(14) State highway system--A network of roads and highways as defined by Transportation Code, §221.001.(15) Surety bond--An agreement issued by a surety bond company to a principal that pledges to compensate the department for any damage that might be sustained to the highways and bridges by virtue of the operation of the equipment for which a permit was issued. A surety bond is effective the day it is issued and expires at the end of the state fiscal year, which is August 31st. For example, if you obtain a surety bond on August 30th, it will expire the next day at midnight.(16) Three-axle group--Any three consecutive axles, having at least 40 inches from center of axle to center of axle, whose extreme centers are not more than 144 inches apart, and are individually attached to or articulated from, or both, to the vehicle by a weight equalizing suspension system.(17) Trunnion axle--Two individual axles mounted in the same transverse plane, with four tires on each axle, that are connected to a pivoting wrist pin that allows each individual axle to oscillate in a vertical plane to provide for constant and equal weight distribution on each individual axle at all times during movement. (18) Two-axle group--Any two consecutive axles whose centers are at least 40 inches but not more than 96 inches apart and are individually attached to or articulated from, or both, to the vehicle by a weight equalizing suspension system.(19) Vehicle--Every device in or by which any person or property is or may be transported or drawn upon a public highway, except devices used exclusively upon stationary rails or tracks.</content><note type="source"><p>Source Note: The provisions of this §28.2 adopted to be effective August 16, 2012, 37 TexReg 6093; amended to be effective February 19, 2025, 50 TexReg 866.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scA/s28.3"><num value="28.3">§28.3</num><heading>Delegation Authority</heading><content>The executive director may delegate to a department employee in a position that is not below the level of division director any power or duty assigned to the executive director by this chapter.</content><note type="source"><p>Source Note: The provisions of this §28.3 adopted to be effective August 16, 2012, 37 TexReg 6093.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scA/s28.4"><num value="28.4">§28.4</num><heading>Holiday Restrictions on Size Limits.</heading><content>The maximum size limits for a permit issued under Transportation Code, Chapter 623, Subchapter D, for movement of a vehicle on a holiday listed in Transportation Code, §621.006, is 14 feet wide, 16 feet high, and 110 feet long, unless an exception is granted based on a route and traffic study conducted by the department.</content><note type="source"><p>Source Note: The provisions of this §28.4 adopted to be effective February 19, 2025, 50 TexReg 866.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c28/scB"><num value="B">SUBCHAPTER B</num><heading>HIGHWAY CROSSINGS BY OVERSIZE AND OVERWEIGHT VEHICLES AND LOADS</heading><section identifier="/us/state/tx/tac/t43/p1/c28/scB/s28.10"><num value="28.10">§28.10</num><heading>Purpose</heading><content>In accordance with Transportation Code, Chapter 623, Subchapter C, a person, firm, or corporation may request authorization to operate a vehicle that does not comply with one or more of the restrictions of Transportation Code, Chapter 621, across the width of any road in the state highway system, other than a controlled-access highway as defined in Transportation Code, §223.001, from private property to other private property provided that the commission has contracted with the requester to indemnify the department for the cost of repair and maintenance to the portion of such highway crossed by such vehicles.</content><note type="source"><p>Source Note: The provisions of this §28.10 adopted to be effective August 16, 2012, 37 TexReg 6093.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scB/s28.11"><num value="28.11">§28.11</num><heading>Surety Bond</heading><content>The requester shall, prior to exercising any rights thereunder, execute an adequate surety bond in such amount as may be determined by the commission to compensate for the cost of maintenance and repairs as provided herein, approved by the state treasurer and the attorney general, with a corporate surety authorized to do business in this state, conditioned on the requester fulfilling the obligations of the contract.</content><note type="source"><p>Source Note: The provisions of this §28.11 adopted to be effective August 16, 2012, 37 TexReg 6093.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scB/s28.12"><num value="28.12">§28.12</num><heading>Preparation of Contract</heading><content>(a) The department will contract with the requester to indemnify the state for the cost of maintenance or repair to that portion of the highway crossed by vehicles which cannot comply with one or more restrictions of Transportation Code, Chapter 621.(b) The department will, at the expense of the requester, periodically maintain and repair the vehicle crossing in accordance with established departmental regulations, specifications, and engineering standards and practices.(c) If the proposed vehicle crossing requires initial upgrading or reconstruction to safely and adequately accommodate the vehicles which will be using the highway crossing, the requester will bear the entire cost of such work. Construction plans, specifications, traffic control plans, and any other related work will be provided by the requester at no cost to the state. At the sole option of the department, it may elect to do this work or provide for this work by separate contract, with the requester bearing the entire cost.(d) The requester will be responsible for furnishing, installing, maintaining, and removing when no longer required all traffic control devices which are required at the crossing to insure the safety of the traveling public. At the sole option of the department, it may elect to do this work or provide for this work by separate contract, with the requester bearing the entire cost. All traffic-control devices and flaggers, if required, shall be in accordance with the Texas Manual on Uniform Traffic Control Devices.(e) The requester shall indemnify the department for the cost of maintenance and repair to the vehicle crossing. The requester shall, at the entire expense of the requester, provide and keep in force a surety bond in an amount determined by the state to cover the cost of such maintenance and repair. The bond will require approval by the attorney general and comptroller of public accounts.(f) The requester shall keep the roadway free of debris and objectionable dust, lights, or noise.(g) The requester shall provide the department with the department's certificate of insurance covering the latest insurance requirements for contractors doing state highway construction work.(h) The responsibilities of the requester as set forth in the contract shall not be transferred, assigned, or conveyed to a third party without approval of the department.(i) If, in the sole judgment of the department, it is determined at a future date that traffic conditions have so changed that the existence or use of the vehicle crossing is impeding maintenance, damaging the highway facility, impairing safety, or that the vehicle crossing is not being properly operated, or that it constitutes a nuisance, or if for any other reason it is in the department's judgment that such a facility is not in the public interest, the vehicle crossing shall be modified if corrective measures acceptable to both the department and the requester can be applied to eliminate the objectionable features of the facility or terminated and the use of the area as a vehicle crossing discontinued.(j) Upon termination of the contract the department shall make an inspection of the crossing site. If additional repairs, modifications, or rehabilitation is required to return the highway to its original condition, the requester shall bear the entire expense of such work.</content><note type="source"><p>Source Note: The provisions of this §28.12 adopted to be effective August 16, 2012, 37 TexReg 6093.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c28/scC"><num value="C">SUBCHAPTER C</num><heading>PORT OF BROWNSVILLE PERMITS</heading><section identifier="/us/state/tx/tac/t43/p1/c28/scC/s28.20"><num value="28.20">§28.20</num><heading>Purpose</heading><content>In accordance with Transportation Code, Chapter 623, Subchapter K, the department may authorize the Brownsville Navigation District of Cameron County, Texas (Port of Brownsville) to issue permits for the movement of oversize or overweight vehicles carrying cargo on State Highway 48/State Highway 4 between the Gateway International Bridge and any location along that highway within the Port of Brownsville, or on U.S. Highway 77/U.S. Highway 83 and State Highway 48/State Highway 4 between the Veterans International Bridge at Los Tomates and any location along that highway within the Port of Brownsville or from the Free Trade International Bridge to the entrance of the Port of Brownsville using Farm-to-Market Road 509, United States Highways 77 and 83, Farm-to-Market Road 511, State Highway 550, and East Loop (State Highway 32). This subchapter sets forth the requirements and procedures applicable to the issuance of permits by the Port of Brownsville for the movement of oversize and overweight vehicles.</content><note type="source"><p>Source Note: The provisions of this §28.20 adopted to be effective August 16, 2012, 37 TexReg 6093; amended to be effective April 16, 2014, 39 TexReg 2960.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scC/s28.21"><num value="28.21">§28.21</num><heading>Responsibilities</heading><content>(a) Authority to issue permits. The Port of Brownsville may issue a permit for travel on the roads designated by Transportation Code, §623.219(a) by a vehicle or vehicle combination that exceeds the vehicle size or weight limits specified by Transportation Code, Chapter 621, Subchapters B and C but does not exceed loaded dimensions of 12 feet wide, 16 feet high, or 110 feet long, or 125,000 pounds gross weight.(b) Surety bond. The department may require the Port of Brownsville to post a surety bond in the amount of $500,000 for the purpose of reimbursing the department for actual maintenance costs of State Highway 48/State Highway 4, U.S. Highway 77/U.S. Highway 83, Farm-to-Market Road 509, Farm-to-Market Road 511, State Highway 550, and East Loop (State Highway 32) in the event that sufficient revenue is not collected from permits issued under this subchapter.(c) Verification of permits. All permits issued by the Port of Brownsville shall be carried in the permitted vehicle. The Port of Brownsville shall provide access for verification of permit authenticity by law enforcement and department personnel.(d) Training. The Port of Brownsville shall secure any training necessary for personnel to issue permits under this subchapter. The department may provide assistance with training upon request by the Port of Brownsville.(e) Accounting. The department shall develop accounting procedures related to permits issued under this subchapter which the Port of Brownsville must comply with for the purpose of revenue collections and any payment made to the department under subsection (i) of this section.(f) Audits. The department may conduct audits annually or upon direction by the executive director of all Port of Brownsville permit issuance activities. In order to insure compliance, audits will at a minimum include a review of all permits issued, financial transaction records related to permit issuance, review of vehicle scale weight tickets and monitoring of personnel issuing permits under this subchapter.(g) Revocation of authority to issue permits. If the department determines as a result of an audit that the Port of Brownsville is not complying with this subchapter, the executive director will issue a notice to the Port of Brownsville allowing 30 days to correct any non-compliance issue. If after 30 days it is determined that the Port of Brownsville is not in compliance, then the executive director may revoke the Port of Brownsville's authority to issue permits.(1) Upon notification that its authority to issue permits under this subchapter has been revoked, the Port of Brownsville may appeal the revocation to the commission in writing.(2) In cases where a revocation is being appealed, the Port of Brownsville's authority to issue permits under this subchapter shall remain in effect until the commission makes a final decision regarding the appeal.(3) Upon revocation of authority to issue permits, termination of the maintenance contract, or expiration of this subchapter, all permit fees collected by the port, less allowable administrative costs, shall be paid to the department.(h) Fees. Fees collected under this subchapter shall be used solely to provide funds for the payments provided for under Transportation Code, §623.214, less administrative costs.(1) The permit fee shall not exceed $80 per trip. The Port of Brownsville may retain up to 15 percent of such permit fees for administrative costs, and the balance of the permit fees shall be deposited in the state highway fund to be used for maintenance of State Highway 48/State Highway 4 and U.S. Highway 77/U.S. Highway 83, Farm-to-Market Road 509, Farm-to-Market Road 511, State Highway 550, and East Loop (State Highway 32).(2) The Port of Brownsville may issue a permit and collect a fee for a permit issued under this subchapter for any vehicle or vehicle combination exceeding vehicle size or weight as specified by Transportation Code, Chapter 621, Subchapters B and C, originating at:(A) the Gateway International Bridge traveling only on State Highway 48/State Highway 4 to any location along that highway within the Port of Brownsville;(B) a location within the Port of Brownsville traveling on State Highway 48/State Highway 4 to the Gateway International Bridge;(C) the Veterans International Bridge at Los Tomates, traveling on U.S. Highway 77/U.S. Highway 83 and State Highway 48/State Highway 4 to any location along that highway within Port of Brownsville;(D) a location within the Port of Brownsville, traveling on State Highway 48/State Highway 4 and U.S. Highway 77/U.S. Highway 83 to the Veterans International Bridge at Los Tomates;(E) the Free Trade International Bridge to the entrance of the Port of Brownsville using Farm-to-Market 509, United States Highways 77 and 83, Farm-to-Market Road 511, State Highway 550, and East Loop (State Highway 32); or(F) a location within the Port of Brownsville, traveling on East Loop (State Highway 32), State Highway 550, Farm-to-Market Road 511, United States Highways 77 and 83, and Farm-to-Market 509 to the Free Trade International Bridge.(i) Maintenance Contract. The Port of Brownsville shall enter into a maintenance contract with the department for the maintenance of the portions of State Highway 4, State Highway 48, and U.S. Highway 77/U.S. Highway 83, Farm-to-Market Road 509, Farm-to-Market Road 511, State Highway 550, and East Loop (State Highway 32) for which a permit may be issued under this subchapter.(1) Maintenance shall include, but is not limited to, routine maintenance, preventive maintenance, and total reconstruction of the roadway and bridge structures as determined by the department to maintain the current level of service.(2) The Port of Brownsville may make direct restitution to the department for actual maintenance costs in lieu of the department filing against the surety bond described in subsection (b) of this section, in the event that sufficient revenue is not collected.(j) Reporting. Port of Brownsville shall provide monthly and annual reports to the department's Finance Division regarding all permits issued and all fees collected during the period covered by the report. The report must be in a format approved by the department.</content><note type="source"><p>Source Note: The provisions of this §28.21 adopted to be effective August 16, 2012, 37 TexReg 6093; amended to be effective April 16, 2014, 39 TexReg 2960.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scC/s28.22"><num value="28.22">§28.22</num><heading>Permit Issuance Requirements and Procedures</heading><content>(a) Permit application. Application for a permit issued under this subchapter shall be in a form approved by the department, and shall at a minimum include: (1) the name of the applicant; (2) date of issuance; (3) signature of the director of the Port of Brownsville; (4) a statement of the kind of cargo being transported; (5) the maximum weight and dimensions of the proposed vehicle combination, including number of tires on each axle, tire size for each axle, distance between each axle, measured from center of axle to center of axle, and the specific weight of each individual axle when loaded; (6) the kind and weight of each commodity to be transported, not to exceed loaded dimensions of 12 feet wide, 15 feet 6 inches high, 110 feet long or 125,000 pounds gross weight; (7) a statement of any condition on which the permit is issued; (8) a statement that the cargo shall be transported over the most direct route using State Highway 48/State Highway 4 between the Gateway International Bridge and any location along that highway within the Port of Brownsville, or using U.S. Highway 77/U.S. Highway 83 and State Highway 48/State Highway 4 between the Veterans International Bridge at Los Tomates and any location along that highway within the Port of Brownsville or from the Free Trade International Bridge to the entrance of the Port of Brownsville using Farm-to-Market Road 509, United States Highways 77 and 83, Farm-to-Market Road 511, State Highway 550, and East Loop (State Highway 32); (9) the location where the cargo was loaded; and (10) the date or dates on which movement authorized by the permit is allowed. (b) Permit issuance. (1) General. (A) The original permit must be carried in the vehicle for which it is issued. (B) A permit is void when an applicant: (i) gives false or incorrect information; (ii) does not comply with the restrictions or conditions stated in the permit; or (iii) changes or alters the information on the permit. (C) A permittee may not transport an overdimension or overweight load with a voided permit. (2) Payment of permit fee. The Port of Brownsville may determine acceptable methods of payment. All fees transmitted to the department must be in U.S. currency. (c) Maximum permit weight limits. (1) An axle group must have a minimum spacing of four feet, measured from center of axle to center of axle, between each axle in the group to achieve the maximum permit weight for the group. (2) Two or more consecutive axle groups must have an axle spacing of 12 feet or greater, measured from the center of the last axle of the preceding group to the center of the first axle of the following group, in order for each group to be permitted for maximum permit weight. (3) Maximum permit weight for an axle or axle group is based on 650 pounds per inch of tire width or the following axle or axle group weights, whichever is the lesser amount: (A) single axle - 25,000 pounds; (B) two-axle group - 46,000 pounds; (C) three-axle group - 60,000 pounds; (D) four-axle group - 70,000 pounds; (E) five-axle group - 81,400 pounds; or (F) trunnion axles - 60,000 pounds if; (i) the trunnion configuration has two axles; (ii) there are a total of 16 tires for a trunnion configuration; and (iii) the trunnion axle as shown in the following diagram is 10 feet in width. Attached Graphic(4) A permit issued under this subchapter does not authorize the vehicle to exceed manufacturer's tire load rating. (d) Vehicles exceeding weight limits. Any vehicle exceeding weight limits outlined in subsection (c) of this section, shall apply directly to the Texas Department of Motor Vehicles for an oversize or overweight permit in accordance Transportation Code, Chapter 623. (e) Registration. Any vehicle or combination of vehicles permitted under this subchapter shall be registered in accordance with Transportation Code, Chapter 502. (f) Travel conditions. Movement of a permitted vehicle is prohibited when visibility is reduced to less than 2/10 of one mile or the road surface is hazardous due to weather conditions such as rain, ice, sleet, or snow, or highway maintenance or construction work. (g) Daylight and night movement restrictions. An oversize permitted vehicle may be moved only during daylight hours; however, an overweight only permitted vehicle may be moved at any time. (h) Restrictions. (1) Any vehicle issued a permit by the Port of Brownsville must be weighed on scales capable of determining gross vehicle weights and individual axle loads. For the purpose of ensuring the accuracy of the permit, the scales must be certified by the Texas Department of Agriculture or accepted by the United Mexican States. (2) A valid permit and certified weight ticket must be presented to the gate authorities before the permitted vehicle shall be allowed to exit or enter the port. (3) The owner of a vehicle permitted under this subchapter must be registered as a motor carrier in accordance with Transportation Code, Chapters 643 or 645, prior to the oversize or overweight permit being issued. The Port of Brownsville shall maintain records relative to this subchapter, which are subject to audit by department personnel. (4) Permits issued by the Port of Brownsville shall be in a form prescribed by the department. (5) The maximum speed for a permitted vehicle shall be 55 miles per hour or the posted maximum, whichever is less.</content><note type="source"><p>Source Note: The provisions of this §28.22 adopted to be effective August 16, 2012, 37 TexReg 6093; amended to be effective April 16, 2014, 39 TexReg 2960.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c28/scD"><num value="D">SUBCHAPTER D</num><heading>CHAMBERS COUNTY PERMITS</heading><section identifier="/us/state/tx/tac/t43/p1/c28/scD/s28.30"><num value="28.30">§28.30</num><heading>Purpose</heading><content>In accordance with Transportation Code, Chapter 623, Subchapter M, the commission may authorize Chambers County, Texas to issue permits for the movement of oversize and overweight vehicles and loads on the roads designated by Transportation Code, §623.252(b)(1). This subchapter sets forth the requirements and applicable procedures for the issuance of permits by Chambers County for the movement of oversize and overweight vehicles.</content><note type="source"><p>Source Note: The provisions of this §28.30 adopted to be effective August 16, 2012, 37 TexReg 6093.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scD/s28.31"><num value="28.31">§28.31</num><heading>Responsibilities</heading><content>(a) Authority to issue permits. Chambers County may issue a permit for a vehicle or vehicle combination that exceeds the vehicle size or weight limits specified by Transportation Code, Chapter 621, Subchapters B and C but does not exceed loaded dimensions of 12 feet wide, 16 feet high, or 110 feet long, or 100,000 pounds gross weight for travel on the roads designated by Transportation Code, §623.252(b)(1).(b) Permit fees and administrative costs. Chambers County shall collect a fee for each permit issued under this subchapter. The permit fee may not exceed $80 per trip. Chambers County may retain an amount up to 15 percent of each permit fee to cover costs of administering the program. The permit fee and administration costs shall be established by the agreement between the department and Chambers County. Chambers County shall deposit the permit fees collected, less administrative cost amounts authorized, in the State Highway Fund. The department will use those amounts for the maintenance and improvement of the roads designated by Transportation Code, §623.252(b)(1).(c) Surety bond. The department may require Chambers County to post a surety bond in the amount of $500,000 for the purpose of reimbursing the department the amount equal to the actual maintenance costs of roads designated by Transportation Code, §623.252(b)(1) less the amount that Chambers County deposits in the State Highway Fund under subsection (b) of this section.(d) Verification of permits. All permits issued by Chambers County shall be carried in the permitted vehicle. Chambers County shall provide access for verification of permit authenticity by law enforcement and department personnel.(e) Training. Chambers County shall secure any training necessary for personnel to issue permits under this subchapter. The department may provide assistance with training upon request by Chambers County.(f) Accounting. The department shall develop accounting procedures related to permits issued under this subchapter. Chambers County shall comply with those accounting procedures for the purpose of revenue collections and any payment made to the department under subsection (i) of this section.(g) Audits. The department may conduct annual audits of all Chambers County permit activities or upon direction by the executive director. In order to insure compliance, audits will at a minimum include a review of all permits issued, financial transaction records related to permit issuance, review of vehicle scale weight tickets, and monitoring of personnel issuing permits under this subchapter.(h) Revocation of authority to issue permits. If the department determines as a result of an audit that Chambers County is not complying with this subchapter, the executive director will issue a notice to Chambers County allowing 30 days to correct any non-compliance issue. If after 30 days it is determined that Chambers County is not in compliance, then the executive director may revoke Chambers County's authority to issue permits.(1) Upon notification that its authority to issue permits under this subchapter has been revoked, Chambers County may appeal the revocation to the commission in writing.(2) In cases where a revocation is being appealed, Chambers County's authority to issue permits under this subchapter shall remain in effect until the commission makes a final decision regarding the appeal.(3) Upon revocation of authority to issue permits, termination of the maintenance contract, or expiration of this subchapter, all permit fees collected by Chambers County, less allowable administrative costs, shall be paid to the department.(i) Maintenance payments. If Chambers County does not deposit in the State Highway Fund under subsection (b) of this section sufficient amounts to reimburse the department for the payment of the costs of maintenance of the highways that are designated by Transportation Code, §623.252(b)(1), Chambers County may pay the deficiency in lieu of the department's filing against the surety bond provided under subsection (c) of this section for that amount. Maintenance includes routine maintenance, preventive maintenance, and total reconstruction of the roadway and bridge structures as determined by the department to maintain the current level of service.(j) Reporting. Chambers County shall provide monthly and annual reports to the department's Finance Division regarding all permits issued and fees collected. The report must be in a format approved by the department.</content><note type="source"><p>Source Note: The provisions of this §28.31 adopted to be effective August 16, 2012, 37 TexReg 6093.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scD/s28.32"><num value="28.32">§28.32</num><heading>Permit Issuance Requirements and Procedures</heading><content>(a) Permit application. A permit issued under this subchapter shall be in a form approved by the department, and shall at a minimum include: (1) the name of the applicant; (2) date of issuance; (3) signature of the designated agent of Chambers County; (4) the maximum weight and dimensions of the proposed vehicle combination including the number of tires on each axle, tire size for each axle, distance between each axle, measured from center of axle to center of axle, and the specific weight of each individual axle when loaded; (5) a statement of the kind and weight of each commodity to be transported, not to exceed loaded dimensions of 12 feet wide, 16 feet high, or 110 feet long, or 100,000 pounds gross weight; (6) a statement of any condition on which the permit is issued; (7) a statement that the cargo may be transported in Chambers County only over the roads that are described by Transportation Code, §623.652(b)(1); (8) the location where the cargo was loaded; and (9) the date or dates on which movement authorized by the permit is allowed. (b) Permit issuance. (1) General. (A) The original permit must be carried in the vehicle for which it is issued. (B) A permit is void when an applicant: (i) gives false or incorrect information; (ii) does not comply with the restrictions or conditions stated in the permit; or (iii) changes or alters the information on the permit. (C) A permittee may not transport an overdimension or overweight load with a voided permit. (2) Payment of permit fee. Chambers County may determine acceptable methods of payment. All fees transmitted to the department must be in U.S. currency. (c) Maximum permit weight limits. (1) An axle group must have a minimum spacing of four feet, measured from center of axle to center of axle, between each axle in the group, to achieve the maximum permit weight for the group. (2) Two or more consecutive axle groups must have an axle spacing of 12 feet or greater, measured from the center of the last axle of the preceding group to the center of the first axle of the following group, in order for each group to be permitted for maximum permit weight. (3) Maximum permit weight for an axle or axle group is based on 650 pounds per inch of tire width or the following axle or axle group weights, whichever is the lesser amount; (A) single axle - 25,000 pounds; (B) two-axle group - 46,000 pounds; (C) three-axle group - 60,000 pounds; (D) four-axle group - 70,000 pounds; (E) five-axle group - 81,400 pounds; (F) trunnion axles - 60,000 pounds if: (i) the trunnion configuration has two axles; (ii) there are a total of 16 tires for a trunnion configuration; and (iii) the trunnion axle as shown in the following diagram is 10 feet in width. Attached Graphic(4) A permit issued under this subchapter does not authorize the vehicle to exceed manufacturer's tire load rating. (d) Vehicles exceeding weight limits. Any vehicle exceeding weight limits outlined in subsection (c) of this section, shall apply directly to the Texas Department of Motor Vehicles for an oversize or overweight permit in accordance with Transportation Code, Chapter 623. (e) Registration. Any vehicle or combination of vehicles permitted under this subchapter shall be registered in accordance with Transportation Code, Chapter 502. (f) Travel conditions. Movement of a permitted vehicle is prohibited when visibility is reduced to less than 2/10 of one mile or the road surface is hazardous due to weather conditions such as rain, ice, sleet, or snow, or highway maintenance or construction work. (g) Daylight and night movement restrictions. An oversize permitted vehicle may be moved only during daylight hours; however, an overweight only permitted vehicle may be moved at any time. (h) Restrictions. (1) Any vehicle issued a permit by Chambers County must be weighed on scales capable of determining permitted loaded gross vehicle weights and individual axle loads. For the purpose of ensuring the accuracy of the permit, the scales must be certified by the Texas Department of Agriculture. (2) A copy of the certified weight ticket shall be retained by Chambers County and become a part of the official permit record subject to inspection by department personnel or Texas Department of Public Safety personnel. (3) The owner of a vehicle permitted under this subchapter must be registered as a motor carrier in accordance with Transportation Code, Chapters 643 or 645, prior to the oversize or overweight permit being issued. (4) Permits issued by Chambers County shall be in a form prescribed by the department. (5) The maximum speed for a permitted vehicle shall be 55 miles per hour or the posted maximum, whichever is less. (i) Records. Chambers County shall maintain records relative to this subchapter, which are subject to audit by department personnel. (j) Issuing entity. A motor carrier transporting loads that fall within the size and weight limits of §28.31 of this subchapter (relating to Responsibilities) on trips originating and terminating within the Cedar Crossing Business Park using a road designated by Transportation Code, §623.252(b)(1) must obtain a permit from Chambers County.</content><note type="source"><p>Source Note: The provisions of this §28.32 adopted to be effective August 16, 2012, 37 TexReg 6093.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c28/scE"><num value="E">SUBCHAPTER E</num><heading>VICTORIA COUNTY NAVIGATION DISTRICT PERMITS</heading><section identifier="/us/state/tx/tac/t43/p1/c28/scE/s28.40"><num value="28.40">§28.40</num><heading>Purpose</heading><content>In accordance with Transportation Code, Chapter 623, Subchapter L, the commission may authorize the Victoria County Navigation District to issue permits for the movement of oversize or overweight vehicles carrying cargo on roads designated by Transportation Code, §623.232. This subchapter sets forth the requirements and procedures applicable to the issuance of permits by the Victoria County Navigation District for the movement of oversize and overweight vehicles.</content><note type="source"><p>Source Note: The provisions of this §28.40 adopted to be effective October 18, 2012, 37 TexReg 8207.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scE/s28.41"><num value="28.41">§28.41</num><heading>Definition</heading><content>In this subchapter, "district" means the Victoria County Navigation District.</content><note type="source"><p>Source Note: The provisions of this §28.41 adopted to be effective October 18, 2012, 37 TexReg 8207.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scE/s28.42"><num value="28.42">§28.42</num><heading>District's Powers and Duties</heading><content>(a) Authority to issue permits. The district may issue a permit and collect a fee for the movement within the district on the roads designated by Transportation Code, §623.232 of a vehicle or vehicle combination that exceeds the vehicle size or weight limits specified by Transportation Code, Chapter 621, Subchapters B and C, but does not exceed loaded dimensions of 12 feet wide, 16 feet high, and 110 feet long, and does not exceed 140,000 pounds gross weight.(b) Surety bond. The department may require the district to post a surety bond in the amount of $500,000 for the reimbursement of the department for actual maintenance costs of roads designated by Transportation Code, §623.232 if revenue collected from permits issued under this subchapter is insufficient to pay for those costs and the district fails to reimburse the department for those costs.(c) Verification of permits. The district shall provide law enforcement and department personnel access to any of the district's property to verify compliance with this subchapter by the district or another person.(d) Training. The district shall provide or obtain any training necessary for personnel to issue permits under this subchapter. The department may provide assistance with training on request by the district.(e) Accounting. The department shall develop accounting procedures related to permits issued under this subchapter with which the district must comply for revenue collections and any payment made to the department under subsection (i) of this section.(f) Audits. The department may conduct audits annually or on direction by the executive director of all permit issuance activities of the district. To insure compliance with applicable law, audits at a minimum will include a review of all permits issued, financial transaction records related to permit issuance, and vehicle scale weight tickets and the monitoring of personnel issuing permits under this subchapter.(g) Revocation of authority to issue permits. If the department determines as a result of an audit that the district is not complying with this subchapter or other applicable law, the executive director will issue a notice to the district allowing 30 days for the district to correct any non-compliance issue. If the department determines that, after that 30-day period, the district has not corrected the issue, the executive director may revoke the district's authority to issue permits under this subchapter. The district may appeal to the commission in writing the revocation of its authority under this subsection. If the district appeals the revocation, the district's authority to issue permits under this subchapter remains in effect until the commission makes a final decision on the appeal.(h) Fees. Fees under this subchapter may be collected, deposited, and used only as provided by Transportation Code, §623.234. The district may determine acceptable methods of payment. All fees transmitted to the department must be in U.S. currency. On revocation of the district's authority to issue permits, termination of the maintenance contract entered into under subsection (i) of this section, or expiration of this subchapter, the district shall pay to the department all permit fees collected by the district, less allowable administrative costs.(i) Maintenance contract. The district shall enter into a contract with the department for the maintenance of roads designated by Transportation Code, §623.232 for which a permit may be issued under this subchapter. The contract will cover routine maintenance, preventive maintenance, and total reconstruction of the roadway and bridge structures, as determined by the department to maintain the current level of service, and may include other types of maintenance.(j) Reporting. The district shall provide monthly and annual reports to the department's Finance Division regarding all permits issued and all fees collected during the period covered by the report. The report must be in a format approved by the department.</content><note type="source"><p>Source Note: The provisions of this §28.42 adopted to be effective October 18, 2012, 37 TexReg 8207.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scE/s28.43"><num value="28.43">§28.43</num><heading>Permit Eligibility</heading><content>(a) Registration requirements. To be eligible for a permit under this subchapter:(1) a vehicle or combination of vehicles must be registered under Transportation Code, Chapter 502; and(2) the owner of the vehicle or combination of vehicles must be registered as a motor carrier under Transportation Code, Chapter 643 or 645.(b) Prohibition for unpaid penalties. The district may not issue a permit under this subchapter:(1) to a person or company that is prohibited under Transportation Code, §623.271 from being issued a permit; or(2) for a vehicle that is prohibited under Transportation Code, §623.271 from being issued a permit.</content><note type="source"><p>Source Note: The provisions of this §28.43 adopted to be effective October 18, 2012, 37 TexReg 8207.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scE/s28.44"><num value="28.44">§28.44</num><heading>Permit Issuance Requirements and Procedures</heading><content>(a) Permit application. Application for a permit issued under this subchapter must be in a form approved by the department and at a minimum must include:(1) the name of the applicant;(2) the name of the driver of the vehicle in which the cargo is to be transported;(3) a description of the kind of cargo to be transported;(4) the kind and weight of each commodity to be transported;(5) the maximum weight and dimensions of the proposed vehicle combination, including number of tires on each axle, tire size for each axle, distance between each axle measured from center of axle to center of axle, and the specific weight of each individual axle when loaded;(6) the location where the cargo will be loaded; and(7) the date or dates on which movement is requested.(b) Permit form and contents. A permit issued under this subchapter must be in a form approved by the department and at a minimum must include all information required under Transportation Code, §623.235(a) and §623.236.</content><note type="source"><p>Source Note: The provisions of this §28.44 adopted to be effective October 18, 2012, 37 TexReg 8207.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scE/s28.45"><num value="28.45">§28.45</num><heading>Permit Weight Limits for Axles</heading><content>(a) Minimum axle group spacing. For an axle group to be permitted for maximum weight authorized under this section: (1) an axle group must have a minimum spacing of four feet, measured from center of axle to center of axle, between each axle in the group; and (2) two or more consecutive axle groups must have a minimum axle spacing of 12 feet, measured from center of the last axle of a group to center of the first axle of the immediately following group. (b) Maximum permit weight. Maximum permit weight for an axle or axle group is the weight computed by multiplying 650 pounds times the total number of inches of the width of tires on the axle or group or the following applicable axle or axle group weight, whichever is less: (1) single axle - 25,000 pounds; (2) two-axle group - 46,000 pounds; (3) three-axle group - 60,000 pounds; (4) four-axle group - 70,000 pounds; (5) five-axle group - 81,400 pounds; or (6) trunnion axles - 60,000 pounds if: (A) the trunnion configuration has two axles; (B) there are a total of 16 tires for the trunnion configuration; and (C) the trunnion axle, as shown in the following diagram, is 10 feet in width. Attached Graphic(c) Tire load rating. A permit issued under this subchapter does not authorize the vehicle to exceed manufacturer's tire load rating. (d) Permits for vehicles exceeding permit weight limits. For a vehicle exceeding weight limits provided in this section, a person must apply directly to the Texas Department of Motor Vehicles for an oversize or overweight permit in accordance Transportation Code, Chapter 623.</content><note type="source"><p>Source Note: The provisions of this §28.45 adopted to be effective October 18, 2012, 37 TexReg 8207.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scE/s28.46"><num value="28.46">§28.46</num><heading>Movement Requirements and Restrictions</heading><content>(a) Carrying of permit. The original permit issued by the district must be carried in the permitted vehicle.(b) Prohibition on movement with void permit. A permittee is prohibited from transporting an oversize or overweight load with a void permit. A permit is void if the applicant gives false or incorrect information. A permit becomes void when the permittee fails to comply with the restrictions or conditions stated in the permit or when the permittee changes or alters the information in the permit.(c) Weather conditions or road work. Movement of a permitted vehicle is prohibited when:(1) visibility is reduced to less than 2/10 of one mile;(2) the road surface is hazardous due to weather conditions, such as rain, ice, sleet, or snow; or(3) highway maintenance or construction work is being performed.(d) Daylight and night movement restrictions. An oversize permitted vehicle may be moved only during daylight hours. A permitted vehicle that is overweight but not oversize may be moved at any time.(e) Weight ticket requirement. Any vehicle issued a permit by the district must be weighed on scales that are capable of determining gross vehicle weights and individual axle loads and are certified by the Texas Department of Agriculture or accepted by the United Mexican States.(f) Speed. The maximum speed for a permitted vehicle is set by Transportation Code, §623.237.</content><note type="source"><p>Source Note: The provisions of this §28.46 adopted to be effective October 18, 2012, 37 TexReg 8207.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scE/s28.47"><num value="28.47">§28.47</num><heading>Records</heading><content>The district shall maintain records that evidence compliance with this subchapter. Those records are subject to audit by department personnel.</content><note type="source"><p>Source Note: The provisions of this §28.47 adopted to be effective October 18, 2012, 37 TexReg 8207.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c28/scF"><num value="F">SUBCHAPTER F</num><heading>PORT FREEPORT NAVIGATION DISTRICT PERMITS</heading><section identifier="/us/state/tx/tac/t43/p1/c28/scF/s28.60"><num value="28.60">§28.60</num><heading>Purpose</heading><content>In accordance with Transportation Code, Chapter 623, Subchapter K, the commission may authorize Port Freeport to issue permits for the movement of oversize or overweight vehicles carrying cargo on roads designated by Transportation Code, §623.219(b). This subchapter sets forth the requirements and procedures applicable to the issuance of permits by Port Freeport for the movement of oversize and overweight vehicles.</content><note type="source"><p>Source Note: The provisions of this §28.60 adopted to be effective September 18, 2013, 38 TexReg 6231.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scF/s28.61"><num value="28.61">§28.61</num><heading>Definition</heading><content>In this subchapter, "district" means Port Freeport, which is subject to Special District Local Laws Code, Chapter 5002.</content><note type="source"><p>Source Note: The provisions of this §28.61 adopted to be effective September 18, 2013, 38 TexReg 6231.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scF/s28.62"><num value="28.62">§28.62</num><heading>District's Powers and Duties</heading><content>(a) District authorized to issue permits. The district may issue a permit and collect a fee for the movement within the territory of the district on the roads designated by Transportation Code, §623.219(b) of a vehicle or vehicle combination that exceeds the vehicle size or weight limits specified by Transportation Code, Chapter 621, Subchapters B and C, but does not exceed loaded dimensions of 12 feet wide, 16 feet high, and 110 feet long, and does not exceed 125,000 pounds gross weight.(b) Surety bond. The department may require the district to post a surety bond in the amount of $500,000 for the reimbursement of the department for actual maintenance costs of roads designated by Transportation Code, §623.219(b) if revenue collected from permits issued under this subchapter is insufficient to pay for those costs and the district fails to reimburse the department for those costs.(c) Verification of permits. The district shall provide law enforcement and department personnel access to any of the district's property to verify compliance with this subchapter by the district or another person.(d) Training. The district shall provide or obtain any training necessary for personnel to issue permits under this subchapter. The department may provide assistance with training on request by the district.(e) Accounting. The department shall develop accounting procedures related to permits issued under this subchapter with which the district must comply for revenue collections and any payment made to the department under subsection (i) of this section.(f) Audits. The department may conduct audits annually or at the direction of the executive director of all permit issuance activities of the district. To insure compliance with applicable law, audits at a minimum will include a review of all permits issued, financial transaction records related to permit issuance and vehicle scale weight tickets, and the monitoring of personnel issuing permits under this subchapter.(g) Revocation of authority to issue permits. If the department determines as a result of an audit that the district is not complying with this subchapter or other applicable law, the executive director will issue a notice to the district allowing 30 days for the district to correct any non-compliance issue. If the department determines that, after that 30-day period, the district has not corrected the issue, the executive director may revoke the district's authority to issue permits under this subchapter. The district may appeal to the commission in writing the revocation of its authority under this subsection. If the district appeals the revocation, the district's authority to issue permits under this subchapter remains in effect until the commission makes a final decision on the appeal.(h) Fees. Fees under this subchapter may be collected, deposited, and used only as provided by Transportation Code, §623.214. The district may determine acceptable methods of payment. All fees transmitted to the department must be in U.S. currency. On revocation of the district's authority to issue permits, termination of the maintenance contract entered into under subsection (i) of this section, or expiration of this subchapter, the district shall pay to the department all permit fees collected by the district, less allowable administrative costs.(i) Maintenance contract. The district shall enter into a contract with the department for the maintenance of roads designated by Transportation Code, §623.219(b) for which a permit may be issued under this subchapter. The contract will cover routine maintenance, preventive maintenance, and total reconstruction of the roadway and bridge structures, as determined by the department to maintain the current level of service, and may include other types of maintenance.(j) Reporting. The district shall provide monthly and annual reports to the department's Finance Division regarding all permits issued and all fees collected during the period covered by the report. The report must be in a format approved by the department.</content><note type="source"><p>Source Note: The provisions of this §28.62 adopted to be effective September 18, 2013, 38 TexReg 6231.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scF/s28.63"><num value="28.63">§28.63</num><heading>Permit Eligibility</heading><content>(a) Registration requirements. To be eligible for a permit under this subchapter:(1) a vehicle or combination of vehicles must be registered under Transportation Code, Chapter 502; and(2) the owner of the vehicle or combination of vehicles must be registered as a motor carrier under Transportation Code, Chapter 643 or 645.(b) Prohibition for unpaid penalties. The district may not issue a permit under this subchapter:(1) to a person or company that is prohibited under Transportation Code, §623.271 from being issued a permit; or(2) for a vehicle that is prohibited under Transportation Code, §623.271 from being issued a permit.</content><note type="source"><p>Source Note: The provisions of this §28.63 adopted to be effective September 18, 2013, 38 TexReg 6231.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scF/s28.64"><num value="28.64">§28.64</num><heading>Permit Issuance Requirements and Procedures</heading><content>(a) Permit application. Application for a permit issued under this subchapter must be in a form approved by the department and at a minimum must include:(1) the name of the applicant;(2) the name of the driver of the vehicle in which the cargo is to be transported;(3) a description of the kind of cargo to be transported;(4) the kind and weight of each commodity to be transported;(5) the maximum weight and dimensions of the proposed vehicle combination, including number of tires on each axle, tire size for each axle, distance between each axle measured from center of axle to center of axle, and the specific weight of each individual axle when loaded;(6) the location where the cargo will be loaded; and(7) the date or dates on which movement is requested.(b) Permit form and contents. A permit issued under this subchapter must be in a form approved by the department and at a minimum must include all information required under Transportation Code, §623.215(a) and §623.216.</content><note type="source"><p>Source Note: The provisions of this §28.64 adopted to be effective September 18, 2013, 38 TexReg 6231.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scF/s28.65"><num value="28.65">§28.65</num><heading>Permit Weight Limits for Axles</heading><content>(a) Minimum axle group spacing. For an axle group to be permitted for maximum weight authorized under this section: (1) an axle group must have a minimum spacing of four feet, measured from center of axle to center of axle, between each axle in the group; and (2) two or more consecutive axle groups must have a minimum axle spacing of 12 feet, measured from center of the last axle of a group to center of the first axle of the immediately following group. (b) Maximum permit weight. Maximum permit weight for an axle or axle group is the weight computed by multiplying 650 pounds times the total number of inches of the width of tires on the axle or group or the following applicable axle or axle group weight, whichever is less: (1) single axle - 25,000 pounds; (2) two-axle group - 46,000 pounds; (3) three-axle group - 60,000 pounds; (4) four-axle group - 70,000 pounds; (5) five-axle group - 81,400 pounds; or (6) trunnion axles - 60,000 pounds if: (A) the trunnion configuration has two axles; (B) there are a total of 16 tires for the trunnion configuration; and (C) the trunnion axle, as shown in the following diagram, is 10 feet in width. Attached Graphic(c) Tire load rating. A permit issued under this subchapter does not authorize the vehicle to exceed manufacturer's tire load rating. (d) Permits for vehicles exceeding permit weight limits. For a vehicle exceeding weight limits provided in this section, a person must apply directly to the Texas Department of Motor Vehicles for an oversize or overweight permit in accordance with Transportation Code, Chapter 623.</content><note type="source"><p>Source Note: The provisions of this §28.65 adopted to be effective September 18, 2013, 38 TexReg 6231.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scF/s28.66"><num value="28.66">§28.66</num><heading>Movement Requirements and Restrictions</heading><content>(a) Carrying of permit. The original permit issued by the district must be carried in the permitted vehicle.(b) Prohibition on movement with void permit. A permittee is prohibited from transporting an oversize or overweight load with a void permit. A permit is void if the applicant gives false or incorrect information. A permit becomes void when the permittee fails to comply with the restrictions or conditions stated in the permit or when the permittee changes or alters the information in the permit.(c) Weather conditions or road work. Movement of a permitted vehicle is prohibited when:(1) visibility is reduced to less than 2/10 of one mile;(2) the road surface is hazardous due to weather conditions, such as rain, ice, sleet, or snow; or(3) highway maintenance or construction work is being performed.(d) Daylight and night movement restrictions. An oversize permitted vehicle may be moved only during daylight hours. A permitted vehicle that is overweight but not oversize may be moved at any time.(e) Weight ticket requirement. Any vehicle issued a permit by the district must be weighed on scales that are capable of determining gross vehicle weights and individual axle loads and are certified by the Texas Department of Agriculture or accepted by the United Mexican States.(f) Speed. The maximum speed for a permitted vehicle is set by Transportation Code, §623.217.</content><note type="source"><p>Source Note: The provisions of this §28.66 adopted to be effective September 18, 2013, 38 TexReg 6231.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scF/s28.67"><num value="28.67">§28.67</num><heading>Records</heading><content>The district shall maintain records that evidence compliance with this subchapter. Those records are subject to audit by department personnel.</content><note type="source"><p>Source Note: The provisions of this §28.67 adopted to be effective September 18, 2013, 38 TexReg 6231.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c28/scG"><num value="G">SUBCHAPTER G</num><heading>ANALYSIS OF ROUTES FOR SUPERHEAVY PERMITTED LOADS</heading><section identifier="/us/state/tx/tac/t43/p1/c28/scG/s28.80"><num value="28.80">§28.80</num><heading>Purpose</heading><content>Under Transportation Code, §623.003 the department is required to provide information to the Texas Department of Motor Vehicles for the issuance of an oversize and overweight permit. The department relies on outside engineering firms to provide the initial review and analysis for the permit application in providing the specific route for superheavy loads. This subchapter provides the requirements and procedure for the certification of a third-party engineering firm to perform an analysis to be used by the department in establishing route requirements for the Texas Department of Motor Vehicles to issue a permit for the movement of superheavy loads.</content><note type="source"><p>Source Note: The provisions of this §28.80 adopted to be effective November 21, 2013, 38 TexReg 8251.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scG/s28.81"><num value="28.81">§28.81</num><heading>Definition</heading><content>In this subchapter, "superheavy load" means an overweight load that is over 254,300 pounds gross weight, between 200,001 and 254,300 pounds total weight with less than 95 feet overall axle spacing, or over the maximum permitted weight on any axle or axle group as established in §219.11(d)(2) of this title (relating to General Oversize/Overweight Permit Requirements and Procedures).</content><note type="source"><p>Source Note: The provisions of this §28.81 adopted to be effective November 21, 2013, 38 TexReg 8251.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scG/s28.82"><num value="28.82">§28.82</num><heading>Certification Required</heading><content>An engineering firm must be certified under this subchapter before it may provide a report under §28.86 of this subchapter (relating to Bridge Report) to be used by the department in determining the route for an oversize and overweight permit application for a superheavy load.</content><note type="source"><p>Source Note: The provisions of this §28.82 adopted to be effective November 21, 2013, 38 TexReg 8251.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scG/s28.83"><num value="28.83">§28.83</num><heading>Certification Application Process</heading><content>(a) Eligibility requirements. To be eligible for certification under this subchapter, an engineering firm must be registered by the Texas Board of Professional Engineers and must show that each engineer who will perform an analysis under the certification is: (1) knowledgeable of the laws, including regulations, relating to the permitting of oversize and overweight vehicles; and (2) able to demonstrate competence in bridge load rating or overload analysis of grossly over-dimensioned vehicles to which the Manual for Bridge Evaluation, by the American Association of State Highway and Transportation Office, does not directly apply. (b) Application requirements. An applicant must: (1) submit a completed application on the form provided by the department; and (2) provide a summary of qualifications indicating experience with bridge load ratings. (c) The department will conduct an interview with an applicant to determine the applicant's level of experience.</content><note type="source"><p>Source Note: The provisions of this §28.83 adopted to be effective November 21, 2013, 38 TexReg 8251.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scG/s28.84"><num value="28.84">§28.84</num><heading>Application Review</heading><content>(a) The department will review and evaluate certification applications submitted under this subchapter.(b) The department will deny an application:(1) if the application:(A) is not complete; or(B) contains false or misleading information; or(2) if the applicant:(A) does not meet the eligibility requirements; or(B) does not provide the information required under §28.83(b)(2) of this subchapter (relating to Certification Application Process).</content><note type="source"><p>Source Note: The provisions of this §28.84 adopted to be effective November 21, 2013, 38 TexReg 8251.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scG/s28.85"><num value="28.85">§28.85</num><heading>Certification Decision</heading><content>(a) The department will certify the applicant or deny the application within 60 days after the date that the department receives the completed application.(b) If the application is denied, the department will notify the applicant in writing of, and state the reasons for, the denial.(c) If denial of an application is based on the applicant's qualifications, the firm may not reapply for certification within the 12-month period beginning on the date of a denial notice.(d) The department will notify the Texas Department of Motor Vehicles on approval of a firm under this section.</content><note type="source"><p>Source Note: The provisions of this §28.85 adopted to be effective November 21, 2013, 38 TexReg 8251.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scG/s28.86"><num value="28.86">§28.86</num><heading>Bridge Report</heading><content>(a) Before the department will provide route information to the Texas Department of Motor Vehicles for the issuance of the oversize and overweight permit for a superheavy load, the department must receive from an engineering firm certified under this subchapter a written report that includes a detailed structural analysis of the bridges on the proposed route demonstrating that the bridges and culverts on the route are capable of sustaining the load.(b) The report must be submitted in the form prescribed by the department.(c) Failure to submit a report in the prescribed form may result in non-consideration of the analysis.</content><note type="source"><p>Source Note: The provisions of this §28.86 adopted to be effective November 21, 2013, 38 TexReg 8251.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scG/s28.87"><num value="28.87">§28.87</num><heading>Termination of Certification</heading><content>(a) The department at any time may terminate for cause a certification issued under this subchapter.(b) The department will send written notification of the termination to the engineering firm and the Texas Department of Motor Vehicles. The department will not accept a report under §28.86 of this subchapter (relating to Bridge Report) from the firm after the date of the notification for termination.</content><note type="source"><p>Source Note: The provisions of this §28.87 adopted to be effective November 21, 2013, 38 TexReg 8251.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scG/s28.88"><num value="28.88">§28.88</num><heading>Disclosure of Bridge Information</heading><content>(a) To obtain bridge information, including bridge plans and inspection reports, from the department, an engineering firm must be certified under this subchapter and must enter into a confidentiality agreement relating to that information.(b) The confidentiality agreement must require that if the engineering firm is requested or ordered to disclose confidential information provided by the department, the firm shall:(1) provide notice of the request or order to the department within three days of its receipt; and(2) cooperate with the department to seek an appropriate response to the disclosure request or order.(c) If disclosure of the confidential information is required by a court, the engineering firm shall disclose only that portion of the information that is specifically required to be disclosed in the court order.</content><note type="source"><p>Source Note: The provisions of this §28.88 adopted to be effective November 21, 2013, 38 TexReg 8251.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c28/scH"><num value="H">SUBCHAPTER H</num><heading>HIDALGO COUNTY REGIONAL MOBILITY AUTHORITY PERMITS</heading><section identifier="/us/state/tx/tac/t43/p1/c28/scH/s28.100"><num value="28.100">§28.100</num><heading>Purpose</heading><content>In accordance with Transportation Code, Chapter 623, Subchapter S, the commission may authorize Hidalgo County Regional Mobility Authority to issue permits for the movement of oversize or overweight vehicles carrying cargo on roads designated by Transportation Code, §623.363 and as designated by the commission under this subchapter. This subchapter sets forth the requirements and procedures applicable to the issuance of permits by Hidalgo County Regional Mobility Authority for the movement of oversize and overweight vehicles.</content><note type="source"><p>Source Note: The provisions of this §28.100 adopted to be effective January 9, 2014, 39 TexReg 116; amended to be effective January 7, 2015, 40 TexReg 103; amended to be effective December 9, 2015, 40 TexReg 8800.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scH/s28.101"><num value="28.101">§28.101</num><heading>Definition</heading><content>In this subchapter, "authority" means Hidalgo County Regional Mobility Authority, which is subject to Special District Local Laws Code, Chapter 5002.</content><note type="source"><p>Source Note: The provisions of this §28.101 adopted to be effective January 9, 2014, 39 TexReg 116.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scH/s28.102"><num value="28.102">§28.102</num><heading>Authority's Powers and Duties</heading><content>(a) Authority authorized to issue permits. Subject to subsection (j) of this section, the authority may issue a permit and collect a fee for the movement within the territory of the authority of a vehicle or vehicle combination that exceeds the vehicle size or weight limits specified by Transportation Code, Chapter 621, Subchapters B and C, but does not exceed loaded dimensions of 12 feet wide, 16 feet high, and 110 feet long, and does not exceed 125,000 pounds gross weight for travel on:(1) the state-owned roads designated by Transportation Code, §623.363;(2) US 281/Military Highway from Spur 29 to FM 1015;(3) FM 1015 from US 281/Military Highway, south to the Progreso International Bridge;(4) FM 2557 from US 281/Military Highway to Interstate 2;(5) FM 3072 from Veterans Boulevard ("I" Road) to Cesar Chavez Road;(6) US 281 (Cage Boulevard) from Spur 600 to Anaya Road;(7) U.S. Highway 83 Business from South Pleasantview Drive to South Bridge Avenue; and(8) the segment of W. Doffing Road from the intersection with Doffin Canal Road/S. Veterans Blvd (Spur 29) to 0.8 miles east of that intersection, which segment is not on the state highway system.(b) Surety bond. The authority shall obtain a surety bond in the amount set by the department to cover the estimated annual maintenance costs of roads identified in subsection (a) of this section. The department will draw on the bond only if revenue collected from permits issued under this subchapter is insufficient to pay for those costs and the authority fails to reimburse the department for those costs. The estimated maintenance costs will be based on the amortized cost of the identified roads, projected regular maintenance and operations costs, and the bridge consumption costs associated with the movement of overweight and oversize vehicles issued a permit by the authority.(c) Verification of permits. The authority shall provide law enforcement and department personnel access to any of the authority's property to verify compliance with this subchapter by the authority or another person.(d) Training. The authority shall provide or obtain any training necessary for personnel to issue permits under this subchapter. The department may provide assistance with training on request by the authority.(e) Accounting. The department shall develop accounting procedures related to permits issued under this subchapter with which the authority must comply for revenue collections and any payment made to the department under subsection (i) of this section.(f) Audits. The department may conduct audits annually or at the direction of the executive director of all permit issuance activities of the authority. To insure compliance with applicable law, audits at a minimum will include a review of all permits issued, financial transaction records related to permit issuance and vehicle scale weight tickets, and the monitoring of personnel issuing permits under this subchapter.(g) Revocation of authority to issue permits. If the department determines as a result of an audit that the authority is not complying with this subchapter or other applicable law, the executive director will issue a notice to the authority allowing 30 days for the authority to correct any non-compliance issue. If the department determines that, after that 30-day period, the authority has not corrected the issue, the executive director may revoke the authority's authority to issue permits under this subchapter. The authority may appeal to the commission in writing the revocation of its authority under this subsection. If the authority appeals the revocation, the authority's authority to issue permits under this subchapter remains in effect until the commission makes a final decision on the appeal.(h) Fees. Fees under this subchapter may be collected, deposited, and used only as provided by Transportation Code, §623.364. The authority may determine acceptable methods of payment. All fees transmitted to the department must be in U.S. currency. On revocation of the authority's authority to issue permits, termination of the maintenance contract entered into under subsection (i) of this section, or expiration of this subchapter, the authority shall pay to the department all permit fees collected by the authority, less allowable administrative costs.(i) Maintenance contract. The authority shall enter into a contract with the department for the maintenance of roads identified in subsection (a) of this section for which a permit may be issued under this subchapter. The contract will cover routine maintenance, preventive maintenance, and total reconstruction of the roadway and bridge structures, as determined by the department to maintain the current level of service, and may include other types of maintenance.(j) Off-system roadways. Before the authority may issue a permit and collect a fee for the movement of a vehicle or vehicle combination on a roadway designated in subsection (a)(8) of this section, the authority must demonstrate to the satisfaction of the department that the roadway has sufficient structure to safely sustain the overweight loads. The authority is responsible for the maintenance and repair of each roadway designated in subsection (a)(8) of this section for which it issues a permit to the level of service determined by the department under subsection (i) of this section. The maintenance contract entered into under subsection (i) of this section must provide details of the allocation of the permit fees to be used for the maintenance of such a roadway. The authority may not issue a permit for the movement of a vehicle or vehicle combination after September 30, 2025, on a roadway designated in subsection (a)(8) of this section.(k) Reporting. The authority shall provide monthly and annual reports to the department's Finance Division regarding all permits issued and all fees collected during the period covered by the report. The report must be in a format approved by the department.</content><note type="source"><p>Source Note: The provisions of this §28.102 adopted to be effective January 9, 2014, 39 TexReg 116; amended to be effective January 7, 2015, 40 TexReg 103; amended to be effective December 9, 2015, 40 TexReg 8800; amended to be effective January 3, 2018, 42 TexReg 7730; amended to be effective September 11, 2024, 49 TexReg 7056.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scH/s28.103"><num value="28.103">§28.103</num><heading>Permit Eligibility</heading><content>(a) Registration requirements. To be eligible for a permit under this subchapter:(1) a vehicle or combination of vehicles must be registered under Transportation Code, Chapter 502; and(2) the owner of the vehicle or combination of vehicles must be registered as a motor carrier under Transportation Code, Chapter 643 or 645.(b) Prohibition for unpaid penalties. The authority may not issue a permit under this subchapter:(1) to a person or company that is prohibited under Transportation Code, §623.271 from being issued a permit; or(2) for a vehicle that is prohibited under Transportation Code, §623.271 from being issued a permit.</content><note type="source"><p>Source Note: The provisions of this §28.103 adopted to be effective January 9, 2014, 39 TexReg 116.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scH/s28.104"><num value="28.104">§28.104</num><heading>Permit Issuance Requirements and Procedures</heading><content>(a) Permit application. Application for a permit issued under this subchapter must be in a form approved by the department and at a minimum must include:(1) the name of the applicant;(2) a description of the kind of cargo to be transported;(3) the kind and weight of each commodity to be transported;(4) the maximum weight and dimensions of the proposed vehicle combination, including number of tires on each axle, tire size for each axle, distance between each axle measured from center of axle to center of axle, and the specific weight of each individual axle when loaded;(5) the locations where the cargo will be loaded and delivered; and(6) the date or dates on which movement is requested.(b) Permit form and contents. A permit issued under this subchapter must be in a form approved by the department and at a minimum must include all information required under Transportation Code, §623.365(a) and §623.366.</content><note type="source"><p>Source Note: The provisions of this §28.104 adopted to be effective January 9, 2014, 39 TexReg 116; amended to be effective December 9, 2015, 40 TexReg 8800.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scH/s28.105"><num value="28.105">§28.105</num><heading>Permit Weight Limits for Axles</heading><content>(a) Minimum axle group spacing. For an axle group to be permitted for maximum weight authorized under this section: (1) an axle group must have a minimum spacing of four feet, measured from center of axle to center of axle, between each axle in the group; and (2) two or more consecutive axle groups must have a minimum axle spacing of 12 feet, measured from center of the last axle of a group to center of the first axle of the immediately following group. (b) Maximum permit weight. Maximum permit weight for an axle or axle group is the weight computed by multiplying 650 pounds times the total number of inches of the width of tires on the axle or group or the following applicable axle or axle group weight, whichever is less: (1) single axle - 25,000 pounds; (2) two-axle group - 46,000 pounds; (3) three-axle group - 60,000 pounds; (4) four-axle group - 70,000 pounds; (5) five-axle group - 81,400 pounds; or (6) trunnion axles - 60,000 pounds if: (A) the trunnion configuration has two axles; (B) there are a total of 16 tires for the trunnion configuration; and (C) the trunnion axle, as shown in the following diagram, is 10 feet in width. Attached Graphic(c) Tire load rating. A permit issued under this subchapter does not authorize the vehicle to exceed manufacturer's tire load rating. (d) Permits for vehicles exceeding permit weight limits. For a vehicle exceeding weight limits provided in this section, a person must apply directly to the Texas Department of Motor Vehicles for an oversize or overweight permit in accordance with Transportation Code, Chapter 623.</content><note type="source"><p>Source Note: The provisions of this §28.105 adopted to be effective January 9, 2014, 39 TexReg 116.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scH/s28.106"><num value="28.106">§28.106</num><heading>Movement Requirements and Restrictions</heading><content>(a) Carrying of permit. The original permit issued by the authority must be carried in the permitted vehicle.(b) Prohibition on movement with void permit. A permittee is prohibited from transporting an oversize or overweight load with a void permit. A permit is void if the applicant gives false or incorrect information. A permit becomes void when the permittee fails to comply with the restrictions or conditions stated in the permit or when the permittee changes or alters the information in the permit.(c) Weather conditions or road work. Movement of a permitted vehicle is prohibited when:(1) visibility is reduced to less than 2/10 of one mile;(2) the road surface is hazardous due to weather conditions, such as rain, ice, sleet, or snow; or(3) highway maintenance or construction work is being performed.(d) Daylight and night movement restrictions. An oversize permitted vehicle may be moved only during daylight hours. A permitted vehicle that is overweight but not oversize may be moved at any time.(e) Weight ticket requirement. Any vehicle issued a permit by the authority must be weighed on scales that are capable of determining gross vehicle weights and individual axle loads and are certified by the Texas Department of Agriculture or accepted by the United Mexican States.(f) Speed. The maximum speed for a permitted vehicle is set by Transportation Code, §623.367.</content><note type="source"><p>Source Note: The provisions of this §28.106 adopted to be effective January 9, 2014, 39 TexReg 116; amended to be effective December 9, 2015, 40 TexReg 8800.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scH/s28.107"><num value="28.107">§28.107</num><heading>Records</heading><content>The authority shall maintain records that evidence compliance with this subchapter. Those records are subject to audit by department personnel.</content><note type="source"><p>Source Note: The provisions of this §28.107 adopted to be effective January 9, 2014, 39 TexReg 116.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c28/scI"><num value="I">SUBCHAPTER I</num><heading>PORT OF HARLINGEN AUTHORITY PERMITS</heading><section identifier="/us/state/tx/tac/t43/p1/c28/scI/s28.110"><num value="28.110">§28.110</num><heading>Purpose</heading><content>In accordance with Transportation Code, Chapter 623, Subchapter K, the commission may authorize Port of Harlingen Authority to issue permits for the movement of oversize or overweight vehicles carrying cargo on roads designated by Transportation Code, §623.219(a)(2)(B), (C), (D), and (E). This subchapter sets forth the requirements and procedures applicable to the issuance of permits by Port of Harlingen Authority for the movement of oversize and overweight vehicles.</content><note type="source"><p>Source Note: The provisions of this §28.110 adopted to be effective November 17, 2016, 41 TexReg 9026.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scI/s28.111"><num value="28.111">§28.111</num><heading>Definition</heading><content>In this subchapter, "Authority" means Port of Harlingen Authority.</content><note type="source"><p>Source Note: The provisions of this §28.111 adopted to be effective November 17, 2016, 41 TexReg 9026.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scI/s28.112"><num value="28.112">§28.112</num><heading>Authority's Powers and Duties</heading><content>(a) Authority authorized to issue permits. The Authority may issue a permit and collect a fee for the movement on roads designated by Transportation Code, §623.219(a)(2)(B), (C), (D), and (E) of a vehicle or vehicle combination that exceeds the vehicle size or weight limits specified by Transportation Code, Chapter 621, Subchapters B and C, but does not exceed loaded dimensions of 12 feet wide, 16 feet high, and 110 feet long, and does not exceed 125,000 pounds gross weight.(b) Surety bond. The department may require the Authority to post a surety bond in the amount of $500,000 for the reimbursement of the department for actual maintenance costs of roads designated by Transportation Code, §623.219(a)(2)(B), (C), (D), and (E) if revenue collected from permits issued under this subchapter is insufficient to pay for those costs and the Authority fails to reimburse the department for those costs. The estimated maintenance costs will be based on the amortized cost of the identified roads, projected regular maintenance and operations costs, and the bridge consumption costs associated with the movement of overweight and oversize vehicles issued a permit by the Authority.(c) Verification of permits. The Authority shall provide law enforcement and department personnel access to any of the Authority's property to verify compliance with this subchapter by the Authority or another person.(d) Training. The Authority shall provide or obtain any training necessary for personnel to issue permits under this subchapter. The department may provide assistance with training on request by the Authority.(e) Accounting. The Authority must comply with the department's accounting procedures for revenue collections and payments made to the department under subsection (i) of this section.(f) Audits. The department may conduct audits annually or at the direction of the executive director of all permit issuance activities of the Authority. To insure compliance with applicable law, audits at a minimum will include a review of all permits issued, financial transaction records related to permit issuance and vehicle scale weight tickets, and the monitoring of personnel issuing permits under this subchapter.(g) Revocation of authority to issue permits. If the department determines as a result of an audit that the Authority is not complying with this subchapter or other applicable law, the executive director will issue a notice to the Authority allowing 30 days for the Authority to correct any non-compliance issue. If the department determines that, after that 30-day period, the Authority has not corrected the issue, the executive director may revoke the Authority's authority to issue permits under this subchapter. The Authority may appeal to the commission in writing the revocation of its authority under this subsection. If the Authority appeals the revocation, the Authority's authority to issue permits under this subchapter remains in effect until the commission makes a final decision on the appeal.(h) Fees. Fees under this subchapter may be collected, deposited, and used only as provided by Transportation Code, §623.214. The Authority may determine acceptable methods of payment. All fees transmitted to the department must be in U.S. currency. On revocation of the Authority's authority to issue permits, termination of the maintenance contract entered into under subsection (i) of this section, or expiration of this subchapter, the Authority shall pay to the department all permit fees collected by the Authority, less allowable administrative costs.(i) Maintenance agreement. The Authority shall enter into an agreement with the department for the maintenance of roads designated by Transportation Code, §623.219(a)(2)(B), (C), (D), and (E) for which a permit may be issued under this subchapter. The contract will cover routine maintenance, preventive maintenance, and total reconstruction of the roadway and bridge structures, as determined by the department to maintain the current level of service, and may include other types of maintenance.(j) Reporting. The Authority shall provide monthly and annual reports to the department's Financial Management Division regarding all permits issued and all fees collected during the period covered by the report. The report must be in a format approved by the department.</content><note type="source"><p>Source Note: The provisions of this §28.112 adopted to be effective November 17, 2016, 41 TexReg 9026.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scI/s28.113"><num value="28.113">§28.113</num><heading>Permit Eligibility</heading><content>(a) Registration requirements. To be eligible for a permit under this subchapter:(1) a vehicle or combination of vehicles must be registered under Transportation Code, Chapter 502; and(2) the owner of the vehicle or combination of vehicles must be registered as a motor carrier under Transportation Code, Chapter 643 or 645.(b) Prohibition for unpaid penalties. The Authority may not issue a permit under this subchapter:(1) to a person or company that is prohibited under Transportation Code, §623.271 from being issued a permit; or(2) for a vehicle that is prohibited under Transportation Code, §623.271 from being issued a permit.</content><note type="source"><p>Source Note: The provisions of this §28.113 adopted to be effective November 17, 2016, 41 TexReg 9026.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scI/s28.114"><num value="28.114">§28.114</num><heading>Permit Issuance Requirements and Procedures</heading><content>(a) Permit application. Application for a permit issued under this subchapter must be in a form approved by the department and at a minimum must include:(1) the name of the applicant;(2) the name of the driver of the vehicle in which the cargo is to be transported;(3) a description of the kind of cargo to be transported;(4) the kind and weight of each commodity to be transported;(5) the maximum weight and dimensions of the proposed vehicle combination, including number of tires on each axle, tire size for each axle, distance between each axle measured from center of axle to center of axle, and the specific weight of each individual axle when loaded;(6) the route the carrier will travel on roads designated by Transportation Code, §623.219(a)(2)(B), (C), (D), and (E);(7) the date or dates on which movement is requested.(b) Permit form and contents. A permit issued under this subchapter must be in a form approved by the department and at a minimum must include all information required under Transportation Code, §623.215(a) and §623.216.</content><note type="source"><p>Source Note: The provisions of this §28.114 adopted to be effective November 17, 2016, 41 TexReg 9026.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scI/s28.115"><num value="28.115">§28.115</num><heading>Permit Weight Limits for Axles</heading><content>(a) Minimum axle group spacing. For an axle group to be permitted for maximum weight authorized under this section:(1) an axle group must have a minimum spacing of four feet, measured from center of axle to center of axle, between each axle in the group; and(2) two or more consecutive axle groups must have a minimum axle spacing of 12 feet, measured from center of the last axle of a group to center of the first axle of the immediately following group.(b) Maximum permit weight. Maximum permit weight for an axle or axle group is the weight computed by multiplying 650 pounds times the total number of inches of the width of tires on the axle or group or the following applicable axle or axle group weight, whichever is less:(1) single axle - 25,000 pounds;(2) two-axle group - 46,000 pounds;(3) three-axle group - 60,000 pounds;(4) four-axle group - 70,000 pounds;(5) five-axle group - 81,400 pounds; or(6) trunnion axles - 60,000 pounds if:(A) the trunnion configuration has two axles;(B) there are a total of 16 tires for the trunnion configuration; and(C) the trunnion axle, as shown in the following diagram, is 10 feet in width.Attached Graphic(c) Tire load rating. A permit issued under this subchapter does not authorize the vehicle to exceed manufacturer's tire load rating.(d) Permits for vehicles exceeding permit weight limits. For a vehicle exceeding weight limits provided in this section, a person must apply directly to the Texas Department of Motor Vehicles for an oversize or overweight permit in accordance with Transportation Code, Chapter 623.</content><note type="source"><p>Source Note: The provisions of this §28.115 adopted to be effective November 17, 2016, 41 TexReg 9026.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scI/s28.116"><num value="28.116">§28.116</num><heading>Movement Requirements and Restrictions</heading><content>(a) Carrying of permit. The original permit issued by the Authority must be carried in the permitted vehicle.(b) Prohibition on movement with void permit. A permittee is prohibited from transporting an oversize or overweight load with a void permit. A permit is void if the applicant gives false or incorrect information. A permit becomes void when the permittee fails to comply with the restrictions or conditions stated in the permit or when the permittee changes or alters the information in the permit.(c) Weather conditions or road work. Movement of a permitted vehicle is prohibited when:(1) visibility is reduced to less than 2/10 of one mile;(2) the road surface is hazardous due to weather conditions, such as rain, ice, sleet, or snow; or(3) highway maintenance or construction work is being performed.(d) Daylight and night movement restrictions. An oversize permitted vehicle may be moved only during daylight hours. A permitted vehicle that is overweight but not oversize may be moved at any time.(e) Weight ticket requirement. Any vehicle issued a permit by the Authority must be weighed on scales that are capable of determining gross vehicle weights and individual axle loads and are certified by the Texas Department of Agriculture or accepted by the United Mexican States.(f) Speed. The maximum speed for a permitted vehicle is set by Transportation Code, §623.217.</content><note type="source"><p>Source Note: The provisions of this §28.116 adopted to be effective November 17, 2016, 41 TexReg 9026.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scI/s28.117"><num value="28.117">§28.117</num><heading>Records</heading><content>The Authority shall maintain records that evidence compliance with this subchapter. Those records are subject to audit by department personnel.</content><note type="source"><p>Source Note: The provisions of this §28.117 adopted to be effective November 17, 2016, 41 TexReg 9026.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c28/scJ"><num value="J">SUBCHAPTER J</num><heading>PORT OF PALACIOS PERMITS</heading><section identifier="/us/state/tx/tac/t43/p1/c28/scJ/s28.120"><num value="28.120">§28.120</num><heading>Purpose</heading><content>In accordance with Transportation Code, Chapter 623, Subchapter K, the commission may authorize the Port of Palacios to issue permits for the movement of oversize or overweight vehicles carrying cargo on roads designated by Transportation Code, §623.219(b-1). This subchapter sets forth the requirements and procedures applicable to the issuance of permits by the Port of Palacios for the movement of oversize and overweight vehicles.</content><note type="source"><p>Source Note: The provisions of this §28.120 adopted to be effective April 20, 2023, 48 TexReg 1971.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scJ/s28.121"><num value="28.121">§28.121</num><heading>Definition</heading><content>In this subchapter, "Authority" means the Port of Palacios.</content><note type="source"><p>Source Note: The provisions of this §28.121 adopted to be effective April 20, 2023, 48 TexReg 1971.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scJ/s28.122"><num value="28.122">§28.122</num><heading>Authority's Powers and Duties</heading><content>(a) Authority authorized to issue permits. The Authority may issue a permit and collect a fee for the movement, on roads designated by Transportation Code, §623.219(b-1), of a vehicle or vehicle combination that exceeds the vehicle size or weight limits specified by Transportation Code, Chapter 621, Subchapters B and C, but does not exceed loaded dimensions of 12 feet wide, 16 feet high, and 110 feet long, and does not exceed 125,000 pounds gross weight.(b) Surety bond. The department may require the Authority to post a surety bond in the amount of $500,000 for the reimbursement of the department for actual maintenance costs of roads designated by Transportation Code, §623.219(b-1) if revenue collected from permits issued under this subchapter is insufficient to pay for those costs and the Authority fails to reimburse the department for those costs. The estimated maintenance costs will be based on the amortized cost of the identified roads, projected regular maintenance and operations costs, and the bridge consumption costs associated with the movement of overweight and oversize vehicles issued a permit by the Authority.(c) Verification of permits. The Authority shall provide law enforcement and department personnel access to any of the Authority's property to verify compliance with this subchapter by the Authority or another person.(d) Training. The Authority shall provide or obtain any training necessary for personnel to issue permits under this subchapter. The department may provide assistance with training on request by the Authority.(e) Accounting. The Authority must comply with the department's accounting procedures for revenue collections and payments made to the department under subsection (i) of this section.(f) Audits. The department may conduct audits annually or, at the direction of the executive director, conduct audits of all permit issuance activities of the Authority. To ensure compliance with applicable law, audits at a minimum will include a review of all permits issued, financial transaction records related to permit issuance and vehicle scale weight tickets, and the monitoring of personnel issuing permits under this subchapter.(g) Revocation of authority to issue permits. If the department determines as a result of an audit that the Authority is not complying with this subchapter or other applicable law, the executive director will issue a notice to the Authority allowing 30 days for the Authority to correct any non-compliance issue. If the department determines that, after that 30-day period, the Authority has not corrected the issue, the executive director may revoke the Authority's authority to issue permits under this subchapter. The Authority may appeal to the commission in writing the revocation of its authority under this subsection. If the Authority appeals the revocation, the Authority's authority to issue permits under this subchapter remains in effect until the commission makes a final decision on the appeal.(h) Fees. Fees under this subchapter may be collected, deposited, and used only as provided by Transportation Code, §623.214. The Authority may determine acceptable methods of payment. All fees transmitted to the department must be in U.S. currency. On revocation of the Authority's authority to issue permits, termination of the maintenance agreement entered into under subsection (i) of this section, or expiration of this subchapter, the Authority shall pay to the department all permit fees collected by the Authority, less allowable administrative costs.(i) Maintenance agreement. The Authority shall enter into an agreement with the department for the maintenance of roads designated by Transportation Code, §623.219(b-1), for which a permit may be issued under this subchapter. The agreement will cover routine maintenance, preventive maintenance, and total reconstruction of the roadway and bridge structures, as determined by the department to maintain the current level of service, and may include other types of maintenance.(j) Reporting. The Authority shall provide monthly and annual reports to the department's Financial Management Division regarding all permits issued and all fees collected during the period covered by the report. The report must be in a format approved by the department.</content><note type="source"><p>Source Note: The provisions of this §28.122 adopted to be effective April 20, 2023, 48 TexReg 1971.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scJ/s28.123"><num value="28.123">§28.123</num><heading>Permit Eligibility</heading><content>(a) Registration requirements. To be eligible for a permit under this subchapter:(1) a vehicle or combination of vehicles must be registered under Transportation Code, Chapter 502; and(2) the owner of the vehicle or combination of vehicles must be registered as a motor carrier under Transportation Code, Chapter 643 or 645.(b) Prohibition for unpaid penalties. The Authority may not issue a permit under this subchapter:(1) to a person or company that is prohibited under Transportation Code, §623.271 from being issued a permit; or(2) for a vehicle that is prohibited under Transportation Code, §623.271 from being issued a permit.</content><note type="source"><p>Source Note: The provisions of this §28.123 adopted to be effective April 20, 2023, 48 TexReg 1971.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scJ/s28.124"><num value="28.124">§28.124</num><heading>Permit Issuance Requirements and Procedures</heading><content>(a) Permit application. Application for a permit issued under this subchapter must be in a form approved by the department and at a minimum must include:(1) the name of the applicant;(2) the name of the driver of the vehicle in which the cargo is to be transported;(3) a description of the kind of cargo to be transported;(4) the kind and weight of each commodity to be transported;(5) the maximum weight and dimensions of the proposed vehicle combination, including number of tires on each axle, tire size for each axle, distance between each axle measured from center of axle to center of axle, and the specific weight of each individual axle when loaded;(6) the route the carrier will travel on roads designated by Transportation Code, §623.219(b-1); and(7) the date or dates on which movement is requested.(b) Permit form and contents. A permit issued under this subchapter must be in a form approved by the department and at a minimum must include all information required under Transportation Code, §623.215(a) and §623.216.</content><note type="source"><p>Source Note: The provisions of this §28.124 adopted to be effective April 20, 2023, 48 TexReg 1971.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scJ/s28.125"><num value="28.125">§28.125</num><heading>Permit Weight Limits for Axles</heading><content>(a) Minimum axle group spacing. For an axle group to be permitted for maximum weight authorized under this section:(1) an axle group must have a minimum spacing of four feet, measured from center of axle to center of axle, between each axle in the group; and(2) two or more consecutive axle groups must have a minimum axle spacing of 12 feet, measured from center of the last axle of a group to center of the first axle of the immediately following group.(b) Maximum permit weight. Maximum permit weight for an axle or axle group is the weight computed by multiplying 650 pounds times the total number of inches of the width of tires on the axle or group or the following applicable axle or axle group weight, whichever is less:(1) single axle - 25,000 pounds;(2) two-axle group - 46,000 pounds;(3) three-axle group - 60,000 pounds;(4) four-axle group - 70,000 pounds;(5) five-axle group - 81,400 pounds; or(6) trunnion axles - 60,000 pounds if:(A) the trunnion configuration has two axles;(B) there are a total of 16 tires for the trunnion configuration; and(C) the trunnion axle, as shown in the following diagram, is 10 feet in width.Attached Graphic(c) Tire load rating. A permit issued under this subchapter does not authorize the vehicle to exceed manufacturer's tire load rating.(d) Permits for vehicles exceeding permit weight limits. For a vehicle exceeding weight limits provided in this section, a person must apply directly to the Texas Department of Motor Vehicles for an oversize or overweight permit in accordance with Transportation Code, Chapter 623.</content><note type="source"><p>Source Note: The provisions of this §28.125 adopted to be effective April 20, 2023, 48 TexReg 1971.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scJ/s28.126"><num value="28.126">§28.126</num><heading>Movement Requirements and Restrictions</heading><content>(a) Carrying of permit. The original permit issued by the Authority must be carried in the permitted vehicle.(b) Prohibition on movement with void permit. A permittee is prohibited from transporting an oversize or overweight load with a void permit. A permit is void if the applicant gives false or incorrect information. A permit becomes void when the permittee fails to comply with the restrictions or conditions stated in the permit or when the permittee changes or alters the information in the permit.(c) Weather conditions or road work. Movement of a permitted vehicle is prohibited when:(1) visibility is reduced to less than 2/10 of one mile;(2) the road surface is hazardous due to weather conditions, such as rain, ice, sleet, or snow; or(3) highway maintenance or construction work is being performed.(d) Daylight and night movement restrictions. An oversize permitted vehicle may be moved only during daylight hours. A permitted vehicle that is overweight but not oversize may be moved at any time.(e) Weight ticket requirement. Any vehicle issued a permit by the Authority must be weighed on scales that are capable of determining gross vehicle weights and individual axle loads and are certified by the Texas Department of Agriculture or accepted by the United Mexican States.(f) Speed. The maximum speed for a permitted vehicle is set by Transportation Code, §623.217.</content><note type="source"><p>Source Note: The provisions of this §28.126 adopted to be effective April 20, 2023, 48 TexReg 1971.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c28/scJ/s28.127"><num value="28.127">§28.127</num><heading>Records</heading><content>The Authority shall maintain records that evidence compliance with this subchapter. Those records are subject to audit by department personnel.</content><note type="source"><p>Source Note: The provisions of this §28.127 adopted to be effective April 20, 2023, 48 TexReg 1971.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p1/c29"><num value="29">CHAPTER 29</num><heading>MAINTENANCE</heading><subchapter identifier="/us/state/tx/tac/t43/p1/c29/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL</heading><section identifier="/us/state/tx/tac/t43/p1/c29/scA/s29.2"><num value="29.2">§29.2</num><heading>Removal and Storage of Personal Property</heading><content>(a) Purpose. Transportation Code, §§472.011-472.014, authorize the Texas Department of Transportation to remove and dispose of spilled cargo or other personal property on state rights of way or a portion of the roadway of the state highway system. This section prescribes the requirements and procedures for the removal of spilled cargo or other personal property from the highway system.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Department - The Texas Department of Transportation.(2) District - One of the 25 geographical areas managed by a district engineer, in which the department conducts its primary work activities.(3) Hazardous material - Material as defined by the Hazardous Material Transportation Act (49 U.S.C. §5102).(4) Hazardous substance - Material as defined by the Texas Hazardous Substances Spill Prevention and Control Act (Water Code, §26.263).(5) Personal property - Property of any kind or character that comes to rest within state right of way or a portion of the roadway of the state highway system, including:(A) a vehicle;(B) spilled cargo;(C) a hazardous material; and(D) a hazardous substance.(6) Vehicle - A device in or by which a person or property is or may be transported or drawn on a public highway, other than a device used exclusively on stationary rails or tracks.(c) General conditions warranting removal of personal property.(1) The department may, without the consent of the owner or carrier, remove personal property from the state's right of way if the department considers this cargo or property to be blocking the roadway or endangering public safety.(2) For each occurrence, the department will determine whether the removal of the personal property is warranted based on the following considerations:(A) the safety of department employees;(B) the safety of the public;(C) the operation of the highway facilities;(D) the protection of the state investment;(E) the availability of resources for removal operations; and(F) the availability of storage space at a department facility.(3) If the department determines that removal is necessary, it will remove the property with as much care as is practical under the existing conditions.(4) The department will remove property that it believes is a hazardous material or a hazardous substance in compliance with Government Code, §411.018, and the Texas Hazardous Substances Spill Prevention and Control Act, Water Code, Chapter 26, subchapter G.(5) The department and its employees do not assume responsibility for damage to the property resulting from removal.(d) Notification of property owner.(1) The department, through its local districts, will attempt to contact the owner or carrier of the property through information obtained from the property or through inquiries from the owner or carrier.(2) If the department is unable to ascertain the identity of the property owner within 30 days of the removal, the department will dispose of the property in the manner the department deems most suitable.(e) Storage of Property.(1) Property other than vehicles.(A) Removal of property may include transportation to and/or storage of the property at a site other than the spill location.(B) The owner or carrier is responsible for the security of the property and the integrity of any perishable goods at all times.(C) The owner or carrier will claim and take possession of the property as soon as possible after its relocation from the spill site. The department may dispose of the property if the owner, after notification, fails to take possession within 10 days.(D) The owner or carrier is responsible for the costs of removal and disposing of the property. The department will bill the responsible party for all costs and the responsible party shall remit the costs to the department within 30 days of the date of billing. If the responsible party fails to remit all costs, the department may refer the matter to the Office of the Attorney General for collection.(2) Removal of vehicles.(A) The department will move a vehicle from the roadway or shoulder as necessary to prevent a disabled or damaged vehicle from blocking the roadway or endangering public safety. In some circumstances, this may require the department to move, or arrange to move, a vehicle to a location away from the original site.(B) The vehicle owner will be responsible for all costs associated with the removal and storage of a vehicle.</content><note type="source"><p>Source Note: The provisions of this §29.2 adopted to be effective November 21, 1999, 24 TexReg 10144.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c29/scA/s29.3"><num value="29.3">§29.3</num><heading>Local Government Assistance</heading><content>(a) Purpose.(1) Transportation Code, §201.706, requires the department to assist counties with materials to repair and maintain county roads. Section 201.706 also requires the department to develop rules and procedures to implement the section and to provide for the distribution of the assistance with preference given to counties with an above average number of overweight trucks receiving weight tolerance permits based on the previous year's permit totals.(2) Rider 43 to the department's appropriations for fiscal years 1998-1999 requires the department to assist cities and counties with the maintenance of city streets and county roads by providing engineering/maintenance expertise on roadway maintenance and to provide available surplus materials to any local government.(3) This section prescribes the policies and procedures for implementation of these two legal requirements.(b) Definitions.(1) City--Any municipality incorporated under the laws of the state.(2) City street--A public street under the jurisdiction of a city.(3) Cost of materials--Statewide average cost, actual cost, or fair market value of roadway maintenance material available to counties, such cost to include indirect costs in an amount prescribed by the department's Indirect Cost Recovery Program and the department's cost to administer the program.(4) County--One of the 254 geographical political subdivisions of the state.(5) County road--A public road under the jurisdiction of a county.(6) Department--The Texas Department of Transportation.(7) District--A subdivision of the department responsible for the day-to-day operations of the department in a specific geographically defined area.(8) District engineer--The chief administrative officer of a district of the department.(9) Engineering/maintenance expertise--Assistance consisting of providing existing department standards, specifications, or oral advice to cities or counties for use in roadway maintenance.(10) Materials on hand--Roadway maintenance materials previously acquired by the department which are currently in department stock accounts.(11) Surplus materials--Material on hand that the district engineer deems to be in excess of the district's need.(12) Weight tolerance permits--A permit issued by the department under Transportation Code, §623.011, authorizing a vehicle to exceed maximum legal weight limitations.(c) Distribution of assistance.(1) Distribution of materials under Transportation Code, §201.706. Distributed materials may include surplus materials on hand or new materials. New materials will be made available when surplus materials on hand are not sufficient to meet the required annual value. The value of assistance to counties as required by Transportation Code, §201.706, will be allotted to districts as follows.(A) 20% of the assistance will be based on the daily vehicle miles on county roads in a county divided by the total vehicle miles on county roads in the state.(B) 15% of the assistance will be based on the number of lane miles of county roads in a county divided by the total lane miles of county roads in the state.(C) 65% of the assistance will be based on the number of weight tolerance permits issued for a county divided by the total number of weight tolerance permits issued in the state.(2) Distribution of assistance and material under Rider 43.(A) Engineering/maintenance expertise will be provided to cities and counties upon written request from the local government.(B) Material determined by the district engineer as surplus will be given to a local government upon request after the department has complied with the requirements of Transportation Code, §201.706.(d) Application for assistance.(1) Materials allocated under Transportation Code, §201.706.(A) At the beginning of the fiscal year, or as soon as practical thereafter, each district engineer of the department shall notify each county in the district engineer's district of the assistance available to the county and provide a list of materials on hand, such list to include the cost of materials.(B) Each county shall be requested to make a written request, within 45 days of the notification, to the local district engineer for assistance with materials in accordance with the requirements. Such requests shall be prioritized by the county.(C) After the requested assistance to each county is determined for a fiscal year, any remaining unused fiscal year district allotment will be distributed based on need as determined by an engineering analysis.(D) A county that receives assistance shall be responsible for the hauling of the department's material on hand from the site of storage unless otherwise approved by the department. If material is hauled by the department, the material price shall be increased by the cost of the haul.(2) Assistance under Rider 43. Engineering/maintenance expertise shall be available to any city or county requesting such assistance. Materials shall be made available upon request, consistent with subsection (c)(2)(B) of this section.</content><note type="source"><p>Source Note: The provisions of this §29.3 adopted to be effective February 19, 1998, 23 TexReg 1332.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c29/scA/s29.4"><num value="29.4">§29.4</num><heading>Joint Use of Highway Right of Way</heading><content>(a) The public use of specified areas beneath overhead structures or certain other areas of right of way will be considered by the department when local governmental authorities or other state or federal agencies indicate a willingness to cooperate in the development of the same. Each proposed instance of joint use will be considered on its individual merits and the respective responsibilities of the department and other parties involved shall be fixed by agreement.(b) Department approval for the joint use of highway right of way may be given only when it is considered to be in the public's interest and it has been determined from engineering and traffic investigations that it would not damage the highway facilities, impair safety, impede highway maintenance, or in any way restrict the operation of the freeway or highway facility.</content><note type="source"><p>Source Note: The provisions of this §29.4 adopted to be effective November 21, 1999, 24 TexReg 10145.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c29/scA/s29.5"><num value="29.5">§29.5</num><heading>Maintenance of Designated Highways in Incorporated Cities, Towns, or Villages</heading><content>(a) The department, when and if requested by the proper governing officials of an incorporated city, town, or village, may maintain highway routes, as may now or hereinafter be officially designated on the state highway system by the Texas Transportation Commission, in such incorporated cities, towns, or villages; provided, all items that affect property rights, life, health, etc., of adjacent property owners and dwellers within the limits of the incorporated cities, towns, or villages shall remain a function and responsibility of the incorporated cities, towns, or villages.(b) The department's maintenance duties on noncontrolled access highways on the state highway system, except for special highway routes which have unusual conditions or historically significant features where it would be in the state's best interest to allow or require the incorporated city, town, or village to maintain, shall include the following:(1) the traveled surface and foundation beneath such traveled surface necessary for the proper support of same under vehicular loads encountered;(2) assistance in mowing and litter pickup;(3) assistance in sweeping and otherwise cleaning the pavement;(4) assistance in snow and ice control;(5) normal markings and signs necessary for directing highway traffic in a safe and efficient manner; and(6) drainage facilities within the limits of the right of way.(c) The department's maintenance duties on controlled access highways on the state highway system shall include the following:(1) the traveled surface of the through lanes, ramps, and frontage roads and foundation beneath such traveled surface necessary for the proper support of same under vehicular loads encountered;(2) mowing and litter pickup between frontage roads or the entire right of way where no frontage roads exist, and assistance in mowing and litter pickup between the frontage roads and the right of way;(3) sweeping and otherwise cleaning the through lanes and ramps, and assistance in sweeping and otherwise cleaning the frontage roads and separation structures or roadways;(4) snow and ice control on the through lanes and ramps, and assistance in snow and ice control on frontage roads and separation structures or roadways;(5) normal markings and signs necessary for directing highway traffic in a safe and efficient manner; and(6) drainage facilities within the limits of the right of way.</content><note type="source"><p>Source Note: The provisions of this §29.5 adopted to be effective November 21, 1999, 24 TexReg 10145.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c29/scA/s29.6"><num value="29.6">§29.6</num><heading>Signs on State Highway Right of Way</heading><content>(a) Purpose. Texas Transportation Code, Chapter 392, subchapter B, prohibits persons from erecting, placing, or maintaining a sign on the right of way of a highway designated as part of the state highway system unless authorized by state law. Subchapter B further authorizes the department to remove and dispose of unauthorized signs and to adopt rules for the enforcement of this subchapter. This section prescribes policies and procedures governing the removal and disposal of unauthorized signs.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Department - The Texas Department of Transportation.(2) Permanent sign - Any sign permanently affixed or attached to the ground or a structure, or which cannot be removed without special handling.(3) Reasonably ascertainable name and address - The name and mailing address of the owner are displayed on the sign, or a name is displayed on the sign from which the department can identify the name and address of the owner.(4) Sign - Any outdoor sign, display, light, device, figure, painting, drawing, message, plaque, poster, or other thing that is designed, intended, or used to advertise or inform.(c) Removal.(1) Immediate removal. Except as provided in paragraphs (2) and (3) of this subsection, the department may immediately and without prior notice remove a sign erected, placed, or maintained, in whole or in part, on state highway right of way if the sign is not authorized by state law or approved by the department.(2) Permanent signs. If the name and address of the owner of a permanent unauthorized sign is reasonably ascertainable, the department will notify the owner to remove the sign. If the owner does not remove the sign within 14 calendar days of the date notice is mailed, the department may remove the sign without further notice.(3) Regulated signs. If a sign authorized under Texas Transportation Code, Chapter 391, subchapters B and C, and Chapter 394, encroaches on state highway right of way, the department will notify the owner of the sign of the encroachment and request that the encroachment be remedied. If the owner does not remedy the encroachment within 31 calendar days of the date notice is mailed, the department will remove the portion of the sign that is in the right of way.(4) Sign storage. Removed signs will be stored at a department maintenance office pending disposal.(d) Disposal.(1) The department may dispose of a sign removed under this section unless the sign is claimed by the owner not later than the 10th day after the date of removal or the date notice is mailed under paragraph (2) of this subsection, whichever date is later.(2) If the name and address of the owner is reasonably ascertainable, the department will, within three working days of the date of removal, forward written notice by certified mail to the owner of the sign stating that the sign has been removed and will be disposed of by the department after the 10th day from the date of the letter unless claimed by the owner.(e) Removal costs.(1) The department will notify the owner of a sign removed under this section of the removal costs, and the owner shall remit the costs to the department within 30 days of the date of the notice. If the owner fails to remit all costs, the department may refer the matter to the Office of the Attorney General for collection.(2) Removal costs will be determined as follows.(A) The costs of removing a nonpermanent unauthorized sign will be the average cost for removing an unauthorized nonpermanent sign in the district in which the sign is located.(B) The costs for removing a permanent unauthorized sign will be the average cost per square foot for removing an unauthorized permanent sign in the district in which the sign is located.</content><note type="source"><p>Source Note: The provisions of this §29.6 adopted to be effective November 21, 1999, 24 TexReg 10145.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c29/scC"><num value="C">SUBCHAPTER C</num><heading>OPERATION OF STATE-OWNED FERRIES</heading><section identifier="/us/state/tx/tac/t43/p1/c29/scC/s29.41"><num value="29.41">§29.41</num><heading>Purpose</heading><content>Transportation Code, §342.001, authorizes the Texas Department of Transportation to operate one or more ferries connecting designated state highways. The purpose of this subchapter is to set forth the policies and procedures governing the operation of a state-owned ferry.</content><note type="source"><p>Source Note: The provisions of this §29.41 adopted to be effective November 21, 1999, 24 TexReg 10145.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c29/scC/s29.42"><num value="29.42">§29.42</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) CFR - The parts of the United States Code of Federal Regulations officially adopted for applicability to this subchapter in §29.43 of this title (relating to Adoption of Federal Regulations).(2) Department - The Texas Department of Transportation.(3) District - One of the 25 geographical areas, managed by a district engineer, in which the department conducts its primary work activities.(4) District engineer - The chief administrative officer in charge of a district of the department.(5) Ferry - A state-owned passenger or cargo vessel.(6) Ferry captain - An employee of the department who is in charge of operating a ferry.(7) Ferry operations manager - The chief administrative officer of one of the department's ferry systems located in either Galveston or Nueces County.(8) Hazardous materials table - The table found in the CFR, which lists various hazardous materials, their hazard class, and the risks associated with the material.(9) Humanitarian purposes - Circumstances warranting special consideration for priority boarding, including, but not limited to, family emergencies, assisting in a law enforcement matter, public safety, and the safeguarding of life or property.(10) Passenger - A person aboard a ferry other than the ferry captain, a member of the ferry's crew, or other representative of the department.(11) Passenger cab - The interior cabin of a vehicle containing seating for one or more occupants of the vehicle. This term does not mean the bed of a vehicle.(12) Public highway - Any publicly owned and maintained street, road, or highway within Texas.(13) Vehicle - Every device, including, but not limited to, automobiles, trucks, tractors, trailers, semitrailers, buses, motor homes, recreational vehicles, motorcycles, bicycles, in or by which any person or property is or may be transported, drawn, or otherwise carried upon a public highway, except devices used exclusively upon stationary rail or tracks. The term includes any item attached, affixed, or connected to the vehicle in any manner.</content><note type="source"><p>Source Note: The provisions of this §29.42 adopted to be effective November 21, 1999, 24 TexReg 10145.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c29/scC/s29.43"><num value="29.43">§29.43</num><heading>Adoption of Federal Regulations</heading><content>(a) With the exception of the sections listed in subsection (b) of this section, Title 49, United States Code of Federal Regulations, Parts 171, 172, 173, 176, 177, and 178 of Chapter 1, subchapter C-Hazardous Materials Regulations, are officially adopted by the department by reference for applicability to this subchapter.(b) The following sections of Title 49, Chapter 1, subchapter C are not adopted:(1) §171.11;(2) §173.10;(3) §173.27;(4) §173.31;(5) §173.314;(6) §173.319;(7) §176, Subpart F; and(8) §177.810.</content><note type="source"><p>Source Note: The provisions of this §29.43 adopted to be effective November 21, 1999, 24 TexReg 10145.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c29/scC/s29.44"><num value="29.44">§29.44</num><heading>Classification of Ferries</heading><content>Ferries operated by the department are classified and operate as passenger vessels. In a local, state, or national emergency, or at such other time as may be required to accommodate or facilitate department needs, the department may change the classification of one or more of its ferries from passenger vessel to cargo vessel to allow the carriage of a hazardous material that would not be permitted aboard a ferry classified as a passenger vessel. Before changing the classification of a ferry operating as a passenger vessel to a cargo vessel, the department will obtain the permission of the local United States Coast Guard Marine Inspection Office.</content><note type="source"><p>Source Note: The provisions of this §29.44 adopted to be effective November 21, 1999, 24 TexReg 10145.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c29/scC/s29.45"><num value="29.45">§29.45</num><heading>Ferry Service Schedule</heading><content>Ferry operations will be scheduled to take care of the needs of the traveling public insofar as is safe and practicable, as determined by the ferry operations manager, and subject to the approval of the district engineer.</content><note type="source"><p>Source Note: The provisions of this §29.45 adopted to be effective November 21, 1999, 24 TexReg 10145.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c29/scC/s29.46"><num value="29.46">§29.46</num><heading>Authority of the Ferry Captain</heading><content>(a) All instructions and warnings given by the ferry captain or the ferry captain's representative shall at all times be immediately observed and complied with by:(1) persons in a ferry staging area or ferry landing; and(2) passengers.(b) All traffic lights and signs shall be obeyed unless directed otherwise by the ferry captain, the ferry captain's representative, or by law enforcement officers.(c) The authority and decisions of the ferry captain, including the decision making authority delegated by the ferry captain to one or more representatives, is final in all areas of operation of the ferry, including, but not limited to, the ferry staging areas, ferry landings, the ferry, and the voyage.(d) Before leaving the ferry staging area, the ferry captain shall have the authority to order the removal of any and all passengers, vehicles, equipment, animals, or any other property from the ferry if it is necessary to ensure public health, safety, or welfare, or to preserve department property.</content><note type="source"><p>Source Note: The provisions of this §29.46 adopted to be effective November 21, 1999, 24 TexReg 10145.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c29/scC/s29.47"><num value="29.47">§29.47</num><heading>Boarding of Vehicles</heading><content>(a) No vehicle shall be operated on department property, including, but not limited to, the ferry staging areas, ferry landings, ferry public parking areas, or aboard a ferry, in a negligent or reckless manner.(b) The person driving a vehicle onto a ferry shall:(1) drive the vehicle to the location as indicated by the ferry captain or the captain's representative;(2) securely set the parking brake of the vehicle;(3) shut off the vehicle's motor and not restart the vehicle's motor until the ferry has reached the designated destination and the ferry is securely docked, and the ferry captain is instructing passengers to disembark;(4) shut off all flames and any motorized mechanism or equipment, such as refrigerating or heating equipment, on or connected in any manner to the vehicle if determined by the ferry captain or by the captain's representative to be unsafe;(5) observe at all times any instructions given by the ferry captain or the captain's representative, while driving onto the ferry, while aboard the ferry, and while driving off the ferry after the ferry has reached the designated destination and is securely docked;(6) make no repairs to the vehicle aboard the ferry; and(7) remain with or near the vehicle while the vehicle is at the ferry staging area, aboard the ferry, or at the ferry landing.</content><note type="source"><p>Source Note: The provisions of this §29.47 adopted to be effective November 21, 1999, 24 TexReg 10145.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c29/scC/s29.48"><num value="29.48">§29.48</num><heading>Boarding Priorities</heading><content>(a) Priority boarding for vehicles is divided into three categories as follows: priority boarding for special situations, priority boarding by annual permit, and priority boarding for humanitarian purposes.(1) Special situation boarding is for the following vehicles, in no specific order of priority. These vehicles shall have priority boarding over all other vehicles in boarding a ferry:(A) ambulances when transporting sick or injured persons, or when responding to or returning from medical emergencies;(B) other vehicles transporting sick or injured persons;(C) fire department vehicles when responding to or returning from fire or medical emergencies;(D) medical doctors who are en route for the emergency care of the sick or injured;(E) law enforcement officers when engaged in the performance of an official duty;(F) U.S. Coast Guard vehicles when responding to or returning from marine emergencies;(G) school buses when going to or returning from school functions;(H) funeral processions; and(I) public transportation vehicles carrying six or more passengers.(2) Priority boarding for vehicles by annual permit shall meet the following conditions.(A) No more than 50% of the ferry capacity will be allocated to priority boarding by annual permit during high demand periods.(B) The fee for an annual permit for the Galveston/Bolivar or Port Aransas ferry is:(i) $250 for a two-axle vehicle, including a motorcycle, car, pickup truck, or van;(ii) $500 for a bus, motor home, or a single unit truck with up to three axles; and(iii) $1,000 for a multi-unit truck or other vehicle with more than three axles.(C) If the applicant purchases more than one annual permit, the subsequent permits for each additional two-axle vehicle registered to the same address as another vehicle with an unexpired annual permit are $150 each.(D) An annual permit expires 12 months after issuance.(E) An application for an annual permit shall be submitted by the vehicle owner on a form prescribed by the department, which shall at a minimum include the vehicle license plate number, state of registration, name of applicant, and mailing address. The application will state acceptable methods of payment.(F) The department will not issue priority boarding stickers for a ferry location until it has received approximately 500 applications for that location.(G) A priority boarding sticker will be issued to each applicant upon payment of the permit fee.(H) The sticker issued for the permit shall be placed near the upper left corner of the front windshield.(3) The ferry captain or ferry operations manager may, at his or her sole discretion, allow a vehicle priority over all other vehicles for humanitarian purposes. Scheduled routine doctor's office visits are not considered to be sufficient reason for granting priority boarding for humanitarian purposes.(b) Vehicles that do not qualify for priority boarding under subsection (a) of this section shall be boarded in order of arrival after priority boarding is completed.</content><note type="source"><p>Source Note: The provisions of this §29.48 adopted to be effective March 16, 2006, 31 TexReg 1730.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c29/scC/s29.49"><num value="29.49">§29.49</num><heading>Boarding Prohibitions</heading><content>(a) Final authority. The ferry captain is the final decision-maker as to whether a person or item of property is classified as a type of traffic prohibited from boarding a ferry.(b) Animal assisting disabled passenger. Nothing in this section is intended to prohibit an animal trained in assisting a disabled person from boarding a ferry when the animal is engaged in assisting a passenger with a disability.(c) Persons and vehicles prohibited. The following persons and vehicles are prohibited from boarding a ferry:(1) a vehicle or a person carrying any material that according to the CFR or this subchapter is prohibited aboard;(2) a vehicle exceeding the maximum size or weight allowable on a public highway as provided by Transportation Code, Chapter 621;(3) a vehicle with one or more persons lying, reclining, standing, or in any other manner riding, in part or in whole, on the outside of a vehicle's passenger cab or a vehicle's truck bed;(4) a vehicle having one or more flat tires, excluding bicycles;(5) a vehicle which is stalled or a vehicle with an inoperable motor, excluding vehicles properly in tow as required by this section;(6) a driver of a vehicle who exhibits one or more characteristics of intoxication or one or more characteristics of being under the influence of any chemical substance;(7) a vehicle with one or more metal tires;(8) a vehicle carrying an animal which is not completely confined so as to create, or have the potential of creating, in the opinion of the ferry captain, an unsafe or unsanitary condition aboard the ferry;(9) a vehicle with inoperable or inadequate brakes, lights, signals, or horns;(10) a vehicle with a leaking fuel tank or with any type of leaking fluid reservoir or leaky spigot;(11) a vehicle or any other type of property having any type of metal surface which, in the opinion of the ferry captain, may come in contact with the deck of the ferry;(12) a vehicle drawn, powered, or otherwise operated by an animal;(13) double-decked buses having a noncovered upper deck with passengers on the top deck;(14) a vehicle which, in the opinion of the ferry captain, is emitting an excessive amount of smoke, gases, or fumes, or is giving off an excessive amount of foul odor, thereby creating or having the potential of creating an unsafe, unhealthy, or intolerable environment;(15) a vehicle whose load, in the opinion of the ferry captain, is inadequately or improperly secured or covered in a manner where it appears that any part of the load may fall off of the vehicle, thereby creating or having the potential of creating an unsafe condition;(16) a vehicle whose load projects, appears to project, or has the potential of projecting, in the opinion of the ferry captain, in such manner as to be a safety hazard or have the potential of being a safety hazard;(17) a vehicle being towed by any device, method, or means other than by a tow bar, wrecker, tow truck, or winch truck; and(18) any person, vehicle, equipment, machinery, animal, or property of any kind which the ferry captain believes to constitute a hazard or a potential hazard to the safe operation of the ferry.(d) Hazardous materials.(1) A ferry, whether operating as a passenger vessel or as a cargo vessel, may not carry on board any hazardous material unless the transportation of the hazardous material aboard the ferry is in accordance with the CFR.(2) A vehicle used for the transportation of hazardous material, or which at anytime has been used for the transportation of hazardous material, may not board the ferry unless the vehicle complies with all federal and state laws and rules.(3) Any vehicle that the department believes may be carrying or has carried any hazardous material will be subject to inspection at the ferry staging area. The inspection may consist of the department inspecting the shipper's shipping papers. If any inconsistencies are observed such as expired dates on shipping papers, shipping papers that do not agree with placards, or the type of trailer does not appear to be appropriate to transport the material indicated in the shipping papers, the inspection may additionally include the department inspecting the vehicle and its load. If the driver of the vehicle refuses to grant permission to inspect the shipping papers, the vehicle, or its load, the driver shall immediately remove the vehicle from department property, including the ferry staging area. All shipping papers shall be accurate and complete and shall comply in every respect with federal and state laws and rules. Allowing an inspection of shipping papers or the conducting of an inspection does not guarantee or create any right to board the vessel. If the inspection of the shipping papers, the vehicle, or the vehicle's load reveals that the shipment of the hazardous material is not in compliance with federal and state laws and rules, the vehicle will not be permitted aboard the ferry.(4) All containers of every kind, size, and type shall be in good working condition so as to securely hold, contain, prevent the movement of, and otherwise enclose a hazardous material, thereby ensuring that the material will not leak, spill, spew, overflow, or otherwise empty or escape from the respective container while the material is on department property, including, but not limited to, the ferry staging areas, ferry landings, and the ferry, and all containers shall comply with all federal and state laws and rules regarding hazardous materials.(5) In accordance with the hazardous material restrictions provided by the CFR, the following materials will not be permitted aboard ferries classified as passenger vessels:(A) any hazardous material identified as "forbidden" in Column 3 of the Hazardous Material Table;(B) any hazardous material identified by the LETTERS B, D AND E in Column 10(a) of the Hazardous Material Table;(C) any hazardous material which requires special handling, separation, or segregation from other materials, or other stowage requirements due to health risks or violent reactions of the material when in contact with water or other incompatible materials, as specified in the CFR;(D) any hazardous material identified in the CFR as being in one of the following hazard classes:(i) class 1 explosive materials;(ii) class 2 compressed gases, including flammable gases and poisonous gases;(iii) class 3 flammable liquids with a flash point below 100 degrees Fahrenheit;(iv) class 4 flammable solids;(v) class 5 oxidizers and organic peroxides;(vi) class 6 poisonous materials and etiologic agents;(vii) class 7 radioactive materials;(viii) class 8 corrosive materials;(ix) new explosives as defined by the CFR;(x) liquefied petroleum gas or compressed natural gas, except when contained in a vehicle as the vehicle's source of fuel;(xi) asphaltic cements, heavy residual fuel oils, and other similar products which are transported at a temperature greater than 200 degrees Fahrenheit; and(xii) emulsified asphalts which are transported at a temperature greater than 200 degrees Fahrenheit.(e) Other materials.(1) The shipper of a material that is not listed in the CFR or this subchapter, but is derived in whole or in part from a hazardous material listed on the Hazardous Material Table, shall provide the ferry operations manager with a notice including a detailed description of the quantity and the characteristics of the material which the shipper desires to board onto a ferry.(2) The notice shall also state:(A) how the material will be packaged;(B) the description of the vehicle carrying the material;(C) the estimated date and time of arrival at the ferry staging area; and(D) the location of the ferry staging area where the vehicle will be arriving.(3) The department must receive the notice not less than two business days before arrival at the ferry staging area.(4) The material will not be allowed aboard the ferry if notice is not given.(5) Providing the required notice does not guarantee or create any right to board the material.(6) The shipper shall comply with all federal and state laws and rules.(7) The department may at any time refuse to board the material if the ferry operations manager or the ferry captain believes that refusal is necessary to protect the public health, safety, or welfare, or department property. In no circumstance may the vehicle or the material board a ferry if boarding would be contrary to the CFR or this subchapter.</content><note type="source"><p>Source Note: The provisions of this §29.49 adopted to be effective November 21, 1999, 24 TexReg 10145.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c29/scC/s29.50"><num value="29.50">§29.50</num><heading>Safety Regulations</heading><content>The following activities are prohibited:(1) smoking on the ferries;(2) peddling, or selling papers, or other items on the ferries or within 1000 feet of the ferry landings; and(3) loitering or hitchhiking.</content><note type="source"><p>Source Note: The provisions of this §29.50 adopted to be effective November 21, 1999, 24 TexReg 10145.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p1/c30"><num value="30">CHAPTER 30</num><heading>AVIATION</heading><subchapter identifier="/us/state/tx/tac/t43/p1/c30/scC"><num value="C">SUBCHAPTER C</num><heading>AVIATION FACILITIES DEVELOPMENT AND FINANCIAL ASSISTANCE RULES</heading><section identifier="/us/state/tx/tac/t43/p1/c30/scC/s30.201"><num value="30.201">§30.201</num><heading>Purpose of Rules</heading><content>The purpose of this subchapter is to set forth in a clear and concise manner the procedures, guidelines, and standards utilized to administer the Texas Aviation Facilities Development and Financial Assistance Program. This subchapter shall be construed liberally, with a view toward the purpose for which it was adopted.</content><note type="source"><p>Source Note: The provisions of this §30.201 adopted to be effective September 27, 1990, 15 TexReg 5366; transferred effective September 1, 1993, as published in the Texas Register August 27, 1993, 18 TexReg 5768; amended to be effective May 24, 1995, 20 TexReg 3575.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c30/scC/s30.202"><num value="30.202">§30.202</num><heading>Scope of the Rules</heading><content>This subchapter shall apply to all requests for federal financial assistance for nonreliever general aviation airports and for state financial assistance for the construction, enlargement, repair, or planning of airports or air navigational facilities. This subchapter shall not be construed or interpreted so as to abridge, enlarge, modify, or otherwise change the authority of the Texas Transportation Commission or the substantive rights of any person.</content><note type="source"><p>Source Note: The provisions of this §30.202 adopted to be effective September 27, 1990, 15 TexReg 5366; transferred effective September 1, 1993, as published in the Texas Register August 27, 1993, 18 TexReg 5768; amended to be effective May 24, 1995, 20 TexReg 3575.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c30/scC/s30.203"><num value="30.203">§30.203</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Airport--An area of land that is designated for the landing and takeoff of aircraft.(2) Airport hazard--Any structure, flora, or use of land which obstructs the airspace required for the flight of aircraft in landing or takeoff at any airport or is otherwise hazardous to such landing or takeoff of aircraft. For further definition, see the Local Government Code, §§241.001 et seq.(3) Airport Project Participation Agreement--An intergovernmental agreement between the department and the sponsor which grants financial assistance.(4) Aviation Advisory Committee--The committee appointed under Transportation Code, §21.003.(5) Aviation Facilities Capital Improvement Program (CIP)--A multi-year capital improvement program, prepared by the division and approved by the commission which identifies projects to be considered for financial assistance.(6) Commission--The Texas Transportation Commission.(7) Department--The Texas Department of Transportation.(8) Director--The director of the Aviation Division of the Texas Department of Transportation.(9) Division--The aviation division of the Texas Department of Transportation.(10) Emergency--A situation or condition at a general aviation airport which requires immediate attention due to an existing unsafe condition. The condition should be of sufficient concern to require the filing of a Notice to Airman with the Federal Aviation Administration under FAA Order 7930.2E until the safety concern has been resolved.(11) Executive director--The executive director of the Texas Department of Transportation.(12) Grant--An offer of financial assistance of state and/or federal funds to improve, repair, upgrade, or add to an airport included in the Texas Airport System Plan. A grant with federal funds requires a match of 10% from state and/or local funds. A grant with state funds must be matched with at least 10% local funds.(13) Hazard zoning--Zoning pursuant to the provisions of the Local Government Code, §§241.001 et seq., for the purpose of protecting the aerial approaches to an airport.(14) Intergovernmental Agreement--A formal written agreement between the sponsor and the division, specifying the duties and obligations of the department and the sponsor, and the terms and conditions of a grant of state and/or financial assistance. The department issues two aviation intergovernmental agreements titled Airport Project Participation Agreement and Loan Agreement.(15) Letter of Intent--The sponsor's formal commitment to proceed with an airport improvement project, signed by the chief elected official, including a description and cost estimate of the project, and accompanied by a resolution adopted by the sponsor's governing body indicating the sponsor's willingness to participate in the local share of project costs.(16) Letter of interest--A preliminary statement submitted by a sponsor to indicate the sponsor's desire to be included in the program and to provide a basis for programming available funds.(17) Loan--An intergovernmental agreement between the department and a sponsor which provides state financial assistance to be repaid to the department at a specific interest rate and over a specific time period.(18) Local funds--Cash, in-kind contributions, or force account work remitted by a local airport sponsor as its share of project costs for an airport development project.(19) Program--The Texas Aviation Facilities Development Program, which includes the administration of federal Airport Improvement Program grants to general aviation airports, and state grants and loans.(20) Project--Design and construction of improvements to, or planning of an airport or air navigational facility as part of the program.(21) Sponsor--Any eligible state agency or governmental entity seeking state or federal aid under the program.(22) Staff--Employees of the aviation division of the Texas Department of Transportation.</content><note type="source"><p>Source Note: The provisions of this §30.203 adopted to be effective September 27, 1990, 15 TexReg 5366; transferred effective September 1, 1993, as published in the Texas Register August 27, 1993, 18 TexReg 5768; amended to be effective May 24, 1995, 20 TexReg 3575; amended to be effective February 21, 1996, 21 TexReg 979; amended to be effective March 15, 2017, 42 TexReg 1153.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c30/scC/s30.204"><num value="30.204">§30.204</num><heading>Facilities Development Program</heading><content>(a) As required by Transportation Code, §§21.106, 21.107, and 21.109, the staff, with aviation advisory committee advice, shall prepare and present for the commission's adoption:(1) an Aviation Facilities Development Program, namely, the Texas Airport System Plan (TASP), identifying the aviation facilities requirements, locations, timing, eligibility for funding, and the investment necessary for a statewide airport system that, for the least practicable cost, will provide for the state's air transportation needs;(2) a method for determining priorities among locations and projects eligible to receive financial assistance; and(3) annually, a multi-year CIP identifying projects to be considered for financial assistance.(b) The division will periodically review the programs and priorities required by subsection (a)(1) - (3) of this section to determine the need for their revision. The multi-year CIP shall be the basis for allocation of financial assistance.</content><note type="source"><p>Source Note: The provisions of this §30.204 adopted to be effective September 27, 1990, 15 TexReg 5366; transferred effective September 1, 1993, as published in the Texas Register August 27, 1993, 18 TexReg 5768; amended to be effective May 24, 1995, 20 TexReg 3575; amended to be effective March 15, 2017, 42 TexReg 1153.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c30/scC/s30.205"><num value="30.205">§30.205</num><heading>Eligibility for Financial Assistance</heading><content>(a) Political subdivisions. Any city, town, county, community, or other governmental entity in the State of Texas is eligible to be included in the Texas Airport System Plan for financial assistance. Eligibility for federal financial assistance shall be as determined by the Federal Aviation Administration.(b) State agencies. Texas state agencies with governing boards authorized to operate airports are also eligible for state financial aid under the program. Eligibility for federal financial assistance shall be as determined by the Federal Aviation Administration.(c) Texas Airport System Plan airports. Only projects at airports included in the Texas Airport System Plan, as adopted and amended by the commission, shall be eligible for state financial assistance under Transportation Code, Chapter 21, Subchapter C.(d) Hazard zoning. No project may be considered for a grant or loan where the sponsor has not adopted and enforced airport hazard zoning for the airport in a form acceptable to the division. Upon showing of good cause, the director may recommend to the commission approval of a project, contingent upon the sponsor's adoption of acceptable hazard zoning.</content><note type="source"><p>Source Note: The provisions of this §30.205 adopted to be effective September 27, 1990, 15 TexReg 5366; transferred effective September 1, 1993, as published in the Texas Register August 27, 1993, 18 TexReg 5768; amended to be effective May 24, 1995, 20 TexReg 3575; amended to be effective March 15, 2017, 42 TexReg 1153.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c30/scC/s30.206"><num value="30.206">§30.206</num><heading>Amount of Grant or Loan</heading><content>(a) Grant. The commission may award a grant of up to 90% of the eligible project costs. If federal funds are used on the project, the commission may participate by funding up to 50% of the sponsor's share of the project costs eligible for federal funding. A sponsor's share shall be remitted in cash for planning and construction projects, unless an exception is granted by the director. If an exception is granted, the value of any eligible in-kind contributions, as shall be determined by the division, may be included as part of the sponsor's share. For property acquisition projects, the sponsor shall initially bear all costs of property acquisition and shall be reimbursed by state and/or federal funds in the appropriate granted percentages for the eligible approved costs after division approval of all necessary documentation provided by the sponsor. The director may grant an exception for property acquisition projects to allow cash remittance from the sponsor for the property acquisition costs.(b) Loans. The commission may make a loan of up to 90% of the cost of a project. All loans shall bear an interest rate of at least 3.0% per annum and have a term of not longer than 20 years. Loans shall be made in lieu of grants whenever feasible, and, in particular, in lieu of grants for revenue-producing improvements.(c) Amount. The amount of a grant or loan made by the state at one location may be limited by the commission.(d) Exceptions. The director may grant exceptions provided under subsection (a) of this section if he or she determines such action to be in the best interest of the state to ensure adequate local financial participation.</content><note type="source"><p>Source Note: The provisions of this §30.206 adopted to be effective September 27, 1990, 15 TexReg 5366; transferred effective September 1, 1993, as published in the Texas Register August 27, 1993, 18 TexReg 5768; amended to be effective May 24, 1995, 20 TexReg 3575.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c30/scC/s30.207"><num value="30.207">§30.207</num><heading>Letters of Intent</heading><content>Prior to the division's submission of a request for federal or state assistance to the commission, the sponsor shall submit a letter of intent. The letter of intent shall describe the project for which the assistance is being requested and the estimated cost of the project, if available. The letter of intent shall be accompanied by a duly executed resolution(s) of the governing body or bodies of the sponsor indicating the sponsor's interest in the project, the sponsor's intent to provide local funds to match state and/or federal assistance as required, and the name and position of the individual authorized to execute agreements and applications on behalf of the sponsor. The submission of a letter of intent neither insures inclusion of the proposed project in the program nor obligates the sponsor to perform any service or to expend any funds. A letter of intent may remain current for one state fiscal year after the state fiscal year in which the letter was originally submitted.</content><note type="source"><p>Source Note: The provisions of this §30.207 adopted to be effective September 27, 1990, 15 TexReg 5366; transferred effective September 1, 1993, as published in the Texas Register August 27, 1993, 18 TexReg 5768; amended to be effective May 24, 1995, 20 TexReg 3575.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c30/scC/s30.208"><num value="30.208">§30.208</num><heading>Evaluation of Requests for Financial Assistance</heading><content>(a) A sponsor may submit to the division a letter of interest indicating a desire to be included in the program. Upon receipt of the letter of interest, the staff shall initiate an investigation to evaluate all facts pertinent to the request. Based on the investigation, the staff shall recommend to the commission whether a project should be included in the CIP. That recommendation shall be based on:(1) the consistency of the project with the TASP;(2) the methodology adopted by the commission for determining project priority and eligibility;(3) the timing of the proposed project in relation to requests by other sponsors; and(4) the federal and state funding expected to be available for financial assistance.(b) The director will notify the sponsor of inclusion of the project in the CIP or the reason of denial of inclusion.(c) In the case of an emergency, the executive director or his or her designee may, without holding a public hearing in accordance with §30.209 of this title (relating to Approval of the Aviation Facilities Capital Improvement Program and Financial Assistance), award a loan or grant in accordance with this subsection.(1) The sponsor must submit a written request for emergency financial assistance to the division. The request must be accompanied by a copy of the Notice to Airman filed with the Federal Aviation Administration under FAA Order 7930.2E and a description of the needed repairs, including the estimated cost.(2) The division will evaluate the request and determine if funds are available to finance the repairs. The division will send its written recommendation to the executive director within three working days after receiving the completed notification.(3) If the executive director or his or her designee determines that the condition warrants immediate attention and the funds are available, he or she will certify in writing to the fact and nature of the emergency. If the executive director or his or her designee determines that the funds are not available or that the condition does not warrant immediate assistance, the division will notify the sponsor of the reasons for denial.(4) If the financial assistance is granted, the division will execute an Airport Project Participation Agreement with the sponsor within five days after certification in accordance with §30.210 of this title (relating to Intergovernmental Agreements) and §30.214 of this title (relating to Grant and Loan Agreement Payments).(5) The executive director will send a written report of the details of the emergency conditions and the award to the commission within five working days following the contract award.</content><note type="source"><p>Source Note: The provisions of this §30.208 adopted to be effective September 27, 1990, 15 TexReg 5366; transferred effective September 1, 1993, as published in the Texas Register August 27, 1993, 18 TexReg 5768; amended to be effective May 24, 1995, 20 TexReg 3575; amended to be effective February 21, 1996, 21 TexReg 979.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c30/scC/s30.209"><num value="30.209">§30.209</num><heading>Approval of the Aviation Facilities Capital Improvement Program and Financial Assistance</heading><content>(a) Annually, the division will present to the commission the CIP for approval of the biennial airport development program. Thereafter, as necessary, the division will submit additions and/or deletions to the CIP to the commission for approval.(b) As necessary when funds become available, the division will submit individual airport development projects from the approved CIP to the commission for financial assistance approval.(c) The commission or its authorized representative shall hold a public hearing at which all interested parties shall have an opportunity to address the projects under consideration by the commission for financial assistance. Presentations shall be as concise as possible. The hearing will be held in accordance with §1.5 of this title (relating to Public Hearings).(d) The commission shall approve financial assistance grants and loans based upon the CIP and in accordance with priorities established under §30.204(a)(2) of this title (relating to Facilities Development Program).(e) The commission shall approve all financial assistance grants and loans except as provided in §30.208(c) of this title (relating to Evaluation of Requests for Financial Assistance). After financial assistance has been approved by the commission, the staff shall prepare and present to each sponsor an intergovernmental agreement. In the case of a state or federal grant, an Airport Project Participation Agreement will be executed, or a loan agreement, in the case of a loan. The sponsor and the department shall execute the agreement within 180 days of approval by the commission. If the agreement is not executed within 180 days of approval by the commission, approval of financial assistance for the project may be rescinded by the commission. Upon a showing of good cause, the director may allow the sponsor additional time to execute the agreement.</content><note type="source"><p>Source Note: The provisions of this §30.209 adopted to be effective September 27, 1990, 15 TexReg 5366; transferred effective September 1, 1993, as published in the Texas Register August 27, 1993, 18 TexReg 5768; amended to be effective May 24, 1995, 20 TexReg 3575; amended to be effective February 21, 1996, 21 TexReg 979.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c30/scC/s30.210"><num value="30.210">§30.210</num><heading>Intergovernmental Agreements</heading><content>(a) Purpose. The purpose of an agreement between the sponsor and the department is to define the respective responsibilities of the sponsor and the department in implementing the project and to define the requirements, terms, conditions, type of funds, and considerations attendant upon each party to the agreement. Prior to the disbursement of any funds by the department, the sponsor shall execute the agreement in a manner provided by law for entering into binding contractual agreements.(b) Airport Project Participation Agreement (APPA). Except as provided in subsection (c) of this section, when the commission has approved a sponsor's request for financial assistance, the APPA:(1) shall name the department as agent for the purpose of applying for, receiving, and disbursing federal funds, if applicable;(2) may name the department as agent for the purpose of contracting for and supervising the planning, acquisition, development and construction of the airport project;(3) may provide for the department to receive and disburse the local sponsor's share of project costs;(4) shall provide a general description of the proposed project, the amount of state, federal, and/or local sponsor project share, and the total estimated cost;(5) shall include, as a separate attachment, an attorney's certificate of airport property interests title if necessary; certification of availability of sponsor share; and existence of an airport fund; and(6) shall include a list of both the sponsor's and the state's responsibilities.(c) Loan agreement. Where the commission has offered financial assistance to a sponsor in the form of a loan, the sponsor and the department shall enter into a loan agreement defining the consideration, the terms, and conditions under which the loan will be made, and the responsibilities of the sponsor. The loan agreement shall:(1) provide a general description of the proposed project, the amount of state funds to be loaned, and the estimated total project costs;(2) provide the length of the loan and amount of simple interest, along with the schedule of payments;(3) include an attorney's certificate of airport property interests title as a separate attachment;(4) disclose the source of all funds for the project;(5) certify that the sponsor has the ability to finance and operate the airport or air navigational facility; and(6) include other provisions and terms as deemed necessary by the department.(d) Covenants, terms, and conditions. In addition to all other requirements imposed by law or by this subchapter, all intergovernmental agreements made by the department shall be subject to the following terms and conditions and any additional terms and conditions necessary to effectuate the program.(1) The term of the agreement shall be no longer than 20 years from the date of a sponsor's acceptance.(2) The airport or navigational facility shall remain under the sponsor's control during the term of the grant or loan agreement.(3) At least 10% of the total project cost will be provided from sources other than the state.(4) The airport or navigational facility shall be maintained by the sponsor in a safe and serviceable condition during the term of the agreement.(5) Consistent with safety and security requirements, a sponsor shall make the airport or navigational facility available to all types, kinds, and classes of aeronautical use without discrimination between such types, kinds, and classes and shall provide adequate public access during the term of the agreement.(6) The sponsor shall not grant or permit another to exercise an exclusive right for the conduct of any aeronautical activity on or about an airport landing area. Aeronautical activities include, but are not limited to, scheduled airline flights, charter flights, flight instruction, aircraft sales, rental, and repair; sale of aviation petroleum products, and aerial application. The landing area consists of runways or landing strips, taxiways, parking aprons, roads, airport lighting, and navigational aids.(7) Property interests identified in the agreement and attorney's certificate of Airport Property Interests shall be pledged to airport use and shall not be removed from such use without prior written approval by the commission.(8) A sponsor, if requested by the division, shall submit to the division annual statements of airport or air navigational facility revenues and expenses.(9) All fees collected for use of an airport or navigational facility constructed with funds provided under the program shall be reasonable and nondiscriminatory. The proceeds of such fees shall be used solely for the development, operation, and maintenance of the airport or navigational facility. A sponsor, however, shall not be required to pledge income received from the mineral estate to airport use unless state and/or federal funds were used to acquire the mineral estate or any interest therein.(10) All development of an airport constructed with program funds shall be consistent with the airport layout plan approved by the staff and maintained by the sponsor. A reproducible copy of such plan, and all subsequent modifications thereto, shall be filed with the division for approval by the staff.(11) Following completion of a project where airport lighting is part of the project, the sponsor shall operate such lighting from sunset to sunrise either manually or by radio control.(12) The department shall not be a party to any contract or commitment outside of the mutually agreed upon contracts, which a sponsor may enter into or assume in carrying out a project.(13) A sponsor shall adopt and enforce airport hazard zoning regulations to restrict the use of land, adjacent to or in the immediate vicinity of the airport, to activities compatible with normal airport operations. A sponsor shall also acquire and retain easements or other interests in, or rights to, the use of land or airspace unless a sponsor can show the acquisition and retention of such interest will be impractical or will result in undue hardship to a sponsor. No sponsor shall be eligible for a subsequent grant or loan under the program unless the sponsor has adopted and has, as called upon to do so, enforced the airport zoning ordinance/order approved by the division.(14) Unless the division has given prior written exception, a sponsor shall not enter into any agreement nor permit any aircraft to gain direct ground access to or from the sponsor's airport form private property adjacent to or in the immediate area of the airport, a practice commonly known as a "through the fence operation."(e) Amendments and cancellation. A major amendment to or cancellation of a grant or loan requires majority vote of the entire commission. Minor amendments to a grant or loan agreement may be made by the director at his discretion. The director shall determine what constitutes a major or minor amendment. The sponsor may appeal the director's determination to the commission by filing with the executive director a written statement of its specific objections. The executive director shall forward the statement of appeal to the commission. The commission shall make a final decision as to whether the amendment is major or minor.</content><note type="source"><p>Source Note: The provisions of this §30.210 adopted to be effective September 27, 1990, 15 TexReg 5366; transferred effective September 1, 1993, as published in the Texas Register August 27, 1993, 18 TexReg 5768; amended to be effective May 24, 1995, 20 TexReg 3575; amended to be effective February 21, 1996, 21 TexReg 979.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c30/scC/s30.211"><num value="30.211">§30.211</num><heading>Supplemental Grants and Loans</heading><content>All airport development funds appropriated by the legislature for any fiscal year or carried forward from any fiscal year, and not encumbered by specific intergovernmental agreements approved by the commission, shall be available to supplement existing grant or loan agreements to meet unforeseen costs. The executive director or his or her designee not below the director may authorize supplemental grants or loans to cover costs not exceeding 25% of the total grant contract or loan approved by the commission or $100,000, whichever is greater.</content><note type="source"><p>Source Note: The provisions of this §30.211 adopted to be effective September 27, 1990, 15 TexReg 5366; transferred effective September 1, 1993, as published in the Texas Register August 27, 1993, 18 TexReg 5768; amended to be effective May 24, 1995, 20 TexReg 3575.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c30/scC/s30.212"><num value="30.212">§30.212</num><heading>Eligible Costs</heading><content>Only costs necessary and proper for completion of a project will be eligible under a grant or loan approved by the commission. The staff shall make a preliminary determination as to the allowance of costs. Such determination of allowance shall be final unless appealed by the sponsor to the commission. An appeal shall be filed in writing with the executive director who shall forward the same to the commission for its consideration. Unless specifically authorized by the commission or by this subchapter, no costs, except for engineering and property acquisition costs, incurred prior to the approval of a grant or loan agreement will be eligible for reimbursement.</content><note type="source"><p>Source Note: The provisions of this §30.212 adopted to be effective September 27, 1990, 15 TexReg 5366; transferred effective September 1, 1993, as published in the Texas Register August 27, 1993, 18 TexReg 5768; amended to be effective May 24, 1995, 20 TexReg 3575.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c30/scC/s30.213"><num value="30.213">§30.213</num><heading>Sponsor's Share of Project Costs</heading><content>Sponsor's share of costs for a project for which a state or federal grant will be made shall be granted to the department in accordance with the terms of the APPA. Where sponsor's share of project costs is made by an eligible in-kind contribution, sponsor will be credited with the value of the in-kind contribution as determined by the division. See §30.206(a) of this title (relating to Amount of Grant or Loan).</content><note type="source"><p>Source Note: The provisions of this §30.213 adopted to be effective September 27, 1990, 15 TexReg 5366; transferred effective September 1, 1993, as published in the Texas Register August 27, 1993, 18 TexReg 5768; amended to be effective May 24, 1995, 20 TexReg 3575.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c30/scC/s30.214"><num value="30.214">§30.214</num><heading>Grant and Loan Agreement Payments</heading><content>(a) Grant payments made under APPA's in which the department is not named as the sponsor's agent, and loan payments, may be authorized upon application to the department. Such payments will be in proportion to the amount of the project satisfactorily completed at the time of the payment application. No more than 90% of the total loan or grant will be paid prior to the completion of the project and enactment of airport hazard zoning. The last 10% of the loan or grant amount will be paid only after the staff has inspected and approved the completed project. No loan or grant payment will be made until:(1) creation by the sponsor of a special airport fund as required by Transportation Code, §22.054, into which all revenues derived from all airport operations are to be deposited, and approval by the department of the sponsor's resolution or order creating the fund; and(2) passage of an airport hazard zoning ordinance/order approved by the department.(b) For loan agreements, proof is made to the department of property damage insurance for the project, naming the Texas Department of Transportation Loan Fund as beneficiary in the total amount of the loan, both principal and interest.</content><note type="source"><p>Source Note: The provisions of this §30.214 adopted to be effective September 27, 1990, 15 TexReg 5366; transferred effective September 1, 1993, as published in the Texas Register August 27, 1993, 18 TexReg 5768; amended to be effective May 24, 1995, 20 TexReg 3575; amended to be effective March 15, 2017, 42 TexReg 1153.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c30/scC/s30.215"><num value="30.215">§30.215</num><heading>Airport Hazard Zoning and Compatible Land Use</heading><content>(a) The sponsor shall adopt and enforce airport hazard zoning regulations to restrict the use of land, adjacent to or in the immediate vicinity of the airport, to activities compatible with normal airport operations. The sponsor shall also acquire and retain easements or other interests in or rights to the use of land or airspace, unless the sponsor can show that acquisition and retention of such interest will be impractical or will result in undue hardship to the sponsor. To assist the sponsor in implementing these measures, the division, upon request from a sponsor, will provide assistance with respect to airport hazard zoning pursuant to the Texas Airport Zoning Act, Local Government Code, §§241.001 et seq, including:(1) preparation of a zoning map; and(2) providing a model zoning ordinance/order and procedures for the community to pass such ordinance/order.(b) Until the sponsor has adopted an airport hazard ordinance/order approved by the division, the final 10% of a project funded by the department will be withheld pending the approved ordinance adoption.</content><note type="source"><p>Source Note: The provisions of this §30.215 adopted to be effective September 27, 1990, 15 TexReg 5366; transferred effective September 1, 1993, as published in the Texas Register August 27, 1993, 18 TexReg 5768; amended to be effective May 24, 1995, 20 TexReg 3575.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c30/scC/s30.216"><num value="30.216">§30.216</num><heading>Property Interests</heading><content>(a) Minimum requirements. No construction project will be considered for a grant or loan unless the sponsor can provide sufficient property interests for development, operation, and maintenance of the airport or air navigational facility. This requirement shall include the amount of property needed for construction of necessary runways, taxiways, and aircraft parking areas, and for initial and future construction of necessary structures, such as hangars. All property adjacent to or in the immediate vicinity of the airport must be clear of obstructions hazardous to aviation or the sponsor shall provide proof that such obstructions will be removed within the time allotted for completion of the project.(b) Eligible costs. Only the reasonable cost of property needed for present and future development of an airport or air navigational facility or for the removal of an airport hazard are eligible for reimbursement under the program. Notwithstanding any language contained in §30.212 of this title (relating to Eligible Costs), property costs are eligible for reimbursement irrespective of the date of acquisition by the sponsor, if acquired through procedures acceptable to the division.(c) Title. To the maximum extent possible, and as provided in subsection (e) of this section, property to be utilized for a project under the program shall be held by the sponsor in fee simple, free and clear of all liens, easements, leases, and other adverse interests or encumbrances unless a lesser property interest is deemed satisfactory by the division. Exceptions will be made when it is impossible or impractical for the sponsor to acquire such title and the staff determines that lesser title will not interfere with or adversely affect the present and future development, operation, and maintenance of the airport or air navigational facility.(d) Certificate of title. Sponsor's attorney shall execute and mail to the department a certificate of airport property interests in the form promulgated by the staff, indicating sponsor's title to all property interests involved in a project.(e) Leased Airports. Sponsors operating leased airports are eligible for financial assistance grants provided the following conditions are met.(1) The sponsor is a state agency or governmental entity.(2) The sponsor has a long-term lease a minimum of 20 years from the date of the grant for all landing areas, building areas, and for areas pertinent or necessary for the project.(3) The sponsor has adequate control of the leased property to carry out terms of the APPA.(4) In addition to the certificate of airport property interest, the sponsor provides the division with a copy of the airport lease.</content><note type="source"><p>Source Note: The provisions of this §30.216 adopted to be effective September 27, 1990, 15 TexReg 5366; transferred effective September 1, 1993, as published in the Texas Register August 27, 1993, 18 TexReg 5768; amended to be effective May 24, 1995, 20 TexReg 3575.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c30/scC/s30.217"><num value="30.217">§30.217</num><heading>Technical Services</heading><content>Insofar as is reasonably possible, engineering and technical services relating to airports and air navigational facilities may be provided by the staff to any person so requesting. The areas for which assistance is available include, but are not limited to, site selection, construction inspection, planning, airport layout and design, and airport hazard and compatible land use zoning.</content><note type="source"><p>Source Note: The provisions of this §30.217 adopted to be effective September 27, 1990, 15 TexReg 5366; transferred effective September 1, 1993, as published in the Texas Register August 27, 1993, 18 TexReg 5768; amended to be effective May 24, 1995, 20 TexReg 3575.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c30/scC/s30.218"><num value="30.218">§30.218</num><heading>Compliance</heading><content>(a) If, after all reasonable attempts to assure grant compliance have failed, and the department finds that a sponsor is unwilling or unable to comply with any of the terms and conditions of the intergovernmental agreement, the division will:(1) require a pro rata refund of money issued with a grant or loan to the sponsor or immediate payment of any outstanding loan made to the sponsor by the commission;(2) deny sponsor's future requests for state aid; or(3) request the attorney general to bring suit seeking reimbursement of amounts paid or loaned to the sponsor by the state pursuant to the grant or loan agreement.(b) To insure that a sponsor is in compliance with the terms and provisions of a grant or loan agreement, the staff will make periodic inspections at the project site and shall immediately report to the sponsor any noncompliance with or violation of the terms and provisions of the grant contract or loan agreement.</content><note type="source"><p>Source Note: The provisions of this §30.218 adopted to be effective September 27, 1990, 15 TexReg 5366; transferred effective September 1, 1993, as published in the Texas Register August 27, 1993, 18 TexReg 5768; amended to be effective May 24, 1995, 20 TexReg 3575.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c30/scC/s30.219"><num value="30.219">§30.219</num><heading>Planning Grant Contracts</heading><content>Grants for planning shall also be available to eligible parties under the program. The primary purpose of such planning shall be to determine the facilities required to meet a community's short, intermediate, and long-term aviation needs. The need for a planning grant will be evaluated in light of the overall needs of the state as specified in the Texas Airport System Plan with due emphasis placed on complex situations such as:(1) service to more than one community or region;(2) unresolved questions concerning site selection or airspace limitations;(3) unique environmental conditions;(4) unusual or unique aviation needs; and(5) an apparent surplus of facilities and/or land.</content><note type="source"><p>Source Note: The provisions of this §30.219 adopted to be effective September 27, 1990, 15 TexReg 5366; transferred effective September 1, 1993, as published in the Texas Register August 27, 1993, 18 TexReg 5768; amended to be effective May 24, 1995, 20 TexReg 3575.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c30/scC/s30.220"><num value="30.220">§30.220</num><heading>Compliance with Flood Hazard Evaluation Guidelines</heading><content>When administering any proposed project involving construction or land-use planning where state funds are involved, the department shall comply with all flood hazard evaluation guidelines for state agencies published by the Texas Natural Resource Conservation Commission.</content><note type="source"><p>Source Note: The provisions of this §30.220 adopted to be effective September 27, 1990, 15 TexReg 5366; transferred effective September 1, 1993, as published in the Texas Register August 27, 1993, 18 TexReg 5768; amended to be effective May 24, 1995, 20 TexReg 3575.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c30/scE"><num value="E">SUBCHAPTER E</num><heading>REGULATION OF AIRCRAFT ON WATER</heading><section identifier="/us/state/tx/tac/t43/p1/c30/scE/s30.401"><num value="30.401">§30.401</num><heading>Purpose</heading><content>Transportation Code, Chapter 26 provides that a governmental entity that owns, controls, or has jurisdiction over a navigable body of water may not, in an area in which motorized boats are permitted, prohibit the takeoff, landing, or operation of an aquatic aircraft, or regulate or require a permit or fee for the operation of an aquatic aircraft without the approval of the Texas Department of Transportation. This subchapter implements and administers the department's responsibilities under Chapter 26.</content><note type="source"><p>Source Note: The provisions of this §30.401 adopted to be effective December 12, 1999, 24 TexReg 10918.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c30/scE/s30.402"><num value="30.402">§30.402</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Aquatic aircraft - A seaplane, floatplane, or similar aircraft that is capable of taking off and landing on water.(2) Commission - The Texas Transportation Commission.(3) Department - The Texas Department of Transportation.(4) Executive director - The executive director of the Texas Department of Transportation or the director's designee.(5) Motorized boat - Any boat propelled in whole or in part by machinery, including boats temporarily equipped with detachable motors.(6) Navigable body of water - A body of water available for public use that has the capability of use by motorized boats. This term does not include a navigable body of water that the federal government owns, controls, or has jurisdiction over.</content><note type="source"><p>Source Note: The provisions of this §30.402 adopted to be effective December 12, 1999, 24 TexReg 10918.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c30/scE/s30.403"><num value="30.403">§30.403</num><heading>Application</heading><content>(a) To secure approval for a prohibition or limitation under this subchapter, a governmental entity must file an application with the executive director. The application shall be in a form prescribed by the department and must be accompanied by the following information:(1) type of prohibition or limitation requested (specific area, times, permit fees etc.);(2) specific safety concerns (wires or cables above the water or on the surface, unusual types or numbers of boats, etc.);(3) the depth of water and any known obstacles under the surface;(4) interests of homeowners located on or near the body of water;(5) any other factors such as migratory waterfowl patterns, seasonal hunting, fishing, and tourism; and(6) any other documentation that the executive director determines is necessary to assist the commission in evaluating the approval criteria described in §30.404(a) of this title (relating to Commission Action).(b) The executive director will investigate and analyze each application to develop a recommendation to the commission based on the criteria described in §30.404(a) of this title.</content><note type="source"><p>Source Note: The provisions of this §30.403 adopted to be effective December 12, 1999, 24 TexReg 10918.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c30/scE/s30.404"><num value="30.404">§30.404</num><heading>Commission Action</heading><content>(a) The commission will approve the proposed prohibition or limitation if it determines that safety concerns justify the prohibition or limitation. In making a determination, the commission will consider:(1) the recommendation of the executive director;(2) the topography of the body of water or specified area;(3) the depth of the water and any obstacles that are under the water;(4) the amount of boat or individual traffic on the body of water or in the specified area;(5) the interests of persons owning homes that are located on or around the body of water; and(6) any other factors that relate to the safe operation of aquatic aircraft, such as migratory waterfowl patterns, seasonal hunting, fishing, and tourism.(b) The commission will approve or disapprove the request by written order; and, if disapproved, the order will state the reasons for disapproval.</content><note type="source"><p>Source Note: The provisions of this §30.404 adopted to be effective December 12, 1999, 24 TexReg 10918.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c30/scE/s30.405"><num value="30.405">§30.405</num><heading>Notice</heading><content>(a) If the commission approves a prohibition or limitation under §30.404 of this title (relating to Commission Action):(1) the department will publish notice of the approval in the Texas Register; and(2) the governmental entity shall publish the prohibition or regulation in a local daily newspaper and notify the Federal Aviation Administration.(b) The prohibition or limitation shall become effective on the date of publication under subsection (a)(2) of this section.</content><note type="source"><p>Source Note: The provisions of this §30.405 adopted to be effective December 12, 1999, 24 TexReg 10918.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c30/scF"><num value="F">SUBCHAPTER F</num><heading>METEOROLOGICAL EVALUATION TOWERS</heading><section identifier="/us/state/tx/tac/t43/p1/c30/scF/s30.501"><num value="30.501">§30.501</num><heading>Purpose</heading><content>The purpose of this subchapter is to prescribe the procedures for notice and registration of meteorological evaluation towers in accordance with Transportation Code, §21.071.</content><note type="source"><p>Source Note: The provisions of this §30.501 adopted to be effective February 18, 2016, 41 TexReg 1128.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c30/scF/s30.502"><num value="30.502">§30.502</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Department--The Texas Department of Transportation.(2) Meteorological Evaluation Tower--A structure that is self-standing or supported by guy wires and anchors, is not more than six feet in diameter at the base of the structure, and has accessory facilities on which an antenna, sensor, camera, meteorological instrument, or other equipment is mounted for the purpose of documenting whether a site has sufficient wind resources for the operation of a wind turbine generator. For purposes of this subchapter, the term does not include a structure that is located adjacent to a building, including a barn, or an electric utility substation, or in the curtilage of a residence.</content><note type="source"><p>Source Note: The provisions of this §30.502 adopted to be effective February 18, 2016, 41 TexReg 1128.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c30/scF/s30.503"><num value="30.503">§30.503</num><heading>Notice and Registration</heading><content>(a) A person who intends to erect a meteorological evaluation tower shall provide notice of that intention to the department by submitting the appropriate form through the department's Internet website. The notice required by this subsection must be submitted no later than the 30th day before the day that erection of the tower begins.(b) The following information is required to complete the notice form required by subsection (a) of this section:(1) the name, address, and contact information of the owner or operator of the meteorological evaluation tower;(2) the proposed location of the meteorological evaluation tower, including latitude, longitude, ground elevation at the site and height above ground level of the tower;(3) the proposed date of construction; and(4) any other information the department considers necessary to assist in determining ownership, physical characteristics, or location of the meteorological evaluation tower.(c) A person who owns or operates a meteorological evaluation tower shall register the tower with the department by submitting the appropriate form through the department's Internet website. The registration required by this subsection must be completed before the 30th day after the day that erection of the tower begins or February 29, 2016, whichever is later.(d) The following information is required to complete the registration form required by subsection (c) of this section:(1) the name, address, and contact information of the owner or operator of the meteorological evaluation tower;(2) the location of the meteorological evaluation tower, including latitude, longitude, ground elevation at the site and height above ground level of the tower;(3) if the meteorological evaluation tower is at least 50 feet but not more than 200 feet in height above ground level, an affirmation that the tower complies with the requirements applicable to the tower under Transportation Code, §21.071; and(4) any other information the department considers necessary to assist in determining ownership, physical characteristics, or location of the meteorological evaluation tower.(e) The person who is responsible for filing a form required by subsection (a) or (c) of this section shall amend the filed information as necessary to maintain the accuracy of that information.</content><note type="source"><p>Source Note: The provisions of this §30.503 adopted to be effective February 18, 2016, 41 TexReg 1128.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p1/c31"><num value="31">CHAPTER 31</num><heading>PUBLIC TRANSPORTATION</heading><subchapter identifier="/us/state/tx/tac/t43/p1/c31/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL</heading><section identifier="/us/state/tx/tac/t43/p1/c31/scA/s31.1"><num value="31.1">§31.1</num><heading>Scope and Purpose</heading><content>This chapter sets out policies and procedures to be followed by the Texas Department of Transportation in accomplishing the duties prescribed by Transportation Code, Chapters 455, 456, 458, and 461, concerning public transportation. This chapter also describes the administration of federal public transportation grant monies by the department pursuant to 49 USC §5301 et seq.</content><note type="source"><p>Source Note: The provisions of this §31.1 adopted to be effective August 14, 1989, 14 TexReg 3704; amended to be effective March 22, 1996, 21 TexReg 2096; 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.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c31/scA/s31.2"><num value="31.2">§31.2</num><heading>Organization</heading><content>The Public Transportation Division is responsible for:(1) preparing and updating a statewide comprehensive master plan for public transportation;(2) providing financial assistance through appropriate communication and the establishment of procedures for the development and processing of applications;(3) assisting local entities in securing financial aid offered by the federal government for the purpose of establishing, maintaining, or expanding public transportation systems;(4) administering the state public transportation funds and other monies appropriated by the Texas Legislature for public transportation purposes and established within the department budget, in accordance with all federal, state, and local laws, statutes, ordinances, rules, and regulations;(5) providing technical assistance to district personnel and local jurisdictions;(6) representing the state in public transportation matters with federal officials, other state agencies, transit organizations, and local communities;(7) monitoring and sponsoring research and development activities to enhance public transportation development;(8) assisting in the development of policies by the commission, the governor, and the legislature; and(9) encouraging the coordination of public transportation services to eliminate waste, to generate efficiencies that will permit increased levels of service, and to further the state's efforts to reduce air pollution.</content><note type="source"><p>Source Note: The provisions of this §31.2 adopted to be effective August 14, 1989, 14 TexReg 3704; amended to be effective February 15, 2001, 26 TexReg 1365; amended to be effective February 21, 2008, 33 TexReg 1380; amended to be effective May 19, 2011, 36 TexReg 3111.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c31/scA/s31.3"><num value="31.3">§31.3</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise:(1) Accountable executive--A single, identifiable individual who has:(A) ultimate responsibility for carrying out the public transportation agency safety plan of a public transportation agency;(B) responsibility for carrying out the agency's transit asset management plan; and(C) control or direction over the human and capital resources needed to develop and maintain both the agency's public transportation agency safety plan, in accordance with 49 U.S.C. §5329(d), and the agency's transit asset management plan in accordance with 49 U.S.C. §5326.(2) Administrative expenses--Include, but are not limited to, general administrative expenses such as salaries of the project director, secretary, and bookkeeper; insurance premiums or payments to a self-insurance reserve; office supplies; facilities and equipment rental; and standard overhead rates.(3) Allocation--A preliminary distribution of grant funds representing the maximum amount to be made available to an entity during the fiscal year, subject to the entity's completion of and compliance with all application requirements, rules, and regulations applicable to the specific funding program.(4) Americans with Disabilities Act (ADA)--The Americans with Disabilities Act of 1990 (42 U.S.C. §12101 et seq.), which provides a comprehensive national mandate for the elimination of discrimination against individuals with disabilities. The ADA provides specific requirements related to public transportation.(5) Asset management plan--The transit asset management plan prepared in accordance with 49 U.S.C. §5326 and certified by the department. The plan includes at a minimum, capital asset inventories and condition assessments, decision support tools, and investment prioritization.(6) Authority--A metropolitan transit or regional transportation authority created under Transportation Code, Chapter 451 or 452; a city transit department created under Transportation Code, Chapter 453, by a municipality having a population of not less than 200,000 at the time of its creation; or a coordinated county authority created under Transportation Code, Chapter 460.(7) Average revenue vehicle capacity--The number of seats in all revenue vehicles divided by the number of revenue vehicles.(8) Capital expenses--Include the acquisition, construction, and improvement of public transit facilities and equipment needed for a safe, efficient, and coordinated public transportation system.(9) Chief safety officer--An adequately trained individual who has responsibility for safety and reports directly to a small public transportation provider agency's chief executive officer, general manager, president, or equivalent officer. A chief safety officer may not serve in other operational or maintenance capacities, unless the chief safety officer is employed by a transit agency that is a small public transportation provider or a public transportation provider that does not operate a rail fixed guideway public transportation system.(10) Clean Air Act--The federal Clean Air Act (42 U.S.C. §7401 et seq.), which seeks to protect and enhance the quality of the nation's air resources by promoting and financing reasonable federal, state, and local governmental actions for pollution prevention.(11) Commission--The Texas Transportation Commission.(12) Contractor--A recipient of public transportation funds through a contract or grant agreement with the department.(13) Department--The Texas Department of Transportation.(14) Designated recipient--The state, an authority, a municipality that is not included in an authority, a local governmental body, another political subdivision, or a nonprofit entity providing rural public transportation services, that receives federal or state public transportation money through the department or the Federal Transit Administration, or its successor.(15) Director--The director of public transportation for the department.(16) Disability--Disability as defined in the ADA (42 U.S.C. §12102), which includes a physical or mental impairment that substantially limits one or more major life activities of an individual.(17) District--One of the 25 districts of the department for a designated geographic area.(18) Employment-related transportation--Transportation to support services that assist individuals in job search or job preparation. Trips to daycare centers, one-stop workforce centers, jobs interviews, and vocational training are examples.(19) Equipment--Tangible, nonexpendable, personal property having a useful life of more than one year and an acquisition cost of $5,000 or more per unit.(20) Equivalent authority--An entity that carries out duties similar to that of a board of directors, for a recipient or subrecipient of FTA funds under 49 U.S.C. Chapter 53, including sufficient authority to review and approve a recipient or subrecipient's public transportation agency safety plan.(21) Executive director--The executive director of the department.(22) Fare box revenues--Fares paid by riders, including those who are later reimbursed by a human service agency or other user-side subsidy arrangement. This definition includes subscription service fees, whether or not collected on-board a transit vehicle. Payments made directly to the transportation system by a human service agency are not considered to be fare box revenues.(23) Federal Transit Administration (FTA)--The Federal Transit Administration of the United States Department of Transportation.(24) Federally funded project--A public transportation project that is being funded in part under the provisions of the Federal Transit Act, as amended, 49 U.S.C. §5301 et seq., the Federal-Aid Highway Act of 1973, as amended, 23 U.S.C. §101 et seq., or any other federal program for funding public transportation.(25) Fiscal year--The state accounting period of 12 months that begins on September 1 of each calendar year and ends on August 31 of the following calendar year.(26) Good standing--A status indicating that the department's director of public transportation has not sent a letter to an entity signifying the entity is in noncompliance with any aspect of a program.(27) Incident--An intentional or unintentional act that occurs on or in association with transit-controlled property and that threatens or affects the safety or security of an individual or property.(28) Large urban transit district--A local governmental entity or a political subdivision of the state that provides and coordinates public transportation within an urbanized area with a population greater than or equal to 200,000 in accordance with Transportation Code, Chapter 458. This definition includes urban transportation providers under Transportation Code, Chapter 456, that received state money through the department on September 1, 1994. This definition excludes authorities.(29) Like-kind exchange--The trade-in or sale of a transit vehicle before the end of its useful life to acquire a replacement vehicle of like kind.(30) Local funds--Directly generated funds, as defined in the latest edition of the Federal Transit Administration National Transit Database Reporting Manual. Examples include, but are not limited to, passenger fares, special transit fares, purchased transportation fares, park and ride revenue, other transportation revenue, charter service revenue, freight tariffs, station and vehicle concessions, advertising revenue, funds dedicated to transit at their source, taxes, cash contributions, contract revenue, general revenue, and in-kind contributions.(31) Local governmental entity--Any local unit of government including a city, town, village, municipality, county, city transit department, or authority.(32) Local public entity--Includes a city, county, or other political subdivision of the state, a public agency, or an instrumentality of one or more states, municipalities, or political subdivisions of states.(33) Local share requirement--The amount of funds required and eligible to match federally funded projects for the improvement of public transportation.(34) Low-income individual--An individual whose family income is at or below 150 percent of the poverty line, as that term is defined in the Community Services Block Grant Act (42 U.S.C. §9902(2)), including any revision required by that section, for a family of the size involved, or as otherwise defined by 49 U.S.C. §5302 or 49 U.S.C. §5316, the Job Access and Reverse Commute program as established under the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users.(35) Metropolitan Planning Organization (MPO)--The organization designated or redesignated by the governor under 23 U.S.C. §134 as the responsible entity for transportation planning in urbanized areas over 50,000 in population.(36) Mobility management--Eligible capital expenses consisting of short-range planning and management activities and projects for improving coordination among public transportation and other transportation-service providers carried out by a recipient or subrecipient through an agreement entered into with a person, including a government entity, under 49 U.S.C. §5301 et seq. (other than §5309 and §5339). Mobility management excludes operating public transportation services and excludes equipment, tires, tubes, material, and reconstruction of equipment and material described as associated capital maintenance in the definition of "capital project" under 49 U.S.C. §5302.(37) Net operating expenses--Those expenses that remain after fare box revenues are subtracted from eligible operating expenses.(38) New public transportation services or alternatives--An activity that, with respect to the New Freedom program:(A) is targeted toward people with disabilities;(B) is beyond the ADA requirements;(C) meets the intent of the program by removing barriers to transportation and assisting persons with disabilities with transportation, including transportation to and from jobs and employment services; and(D) is not included in a Transportation Improvement Program or Statewide Transportation Improvement Program prior to August 10, 2005.(39) Nonprofit organization--A corporation or association determined by the Secretary of the Treasury of the United States to be an organization described by 26 U.S.C. §501(c), one that is exempt from taxation under 26 U.S.C. §504(a) or §101, or one that has been determined under state law to be nonprofit and for which the state has received documentation certifying the status of the organization.(40) Nonurbanized area--An area outside an urbanized area.(41) Obligated funds--Monies made available under a valid, unexpired contract or grant agreement between the department and a public transportation subrecipient.(42) Private--Pertaining to nonpublic entities. This definition does not include municipalities or other political subdivisions of the state; public agencies or instrumentalities of one or more states; Native American tribes (except private nonprofit corporations formed by Native American tribes); public corporations, boards, or commissions established under the law of any state; or entities subject to control by public authority, whether state or municipal.(43) Project--The public transportation activities to be carried out by a subrecipient, as described in its application for funding.(44) Public transportation--Shared-ride transportation of passengers and their hand-carried packages or baggage on a regular or continuing basis by means of surface or water conveyance by a governmental entity or by a private entity if the private entity receives financial assistance for that conveyance from any governmental entity. This definition includes fixed guideway transportation and underground transportation. This definition excludes services provided by aircraft, ambulances, emergency vehicles, intercity passenger rail transportation, charter bus service, school bus service, sightseeing service, courtesy shuttle service for patrons of one or more specific establishments, or intra-terminal and intra-facility shuttle services.(45) Public transportation agency safety plan--The documented comprehensive agency safety plan for a transit provider that is required by 49 U.S.C. §5329.(46) Real property--Land, including improvements, structures, and appurtenances, but excluding movable machinery and equipment.(47) Revenue service--Passenger transportation occurring when a vehicle is available to the general public and there is a reasonable expectation of carrying passengers that directly pay fares, are subsidized by public policy, or provide payment through some contractual agreement. This does not imply that a cash fare must be paid. Vehicles operated in free fare services are considered in revenue service.(48) Revenue vehicle--The rolling stock used in providing transit service for passengers. This definition does not include a vehicle used in connection with keeping revenue vehicles in operation, such as a tow truck or a staff car.(49) Reverse commute project--A public transportation project designed to transport residents of urbanized areas and other than urbanized areas to suburban employment opportunities, or as otherwise defined by 49 U.S.C. §5302 or 49 U.S.C. §5316, the Job Access and Reverse Commute program as established under the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users.(50) Ridership--Unlinked passenger trips.(51) Rural area--A nonurbanized area.(52) Rural transit district--A political subdivision of the state that provides and coordinates rural public transportation within its boundaries in accordance with the provisions of Transportation Code, Chapter 458.(53) Safety assurance--Processes within a transit provider's safety management system that functions to ensure the implementation and effectiveness of safety risk mitigation, and to ensure that the transit agency meets or exceeds its safety objectives through the collection, analysis, and assessment of information.(54) Safety management policy--A transit providers documented commitment to safety that defines the transit agency's safety objectives and the accountabilities and responsibilities of its employees in regard to safety.(55) Safety promotion--A combination of training and communication of safety information to support safety risk management as applied to the transit agency's public transportation system.(56) Safety risk management--A process within a transit agency's public transportation agency safety plan for identifying hazards and analyzing, assessing, and mitigating safety risks.(57) Senior--An individual who is 65 years of age or older.(58) Small public transportation provider--A recipient or subrecipient of federal financial assistance under 49 U.S.C. §5307 that has 100 or fewer vehicles in peak revenue service and does not operate a rail fixed guideway public transportation system.(59) Small urban transit district--A local governmental entity or a political subdivision of the state that provides and coordinates public transportation within an urbanized area with a population less than 200,000 in accordance with Transportation Code, Chapter 458. This definition includes urban transportation providers under Transportation Code, Chapter 456, that received state money through the department on September 1, 1994. This definition excludes authorities.(60) Stakeholders--All individuals or groups that are potentially affected by transportation decisions. Examples include public health, work force, and human service agencies; representatives of transportation agency employees or other affected employees; private providers of transportation; non-governmental agencies; local businesses; advocates for persons in diverse and traditionally underserved communities, such as seniors, individuals with disabilities, and persons with low incomes; and other interested parties.(61) Subrecipient--An entity that receives state or federal transportation funding from the department, rather than directly from FTA or other state or federal funding source.(62) Uniform grant and contract management standards--The standards contained in the Texas Administrative Code, Title 1, Chapter 5, Subchapter A, concerning uniform grant and contract management standards for state agencies.(63) U.S. DOT--United States Department of Transportation.(64) Unlinked passenger trips--The number of passengers who board public transportation vehicles. A passenger is counted each time the passenger boards a vehicle even though the passenger might be on the same journey from origin to destination.(65) Urban transit district--A local governmental entity or a political subdivision of the state that provides and coordinates public transportation within an urbanized area in accordance with Transportation Code, Chapter 458. This definition includes urban transportation providers under Transportation Code, Chapter 456, that received state money through the department on September 1, 1994. This definition excludes authorities.(66) Urbanized area--A core area and the surrounding densely populated area with a population of 50,000 or more, with boundaries fixed by the United States Census Bureau.(67) Vehicle miles--The miles a vehicle travels while in revenue service, plus deadhead miles. This definition excludes miles a vehicle travels for charter service, school bus service, operator training, or maintenance testing.(68) Vehicle revenue hours or miles--The hours or miles a vehicle travels while in revenue service. This definition includes layover and recovery, but excludes travel to and from storage facilities, the training of operators prior to revenue service, road tests, deadhead travel, and school bus and charter service.(69) Vehicle utilization--Average daily passenger trips per revenue vehicle, divided by average revenue vehicle capacity. This definition provides a measure of an individual system's ability to use existing seating capacity.(70) Welfare recipient--An individual who has received assistance under a state or tribal program funded under the Social Security Act, Title IV, Part A, at any time during the previous three year period before the date on which the applicant applies for a grant under 49 U.S.C. §5307 or §5311, or as otherwise defined by 49 U.S.C. §5307 or §5311.</content><note type="source"><p>Source Note: The provisions of this §31.3 adopted to be effective June 15, 2006, 31 TexReg 4736; amended to be effective November 16, 2006, 31 TexReg 9353; amended to be effective February 21, 2008, 33 TexReg 1380; amended to be effective June 17, 2010, 35 TexReg 5079; amended to be effective May 19, 2011, 36 TexReg 3111; amended to be effective November 21, 2013, 38 TexReg 8253; amended to be effective December 6, 2017, 42 TexReg 6815; amended to be effective February 19, 2020, 45 TexReg 1044.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c31/scB"><num value="B">SUBCHAPTER B</num><heading>STATE PROGRAMS</heading><section identifier="/us/state/tx/tac/t43/p1/c31/scB/s31.11"><num value="31.11">§31.11</num><heading>Formula Program</heading><content>(a) Purpose. Transportation Code, Chapter 456 requires the commission to allocate, at the beginning of each state fiscal year, certain amounts appropriated for public transportation. This section sets out the policies, procedures, and requirements for that allocation.(b) Formula allocation. At the beginning of each state fiscal year, an amount that does not exceed the amount appropriated from all sources to the commission by the legislature for that biennium for public transportation, other than federal funds and amounts specifically appropriated for coordination, technical support, or other costs of administration, will be allocated to urban and rural transit districts.(1) If the appropriated amount to which this subsection applies is at least $73,752,134, the commission will allocate $10,365,694 to large urban transit districts, $15,927,748 to small urban transit districts, and $45,917,020 to rural transit districts. If the appropriated amount is less than $73,752,134, the amounts allocated by this paragraph will be reduced proportionately.(A) Urban funds available under this section will be allocated to urban transit districts as provided by this subparagraph.(i) If at least $73,752,134 is appropriated as described in paragraph (1) of this subsection, an urban transit district receiving funds under Transportation Code, Section 456.006(b), will be allocated for each year of the biennium an amount equal to the amount received by that district in Fiscal Year 1997. These districts include the cities of Arlington (amount $341,663), Grand Prairie (amount $170,584), Mesquite (amount $142,455), and North Richland Hills (amount $116,134). These allocations will be assigned from the small urban transit district funds. If less than $73,752,134 is appropriated, the amounts allocated by this clause will be reduced proportionately. If more than $73,752,134 is appropriated, an urban transit district to which this clause applies is not eligible for additional funds under paragraph (2) or (3) of this subsection.(ii) One-half of the funds allocated to small urban transit districts will be based on population by using the latest census data available from the U.S. Census Bureau for each small urbanized area relative to the sum of all small urbanized areas. One-half of the funds allocated to small urban transit districts will be performance-based allocations.(iii) One-half of the funds allocated to large urban transit districts will be based on population by using the latest census data available from the U.S. Census Bureau for each large urbanized area relative to the sum of all large urbanized areas served by urban transit districts. A large urban transit district with an urbanized area population of 300,000 or more will have the population adjusted to reflect a population level of 299,999. One-half of the funds allocated to large urban transit districts will be performance-based allocations.(iv) An urban transit district is eligible for a performance-based allocation under clause (ii) or (iii) of this subparagraph, as appropriate, if it is in good standing with the department and has no deficiencies and no findings of noncompliance. The commission will award the performance-based funding based on the following weighted criteria: 30 percent for local funds per operating expense, 20 percent for ridership per capita, 30 percent for ridership per revenue mile, and 20 percent for revenue miles per operating expense. These criteria may be calculated using the urban transit district's annual audit for the previously completed fiscal year, data from other sources, or from the department's records.(v) The public transportation division director commission, in any year, may waive or approve an alternate calculation of an allocation under this paragraph to an urban transit district or a group of urban transit districts to mitigate unique conditions that negatively affect the performance of the district or group, including natural disaster, pandemic, or another event that specifically affects the service level of the district or group. The alternate calculation may be used in subsequent years at the discretion of the department.(B) Rural funds allocated under this paragraph will be allocated only to rural transit districts in rural areas based upon need and performance as described in clauses (i) and (ii) of this subparagraph.(i) Sixty-five percent of the funding under this subparagraph will be allocated to rural transit districts as a need based allocation giving consideration to population weighted at 75 percent and on land area weighted at 25 percent for each rural area relative to the sum of all rural areas.(ii) Thirty-five percent of the funding under this subparagraph will be allocated to rural transit districts as a performance based allocation. A rural transit district is eligible for funding under this clause if it is in good standing with the department and has no deficiencies and no findings of noncompliance. The commission will award the funding by giving equal consideration to local funds per operating expense, ridership per revenue mile, and revenue miles per operating expense. These criteria may be calculated using the rural transit district's annual audit for the previously completed fiscal year, data from other sources, or from the department's records.(iii) The public transportation division director commission, in any year, may waive or approve an alternate calculation under this paragraph to a rural transit district or a group of rural transit districts to mitigate unique conditions that negatively affect the performance of the district or group, including natural disaster, pandemic, or another event that specifically affects the service level of the district or group. The alternate calculation may be used in subsequent years at the discretion of the department.(C) Funds allocated under this section and any local funds may be used for any transit-related activity except that an urban transit district not included in a transit authority but located in an urbanized area that includes one or more transit authorities may use funds allocated under this section only to provide up to:(i) 65 percent of the local share requirement for federally financed projects for capital improvements;(ii) 50 percent of the local share requirement for projects for operating expenses and administrative costs;(iii) 50 percent of the total cost of a public transportation capital improvement, if the urban transit district certifies that federal money is unavailable for the proposed project and the commission finds that the proposed project is vitally important to the development of public transportation in the state; and(iv) 65 percent of the local share requirement for federally financed planning activities.(D) Subject to available appropriation, no award to an urban or rural transit district under this paragraph will be less than 90 percent of the award to that transit district for the previous fiscal year. All allocations under subsection (b)(1)(A) and (B) of this section are subject to revision to comply with this standard.(2) The commission will award on a pro rata basis, competitively, or using a combination of both, any appropriated amount that remains after other allocations made under this subsection. Funds awarded under this paragraph may be used to address transit district service and capital development needs, changes in transit district boundaries, unforeseen funding anomalies, emergency services response and recovery needs, changes in economic conditions or availability of assets significantly impacting current year operational expenses, or other needs determined by the commission. Awards under this paragraph are not subject to subsection (b)(1)(D) of this section in succeeding fiscal years.(c) Change in service area. If part of an urban or rural transit district's service area is changed due to declaration by the U.S. Census Bureau, or if the service area is otherwise altered, the department and the urban or rural transit district shall negotiate an appropriate adjustment in the funding awarded to that urban or rural transit district for that funding year or any subsequent year, as appropriate. This negotiated adjustment is not subject to subsection (b)(1)(D) of this section.(d) Unobligated funds. Any funds under this section that an urban or rural transit district has not applied for before the November commission meeting in the second year of a state fiscal biennium may be administered by the commission under the discretionary program described in §31.13 of this subchapter (relating to Discretionary Program).(e) Returned funds. Any funds under this section that an urban or rural transit district agrees to return to the department, if eligible for reallocation, will be administered by the commission under the discretionary program described in §31.13 of this subchapter.(f) Application. To receive funds allocated under this section, a transit district must first submit a completed and certified application, in the form prescribed by the department. The application must include a statement that the proposed public transportation project is consistent with continuing, cooperating, and comprehensive regional transportation planning implemented in accordance with 49 U.S.C. §5301. Federal approval of a proposed public transportation project will be accepted as a determination that all federal planning requirements have been met.(g) Project evaluation. In evaluating a project under this section, the department will consider the need for fast, safe, efficient, and economical public transportation and the approval of the FTA, or its successor.</content><note type="source"><p>Source Note: The provisions of this §31.11 adopted to be effective November 23, 1989, 14 TexReg 5938; amended to be effective January 10, 1992, 17 TexReg 47; amended to be effective January 13, 1994, 19 TexReg 90; amended to be effective March 22, 1996, 21 TexReg 2096; amended to be effective March 26, 1998, 23 TexReg 3044; amended to be effective February 15, 2001, 26 TexReg 1365; amended to be effective April 17, 2003, 28 TexReg 3080; amended to be effective September 1, 2004, 29 TexReg 6734; amended to be effective June 20, 2005, 30 TexReg 3606; amended to be effective July 20, 2006, 31 TexReg 5675; amended to be effective February 21, 2008, 33 TexReg 1380; amended to be effectiveApril 19, 2012, 37 TexReg 2696; amended to be effective November 21, 2013, 38 TexReg 8253; amended to be effective December 6, 2017, 42 TexReg 6815; amended to be effective May 15, 2024, 49 TexReg 3375.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c31/scB/s31.13"><num value="31.13">§31.13</num><heading>Discretionary Program</heading><content>(a) Purpose. Transportation Code, Chapter 456 allows the commission to allocate any funds not obligated in accordance with the terms of §31.11 of this subchapter (relating to Formula Program) on a discretionary basis. This section sets out the policies, procedures, and requirements for that discretionary allocation.(b) Discretionary allocation. In allocating funds in excess of the amounts listed in 31.11(b)(1) of this subchapter, the commission will calculate the allocation on a pro rata basis, competitive basis, or combination of pro rata and competitive basis, or as a one-time award to a local public entity, other than an authority, or to a private nonprofit organization that has the power to operate or maintain a public transportation system. Funds may be used for:(1) the same purposes as described in §31.11(b) of this subchapter; and(2) 80 percent of the cost of capital expenditures associated with ridesharing activities.(c) Application. To receive funds under this section, an entity must first submit a completed and certified application, in the form prescribed by the department. The application must include:(1) a description of the project, including estimates of the population that would benefit from the project and the anticipated date of project completion;(2) a statement of the estimated cost of the project, including estimates of the federally financed portions of the project costs; and(3) certifications that:(A) local funds are available for local share requirements if required and that the proposed project is consistent with comprehensive regional transportation plans (federal approval of a proposed public transportation project will be accepted as a determination that all federal planning requirements have been met);(B) federal funds are not available under §31.11 of this subchapter;(C) equipment furnished by the applicant in connection with ridesharing activities will be used primarily for commuting purposes;(D) ridesharing activities will be operated on a nonprofit basis without state subsidies and with accountability in operating the van pool equipment; and(E) any funding available through the United States Department of Transportation to participate in the capitalized portion of state and locally supported ridesharing activities will be applied for and utilized to supplement the availability of local resources for the recapitalization of van pool equipment.(d) Project evaluation. In evaluating a project under this section, the department will consider the need for fast, safe, efficient, and economical public transportation and the approval of the FTA, or its successor.</content><note type="source"><p>Source Note: The provisions of this §31.13 adopted to be effective November 23, 1989, 14 TexReg 5938; amended to be effective January 10, 1992, 17 TexReg 47; amended to be effective March 22, 1996, 21 TexReg 2096; amended to be effective March 26, 1998, 23 TexReg 3044; amended to be effective February 15, 2001, 26 TexReg 1365; amended to be effective April 17, 2003, 28 TexReg 3080; amended to be effective September 1, 2004, 29 TexReg 6734; amended to be effective November 21, 2013, 38 TexReg 8253; amended to be effective May 15, 2024, 49 TexReg 3375.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c31/scC"><num value="C">SUBCHAPTER C</num><heading>FEDERAL PROGRAMS</heading><section identifier="/us/state/tx/tac/t43/p1/c31/scC/s31.16"><num value="31.16">§31.16</num><heading>Section 5309 Grant Program</heading><content>(a) Applicability. The United States Congress revised 49 U.S.C. §5309, with the passage of Moving Ahead for Progress in the 21st Century (MAP-21). MAP-21 significantly changes the purpose and eligible activities. This section applies only to subrecipients receiving grants with funds appropriated under federal authorization bills prior to the enactment of MAP-21.(b) Purpose. Section 5309, Federal Transit Act (49 U.S.C. §5309), authorizes the Secretary of the U.S. DOT to make capital investment grants.(c) Eligible recipients. Section 5309 funds are available to states and local public entities.(d) Department role. The department acts as the designated recipient for §5309 statewide grants. As the administering agency the department will:(1) develop application materials and disseminate information to prospective applicants and other interested parties;(2) allocate the available program funds in a fair and equitable manner based on the purpose as specified in the grant;(3) develop evaluation criteria and select projects for funding so that:(A) for vehicle replacement, each eligible subrecipient will receive a proportional share of available funding based on the remaining useful life of its fleet and the cost of replacing its fleet; and(B) for non-vehicle replacement, each eligible subrecipient will receive a proportional share of available funding;(4) prepare the state's funding application and submit that material to the FTA for approval;(5) negotiate and execute contracts with subrecipients;(6) prepare requests for federal reimbursement and process payment requests from subrecipients;(7) monitor and evaluate the progress of local projects, including compliance with federal regulations; and(8) provide technical assistance to subrecipients as necessary.(e) Local share requirements. Section 5309 grants require a federally mandated match amount as the local share. FTA program funds cannot be used as the local share. Eligible match sources include local or state programs, unrestricted federal funds, and transportation development credits. Donations are eligible as local share if the value is documented.</content><note type="source"><p>Source Note: The provisions of this §31.16 adopted to be effective August 14, 1989, 14 TexReg 3704; amended to be effective July 20, 1992, 17 TexReg 4891; 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; amended to be effective November 21, 2013, 38 TexReg 8253.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c31/scC/s31.21"><num value="31.21">§31.21</num><heading>Section 5303 Grant Program</heading><content>(a) Purpose. Section 5305, Federal Transit Act (49 U.S.C. §5305), authorizes the Secretary of the U.S. DOT to make grants to benefit metropolitan planning organizations (MPOs) to support the development of transportation plans and programs as defined in §5303 and §5305. Funds apportioned to the states for this purpose must be allocated to the MPOs.(b) Eligible recipients. Section 5303 funds are available only to MPOs. Other entities may participate in the program through contracts with MPOs.(c) Department role. The department acts as the designated recipient for §5303 metropolitan planning grants. The department will request the transfer of the annual FTA §5303 apportionment from the Federal Transit Administration to the Federal Highway Administration (FHWA) to support the required metropolitan planning program, which will be administered by the department as a consolidated grant program from FHWA.</content><note type="source"><p>Source Note: The provisions of this §31.21 adopted to be effective August 14, 1989, 14 TexReg 3704; amended to be effective July 20, 1992, 17 TexReg 4891; 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; amended to be effective November 21, 2013, 38 TexReg 8253.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c31/scC/s31.22"><num value="31.22">§31.22</num><heading>Section 5304 Grant Program</heading><content>(a) Purpose. Section 5305, Federal Transit Act (49 U.S.C. §5305), authorizes the Secretary of the U.S. DOT to make grants to states for planning and research activities as defined in §5304 and §5305.(b) Eligible recipients. Section 5304 funds are available only to the state. Other entities may participate in the program through contracts with the state.(c) Local share requirements. Section 5304 grants require a 20 percent match, which may be in the form of cash, transportation development credits, or in-kind services. Certain human resource program activities may have a lower match requirement in accordance with FTA Circular 8100.1C, or its latest version. U.S. DOT program funds cannot be used as the local share.(d) Department role. The department will prepare the state's funding application and submit the material to the FTA for approval.</content><note type="source"><p>Source Note: The provisions of this §31.22 adopted 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; amended to be effective November 21, 2013, 38 TexReg 8253.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c31/scC/s31.26"><num value="31.26">§31.26</num><heading>Section 5307 Grant Program</heading><content>(a) Purpose. Section 5307, Federal Transit Act (49 U.S.C. §5307), authorizes the Secretary of the U.S. DOT to make capital and operating grants for public transportation projects in urbanized areas. (b) Eligible recipients. Section 5307 funds for urbanized areas with populations of 200,000 or more are dispensed by the FTA directly to eligible recipients designated by the governor or the governor's designee. Section 5307 funds for urbanized areas with populations of less than 200,000 may be dispensed by the governor or may be dispensed by FTA directly to eligible recipients designated by the governor or the governor's designee. (c) Allocation of funds. For the urbanized areas with populations of 200,000 or more, funds are apportioned to the urbanized area by the FTA. For the urbanized areas with populations of less than 200,000, funds are apportioned to the governor for allocation to those areas. This section governs the allocation of those funds if the governor delegates this responsibility to the commission or to the department. (d) Department role. After notification from the FTA that the §5307 governor's apportionment funds are available, the department will notify the FTA of the amounts allocated to each recipient from the governor's apportionment and will notify the recipient of that amount. (e) Funding distribution. The department will allocate §5307 funds in the following manner. (1) Each recipient will receive the amount published in the Federal Register under the §5307 formula apportionment, except as provided in paragraphs (2) - (4) of this subsection. (2) Any deobligated funds still available to Texas from previous years will be distributed to recipients on a pro rata basis except for urbanized areas that are under 200,000 in population and that are located within the planning boundaries of a transportation management area (a metropolitan planning organization with over 200,000 population, as defined by the U.S. Census). (3) Recipients must notify the department if allocated funds are not needed in a given year. These funds may be distributed to the remaining recipients on a pro rata basis or distributed at the department's discretion. (4) The department may review grant balances from previous years and adjust individual awards as needed. Adjustments that increase the overall available apportionment will be distributed to all recipients on a pro rata basis. An adjustment under this paragraph and any resulting distribution do not apply to an urbanized area that is under 200,000 in population and that is located within the planning boundaries of a transportation management area.</content><note type="source"><p>Source Note: The provisions of this §31.26 adopted to be effective August 14, 1989, 14 TexReg 3704; amended to effective July 20, 1992, 17 TexReg 4891; 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; amended to be effective November 21, 2013, 38 TexReg 8253.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c31/scC/s31.30"><num value="31.30">§31.30</num><heading>Section 5339 Grant Program</heading><content>(a) Purpose. Title 49 U.S.C. §5339 authorizes the Secretary of the U.S. DOT to make grants for bus and bus facilities.(b) Eligible recipients. Section 5339 funds are available to states and local public entities.(c) Department role. The department acts as the designated recipient for §5339 grants to §5307 transit districts in small urbanized areas and §5311 rural transit districts.(d) Small urban transit districts. The department will:(1) allocate the available program funds so that each eligible recipient will receive a proportional share of available funding based on the total vehicle miles reported to the department on an annual basis with no eligible recipient receiving less than one percent of the amount available;(2) notify the FTA of the results of the allocation calculations;(3) notify the small urban transit districts of the results of the allocation calculations; and(4) authorize the small urban transit districts to apply directly with the FTA for the funds, due to their status as direct recipients under the FTA §5307 program.(e) Rural transit districts. The department will:(1) allocate the available program funds so that each eligible subrecipient will receive a proportional share of available funding based on the total vehicle miles reported to the department on an annual basis with no eligible subrecipient receiving less than one percent of the amount available;(2) develop application materials and disseminate information to eligible subrecipients;(3) prepare the state's funding application and submit the application to the FTA for approval;(4) negotiate and execute contracts with subrecipients;(5) prepare requests for federal reimbursement and process payment requests from subrecipients;(6) monitor and evaluate the progress of local projects, including compliance with federal regulations; and(7) provide technical assistance to subrecipients as necessary.(f) Eligible assistance categories. Eligible projects are those listed in FTA Circular 5100.1 or its latest version.(g) Link to asset management plan. At such time as the department implements the requirement of a transit asset management plan, recipient or subrecipient projects must be linked to the asset management plan required by §31.51 of this chapter (relating to Asset Management) and 49 U.S.C. §5326.(h) Reimbursement rates. For reimbursement:(1) federal funds may be used to defray up to 80 percent of the cost of eligible capital expenditures;(2) the federal share may increase to up to 85 percent of the net project cost for a project that involves acquiring vehicles for the purpose of complying with the Americans with Disabilities Act or the Clean Air Act; and(3) the federal share may increase to up to 90 percent for incremental costs related to compliance with the Clean Air Act in areas of air quality non-attainment or with the Americans with Disabilities Act.(i) Local share requirements. The non-federal share may be provided by:(1) cash from state or local governments;(2) cash from non-government sources other than revenues from providing public transportation services;(3) revenues from the sale of advertising and concessions;(4) an undistributed cash surplus, a replacement or depreciation cash fund or reserve, or new capital;(5) service agreements with a state, local, or private social service organization; or(6) transportation development credits.</content><note type="source"><p>Source Note: The provisions of this §31.30 adopted to be effective November 21, 2013, 38 TexReg 8253; amended to be effective December 6, 2017, 42 TexReg 6815.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c31/scC/s31.31"><num value="31.31">§31.31</num><heading>Section 5310 Grant Program</heading><content>(a) Purpose. Title 49 U.S.C. §5310 authorizes the Secretary of the U.S. DOT to make grants for the provision of transportation services meeting the special needs of seniors and individuals with disabilities. The governor has designated the department to administer the §5310 program.(b) Goal and objectives. The department's goal in administering the §5310 program is to promote the availability of cost-effective, efficient, and coordinated passenger transportation services planned, designed, and carried out to meet the special needs of seniors and individuals with disabilities when public transportation is insufficient, inappropriate, or unavailable, using the most efficient combination of financial and other resources. To achieve this goal, the department's objectives are to:(1) promote the development and maintenance of a network of transportation services for seniors and individuals with disabilities throughout the state, in partnership with local stakeholders;(2) fully integrate the §5310 program with other federal, state, and local resources and programs that are designed to serve similar populations;(3) promote public transportation projects that exceed the requirements of the Americans with Disabilities Act (ADA);(4) promote public transportation projects that decrease the reliance of individuals with disabilities on ADA complementary paratransit services;(5) promote and encourage local participation, especially by seniors and individuals with disabilities or their advocates, in decision-making;(6) improve the efficiency, effectiveness, and safety of §5310 transit systems through the provision of technical assistance; and(7) include private sector operators in the overall plan to provide transportation services for seniors and individuals with disabilities.(c) Department role.(1) The department acts as the designated recipient for all §5310 funds appropriated to:(A) a rural area;(B) an urbanized area with less than 200,000 population; and(C) an urbanized area with a population of 200,000 or more, on request of the metropolitan planning organization of the urbanized area and concurrence by the commission.(2) The department recognizes the subrecipients as partners who shall retain control of daily operations. As the administering agency, the department will:(A) develop application materials and disseminate information to prospective applicants and other interested parties;(B) develop evaluation criteria and select projects for funding, with input from local entities and local individuals, in accordance with the standards set forth in subsection (i) of this section;(C) prepare the state's annual program of projects and funding application and submit that material to the FTA for approval;(D) negotiate and execute contracts with local §5310 recipients;(E) prepare requests for federal reimbursement and process payment requests from §5310 recipients;(F) monitor and evaluate the progress of ongoing transportation operations, including compliance with federal regulations and coordination of services; and(G) provide technical assistance to §5310 recipients to aid them in improving and coordinating transit services.(3) Failure to expend funds in a timely manner may cause the department to terminate the grant and re-award the unobligated balance to another project.(d) Eligible recipients.(1) Existing rural transit districts and urban transit districts serving a population of less than 200,000, local public entities, private non-profit organizations, state and local government authorities that coordinate services for seniors and individuals with disabilities, or private taxi companies that provide shared-ride taxi service to the public or to special categories of users (such as seniors or individuals with disabilities) are eligible recipients of funds.(2) For an area included in a rural or urban transit district's service area for which the existing transit district is not willing or able to provide the transportation, the director may choose a local public entity or a private organization as a recipient to receive §5310 funds. Private taxi companies that provide shared-ride taxi service to the public or to special categories of users (such as seniors or individuals with disabilities) on a regular basis are also eligible recipients. Any recipient that is not a transit district shall coordinate §5310 service with the existing transit district to ensure service is complementary to and not competitive with existing services.(3) If the department is the designated recipient for an urbanized area with 200,000 population or more, a recipient for that area will be selected from local transportation providers who are transit authorities or eligible alternate recipients under this program.(e) Eligible assistance categories. The following categories of expenses are eligible for federal reimbursement under the §5310 program.(1) State administrative expenses. The department may use up to 10 percent of the annual federal program apportionment to defray its expenses incurred for the administration of the §5310 program. State administrative expenses do not require a non-federal match.(2) Capital expenses.(A) With department concurrence, eligible items include:(i) buses;(ii) vans or other smaller accessible vehicles;(iii) the acquisition of transportation services under a contract, lease, or other arrangement;(iv) mobility management;(v) curb cuts, sidewalks, pedestrian signals or other accessible features;(vi) radios and communication equipment;(vii) vehicle shelters;(viii) lifts, ramps, and securement devices;(ix) vehicle rehabilitation, remanufacture, or overhaul;(x) computer hardware and software;(xi) initial component installation costs;(xii) vehicle procurement, testing, inspection, and acceptance costs;(xiii) vehicle extended warranties that do not exceed industry standards;(xiv) the lease of equipment, provided that the local recipient determines a lease is more cost effective than the purchase of equipment after considering management efficiency, availability of equipment, staffing capabilities, and guidelines on capital leases as contained in 49 C.F.R. Part 639;(xv) transit-related intelligent transportation systems;(xvi) the introduction of new technology, through innovative and improved products, into mass transportation; and(xvii) the acquisition of preventive maintenance services and vehicle parts associated with preventive maintenance services.(B) For reimbursement:(i) federal funds may be used to defray up to 80 percent of the cost of eligible capital expenditures;(ii) the federal share may increase to up to 85 percent of the net project cost for a project that involves acquiring vehicles for the purpose of complying with the Americans with Disabilities Act or the Clean Air Act; and(iii) the federal share may increase to up to 90 percent for incremental costs related to compliance with the Clean Air Act in areas of air quality non-attainment or with the Americans with Disabilities Act.(3) Operating expenses.(A) Operating expenses are costs that are directly tied to systems operations, such as costs for fuel, oil, and replacement parts, and driver, mechanic, and dispatcher salaries.(B) Operating expenses may be reimbursed at 50 percent of net operating expense.(f) Local share requirements.(1) Eligible sources to satisfy local share requirements may be derived from the following:(A) an undistributed cash surplus, or a replacement or depreciation cash fund or reserve;(B) a service agreement with a state or local social service or workforce agency, or a private social service organization;(C) amounts appropriated or otherwise made available to a U.S. department or agency that are eligible to be expended for transportation;(D) funds to carry out the federal lands highways program established by 23 U.S.C. §204;(E) funds available under §403(a)(5)(C)(vii) of the Social Security Act (42 U.S.C. §603(a)(5)(C)(vii));(F) in-kind contributions, volunteer services, and donations attributable to the project if the value is documented and previously approved by the department; or(G) transportation development credits, with prior department approval.(2) Funds from any other U.S.DOT program are not eligible for use as local matching funds.(g) Funding distribution. After the state administrative expenses described in subsection (e)(1) of this section are set aside, funds will be allocated on a formula basis as provided by this subsection.(1) For urbanized areas with a population less than 200,000, 25 percent of the available funds will be allocated equally, using department district boundaries of the districts that include such an area. To allocate the remaining 75 percent, the department will:(A) calculate the population of seniors and individuals with disabilities in each of those urbanized areas using the latest census figures available from the United States Census Bureau; and(B) divide each urbanized area's population of seniors and individuals with disabilities, as determined under subparagraph (A) of this paragraph, by the state's total population for urbanized areas with less than 200,000 population to determine that urbanized area's formula allocation.(2) For rural areas, 25 percent of the available funds will be allocated equally, using department district boundaries of the districts that include such an area. To allocate the remaining 75 percent, the department will:(A) calculate the population of seniors and individuals with disabilities in each department district using the latest census figures for counties available from the United States Census Bureau; and(B) divide each department district's subtotal of the population of seniors and individuals with disabilities, as determined under subparagraph (A) of this paragraph, by the state total of that population in rural areas to determine the district's formula allocation.(3) For urbanized areas with 200,000 population or more for which the department is the designated recipient, funds will be allocated to the respective urbanized area based on the federal apportionment as published in the Federal Register.(4) Residual funds.(A) Urbanized areas with populations of less than 200,000 and rural areas. On completion of the project selection procedures described in subsection (i) of this section, if any portion of the allocation described in paragraph (1) or (2) of this subsection is not needed, the commission or the executive director may distribute the balances, as appropriate, to satisfy unmet needs in other areas of the state. This action may require the department to transfer funds, at the state level, between urbanized and rural areas to fully obligate the state's apportionment.(B) Urbanized areas with populations of 200,000 or more. On completion of the project selection procedures described in subsection (i) of this section, any unallocated funds for urbanized areas with populations of 200,000 or more will remain in that urbanized area until allocated at a future date.(h) Application requirements. A prospective applicant must submit an application for §5310 grant funds at the time specified by the department. The application must document the need and demand for passenger transportation services for seniors and individuals with disabilities, and also must document inclusion of the project in the coordinated public transit-human service transportation plan.(i) Project selection. To select projects, the department will consult with all local parties, including metropolitan planning organizations, and follow the procedures set out in this subsection.(1) The department will establish public outreach processes involving local stakeholders. In an effort to streamline decision-making processes and maximize coordination opportunities, the department may choose to combine contiguous department district boundaries for stakeholder engagement, project selection, and public outreach. The stakeholder groups should include representatives of the following groups, further defined in FTA Circular 9070.1G, or its latest version:(A) transportation partners;(B) passengers and advocates;(C) human service and work force agencies; and(D) others, such as emergency management agencies.(2) In recommending projects, the department will consider the program goals and objectives set forth in subsection (b) of this section and consider projects that:(A) leverage existing resources and promote innovation;(B) are the only public transportation option for the proposed service area;(C) are sustainable over time;(D) demonstrate efficient use of resources;(E) involve partnerships that include organizations; or(F) provide service continuity.(3) At least 55 percent of the funds allocated by district boundaries or combination of district boundaries shall be used for capital expenses.(4) Not more than 45 percent of the funds allocated by district boundaries or combination of district boundaries may be used for operating expenses. This cap applies to both urbanized areas and rural areas, respectively.(5) The requirements of this subparagraph apply to all projects recommended for funding.(A) There must be a demonstrated need for any capital purchases. Examples of items that may be used to demonstrate need include a needs assessment that documents the demand for new services, a vehicle inventory that establishes the need for replacement of older equipment, dispatcher logs that document requests for service that cannot be met with existing equipment, and purchase of service contracts that substantiate the need for additional vehicles.(B) The proposed applicant must be able to demonstrate its financial and managerial capability to carry out the project. Examples of items that may be used to demonstrate the capability include audited financial statements and review letters from grantor agencies.(C) Consideration should be given to the applicant's past efforts to coordinate services and related activities with other local entities. Examples showing those efforts include contracts that outline purchase of service agreements, shared maintenance or dispatching functions, and joint training initiatives.(D) There should be evidence of local support for the proposal. Examples of that evidence include resolutions by local governing bodies and endorsement letters from other organizations or individuals.(E) The project must be included in the coordinated public transit-human service transportation plan.(6) Based on stakeholder input, department personnel assigned to cover district areas will rank projects in priority order.(7) On receipt of the applications recommended for funding, the director, or the director's designee, will review all funding requests for completeness and compliance with all statutory and program administrative requirements. Following commission approval, the department will negotiate a contract with the selected local entities and organizations to implement the projects selected for funding.(j) Vehicle leasing. Vehicles acquired under the §5310 program may be leased to other entities, such as local public entities or agencies, other private nonprofit agencies, or private for-profit operators. The lessee shall operate the vehicles on behalf of the §5310 recipient and provide the transportation services as described in the original grant application.(k) Incidental vehicle use. A vehicle that is purchased with §5310 funds may be used for incidental uses that do not conflict with the primary use of the vehicle to provide transportation services for seniors and individuals with disabilities. Examples of permissible incidental uses are allowing riders who are neither senior nor an individual with a disability to occupy vacant seats, delivering meals, or using the vehicle for other public transportation activities when it is not required for seniors or individuals with disabilities project purposes. The vehicle shall not be altered in any way to accommodate incidental use.(l) Private for-profit transportation business participation. Taxi companies that provide only exclusive-ride service are not eligible subrecipients; however, they may participate in the §5310 program as contractors. Exclusive-ride taxi companies may receive §5310 funds to purchase accessible taxis under contract with an eligible subrecipient.</content><note type="source"><p>Source Note: The provisions of this §31.31 adopted to be effective November 21, 2013, 38 TexReg 8253; amended to be effective December 6, 2017, 42 TexReg 6815.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c31/scC/s31.36"><num value="31.36">§31.36</num><heading>Section 5311 Grant Program</heading><content>(a) Purpose. Section 5311, Federal Transit Act (49 U.S.C. §5311), authorizes the Secretary of the U.S. DOT to make grants for public transportation projects in rural areas. The department has been designated by the governor to administer the §5311 program.(b) Goal and objectives. The department's goal in administering the §5311 program is to promote the availability of cost-effective, efficient, and coordinated passenger transportation services to the general public in rural areas using the most efficient combination of financial and other resources. To achieve this goal, the objectives of the department are to:(1) promote the development and maintenance of a network of general public transportation services, including intercity services, in rural areas throughout the state, in partnership with local officials;(2) fully integrate the §5311 program with other federal, state, and local resources that are designed to serve rural populations;(3) improve the efficiency, effectiveness, and safety of §5311 systems through the provision of technical assistance;(4) include private sector operators in the overall plan to provide public transportation services; and(5) minimize negative impacts from changes in public transportation district boundaries.(c) Department role. The department acts as the designated recipient for all §5311 funds apportioned to the state and has an oversight responsibility for all rural transit services within the state. The department, however, recognizes the subrecipients as partners who shall retain control of daily operations. As the administering agency, the department will:(1) develop application materials and disseminate information to prospective applicants and other interested parties;(2) allocate the available program funds in a fair and equitable manner as described in subsection (f) of this section (the department will not provide §5311 funds to more than one transit system in a geographical area);(3) develop evaluation criteria and select projects for funding;(4) prepare the state's annual program of projects and funding application and submit that material to the FTA for approval;(5) negotiate and execute contracts with local §5311 subrecipients;(6) prepare requests for federal reimbursement, and process payment requests from §5311 subrecipients;(7) monitor and evaluate the progress of ongoing transportation operations, including compliance with federal regulations; and(8) provide technical assistance to §5311 subrecipients to aid them in improving transit services.(d) Eligible subrecipients. State agencies, local public entities, private nonprofit organizations, Native American tribes and organizations, and operators of public transportation services are eligible to receive §5311 funds through the department. Private for-profit operators of public transportation services may participate in the program through contracts with eligible subrecipients. An entity must be a rural transit district to receive §5311 funds except that private for-profit operators of public transportation services and entities that are not rural transit districts are eligible to receive §5311 funds through the department under the intercity bus program, as set forth in subsections (f)(2) and (h) of this section.(e) Eligible expenses. The department will follow FTA Circular 9040.1G, or its latest version, to determine eligible §5311 program expenses.(f) Allocation of funds. As part of its administration of the §5311 program, the department is charged with ensuring that there is a fair and equitable distribution of funds within the state (FTA Circular 9040.1G or its latest version). After receipt of annual §5311 program apportionment totals, the department will allocate §5311 funds in the following manner and order.(1) State Administration. The department will use not more than 10 percent of the annual federal apportionment to defray its expenses incurred for the administration of the §5311 program.(2) Intercity bus allocation. Unless the chief executive officer of the state or the executive officer's authorized designee certifies to the Secretary of the U.S. DOT that the intercity bus service needs of the state are being adequately met, the department will allocate not less than 15 percent of the annual §5311 federal apportionment for the development and support of intercity bus transportation facilities and services providing access and connections to rural areas. If it is determined that all or a portion of the set-aside monies is not required for intercity bus service, those funds will be applied to the formula apportionment process described in paragraph (4) of this subsection. Procedures for determining if a certification of adequacy is warranted are as follows.(A) The department will review all data on intercity bus service availability, including outstanding requests from intercity operators and rural transit districts, and levels of service.(B) The department will consult with affected intercity bus service providers and rural transit districts.(C) Based on the findings of subparagraphs (A) and (B) of this paragraph, the commission, the governor or the governor's authorized designee may certify to the adequacy of intercity bus service.(3) Discretionary allocation. After the allocation of funds under paragraphs (1) and (2) of this subsection, up to 10 percent of the remaining funds will be available to the commission for award at any time during the fiscal year on a pro rata basis, competitively, a combination of both pro rata basis and competitively, or as a one-time award. Funds may be used to address rural transit district service and capital development needs, changes in transit district boundaries, unforeseen funding anomalies, emergency services response and recovery needs, changes in economic conditions or availability of assets significantly impacting current year operational expenses, or other needs as determined by the commission.(4) Rural Transit District Total Allocation. Excluding the amounts allocated under paragraphs (1), (2), and (3) of this subsection, the commission will allocate to rural transit districts in accordance with this paragraph the balance of the annual §5311 federal apportionment and any program funds that were available for award in the previous fiscal year under paragraph (3) of this subsection but not awarded.(A) Subrecipients will receive a baseline allocation. The amount of a subrecipient's baseline allocation is the amount of §5311 funds that the subrecipient received for federal Fiscal Year 2021 and will not be reduced by the performance adjustment under paragraph (5) of this subsection.(B) Each rural transit district will receive a subrecipient growth allocation amount based on proportional share using the following criteria:(i) population of the district - 50 percent;(ii) land area of the district - 25 percent;(iii) total vehicle miles in the district - 15 percent; and(iv) number of low-income individuals residing in the district - 10 percent.(C) For the purposes of subparagraph (B)(i) of this paragraph, population is determined using the most recent federal decennial census except that beginning September 1, 2027, the director may choose to use population information from the Texas Demographic Center for periods between the publication of federal decennial census information.(5) Performance Adjustment. The total allocation computed for a rural transit district under paragraph (4) of this subsection is subject to adjustment for performance in accordance with this paragraph, except as provided by subparagraph (A) of that paragraph.(A) The performance measures used for performance adjustments under this paragraph are:(i) the rural transit district's ridership increasing by two percent or more; and(ii) the district's operating costs per total vehicle hours not exceeding the annual average of those costs for the district, plus one standard deviation, computed over a 10-year period but excluding any year in which a federal major disaster declaration was applicable to the district.(B) For each performance measure not achieved, a rural transit district's total allocation will be reduced by five percent.(C) A rural transit district that achieves both performance measures will receive an additional allocation amount computed by dividing the total amount of reductions for all under subparagraph (B) of this paragraph by the total number of rural transit districts that achieve both performance measures.(D) The director, in any year, may waive the application of the performance adjustment under this paragraph to a rural transit district or a group of rural transit districts based on unique conditions that negatively affect the performance of the district or group, including natural disaster, pandemic, or another event that specifically affects the service level of the district or group.(6) Census Adjustment.(A) If part of a transit district's service area is changed due to declaration by the United States Census Bureau or the service area is otherwise altered, the department and that subrecipient shall negotiate an appropriate adjustment in the funding year or any subsequent year, using population and land area factors.(B) If a previously designated urbanized area is declared rural by the United States Census Bureau, a public transportation subrecipient serving that area must apply for funds in accordance with paragraph (7) of this subsection.(7) Application and contract. Prior to receiving funds a subrecipient must complete and comply with all application requirements, rules, and regulations applicable to the §5311 program. A completed application must be submitted, in a form prescribed by the department, and document the need and demand for general public passenger transportation services. A contract shall be for no less than 12 months unless authorized by the department.(8) Review of Allocation Provisions. Prior to allocating §5311 funds for FY 2028, the department will review the allocations of §5311 funds for the preceding five fiscal years to determine whether paragraphs (1) - (5) of this subsection need to be adjusted for the fair and equitable distribution of those funds for FY 2028.(g) Program of projects. All projects for a fiscal year will be identified in accordance with the allocation rules included in subsection (f) of this section. After commission approval of the allocation, these projects will be submitted to the FTA as the annual program of projects for the fiscal year.(h) Intercity bus program solicitations. For funding from allocations made under subsection (f)(2) of this section, request for proposals will be issued for projects complying with FTA definitions of intercity bus transportation. To ensure a balanced investment in access and connectivity to intercity bus travel, the department may establish investment targets among eligible applicant groups or project types prior to solicitation of project proposals.(i) Federal emergency relief funds. If federal emergency relief funds are apportioned to the department through the §5311 program, the commission will distribute those funds in a manner consistent with relief funding objectives.</content><note type="source"><p>Source Note: The provisions of this §31.36 adopted to be effective September 21, 1989, 14 TexReg 4601; amended to be effective July 20, 1992, 17 TexReg 4891; amended to be effective September 23, 1993, 18 TexReg 6109; amended to be effective January 13, 1994, 19 TexReg 90; amended to be effective August 11, 1994, 19 TexReg 5876; amended to be effective March 22, 1996, 21 TexReg 2096; amended to be effective December 11, 1997, 22 TexReg 12092; amended to be effective February 15, 2001, 26 TexReg 1365; amended to be effective April 17, 2003, 28 TexReg 3080; amended to be effective September 1, 2004, 29 TexReg 6734; amended to be effective June 20, 2005, 30 TexReg 3606;amended to be effective July 20, 2006, 31 TexReg 5675; amended to be effective February 21, 2008, 33 TexReg 1380; amended to be effective October 21, 2010, 35 TexReg 9372; amended to be effective November 21, 2013, 38 TexReg 8253; amended to be effective December 6, 2017, 42 TexReg 6815; amended to be effective November 16, 2022, 47 TexReg 7562.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c31/scC/s31.37"><num value="31.37">§31.37</num><heading>Rural Transportation Assistance Program</heading><content>(a) Purpose. The Rural Transportation Assistance Program (RTAP) will foster the development of state and local capacity to meet the training and technical assistance needs of rural public transportation systems.(b) Objectives. The RTAP will develop training and training materials to improve the quality of information and technical assistance available to local transit operators, develop networks of transit professionals, and support the coordination of public, private, specialized, and human service transportation services.(c) Eligible recipients. Private consultants, universities, nonprofit organizations, state transit associations, state agencies, and transit operators are eligible to receive RTAP funds.(d) Program development and project selection. Budgetary requirements for the annual RTAP program of projects will be determined by the department. The department retains final approval for all RTAP projects. Projects will be selected as follows.(1) Research and statewide technical assistance projects may be competitively advertised and evaluated by department personnel. The department will establish evaluation criteria specific to each project to be funded under this paragraph.(2) Requests from individual transit operators for technical assistance funds will be reviewed and evaluated by the director, or the director's designee, based on the following criteria:(A) the demonstrated need for technical assistance, examples of which may include, but are not limited to, agency training plans and resolutions from local governments requesting feasibility studies;(B) the applicant's capability to benefit from technical assistance;(C) anticipated benefits of the project that can be replicated or used by other transit operators in the state;(D) evidence of local support for the proposal, if applicable, which includes, but is not limited to, resolutions by local governing bodies and endorsement letters from other organizations or individuals; and(E) the availability of funds.(e) Local matching requirements. The department may require RTAP subrecipients to defray a portion of project expenses either through cash payments or in-kind donations if:(1) a match requirement will allow the department to extend RTAP benefits to a broader audience; or(2) the benefits of a project are limited to that RTAP subrecipient and cannot be replicated or used by other transit operators in the state.</content><note type="source"><p>Source Note: The provisions of this §31.37 adopted to be effective August 11, 1994, 19 TexReg 5876; amended to be effective February 15, 2001, 26 TexReg 1365; amended to be effective February 21, 2008, 33 TexReg 1380; amended to be effective November 21, 2013, 38 TexReg 8253.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c31/scD"><num value="D">SUBCHAPTER D</num><heading>PROGRAM ADMINISTRATION</heading><section identifier="/us/state/tx/tac/t43/p1/c31/scD/s31.38"><num value="31.38">§31.38</num><heading>Public Transit Safety Program</heading><content>(a) Purpose. Title 49 U.S.C. §5329, authorizes the Secretary of the U.S. DOT to create and implement a National Public Transportation Safety Plan. Recipients must implement transit safety plans.(b) Affected agencies. A recipient of §5307 Urbanized Area Formula Grants must comply with 49 U.S.C. §5329.(c) Department role. As the certifying agency the department will:(1) draft and certify a public transportation agency safety plan for each transit system defined as a small public transportation provider under 49 C.F.R. Part 673.5;(2) provide small public transportation providers the ability to develop their own plan by opting out of a state prepared plan; and(3) annually certify all small public transportation provider safety plans for compliance with 49 C.F.R. Part 673 requirements regardless of whether they opt out of the department's drafting effort.(d) Small public transportation provider. A small public transportation provider must, by July 20, 2020, establish a public transportation agency safety plan that meets the requirements of 49 C.F.R. Part 673, and that at a minimum, satisfies the requirements of this subsection.(1) The public transportation agency safety plan, and subsequent updates, must be signed by the accountable executive and approved by the agency's board of directors, or an equivalent authority.(2) The public transportation agency safety plan must document the processes and activities related to safety management system implementation.(3) The public transportation agency safety plan must include performance targets based on the safety performance measures established under the National Public Transportation Safety Plan.(4) The public transportation agency safety plan must address all applicable requirements and standards as set forth in the FTA's Public Transportation Safety Plan. Compliance with the minimum safety performance standards authorized under 49 U.S.C. §5329(b)(2)(C) is not required until standards have been established through the public notice and comment process.(5) Each transit agency must establish a process and timeline for conducting an annual review and update of the public transportation agency safety plan.(6) A transit agency must maintain its public transportation agency safety plan in accordance with the recordkeeping requirements in 49 C.F.R. 673, Subpart D, Safety Plan Documentation and Recordkeeping.</content><note type="source"><p>Source Note: The provisions of this §31.38 adopted to be effective November 21, 2013, 38 TexReg 8253; amended to be effective February 19, 2020, 45 TexReg 1044.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c31/scD/s31.39"><num value="31.39">§31.39</num><heading>Required Internal Ethics and Compliance Program</heading><content>To be eligible to receive state or federal public transportation funds awarded by the commission after January 1, 2011, an entity must have adopted an internal ethics and compliance program that satisfies the requirements of §10.51 of this title (relating to Internal Ethics and Compliance Program) and must enforce compliance with that program.</content><note type="source"><p>Source Note: The provisions of this §31.39 adopted to be effective April 15, 2010, 35 TexReg 2858; amended to be effective January 6, 2011, 35 TexReg 11965.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c31/scD/s31.40"><num value="31.40">§31.40</num><heading>Public Involvement</heading><content>Recipients of state and federal public transportation funds through the department, as applicable, shall:(1) satisfy the certification requirements of 49 U.S.C. §5310(e)(2)(A)--Project Selection and Plan Development, Enhanced Mobility of Seniors and Individuals with Disabilities Program;(2) satisfy the certification requirements of 49 U.S.C. §5316(g)(3)(B)--Project Selection and Planning, Job Access and Reverse Commute Program, as governed by the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU);(3) satisfy the certification requirements of 49 U.S.C. §5317(f)(3)(B)--Project Selection and Planning, New Freedom Program, as governed by SAFETEA-LU; and(4) provide the annual FTA certifications and assurances.</content><note type="source"><p>Source Note: The provisions of this §31.40 adopted to be effective November 21, 2013, 38 TexReg 8253.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c31/scD/s31.41"><num value="31.41">§31.41</num><heading>Private Sector Participation</heading><content>In accordance with 49 U.S.C. §5306 and §5323(a)(1), recipients of state and federal public transportation funds shall to the maximum extent feasible provide for the participation of private companies engaged in public transportation.</content><note type="source"><p>Source Note: The provisions of this §31.41 adopted to be effective April 17, 2003, 28 TexReg 3080; amended to be effective February 21, 2008, 33 TexReg 1380.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c31/scD/s31.42"><num value="31.42">§31.42</num><heading>Standard Federal Requirements</heading><content>(a) Federal Transit Administration programs are subject to 2 C.F.R. Part 200 and Part 1201, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.(b) The programs are also subject to the program regulations promulgated by the Federal Transit Administration and applicable program circulars.(c) Changes to federal rules, regulations, and circulars applicable to the programs will be implemented and incorporated into the rules governing the specific program.</content><note type="source"><p>Source Note: The provisions of this §31.42 adopted to be effective November 21, 2013, 38 TexReg 8253; amended to be effective December 6, 2017, 42 TexReg 6815.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c31/scD/s31.43"><num value="31.43">§31.43</num><heading>Contracting Requirements</heading><content>(a) Purpose. This section describes contracting standards and related requirements for recipients of state and federal public transportation grant funds.(b) Standards. The standards contained in 2 C.F.R. Part 200 and Part 1201, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards apply to public transportation contracting activities. The department will monitor subrecipient compliance with those standards.(c) Subcontracts. Subrecipients shall furnish to the department notice of the intent to award a purchase order or contract to any individuals or organizations not a part of the subrecipient's organization when the amount of the purchase meets or exceeds the threshold level in the Government Code or Local Government Code (or greater than $25,000 for those entities not covered by the Government Code or Local Government Code) requiring formal competitive procurement. Purchases shall not be split out to stay below the threshold amount. No subcontract will relieve the subrecipient of the subrecipient's legal responsibilities to the department.</content><note type="source"><p>Source Note: The provisions of this §31.43 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; amended to be effective November 21, 2013, 38 TexReg 8253; amended to be effective December 6, 2017, 42 TexReg 6815.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c31/scD/s31.44"><num value="31.44">§31.44</num><heading>Procurement Requirements</heading><content>(a) Purpose. This section describes procurement standards and related requirements for recipients of state and federal public transportation grant funds.(b) Standards. The standards contained in 2 C.F.R. Part 200 and Part 1201, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards apply to public transportation procurement activities. All subrecipients shall maintain written procurement policies. Those policies shall, at a minimum, provide the following.(1) Goods, services and equipment purchases.(A) Goods, services, or equipment requiring formal competitive procurement in accordance with the applicable provisions in the Government Code or Local Government Code (greater than $25,000 for those entities not covered by the Government Code or Local Government Code) shall require sealed bids or proposals. Bids for computer and radio systems shall include all subcomponents necessary for the system to be operated in the unit cost. Exceptions will be allowed for those entities that are eligible to purchase items through the state open contract procedures.(B) Goods, services, or equipment not requiring formal competitive procurement in accordance with the applicable provisions in the Government Code or Local Government Code ($25,000 or less for those entities not covered by the Government Code or Local Government Code) do require the solicitation of quotes or offers from at least three sources. Purchases of goods, services, or equipment with a total cost of $3,000 or less do not require quotes or offers from at least three sources but are to be distributed equitably among qualified suppliers. The subrecipient shall retain a written record of these solicitations. Exceptions will be allowed for those entities that are eligible to purchase items through the state open contract procedures.(2) Real property.(A) Acquisition of real property shall be accomplished in accordance with federal and state statutes, regulations, and policies. In particular, projects that receive federal funds shall comply with the uniform relocation and real property acquisition standards established in 49 C.F.R. Part 25.(B) Specific standards for construction and rehabilitation projects will be negotiated as part of the project agreement between the department and the subrecipient.(3) Records retention. All procurement documents are public information and shall be maintained by the subrecipient for at least three years after grant closeout, or, in the case of a capital project, the life of the asset plus three years.(c) Department role.(1) Oversight and approval. The subrecipient shall furnish the department notice of the intent to award a purchase order or contract to any individuals or organizations not a part of the subrecipient's organization when the amount of the purchase meets or exceeds the threshold level in the Government Code or Local Government Code (or greater than $25,000 for those entities not covered by the Government Code or Local Government Code) requiring formal competitive procurement. Purchases shall not be split out to stay below the threshold amount. The subrecipient shall at a minimum provide the following documentation as requested by the department describing the procurement history:(A) the rationale the subrecipient used for the method of procurement;(B) the rationale the subrecipient used for the selection of contract type;(C) the reasons the bidder or proposer was selected; and(D) the methodology used to determine the contract price, including a cost justification.(2) Technical assistance. The department will provide vehicle specifications, guidance on competitive procurement procedures, and assistance in developing procurement documentation to a subrecipient upon request. If subrecipients choose to develop their own specifications, they assume full responsibility for ensuring that the specifications do not restrict competition.</content><note type="source"><p>Source Note: The provisions of this §31.44 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; amended to be effective November 21, 2013, 38 TexReg 8253; amended to be effective December 6, 2017, 42 TexReg 6815.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c31/scD/s31.45"><num value="31.45">§31.45</num><heading>Accounting and Financial Recordkeeping Requirements</heading><content>(a) Purpose. This section describes accounting and financial recordkeeping standards and related requirements for recipients of state and federal public transportation grant funds.(b) Standards. The contractor's financial management system shall meet or exceed the requirements of 2 C.F.R. Part 200 and Part 1201, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Those requirements include:(1) accurate, current, and complete disclosure of the financial transactions of each grant program in accordance with state and federal reporting requirements;(2) records that identify adequately the source and application of funds for grant-supported activities (records shall contain information pertaining to grant awards and authorization, obligations, commitments, assets, liabilities, outlays, and income);(3) effective control over and accountability for all funds, property, and other assets (the recipient shall adequately safeguard all assets and shall assure that they are used solely for authorized purposes);(4) comparison of actual with budgeted amounts for each contract, and relation of financial information to performance or productivity data, including the production of unit cost information;(5) procedures for determining the eligibility for reimbursement and proper allocation of cost;(6) accounting records that are supported by source documentation; and(7) a systematic method to assure timely and appropriate resolution of audit findings and recommendations.</content><note type="source"><p>Source Note: The provisions of this §31.45 adopted to be effective August 11, 1994, 19 TexReg 5880; amended to be effective April 17, 2003, 28 TexReg 3080; amended to be effective November 21, 2013, 38 TexReg 8253; amended to be effective December 6, 2017, 42 TexReg 6815.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c31/scD/s31.46"><num value="31.46">§31.46</num><heading>Reimbursement Procedures</heading><content>(a) Purpose. This section describes reimbursement procedures for recipients of state and federal public transportation grant funds.(b) Contractor responsibilities. Unless the department provides written authorization to the contrary, the contractor shall:(1) submit reimbursement requests in a timely fashion, with all supporting documentation as required by the department and specified in the project agreement;(2) submit a final project billing within 45 days of the termination date specified in the project agreement; and(3) make payments promptly to subcontractors and suppliers, and failure to do so shall be grounds for termination of the grant contract by the department (the department shall not be responsible for the debts of the contractor).(c) Department responsibilities. The department will reimburse contractors within 30 days of the receipt of properly prepared and documented requests for payment. Payment is contingent upon the availability of federal and state appropriated funds.</content><note type="source"><p>Source Note: The provisions of this §31.46 adopted to be effective August 11, 1994, 19 TexReg 5880; amended to be effective April 17, 2003, 28 TexReg 3080.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c31/scD/s31.47"><num value="31.47">§31.47</num><heading>Audit and Project Close-Out Standards</heading><content>(a) Purpose. This section describes audit and close-out requirements for recipients of state and federal public transportation grant funds.(b) Audit standards. Contractor audit procedures shall meet or exceed the single audit report requirement of 2 C.F.R. Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.(1) Access. The United States Secretary of Transportation, the Comptroller General of the United States, the executive director of the department, and the State Auditor, and any of their authorized representatives, shall have access to the financial and other project records at all reasonable times during the contract period and for the record retention period for the purpose of making audits, examinations, excerpts and transcripts.(2) Documentation. The contractor shall maintain financial records, supporting documents, statistical records, and all other records of the public transportation grant.(3) Records retention. Financial records, supporting documents, statistical records, and all other records of the public transportation grant shall be retained for a period of three years after grant closeout, with the following qualifications.(A) Litigation. If any litigation, claim, or audit is started before the expiration of the three-year period, the records shall be retained until all litigations, claims, and audit findings involving the records have been resolved.(B) Nonexpendable property. Records for nonexpendable property acquired with federal or state funds shall be retained for three years after its final disposition.(C) Transfer of records. The three-year retention requirement is not applicable to the contractor when the records are transferred to or maintained by the federal or state grantor agency.(D) Procurement records. The three-year retention requirement is not applicable to capital projects covered under §31.44(b)(3) of this chapter.(4) Project close-outs. The contractor shall make every reasonable effort to complete all project activities and request appropriate reimbursements within the time period specified in the project agreement. Project audits shall also be completed within the specified time period and any findings resolved with all practicable speed. Upon completion of these activities, the contractor shall provide the department written notification of project close-out and the release of any unspent project balances.</content><note type="source"><p>Source Note: The provisions of this §31.47 adopted to be effective August 11, 1994, 19 TexReg 5880; amended to be effective April 17, 2003, 28 TexReg 3080; amended to be effective February 21, 2008, 33 TexReg 1380; amended to be effective December 6, 2017, 42 TexReg 6815.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c31/scD/s31.48"><num value="31.48">§31.48</num><heading>Project Oversight</heading><content>(a) Purpose. This section describes reporting requirements for designated recipients and subrecipients of state or federal public transportation grant funds and monitoring activities to be performed by the department.(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) 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) Asset inventory. Each subrecipient shall provide information on state and federally funded equipment as described in §31.50 of this chapter (relating to Recordkeeping and Inventory Requirements).(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) Disadvantaged Business Enterprises. Subrecipients shall submit reports in accordance with 49 C.F.R. Part 26, Participation by Disadvantaged Business Enterprises in Department of Transportation Financial Assistance Programs.(5) Operations reports. All FTA recipients and subrecipients shall submit quarterly and annual operations reports.(A) Pursuant to the requirements of 49 U.S.C. §5311 and §5335, subrecipients of assistance under §5311 shall submit to the department data required by the department for reporting to the National Transit Database.(B) Pursuant to the requirements of 49 U.S.C. §5326, subrecipients of FTA assistance through the department shall provide the data required by the department to report on transit asset management.(C) Pursuant to the requirements of Transportation Code, §456.008(a) and (b), the department will collect monthly data from transit operators in urbanized areas, including transit authorities, and publish annually data on industry utilized standards that best reflect ridership, mileage, revenue by source and service effectiveness. These standards include:(i) Service efficiency--Operating expense per vehicle revenue hour and operating expense per vehicle revenue mile.(ii) Cost effectiveness--Operating expense per unlinked passenger trip.(iii) Service effectiveness--Unlinked passenger trips per vehicle revenue mile and unlinked passenger trips per vehicle revenue hour.(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.(D) Pursuant to the requirements of Transportation Code, §456.008(a) and (b), and 49 U.S.C. §5311, the department will collect monthly from transit operators in rural areas, and publish annually data on industry utilized standards that best reflect ridership, mileage, revenue by source and service effectiveness. These standards include:(i) Service efficiency--Operating expense per vehicle mile.(ii) Cost effectiveness--Operating expense per unlinked passenger trip.(iii) Service effectiveness--Unlinked passenger trips per vehicle mile.(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.(E) Pursuant to the requirements of Transportation Code, §456.008(a) and (b), the department will collect monthly from public transportation providers, as defined in Transportation Code, §461.002, that receive funding under 49 U.S.C. §5310, or §5316 and §5317 (with regard to the grant of funds appropriated under federal authorization bills prior to MAP-21), and publish annually data on industry utilized standards that best reflect ridership, mileage, revenue by source and service effectiveness. These standards include:(i) Service efficiency--Operating expense per vehicle mile.(ii) Cost effectiveness--Operating expense per unlinked passenger trip.(iii) Service effectiveness--Unlinked passenger trips per vehicle mile.(iv) Any other measure appropriate to the type of project financed using funds from §5310, or §5316 and §5317 with regard to the grant of funds appropriated under federal authorization bills prior to MAP-21.(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:(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(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) 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.(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) Civil rights. The department will monitor subrecipients for compliance with Title VI Civil Rights requirements.(2) Drugs and alcohol.(A) Each §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.(B) Each §5310 subrecipient, and each §5316 and §5317 subrecipients with regard to the grant of funds appropriated under federal authorization bills prior to MAP-21, 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 §5307 or §5311 funding, the subrecipient shall include §§5310, 5316, and 5317 employees in their FTA testing program.(3) Fiscal responsibility. A department employee quarterly will review agency financial records that support requests for payment.(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) 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 (relating to Maintenance Requirements). The plans, schedules, and logs are subject to periodic on-site inspection by the department.(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) Procurement. The department 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. Check sheets will be maintained by the department to ensure all benchmark activities are accomplished in the proper sequence.(d) Noncompliance. A subrecipient that fails to comply with federal or state law, standard or special grant or subgrant conditions, or contractual agreements on which the grant or subgrant award is predicated, is subject to actions under Chapter 9, Subchapter H of this title (relating to Grant Sanctions).</content><note type="source"><p>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; amended to be effective June 17, 2010, 35 TexReg 5079; amended to be effective May 19, 2011, 36 TexReg 3111; amended to be effective November 21, 2013, 38 TexReg 8253; amended to be effective December 6, 2017, 42 TexReg 6815.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c31/scD/s31.49"><num value="31.49">§31.49</num><heading>Transportation Needs of Clients of Health and Human Service Agencies and Coordination of Services</heading><content>(a) Purpose. This section describes requirements for addressing the transportation needs of clients of health and human service agencies and for the coordination of services between recipients of state and federal public transportation grant funds and other transportation operators.(b) Planning for client transportation.(1) The department will consider and will encourage metropolitan planning organizations to consider the transportation needs of persons who are clients of health and human services agencies in the planning processes performed under Chapter 16, Subchapter B, of this title (relating to Transportation Planning).(2) An applicant for state or federal financial assistance under this chapter must submit evidence of coordination efforts to the department. This evidence must include a certification that, whenever possible, and to the maximum extent feasible, the existing network of transportation providers, and in particular the fixed route components of public transportation systems, will be used to meet the client transportation requirements of the state's social service agencies and their clients.(3) The department will encourage, to the maximum extent possible, state health and human services agencies to base their transportation funding decisions on the recommendations that result from the:(A) planning processes described under paragraph (1) of this subsection; and(B) evidence of coordination efforts submitted under paragraph (2) of this subsection.(c) Standards. Contractors shall at all times coordinate the provision of public transportation services with other transportation operators, both public and private, in the local area. Contractors shall furnish the department copies of any coordination agreements or other documents that demonstrate a good faith effort to reduce duplication of effort while improving the efficiency and effectiveness of transit services to the public. The department may suggest coordination efforts and may direct state and federal grant funding towards that end.</content><note type="source"><p>Source Note: The provisions of this §31.49 adopted to be effective August 11, 1994, 19 TexReg 5880; amended to be effective March 26, 1998, 23 TexReg 3044; amended to be effective April 17, 2003, 28 TexReg 3080; amended to be effective November 21, 2013, 38 TexReg 8253.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p1/c31/scE"><num value="E">SUBCHAPTER E</num><heading>PROPERTY MANAGEMENT STANDARDS</heading><section identifier="/us/state/tx/tac/t43/p1/c31/scE/s31.50"><num value="31.50">§31.50</num><heading>Recordkeeping and Inventory Requirements</heading><content>(a) Purpose. To protect the public investment in real property and equipment purchased in whole or in part with state or federal public transportation funds administered by the department, subrecipients shall comply with the standards described in this section.(b) Property records. The subrecipient shall maintain records that include:(1) a description of the property;(2) a serial number or other identification number;(3) the source of the property;(4) who holds title;(5) the acquisition date and cost of the property;(6) the percentage of state and the percentage of federal participation in the cost of the property;(7) the location, use, and condition of the property; and(8) any ultimate disposition data, including the date of disposal and sale price of the property.(c) Inventory. The subrecipient shall cooperate with department representatives in performing at least once every two years a physical inventory of all real property and equipment, as defined in §31.3 of this chapter, purchased in whole or in part with state or federal capital funds administered by the department. However, during the time period between these physical inventories, the subrecipient shall promptly notify the department in writing of all changes in the status of that real property and equipment in order that department records may be kept current. On or before November 1 of each year, the subrecipient shall provide the department with an accurate inventory, including the mileage, of all vehicles used in public transportation service. Property shall remain on the department's and subrecipient's inventories until such time as the property is formally disposed of in accordance with the requirements outlined in §31.57 of this subchapter. Notwithstanding the foregoing, the subrecipient shall, where applicable, be bound by, and shall comply with, the inventory requirements specified in 2 C.F.R Part 200 and Part 1201, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.(d) Control system. The subrecipient must develop a control system to ensure adequate safeguards to prevent loss, damage, or theft of the property. The subrecipient shall investigate any loss, damage, or theft.</content><note type="source"><p>Source Note: The provisions of this §31.50 adopted to be effective July 6, 1990, 15 TexReg 3643; amended to be effective April 17, 2003, 28 TexReg 3080; amended to be effective December 6, 2017, 42 TexReg 6815.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c31/scE/s31.51"><num value="31.51">§31.51</num><heading>Asset Management</heading><content>(a) Purpose. Title 49 U.S.C. §5326 authorizes the Secretary of the U.S. DOT to establish and implement a national transit asset management system. Recipients and subrecipients must develop transit asset management plans and report to the Secretary annually.(b) Affected agencies. Subrecipients of federal transit assistance through the department must comply with 49 U.S.C. §5326.(c) Department role. The department acts as the designated recipient of multiple Federal Transit Act programs. As the administering agency the department will:(1) provide guidance to agencies requesting assistance with the development of a transit asset management plan;(2) certify subrecipient compliance with 49 U.S.C. §5326 requirements;(3) provide the Federal Transit Administration (FTA) with an annual report that includes at a minimum:(A) overall condition of transit assets;(B) changes since the last report;(C) performance measures; and(D) progress in meeting performance measure targets.(d) Subrecipient responsibilities.(1) Subrecipients shall develop a transit asset management plan that covers rolling stock, equipment, infrastructure, and facilities leased or owned by the agency. At a minimum, the plan must include:(A) capital asset inventories;(B) condition assessments;(C) decision support tools; and(D) investment prioritization.(2) Subrecipients shall provide the department the data needed to comply with §31.48(b)(5)(B) of this chapter (relating to Project Oversight).(3) After the U.S. DOT Secretary establishes a definition for the term "state of good repair" (SOGR), agencies must set performance targets to attain SOGR status. The department will assist subrecipients to establish performance targets that may vary by the subrecipient's FTA funding program.</content><note type="source"><p>Source Note: The provisions of this §31.51 adopted to be effective November 21, 2013, 38 TexReg 8253.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c31/scE/s31.53"><num value="31.53">§31.53</num><heading>Maintenance Requirements</heading><content>(a) Purpose. To protect the public investment in real property and equipment purchased in whole or in part with state or federal public transportation funds administered by the department, subrecipients shall comply with the standards described in this section.(b) Real property and facilities. Subrecipients shall perform necessary maintenance and groundskeeping to preserve the value of the original investment and its physical appearance and integrity. Failure to establish and observe a maintenance program constitutes grounds for the department to direct the transfer or disposition of the real property or facility.(c) Equipment. Subrecipients shall maintain equipment to ensure that the equipment remains in good condition. Failure to establish and observe a maintenance program constitutes grounds for the department to direct the transfer or disposition of the equipment.(d) Maintenance program. Subrecipients shall have a maintenance program that includes:(1) a written maintenance plan;(2) preventive maintenance inspections and scheduled services, which shall include at a minimum the manufacturers' recommended servicing schedules;(3) provisions for accessibility;(4) management of maintenance resources;(5) warranty compliance and recovery; and(6) standards for maintenance subcontractors.</content><note type="source"><p>Source Note: The provisions of this §31.53 adopted to be effective July 6, 1990, 15 TexReg 3643; amended to be effective February 15, 2001, 26 TexReg 1365; amended to be effective February 21, 2008, 33 TexReg 1380.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c31/scE/s31.55"><num value="31.55">§31.55</num><heading>Title</heading><content>(a) Purpose. To protect the public investment in real property and equipment purchased in whole or in part with state or federal public transportation funds administered by the department, subrecipients shall observe the requirements described in this section.(b) Ownership. With regard to vehicles and real property purchased with funds provided by the department through grants executed on or after January 1, 2002, including vehicles and real property transferred from one subrecipient to another, a subrecipient shall record a lien naming the Texas Department of Transportation, Public Transportation Division, as the lienholder. The department may waive this requirement or may approve in writing an alternative form of recording its interest.(c) Nonencumbrance. Except as specifically authorized by these rules, a subrecipient shall not execute any lease, pledge, mortgage, lien, or other contract touching or affecting the federal or state interest in any project facilities or equipment; nor shall the subrecipient, by any act or omission of any kind, adversely affect the federal or state interest or impair its continuing control over the use of project facilities or equipment.</content><note type="source"><p>Source Note: The provisions of this §31.55 adopted to be effective July 6, 1990, 15 TexReg 3643; amended to be effective April 17, 2003, 28 TexReg 3080.</p></note></section><section identifier="/us/state/tx/tac/t43/p1/c31/scE/s31.57"><num value="31.57">§31.57</num><heading>Disposition</heading><content>(a) Purpose. This section describes the standards that apply to the disposition of equipment purchased in whole or in part with state or federal public transportation funds.(b) Like-kind exchanges. In the case of like-kind exchanges, the percentage of the department's original contractual interest shall be applied to the fair market value of the equipment being sold at the time of the exchange. That dollar value shall then be transferred as the department's interest in the equipment being acquired and, as appropriate, added to any additional funding provided by the department towards the purchase of the new equipment.(c) Federal standards. The federal standards contained in 2 C.F.R Part 200 and Part 1201, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards shall govern the disposition of real property and equipment purchased under contracts in which the department provides all or part of the local share requirement of federally assisted capital improvements. In cases in which 2 C.F.R. Part 200 and Part 1201, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards does not require reimbursement of the federal grantor agency, the department will similarly release the state interest in the capital improvement provided that the state's percentage share of any proceeds derived by the subrecipient in the disposition process shall be used by the subrecipient for public transportation purposes similar to those for which the contract award was originally made. If the subrecipient does not intend to use the state's percentage share of the proceeds for public transportation purposes, those monies shall be refunded as described in subsection (d)(2)(B) of this section. In cases in which 2 C.F.R. Part 200 and Part 1201, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires reimbursement of the federal grantor agency, the subrecipient shall provide the department a percentage of the proceeds of the disposition equal to the percentage of the state's original investment in the property or equipment. Once disposition is authorized, the subrecipient shall relinquish title to the property through either sale, auction, or transfer to another recipient of FTA funding. The department shall be notified of the disposition and shall be provided information necessary to delete the property from inventory records described in §31.50 of this subchapter (relating to Recordkeeping and Inventory Requirements).(d) State standards. All real property and equipment obtained through contracts in which the department's contractual interest includes federal funds or state monies shall be governed by the disposition standards contained in paragraphs (1) and (2) of this subsection. The department shall be notified of the subrecipient's intent to proceed with the dispositions and provided information necessary to delete the property from inventory records described in §31.50 of this subchapter. Prior to disposition of property under the terms of this subsection, the subrecipient shall obtain written concurrence from the department and receive disposition instructions. Once disposition is authorized, the subrecipient shall relinquish title to the property through either sale, auction, or transfer to another recipient of FTA or state funding.(1) Disposition criteria.(A) Vehicles. Disposition may occur when the current per-unit market value is less than $5,000.(B) Other equipment. Disposition may occur when the current per-unit market value is less than $5,000.(C) Real property. When real property is no longer needed for the originally authorized purpose, the subrecipient shall request disposition instructions from the department pursuant to this subsection.(2) Distribution of disposition proceeds.(A) Refund not required. In cases in which the disposition criteria contained in paragraph (1)(A) and (B) of this subsection have been met, the department will release its contractual interest in the capital improvement. The department will similarly release its contractual interest in cases in which exceptions are granted for early disposition in accordance with the provisions contained in subsection (e) of this section. However, the department's release of its interest in a capital improvement is contingent upon the subrecipient's assurance that the department's contractually specified percentage share of any proceeds derived by the subrecipient in the disposition process will be used by the subrecipient for public transportation purposes similar to those for which the contract award was originally made. In the case of transfers to non-transit uses, as allowed under 49 U.S.C. §5334(h), the department will release only the federal portion of its contractual interest. The department will consult with FTA as necessary to ensure compliance with federal standards. The state's percentage share shall be refunded as described in subparagraph (B) of this paragraph.(B) Refund required. In cases in which the disposition criteria contained in paragraph (1)(A) and (B) of this subsection have not been met, but the subrecipient has received authorization from the department to proceed with the disposition of equipment or property, the subrecipient shall provide the department a percentage of the proceeds of the disposition equal to the percentage of the department's original contractual interest in the property or equipment. In cases of real property, as described in paragraph (1)(C) of this subsection, and when exceptions are not granted for early disposition, as described in subsection (e) of this section, the subrecipient shall similarly provide the department a percentage of the proceeds of the disposition equal to the percentage of the department's original contractual interest in the property or equipment. In the case of transfers to non-transit uses, as allowed under 49 U.S.C. §5334(h), the subrecipient shall provide the department a percentage of the proceeds of the disposition equal to the percentage of the original state percentage interest in the property or equipment, excluding any federal percentage interest that might have been included in the contract of assistance. The department will consult with FTA as necessary to ensure compliance with federal standards.(C) Net proceeds from sale of capital assets. In cases in which 2 C.F.R. Part 200 and Part 1201, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires a reimbursement, when the subrecipient receives proceeds from the disposition of the capital property or equipment and those funds will be used for subsequent federal public transportation purposes, the subrecipient shall establish a record of liability demonstrating that these funds are owed. The liability will be removed when the subrecipient uses the proceeds for a subsequent transit project.(e) Exceptions. The department will consider exceptions to this section on a case-by-case basis. The subrecipient must furnish information requested by the department to determine if an exception is warranted due to special circumstances. The department will consult with FTA as necessary to ensure compliance with federal standards.</content><note type="source"><p>Source Note: The provisions of this §31.57 adopted to be effective July 6, 1990, 15 TexReg 3643; amended to be effective October 27, 1993, 18 TexReg 7160; 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; amended to be effective November 21, 2013, 38 TexReg 8253; amended to be effective December 6, 2017, 42 TexReg 6815.</p></note></section></subchapter></chapter></part><part identifier="/us/state/tx/tac/t43/p3"><num value="3">PART 3</num><heading>MOTOR VEHICLE CRIME PREVENTION AUTHORITY</heading><chapter identifier="/us/state/tx/tac/t43/p3/c57"><num value="57">CHAPTER 57</num><heading>MOTOR VEHICLE CRIME PREVENTION AUTHORITY</heading><subchapter identifier="/us/state/tx/tac/t43/p3/c57/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t43/p3/c57/sc/s57.3"><num value="57.3">§57.3</num><heading>Compliance Adoption by Reference</heading><content>Grantees shall comply with all applicable state and federal statutes, rules, regulations, and guidelines.</content><note type="source"><p>Source Note: The provisions of this §57.3 adopted to be effective January 21, 1993, 18 TexReg 159; transferred effective February 24, 1998, as published in the Texas Register March 6, 1998, 23 TexReg 2399; amended to be effective November 14, 1999, 24 TexReg 10146; amended to be effective May 6, 2002, 27 TexReg 3788; amended to be effective February 25, 2004, 29 TexReg 1674; amended to be effective December 10, 2007, 32 TexReg 9132; amended to be effective July 31, 2012, 37 TexReg 5636; amended to be effective March 24, 2015, 40 TexReg 1713.</p></note></section><section identifier="/us/state/tx/tac/t43/p3/c57/sc/s57.9"><num value="57.9">§57.9</num><heading>Nonsupplanting Requirement</heading><content>(a) State funds provided by this Act shall not be used to supplant state or local funds. (b) Supplanting means the replacement of other funds with Motor Vehicle Crime Prevention Authority (MVCPA) grant funds. It shall also include using existing resources already available to a program activity as cash match. (c) Positions which existed prior to new grant award approval and were funded from any source other than MVCPA grant funds are not eligible for grant funding or to be used as cash match. (d) If a grant program is reduced by 20% or more from the previous year, and as a result, grant funded or match positions are transferred to other duties for the grant year, they may be returned to grant funding in the subsequent grant year. This exception is not available for any positions that have not been grant funded or used as match for more than one grant year. (e) Each grantee shall certify that MVCPA funds have not been used to replace state or local funds that would have been available in the absence of MVCPA funds. The certification shall be incorporated in each grantee's expenditure report. (f) Grantees that supplant funds may be required by the Board to return supplanted funds to the MVCPA.</content><note type="source"><p>Source Note: The provisions of this §57.9 adopted to be effective January 21, 1993, 18 TexReg 159; transferred effective February 24, 1998, as published in the Texas Register March 6, 1998, 23 TexReg 2399; amended to be effective November 14, 1999, 24 TexReg 10146; amended to be effective December 10, 2007, 32 TexReg 9132; amended to be effective March 20, 2016, 41 TexReg 1977; amended to be effective March 1, 2020, 45 TexReg 1443; amended to be effective February 13, 2025, 50 TexReg 788.</p></note></section><section identifier="/us/state/tx/tac/t43/p3/c57/sc/s57.10"><num value="57.10">§57.10</num><heading>Nonlobbying Certification</heading><content>(a) Each grantee shall certify that none of the grant funds, regardless of their source or character, including local cash contribution, shall be used in any manner to influence the outcome of any election or the passage or defeat of any legislative measure.(b) A finding that a grantee has violated this certification shall result in the immediate termination of funding of the project and the grantee shall not be eligible for future funding from the Motor Vehicle Crime Prevention Authority (MVCPA).</content><note type="source"><p>Source Note: The provisions of this §57.10 adopted to be effective January 21, 1993, 18 TexReg 159; transferred effective February 24, 1998, as published in the Texas Register March 6, 1998, 23 TexReg 2399; amended to be effective November 14, 1999, 24 TexReg 10146; amended to be effective December 10, 2007, 32 TexReg 9132; amended to be effective March 24, 2015, 40 TexReg 1713; amended to be effective March 1, 2020, 45 TexReg 1443.</p></note></section><section identifier="/us/state/tx/tac/t43/p3/c57/sc/s57.11"><num value="57.11">§57.11</num><heading>Bonding and Insurance</heading><content>Each private nonprofit organization directly receiving grant funds from the MVCPA must secure and maintain a commercial bond against the loss or theft of MVCPA grant funds.</content><note type="source"><p>Source Note: The provisions of this §57.11 adopted to be effective January 21, 1993, 18 TexReg 159; transferred effective February 24, 1998, as published in the Texas Register March 6, 1998, 23 TexReg 2399; amended to be effective November 14, 1999, 24 TexReg 10146; amended to be effective December 10, 2007, 32 TexReg 9132; amended to be effective March 1, 2020, 45 TexReg 1443.</p></note></section><section identifier="/us/state/tx/tac/t43/p3/c57/sc/s57.14"><num value="57.14">§57.14</num><heading>Approval of Grant Projects</heading><content>(a) The MVCPA board will approve funding for projects on an annual basis, subject to continuation of funding through state appropriations and availability of funds. (b) To be eligible for consideration for funding, a project must be designed to support one of the following MVCPA program categories: (1) Law Enforcement, Detection and Apprehension; (2) Prosecution, Adjudication and Conviction; (3) Prevention, Anti-Theft Devices; (4) Reduction of the Sale of Stolen Vehicles or Parts, including catalytic converters;(5) Educational Programs and Marketing; and(6) Preventing stolen motor vehicles from entering Mexico.(c) Grant award decisions by the MVCPA are final and not subject to judicial review.</content><note type="source"><p>Source Note: The provisions of this §57.14 adopted to be effective July 10, 1997, 22 TexReg 6187; amended to be effective November 14, 1999, 24 TexReg 10146; amended to be effective December 10, 2007, 32 TexReg 9132; amended to be effective July 22, 2013, 38 TexReg 4643; amended to be effective March 24, 2015, 40 TexReg 1713; amended to be effective March 20, 2016, 41 TexReg 1977; amended to be effective March 1, 2020, 45 TexReg 1443; amended to be effective February 13, 2025, 50 TexReg 788.</p></note></section><section identifier="/us/state/tx/tac/t43/p3/c57/sc/s57.15"><num value="57.15">§57.15</num><heading>Implementation of Grant</heading><content>(a) Each grantee shall implement the grant within 45 days of the designated start date indicated on the grant award statement.(b) Failure by the grantee to implement a grant within 45 days will be construed by the MVCPA as the grantee's relinquishment of the grant award.(c) Any exception to this section will require the review and written approval of the MVCPA director and MVCPA board designee.</content><note type="source"><p>Source Note: The provisions of this §57.15 adopted to be effective January 21, 1993, 18 TexReg 159; transferred effective February 24, 1998, as published in the Texas Register March 6, 1998, 23 TexReg 2399; amended to be effective November 14, 1999, 24 TexReg 10146; amended to be effective December 10, 2007, 32 TexReg 9132; amended to be effective March 24, 2015, 40 TexReg 1713; amended to be effective March 1, 2020, 45 TexReg 1443.</p></note></section><section identifier="/us/state/tx/tac/t43/p3/c57/sc/s57.16"><num value="57.16">§57.16</num><heading>Operation of Grant</heading><content>All grants shall be conducted in accordance with the following:(1) applicable federal or state laws, rules, regulations, policies, or procedures; and(2) terms, conditions, standards, or stipulations of grant agreements.</content><note type="source"><p>Source Note: The provisions of this §57.16 adopted to be effective January 21, 1993, 18 TexReg 159; transferred effective February 24, 1998, as published in the Texas Register March 6, 1998, 23 TexReg 2399; amended to be effective March 24, 2015, 40 TexReg 1713.</p></note></section><section identifier="/us/state/tx/tac/t43/p3/c57/sc/s57.17"><num value="57.17">§57.17</num><heading>Payment of Outstanding Liabilities</heading><content>(a) Upon completion of the grant period, a grantee must pay all valid outstanding liabilities within 90 days.(b) All payments made after the completion of the grant period must relate to obligations encumbered before the end of the grant period.</content><note type="source"><p>Source Note: The provisions of this §57.17 adopted to be effective January 21, 1993, 18 TexReg 159; transferred effective February 24, 1998, as published in the Texas Register March 6, 1998, 23 TexReg 2399.</p></note></section><section identifier="/us/state/tx/tac/t43/p3/c57/sc/s57.18"><num value="57.18">§57.18</num><heading>Grant Adjustments</heading><content>(a) The grantee must secure prior written approval from the MVCPA director for any of the following:(1) changes in the need, objectives, approach, or geographical location of the grant;(2) changes in the number of positions or job descriptions of personnel specified in the grant agreement;(3) transfers of funds among direct cost categories exceeding 5.0% of the total grant budget;(4) changes in equipment or other controlled assets amounts, types, or methods of acquisition;(5) use of confidential funds not specified in the grant agreement;(6) use of program income for reasonable and necessary expenses of over $1000 or more;(7) changes in overtime or out-of-state travel of $1000 or more; or(8) other changes for which the grant agreement or uniform grant and contract management standards require prior approval.(b) The grantee must provide updates in the on-line system or written notification to the MVCPA director within five days from the date of any change in the program director, financial officer, or authorized official.</content><note type="source"><p>Source Note: The provisions of this §57.18 adopted to be effective January 21, 1993, 18 TexReg 159; transferred effective February 24, 1998, as published in the Texas Register March 6, 1998, 23 TexReg 2399; amended to be effective November 14, 1999, 24 TexReg 10146; amended to be effective December 10, 2007, 32 TexReg 9132; amended to be effective March 20, 2016, 41 TexReg 1977; amended to be effective June 27, 2018, 43 TexReg 4212; amended to be effective March 1, 2020, 45 TexReg 1443.</p></note></section><section identifier="/us/state/tx/tac/t43/p3/c57/sc/s57.21"><num value="57.21">§57.21</num><heading>Obligation of Grant Funds</heading><content>(a) Grant funds may not be obligated prior to the effective date or subsequent to the termination date of the grant period.(b) Obligations must be related to goods or services provided and used for approved purposes.</content><note type="source"><p>Source Note: The provisions of this §57.21 adopted to be effective January 21, 1993, 18 TexReg 159; transferred effective February 24, 1998, as published in the Texas Register March 6, 1998, 23 TexReg 2399; amended to be effective November 14, 1999, 24 TexReg 10146; amended to be effective March 24, 2015, 40 TexReg 1713.</p></note></section><section identifier="/us/state/tx/tac/t43/p3/c57/sc/s57.22"><num value="57.22">§57.22</num><heading>Third Party Participation</heading><content>(a) The grantee will retain ultimate control of and responsibility for the grant project and any contractor shall be bound by grant agreements, grant conditions, and any other requirements applicable to the grantee.(b) Contracts, including any amendments, must be reviewed and approved as to form and content by the MVCPA director or MVCPA board designee prior to the release of any funds under the contract when the amount is $15,000 or more.</content><note type="source"><p>Source Note: The provisions of this §57.22 adopted to be effective January 21, 1993, 18 TexReg 159; transferred effective February 24, 1998, as published in the Texas Register March 6, 1998, 23 TexReg 2399; amended to be effective November 14, 1999, 24 TexReg 10146; amended to be effective December 10, 2007, 32 TexReg 9132; amended to be effective March 24, 2015, 40 TexReg 1713; amended to be effective March 1, 2020, 45 TexReg 1443.</p></note></section><section identifier="/us/state/tx/tac/t43/p3/c57/sc/s57.23"><num value="57.23">§57.23</num><heading>Financial, Progress, and Inventory Reports</heading><content>(a) Each grantee shall submit all required reports in accordance with the instructions provided in the MVCPA Grant Administrative Manual.(b) Reporting is based on the Texas government fiscal year calendar, beginning September 1 through August 31.</content><note type="source"><p>Source Note: The provisions of this §57.23 adopted to be effective January 21, 1993, 18 TexReg 159; transferred effective February 24, 1998, as published in the Texas Register March 6, 1998, 23 TexReg 2399; amended to be effective November 14, 1999, 24 TexReg 10146; amended to be effective December 10, 2007, 32 TexReg 9132; amended to be effective October 25, 2010, 35 TexReg 9512; amended to be effective July 31, 2012, 37 TexReg 5636; amended to be effective March 24, 2015, 40 TexReg 1713; amended to be effective March 1, 2020, 45 TexReg 1443.</p></note></section><section identifier="/us/state/tx/tac/t43/p3/c57/sc/s57.24"><num value="57.24">§57.24</num><heading>Deobligation of Grant Funds</heading><content>Any unobligated funds remaining with the grantee shall be returned immediately to the MVCPA with the final financial report on or before November 30.</content><note type="source"><p>Source Note: The provisions of this §57.24 adopted to be effective January 21, 1993, 18 TexReg 159; transferred effective February 24, 1998, as published in the Texas Register March 6, 1998, 23 TexReg 2399; amended to be effective November 14, 1999, 24 TexReg 10146; amended to be effective December 10, 2007, 32 TexReg 9132; amended to be effective March 24, 2015, 40 TexReg 1713; amended to be effective March 1, 2020, 45 TexReg 1443.</p></note></section><section identifier="/us/state/tx/tac/t43/p3/c57/sc/s57.25"><num value="57.25">§57.25</num><heading>Cancellation of Project</heading><content>The grantee shall notify the MVCPA, in writing, of the cancellation of any approved project immediately upon the determination to cancel the project.</content><note type="source"><p>Source Note: The provisions of this §57.25 adopted to be effective January 21, 1993, 18 TexReg 159; transferred effective February 24, 1998, as published in the Texas Register March 6, 1998, 23 TexReg 2399; amended to be effective November 14, 1999, 24 TexReg 10146; amended to be effective December 10, 2007, 32 TexReg 9132; amended to be effective March 1, 2020, 45 TexReg 1443.</p></note></section><section identifier="/us/state/tx/tac/t43/p3/c57/sc/s57.26"><num value="57.26">§57.26</num><heading>Misappropriation of Funds</heading><content>The grantee must, immediately upon discovery, report to the MVCPA director and the MVCPA general counsel any evidence of misappropriation of funds.</content><note type="source"><p>Source Note: The provisions of this §57.26 adopted to be effective January 21, 1993, 18 TexReg 159; transferred effective February 24, 1998, as published in the Texas Register March 6, 1998, 23 TexReg 2399; amended to be effective November 14, 1999, 24 TexReg 10146; amended to be effective December 10, 2007, 32 TexReg 9132; amended to be effective March 24, 2015, 40 TexReg 1713; amended to be effective March 1, 2020, 45 TexReg 1443.</p></note></section><section identifier="/us/state/tx/tac/t43/p3/c57/sc/s57.27"><num value="57.27">§57.27</num><heading>Withholding Funds from Grantees</heading><content>(a) The MVCPA may withhold funds from a grantee or projects operated by the grantee when: (1) a determination is made that the grantee has failed to: (A) comply with applicable federal or state laws, rules, regulations, policies, or the grant agreements on which the award of the grant is predicated; (B) submit required reports on time; (C) provide a response to audit or monitoring findings on time; (D) return any unused grant funds remaining on the expired grant within the required timeframe; (E) use funds appropriately; or (F) commence project operations within 45 days of the project start date; or (2) a determination is made that the grantee has submitted reports or records with deficiencies, irregularities, or are delinquent. (b) The MVCPA may reduce or withhold grant funds when MVCPA allocations are depleted or insufficient funds are allocated. (c) The MVCPA will notify grantees of deficient conditions prompting the withholding of grant funds and the period of time within which to cure any deficiency. (d) Grantees have 15 days after receiving a deficiency notification to request an appeal. (e) The MVCPA director or MVCPA board designee will determine the outcome of the grant appeal. (f) Grant funds will be released to a grantee when the MVCPA director or MVCPA board designee is provided with satisfactory evidence that the deficient conditions have been corrected. (g) An appeal under this section is not a contested case under Government Code, Chapter 2001.</content><note type="source"><p>Source Note: The provisions of this §57.27 adopted to be effective January 21, 1993, 18 TexReg 159; transferred effective February 24, 1998, as published in the Texas Register March 6, 1998, 23 TexReg 2399; amended to be effective November 14, 1999, 24 TexReg 10146; amended to be effective December 10, 2007, 32 TexReg 9132; amended to be effective March 24, 2015, 40 TexReg 1713; amended to be effective March 1, 2020, 45 TexReg 1443; amended to be effective February 13, 2025, 50 TexReg 788.</p></note></section><section identifier="/us/state/tx/tac/t43/p3/c57/sc/s57.29"><num value="57.29">§57.29</num><heading>Termination for Cause</heading><content>(a) The MVCPA may terminate any grant for failure to comply with any of the following: (1) applicable federal or state laws, rules, regulations, policies, or guidelines; (2) terms, conditions, standards, or stipulations of grant agreements; or (3) terms, conditions, standards, or stipulations of any other grant awarded to the grantee. (b) Termination of grants for cause shall be based on finding that: (1) deficient conditions make it unlikely that the objectives of the grant will be accomplished; (2) deficient conditions cannot be corrected within a period of time adjudged acceptable by the MVCPA; or (3) a grantee has acted in bad faith. (c) The MVCPA shall notify grantees of the conditions and findings constituting grounds for termination. (d) Unexpended or unobligated funds awarded to a grantee shall be returned to the MVCPA upon termination of a grant. (e) A grantee may be determined ineligible for a future grant award if a grant awarded to the grantee is terminated for cause.</content><note type="source"><p>Source Note: The provisions of this §57.29 adopted to be effective January 21, 1993, 18 TexReg 159; transferred effective February 24, 1998, as published in the Texas Register March 6, 1998, 23 TexReg 2399; amended to be effective November 14, 1999, 24 TexReg 10146; amended to be effective December 10, 2007, 32 TexReg 9132; amended to be effective March 24, 2015, 40 TexReg 1713; amended to be effective March 1, 2020, 45 TexReg 1443; amended to be effective February 13, 2025, 50 TexReg 788.</p></note></section><section identifier="/us/state/tx/tac/t43/p3/c57/sc/s57.30"><num value="57.30">§57.30</num><heading>Appeal of Termination of Grant</heading><content>(a) A grantee may appeal the termination of a grant by writing to the MVCPA director and MVCPA board designee within 10 days from the date of the suspension or termination notification.(b) The grantee may submit written documentation in support of the appeal.(c) The MVCPA director and MVCPA board designee shall consider any documentation submitted by a grantee in support of an appeal and make a recommendation to the MVCPA board on a grantee's appeal.(d) The decision of the MVCPA is final and not subject to judicial review.</content><note type="source"><p>Source Note: The provisions of this §57.30 adopted to be effective January 21, 1993, 18 TexReg 159; transferred effective February 24, 1998, as published in the Texas Register March 6, 1998, 23 TexReg 2399; amended to be effective November 14, 1999, 24 TexReg 10146; amended to be effective December 10, 2007, 32 TexReg 9132; amended to be effective March 24, 2015, 40 TexReg 1713; amended to be effective March 1, 2020, 45 TexReg 1443.</p></note></section><section identifier="/us/state/tx/tac/t43/p3/c57/sc/s57.33"><num value="57.33">§57.33</num><heading>Uniform Crime Reporting</heading><content>Each criminal and juvenile justice agency receiving funds from the MVCPA or that benefits from funds awarded by the MVCPA to another agency must, as a condition precedent to any grant award, comply fully with reporting requirements of the Texas Uniform Crime Reporting Program, Department of Public Safety.</content><note type="source"><p>Source Note: The provisions of this §57.33 adopted to be effective January 21, 1993, 18 TexReg 159; transferred effective February 24, 1998, as published in the Texas Register March 6, 1998, 23 TexReg 2399; amended to be effective November 14, 1999, 24 TexReg 10146; amended to be effective December 10, 2007, 32 TexReg 9132; amended to be effective March 1, 2020, 45 TexReg 1443.</p></note></section><section identifier="/us/state/tx/tac/t43/p3/c57/sc/s57.34"><num value="57.34">§57.34</num><heading>Funding for Project Promotion</heading><content>(a) Funds may be used by the MVCPA and grantees for promotional items to enhance auto theft crime prevention efforts.(b) Funds may be provided for project promotion through paid advertisement, such as billboards, television, newspaper, or radio announcement. Production costs for public service announcements are an allowable expense.</content><note type="source"><p>Source Note: The provisions of this §57.34 adopted to be effective January 21, 1993, 18 TexReg 159; transferred effective February 24, 1998, as published in the Texas Register March 6, 1998, 23 TexReg 2399; amended to be effective November 14, 1999, 24 TexReg 10146; amended to be effective December 10, 2007, 32 TexReg 9132; amended to be effective March 24, 2015, 40 TexReg 1713; amended to be effective March 1, 2020, 45 TexReg 1443.</p></note></section><section identifier="/us/state/tx/tac/t43/p3/c57/sc/s57.36"><num value="57.36">§57.36</num><heading>Level of Funding for Grant Projects</heading><content>For each grant, the MVCPA will determine whether to require grantees to contribute a cash match to be eligible for funding. If required, the cash match will be a percentage of the total MVCPA award, for each year of funding, not to exceed 20%. The cash match requirement for each grant will be stated in the grant application.</content><note type="source"><p>Source Note: The provisions of this §57.36 adopted to be effective January 21, 1993, 18 TexReg 159; amended to be effective October 13, 1995, 20 TexReg 7973; amended to be effective August 21, 1996, 21 TexReg 7655; transferred effective February 24, 1998, as published in the Texas Register March 6, 1998, 23 TexReg 2399; amended to be effective November 14, 1999, 24 TexReg 10146; amended to be effective August 29, 2006, 31 TexReg 6820; amended to be effective December 10, 2007, 32 TexReg 9132; amended to be effective April 12, 2012, 37 TexReg 2436; amended to be effective March 24, 2015, 40 TexReg 1713; amended to be effective March 1, 2020, 45 TexReg1443; amended to be effective August 11, 2024, 49 TexReg 5780.</p></note></section><section identifier="/us/state/tx/tac/t43/p3/c57/sc/s57.41"><num value="57.41">§57.41</num><heading>Violation of Law</heading><content>(a) If the grantee has a reasonable belief that a criminal violation may have occurred in connection with MVCPA funds, including the misappropriation of funds, fraud, theft, embezzlement, forgery, or any other serious irregularities indicating noncompliance with the requirements of a grant, the grantee must immediately notify the MVCPA director and the MVCPA general counsel in writing of the suspected violation or irregularity.(b) The grantee may also notify the local prosecutor's office of any possible criminal violations.(c) Grantees whose programs or personnel become involved in any litigation arising from the grant, whether civil or criminal, must immediately notify and forward a copy of any demand notices, lawsuits, or indictments to the MVCPA director and the MVCPA general counsel.</content><note type="source"><p>Source Note: The provisions of this §57.41 adopted to be effective January 21, 1993, 18 TexReg 159; transferred effective February 24, 1998, as published in the Texas Register March 6, 1998, 23 TexReg 2399; amended to be effective November 14, 1999, 24 TexReg 10146; amended to be effective December 10, 2007, 32 TexReg 9132; amended to be effective March 24, 2015, 40 TexReg 1713; amended to be effective March 1, 2020, 45 TexReg 1443.</p></note></section><section identifier="/us/state/tx/tac/t43/p3/c57/sc/s57.48"><num value="57.48">§57.48</num><heading>Motor Vehicle Years of Insurance Calculations</heading><content>(a) Each insurer, in calculating the fees established by Transportation Code §1006.153, shall comply with the following guidelines: (1) The single statutory fee of $5 is payable on each motor vehicle for which the insurer provides insurance coverage during the calendar year regardless of the number of policy renewals; and (2) When more than one insurer provides coverage for a motor vehicle during the calendar year, each insurer shall pay the statutory fee for that vehicle. (3) "Motor vehicle insurance" as referred to in Transportation Code, Chapter 1006, means motor vehicle insurance as defined by the Insurance Code, Article 5.01(e). This definition shall be used when calculating the fees under this section. (4) All motor vehicle or automobile insurance policies as defined by Insurance Code, Article 5.01(e), covering a motor vehicle shall be assessed the $5 fee except mechanical breakdown policies, garage liability policies, non-resident policies and policies providing only non-ownership or hired auto coverages. (b) Insurers must report assessment information to the Comptroller using the Insurance Motor Vehicle Crime Prevention Authority Semiannual Fee Report form and the Insurance Motor Vehicle Crime Prevention Authority Semiannual Fee Report-July through December.</content><note type="source"><p>Source Note: The provisions of this §57.48 adopted to be effective July 3, 1997, 22 TexReg 6052; amended to be effective March 11, 1998, 23 TexReg 2399; amended to be effective November 12, 1998, 23 TexReg 11411; amended to be effective July 11, 2007, 32 TexReg 4235; amended to be effective December 10, 2007, 32 TexReg 9132; amended to be effective February 12, 2012, 37 TexReg 501; amended to be effective March 20, 2016, 41 TexReg 1977; amended to be effective March 1, 2020, 45 TexReg 1443; amended to be effective January 10, 2024, 49 TexReg 147; amended to be effective February 13, 2025, 50 TexReg 788.</p></note></section><section identifier="/us/state/tx/tac/t43/p3/c57/sc/s57.49"><num value="57.49">§57.49</num><heading>Audit</heading><content>(a) The MVCPA may employ or retain the services of auditors for the purpose of assisting the MVCPA to determine an insurer's compliance with the requirements of Transportation Code, §1006.153.(b) All insurers subject to Transportation Code, §1006.153, shall make their books and records reflecting motor vehicle years of insurance available to the auditors upon request during normal business hours.(c) The MVCPA may assess charges for audit to insurance companies in cases where the companies' assertion of Refund Due was determined to be unfounded.</content><note type="source"><p>Source Note: The provisions of this §57.49 adopted to be effective July 3, 1997, 22 TexReg 6052; amended to be effective November 14, 1999, 24 TexReg 10146; amended to be effective December 10, 2007, 32 TexReg 9132; amended to be effective March 24, 2015, 40 TexReg 1713; amended to be effective March 1, 2020, 45 TexReg 1443.</p></note></section><section identifier="/us/state/tx/tac/t43/p3/c57/sc/s57.50"><num value="57.50">§57.50</num><heading>Report to Texas Department of Insurance</heading><content>If the MVCPA determines that an insurer failed to pay or intentionally underpaid the fee required by Transportation Code, §1006.153, the MVCPA shall notify the Texas Department of Insurance, and the Texas Department of Insurance may for that reason revoke the insurer's certificate of authority.</content><note type="source"><p>Source Note: The provisions of this §57.50 adopted to be effective July 3, 1997, 22 TexReg 6052; amended to be effective November 14, 1999, 24 TexReg 10146; amended to be effective December 10, 2007, 32 TexReg 9132; amended to be effective March 24, 2015, 40 TexReg 1713; amended to be effective March 1, 2020, 45 TexReg 1443; amended to be effective February 13, 2025, 50 TexReg 788.</p></note></section><section identifier="/us/state/tx/tac/t43/p3/c57/sc/s57.51"><num value="57.51">§57.51</num><heading>Refund Determinations</heading><content>(a) An insurer that seeks a determination of the sufficiency or a refund of a semi-annual payment must file an amended report for each period and submit a written claim to the MVCPA director or the MVCPA board designee requesting a determination or a refund not later than four years after the date the semi-annual payment was made to the state comptroller. (b) The MVCPA director or the MVCPA board designee shall review the claim and obtain from the insurer any additional information, if any, that may be necessary or helpful to assist in the MVCPA determination. If an insurer refuses to provide the requested information, the refund shall be denied in whole or in part. (c) The MVCPA director or the MVCPA board designee is authorized to employ or retain the services of a third party, such as the state comptroller, to assist in the determination. The MVCPA director or the MVCPA board designee shall prepare a written report to the MVCPA based on the director's or the designee's review and shall contain findings, conclusions, and a recommendation. (d) The MVCPA shall base its determination on the documentary evidence considered by the director or the MVCPA board designee. The MVCPA decision shall be based on a majority vote of the MVCPA board. The MVCPA decision is final and is not subject to judicial review. (e) Upon determining that an insurer is entitled to a refund, the MVCPA shall notify the comptroller and request the comptroller to draw warrants for the purpose of refunding overpayments.</content><note type="source"><p>Source Note: The provisions of this §57.51 adopted to be effective July 3, 1997, 22 TexReg 6052; amended to be effective November 14, 1999, 24 TexReg 10146; amended to be effective May 20, 2001, 26 TexReg 3495; amended to be effective December 10, 2007, 32 TexReg 9132; amended to be effective March 24, 2015, 40 TexReg 1713; amended to be effective March 20, 2016, 41 TexReg 1977; amended to be effective March 1, 2020, 45 TexReg 1443; amended to be effective February 13, 2025, 50 TexReg 788.</p></note></section><section identifier="/us/state/tx/tac/t43/p3/c57/sc/s57.52"><num value="57.52">§57.52</num><heading>Assessment of Penalty and/or Interest for Late Payment of the Fee, Late Filing of Report; Appeal Procedures</heading><content>(a) Penalty for Late Payment of Fee. (1) A penalty shall be assessed against an insurer for the delinquent payment of the fee required under Transportation Code §1006.153(b-1). (2) The penalty for the delinquent payment of the fee shall be assessed in accordance with Tax Code §111.061(a). (3) Interest accrues in the manner described in Tax Code §111.060 on any fee paid after the due date. (b) Penalty for Late Filing of the Report. A $50 penalty shall be assessed against an insurer for the delinquent filing of any report of the fee.(c) Appeal Procedures. (1) An insurer that is assessed a penalty or interest by the MVCPA under Transportation Code §1006.153 may appeal the assessment by submitting an MVCPA prescribed form to the MVCPA Director within sixty (60) days of the date of the assessment. (2) An insurer shall provide the MVCPA with any written documentation or evidence demonstrating the reasons for the late payment of the fee or late filing of the report. (3) The MVCPA shall make a final decision on an insurer's appeal at a regularly scheduled open meeting of the MVCPA board. A final decision on the appeal shall be made by a majority vote of the MVCPA board. (4) An appeal under this section is not a contested case under Government Code, Chapter 2001.</content><note type="source"><p>Source Note: The provisions of this §57.52 adopted to be effective January 10, 2024, 49 TexReg 148; amended to be effective February 13, 2025, 50 TexReg 788.</p></note></section><section identifier="/us/state/tx/tac/t43/p3/c57/sc/s57.58"><num value="57.58">§57.58</num><heading>Licensure of Intellectual Property</heading><content>(a) MVCPA may authorize the licensure of MVCPA owned intellectual property.(b) MVCPA will determine the monetary value of MVCPA intellectual property and will set license fees.(1) In determining an appropriate fee for licensure of MVCPA intellectual property, MVCPA will consider the:(A) commercial rates for comparable property;(B) development cost;(C) intended use of the property;(D) private or public status of the requestor; and(E) primary beneficiary of the license.(2) MVCPA may waive or reduce the amount of fees, royalties, or other monetary value to be assessed if the MVCPA determines that such waiver or reduction will further the goals and missions of the MVCPA and result in a net benefit to the state. In making this determination, MVCPA will consider whether:(A) the licensee is a governmental entity;(B) the intellectual property will be used for a commercial purpose;(C) MVCPA is the primary beneficiary of the licensee's use of the intellectual property; and(D) MVCPA has an interest in maximizing the distribution and use of the intellectual property.</content><note type="source"><p>Source Note: The provisions of this §57.58 adopted to be effective November 8, 2011, 36 TexReg 7566; amended to be effective March 1, 2020, 45 TexReg 1443.</p></note></section></subchapter></chapter></part><part identifier="/us/state/tx/tac/t43/p5"><num value="5">PART 5</num><heading>HARRIS COUNTY TAX ASSESSOR-COLLECTOR</heading><chapter identifier="/us/state/tx/tac/t43/p5/c95"><num value="95">CHAPTER 95</num><heading>REGULATION OF MOTOR VEHICLE TITLE SERVICES</heading><subchapter identifier="/us/state/tx/tac/t43/p5/c95/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t43/p5/c95/sc/s95.1"><num value="95.1">§95.1</num><heading>Motor Vehicle Title Service Licensing</heading><content>(a) Who must apply for Motor Vehicle Title Service License.(1) All companies and individuals wishing to conduct title service business in Harris County, as defined in Chapter 520 of the Transportation Code under subchapter E must be licensed by the County Tax Assessor-Collector.(2) Any organization that falls into the category of "motor vehicle title service" company must be registered and licensed by the County Tax Assessor-Collector. "Motor vehicle title service" means any person who, for compensation, directly or indirectly assists other persons in obtaining title documents by submitting, transmitting or sending applications for the title documents to the appropriate government agencies.(3) There are two categories of licenses that are required to do business: the Motor Vehicle Title Service License and the Title Service Runner License.(A) The operator of a motor vehicle title service company must complete a form provided by the County Tax Assessor-Collector. The operator of the title service company will provide the company name, as well as the name of all individuals who have an ownership interest in the applying motor vehicle title service company. The motor vehicle title service company shall assume the responsibility for the accuracy and validity of all documents presented to the County Tax Assessor-Collector under its name.(B) A "motor vehicle title service runner" is a registered agent of a registered motor vehicle title service company. The motor vehicle title service runner has the authority to present motor vehicle title documents to the County Tax Assessor-Collector's office for processing. Runners must be authorized by a motor vehicle title service company. Runners may represent more than one motor vehicle title service company.(b) Application Process. Individuals and companies wishing to complete an application to register as a motor vehicle title service company, or as a runner, must apply at the Harris County Administration at 1001 Preston, Room 100, Houston, Texas. All applicants must present their current Texas driver's license or a Texas Department of Public Safety identification card at the time they apply. Lack of a current Texas driver's license or a Texas Department of Public Safety identification card disqualifies an applicant from being licensed. The minimum age at which a person may apply for a license is 16.(1) Vehicle Title Service License Requirements(A) Service Company License, shall, in addition to fulfilling the requirements set forth in Chapter 520 of the Transportation Code, Subchapter E, provide a "doing business as" (DBA) certificate, or articles of incorporation; plus banking information. Applicants must provide a physical address. No license will be issued to a company or individual whose address is a Post Office Box.(B) Vehicle title service companies must identify all individuals who have an ownership in the business. All persons with an ownership interest in a vehicle title service company are subject to the requirements of this Act, and must be licensed under its terms and conditions.(C) Runners must be identified and sponsored by the motor vehicle title service company in order to conduct business on its behalf. Only individuals and entities that have been awarded a motor vehicle title service license can authorize a runner. The required documents for any runner who is authorized as an agent of a title company must be on file with each service company for which the runner is an authorized agent.(D) Upon completion of their application, applicants will be contacted within ten (10) working days, by mail and by phone. They will be instructed to report to the office of the County Tax Assessor-Collector to pick up a letter or authorization, or a letter of rejection.(E) Licensed must be renewed annually. Applicants must meet all original requirements.(2) Requirements for Title Service Runner License(A) A licensed motor vehicle title service company must authorize all individuals who will process paperwork on its behalf. Individuals whose names are not on file as agents of a title company will not be allowed to conduct business on behalf of that title service company.(B) All individuals shall fill out the application for a Title Service Runner License. All applicants will be notified within ten (10) working days, by mail and by phone, to report to the office of the County Tax Assessor-Collector to pick up a letter of authorization or a letter of rejection.(C) Any unlicensed individual observed conducting frequent motor vehicle title transactions on behalf of others, and who claims not to be receiving any compensation for such activities, shall be required to complete an affidavit stating that he or she is not receiving compensation for conducting motor vehicle title transactions. The affidavit shall be notarized and forwarded to the appropriate law-enforcement agencies by a deputy of the County Tax Assessor-Collector.(c) Causes for rejection of application for license. The following shall disqualify an individual from being licensed under this Act:(1) Submitting false information on the application form or any supporting documents.(2) Having been convicted of a felony or a crime of moral turpitude for which the completion date of the applicant's sentence is less than five years from the date of applying for a license under this Act.(3) Having been found in violation of administrative procedures by the Texas Department of Transportation.(d) Fees. Non-refundable annual fees for licenses shall be as follows:(1) The fee for a Vehicle Title Service Company License shall be $200.00 for the first year and $100 per year each year thereafter.(2) The annual fee for a Title Service Runner License shall be $50.00.(e) Policies for conducting transactions.(1) A Tax Assessor-Collector vehicle transaction form must accompany all motor vehicle title service transactions. The motor vehicle title service company officer or operator shall print and sign his or her name in the space provided, and fill in his or her company authorization number in the space provided.(2) The individual preparing the document will print and sign his or her name in the space provided. That person will also fill in his or her Texas driver's license number.(3) All runners processing documents at the office of the County Tax Assessor-Collector shall print and sign their names in the spaces provided. Runners shall also fill in their County Tax Assessor-Collector authorization number in the appropriate block.(4) In the space labeled Description of Vehicles, all vehicles that the title service company wants to complete a transaction on must be listed and identified as transfer of ownership, renewal or replacement of license plates or registration sticker. The vehicle make, model, year and vehicle identification number must be printed legibly. Only the vehicles authorized by a licensed motor vehicle title service company can be printed on the form. The motor vehicle title service company is responsible for the accuracy and validity of the information for each vehicle listed. Only vehicles authorized and listed by the licensed motor vehicle title service company will be processed.(5) After the final vehicle transaction on each transaction sheet is completed, a copy of the transaction sheet will be made and given to the runner. The original transaction sheet will remain on file at the office of the County Tax Assessor-Collector.(f) The Review Board. The County Tax Assessor-Collector shall appoint a five-member Review Board to review allegations of policy and statute violation. The Review Board shall consist of two deputies from the County Tax Assessor-Collector's office who deal with motor vehicle registration. Two members of the Review Board shall be selected from law enforcement; one from the County Sheriff's office and one from a municipal jurisdiction within the County. The fifth member of the Review Board shall be a representative who is active in the motor vehicle title service industry. Memberships will last one year and replacements will be selected on a staggered basis.(g) Cancellation, Suspension or Revocation of License.(1) It shall be the duty of the County Tax Assessor-Collector to cancel the Motor Vehicle Title Service License or Title Service Runner's License issued to a person, firm or corporation when such license is found by the Review Board to have been obtained by submitting false or misleading information.(2) License holders are subject to license cancellation or suspension if more than two vehicle document packets they submit to the County Tax Assessor-Collector's office are found by the Review Board to contain false information and the false information is determined to have been intentionally submitted by the motor vehicle title service company.(3) A runner is subject to license cancellation or suspension if the Review Board determines that the runner presented a title packet to the County Tax Assessor-Collector's office that was not authorized by a licensed Motor Vehicle Title Service Company. If it is determined that a runner altered or forged the original paperwork prepared for and signed by the motor vehicle title service company, that runner shall be subject to license suspension or cancellation pending a decision from the Review Board.(4) Under Section 520.059 of the Transportation Code, the County Tax Assessor-Collector may deny, suspend, revoke or reinstate a license.(5) If the Review Board renders a determination of intentional, factual vehicle document misrepresentation, the Review Board may recommend a 90-day suspension of license for the first offense. The Review Board may recommend a 180-day suspension of license for the second offense. The Review Board may recommend a license revocation for the third offense.(6) The Review Board has the right to revoke any license upon notification of conviction of a felony or crime of moral turpitude.(7) The County Tax Assessor-Collector shall review any recommendation of the Review Board and render the final decision.(h) The Review Process.(1) The Review Board shall meet once a month at a date determined by the County Tax Assessor-Collector. The board will review any complaints and make a determination as to whether the questioned vehicle documents presented to the County Tax Assessor-Collector constitute intentional misrepresentation of fact.(2) A quorum of three members of the Review Board must be present to render a decision. No proxy votes will be allowed.(3) The County Tax Assessor-Collector shall appoint a member of the Review Board to chair meetings of the Review Board.(4) A majority vote of members present at a meeting of the Review Board shall determine the outcome of matters under consideration.(5) All decisions shall be subject to a final review by the County Tax Assessor-Collector.(i) License Reinstatement.(1) The Review Board will examine all license suspensions before the end of the suspension period. The Review Board will make a recommendation to the County Tax Assessor-Collector as to whether the individual or company should have their license reinstated.(2) The County Tax Assessor-Collector shall review the Board's recommendation and render a final decision.(j) The County Tax Assessor-Collector shall maintain a publicly accessible database containing information about each licensed Motor Vehicle Title Service Company and each licensed Title Service Runner.(k) Amendment Process. The County Tax Assessor-Collector reserves the right to amend these rules as deemed necessary.</content><note type="source"><p>Source Note: The provisions of this §95.1 adopted to be effective May 22, 2000, 25 TexReg 4596.</p></note></section></subchapter></chapter></part><part identifier="/us/state/tx/tac/t43/p10"><num value="10">PART 10</num><heading>TEXAS DEPARTMENT OF MOTOR VEHICLES</heading><chapter identifier="/us/state/tx/tac/t43/p10/c206"><num value="206">CHAPTER 206</num><heading>MANAGEMENT</heading><subchapter identifier="/us/state/tx/tac/t43/p10/c206/scA"><num value="A">SUBCHAPTER A</num><heading>ORGANIZATION AND RESPONSIBILITIES</heading><section identifier="/us/state/tx/tac/t43/p10/c206/scA/s206.1"><num value="206.1">§206.1</num><heading>Delegation</heading><content>The Board of the Texas Department of Motor Vehicles (board) may, consistent with applicable law, delegate any agency function to the executive director. The executive director may, consistent with applicable law, delegate duties or responsibilities pursuant to Transportation Code, §1001.0411.</content><note type="source"><p>Source Note: The provisions of this §206.1 adopted to be effective February 4, 2010, 35 TexReg 654; amended to be effective June 25, 2015, 40 TexReg 4000; amended to be effective June 1, 2024, 49 TexReg 2696.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c206/scA/s206.2"><num value="206.2">§206.2</num><heading>Texas Department of Motor Vehicles</heading><content>(a) Executive director.(1) To assist in discharging the duties and responsibilities of the executive director, the executive director may organize, appoint, and retain administrative staff.(2) The executive director shall:(A) serve the board in an advisory capacity, without vote;(B) submit to the board quarterly, annually, and biennially, detailed reports of the progress of the divisions and a detailed statement of expenditures;(C) hire, promote, assign, reassign, transfer, and, consistent with applicable law and policy, terminate staff necessary to accomplish the roles and missions of the department;(D) hire and oversee a general counsel to advise the department; and(E) perform other responsibilities as required by law or assigned by the board.(3) The executive director may, consistent with applicable law, delegate one or more of the functions listed under paragraph (2) of this subsection to the staff of the department.(b) Department staff. The staff of the department, under the direction of the executive director, is responsible for:(1) implementing the policies and programs of the board by:(A) formulating and applying operating procedures; and(B) prescribing such other operating policies and procedures as may be consistent with and in furtherance of the roles and missions of the department;(2) providing the chair and board members administrative support necessary to perform their respective duties and responsibilities;(3) preparing an agenda under the direction of the chair and providing notice of board meetings and hearings as required by Government Code, Chapter 551; and(4) performing all other duties as prescribed by law or as assigned by the board.</content><note type="source"><p>Source Note: The provisions of this §206.2 adopted to be effective February 4, 2010, 35 TexReg 654; amended to be effective June 25, 2015, 40 TexReg 4000; amended to be effective June 1, 2024, 49 TexReg 2696.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c206/scB"><num value="B">SUBCHAPTER B</num><heading>PUBLIC MEETINGS AND HEARINGS</heading><section identifier="/us/state/tx/tac/t43/p10/c206/scB/s206.22"><num value="206.22">§206.22</num><heading>Public Access to Board Meetings</heading><content>(a) Posted agenda items. A person may speak before the board on any matter on a posted agenda by submitting a request, in a form and manner as prescribed by the department, prior to the matter being taken up by the board. A person speaking before the board on an agenda item will be allowed an opportunity to speak:(1) prior to a motion by the board on the item; and(2) for a maximum of three minutes, except as provided in subsections (d)(6) and (e) of this section.(b) Open comment period.(1) At each regular board meeting, the board shall allow an open comment period to receive public comment on any other matter that is under the jurisdiction of the board.(2) A person wanting to speak to the board under this subsection shall complete a registration form, as provided by the department, prior to the beginning of the open comment period.(3) Except as provided in subsections (d)(6) and (e) of this section, each person shall be allowed to speak for a maximum of three minutes in the order in which requests to speak were received.(c) Disability accommodation. Persons who have special communication or accommodation needs and who plan to attend a meeting, may contact the department's contact listed in the posted meeting agenda for the purpose of requests for auxiliary aids or services. Requests shall be made at least two days before a meeting. The department shall make every reasonable effort to accommodate these needs.(d) Conduct and decorum. The board shall receive public input as authorized by this section, subject to the following guidelines.(1) Questioning of speakers shall be reserved to board members and the department's administrative staff.(2) Organizations, associations, or groups are encouraged to present their commonly held views, and same or similar comments, through a representative member where possible.(3) Comments shall remain pertinent to the issue being discussed.(4) A person who disrupts a meeting shall leave the meeting room and the premises if ordered to do so by the chair.(5) Time allotted to one speaker may not be reassigned to another speaker.(6) The time allotted for comments under this section may be increased or decreased by the chair, or in the chair's absence, the vice chair, as may be appropriate to assure opportunity for the maximum number of persons to appear.(e) Waiver. Subject to the approval of the chair, a requirement of this section may be waived in the public interest if necessary for the performance of the responsibilities of the board or the department.</content><note type="source"><p>Source Note: The provisions of this §206.22 adopted to be effective February 4, 2010, 35 TexReg 654; amended to be effective June 25, 2015, 40 TexReg 4000; amended to be effective February 28, 2021, 46 TexReg 1252; amended to be effective June 1, 2024, 49 TexReg 2696.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c206/scB/s206.23"><num value="206.23">§206.23</num><heading>Public Hearings</heading><content>(a) The board may hold public hearings:(1) to consider the adoption of rules;(2) in accordance with the programs operated by the department; and(3) to provide, when deemed appropriate by the board or when otherwise required by law, for public input regarding any other issue under the jurisdiction of the board.(b) The executive director or designee may hold public hearings under subsection (a)(2) and (3) of this section.(c) Public hearings shall be conducted in a manner that maximizes public access and input while maintaining proper decorum and orderliness, and shall be governed by the following guidelines:(1) Questioning of those making presentations shall be reserved to board members, the executive director, the executive director's designee, or if applicable, the presiding officer.(2) Organizations, associations, or groups are encouraged to present their commonly held views and same or similar comments through a representative member where possible.(3) Presentations shall remain pertinent to the issue being discussed.(4) A person who disrupts a public hearing shall leave the hearing room and the premises if ordered to do so by the chair, the executive director, the executive director's designee, or, if applicable, the presiding officer.(5) Time allotted to one speaker may not be assigned to another speaker.(d) Persons who have special communication or accommodation needs and who plan to attend a public hearing under this section may contact the department's contact listed in the public hearing notice for the purpose of requests for auxiliary aids of services. Requests shall be made at least two days before the hearing. The department shall make every reasonable effort to accommodate these needs.</content><note type="source"><p>Source Note: The provisions of this §206.23 adopted to be effective February 4, 2010, 35 TexReg 654; amended to be effective June 25, 2015, 40 TexReg 4000; amended to be effective June 1, 2024, 49 TexReg 2696.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c206/scC"><num value="C">SUBCHAPTER C</num><heading>PROCEDURE FOR PETITION TO ADOPT RULES</heading><section identifier="/us/state/tx/tac/t43/p10/c206/scC/s206.41"><num value="206.41">§206.41</num><heading>Petition</heading><content>Any interested person may petition the department requesting the adoption of a rule. The petition must be in writing to the executive director and contain the person's physical address in Texas, a clear and concise statement of the substance of the requested rule, and a brief explanation of the purpose of the requested rule. Within 60 days after receipt, the department will either deny the petition in writing, stating its reasons therefore, or will initiate rulemaking proceedings in accordance with Government Code, Chapter 2001, Subchapter B.</content><note type="source"><p>Source Note: The provisions of this §206.41 adopted to be effective February 4, 2010, 35 TexReg 654; amended to be effective December 9, 2015, 40 TexReg 8800; amended to be effective June 1, 2024, 49 TexReg 2696.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c206/scD"><num value="D">SUBCHAPTER D</num><heading>ADVISORY COMMITTEES</heading><section identifier="/us/state/tx/tac/t43/p10/c206/scD/s206.92"><num value="206.92">§206.92</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Advisory committee--Any committee created by the board to make recommendations to the board or to the executive director pursuant to Transportation Code, §1001.031 and §643.155.(2) Board--The board of the Texas Department of Motor Vehicles.(3) Department--The Texas Department of Motor Vehicles.(4) Executive director--The chief executive officer of the Texas Department of Motor Vehicles.(5) Member--An appointed member of an advisory committee created under this subchapter.(6) Presiding officer--The presiding officer of an advisory committee elected by the membership of the advisory committee created under this subchapter.</content><note type="source"><p>Source Note: The provisions of this §206.92 adopted to be effective February 4, 2010, 35 TexReg 654; amended to be effective March 29, 2012, 37 TexReg 2086; amended to be effective June 25, 2015, 40 TexReg 4000; amended to be effective August 29, 2019, 44 TexReg 4614; amended to be effective November 2, 2023, 48 TexReg 6386; amended to be effective June 1, 2024, 49 TexReg 2696.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c206/scD/s206.93"><num value="206.93">§206.93</num><heading>Advisory Committee Operations and Procedures</heading><content>(a) Role of advisory committee. The role of an advisory committee under this subchapter is to provide advice and recommendations to the board or executive director. Advisory committees shall meet and carry out their functions upon a request from the department or board for advice and recommendations on any issues.(b) Appointment and qualifications of advisory committee members. The board shall appoint members to an advisory committee in accordance with Transportation Code, §643.155 and §1001.031(b) by selecting potential members from a list provided to the board by the executive director. Board members shall not serve as advisory committee members. Each advisory committee shall elect from its members a presiding officer, who shall report the advisory committee's recommendations to the board or the executive director in accordance with subsection (h) of this section. The executive director may designate a division or divisions of the department to participate with, or to provide subject-matter expertise, guidance, or administrative support to the advisory committee as necessary.(c) Composition of advisory committees. In making appointments to the advisory committees, the board shall, to the extent practical, ensure representation of members from diverse geographical regions of the state.(d) Committee size and quorum requirements. An advisory committee shall be composed of a reasonable number of members not to exceed 24 as determined by the board. A simple majority of advisory committee members will constitute a quorum. An advisory committee may only deliberate on issues within the jurisdiction of the department or any public business when a quorum is present.(e) Terms of service. Advisory committee members will serve terms of four years. A member will serve on the committee until the member resigns, is dismissed or replaced by the board, or the member's term expires.(f) Member training requirements. Each member of an advisory committee must receive training regarding Government Code, Chapter 551; and Government Code, Chapter 552.(g) Compliance with Open Meetings. The advisory committee shall comply with Government Code, Chapter 551.(h) Reporting recommendations. Recommendations of the advisory committee shall be reported to the board at a board meeting prior to board action on issues related to the recommendations. The recommendations shall be in writing and include any necessary supporting materials. The presiding officer of the advisory committee or the presiding officer's designee may appear before the board to present the committee's advice and recommendations. This subsection does not limit the ability of the advisory committee to provide advice and recommendations to the executive director as necessary.(i) Board and executive director use of advisory committee recommendations. In developing department policies, the board and the executive director shall consider the written recommendations submitted by advisory committees.(j) Reimbursement. The department may, if authorized by law and the executive director, reimburse advisory committee members for reasonable and necessary travel expenses.</content><note type="source"><p>Source Note: The provisions of this §206.93 adopted to be effective February 4, 2010, 35 TexReg 654; amended to be effective March 29, 2012, 37 TexReg 2086; amended to be effective June 25, 2015, 40 TexReg 4000; amended to be effective March 9, 2016, 41 TexReg 1720; amended to be effective August 29, 2019, 44 TexReg 4614; amended to be effective November 2, 2023, 48 TexReg 6386; amended to be effective June 1, 2024, 49 TexReg 2696.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c206/scD/s206.94"><num value="206.94">§206.94</num><heading>Motor Vehicle Industry Regulation Advisory Committee (MVIRAC)</heading><content>(a) The MVIRAC is created to make recommendations, as requested by the department and board, on topics related to regulation of the motor vehicle industry.(b) The MVIRAC shall comply with the requirements of §206.93 of this title (relating to Advisory Committee Operations and Procedures).(c) The MVIRAC shall expire on July 7, 2027.</content><note type="source"><p>Source Note: The provisions of this §206.94 adopted to be effective August 29, 2019, 44 TexReg 4614; amended to be effective May 3, 2023, 48 TexReg 2188.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c206/scD/s206.95"><num value="206.95">§206.95</num><heading>Motor Carrier Regulation Advisory Committee (MCRAC)</heading><content>(a) The MCRAC is created to make recommendations, as requested by the department and board, on topics related to motor carrier registration and motor carrier regulation.(b) The MCRAC shall comply with the requirements of §206.93 of this title (relating to Advisory Committee Operations and Procedures).(c) The MCRAC shall expire on July 7, 2027.</content><note type="source"><p>Source Note: The provisions of this §206.95 adopted to be August 29, 2019, 44 TexReg 4614; amended to be effective May 3, 2023, 48 TexReg 2188.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c206/scD/s206.96"><num value="206.96">§206.96</num><heading>Vehicle Titles and Registration Advisory Committee (VTRAC)</heading><content>(a) The VTRAC is created to make recommendations, as requested by the department and board, on topics related to vehicle titles and registration.(b) The VTRAC shall comply with the requirements of §206.93 of this title (relating to Advisory Committee Operations and Procedures).(c) The VTRAC shall expire on July 7, 2027.</content><note type="source"><p>Source Note: The provisions of this §206.96 adopted to be August 29, 2019, 44 TexReg 4614; amended to be effective May 3, 2023, 48 TexReg 2188.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c206/scD/s206.97"><num value="206.97">§206.97</num><heading>Customer Service and Protection Advisory Committee (CSPAC)</heading><content>(a) The CSPAC is created to make recommendations, as requested by the department and board, on the following:(1) investigation and enforcement issues, including: vehicle titles and registration fraud; lemon law; the warranty performance program; and various other topics affecting consumers; and(2) topics related to improving and enhancing customer service by the department, including, but not limited to the following: infrastructure; new customer service initiatives; policy and process improvements; and technology.(b) The CSPAC shall comply with the requirements of §206.93 of this title (relating to Advisory Committee Operations and Procedures).(c) The CSPAC shall expire on July 7, 2027.</content><note type="source"><p>Source Note: The provisions of this §206.97 adopted to be August 29, 2019, 44 TexReg 4614; amended to be effective May 3, 2023, 48 TexReg 2188.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c206/scD/s206.98"><num value="206.98">§206.98</num><heading>Household Goods Rules Advisory Committee (HGRAC)</heading><content>(a) The HGRAC is created to make recommendations, as requested by the department or board, to modernize and streamline the rules adopted under Transportation Code §643.153(a) and (b).(b) The HGRAC shall comply with the requirements of §206.93 of this title (relating to Advisory Committee Operations and Procedures).(c) The HGRAC shall expire on July 7, 2027.</content><note type="source"><p>Source Note: The provisions of this §206.98 adopted to be effective November 2, 2023, 48 TexReg 6386.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c206/scD/s206.99"><num value="206.99">§206.99</num><heading>Use of Advisory Committees and Working Groups</heading><content>In determining appropriate situations in which to utilize an advisory committee versus a working group, the department and the board shall prioritize the use of advisory committees in rulemaking on significant or controversial issues of public policy. The department may form working groups to advise department staff. A working group is not a standing committee formed to advise the board, but a group formed by department staff on an as-needed basis.</content><note type="source"><p>Source Note: The provisions of this §206.99 adopted to be August 29, 2019, 44 TexReg 4614.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c206/scD/s206.101"><num value="206.101">§206.101</num><heading>Public Access to Advisory Committee Meetings</heading><content>(a) Posted agenda items. A person may speak before an advisory committee on any matter on a posted agenda by submitting a request, in a form and manner as prescribed by the department, prior to the matter being taken up by the advisory committee. A person speaking before an advisory committee on an agenda item will be allowed an opportunity to speak:(1) prior to a motion by the advisory committee on the item; and(2) for a maximum of three minutes, except as provided in subsections (d)(6) and (e) of this section.(b) Open comment period.(1) At each regular advisory committee meeting, the advisory committee shall allow an open comment period, not to exceed one hour, to receive public comment on any other matter that is within the scope of the specific advisory committee under §206.94(a) of this title (relating to Motor Vehicle Industry Regulation Advisory Committee (MVIRAC)), §206.95(a) of this title (relating to Motor Carrier Regulation Advisory Committee (MCRAC)), §206.96(a) of this title (relating to Vehicle Titles and Registration Advisory Committee (VTRAC)), §206.97(a) of this title (relating to Customer Service and Protection Advisory Committee (CSPAC)), §206.98(a) of this title (relating to Household Goods Rules Advisory Committee (HGRAC)), or §206.102(a) of this title (relating to Automated Vehicle Regulation Advisory Committee (AVRAC)).(2) A person wanting to make a comment under this subsection shall complete a registration form, as provided by the department, prior to the beginning of the open comment period.(3) Except as provided in subsections (d)(6) and (e) of this section, each person shall be allowed to speak for a maximum of three minutes for each comment in the order in which the requests to speak were received.(c) Disability accommodation. Persons who have special communication or accommodation needs and who plan to attend a meeting, may contact the department's contact listed in the posted meeting agenda for the purpose of requests for auxiliary aids or services. Requests shall be made at least two days before a meeting. The department shall make every reasonable effort to accommodate these needs.(d) Conduct and decorum. An advisory committee shall receive public input as authorized by this section, subject to the following guidelines:(1) questioning of speakers shall be reserved to advisory committee members and the department's administrative staff;(2) organizations, associations, or groups are encouraged to present their commonly held views, and same or similar comments, through a representative member where possible;(3) comments shall remain pertinent to the issue being discussed;(4) a person who disrupts an advisory committee meeting shall leave the meeting room and the premises if ordered to do so by the acting advisory committee chair;(5) time allotted to one speaker may not be reassigned to another speaker; and(6) the time allotted for comments under this section may be increased or decreased by the acting advisory committee chair, as may be appropriate to assure opportunity for the maximum number of persons to appear.(e) Waiver. Subject to the approval of the acting advisory committee chair, a requirement of this section may be waived in the public interest if necessary for the performance of the responsibilities of the advisory committee or the department.</content><note type="source"><p>Source Note: The provisions of this §206.101 adopted to be June 1, 2024, 49 TexReg 2696; amended to be effective March 5, 2026, 51 TexReg 1292.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c206/scD/s206.102"><num value="206.102">§206.102</num><heading>Automated Vehicle Regulation Advisory Committee (AVRAC)</heading><content>(a) The AVRAC is created to make recommendations, as requested by the department and board, on topics related to the regulation of automated motor vehicles.(b) The AVRAC shall comply with the requirements of §206.93 of this title (relating to Advisory Committee Operations and Procedures). (c) The AVRAC shall expire on July 7, 2031.</content><note type="source"><p>Source Note: The provisions of this §206.102 adopted to be effective March 5, 2026, 51 TexReg 1292.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c206/scE"><num value="E">SUBCHAPTER E</num><heading>DEPARTMENT VEHICLE FLEET MANAGEMENT</heading><section identifier="/us/state/tx/tac/t43/p10/c206/scE/s206.111"><num value="206.111">§206.111</num><heading>Restrictions on Assignment of Vehicles</heading><content>(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Department--The Texas Department of Motor Vehicles.(2) Division director--The chief administrative officer in charge of a division of the department.(3) Executive Director--The executive director of the Texas Department of Motor Vehicles or the executive director's designee not below the level of division director.(b) Motor pool. Each department vehicle, with the exception of a vehicle assigned to a field employee, shall be assigned to the department's motor pool and be available for checkout.(c) Regular vehicle assignment. The department may assign a vehicle to an individual administrative or executive employee on a regular or everyday basis only if the executive director makes a signed, written documented finding that the assignment is critical to the needs and mission of the department.</content><note type="source"><p>Source Note: The provisions of this §206.111 adopted to be effective February 4, 2010, 35 TexReg 654; amended to be effective June 25, 2015, 40 TexReg 4000; amended to be effective June 1, 2024, 49 TexReg 2696.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c206/scF"><num value="F">SUBCHAPTER F</num><heading>DIGITAL CERTIFICATES</heading><section identifier="/us/state/tx/tac/t43/p10/c206/scF/s206.131"><num value="206.131">§206.131</num><heading>Digital Certificates</heading><content>(a) General. This section prescribes the requirements that govern the issuance, use, and revocation of digital certificates issued by the Texas Department of Motor Vehicles (department) for electronic commerce in eligible department programs. The provisions of 1 TAC Chapter 203, Subchapter B govern this section in the event of a conflict between that subchapter and a provision of this section.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Business entity--An entity recognized by law through which business is conducted with the department, including a sole proprietorship, partnership, limited liability company, corporation, joint venture, educational institution, governmental agency, or non-profit organization.(2) Certificate holder--An individual to whom a digital certificate is issued.(3) Digital certificate--A certificate, as defined by 1 TAC §203.1, issued by the department for purposes of electronic commerce.(4) Digital signature--Has the same meaning assigned by 1 TAC §203.1.(5) Division director--The chief administrative officer of a division of the department.(c) Program authorization. A division director may authorize the use of digital signatures for a particular program based on whether the applicable industries or organizations are using such technology, the frequency of document submission, and the appropriateness for the program. The solicitation documentation for eligible programs will include the information that digital signatures may be used.(d) Application and issuance of digital certificate.(1) A request for a digital certificate shall be in writing and shall be signed by the individual authorized by the business entity to request a digital certificate.(2) The department may request information necessary to verify the identity of the individual requestor or the identity of the individual to whom the certificate is to be issued. To verify identity under this paragraph a person shall present:(A) an unexpired Texas driver's license or unexpired personal identification certificate with a photograph;(B) an unexpired license to carry a handgun issued by the Texas Department of Public Safety under Government Code, Chapter 411, Subchapter H;(C) an unexpired United States passport;(D) a United States citizenship (naturalization) certificate with identifiable photograph;(E) an unexpired United States Customs and Border Protection document that:(i) was issued for a period of at least one year;(ii) is valid for not less than six months from the date it is presented to the department with a completed application; and(iii) contains verifiable data and an identifiable photograph;(F) an unexpired United States military identification card for active duty, reserve, or retired personnel with an identifiable photograph; or(G) a foreign passport with a valid or expired visa issued by the United States Department of State with an unexpired United States Customs and Border Protection Form I-94:(i) that was issued for a period of at least one year, is marked valid for a fixed duration, and is valid for not less than six months from the date it is presented to the department with a completed application; or(ii) that is marked valid for the duration of the person's stay and is accompanied by appropriate documentation.(3) The department may take actions necessary to confirm that the individual who signed the request is authorized to act on behalf of the business entity, including requiring the individual requestor or the person authorizing the request to personally appear at the department location responsible for the issuing of the certificate.(4) The department shall issue a digital certificate only to an individual. Information identifying the business entity that authorized the issuance of the certificate may be embedded in the digital certificate.(e) Refusal to issue a digital certificate. The department shall not issue a digital certificate if the identity of the individual to whom the certificate is to be issued, or the identity of the individual requesting the certificate on behalf of a business entity, cannot be established. The department will not issue a digital certificate if the business entity on whose behalf the request is allegedly being made does not authorize its issuance.(f) Responsibilities of certificate holder. A certificate holder shall:(1) maintain the security of the digital certificate;(2) use the certificate solely for the purpose for which it was issued; and(3) renew the certificate in a timely manner, if continued use is intended.(g) Responsibilities of business entity. A business entity is responsible for:(1) determining what individual may request a certificate for the business entity;(2) determining to what individual a certificate is to be issued; and(3) requesting within a reasonable time the revocation of the business entity's digital certificate if the security of the certificate has been compromised or if the business entity is changing its certificate holder.(h) Revocation of certificate. The department shall revoke a digital certificate:(1) upon receipt of a written request for revocation of the business entity's digital certificate, signed by an individual authorized to act on behalf of the business entity for which it was issued;(2) for suspension or debarment of the individual or business entity; or(3) if the department has reason to believe that continued use of the digital certificate would present a security risk.(i) Use of digital certificate.(1) A digital certificate issued by the department shall only be used for the purpose of digitally signing electronic documents filed with the department. Use of a digital certificate is binding on the individual to whom the certificate was issued and the represented business entity, as if the document were signed manually.(2) The department may use the digital certificate to identify the certificate holder when granting or verifying access to secure computer systems used for electronic commerce.(j) Forms. The department may prescribe forms to request, modify, or revoke a digital certificate.</content><note type="source"><p>Source Note: The provisions of this §206.131 adopted to be effective February 4, 2010, 35 TexReg 654; amended to be effective June 25, 2015, 40 TexReg 4000; amended to be effective July 2, 2017, 42 TexReg 3272; amended to be effective June 1, 2024, 49 TexReg 2696.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c206/scG"><num value="G">SUBCHAPTER G</num><heading>RISK-BASED MONITORING AND PREVENTING FRAUDULENT ACTIVITY</heading><section identifier="/us/state/tx/tac/t43/p10/c206/scG/s206.151"><num value="206.151">§206.151</num><heading>Internal Risk-Based Monitoring System</heading><content>(a) All Texas Department of Motor Vehicle (department) users of the Registration and Title System (RTS) are subject to periodic examination by the department. As a result of the examination, the department will assign each RTS user a classification of priority or non-priority for the purposes of prioritizing inspections to determine whether there is evidence of fraud by the user. In classifying an RTS user, the department may consider factors including, but not limited to:(1) the RTS user's transaction volume;(2) the RTS user's past violations of the department's rules and procedures within the last five years;(3) title error investigations performed by the department on titles issued by the RTS user;(4) public complaints received by the department against the RTS user; and(5) discrepancies in data reflecting the RTS user's transactions.(b) It is the department's goal to inspect each RTS user as follows:(1) if the RTS user is classified as priority, the RTS user will be inspected not less than twice per year; or(2) if the RTS user is classified as non-priority, the RTS user will be inspected not less than once per year.(c) Inspections under this section may be virtual, on premises at the RTS user's location, or a combination of both.</content><note type="source"><p>Source Note: The provisions of this 206.151 adopted to be effective February 28, 2021, 46 TexReg 1256; amended to be effective June 1, 2024, 49 TexReg 2696.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p10/c208"><num value="208">CHAPTER 208</num><heading>EMPLOYMENT PRACTICES</heading><subchapter identifier="/us/state/tx/tac/t43/p10/c208/scA"><num value="A">SUBCHAPTER A</num><heading>SICK LEAVE POOL</heading><section identifier="/us/state/tx/tac/t43/p10/c208/scA/s208.1"><num value="208.1">§208.1</num><heading>Sick Leave Pool</heading><content>A sick leave pool is established to alleviate hardship caused to an employee and employee's immediate family if a catastrophic illness or injury forces the employee to exhaust all sick leave earned by the employee and to lose compensation from the state.(1) The executive director or another individual designated by the board of the Texas Department of Motor Vehicles shall administer the pool.(2) The pool administrator shall develop and administer procedures for the administration of this section.(3) Operation of the pool shall be consistent with Government Code, Chapter 661.</content><note type="source"><p>Source Note: The provisions of this §208.1 adopted to be effective December 7, 2014, 39 TexReg 9365.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c208/scB"><num value="B">SUBCHAPTER B</num><heading>EMPLOYEE TRAINING AND EDUCATION</heading><section identifier="/us/state/tx/tac/t43/p10/c208/scB/s208.11"><num value="208.11">§208.11</num><heading>Purpose</heading><content>It is the policy of the Texas Department of Motor Vehicles (department) to encourage the professional development of employees through education and training under the State Employees Training Act, Government Code, Chapter 656, Subchapter C. These programs are designed to increase the job potential of employees, provide financial assistance for continuing education, and introduce new technology and educational methods into the workplace. This subchapter governs the eligibility and obligations of employees under training and education programs.</content><note type="source"><p>Source Note: The provisions of this §208.11 adopted to be effective December 7, 2014, 39 TexReg 9365.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c208/scB/s208.12"><num value="208.12">§208.12</num><heading>General Standards</heading><content>(a) Applicability. This section establishes standards applicable to all program participants.(b) Eligibility and reimbursement. An employee must meet the following requirements to be eligible for an assistance program. The employee must:(1) be a full-time, regular status employee who has been continuously employed for one year at the time of application;(2) maintain satisfactory job performance;(3) not have any disciplinary action for six months prior to applying or during the program; and(4) sign a commitment to employment for six months to begin the month following reimbursement.(c) Scope of assistance.(1) Eligible expenses.(A) The department may pay the cost of fees on a per-hour basis, in an amount equal to the latest average semester hour cost for Texas public colleges and universities, as reported by the Texas Higher Education Coordinating Board. The participant will be responsible for paying the difference in cost.(B) The department may provide reimbursement for mandatory fees.(2) Use of state property. A program participant may not use duty hours for attending classes, studying, or other activities associated with the program. A program participant may use state equipment for activities related to coursework with supervisor approval.(3) Retaken courses. The department will not reimburse a program participant for a course taken more than once.(d) Conditions of reimbursement.(1) Within four weeks of receipt of grades, a program participant shall provide the department with:(A) a passing grade report or transcript verifying the passing course credit; and(B) an itemized statement of tuition and mandatory fees.(2) The department may require an employee to reimburse the department for tuition if the employee does not complete the employment commitment.(3) The executive director shall adopt policies related to education and training for employees.(4) Before a program participant may be reimbursed under this section, the executive director must authorize the reimbursement payment.</content><note type="source"><p>Source Note: The provisions of this §208.12 adopted to be effective December 7, 2014, 39 TexReg 9365; amended to be effective December 9, 2015, 40 TexReg 8801.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c208/scC"><num value="C">SUBCHAPTER C</num><heading>FAMILY LEAVE POOL</heading><section identifier="/us/state/tx/tac/t43/p10/c208/scC/s208.13"><num value="208.13">§208.13</num><heading>Family Leave Pool</heading><content>A family leave pool is established to provide eligible employees more flexibility in bonding and caring for children during a child's first year following birth, adoption, or foster placement, or caring for a seriously ill family member or the employee, including pandemic-related illnesses or complications caused by a pandemic.(1) The director of human resources is designated as the pool administrator.(2) The pool administrator, with the advice and consent of the executive director, will establish operating procedures consistent with the Government Code, Chapter 661, Subchapter A-1 (relating to State Employee Family Leave Pool).(3) The prescribed procedures relating to the operation of the family leave pool will be published in the agency's Human Resources Manual.(4) Donations to the pool are strictly voluntary.</content><note type="source"><p>Source Note: The provisions of this §208.13 adopted to be effective May 8, 2022, 47 TexReg 2568.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p10/c209"><num value="209">CHAPTER 209</num><heading>FINANCE</heading><subchapter identifier="/us/state/tx/tac/t43/p10/c209/scA"><num value="A">SUBCHAPTER A</num><heading>COLLECTION OF DEBTS</heading><section identifier="/us/state/tx/tac/t43/p10/c209/scA/s209.1"><num value="209.1">§209.1</num><heading>Collection of Debts</heading><content>(a) Purpose. The purpose of this section is to comply with Government Code, §2107.002, which requires a state agency that collects delinquent obligations owed to the state agency to establish procedures by rule for collecting a delinquent obligation.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Attorney general--The Office of the Attorney General of Texas.(2) Debtor--Any person liable or potentially liable for an obligation owed to the department or against whom a claim or demand for payment has been made.(3) Delinquent--Payment is past due by law or by customary business practice, and all conditions precedent to payment have occurred or been performed.(4) Department--The Texas Department of Motor Vehicles.(5) Obligation--A debt, judgment, claim, account, fee, fine, tax, penalty, interest, loan, charge, or grant.(6) Security--Any right to have property owned by a person with an obligation to the department sold or forfeited in satisfaction of the obligation, and any instrument granting a cause of action in favor of the department against a person or a person's property, such as a bond, letter of credit, or other collateral that has been pledged to the department to secure an obligation.(c) Notification of obligation and demand letters.(1) The department shall send to the debtor written notice of the obligation, such as an administrative enforcement order that imposes a penalty or fine.(2) If no satisfactory response is received within 30 days after the date that the notice is sent under paragraph (1) of this subsection, the obligation becomes delinquent on the 31st day after the date that notice is sent, unless the department's notice, the law, or a department rule imposes a different deadline for payment. The department shall send the first demand letter not later than the 30th day after the date on which the obligation becomes delinquent.(3) If no satisfactory response is received within 30 days after the day on which the first demand letter was sent, the department shall send the final demand letter no later than 60 days after the date on which the first demand letter was sent. The final demand letter shall include a deadline by which the debtor must respond and, if the department determines in accordance with subsection (e) of this section that the obligation shall be referred to the attorney general, a statement that the obligation, if not paid, shall be referred to the attorney general.(4) Each demand letter must set forth the nature and amount of the obligation owed to the department and must be mailed by first class United States mail, in an envelope that shall bear the notation "Return Service Requested." If an address correction is provided by the United States Postal Service, the department shall resend the demand letter to that address prior to referral to the attorney general.(d) Records. When practicable, the department shall retain a record of a delinquent obligation. A record shall contain documentation of the following information:(1) the identity of each debtor;(2) the correct physical address of the debtor's place of business;(3) the correct physical address of the debtor's residence, where applicable;(4) an accurate physical address for the trustee when a fiduciary or trust relationship exists between the department as principal and the debtor as trustee;(5) a post office box address when it is impractical to obtain a physical address, or when the post office box address is in addition to a correct physical address for the debtor;(6) attempted contacts with the debtor;(7) the substance of communications with the debtor;(8) efforts to locate the debtor and the assets of the debtor;(9) state warrants that may be issued to the debtor;(10) current contracts the debtor has with the department;(11) security interests that the department has against any assets of the debtor;(12) notices of bankruptcy, proofs of claim, dismissals and discharge orders received from the United States bankruptcy courts regarding the debtor; and(13) other information relevant to collection of the delinquent obligation.(e) Referrals of a delinquent obligation to the attorney general.(1) Prior to referral of a delinquent obligation to the attorney general, the department shall:(A) verify the debtor's address and telephone number;(B) send a first and final demand letter to the debtor in accordance with subsection (c) of this section;(C) verify that the obligation is not considered uncollectible under paragraph (2) of this subsection;(D) prepare and file a proof of claim in the case of a bankruptcy when appropriate based on advice from the attorney general; and(E) file a claim in each probate proceeding administering the decedent's estate if the debtor is deceased.(2) The department shall consider a delinquent obligation uncollectible and shall make no further effort to collect if the obligation is not legally collectible or is uncollectible as a practical matter. Examples of an obligation that is not legally collectible or is uncollectible as a practical matter include an obligation, which:(A) has been discharged in bankruptcy;(B) is subject to an applicable limitations provision that would prevent a lawsuit as a matter of law, unless circumstances indicate that the applicable limitations provision has been tolled or is otherwise inapplicable;(C) is owed by an individual who is located out-of-state, or outside the United States, unless a determination is made that the domestication of a Texas judgment in the foreign forum would more likely than not result in collection of the obligation, or that the expenditure of department funds to retain foreign counsel to domesticate the judgment and proceed with collection attempts is justified;(D) is owed by a debtor who is deceased, where each probate proceeding has concluded, and where there are no remaining assets available for distribution; or(E) is owed by a debtor whose circumstances demonstrate a permanent inability to pay or make payments toward the obligation.(3) Except as advised otherwise by the attorney general, the department shall not refer a delinquent obligation to the attorney general unless the delinquent obligation exceeds $2,500.(4) The department shall refer a delinquent obligation to the attorney general for further collection efforts if the department determines, in accordance with this subsection, that the delinquent obligation shall be referred.(f) Supplemental and alternative collection procedures.(1) Liens. Where state law allows a state agency to record a lien securing the obligation, the department shall file the lien in the appropriate records of the county where the debtor's principal place of business, or, where appropriate, the debtor's residence, is located or in such county as may be required by law as soon as the obligation becomes delinquent or as soon as is practicable. Unless the delinquent obligation has been paid in full, any lien securing the indebtedness may not be released without the approval of the attorney representing the department after the matter has been referred to the attorney general.(2) Warrant Holds. The department shall utilize the "warrant hold" procedures of the Comptroller of Public Accounts authorized by Government Code, §403.055, to ensure that no treasury warrants are issued to a debtor and no electronic funds transfers are made to a debtor until the debt is paid, unless an exception applies.</content><note type="source"><p>Source Note: The provisions of this §209.1 adopted to be effective February 4, 2010, 35 TexReg 660; amended to be effective December 7, 2014, 39 TexReg 9367; amended to be effective November 14, 2024, 49 TexReg 8949.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c209/scA/s209.2"><num value="209.2">§209.2</num><heading>Charges for Dishonored Payment Device</heading><content>(a) Purpose. Business and Commerce Code, §3.506, authorizes the holder of a dishonored payment device, seeking collection of the face value of the payment device, to charge the drawer or indorser of the payment device a reasonable processing fee, not to exceed $30. This section prescribes policies and procedures for the processing of a dishonored payment device made payable to the department and the collection of fees because of the dishonor of a payment device made payable to the department.(b) Definitions. The definitions contained in Business and Commerce Code, Chapter 3 govern this section and control to the extent of a conflict with the following definitions in this subsection. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Department--The Texas Department of Motor Vehicles.(2) Dishonored payment device--A payment device that is drawn or made upon a bank or other financial institution, and that is not honored upon presentment for reasons including, but not limited to, the account upon which the payment device has been drawn or made does not exist, is closed, or does not have sufficient funds or credit for payment of the payment device in full.(3) Payment device--A check, item, paper or electronic payment, or other device used as a medium for payment.(c) Processing of a dishonored payment device. Upon receipt of notice from a bank or other financial institution of refusal to honor a payment device made payable to the department, the department shall process the dishonored payment device using the following procedures; however, the department shall not charge a $30 processing fee to the drawer or indorser if the department is prohibited from doing so under Business and Commerce Code, §3.506.(1) The department shall send a written notice by certified mail, return receipt requested, to the drawer or indorser at the drawer or indorser's address as shown on:(A) the dishonored payment device;(B) the records of the bank or other financial institution; or(C) the records of the department.(2) The written notice shall notify the drawer or indorser of the dishonored payment device and shall request payment of the face amount of the payment device, any service charge under §209.23 of this title (relating to Methods of Payment), and a $30 processing fee no later than 10 days after the date of receipt of the notice. The written notice shall also contain the statement required by Penal Code, §32.41(c)(3).(3) The face amount of the payment device, any service charge under §209.23 of this title, and the $30 processing fee must be paid to the department:(A) with a cashier's check or money order, made payable to the Texas Department of Motor Vehicles; or(B) with a valid credit card, approved by the department, and issued by a financial institution chartered by a state or the United States, or a nationally recognized credit organization.(4) Payments made by credit card must include the service charge required by §209.23 of this title.(5) If payment is not received within 10 days after the date of receipt of the notice, the obligation shall be considered delinquent and shall be processed in accordance with §209.1 of this title (relating to Collection of Debts).(d) Supplemental collection procedures. In addition to the procedures described in §209.1 of this title, the department may notify appropriate credit bureaus or agencies if the drawer or indorser fails to pay the face amount of a dishonored payment device, any service charge required under §209.23 of this title, and the $30 processing fee. In addition, the department may refer the matter for criminal prosecution.(e) Any payment to the department from the drawer or indorser of a dishonored payment device shall be applied first to the $30 processing fee, then to any service charge required by §209.23 of this title, and then to the face amount of the dishonored payment device.</content><note type="source"><p>Source Note: The provisions of this §209.2 adopted to be effective February 4, 2010, 35 TexReg 660; amended to be effective March 12, 2014, 39 TexReg 1727; amended to be effective December 7, 2014, 39 TexReg 9367; amended to be effective June 28, 2017, 42 TexReg 3273; amended to be effective November 14, 2024, 49 TexReg 8949.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c209/scB"><num value="B">SUBCHAPTER B</num><heading>PAYMENT OF FEES</heading><section identifier="/us/state/tx/tac/t43/p10/c209/scB/s209.23"><num value="209.23">§209.23</num><heading>Methods of Payment</heading><content>(a) The purpose of this section is to establish the methods of payment that the Texas Department of Motor Vehicles may accept, depending on the transaction, and to make the public aware of a potential service charge for certain methods of payment. All fees for department goods and services and any fees required in the administration of any department program shall be paid to the department with a method of payment accepted by the department, which may be:(1) a valid debit or credit card, approved by the department, and issued by a financial institution chartered by a state or the United States, or a nationally recognized credit organization;(2) electronic funds transfer;(3) a personal check, business check, cashier's check, or money order, payable to the Texas Department of Motor Vehicles;(4) cash in United States currency, paid in person; or(5) by an escrow account, established with the department for the specific purpose of paying fees.(b) Persons paying the department by credit card, debit card, or electronic funds transfer shall pay any applicable service charge per transaction.</content><note type="source"><p>Source Note: The provisions of this §209.23 adopted to be effective February 4, 2010, 35 TexReg 660; amended to be effective November 3, 2011, 36 TexReg 7363; amended to be effective March 12, 2014, 39 TexReg 1727; amended to be effective December 30, 2020, 45 TexReg 9579; amended to be effective November 14, 2024, 49 TexReg 8944.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c209/scB/s209.24"><num value="209.24">§209.24</num><heading>Charges for Public Information</heading><content>In accordance with Government Code, §552.262, the Texas Department of Motor Vehicles adopts the rules of the Office of the Attorney General relating to the Cost of Copies of Public Information at 1 TAC, §§70.1 - 70.12.</content><note type="source"><p>Source Note: The provisions of this §209.24 adopted to be effective March 4, 2018, 43 TexReg 1143.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c209/scC"><num value="C">SUBCHAPTER C</num><heading>DONATIONS OR CONTRIBUTIONS</heading><section identifier="/us/state/tx/tac/t43/p10/c209/scC/s209.33"><num value="209.33">§209.33</num><heading>Donations or Contributions</heading><content>(a) The purpose of this section is to establish the criteria and procedures regarding donations or contributions under Transportation Code, §1001.008 and Government Code, Chapter 575, as well as the standards of conduct governing the relationship between the board, the department's employees, and donors under Government Code, Chapter 2255.(b) The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Board--The board of the Texas Department of Motor Vehicles.(2) Department--The Texas Department of Motor Vehicles.(3) Donation or contribution--Anything of value in any form, including real or personal property, money, materials, or services, given by a donor to the board, as authorized by Transportation Code, §1001.008.(4) Donor--A person who makes a donation or contribution to the board, as authorized by Transportation Code, §1001.008.(5) Executive director--The executive director of the Texas Department of Motor Vehicles.(c) The executive director may accept a donation or contribution valued under $500.(d) Board acceptance of a donation or contribution shall be made in an open meeting. The records of the meeting shall identify the name of the donor and describe the donation or contribution and its purpose.(e) If a donor specifies the purpose of the donation or contribution, the department shall use the donation or contribution for that purpose to the extent the specified purpose complies with Transportation Code, §1001.008.(f) The department may document terms and conditions relating to a donation or contribution through a donation or contribution agreement with the donor.(g) Pursuant to Transportation Code, §1005.001 and Government Code, §2255.001, board members and department employees shall comply with the standard of conduct imposed by Government Code, Chapter 572 and any other law regulating the ethical conduct of state officers and employees when interacting with a donor or potential donor.(h) A board member who serves as an officer or director of a potential donor to the board shall not vote on a proposal or decision pending before the potential donor to make a donation or contribution to the board.(i) If the department's executive director serves as an officer or director of a potential donor to the board, the executive director shall not vote on a proposal or decision pending before the potential donor to make a donation or contribution to the board.(j) A board member or a department employee shall not authorize a donor to use department property unless the following requirements are met:(1) the board member or the department, as applicable, must have statutory authority to do so;(2) the property shall only be used for a state purpose; and(3) the property shall be used in accordance with a contract between the department and the donor that complies with Texas law.</content><note type="source"><p>Source Note: The provisions of this §209.33 adopted to be effective March 29, 2012, 37 TexReg 2087; amended to be effective November 14, 2024, 49 TexReg 8944.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p10/c210"><num value="210">CHAPTER 210</num><heading>PROCUREMENT AND CONTRACTING</heading><subchapter identifier="/us/state/tx/tac/t43/p10/c210/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t43/p10/c210/scA/s210.1"><num value="210.1">§210.1</num><heading>Definitions</heading><content>(a) As used throughout this chapter, the words and terms defined in the State Purchasing and General Services Act, Government Code, Title 10, Subtitle D, and the Code Construction Act, Government Code, Chapter 311 will have the same meaning defined therein, and each word or term listed in this chapter will have the meaning set forth herein, unless: (1) its use clearly requires a different meaning; or (2) a different definition is prescribed in this section, or for a particular section of this chapter or portion thereof.(b) The following words and terms, when used in this chapter, will have the following meaning unless the context clearly indicates otherwise:(1) Act--Government Code, Chapters 2151-2177, the State Purchasing and General Services Act. (2) Board--The Board of the Texas Department of Motor Vehicles. (3) Contract--A legally enforceable written agreement, including a purchase order, between the department and a contractor for goods, products, or services. (4) Contractor--An individual or business entity that has a contract to provide goods, products, or services to the department. (5) Days--Calendar days.(6) Department--The Texas Department of Motor Vehicles. (7) Executive director--The executive director of the department. (8) Historically underutilized business (HUB)--A business as defined in Government Code, §2161.001(2).(9) Interagency contract or interagency agreement--An agreement entered into under the Interagency Cooperation Act, Government Code, Chapter 771.(10) Interlocal contract or interlocal agreement--An agreement entered into under the Interlocal Cooperation Act, Government Code, Chapter 791.(11) Purchase--Any form of acquisition for goods, products, or services, including by lease or revenue contract, under the Act. (12) Respondent--An individual or business entity that has submitted a bid, proposal, or other expression of interest in response to a specific solicitation for goods, products, or services.</content><note type="source"><p>Source Note: The provisions of this §210.1 adopted to be effective March 6, 2025, 50 TexReg 1696.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c210/scA/s210.2"><num value="210.2">§210.2</num><heading>Delegation of Approval and Signature Authority</heading><content>(a) Purpose. The purpose of this section is to establish the approval authority and responsibilities for executing contracts required by the department. (b) Applicability. This section applies to all contracts, interagency contracts, interlocal contracts, as well as informal letters of agreement, memoranda, and agreements. (c) Board Delegation. The board delegates the following duties and authorities to the executive director of the department:(1) the duty and authority to execute contracts, to include approving and signing contracts on behalf of the department; (2) the authority to further delegate contract approval and signature authority to the executive director's designees for contracts with a dollar value up to and including $1,000,000; and(3) the authority to further delegate contract approval and signature authority to a deputy executive director of the department for contracts with a dollar value exceeding $1,000,000 as allowed by Government Code, §2261.254.</content><note type="source"><p>Source Note: The provisions of this §210.2 adopted to be effective March 6, 2025, 50 TexReg 1696.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c210/scB"><num value="B">SUBCHAPTER B</num><heading>HISTORICALLY UNDERUTILIZED BUSINESS PROGRAM</heading><section identifier="/us/state/tx/tac/t43/p10/c210/scB/s210.21"><num value="210.21">§210.21</num><heading>Purpose</heading><content>This subchapter establishes policies and procedures consistent with Government Code, Chapter 2161.</content><note type="source"><p>Source Note: The provisions of this §210.21 adopted to be effective December 7, 2014, 39 TexReg 9369.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c210/scB/s210.22"><num value="210.22">§210.22</num><heading>Program</heading><content>The board of the Texas Department of Motor Vehicles adopts the rules of the Comptroller of Public Accounts relating to the Historically Underutilized Business (HUB) Program at 34 TAC, Part 1, Chapter 20, Subchapter D, Division 1.</content><note type="source"><p>Source Note: The provisions of this §210.22 adopted to be effective December 7, 2014, 39 TexReg 9369; amended to be effective March 4, 2018, 43 TexReg 1143.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c210/scC"><num value="C">SUBCHAPTER C</num><heading>CONTRACT MANAGEMENT</heading><section identifier="/us/state/tx/tac/t43/p10/c210/scC/s210.41"><num value="210.41">§210.41</num><heading>Claims for Purchase Contracts</heading><content>(a) Purpose. Government Code, Chapter 2260, provides a resolution process for certain contract claims against the state. Chapter 2260 applies to contracts of the department entered into under the State Purchasing and General Services Act. This section governs the filing, negotiation, and mediation of a claim. When used in this section, the terms "contract" and "contractor" are defined in Government Code, §2260.001. (b) Filing of claim. A contractor may file a notice of claim with the executive director within 180 days after the date of the event giving rise to the claim. The claim must contain: (1) the nature of the alleged breach; (2) any amount the contractor seeks as damages; and (3) the legal theory supporting recovery. (c) Negotiation. (1) The executive director shall negotiate with the contractor to resolve the claim;(2) Negotiations will begin no later than the 120th day after the date the claim is received by the department;(3) Negotiations may be written or oral; and(4) The executive director may afford the contractor an opportunity for a meeting to informally discuss the claim and provide the contractor with an opportunity to present relevant information. (d) Mediation. The parties may agree to mediate a claim through an impartial third party. For the purposes of this section, "mediation" is assigned the meaning set forth in Civil Practice and Remedies Code, §154.023. The mediation is subject to the provisions of the Governmental Dispute Resolution Act, Government Code, Chapter 2009. The parties may be assisted in the mediation by legal counsel or other individual. (1) The department and the contractor may agree to nonbinding mediation;(2) The department will agree to mediation if the executive director determines that mediation may speed resolution of the claim or otherwise benefit the department;(3) The mediator shall possess the qualifications required under Civil Practice and Remedies Code, §154.052; (4) Unless otherwise agreed in writing, each party shall be responsible for its own costs incurred in connection with a mediation, including without limitation, costs of document reproduction, attorney's fees, consultant fees and expert fees, and the cost of the mediator shall be divided equally between the parties. (e) Final offer.(1) The executive director will make a final offer to the contractor within 90 days of beginning negotiations; and (2) If the final offer is acceptable to the contractor, the contractor must advise the executive director in writing within 20 days of the date of the final offer. The department will forward a settlement agreement to the contractor for signature to resolve the claim. (f) Contested case hearing. If the contractor is dissatisfied with the final offer, or if the claim is not resolved before the 270th day after the claim is filed with the department, then, unless the parties agree in writing to an extension of time, the contractor may file a request with the executive director for an administrative hearing before the State Office of Administrative Hearings to resolve the unresolved issues of the claim under the provisions of Government Code, Chapter 2260, Subchapter C.</content><note type="source"><p>Source Note: The provisions of this §210.41 adopted to be effective March 6, 2025, 50 TexReg 1696.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c210/scC/s210.42"><num value="210.42">§210.42</num><heading>Protest of Department Purchases under the State Purchasing and General Services Act</heading><content>(a) Purpose. The purpose of this section is to provide a procedure for respondents to protest purchases made by the department. Purchases made by the Texas Procurement and Support Services division of the Texas Comptroller of Public Accounts' office on behalf of the department are addressed in 34 TAC, Part 1, Chapter 20. (b) Filing of protest. (1) A respondent who has submitted a written response to a department solicitation may file a written protest. (2) The protest must contain: (A) the specific statutory or regulatory provision the protestant alleges the solicitation, contract award or tentative award violated; (B) a specific description of each action by the department that the protestant alleges violated the identified statutory or regulatory provision; (C) a precise statement of the relevant facts, including: (i) sufficient documentation to establish that the protest has been timely filed; and (ii) a description of the resulting adverse impact to the protestant, department and the state; (D) a statement of any issues of law or fact that the protestant contends must be resolved; (E) a statement of the protestant's argument and authorities that the protestant offers in support of the protest;(F) an explanation of the subsequent action the protestant is requesting; and (G) a statement that copies of the protest have been mailed or delivered to other identifiable respondents. (3) The protest must be signed by an authorized representative of the protestant and the signature to the protest must be notarized.(4) The protest must be filed in the time period specified in this section.(5) The protest must be mailed or delivered to the department, to the attention of the procurement director.(c) Timeliness. To be considered timely, the protest must be filed:(1) by the end of the posted solicitation period, if the protest concerns the solicitation documents or actions associated with the publication of solicitation documents;(2) by the day of the award of a contract resulting from the solicitation, if the protest concerns the evaluation or method of evaluation for a response to the solicitation; or(3) no later than 10 days after the notice of award, if the protest concerns the award.(d) Suspension of contract award or performance. If a protest or appeal of a protest has been filed, then the department will not proceed with the contract award or performance under the contract resulting from the solicitation unless the executive director or procurement director makes a written determination that the contract award should be made or performance under the contract should proceed without delay to protect the best interests of the state and department. (e) Action by department. Upon receipt of a protest, the department may:(1) dismiss the protest if:(A) it is not timely; or(B) it does not meet the requirements of subsection (b) of this section; or(2) consider the protest under the procedures in this section.(f) Informal resolution. The procurement director may solicit written responses to the protest from other affected vendors and attempt to settle and resolve the protest by mutual agreement. (g) Written determination. If the protest is not resolved by agreement, the procurement director will issue a written determination to the protesting party and other respondents, setting forth the reason for the determination. The procurement director may determine that: (1) no violation has occurred; or (2) a violation has occurred and it is necessary to take remedial action as appropriate to the circumstances, which may include: (A) declare the purchase void; (B) reverse the contract award; or (C) re-advertise the purchase using revised specifications. (h) Appeal. (1) A protestant may appeal the determination of a protest, to the general counsel. An appeal must be in writing and received in the office of general counsel not later than 10 days after the date the procurement director sent written notice of their determination. The scope of the appeal shall be limited to review of the procurement director's determination. (2) The general counsel may:(A) refer the matter to the executive director for consideration and a final written decision that resolves the protest; or (B) may issue a written decision that resolves the protest. (3) An appeal that is not filed in a timely manner may not be considered unless good cause for delay is shown or the executive director determines that an appeal raises issues that are significant to agency procurement practices or procedures in general. (4) A written decision of the executive director or general counsel shall be the final administrative action of the department.</content><note type="source"><p>Source Note: The provisions of this §210.42 adopted to be effective March 6, 2025, 50 TexReg 1696.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c210/scC/s210.43"><num value="210.43">§210.43</num><heading>Enhanced Contract and Performance Monitoring</heading><content>(a) The department will apply risk assessment factors to its contracts as defined in Government Code, §2261.253 to identify those contracts that require enhanced contract or performance monitoring. The risk assessment may consider the following factors: (1) dollar amount of the contract; (2) total contract duration; (3) contractor past performance; (4) risk of fraud, abuse or waste; (5) special circumstances of the project;(6) the scope of the goods, products, or services provided under the contract;(7) business process impact of failure or delay; and (8) the board or executive director's request for enhanced contract or performance monitoring. (b) The department's contract management office or procurement director shall notify the board of the results of the risk assessment and present information to the board resulting from the enhanced contract or performance monitoring. (c) The department's contract management office or procurement director shall immediately notify the board of any serious issue or risk that is identified under this section.</content><note type="source"><p>Source Note: The provisions of this §210.43 adopted to be effective March 6, 2025, 50 TexReg 1696.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p10/c211"><num value="211">CHAPTER 211</num><heading>CRIMINAL HISTORY OFFENSE AND ACTION ON LICENSE</heading><subchapter identifier="/us/state/tx/tac/t43/p10/c211/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t43/p10/c211/scA/s211.1"><num value="211.1">§211.1</num><heading>Purpose and Definitions</heading><content>(a) The licenses issued by the department create positions of trust. License holder services involve access to confidential information; conveyance, titling, and registration of private property; possession of monies belonging to or owed to private individuals, creditors, and governmental entities; and compliance with federal and state environmental and safety regulations. License holders are provided with opportunities to engage in fraud, theft, money laundering, and related crimes, and to endanger the public through violations of environmental and safety regulations. Many license holders provide services directly to the public, so licensure provides persons predisposed to commit assaultive or sexual crimes with greater opportunities to engage in such conduct. To protect the public from these harms, the department shall review the criminal history of license applicants before issuing a new or renewal license and may take action on a license holder who commits an offense during the license period based on the guidelines in this chapter. (b) When used in this chapter, the following words and terms have the following meanings, unless the context clearly indicates otherwise. (1) "Department" means the Texas Department of Motor Vehicles. (2) "License" means any license issued by the department under: (A) Transportation Code, Chapter 503; (B) Occupations Code, Chapter 2301; or(C) Occupations Code, Chapter 2302.(3) "Retail license types" means those license types which require holders to interact directly with the public, but does not include other license types that do not generally interact directly with the public, including manufacturers, distributors, and general distinguishing number holders for the following vehicle categories: ambulance, axle, bus, engine, fire truck/fire fighting vehicle, heavy duty truck, transmission, wholesale motor vehicle dealer, and wholesale motor vehicle auction.</content><note type="source"><p>Source Note: The provisions of this §211.1 adopted to be effective October 31, 2020, 45 TexReg 7435; amended to be effective November 1, 2025, 50 TexReg 6501.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c211/scA/s211.2"><num value="211.2">§211.2</num><heading>Application of Chapter</heading><content>(a) This chapter applies to the following persons: (1) applicants and holders of any license; and (2) persons who are acting at the time of application, or will later act, in a representative capacity for an applicant or holder of a license, including the applicant's or holder's officers, directors, members, managers, trustees, partners, principals, or managers of business affairs. (b) In this chapter a "conviction" includes a deferred adjudication that is considered to be a conviction under Occupations Code, §53.021(d).</content><note type="source"><p>Source Note: The provisions of this §211.2 adopted to be effective October 31, 2020, 45 TexReg 7435; amended to be effective November 1, 2025, 50 TexReg 6501.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c211/scB"><num value="B">SUBCHAPTER B</num><heading>CRIMINAL HISTORY EVALUATION GUIDELINES AND PROCEDURES</heading><section identifier="/us/state/tx/tac/t43/p10/c211/scB/s211.10"><num value="211.10">§211.10</num><heading>Criminal Offense Guidelines</heading><content>(a) Under Occupations Code, Chapter 53, the department may suspend or revoke an existing license or disqualify an applicant from receiving a license because of a person's conviction of a felony or misdemeanor if the crime directly relates to the duties and responsibilities of the licensed occupation. (b) The department has determined under the factors listed in Occupations Code, §53.022 that offenses detailed in subsection (c) of this section directly relate to the duties and responsibilities of license holders, either because the offense entails a violation of the public trust, issuance of a license would provide an opportunity to engage in further criminal activity of the same type, or the offense demonstrates the person's inability to act with honesty, trustworthiness, and integrity. Such offenses include crimes under the laws of another state, the United States, or a foreign jurisdiction, if the offense contains elements that are substantially similar to the elements of an offense under the laws of this state. The list of offenses in subsection (c) of this section is in addition to offenses that are independently disqualifying under Occupations Code, §53.021. (c) The list of offenses in this subsection is intended to provide guidance only and is not exhaustive of the offenses that may relate to a particular regulated occupation. After due consideration of the circumstances of the criminal act and its relationship to the position of trust involved in the particular licensed occupation, the department may find that an offense not described below also renders a person unfit to hold a license based on the criteria listed in Occupations Code, §53.022. (1) The following offenses apply to all license types:(A) offenses involving fraud, theft, deceit, misrepresentation, or that otherwise reflect poorly on the person's honesty or trustworthiness, including an offense defined as moral turpitude; (B) offenses involving forgery, falsification of records, perjury, or the unauthorized sale, manufacturing, alteration, issuance, or distribution of a license plate or temporary tag; (C) offenses involving the offering, paying, or taking of bribes, kickbacks, or other illegal compensation; (D) felony offenses against public administration; (E) felony offenses under a state or federal statute or regulation involving the manufacture, sale, finance, distribution, repair, salvage, possession, dismantling, or demolition, of motor vehicles or motor vehicle parts; (F) felony offenses under a state or federal statute or regulation related to emissions standards, waste disposal, water contamination, air pollution, or other environmental offenses; (G) offenses committed while engaged in a licensed activity or on licensed premises, including the falsification of a motor vehicle inspection required by statute; (H) felony offenses involving the possession, manufacture, delivery, or intent to deliver controlled substances, simulated controlled substances, dangerous drugs, or engaging in an organized criminal activity; and(I) offenses of attempting or conspiring to commit any of the foregoing offenses.(2) The following additional offenses apply to retail license types:(A) felony offenses against real or personal property belonging to another; (B) offenses involving the sale or disposition of another person's real or personal property; (C) a reportable felony offense conviction under Chapter 62, Texas Code of Criminal Procedure for which the person must register as a sex offender; (D) an offense against the family as described by Penal Code, §§25.02, 25.04, 25.07, 25.072, 25.08, or 25.11; (E) felony offenses under Penal Code, §28.03 involving a motor vehicle that is damaged, destroyed, or tampered with during the removal or attempted removal of a catalytic converter;(F) offenses against the person under Penal Code, Title 5, including offenses in which use of a firearm resulted in fear, intimidation, or harm of another person, and in Penal Code, Chapter 49, a felony offense of driving while intoxicated that resulted in the harm of another person; (G) a felony stalking offense as described by Penal Code, §42.072; (H) a felony offense against public order and decency as described by Penal Code §§43.24, 43.25, 43.251, 43.26, 43.261, or 43.262; and (I) offenses of attempting or conspiring to commit any of the foregoing offenses. (d) When determining a person's present fitness for a license, the department shall also consider the following evidence: (1) the extent and nature of the person's past criminal activity; (2) the age of the person when the crime was committed; (3) the amount of time that has elapsed since the person's last criminal activity; (4) the conduct and work activity of the person before and after the criminal activity; (5) evidence of the person's rehabilitation or rehabilitative effort while incarcerated or after release; (6) evidence of the person's compliance with any conditions of community supervision, parole, or mandatory supervision; and (7) other evidence of the person's present fitness, including letters of recommendation. (e) It is the person's responsibility to obtain and provide to the licensing authority evidence regarding the factors listed in subsection (d) of this section.</content><note type="source"><p>Source Note: The provisions of this §211.10 adopted to be effective November 1, 2025, 50 TexReg 6501.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c211/scB/s211.11"><num value="211.11">§211.11</num><heading>Imprisonment</heading><content>(a) The department shall deny a license application if the applicant or a person described by §211.2(a)(2) of this chapter (relating to Application of Chapter) is imprisoned while a new or renewal license application is pending. (b) The department shall revoke a license upon the imprisonment of a license holder following a:(1) felony conviction for: (A) an offense that directly relates to the duties and responsibilities of the licensed occupation;(B) an offense listed in Article 42A.054, Code of Criminal Procedure; or(C) a sexually violent offense, as defined by Article 62.001, Code of Criminal Procedure;(2) felony community supervision revocation;(3) revocation of parole; or(4) revocation of mandatory supervision.(c) A person currently imprisoned because of a felony conviction may not obtain a license, renew a previously issued license, or act in a representative capacity for an application or license holder as described by §211.2(a)(2). (d) The department may revoke a license upon the imprisonment for a felony conviction, felony community supervision revocation, revocation of parole, or revocation of mandatory supervision of a person described by §211.2(a)(2) of this chapter who remains employed with the license holder.</content><note type="source"><p>Source Note: The provisions of this §211.11 adopted to be effective November 1, 2025, 50 TexReg 6501.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c211/scB/s211.12"><num value="211.12">§211.12</num><heading>Criminal History Evaluation Letters</heading><content>(a) Pursuant to Texas Occupations Code, Chapter 53, Subchapter D, a person may request that the department evaluate the person's eligibility for a specific occupational license regulated by the department by: (1) submitting a request on a form approved by the department for that purpose; and (2) paying the required Criminal History Evaluation Letter fee of $100. (b) The department shall respond to the request not later than the 90th day after the date the request is received.</content><note type="source"><p>Source Note: The provisions of this §211.12 adopted to be effective November 1, 2025, 50 TexReg 6501.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c211/scB/s211.13"><num value="211.13">§211.13</num><heading>Fingerprint Requirements for Designated License Types</heading><content>(a) The requirements of this section apply to an applicant for a new or renewal license for the license types designated in Chapter 215 or Chapter 221 of this title as requiring fingerprints for licensure. (b) The following persons may be required to submit a complete and acceptable set of fingerprints to the Texas Department of Public Safety and pay required fees for purposes of obtaining criminal history record information from the Texas Department of Public Safety and the Federal Bureau of Investigation: (1) a person applying for a new license, license amendment due to change in ownership, or license renewal; and(2) a person acting in a representative capacity for an applicant or license holder who is designated as an authorized representative on a licensing application, including an officer, director, manager, trustee, principal, manager of business affairs, or other employee whose act or omission in the course or scope of the representation would be cause for denying, revoking, or suspending a license. (c) After reviewing a licensure application and licensing records, the department will notify the applicant or license holder of which persons in subsection (b) of this section are required to submit fingerprints to the Texas Department of Public Safety. The department will not require a person to submit fingerprints if the person previously submitted a complete and acceptable set of fingerprints for a currently active license issued by the department, and the person remains fully enrolled in the Texas Department of Public Safety's criminal history clearinghouse and validly subscribed in the federal criminal history database maintained by the Federal Bureau of Investigation.</content><note type="source"><p>Source Note: The provisions of this §211.13 adopted to be effective November 1, 2025, 50 TexReg 6501.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p10/c215"><num value="215">CHAPTER 215</num><heading>MOTOR VEHICLE DISTRIBUTION</heading><subchapter identifier="/us/state/tx/tac/t43/p10/c215/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t43/p10/c215/scA/s215.1"><num value="215.1">§215.1</num><heading>Purpose and Scope</heading><content>Occupations Code, Chapters 2301 and 2305, and Transportation Code, Chapters 503, 504, 520, and 1001 -1005 require the Texas Department of Motor Vehicles to license and regulate the vehicle industry to ensure a sound system of distributing and selling vehicles; provide for compliance with manufacturers' warranties; and to prevent fraud, unfair practices, discrimination, impositions, and other abuses of the people of this state in connection with the distribution and sale of vehicles. This chapter describes licensing requirements and the rules governing the vehicle industry.</content><note type="source"><p>Source Note: The provisions of this §215.1 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704; amended to be effective July 1, 2024, 49 TexReg 8953.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scA/s215.2"><num value="215.2">§215.2</num><heading>Definitions; Conformity with Statutory Requirements</heading><content>(a) The definitions contained in Occupations Code, Chapters 2301 and 2305, and Transportation Code, Chapters 503, 520, and 1001-1005 govern this chapter. In the event of a conflict, the definition or procedure referenced in Occupations Code, Chapter 2301 controls.(b) The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Board--The Board of the Texas Department of Motor Vehicles, including department staff to whom the board delegates a duty.(2) Day--The word "day" refers to a calendar day.(3) Director--The director of the division that regulates the distribution and sale of motor vehicles, including any department staff to whom the director delegates a duty assigned under this chapter.(4) Employee--A natural person employed directly by the license holder for wages or a salary.(5) GDN--General distinguishing number, a license issued under Transportation Code, Chapter 503.(6) Governmental agency--A state agency other than the department, all local governmental agencies, and all agencies of the United States government, whether executive, legislative, or judicial.(7) Standard license plate--A motor vehicle license plate issued by the department to a license holder for use by the license holder that is not a personalized prestige dealer's license plate issued under Transportation Code §503.0615.</content><note type="source"><p>Source Note: The provisions of this §215.2 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective March 11, 2014, 39 TexReg 1728; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704; amended to be effective November 14, 2024, 49 TexReg 8953.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c215/scB"><num value="B">SUBCHAPTER B</num><heading>LICENSES, GENERALLY</heading><section identifier="/us/state/tx/tac/t43/p10/c215/scB/s215.81"><num value="215.81">§215.81</num><heading>Purpose and Scope</heading><content>This subchapter implements Occupations Code, Chapter 2301 and Transportation Code, Chapter 503, regarding licenses required under those chapters.</content><note type="source"><p>Source Note: The provisions of this §215.81 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scB/s215.82"><num value="215.82">§215.82</num><heading>Replacement Standard License Plates and Stickers</heading><content>A license holder may receive a replacement dealer's, converter's, drive-a-way in-transit, or manufacturer's standard license plate or assigned sticker, as applicable, at no charge if the license holder:(1) did not receive the applicable standard license plate or sticker;(2) makes the request within 45 days of the date the applicable standard license plate or sticker was mailed to the license holder; and(3) submits a request electronically in the licensing system designated by the department.</content><note type="source"><p>Source Note: The provisions of this §215.82 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective October 7, 2012, 37 TexReg 7753; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scB/s215.83"><num value="215.83">§215.83</num><heading>License Applications, Amendments, or Renewals</heading><content>(a) An application for a new license, license amendment, or license renewal filed with the department must be:(1) filed electronically in the department-designated licensing system on a form approved by the department;(2) completed by the applicant, license holder, or authorized representative who is an employee, a licensed attorney, or a certified public accountant;(3) accompanied by the required fee, paid by credit card or by electronic funds transfer, drawn from an account held by the applicant or license holder, or drawn from a trust account of the applicant's attorney or certified public accountant; and(4) accompanied by proof of a surety bond, if required.(b) An authorized representative of the applicant or license holder who files an application with the department on behalf of an applicant or license holder may be required to provide written proof of authority to act on behalf of the applicant or license holder.(c) The department will not provide information regarding the status of an application, application deficiencies, or pending new license numbers to a person other than a person listed in subsection (a)(2) of this section, unless that person files a written request under Government Code, Chapter 552.(d) Prior to the expiration of a license, a license holder or authorized representative must electronically file with the department a sufficient license renewal application. Failure to receive notice of license expiration from the department does not relieve the license holder from the responsibility to timely file a sufficient license renewal application. A license renewal application is timely filed if the department receives a sufficient license renewal application on or before the date the license expires.(e) An application for a new license, license amendment, or license renewal filed with the department must be sufficient. An application is sufficient if the application:(1) includes all information and documentation required by the department; and(2) is filed in accordance with subsection (a) of this section.(f) If an applicant, license holder, or authorized representative does not provide the information or documentation required by the department, the department will issue a written notice of deficiency. The information or documentation requested in the written notice of deficiency must be received by the department within 20 calendar days of the date of the notice of deficiency, unless the department issues a written extension of time. If an applicant, license holder, or authorized representative fails to respond or fully comply with all deficiencies listed in the written notice of deficiency within the time prescribed by this subsection, the application will be deemed withdrawn and will be administratively closed.(g) The department will evaluate a sufficient application for a new license, license amendment, or license renewal in accordance with applicable rules and statutes to determine whether to approve or deny the application. If the department determines that there are grounds for denial of the application, the department may pursue denial of the application in accordance with Subchapter G of this chapter (relating to Administrative Sanctions).(h) The department will process an application for a new license, license amendment, or license renewal filed by a military service member, military spouse, or military veteran in accordance with Occupations Code, Chapter 55 and §215.91 of this title (relating to License Processing for Military Service Members, Spouses, and Veterans). (i) A license holder who timely files a sufficient license renewal application in accordance with subsection (d) of this section may continue to operate under the expired license until the license renewal application is determined in accordance with Government Code §2001.054.(j) A license holder who fails to timely file a sufficient license renewal application in accordance with subsection (d) of this section is not authorized to continue licensed activities after the date the license expires. A license holder may dispute a decision that a license renewal application was not timely or sufficient by submitting evidence to the department demonstrating that the license renewal application was timely and sufficient. Such evidence must be received by the department within 15 days of the date the department issues notice that a timely or sufficient license renewal application was not received by the department.(k) The department shall accept a late license renewal application up to 90 days after the date the license expires. In accordance with subsection (j) of this section, the license holder is not authorized to continue licensed activities after the date the license expires until the department approves the late license renewal application. If the department grants a license renewal under this section, the licensing period begins on the date the department issues the renewed license. The license holder may resume licensed activities upon receipt of the department's written verification or upon receipt of the renewed license.(l) If the department has not received a late license renewal application within 90 days after the date the license expires, the department will close the license. A person must apply for and receive a new license before that person is authorized to resume activities requiring a license.(m) A dealer's standard license plate issued in accordance with Transportation Code, Chapter 503, Subchapter C expires on the date the associated license expires, is canceled, or when a license renewal application is determined, whichever is later.</content><note type="source"><p>Source Note: The provisions of this §215.83 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective October 7, 2012, 37 TexReg 7753; amended to be effective March 11, 2014, 39 TexReg 1728; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective December 29, 2019, 44 TexReg 8037; amended to be effective June 1, 2024, 49 TexReg 2704; amended to be effective October 9, 2025, 50 TexReg 6506.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scB/s215.84"><num value="215.84">§215.84</num><heading>Brokering, New Motor Vehicles</heading><content>(a) Unless excluded from the definition of "Broker" in Occupations Code, §2301.002, a person may not act, offer to act, or claim to be a broker.(b) For purposes of this chapter, the phrase "arranges or offers to arrange a transaction," as used in the definition of broker in Occupations Code, §2301.002, includes the practice of arranging or offering to arrange a transaction involving the sale of a new motor vehicle for a fee, commission, or other valuable consideration. Advertising is not acting as a broker, provided the person's business primarily is broadcasting, printing, publishing, or advertising for others in their own names.(c) A buyer referral service, program, plan, club, or any other entity that accepts a fee for arranging a transaction involving the sale of a new motor vehicle is a broker. The payment of a fee to such entity is aiding and abetting brokering. However, a referral service, program, plan, club, or other entity that forwards a referral to a franchised dealership may lawfully operate in a manner that includes all of the following conditions:(1) There is no exclusive market area offered to a dealer by the program. All dealers are allowed to participate in the program on equal terms.(2) Participation by a dealer in the program is not restricted by conditions, such as limiting the number of line-makes or discrimination by size of dealership or location. The total number of participants in the program may be restricted if the program is offered to all dealers at the same time, with no regard to the line-make.(3) All participants pay the same fee for participation in the program. The program fee shall be a weekly, monthly, or annual fee, regardless of the size, location, or line-makes sold by the franchised dealer.(4) A person is not to be charged a fee on a per referral fee basis or any other basis that could be considered a transaction-related fee.(5) The program does not set or suggest to the dealer any price of a motor vehicle or a trade-in.(6) The program does not advertise or promote its plan in a manner that implies that the buyer, as a customer of that program, receives a special discounted price that cannot be obtained unless the customer is referred through that program.(7) A program must comply with Subchapter F of this chapter (related to Advertising).(d) This section does not apply to a person who is not a broker as defined in Occupations Code, §2301.002.</content><note type="source"><p>Source Note: The provisions of this §215.84 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scB/s215.85"><num value="215.85">§215.85</num><heading>Brokering, Used Motor Vehicles</heading><content>(a) Transportation Code, §503.021 prohibits a person from engaging in business as a dealer, directly or indirectly, including by consignment without a GDN. Except as provided by this section, "directly or indirectly" includes the practice of arranging or offering to arrange a transaction involving the sale of a used motor vehicle for a fee, commission, or other valuable consideration. A person who is a bona fide employee of a dealer holding a GDN and acts for the dealer is not a broker for the purposes of this section.(b) A buyer referral service, program, plan, club, or any other entity that accepts a fee for arranging a transaction involving the sale of a used motor vehicle is required to meet the requirements for and obtain a GDN, unless the referral service, program, plan, or club is operated in the following manner:(1) There is no exclusive market area offered to a dealer by the program. All dealers are allowed to participate in the program on equal terms.(2) Participation by a dealer in the program is not restricted by conditions, such as limiting the number of line-makes or discrimination by size of dealer or location. The total number of participants in the program may be restricted if the program is offered to all dealers at the same time, with no regard to the line-make.(3) All participants pay the same fee for participation in the program. The program fee shall be a weekly, monthly, or annual fee, regardless of the size, location, or line-makes sold by the dealer.(4) A person is not to be charged a fee on a per referral fee basis or any other basis that could be considered a transaction-related fee.(5) The program does not set or suggest to the dealer any price of a motor vehicle or a trade-in.(6) The program does not advertise or promote its plan in a manner that implies that the buyer, as a customer of that program, receives a special discounted price that cannot be obtained unless the customer is referred through that program.(7) A program complies with Subchapter F of this chapter (relating to Advertising).(c) A dealer holding a GDN pursuant to Transportation Code, §503.029(a)(6)(B), may pay a referral fee in cash or value to an individual who has purchased a vehicle from the dealer within the four-year period preceding the referral. The fee may be paid contingent upon either the new referred individual:(1) purchasing a vehicle from the dealer; or(2) the referral of a new potential purchaser.</content><note type="source"><p>Source Note: The provisions of this §215.85 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective September 10, 2018, 43 TexReg 5809; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scB/s215.87"><num value="215.87">§215.87</num><heading>License and Standard License Plate Terms and Fees</heading><content>(a) Except as provided by other law, the term of a license or standard license plate issued by the department to a dealer, converter, drive-a-way operator, distributor, or manufacturer under Occupations Code, Chapter 2301 or Transportation Code, Chapter 503 is two years.(b) A standard license plate issued by the department expires on the date the associated license expires or is canceled, closed, or revoked.(c) The fee for a license or standard license plate is computed by multiplying the applicable annual fee by the number of years of the license term. The entire fee including any tax owed under Tax Code §152.027 is due at the time of application for the license or license renewal.(d) A dealer may apply for a personalized prestige plate issued under Transportation Code §503.0615 by completing a department form, providing a copy of a department-issued license, and submitting payment to a county tax assessor-collector. A personalized prestige plate may be renewed in an electronic system designated by the department.</content><note type="source"><p>Source Note: The provisions of this §215.87 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scB/s215.89"><num value="215.89">§215.89</num><heading>Fitness</heading><content>(a) In determining a person's fitness for a license issued or to be issued by the department under Transportation Code, Chapter 503 or Occupations Code, Chapter 2301, the board will consider:(1) the requirements of Occupations Code, Chapter 53;(2) the provisions of Occupations Code, §2301.651 and Transportation Code §503.034;(3) any specific statutory licensing criteria or requirements;(4) mitigating factors; and(5) other evidence of a person's fitness, as allowed by law, including the standards identified in subsection (b) of this section.(b) The board may determine that a person is unfit to perform the duties and discharge the responsibilities of a license holder and may, following notice and an opportunity for hearing, deny a person's license application or revoke or suspend a license if the person:(1) fails to meet or maintain the qualifications and requirements of licensure;(2) is convicted, or considered convicted under Occupations Code §53.021(d), by any local, state, federal, or foreign authority of an offense that directly relates to the duties or responsibilities of the licensed occupation as described in §211.3 of this title (relating to Criminal Offense Guidelines) or is convicted, or considered convicted under Occupations Code §53.021(d), of an offense that is independently disqualifying under Occupations Code §53.021;(3) omits information or provides false, misleading, or incomplete information on an initial application, renewal application, or application attachment, for a license or other authorization issued by the department or by any local, state, or federal regulatory authority;(4) is found to have violated an administrative or regulatory requirement based on action taken on a license, permit, or other authorization, including disciplinary action, revocation, suspension, denial, corrective action, cease and desist order, or assessment of a civil penalty, administrative fine, fee, or similar assessment, by the board, department, or any local, state, or federal regulatory authority;(5) is insolvent or fails to obtain or maintain financial resources sufficient to meet the financial obligations of the license holder;(6) is a corporation or other legal entity that fails to maintain its charter, certificate, registration, or other authority to conduct business in Texas;(7) is assessed a civil penalty, administrative fine, fee, or similar assessment, by the board, department, or a local, state, or federal regulatory authority, for violation of a requirement governing or impacting the distribution or sale of a vehicle or a motor vehicle, or the acquisition, sale, repair, rebuild, reconstruction, or other dealing of a salvage motor vehicle or nonrepairable motor vehicle, and fails to comply with the terms of a final order or fails to pay the penalty pursuant to the terms of a final order;(8) was or is a person described in §211.2 of this title (relating to Application of Subchapter) whose actions or omissions could be considered unfit, who is ineligible for licensure, or whose current or previous license, permit, or other authorization issued by any local, state, or federal regulatory authority has been subject to disciplinary action including suspension, revocation, denial, corrective action, cease and desist order, or assessment of a civil penalty, administrative fine, fee, or similar assessment;(9) has an ownership, organizational, managerial, or other business arrangement, that would allow a person the power to direct or cause the direction of the management, policies, and activities, of an applicant or license holder, whether directly or indirectly, when the person could be considered unfit, ineligible for licensure, or whose current or previous license, permit, or other authorization issued by any local, state, or federal regulatory authority, has been subject to disciplinary action, including suspension, revocation, denial, corrective action, cease and desist order, or assessment of a civil penalty, administrative fine, fee, or similar assessment, by the board, department, or any local, state, or federal regulatory authority;(10) is found in a final order issued after a contested case hearing to be unfit or acting in a manner detrimental to the system of distribution or sale of motor vehicles in Texas, the economy of the state, the public interest, or the welfare of Texas residents.</content><note type="source"><p>Source Note: The provisions of this §215.89 adopted to be effective October 6, 2014, 39 TexReg 7960; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective October 31, 2020, 45 TexReg 7439; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scB/s215.91"><num value="215.91">§215.91</num><heading>License Processing for Military Service Members, Spouses, and Veterans.</heading><content>(a) The department will process a license, amendment, or renewal application submitted for licensing of a military service member, military spouse, or military veteran in accordance with Occupations Code, Chapter 55. A license holder who fails to timely file a sufficient renewal application because the license holder was on active duty is exempt from any increased fee or penalty imposed by the department.(b) A military service member or military spouse may engage in a business or occupation for which a department-issued license is required if the military service member or military spouse meets the requirements of Occupations Code, §55.0041 and this section.(1) A military service member or military spouse must submit to the department:(A) a sufficient application as described in §215.83(e) of this title (relating to License Applications, Amendments, or Renewals); (B) proof of the military service member being stationed in Texas and a copy of the military service member or military spouse's military identification card; (C) if the applicant is a military spouse, a copy of the military spouse's marriage license; and(D) a notarized affidavit as required by Occupations Code, § 55.0041(b)(3). (2) Upon receipt of the application and documentation required by paragraph (1) of this subsection the department shall:(A) confirm with the other state that the military service member or military spouse is currently licensed and in good standing for the relevant business or occupation; and(B) conduct a comparison of the other state's license requirements, statutes, and rules with the department's licensing requirements to determine if the requirements are similar in scope of practice; and(C) issue a provisional license.(3) If the department confirms that a military service member or military spouse is currently licensed in good standing in another state with licensing requirements that are similar in scope and practice, or was licensed in good standing in Texas in the last five years, the department shall issue a license to the military service member or military spouse for the relevant business or occupation, or notify the applicant why the department is currently unable to issue a license pursuant to Occupations Code, §55.0041(b-1), within 10 days. The license is subject to the requirements of this chapter and Occupations Code, Chapter 2301, and Transportation Code, Chapter 503, in the same manner as a license issued under the standard application process, unless exempted or modified under Occupations Code, Chapter 55.(c) This section establishes requirements and procedures authorized or required by Occupations Code, Chapter 55, and does not modify or alter rights that may be provided under federal law.</content><note type="source"><p>Source Note: The provisions of this §215.91 adopted to be effective October 9, 2025, 50 TexReg 6506.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c215/scC"><num value="C">SUBCHAPTER C</num><heading>FRANCHISED DEALERS, MANUFACTURERS, DISTRIBUTORS, AND CONVERTERS</heading><section identifier="/us/state/tx/tac/t43/p10/c215/scC/s215.101"><num value="215.101">§215.101</num><heading>Purpose and Scope</heading><content>This subchapter implements Occupations Code, Chapters 2301 and 2305, and Transportation Code, Chapters 503, 504, 520, and 1001 - 1005, and applies to franchised dealers, manufacturers, distributors, and converters.</content><note type="source"><p>Source Note: The provisions of this §215.101 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704; amended to be effective November 14, 2024, 49 TexReg 8953.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scC/s215.102"><num value="215.102">§215.102</num><heading>Application Requirements</heading><content>(a) No person may engage in business, serve in the capacity of, or act as a manufacturer, distributor, converter, or franchised dealer in Texas unless that person holds a license.(b) A license application must be on a form prescribed by the department and properly completed by the applicant. A license application must include all required information, supporting documents, and fees and must be submitted to the department electronically in the licensing system designated by the department.(c) A license holder renewing or amending its license must verify current license information, provide related information and documents for any new license requirements or changes to the license, and pay required fees including any outstanding civil penalties owed the department under a final order.(d) An applicant for a new license must register for an account in the department-designated licensing system by selecting the licensing system icon on the dealer page of the department website. An applicant must designate the account administrator and provide the name and email address for that person, and provide the business telephone number, name, business type, and social security number or employer identification number, as applicable. The applicant's licensing account administrator must be an owner, officer, manager, or bona fide employee.(e) Once registered, an applicant may apply for a new license and must provide the following:(1) Required information:(A) type of license requested;(B) business information, including the name, physical and mailing addresses, telephone number, Secretary of State file number (as applicable), and website address as applicable;(C) contact name, email address, and telephone number of the person submitting the application;(D) contact name, email address, and telephone number of a person who can provide information about business operations and the motor vehicle products or services offered;(E) the name, social security number, date of birth, identity document information, and ownership percentage for each owner, partner, member, beneficiary, or principal if the applicant is not a publicly traded company;(F) the name, social security number, date of birth, and identity document information for each officer, director, manager, trustee, or other representative authorized to act on behalf of the applicant if the applicant is owned in full or in part by a legal entity;(G) the name, employer identification number, ownership percentage, and non-profit or publicly traded status for each legal entity that owns the applicant in full or in part;(H) criminal history record information under the laws of Texas, another state in the United States, the United States, and any foreign jurisdiction for each person listed in the application, including offense description, date, and location;(I) military service status;(J) licensing history required to evaluate fitness for licensure under §215.89 of this title (relating to Fitness);(K) if applying for a manufacturer's, distributor's, or converter's license:(i) financial resources, business integrity and experience, facilities and personnel for serving franchised dealers;(ii) a description of the business model or business process and product and services used or offered sufficient to allow the department to determine if the license type applied for is appropriate under Texas law; and(iii) number of standard license plates requested.(L) if applying for a manufacturer's or distributor's license:(i) if the applicant or any entity controlled by the applicant owns an interest in a Texas motor vehicle dealer or dealership, controls a Texas dealer or dealership, or acts in the capacity of a Texas dealer;(ii) a statement regarding the manufacturer's compliance with Occupations Code Chapter 2301, Subchapter I and §§2301.451-2301.476; and(iii) if a franchise agreement for each line-make being applied for exists which states the obligations of a Texas franchised dealer to the applicant and the obligations of the applicant to the Texas franchised dealer.(M) if applying for a manufacturer's license, the line-make information including the world manufacturer identifier assigned by the National Highway Traffic Safety Administration, line-make name, and vehicle type;(N) if applying for a distributor's license:(i) the manufacturer for whom the distributor will act;(ii) whether the manufacturer is licensed in Texas;(iii) the person in this state who is responsible for compliance with the warranty covering the motor vehicles to be sold; and(iv) the terms of the contract under which the distributor will act for the manufacturer.(O) if applying for a converter's license:(i) a name and description for each conversion package; and(ii) the manufacturer or distributor and line-make of the underlying new motor vehicle chassis to be converted.(P) if applying for a franchised dealer's license:(i) reason for the new application;(ii) dealership location on a system-generated map;(iii) whether the dealership is under construction and expected completion date;(iv) information about the performance of sales or warranty services at the location; and(v) information necessary to obtain a franchised dealer GDN under §215.133 of this title (relating to GDN Application Requirements for a Dealer or a Wholesale Motor Vehicle Auction).(Q) signed Certificate of Responsibility, which is a form provided by the department; and(R) any other information required by the department to evaluate the application under current law and board rules.(2) A legible and accurate electronic image of each applicable required document:(A) the certificate of filing, certificate of incorporation, or certificate of registration on file with the Secretary of State, as applicable;(B) each assumed name certificate on file with the Secretary of State or county clerk;(C) one of the following unexpired identity documents for each natural person listed in the application:(i) driver license;(ii) Texas Identification Card issued by the Texas Department of Public Safety under Transportation Code, Chapter 521, Subchapter E;(iii) license to carry a handgun issued by the Texas Department of Public Safety under Government Code, Chapter 411, Subchapter H;(iv) passport; or(v) United States armed forces identification.(D) if applying for a manufacturer's, distributor's, or converter's license, a written description of the business model or business process and brochures, photos, or other documents describing products and services sufficient to allow the department to identify a motor vehicle product type and the appropriate license required under Texas law;(E) if applying for a manufacturer's or distributor's license:(i) a list of each franchised dealer in Texas including the dealer's name and physical address, or if motor vehicle sales or offers to sell to Texas residents will solely be over the internet, a list of each out-of-state dealer or person authorized by the manufacturer or distributor to sell a new motor vehicle online to a Texas resident including the dealer's or person's name, physical address, and license number issued by the state in which the dealer or person is located; and(ii) a list of motor vehicle product line-makes manufactured or distributed for sale.(F) if applying for a manufacturer's license:(i) a list of authorized distributors or representatives; and(ii) a franchised dealer's preparation and delivery obligations before delivery of a new vehicle to a retail purchaser and the schedule of compensation to be paid to the franchised dealer;(G) if applying for a distributor's license, either:(i) pages of the executed distributor agreement containing at minimum the following:(I) the legal business name of each party;(II) authorized signature of each party;(III) distribution territory;(IV) distribution agreement effective date and end date,or written confirmation from the distributor and manufacturer that the distribution agreement is expected to be in effect for the entire license period;(V) physical location, mailing address, and email address of each party;(VI) distributor responsibilities under the agreement related to warranty matters under Occupations Code, Chapter 2301, and franchised dealer matters under Occupations Code, Chapter 2301, Subchapter H, Dealers, Subchapter I, Warranties: Reimbursement of Dealer, Subchapter J, Manufacturers, Distributors, and Representative, and Subchapter K, Mediation Between Dealer and Manufacturer or Distributor;(VII) party or person responsible for providing warranty services; and(VIII) motor vehicle line-makes and vehicle types included in the agreement; or(ii) a completed department-provided questionnaire containing the information required in clause (i) signed by the applicant and the manufacturer as true and complete. An authorized representative for the manufacturer may sign the questionnaire, however, the applicant or applicant's representative may not sign the questionnaire on behalf of a manufacturer.(H) if applying for a franchised dealer's license, pages of the executed franchise agreement containing at minimum the following:(i) the legal business name of each party;(ii) authorized signature of each party;(iii) authorized dealership location;(iv) list of motor vehicle line-makes and vehicle types to be sold or serviced; and(v) a department Evidence of Relocation form signed by the manufacturer or distributor, if applicable; and(I) any other documents required by the department to evaluate the application under current law and board rules.(3) Required fees:(A) the license fee as prescribed by law; and(B) the fee as prescribed by law for each plate requested by the applicant.(f) An applicant operating under a name other than the applicant shall use the name under which the applicant is authorized to do business, as filed with the Secretary of State or county clerk, and the assumed name of such legal entity shall be recorded by the applicant on the application using the letters "DBA." The applicant may not use a name or assumed name that may be confused with or is similar to that of a governmental entity or that is otherwise deceptive or misleading to the public.(g) A manufacturer or distributor may add a new line-make to an existing license during the license period by submitting a license amendment application and providing brochures, photos, or other documents describing the new line-make sufficient to allow the department to identify the line-make and vehicle product type. A license amendment to add a line-make to a manufacturer's or distributor's license must be approved by the department before the new line-make may be added to a franchised dealer's license.</content><note type="source"><p>Source Note: The provisions of this §215.102 adopted to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scC/s215.103"><num value="215.103">§215.103</num><heading>Service-only Facility</heading><content>(a) A service-only facility is a location occupied and operated by a franchised dealer that is a completely separate, noncontiguous site, from the franchised dealer's new motor vehicle sales and service or sales only location, where the franchised dealer performs warranty repair services and not new motor vehicle sales.(b) A franchised dealer must obtain a license to operate a service-only facility. A dealer may not obtain a service-only facility license to service a line-make of new motor vehicles, unless that dealer is franchised and licensed to sell that line-make.(c) A service-only facility is a dealership subject to protest under Occupations Code, Chapter 2301.(d) Upon the manufacturer's or distributor's prior written approval, which cannot be unreasonably withheld, a franchised dealer of the manufacturer or distributor may contract with another person as a subcontractor to perform warranty repair services that the dealer is authorized to perform under a franchise agreement with a manufacturer or distributor. Payment shall be made by the franchised dealer to the subcontractor and not by the manufacturer or distributor to the subcontractor.(e) A person with whom a franchised dealer contracts to perform warranty repair services is not eligible to obtain a service-only facility license and may not advertise the performance of warranty repair services in any manner to the public.</content><note type="source"><p>Source Note: The provisions of this §215.103 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scC/s215.104"><num value="215.104">§215.104</num><heading>Changes to Franchised Dealer's License</heading><content>(a) In accordance with Occupations Code, §2301.356, a franchised dealer must file an application to amend the franchised dealer's license to request an additional line-make at the dealer's currently licensed showroom. The amendment application must be filed electronically in the licensing system designated by the department.(1) In accordance with §215.110 of this title (relating to Evidence of Franchise), the franchised dealer must attach to the amendment application a legible and accurate electronic image of:(A) the executed franchise agreement;(B) the required excerpt from the executed franchise agreement; or(C) an evidence of franchise form completed by the manufacturer, distributor, or representative.(2) The amendment application for an additional franchise at the showroom is considered an original application and is subject to protest, in accordance with Occupations Code, Chapter 2301, this chapter, and Chapter 224 of this title (relating to (relating to Adjudicative Practice and Procedure)).(b) A franchised dealer may propose to sell or assign to another any interest in the licensed entity, whether a corporation or otherwise, provided the physical location of the licensed entity remains the same.(1) The franchised dealer shall notify the department in writing within 10 days of the sale or assignment of interest by filing an application to amend the franchised dealer's license electronically in the licensing system designated by the department.(2) If the sale or assignment of any portion of the business results in a change of business entity, then the purchasing entity or assignee must apply for and obtain a new license in the name of the new business entity.(3) A publicly-held corporation must file an amendment application if one person or entity acquires 10% or greater interest in the licensed entity.(c) A franchised dealer must file an amendment application electronically in the licensing system designated by the department within 10 days of a license change, including:(1) deletion of a line-make from the dealer's license;(2) a change of assumed name on file with the Office of the Secretary of State or county clerk;(3) a change of mailing address;(4) a change of telephone number; or(5) a change of email address.(d) A franchised dealer must file a business entity amendment application electronically in the licensing system designated by the department within 10 days of an entity change, including:(1) a change in management, dealer principal, or change of other person who oversees a franchised dealer's business activities, including a managing partner, officer, director of a corporation, or similar person; or(2) a change of legal entity name on file with the Office of the Secretary of State.(e) If a franchised dealer changes or converts from one type of business entity to another type of business entity without changing ownership of the dealership, the submission of a franchise agreement in the name of the new entity is not required in conjunction with an amendment application. The franchise agreement on file with the department prior to the change or conversion of the dealer's business entity type applies to the successor entity until the parties agree to replace the franchise agreement. This subsection does not apply to a sole proprietorship or general partnership.(f) If a franchised dealer adopts a plan of conversion under a state or federal law that allows one legal entity to be converted into another legal entity, only an amendment application is necessary to be filed with the department. The franchise agreement on file with the department continues to apply to the converted entity. If a license holder becomes another legal entity by any means other than by conversion, a new application is required, subject to subsection (e) of this section.(g) In addition to obtaining permission from the manufacturer or distributor, a franchised dealer must obtain department approval prior to opening a supplemental location or relocating an existing location by filing an amendment application electronically in the licensing system designated by the department. A franchised dealer must notify the department electronically in the licensing system designated by the department when closing an existing location.</content><note type="source"><p>Source Note: The provisions of this §215.104 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scC/s215.105"><num value="215.105">§215.105</num><heading>Notification of License Application; Protest Requirements</heading><content>(a) The provisions of this section are not applicable to an application filed with the department for a franchised dealer's license as a result of the purchase or transfer of an existing entity holding a current franchised dealer's license that does not involve a physical relocation of the purchased or transferred line-makes.(b) Upon receipt of an application for a franchised dealer's license, including an application filed with the department by reason of the relocation of an existing dealership, the department shall give notice of the filing of the application to each franchised dealer that may have standing to protest the application. The department shall send notice electronically and by certified mail, return receipt requested, to the email address and mailing address in the franchised dealer's license record.(c) If it appears to the department that there are no franchised dealers with standing to protest, then no notice shall be given.(d) A person holding a franchised dealer's license for the sale of the same line-make of a new motor vehicle as proposed for sale in the subject application and that has standing to protest the application may file with the department a notice of protest opposing the granting of a license by timely filing a protest electronically in the licensing system designated by the department and paying the required fee.(e) A franchised dealer that wishes to protest the application shall give notice in accordance with Occupations Code, Chapter 2301.(1) The notice of protest must be in writing and shall be signed by an authorized officer or other official authorized to sign on behalf of the protesting dealer filing the notice.(2) The notice of protest must state the statutory basis upon which the protest is made and assert how the protesting dealer meets the standing requirements under §215.119 of this title (relating to Standing to Protest) to protest the application.(3) The notice of protest must state that the protest is not made for purposes of delay or for any other purpose except for justifiable cause.(4) If a protest is filed against an application for the establishment of a dealership or for addition of a line-make at an existing dealership, the notice of protest must state under which provision of Occupations Code, Chapter 2301 the protest is made.</content><note type="source"><p>Source Note: The provisions of this §215.105 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective January 6, 2013, 37 TexReg 10255; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scC/s215.106"><num value="215.106">§215.106</num><heading>Time for Filing Protest</heading><content>(a) A notice of protest must be:(1) received by the department not later than 5:00 p.m. Central Time (CST or CDT, as applicable) on the 15th day after the department issued the notice as evidenced by the date in the notice;(2) filed in the department's designated electronic filing system; and(3) submitted with the filing fee paid.(b) The department shall reject a notice of protest if:(1) the complete notice of protest is not filed within 15 days from the date of mailing of the department's notification to the license holder of the filing of the application; or(2) the required filing fee is not paid when the protest is submitted in the department's designated electronic filing system or is later dishonored.</content><note type="source"><p>Source Note: The provisions of this §215.106 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective August 2, 2012, 37 TexReg 5637; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scC/s215.108"><num value="215.108">§215.108</num><heading>Addition or Relocation of Line-make</heading><content>An application to amend an existing franchised dealer's license for the addition of another line-make at the existing dealership or for the relocation of a line-make to the existing dealership shall be deemed an "application to establish a dealership" insofar as the line-make to be added is concerned, and shall be subject to the provisions of §215.105 of this title (relating to Notification of License Application; Protest Requirements) and §215.106 of this title (relating to Time for Filing Protest).</content><note type="source"><p>Source Note: The provisions of this §215.108 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scC/s215.109"><num value="215.109">§215.109</num><heading>Replacement Dealership</heading><content>An application for a franchised dealer's license for a dealership intended as a replacement for a previously existing dealership shall be deemed an application for a "replacement dealership" required to be established in accordance with Occupations Code, §2301.453 and shall not be subject to protest under the provisions of §215.105 of this title (relating to Notification of License Application; Protest Requirements), provided that:(1) the application states that the applicant is intended as a replacement dealership and identifies the prior dealership to be replaced;(2) the manufacturer or distributor of the line-make gives notice to the department and to other dealers franchised for the same line-make that meet the provisions of Occupations Code, §2301.652(b) and (c);(3) the notice under paragraph (2) of this subsection is given within 60 days following the closing of the prior dealership;(4) the application is filed electronically in the licensing system designated by the department not later than one year following the closing of the prior dealership; and(5) the location of the applicant's proposed dealership is not more than two miles from the location of the prior dealership.</content><note type="source"><p>Source Note: The provisions of this §215.109 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 10, 2011, 36 TexReg 433; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scC/s215.110"><num value="215.110">§215.110</num><heading>Evidence of Franchise</heading><content>(a) Upon application for a franchised dealer's license or an amendment of an existing franchised dealer's license to add a line-make, the applicant must submit a legible and accurate electronic image of the franchise agreement pages that reflect:(1) the parties,(2) the authorized signatures of the parties,(3) each line-make listed in the application, and(4) the address of the franchised dealership's physical location.(b) To meet this requirement temporarily for the purpose of application processing, a form prescribed by the department and completed by the manufacturer or distributor may be electronically submitted with the application in lieu of the information described in this section.(c) The applicant must submit the required franchise agreement pages described in this section immediately upon the applicant's receipt of the franchise agreement as the department will not issue a license without verifying that the franchise agreement has been executed.(d) Upon application to relocate a franchised dealership, the franchised dealer applicant must submit a form prescribed by the department and completed by the manufacturer or distributor that identifies the license holder and the new franchised dealership location.</content><note type="source"><p>Source Note: The provisions of this §215.110 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scC/s215.111"><num value="215.111">§215.111</num><heading>Notice of Termination or Discontinuance of Franchise and Time for Filing Protest</heading><content>(a) A manufacturer or distributor shall give notice of termination or discontinuance of a dealer's franchise to a franchised dealer and the department in accordance with Occupations Code, §2301.453.(b) A dealer must file a written notice of protest of the franchise termination or discontinuance pursuant to Occupations Code, §2301.453 electronically in the licensing system designated by the department, prior to the effective date of the franchise termination or discontinuance stated in the notice from the manufacturer or distributor, which must not be less than 60 days after the franchised dealer receives the notice of termination or discontinuance.</content><note type="source"><p>Source Note: The provisions of this §215.111 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scC/s215.113"><num value="215.113">§215.113</num><heading>Manufacturer Ownership of Franchised Dealer; Good Cause Extension; Dealer Development</heading><content>(a) In the absence of a showing of good cause, an application for a franchised dealer's license of which a manufacturer or distributor owns any interest in or has control of the dealership entity must be submitted to the department electronically in the licensing system designated by the department no later than 30 days before:(1) the opening of the dealership;(2) close of the buy-sell agreement; or(3) the expiration of the current license.(b) If a manufacturer or distributor applies for a franchised dealer's license of which the manufacturer or distributor holds an ownership interest in or has control of the dealership entity in accordance with Occupations Code, §2301.476(d) - (f), the license application must contain a sworn statement from the manufacturer or distributor that the dealership was purchased from a franchised dealer and is for sale at a reasonable price and under reasonable terms and conditions, and that the manufacturer or distributor intends to sell the dealership to a person not controlled or owned by the manufacturer or distributor within 12 months of acquiring the dealership, except as provided by subsection (h) of this section.(c) A request for an extension of the initial 12-month period for manufacturer or distributor ownership or control of a franchised dealership, in accordance with Occupations Code, §2301.476(e), must be submitted to the department in accordance with subsection (a) of this section along with a sufficient application to renew the new motor vehicle dealer's license. The request must contain a detailed explanation, including appropriate documentary support, to show the manufacturer's or distributor's good cause for failure to sell the dealership within the initial 12-month period. The director shall evaluate the request and determine whether the license should be renewed for a period not to exceed 12 months or deny the renewal application. If the renewal application is denied, the manufacturer or distributor may request a hearing on the denial in accordance with Occupations Code, Chapter 2301, Subchapter O and the matter will be referred to SOAH for a hearing under Chapter 224, Subchapter C of this title (relating to Motor Vehicle, Salvage Vehicle, and Trailer Industry License Enforcement).(d) Requests for extensions after the first extension is granted, as provided by Occupations Code, §2301.476(e), must be submitted at least 120 days before the expiration of the current license electronically in the licensing system designated by the department. Upon receipt of a subsequent request, the department shall initiate a hearing in accordance with Occupations Code, Chapter 2301, Subchapter O, at which the manufacturer or distributor will be required to show good cause for the failure to sell the dealership. The manufacturer or distributor has the burden of proof and the burden of going forward on the sole issue of good cause for the failure to sell the dealership.(e) The department shall give notice of the hearing described in subsection (d) of this section to all other franchised dealers holding franchises for the sale and service or service only of the same line-make of new motor vehicles that are located in the same county in which the dealership owned or controlled by the manufacturer or distributor is located or in an area within 15 miles of the dealership owned or controlled by the manufacturer or distributor. Such dealers, if any, will be allowed to intervene and protest the granting of the subsequent extension. Notices of intervention by dealers afforded a right to protest under Occupations Code, §2301.476(e) must be filed with the department electronically in the licensing system designated by the department within 15 days of the date of mailing of the notice of hearing, and a copy must be provided to the manufacturer or distributor. The department shall reject a notice of intervention if the notice is not filed at least 30 days before:(1) the opening of the dealership;(2) close of the buy-sell agreement; or(3) the expiration of the current license.(f) A hearing under subsection (d) of this section will be referred to SOAH for a hearing under Chapter 224, Subchapter C of this title (relating to Contested Cases Between Motor Vehicle Industry License Holders or Applicants). The franchised dealer's license that is the subject of the hearing will continue in effect until a final decision on the request for a subsequent extension is issued by the board.(g) The procedures described in subsections (d) - (f) of this section will be followed for all extensions requested by the manufacturer or distributor after the initial extension.(h) An application for a new motor vehicle dealer's license of which a manufacturer or distributor owns any interest in the dealership entity in accordance with Occupations Code, §2301.476(g) must contain sufficient documentation to show that the applicant meets the requirements of Occupations Code, §2301.476(g).</content><note type="source"><p>Source Note: The provisions of this §215.113 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective August 2, 2012, 37 TexReg 5637; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scC/s215.114"><num value="215.114">§215.114</num><heading>Sale of a Vehicle by a Manufacturer or Distributor at a Wholesale Motor Vehicle Auction</heading><content>A manufacturer or distributor licensed under Occupations Code, Chapter 2301 or a wholly owned subsidiary of a manufacturer or distributor, may sell motor vehicles it owns to dealers through a licensed Texas wholesale motor vehicle auction. A GDN issued to a licensed manufacturer, distributor, or wholly owned subsidiary of a manufacturer or distributor shall be canceled, unless otherwise allowed under Occupations Code, Chapter 2301.</content><note type="source"><p>Source Note: The provisions of this §215.114 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scC/s215.115"><num value="215.115">§215.115</num><heading>Manufacturer, Distributor, and Converter Vehicle Sales Records</heading><content>(a) A manufacturer or distributor must maintain, for a minimum period of 48 months, a record of each vehicle sold to any person in this state. The manufacturer or distributor shall make the record available during business hours for inspection and copying by the department or be available to submit electronically to the department upon request.(b) A converter must maintain, for a minimum period of 48 months, a record of each vehicle converted for a person in this state, including a Texas franchised dealer. The converter shall make the record available during business hours for inspection and copying by the department or be available to submit electronically to the department upon request.(c) A manufacturer, distributor, or converter is required to maintain at its licensed location a record reflecting each purchase, sale, or conversion for a minimum period of 24 months. Records for prior time periods may be kept off-site.(d) Within 15 days of receipt of a request sent by mail or electronic document transfer from the department, a manufacturer, distributor, or converter must submit a copy of specified records to the address listed in the request.(e) Records required to be maintained and made available to the department must include the following:(1) the date of sale or conversion of the motor vehicle;(2) the VIN;(3) the name and address of the person purchasing the motor vehicle;(4) a copy of or a record with the information contained in the manufacturer's certificate of origin or title;(5) information regarding the prior status of the motor vehicle such as the Reacquired Vehicle Disclosure Statement;(6) the repair history of any motor vehicle subject to a warranty complaint;(7) technical service bulletin or equivalent advisory; and(8) any audit of a franchised dealership.(f) Any record required by the department may be maintained in an electronic format, if the electronic record can be printed at the licensed location upon request by the department or be available to submit electronically to the department upon request.</content><note type="source"><p>Source Note: The provisions of this §215.115 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scC/s215.116"><num value="215.116">§215.116</num><heading>Franchised Dealership Lease or Sublease Listing</heading><content>A franchised dealer that lists its dealership for lease or sublease to mitigate damages in accordance with Occupations Code, §2301.4651(e) is required to list:(1) the entire real property if the termination or discontinuance effectively terminates all line-makes and all franchises for the entire dealership; or(2) only that portion of the real property associated with the terminated line-make or franchise, if the termination or discontinuance does not affect all line-makes and all franchises of the dealership.</content><note type="source"><p>Source Note: The provisions of this §215.116 adopted to be effective January 6, 2013, 37 TexReg 10255; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scC/s215.117"><num value="215.117">§215.117</num><heading>Market Value Property Appraisal</heading><content>(a) An appraiser performing a market value property appraisal in accordance with Occupations Code, §2301.482(c) must be a Texas-certified real estate appraiser.(b) Necessary real estate and necessary construction are each determined by the applicable property use agreement.(c) The market value of property in accordance with Occupations Code, §2301.482(c), is the average of the market value property appraisals of the three certified real estate appraisers.</content><note type="source"><p>Source Note: The provisions of this §215.117 adopted to be effective January 6, 2013, 37 TexReg 10255; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scC/s215.118"><num value="215.118">§215.118</num><heading>Determination of Affected County for Dealership Relocation</heading><content>The most recent population data reported by the federal decennial census is used to identify an affected county defined by Occupations Code, §2301.6521.</content><note type="source"><p>Source Note: The provisions of this §215.118 adopted to be effective January 6, 2013, 37 TexReg 10255; amended to be effective February 13, 2017, 42 TexReg 571.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scC/s215.119"><num value="215.119">§215.119</num><heading>Standing to Protest</heading><content>(a) A protesting dealer has the burden to demonstrate standing to protest.(b) Standing requirements are established by the type of application.(1) Protest of an application to establish a dealership or to add a new line-make to an existing dealership requires the protesting dealer to meet standing requirements under Occupations Code, §2301.652;(2) Protest of an application to relocate a dealership requires the protesting dealer to meet standing requirements under Occupations Code, §2301.652;(3) Protest of an application to relocate a dealership within an affected county or from an affected county to an adjacent affected county requires the protesting dealer to meet standing requirements under Occupations Code, §2301.6521;(4) Protest of an application to relocate an economically impaired dealership requires the protesting dealer to meet standing requirements under Occupations Code, §2301.6522; and(5) Protest of an application filed by a manufacturer, distributor, or representative for an extension of time for ownership or control of a dealership requires the protesting dealer to meet standing requirements under Occupations Code, §2301.476.(c) A person has standing to protest an application to establish a dealership or to add a franchised line-make at an existing dealership if:(1) the person is a franchised dealer of the same line-make; and(2) the person's dealership is located either in the same county as, or within 15 miles of, the dealership for which the application was filed.(d) Except as provided in subsections (e) and (f) of this section, a person has standing to protest an application to relocate a dealership or to relocate a franchised line-make of an existing dealership if:(1) the person is a franchised dealer of the same line-make;(2) the person's dealership is located either in the same county as, or within 15 miles of, the dealership for which the application for relocation is filed;(3) the proposed relocation site is more than two miles from the location where the dealership is currently licensed; and(4) the proposed relocation site is nearer to the protesting franchised dealer than the location from which the relocating dealership is currently licensed.(e) An application may be filed under Occupations Code, §2301.6521 to relocate a dealership from a location in an affected county to a location that is either within the same affected county or in an adjacent affected county.(1) No dealer has standing to protest an application filed in accordance with this subsection if the proposed relocation site is two miles or less from the relocating dealer's existing licensed location.(2) No dealer has standing to protest an application filed in accordance with this subsection if the proposed relocation site is farther from the protesting dealer's licensed location than the relocating dealer's existing licensed location.(3) If a dealership of the same line-make as the relocating dealership is located within 15 miles of the proposed relocation site, then a person has standing to protest an application to relocate filed in accordance with this subsection, if:(A) the person is a franchised dealer of the same line-make;(B) the person's dealership is located within 15 miles of the proposed relocation site;(C) the proposed relocation site is more than two miles from the location where the dealership is currently licensed; and(D) the proposed relocation site is nearer to the protesting franchised dealer than the location from which the relocating dealership is currently licensed.(4) If no dealership of the same line-make as the relocating dealership is located within 15 miles of the proposed relocation site, then a person has standing to protest an application to relocate filed in accordance with this subsection, if:(A) the person is a franchised dealer of the same line-make;(B) no other dealership of the same line-make is located nearer to the proposed relocation site;(C) the person's dealership is located in the same affected county as the relocating dealership is proposed to be located;(D) the proposed relocation site is more than two miles from the location where the relocating dealership is currently licensed; and(E) the proposed relocation site is nearer to the protesting franchised dealer than the location from which the relocating dealership is currently licensed.(f) If an economically impaired dealer files an application under Occupations Code, §2301.6522 to relocate its dealership, then a dealer may have standing to protest the application if:(1) the dealer is franchised for a line-make that is the same as a line-make proposed to be relocated;(2) the proposed relocation site is more than two miles closer to the protesting dealer's dealership than the site of the economically impaired dealer's existing licensed location; and(3) there is no other dealer located nearer to the proposed relocation site that is franchised for a line-make that is proposed to be relocated.(g) A dealer has standing to protest an application for an extension of time that was filed by a manufacturer, distributor, or representative under Occupations Code, §2301.476 if:(1) the protesting dealer is franchised for a line-make being sold or serviced from the dealership owned or controlled by a manufacturer, distributor, or representative; and(2) the protesting dealer is located either in the same county as, or within 15 miles of, the dealership owned or controlled by the manufacturer, distributor, or representative.</content><note type="source"><p>Source Note: The provisions of this §215.119 adopted to be effective January 6, 2013, 37 TexReg 10255; amended to be effective March 11, 2014, 39 TexReg 1728; amended to be effective February 13, 2017, 42 TexReg 571.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scC/s215.120"><num value="215.120">§215.120</num><heading>Standard License Plates</heading><content>(a) A manufacturer, distributor, or converter may apply for a manufacturer or converter standard license plate for use on a new unregistered vehicle of the same vehicle type assembled or modified in accordance with Transportation Code §503.064 or §503.0618, as applicable:(1) when applying for a new or renewal license, or(2) by submitting a standard license plate request application electronically in the system designated by the department.(b) A manufacturer may use a manufacturer's standard license plate to test a prototype motor vehicle on a public street or highway including a commercial motor vehicle prototype designed to carry a load. A manufacturer's standard license plate may not be used on a commercial motor vehicle prototype or new commercial motor vehicle to carry a load for which the manufacturer or other person receives compensation.(c) A manufacturer, distributor, or converter shall attach a standard license plate to the rear of a vehicle in accordance with §217.27 of this title (relating to Vehicle Registration Insignia).(d) A manufacturer, distributor, or converter shall maintain a record of each standard license plate issued to the manufacturer, distributor, or converter by the department either in the license holder's recordkeeping system or in the department-designated system. The license plate record must contain:(1) the license plate number;(2) the year and make of the vehicle to which the license plate is affixed;(3) the VIN of the vehicle, if one has been assigned; and(4) the name of the person in control of the license plate.(e) If a manufacturer, distributor, or converter cannot account for a standard license plate or a standard license plate is damaged, the manufacturer, distributor, or converter shall:(1) document the license plate as "void" in the department-designated system; and(2) within three days of discovering that the license plate is missing or damaged, report the license plate as lost, stolen, or damaged electronically in the system designated by the department; and(3) if found after reported missing, cease use of the license plate.(f) A standard license plate is no longer valid for use after the manufacturer, distributor, or converter reports to the department that the license plate is lost, stolen, or damaged. A manufacturer, distributor, or converter must render a void license plate unusable by permanently marking the front of the plate with the word "VOID" or a large "X" and once marked, shall destroy or recycle the license plate, or return the license plate to the department within 10 days.(g) In evaluating requests for additional standard license plates from any eligible license holder, including a franchised or other GDN dealer, the department shall consider the business justification provided by a license holder including the following:(1) the number of vehicles assembled or modified;(2) the highest number of motor vehicles in inventory in the prior 12 months;(3) the size and type of business;(4) how the license holder typically uses standard licenses plates;(5) the license holder's record of tracking and reporting missing or damaged license plates to the department; and(6) any other factor the Department in its discretion deems necessary to support the number of license plates requested.(h) a license holder shall return a department-issued license plate to the department within 10 days of the license holder closing the associated license or the associated license being revoked, canceled, or closed by the department.</content><note type="source"><p>Source Note: The provisions of this §215.120 adopted to be effective June 1, 2024, 49 TexReg 2704; amended to be effective July 1, 2025, 49 TexReg 8953.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scC/s215.121"><num value="215.121">§215.121</num><heading>Sanctions</heading><content>(a) The board or department may take the following actions against a license applicant, a license holder, or a person engaged in business for which a license is required:(1) deny an application;(2) revoke a license;(3) suspend a license;(4) assess a civil penalty;(5) issue a cease and desist order; or(6) take other authorized action.(b) The board or department may take action described in subsection (a) of this section if a license applicant, a license holder, or a person engaged in business for which a license is required:(1) fails to maintain records required under this chapter;(2) refuses or fails within 15 days to comply with a request for records made by a representative of the department;(3) sells or offers to sell a motor vehicle to a retail purchaser other than through a licensed or authorized dealer;(4) fails to submit a license amendment application in the electronic licensing system designated by the department to notify the department of a change of the license holder's physical address, mailing address, telephone number, or email address within 10 days of the change;(5) fails to timely submit a license amendment application in the electronic licensing system designated by the department to notify the department of a license holder's business or assumed name change, deletion of a line-make, or management or ownership change;(6) fails to notify the department or pay or reimburse a franchised dealer as required by law;(7) misuses or fails to display a license plate as required by law, or fails to report a lost, stolen, or damaged license plate within the time designated by rule;(8) is a manufacturer or distributor and fails to provide a manufacturer's certificate for a new vehicle;(9) fails to remain regularly and actively engaged in the business of manufacturing, assembling, or modifying a new motor vehicle of the type and line make for which a license has been issued by the department;(10) violates a provision of Occupations Code, Chapter 2301; Transportation Code Chapters 501-503 or 1001-1005; a board order or rule; or a regulation of the department relating to the manufacture, assembly, sale, lease, distribution, financing, or insuring of vehicles, including advertising rules under Subchapter F of this chapter (relating to Advertising);(11) is convicted of an offense that directly relates to the duties or responsibilities of the occupation in accordance with §211.3 of this title (relating to Criminal Offense Guidelines);(12) is determined by the board or department, in accordance with §215.89 of this title (relating to Fitness), to be unfit to hold a license;(13) omits information or makes a material misrepresentation in any application or other documentation filed with the department including providing a false or forged identity document or a false or forged photograph, electronic image, or other document;(14) fails to remit payment as ordered for a civil penalty assessed by the board or department;(15) violates any state or federal law or regulation relating to the manufacture, distribution, modification, or sale of a motor vehicle;(16) fails to issue a refund as ordered by the board or department;(17) fails to participate in statutorily required mediation without good cause; or(18) fails to keep or maintain records required under Occupations Code, Chapter 2305, Subchapter D.</content><note type="source"><p>Source Note: The provisions of this §215.121 adopted to be effective June 1, 2024, 49 TexReg 2704; amended to be effective November 14, 2024, 49 TexReg 8953.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c215/scD"><num value="D">SUBCHAPTER D</num><heading>GENERAL DISTINGUISHING NUMBERS AND IN-TRANSIT LICENSES</heading><section identifier="/us/state/tx/tac/t43/p10/c215/scD/s215.131"><num value="215.131">§215.131</num><heading>Purpose and Scope</heading><content>This subchapter implements Transportation Code, Chapters 503, 504, 520, and 1001-1005, and Occupations Code, Chapters 2301 and 2305, and applies to general distinguishing numbers and drive-a-way operator in-transit licenses issued by the department.</content><note type="source"><p>Source Note: The provisions of this §215.131 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704; amended to be effective November 14, 2024, 49 TexReg 8953.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scD/s215.132"><num value="215.132">§215.132</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Barrier--A material object or set of objects that separates or demarcates.(2) Buyer's license plate--A general issue license plate or set of license plates issued by a dealer to a vehicle buyer under Transportation Code, §503.063 for a vehicle that will be titled and registered in Texas. This term also includes a buyer's provisional license plate that a dealer issues when the general issue license plate or set of license plates for that vehicle or motor vehicle type is not in a dealer's license plate inventory at the time of retail sale.(3) Buyer's temporary license plate--A temporary license plate issued by a dealer to a non-resident vehicle buyer for a vehicle that will be titled and registered out-of-state in accordance with Transportation Code, §503.063(i).(4) Consignment sale--The owner-authorized sale of a motor vehicle by a person other than the owner.(5) Dealer's temporary license plate--A license plate that a dealer may purchase and use for the purposes allowed under Transportation Code, §503.062.(6) House trailer--A nonmotorized vehicle designed for human habitation and for carrying persons and property on its own structure and for being drawn by a motor vehicle. A house trailer does not include manufactured housing. A towable recreational vehicle, as defined by Occupations Code, §2301.002, is included in the terms "house trailer" or "travel trailer."(7) Municipality--As defined according to the Local Government Code, Chapter 1.(8) Person--Has the meaning assigned by Occupations Code, §2301.002.(9) Sale--With regard to a specific vehicle, the transfer of possession of that vehicle to a purchaser for consideration.(10) Towable recreational vehicle--Has the same meaning as "house trailer" defined by this section.(11) Travel Trailer--Has the same meaning as "house trailer" defined by this section.(12) Vehicle--Has the meaning assigned by Transportation Code, §503.001.(13) VIN--Vehicle identification number.</content><note type="source"><p>Source Note: The provisions of this §215.132 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective August 2, 2012, 37 TexReg 5637; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704; amended to be effective July 1, 2025, 49 TexReg 8953.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scD/s215.133"><num value="215.133">§215.133</num><heading>GDN Application Requirements for a Dealer or a Wholesale Motor Vehicle Auction</heading><content>(a) No person may engage in business as a dealer or as a wholesale motor vehicle auction unless that person has a valid GDN assigned by the department for each location from which the person engages in business. A dealer must also hold a GDN for a consignment location, unless the consignment location is a wholesale motor vehicle auction.(b) Subsection (a) of this section does not apply to a person exempt from the requirement to obtain a GDN under Transportation Code §503.024.(c) A GDN dealer or wholesale motor vehicle auction application must be on a form prescribed by the department and properly completed by the applicant as required under §215.83 of this title (relating to License Applications, Amendments, or Renewals). A GDN dealer or wholesale motor vehicle auction application must include all required information, required supporting documents, and required fees and must be submitted to the department electronically in the licensing system designated by the department. A GDN dealer or wholesale motor vehicle auction GDN holder renewing or amending its GDN must verify current license information, provide related information and documents for any new requirements or changes to the GDN, and pay required fees including any outstanding civil penalties owed the department under a final order. An applicant for a new dealer or wholesale motor vehicle auction GDN must provide the following:(1) Required information:(A) type of GDN requested;(B) business information, including the name, physical and mailing addresses, telephone number, Secretary of State file number (as applicable), and website address, as applicable;(C) contact name, email address, and telephone number of the person submitting the application;(D) contact name, email address, and telephone number of a person who can provide information about business operations and the motor vehicle products or services offered;(E) the name, social security number, date of birth, identity document information, and ownership percentage for each owner, partner, member, or principal if the applicant is not a publicly traded company;(F) the name, social security number, date of birth, and identity document information for each officer, director, manager, trustee, or other representative authorized to act on behalf of the applicant if the applicant is owned in full or in part by a legal entity;(G) the name, employer identification number, ownership percentage, and non-profit or publicly traded status for each legal entity that owns the applicant in full or in part;(H) the name, social security number, date of birth, and identity document information of at least one manager or other bona fide employee who will be present at the established and permanent place of business if the owner is out of state or will not be present during business hours at the established and permanent place of business in Texas;(I) if a dealer, the name, telephone number, and business email address of the account administrator for the temporary tag database prior to July 1, 2025, or for the license plate system on or after July 1, 2025, designated by the applicant who must be an owner or representative listed in the application;(J) criminal history record information under the laws of Texas, another state in the United States, the United States, and any foreign jurisdiction for each person listed in the application, including offense description, date, and location;(K) military service status;(L) licensing history required to evaluate fitness for licensure under §215.89 of this title (relating to Fitness);(M) information about the business location and business premises, including whether the applicant will operate as a salvage vehicle dealer at the location;(N) history of insolvency, including outstanding or unpaid debts, judgments, or liens, unless the debt was discharged under 11 U.S.C. §§101 et seq. (Bankruptcy Act) or is pending resolution under a case filed under the Bankruptcy Act;(O) signed Certification of Responsibility, which is a form provided by the department; and(P) if a dealer, whether the applicant repairs a motor vehicle with a catalytic converter in Texas, and if so, the physical address where the repair is performed; and(Q) any other information required by the department to evaluate the application under current law and board rules.(2) A legible and accurate electronic image of each applicable required document:(A) proof of a surety bond if required under §215.137 of this title (relating to Surety Bond);(B) the certificate of filing, certificate of incorporation, or certificate of registration on file with the Secretary of State, as applicable;(C) each assumed name certificate on file with the Secretary of State or county clerk;(D) at least one of the following unexpired identity documents for each natural person listed in the application:(i) driver license;(ii) Texas Identification Card issued by the Texas Department of Public Safety under Transportation Code, Chapter 521, Subchapter E;(iii) license to carry a handgun issued by the Texas Department of Public Safety under Government Code, Chapter 411, Subchapter H;(iv) passport; or(v) United States military identification card.(E) a certificate of occupancy, certificate of compliance, or other official documentation confirming the business location complies with municipal ordinances, including zoning, occupancy, or other requirements for a vehicle business;(F) documents proving business premises ownership, or lease or sublease agreement for the license period;(G) business premises photos and a notarized affidavit certifying that all premises requirements in §215.140 of this title (relating to Established and Permanent Place of Business Premises Requirements) are met and will be maintained during the license period;(H) evidence of franchise if applying for a franchised motor vehicle dealer GDN;(I) proof of completion of the dealer education and training required under Transportation Code §503.0296, if applicable; and(J) any other documents required by the department to evaluate the application under current law and board rules.(3) Required fees:(A) the fee for each type of license requested as prescribed by law; and(B) the fee, including applicable taxes, for each dealer's standard plate, and dealer's temporary license plate on or after July 1, 2025, requested by the applicant as prescribed by law.(d) An applicant for a dealer or wholesale auction GDN must also comply with fingerprint requirements in §211.6 of this title (relating to Fingerprint Requirements for Designated License Types), as applicable.(e) An applicant for a GDN operating under a name other than the applicant's business name shall use the assumed name under which the applicant is authorized to do business, as filed with the Secretary of State or county clerk, and the assumed name of such legal entity shall be recorded by the applicant on the application using the letters "DBA." The applicant may not use a name or assumed name that may be confused with or is similar to that of a governmental entity or that is otherwise deceptive or misleading to the public.(f) A wholesale motor vehicle dealer GDN holder may sell or exchange vehicles with licensed or authorized dealers only. A wholesale motor vehicle dealer GDN holder may not sell or exchange vehicles at retail.(g) An independent mobility motor vehicle dealer shall retain and produce for inspection all records relating to the license requirements under Occupations Code, §2301.002(17-b) and all information and records required under Transportation Code §503.0295. (h) In evaluating a new or renewal GDN application or an application for a new GDN location, the department may require a site visit to determine if the business location meets the requirements in §215.140. The department will require the applicant or GDN holder to provide a notarized affidavit confirming that all premises requirements are met and will be maintained during the license period.(i) A person holding an independent motor vehicle dealer GDN does not have to hold a salvage vehicle dealer's license to:(1) act as a salvage vehicle dealer or rebuilder; or(2) store or display a motor vehicle as an agent or escrow agent of an insurance company.(j) A person holding an independent motor vehicle dealer GDN and performing salvage activities under subsection (i) must apply for a National Motor Vehicle Title Information System (NMVTIS) identification number and provide the number to the department in the GDN application.(k) To be eligible for an independent motor vehicle dealer GDN, a person must complete dealer education and training specified by the department, except as provided in this subsection:(1) once a person has completed the required dealer education and training, the person will not have to retake the dealer education and training for subsequent GDN renewals, but may be required to provide proof of dealer education and training completion as part of the GDN renewal process;(2) a person holding an independent motor vehicle dealer GDN for at least 10 years as of September 1, 2019, is exempt from the dealer education and training requirement; and.(3) a military service member, military spouse, or military veteran will receive appropriate credit for prior training, education, and professional experience and may be exempted from the dealer education and training requirement.</content><note type="source"><p>Source Note: The provisions of this §215.133 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective August 2, 2012, 37 TexReg 5637; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective March 1, 2020, 45 TexReg 1225; amended to be effective January 1, 2023, 47 TexReg 8745; amended to be effective June 1, 2024, 49 TexReg 2704; amended to be effective December 1, 2024, 49 TexReg 8953; amended to be effective October 9, 2025, 50 TexReg 6506.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scD/s215.134"><num value="215.134">§215.134</num><heading>Requirements for a Drive-a-way Operator In-Transit License</heading><content>(a) No drive-a-way operator may engage in business in Texas unless that person has a currently valid drive-a-way operator in-transit license issued by the department.(b) A drive-a-way operator in-transit application must be on a form prescribed by the department and properly completed by the applicant as required under §215.83 of this title (relating to License Applications, Amendments, or Renewals). A drive-a-way operator in-transit application must include all required information, required supporting documents, and required fees, and must be submitted to the department electronically in the licensing system designated by the department.(c) A drive-a-way operator in-transit license holder renewing or amending its license must verify current license information, provide related information and documents for any new requirements or changes to the license, and pay required fees.(d) An applicant for a new license must register for an account in the department-designated licensing system by selecting the licensing system icon on the dealer page of the department website. An applicant must designate the account administrator and provide the name and email address for that person, and provide the business telephone number, name, business type, and social security number or employer identification number, as applicable. The applicant's licensing account administrator must be an owner, officer, manager, or bona fide employee.(e) Once registered, an applicant may apply for a new license and must provide the following:(1) Required information:(A) type of license requested;(B) business information, including the name, physical and mailing addresses, telephone number, Secretary of State file number (as applicable), and website address, as applicable;(C) contact name, email address, and telephone number of the person submitting the application;(D) contact name, email address, and telephone number of a person who can provide information about business operations and the motor vehicle services offered;(E) the name, social security number, date of birth, identity document information, and ownership percentage for each owner, partner, member, beneficiary, or principal if the applicant is not a publicly traded company;(F) the name, social security number, date of birth, and identity document information for each officer, director, manager, trustee, or other representative authorized to act on behalf of the applicant if the applicant is owned in full or in part by a legal entity;(G) the name, employer identification number, ownership percentage, and non-profit or publicly traded status for each legal entity that owns the applicant in full or in part;(H) criminal history record information under the laws of Texas, another state in the United States, the United States, and any foreign jurisdiction for each person listed in the application, including offense description, date, and location;(I) military service status;(J) licensing history required to evaluate fitness for licensure under §215.89 of this title (relating to Fitness);(K) signed Certification of Responsibility, which is a form provided by the department; and(L) any other information required by the department to evaluate the application under current law and board rules.(2) A legible and accurate electronic image of each applicable required document:(A) the certificate of filing, certificate of incorporation, or certificate of registration on file with the Secretary of State, as applicable;(B) each assumed name certificate on file with the Secretary of State or county clerk;(C) one of the following unexpired identity documents for each natural person listed in the application:(i) driver license;(ii) Texas Identification Card issued by the Texas Department of Public Safety under Transportation Code, Chapter 521, Subchapter E;(iii) license to carry a handgun issued by the Texas Department of Public Safety under Government Code, Chapter 411, Subchapter H;(iv) passport; or(v) United States military identification card;(D) a list of manufacturers, distributors, dealers, or auctions for which the applicant provides drive-a-way services;(E) a description of the business model or business process, transportation methods, compensation agreements, products, and services used or offered sufficient to allow department to determine if the license type applied for is appropriate under Texas law; and(F) any other documents required by the department to evaluate the application under current law and board rules.(3) Required fees:(A) the license fee as prescribed by law; and(B) the fee, including any taxes, for each drive-a-way in-transit standard license plate requested by the applicant as prescribed by law.(f) An applicant for a drive-a-way operator in-transit license must also comply with fingerprint requirements in §211.6 of this title (relating to Fingerprint Requirements for Designated License Types).(g) An applicant operating under a name other than the applicant's business name shall use the name under which the applicant is authorized to do business, as filed with the Secretary of State or county clerk, and the assumed name of such legal entity shall be recorded by the applicant on the application using the letters "DBA." The applicant may not use a name or assumed name that may be confused with or is similar to that of a governmental entity or that is otherwise deceptive or misleading to the public.</content><note type="source"><p>Source Note: The provisions of this §215.134 adopted to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scD/s215.135"><num value="215.135">§215.135</num><heading>More than One Location</heading><content>(a) A dealer that holds a GDN for a particular type of vehicle may operate from more than one location within the limits of a municipality, provided each location is operated by the same legal entity and meets the requirements of §215.140 of this title (relating to Established and Permanent Place of Business Premises Requirements).(b) Additional locations not located within the limits of the same municipality of the initial dealership must:(1) obtain a new GDN; and(2) provide a new surety bond reflecting the additional location unless the licensed location is exempt by statute from the surety requirement.(c) A dealer that relocates from a point outside the limits of a municipality or relocates to a point not within the limits of the same municipality of the initial location must:(1) obtain a new GDN; and(2) provide a new surety bond reflecting the new address unless the licensed location is exempt by statute from the surety requirement.(d) A dealer shall notify the department in writing within 10 days of opening, closing, or relocating a licensed location by filing an amendment application electronically in the licensing system designated by the department. Each location must meet and maintain the requirements of §215.140.(e) A dealer may not commence business at any location until the department issues a license specific to that location.</content><note type="source"><p>Source Note: The provisions of this §215.135 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scD/s215.137"><num value="215.137">§215.137</num><heading>Surety Bond</heading><content>(a) The surety bond required by Transportation Code, §503.033 shall be in the legal business name in which the dealer's GDN will be issued and shall contain the complete physical address of each location licensed under the GDN that the surety bond is intended to cover.(b) A surety bond executed by an agent representing a bonding company or surety must be supported by an original power of attorney from the bonding company or surety.(c) The identity of the obligee on a surety bond or a rider to a surety bond must be approved by the department. An obligee may be identified as:(1) a person who obtains a court judgment assessing damages and attorney's fees for an act or omission on which the bond is conditioned; or(2) unknown.(d) A bonding company that pays any claim against a surety bond shall immediately report the payment to the department.(e) A bonding company shall give written notice to the department 30 days prior to canceling any surety bond.(f) The surety bond required by this section does not apply to a:(1) franchised motor vehicle dealer licensed by the department;(2) franchised motorcycle dealer licensed by the department;(3) franchised house trailer or travel trailer dealer licensed by the department; or(4) trailer or semitrailer dealer licensed by the department.</content><note type="source"><p>Source Note: The provisions of this §215.137 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scD/s215.138"><num value="215.138">§215.138</num><heading>Use of Dealer's License Plates</heading><content>(a) A dealer's standard, personalized prestige, or temporary license plate must be attached to the rear of a vehicle in accordance with §217.27 of this title (relating to Vehicle Registration Insignia).(b) A copy of the receipt for a dealer's standard, personalized prestige, or temporary license plate issued by the department should be carried in the vehicle to present to law enforcement personnel upon request.(c) A dealer's standard, personalized prestige, or temporary license plate may not be displayed on:(1) a laden commercial vehicle being operated or moved on the public streets or highways;(2) the dealer's service or work vehicle, except as provided by Transportation Code, §503.068(b-1);(3) a golf cart as defined under Transportation Code Chapter 551; or(4) an off-highway vehicle as defined under Transportation Code Chapter 551A.(d) For purposes of this section, a dealer's service or work vehicle includes:(1) a vehicle used for towing or transporting another vehicle;(2) a vehicle, including a light truck, used in connection with the operation of the dealer's shops or parts department;(3) a courtesy car on which a courtesy car sign is displayed;(4) a rental or lease vehicle; and(5) a boat trailer owned by a dealer or manufacturer that is used to transport more than one boat.(e) For purposes of this section, a light truck as defined by Transportation Code, §541.201, is not considered a laden commercial vehicle when it is:(1) mounted with a camper unit; or(2) towing a trailer for recreational purposes.(f) A dealer's standard, personalized prestige, or temporary license plate may be displayed only on the type of vehicle for which the GDN is issued and for which a dealer is licensed to sell. A nonfranchised dealer may not display a dealer's standard or personalized prestige license plate on a new motor vehicle.(g) A dealer's standard or personalized prestige license plate may be displayed only on a vehicle that has a valid inspection in accordance with Transportation Code, Chapter 548.(h) A dealer shall maintain in an electronic license plate system designated by the department a record of each dealer's standard, personalized prestige, or temporary license plate issued by the department to that dealer. The license plate record must contain:(1) the license plate number;(2) the year and make of the vehicle to which the dealer's license plate is affixed;(3) the VIN of the vehicle; and(4) the name of the person in control of the vehicle or license plate.(i) If a dealer cannot account for a dealer's standard or personalized prestige license plate that the department issued to that dealer, the dealer shall:(1) within three days of discovering that the dealer's license plate is missing or damaged, report the dealer's license plate as lost, stolen, or damaged in the electronic system designated by the department; and(2) if found, cease use of the dealer's license plate.(j) A dealer's standard, personalized prestige, or temporary license plate is no longer valid for use after the dealer reports to the department that the dealer's license plate is lost, stolen, or damaged. A dealer shall:(1) render a void plate unusable by permanently marking the front of the plate with the word "VOID" or a large "X"; and(2) destroy or recycle the license plate or return the license plate to the department within 10 days.(k) A dealer shall return a department-issued license plate, sticker, or receipt to the department within 10 days of the dealer closing the associated license or the department revoking or canceling the license.(l) A wholesale motor vehicle auction GDN holder that also holds a dealer GDN may display a dealer's temporary license plate assigned to that dealer GDN on a vehicle that is being transported to or from the licensed auction location.(m) The recordkeeping requirements in §215.138(h) do not apply when a vehicle is being operated solely for the purpose of demonstration.</content><note type="source"><p>Source Note: The provisions of this §215.138 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 6, 2014, 39 TexReg 501; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704; amended to be effective July 1, 2025, 49 TexReg 8953.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scD/s215.139"><num value="215.139">§215.139</num><heading>Dealer's Standard License Plate Allocation</heading><content>(a) The number of dealer's standard license plates a dealer may order for business use is based on the type of license for which the dealer applied and the number of vehicles the dealer sold during the previous year.(b) A new license applicant is allotted a predetermined number of dealer's standard license plates for the duration of the dealer's first license term.(c) Unless otherwise qualified under this section, the maximum number of dealer's standard license plates the department will issue to a new license applicant during the applicant's first license term is indicated in the following table.Attached Graphic(d) A dealer applying for a license is not subject to the initial allotment limits described in this section and may rely on that dealer's existing allocation of dealer's standard license plates if that dealer is:(1) a franchised dealership subject to a buy-sell agreement, regardless of a change in the entity or ownership;(2) any type of dealer that is relocating and has been licensed by the department for a period of one year or longer; or(3) any type of dealer that is changing its business entity type and has been licensed by the department for a period of one year or longer.(e) The maximum number of dealer's standard license plates the department will issue to a vehicle dealer per license term is indicated in the following table.Attached Graphic(f) A dealer may obtain more than the maximum number of dealer's standard license plates provided by this section by submitting to the department proof of sales for the previous 12-month period that justifies additional allocation.(1) The number of additional dealer's standard license plates the department will issue to a dealer that demonstrates a need through proof of sales is indicated in the following table.Attached Graphic(2) For purposes of this section, proof of sales for the previous 12-month period may consist of a copy of the most recent vehicle inventory tax declaration or monthly statements filed with the taxing authority in the county of the dealer's licensed location. Each copy must be stamped as received by the taxing authority. The department will consider a franchised dealer's license renewal application that indicates sales of more than 200 units to be proof of sales of more than 200 units and no additional proof is required.(3) The department may not issue more than two dealer's standard license plates to a wholesale motor vehicle dealer. For purposes of this section, a wholesale motor vehicle dealer's proof of sales may be demonstrated to the department by submitting:(A) evidence of the wholesale motor vehicle dealer's sales for the previous 12-month period, if the wholesale motor vehicle dealer has been licensed during those 12 months; or(B) other documentation approved by the department demonstrating the wholesale motor vehicle dealer's transactions.(g) The director may waive the dealer's standard license plate issuance restrictions if the waiver is essential for the continuation of the business. The director will determine the number of dealer's standard license plates the department will issue based on the dealer's past sales, dealer's inventory, and any other factor the director determines pertinent.(1) A request for a waiver must be submitted to the director in writing and specifically state why the additional plate is necessary for the continuation of the applicant's business.(2) A request for a waiver must be accompanied by proof of the dealer's sales for the previous 12-month period, if applicable.(3) A wholesale motor vehicle dealer may not apply for a waiver of the dealer's standard license plate issuance restrictions. (4) A waiver granted by the director under this section for a specific number of dealer's standard license plates is valid for four years.</content><note type="source"><p>Source Note: The provisions of this §215.139 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scD/s215.140"><num value="215.140">§215.140</num><heading>Established and Permanent Place of Business Premises Requirements</heading><content>(a) A dealer must meet the following requirements at each licensed location and maintain the requirements during the term of the license. If multiple dealers are licensed at a location, each dealer must maintain the following requirements during the entire term of the license.(1) Business hours for retail dealers.(A) A retail dealer's office must be open at least four days per week for at least four consecutive hours per day and may not be open solely by appointment.(B) The retail dealer's business hours for each day of the week must be posted at the main entrance of the retail dealer's office in a manner and location that is accessible to the public. The owner or a bona fide employee of the retail dealer shall be at the retail dealer's licensed location during the posted business hours for the purposes of buying, selling, exchanging, or leasing vehicles. If the owner or a bona fide employee is not available to conduct business during the retail dealer's posted business hours due to special circumstances or emergencies, a separate sign must be posted indicating the date and time the retail dealer will resume operations. Regardless of the retail dealer's business hours, the retail dealer's telephone must be answered from 8:00 a.m. to 5:00 p.m. weekdays by a bona fide employee, owner, answering service, voicemail service, or answering machine. A caller must be able to speak to a natural person or leave a message during these hours.(2) Business hours for wholesale motor vehicle dealers. A dealer that holds only a wholesale motor vehicle dealer's GDN must post its business hours at the main entrance of the wholesale motor vehicle dealer's office in a manner and location that is accessible to the public. A wholesale motor vehicle dealer or bona fide employee shall be at the wholesale motor vehicle dealer's licensed location at least two weekdays per week for at least two consecutive hours per day. A wholesale motor vehicle dealer may not be open solely by appointment. Regardless of the wholesale motor vehicle dealer's business hours, the wholesale motor vehicle dealer's telephone must be answered from 8:00 a.m. to 5:00 p.m. weekdays by a bona fide employee, owner, answering service, voicemail service, or answering machine. A caller must be able to speak to a natural person or leave a message during these hours.(3) Business sign requirements for retail dealers.(A) A retail dealer must display a conspicuous, permanent sign with letters at least six inches in height showing the retail dealer's business name or assumed name substantially similar to the name reflected on the retail dealer's GDN under which the retail dealer conducts business. A business sign is considered conspicuous if it is easily visible to the public within 100 feet of the main entrance of the business office. A business sign is considered permanent only if it is made of durable, weather-resistant material.(B) The sign must be permanently mounted at the physical address listed on the application for the retail dealer's GDN. A business sign is considered permanently mounted if bolted to an exterior building wall or bolted or welded to a dedicated sign pole or sign support permanently installed in the ground.(C) A retail dealer may use a temporary sign or banner if that retail dealer can show proof that a sign that meets the requirements of this paragraph has been ordered and provides a written statement that the sign will be promptly and permanently mounted upon delivery.(D) A retail dealer is responsible for ensuring that the business sign complies with municipal ordinances, and that any lease signage requirements are consistent with the signage requirements in this paragraph.(4) Business sign requirements for wholesale motor vehicle dealers.(A) Exterior Sign(i) A wholesale motor vehicle dealer must display a conspicuous, permanent sign with letters at least six inches in height showing the wholesale motor vehicle dealer's business name or assumed name substantially similar to the name reflected on the wholesale motor vehicle dealer's GDN under which the wholesale motor vehicle dealer conducts business. Effective September 1, 2023, the sign must also include the statement that "Purchasers must be Licensed Dealers" in letters at least three inches in height. A business sign is considered conspicuous if it is easily visible to the public within 100 feet of the main entrance of the business office. A business sign is considered permanent only if it is made of durable, weather-resistant material.(ii) The sign must be permanently mounted on the business property at the physical address listed on the application. A business sign is considered permanently mounted if bolted to an exterior building wall or bolted or welded to a dedicated sign pole or sign support permanently installed in the ground. A wholesale motor vehicle dealer may use a temporary exterior sign or banner if the wholesale motor vehicle dealer can show proof that a sign that meets the requirements of this paragraph has been ordered and provides a written statement that the sign will be promptly and permanently mounted upon delivery.(B) Interior Sign(i) If the wholesale motor vehicle dealer's office is located in an office building with one or more other businesses and an outside sign is not permitted by the property owner, a conspicuous permanent business sign permanently mounted on or beside the main door to the wholesale motor vehicle dealer's office with letters at least two inches in height is acceptable. Effective September 1, 2023, the sign must also include the statement that "Purchasers must be Licensed Dealers" in letters at least one inch in height.(ii) An interior business sign is considered conspicuous if it is easily visible to the public within 10 feet of the main entrance of the wholesale motor vehicle dealer's office. An interior sign is considered permanent if made from durable material and has lettering that cannot be changed. An interior sign is considered permanently mounted if bolted or otherwise permanently affixed to the main door or nearby wall. A wholesale motor vehicle dealer may use a temporary interior sign or banner if the wholesale motor vehicle dealer can show proof that a sign that meets the requirements of this paragraph has been ordered and provides a written statement that the sign will be promptly and permanently mounted upon delivery.(C) A wholesale motor vehicle dealer is responsible for ensuring that the business sign complies with municipal ordinances and that any lease signage requirements are consistent with the signage requirements in this paragraph.(5) Office requirements for a retail dealer and a wholesale motor vehicle dealer.(A) A dealer's office must be located in a building with a permanent roof and connecting exterior walls on all sides.(B) A dealer's office must comply with all applicable municipal ordinances, including municipal zoning ordinances. The dealer is responsible for obtaining a certificate of occupancy, certificate of compliance, or other required document issued by a municipal government to show compliance, including a new certificate or document when the building is altered or remodeled, or when the building use changes.(C) A dealer's office may not be located in a residence, apartment, hotel, motel, rooming house, or any room or building not open to the public.(D) A dealer's office may not be located in a restaurant, gas station, or convenience store, unless the office has a separate entrance door that does not require a dealer's customer to pass through the other business.(E) A dealer's office may not be virtual or provided by a subscription for office space or office services. Access to an office space or office services is not considered an established and permanent location.(F) The physical address of the dealer's office must be in Texas and recognized by the U.S. Postal Service, be capable of receiving U.S. mail, and have an assigned emergency services property address. The department will not mail a dealer's or buyer's license plate to an out-of-state address and will only mail or deliver a license plate to a dealer's physical location.(G) A portable-type office building may qualify as an office only if the building meets the requirements of this section and is not a readily moveable trailer or other vehicle.(H) The dealer's office space must:(i) include at least 100 square feet of interior floor space, exclusive of hallways, closets, or restrooms;(ii) have a minimum seven-foot-high ceiling;(iii) accommodate required office equipment; and(iv) allow a dealer and customer to safely access the office and conduct business in private while seated.(6) Required office equipment for a retail dealer and a wholesale motor vehicle dealer. At a minimum, a dealer's office must be equipped with:(A) a desk;(B) two chairs;(C) internet access;(D) a working telephone number listed in the business name or assumed name under which the dealer conducts business; and(E) a locked and secured room or closet or at least one securely locked, substantially constructed safe or steel cabinet bolted or affixed to the floor or wall in such a way that the safe or steel cabinet cannot be readily removed and of sufficient size to store all dealer's and buyer's license plates in a dealer's possession including unissued and unassigned buyer's license plates.(7) Number of retail dealers in one building. Not more than four retail dealers may be located in the same building. Each retail dealer located in the same building must meet the requirements of this section.(8) Number of wholesale motor vehicle dealers in one office building. Not more than eight wholesale motor vehicle dealers may be located in the same office building. Each wholesale motor vehicle dealer located in the same office building must meet the requirements of this section.(9) Office sharing prohibition for retail dealers and wholesale motor vehicle dealers. Unless otherwise authorized by the Transportation Code, a retail dealer and a wholesale motor vehicle dealer licensed after September 1, 1999, may not be located in the same building.(10) Dealer housed with other business.(A) If a person conducts business as a dealer in conjunction with another business owned by the same person and under the same name as the other business, the same telephone number may be used for both businesses. If the name of the dealer differs from the name of the other business, a separate telephone listing and a separate sign for each business are required.(B) A person may conduct business as a dealer in conjunction with another business not owned by that person only if the dealer owns the property on which business is conducted or has a separate lease agreement from the owner of that property that meets the requirements of this section. The same telephone number may not be used by both businesses. The dealer must have separate business signs, telephone listings, and office equipment required under this section.(C) A dealer's office must have permanent interior walls on all sides and be separate from any public area used by another business.(11) Display area and storage lot requirements.(A) A wholesale motor vehicle dealer is not required to have display space at the wholesale motor vehicle dealer's business premises.(B) A retail dealer must have an area designated as display space for the retail dealer's inventory. A retail dealer's designated display area must comply with the following requirements.(i) The display area must be located at the retail dealer's physical business address or contiguous to the retail dealer's physical address. The display area may not be in a storage lot.(ii) The display area must be of sufficient size to display at least five vehicles of the type for which the GDN is issued. The display area must be reserved exclusively for the retail dealer's inventory and may not be used for customer parking, employee parking, general storage, or shared or intermingled with another business or a public parking area, a driveway to the office, or another dealer's display area.(iii) The display area may not be on a public easement, right-of-way, or driveway unless the governing body having jurisdiction of the easement, right-of-way, or driveway expressly consents in writing to use as a display area. If the easement, right-of-way, or driveway is a part of the state highway system, use as a display area may only be authorized by a lease agreement.(iv) If a retail dealer shares a display or parking area with another business, including another dealer, the dealer's vehicle inventory must be separated from the other business's display or parking area by a material object or barrier that cannot be readily removed. A barrier that cannot be readily removed is one that cannot be easily moved by one person and typically weighs more than 50 pounds. A material object or barrier must be in place on all sides except for the space necessary to allow for entry and exit of vehicle inventory.(v) If a dealer's business location includes gasoline pumps or a charging station or includes another business that sells gasoline or has a charging station, the dealer's display area may not be part of the parking area for fuel or charging station customers and may not interfere with access to or from the gasoline pumps, fuel tanks, charging station, or fire prevention equipment.(vi) The display area must be adequately illuminated if the retail dealer is open at night so that a vehicle for sale can be properly inspected by a potential buyer.(vii) The display area may be located inside a building; however, if multiple dealers are displaying vehicles inside a building, each dealer's display area must be separated by a material object or barrier that cannot be readily removed. A barrier that cannot be readily removed is one that cannot be easily moved by one person and typically weighs more than 50 pounds. A material object or barrier must be in place on all sides except for the space necessary to allow for entry and exit of vehicle inventory. (C) A GDN holder may maintain a storage lot only if the storage lot is not accessible to the public and no sales activity occurs at the storage lot. A sign stating the license holder's name, contact information, and the fact the property is a storage lot is permissible. A storage lot must be fenced or in an access-controlled location to be considered not accessible to the public. A GDN holder or applicant must disclose the address of a storage lot or the location of a vehicle in inventory upon request by the department. (12) Dealers authorized to sell salvage motor vehicles. If an independent motor vehicle dealer offers a salvage motor vehicle for sale on the dealer's premises, the vehicle must be clearly and conspicuously marked with a sign informing a potential buyer that the vehicle is a salvage motor vehicle. (13) Lease requirements. If the premises from which a dealer conducts business, including any display area, is not owned by the dealer, the dealer must maintain a lease that is continuous during the period of time for which the dealer's license will be issued. The lease agreement must be on a properly executed form containing at a minimum:(A) the name of the property owner as the lessor of the premises and the name of the dealer as the tenant or lessee of the premises;(B) the period of time for which the lease is valid;(C) the street address or legal description of the property, provided that if only a legal description of the property is included, a dealer must attach a statement verifying that the property description in the lease agreement is the physical street address identified on the application as the physical address for the established and permanent place of business;(D) the signature of the property owner as the lessor and the signature of the dealer as the tenant or lessee; and(E) if the lease agreement is a sublease in which the property owner is not the lessor, the dealer must also obtain a signed and notarized statement from the property owner including the following information:(i) property owner's full name, email address, mailing address, and phone number; and(ii) property owner's statement confirming that the dealer is authorized to sublease the location and may operate a vehicle sales business from the location.(14) Dealer must display GDN and bond notice. A dealer must display the dealer's GDN issued by the department at all times in a manner that makes the GDN easily readable by the public and in a conspicuous place at each place of business for which the dealer's GDN is issued. A dealer required to obtain a surety bond must post a bond notice adjacent to and in the same manner as the dealer's GDN is displayed. The notice must include the bond company name, bond identification number, and procedure by which a claimant can recover under the bond. The notice must also include the department's website address and notify a consumer that a dealer's surety bond information may be obtained by submitting a request to the department. If the dealer's GDN applies to more than one location, a copy of the GDN and bond notice must be displayed in each supplemental location.(b) Wholesale motor vehicle auction premises requirements. A wholesale motor vehicle auction must comply with the following premises requirements:(1) a wholesale motor vehicle auction GDN holder must hold a motor vehicle auction on a regular periodic basis at the licensed location, and an owner or bona fide employee must be available at the business location during each auction and during posted business hours. If the owner or a bona fide employee is not available to conduct business during the posted business hours due to special circumstances or emergencies, a separate sign must be posted indicating the date and time operations will resume.(2) the business telephone must be answered from 8:00 a.m. to 5:00 p.m. weekdays by a bona fide employee, owner, answering service, voicemail service, or answering machine. A caller must be able to speak to a natural person or leave a message during these hours. (3) a wholesale motor vehicle auction GDN holder must display a business sign that meets the following requirements:(A) The sign must be a conspicuous, permanent sign with letters at least six inches in height showing the business name or assumed name substantially similar to the name reflected on the GDN under which the GDN holder conducts business. A business sign is considered conspicuous if it is easily visible to the public within 100 feet of the main entrance of the business office. A business sign is considered permanent only if it is made of durable, weather-resistant material.(B) The sign must be permanently mounted at the physical address listed on the application for the wholesale motor vehicle auction GDN. A business sign is considered permanently mounted if bolted to an exterior building wall or bolted or welded to a dedicated sign pole or sign support permanently installed in the ground.(C) An applicant may use a temporary sign or banner if the applicant can show proof that a sign that meets the requirements of this paragraph has been ordered and provides a written statement that the sign will be promptly and permanently mounted upon delivery.(D) An applicant or holder is responsible for ensuring that the business sign complies with municipal ordinances, and that any lease signage requirements are consistent with the signage requirements in this paragraph.(4) The business office of a wholesale motor vehicle auction GDN applicant and holder must meet the following requirements:(A) The office must be located in a building with a permanent roof and connecting exterior walls on all sides.(B) The office must comply with all applicable municipal ordinances, including municipal zoning ordinances. The wholesale motor vehicle auction is responsible for obtaining a certificate of occupancy, certificate of compliance, or other required document issued by a municipal government to show compliance, including a new certificate or document when the building is altered or remodeled, or when the building use changes.(C) The office may not be located in a residence, apartment, hotel, motel, rooming house, or any room or building not open to the public.(D) The office may not be located in a restaurant, gas station, or convenience store, unless the office has a separate entrance door that does not require a customer to pass through the other business.(E) The office may not be virtual or provided by a subscription for office space or office services. Access to office space or office services is not considered an established and permanent location.(F) The physical address of the office must be in Texas and recognized by the U.S. Postal Service, capable of receiving U.S. mail, and have an assigned emergency services property address. (G) A portable-type office building may qualify as an office only if the building meets the requirements of this section and is not a readily moveable trailer or other vehicle.(5) A wholesale motor vehicle auction GDN applicant and holder must have the following office equipment:(A) a desk;(B) a chair;(C) internet access; and(D) a working telephone number listed in the business name or assumed name under which business is conducted.(6) A wholesale motor vehicle auction must meet the following display area and storage lot requirements:(A) The area designated as display space for inventory must be located at the physical business address or contiguous to the physical address. The display area may not be in a storage lot.(B) The display area must be of sufficient size to display at least five vehicles. Those spaces must be reserved exclusively for inventory and may not be used for customer parking, employee parking, general storage, or shared or intermingled with another business or a public parking area, or a driveway to the office.(C) The display area may not be on a public easement, right-of-way, or driveway unless the governing body having jurisdiction of the easement, right-of-way, or driveway expressly consents in writing to use as a display area. If the easement, right-of-way, or driveway is a part of the state highway system, use as a display area may only be authorized by a lease agreement.(D) If the business location includes gasoline pumps or a charging station or includes another business that sells gasoline or has a charging station, the display area may not be part of the parking area for fuel or charging station customers and may not interfere with access to or from the gasoline pumps, fuel tanks, charging station, or fire prevention equipment.(E) The display area must be adequately illuminated if open at night so that a vehicle for sale can be properly inspected by a potential buyer.(F) The display area may be located inside a building. (G) A wholesale motor vehicle auction may maintain a storage lot only if the storage lot is not accessible to the public and no sales activity occurs at the storage lot. A sign stating the business name, contact information, and the fact the property is a storage lot is permissible. A storage lot must be fenced or in an access-controlled location to be considered not accessible to the public. A GDN holder or applicant must disclose the address of a storage lot or the location of a vehicle in inventory upon request by the department. (7) A wholesale motor vehicle auction must meet the following lease requirements if the business premises, including any display area, is not owned by the wholesale motor vehicle auction:(A) the applicant or holder must maintain a lease that is continuous during the period of time for which the GDN will be issued; (B) The lease agreement must be on a properly executed form containing at a minimum:(i) the name of the property owner as the lessor of the premises and the name of the GDN applicant or holder as the tenant or lessee of the premises;(ii) the period of time for which the lease is valid;(iii) the street address or legal description of the property, provided that if only a legal description of the property is included, a wholesale motor vehicle auction must attach a statement verifying that the property description in the lease agreement is the physical street address identified on the application as the physical address for the established and permanent place of business;(iv) the signature of the property owner as the lessor and the signature of the applicant or holder as the tenant or lessee; and(C) if the lease agreement is a sublease in which the property owner is not the lessor, the wholesale motor vehicle auction must also obtain a signed and notarized statement from the property owner including the following information:(i) property owner's full name, email address, mailing address, and phone number; and(ii) property owner's statement confirming that the wholesale motor vehicle auction is authorized to sublease the location and may operate a wholesale motor vehicle auction business from the location.</content><note type="source"><p>Source Note: The provisions of this §215.140 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective August 2, 2012, 37 TexReg 5637; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 28, 2017, 42 TexReg 3273; amended to be effective January 1, 2023, 47 TexReg 8745; amended to be effective June 1, 2024, 49 TexReg 2704; amended to be effective July 1, 2025, 49 TexReg 8953; amended to be effective October 9, 2025, 50 TexReg 6506.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scD/s215.141"><num value="215.141">§215.141</num><heading>Sanctions</heading><content>(a) The board or department may take the following actions against a license applicant, a license holder, or a person engaged in business for which a license is required:(1) deny an application;(2) revoke a license;(3) suspend a license;(4) assess a civil penalty; (5) issue a cease and desist order; or(6) take other authorized action.(b) The board or department may take action described in subsection (a) of this section if a license applicant, a license holder, or a person engaged in business for which a license is required:(1) fails to maintain a good and sufficient bond or post the required bond notice if required under Transportation Code §503.033 (relating to Security Requirement);(2) fails to meet or maintain the requirements of §215.140 of this title (relating to Established and Permanent Place of Business Premises Requirements);(3) fails to maintain records required under this chapter; (4) refuses or fails to comply with a request by the department for electronic records or to examine and copy electronic or physical records during the license holder's business hours at the licensed business location:(A) sales records required to be maintained by §215.144 of this title (relating to Vehicle Records);(B) ownership papers for a vehicle owned by that dealer or under that dealer's control;(C) evidence of ownership or a current lease agreement for the property on which the business is located; or(D) the Certificate of Occupancy, Certificate of Compliance, business license or permit, or other official documentation confirming compliance with county and municipal laws or ordinances for a vehicle business at the licensed physical location.(5) refuses or fails to timely comply with a request for records made by a representative of the department;(6) holds a wholesale motor vehicle dealer's license and sells or offers to sell a motor vehicle to a person other than a licensed or authorized dealer;(7) sells or offers to sell a type of vehicle that the person is not licensed to sell;(8) fails to submit a license amendment application in the electronic licensing system designated by the department to notify the department of a change of the license holder's physical address, mailing address, telephone number, or email address within 10 days of the change;(9) fails to submit a license amendment application in the electronic licensing system designated by the department to notify the department of a license holder's name change, or management or ownership change within 10 days of the change;(10) issues more than one buyer's license plate or buyer's temporary license plate for a vehicle sold on or after July 1, 2025, or more than one temporary tag for a vehicle sold before July 1, 2025, for the purpose of extending the purchaser's operating privileges for more than 60 days;(11) fails to remove a license plate or registration insignia from a vehicle that is displayed for sale;(12) misuses a dealer's license plate, or a temporary tag before July 1, 2025;(13) fails to display a dealer's license plate, or temporary tag before July 1, 2025, as required by law;(14) holds open a title or fails to take assignment of a certificate of title, manufacturer's certificate, or other basic evidence of ownership for a vehicle acquired by the dealer, or fails to assign the certificate of title, manufacturer's certificate, or other basic evidence of ownership for a vehicle sold;(15) fails to remain regularly and actively engaged in the business of buying, selling, or exchanging vehicles of the type for which the GDN is issued by the department;(16) violates a provision of Occupations Code, Chapter 2301; Transportation Code Chapters 503 and 1001-1005; a board order or rule; or a regulation of the department relating to the sale, lease, distribution, financing, or insuring of vehicles, including advertising rules under Subchapter F of this chapter (relating to Advertising);(17) is convicted of an offense that directly relates to the duties or responsibilities of the occupation in accordance with §211.3 of this title (relating to Criminal Offense Guidelines); (18) is determined by the board or department, in accordance with §215.89 of this title (relating to Fitness), to be unfit to hold a license;(19) has not assigned at least five vehicles in the prior 12 months, provided the dealer has been licensed more than 12 months;(20) files or provides a false or forged:(A) title document, including an affidavit making application for a certified copy of a title; or(B) tax document, including a sales tax statement or affidavit;(21) uses or allows use of that dealer's license or location for the purpose of avoiding a provision of Occupations Code, Chapter 2301; Transportation Code, Chapters 503 and 1001 - 1005; or other laws;(22) omits information or makes a material misrepresentation in any application or other documentation filed with the department including providing a false or forged identity document or a false or forged photograph, electronic image, or other document;(23) fails to remit payment as ordered for a civil penalty assessed by the board or department;(24) sells a new motor vehicle without a franchised dealer's license issued by the department;(25) fails to comply with a dealer responsibility under §215.150 of this title (relating to Dealer Authorization to Issue License Plates); (26) on or after July 1, 2025, fails to securely store a license plate or fails to destroy a previously issued but currently unassigned license plate within the time prescribed by statute;(27) fails to maintain a record of dealer license plates as required under §215.138 of this title (relating to Use of Dealer's License Plates);(28) on or after July 1, 2025, fails to file or enter a vehicle transfer notice;(29) fails to enter a lost, stolen, or damaged license plate in the electronic system designated by the department within the time limit prescribed by rule; (30) violates any state or federal law or regulation relating to the sale of a motor vehicle; (31) knowingly fails to disclose that a motor vehicle has been repaired, rebuilt, or reconstructed and issued a title under Transportation Code, §501.100 (relating to Application for Regular Certificate of Title for Salvage Vehicle);(32) fails to issue a refund as ordered by the board or department;(33) fails to acquire or maintain a required certificate of occupancy, certificate of compliance, business license or permit, or other official documentation for the licensed location confirming compliance with county or municipal laws or ordinances or other local requirements for a vehicle business;(34) on or after July 1, 2025, fails to remove a license plate from a vehicle as required by statute or rule; or(35) fails to keep or maintain records required under Occupations Code, Chapter 2305, Subchapter D or to allow an inspection of these records by the department.</content><note type="source"><p>Source Note: The provisions of this §215.141 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective August 2, 2012, 37 TexReg 5637; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704; amended to be effective November 14, 2024, 49 TexReg 8953; amended to be effective October 9, 2025, 50 TexReg 6506.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scD/s215.143"><num value="215.143">§215.143</num><heading>Drive-a-way Operator In-Transit License Plates</heading><content>(a) A drive-a-way operator may apply for a drive-a-way in-transit standard license plate:(1) when applying for a new or renewal in-transit license, or(2) by submitting a plate request application electronically in the system designated by the department.(b) A drive-a-way operator must display an in-transit license plate in the rear of each transported motor vehicle from the vehicle's point of origin to its point of destination in Texas in accordance with §217.27 of this title (relating to Vehicle Registration Insignia).(c) A drive-a-way operator shall maintain a record of each license plate issued to the operator by the department in the department-designated system. The record of each license plate issued must contain:(1) the license plate number;(2) the year and make of the vehicle to which the license plate is affixed;(3) the VIN of the vehicle; and(4) the name of the person in control of the license plate.(d) If a drive-a-way operator cannot account for a license plate or a license plate is damaged, the operator must:(1) document the license plate as "void" in the department-designated system;(2) within three days of discovering that the license plate is missing or damaged, report the license plate as lost, stolen, or damaged in the electronic system designated by the department; and(3) if found once reported, cease use of the license plate.(e) A license plate is no longer valid for use after the drive-a-way operator reports to the department that the plate is lost, stolen, or damaged. A drive-a-way operator must render a void plate unusable by permanently marking the front of the plate with the word "VOID" or a large "X" and once marked, may destroy or recycle the license plate, or return the license plate to the department for recycling within 10 days.(f) In evaluating requests for additional license plates, the department will consider the business justification provided by a drive-a-way operator including the following:(1) the number of vehicles currently being transported to a location in Texas;(2) the highest number of motor vehicles transported in the prior 12 months;(3) the size and type of business; and(4) the operator's record of tracking and reporting missing or damaged plates to the department.(g) If a drive-a-way operator closes the associated license or the associated license is revoked or canceled by the department, the operator must return a license plate to the department within 10 days.</content><note type="source"><p>Source Note: The provisions of this §215.143 adopted to be effective June 1, 2024, 49 TexReg 2704; amended to be effective July 1, 2025, 49 TexReg 8953.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scD/s215.144"><num value="215.144">§215.144</num><heading>Vehicle Records</heading><content>(a) Purchases and sales records. A dealer and wholesale motor vehicle auction shall maintain a complete record of all vehicle purchases and sales for a minimum period of 48 months and make the record available for inspection and copying by the department during business hours.(b) Independent mobility motor vehicle dealers. An independent mobility motor vehicle dealer shall keep a complete written record of each vehicle purchase, vehicle sale, and any adaptive work performed on each vehicle for a minimum period of 36 months after the date the adaptive work is performed on the vehicle. An independent mobility motor vehicle dealer shall also retain and produce for inspection all records relating to license requirements under Occupations Code, §2301.002(17-b) and all information and records required under Transportation Code §503.0295. (c) Location of records. A dealer's record reflecting purchases and sales for the preceding 13 months must be maintained at the dealer's licensed location. Original titles are not required to be kept at the licensed location but must be made available to the agency upon reasonable request. A dealer's record for prior time periods may be kept off-site.(d) Request for records. Within 15 days of receiving a request from a representative of the department, a dealer shall deliver a copy of the specified records to the address listed in the request. If a dealer has a concern about the origin of a records request, the dealer may verify that request with the department prior to submitting its records.(e) Content of records. A dealer's complete record for each vehicle purchase or vehicle sale must contain:(1) the date of the purchase;(2) the date of the sale;(3) the VIN;(4) the name and address of the person selling the vehicle to the dealer;(5) the name and address of the person purchasing the vehicle from the dealer;(6) the name and address of the consignor if the vehicle is offered for sale by consignment;(7) except for a purchase or sale where the Tax Code does not require payment of motor vehicle sales tax, a county tax assessor-collector receipt marked paid;(8) a copy of all documents, forms, and agreements applicable to a particular sale, including a copy of:(A) the title application;(B) the work-up sheet;(C) the front and back of the manufacturer's certificate of origin or manufacturer's statement of origin, unless the dealer obtains the title through webDEALER as defined in §217.71 of this title (relating to Automated and Web-Based Vehicle Registration and Title Systems);(D) the front and back of the title for the purchase and the sale, unless the dealer enters or obtains the title through webDEALER as defined in §217.71 of this title;(E) the factory invoice, if applicable;(F) the sales contract;(G) the retail installment agreement;(H) the buyer's order;(I) the bill of sale;(J) any waiver;(K) any other agreement between the seller and purchaser; (L) the purchaser's photo identification;(M) the odometer disclosure statement signed by the buyer, unless the vehicle is exempt; and(N) the rebuilt salvage disclosure, if applicable.(9) the original manufacturer's certificate of origin, original manufacturer's statement of origin, or original title for a motor vehicle offered for sale by a dealer which must be properly stamped if the title transaction is entered into webDEALER as defined in §217.71 of this title by the dealer;(10) the dealer's monthly Motor Vehicle Seller Financed Sales Returns, if any; and(11) if the vehicle sold is a motor home or a towable recreational vehicle subject to inspection under Transportation Code, Chapter 548, a copy of the written notice provided to the buyer at the time of the sale, notifying the buyer that the vehicle is subject to inspection requirements.(f) Title assignments.(1) For each vehicle a dealer acquires or offers for sale, the dealer must properly take assignment in the dealer's name of any:(A) title;(B) manufacturer's statement of origin;(C) manufacturer's certificate of origin; or(D) other evidence of ownership.(2) Unless not required by Transportation Code, §501.0234(b), a dealer must apply in the name of the purchaser of a vehicle for the title and registration, as applicable, of the vehicle with a county tax assessor-collector.(3) To comply with Transportation Code, §501.0234(f), a title or registration is considered filed within a reasonable time if filed within:(A) 30 days of the vehicle sale date; or(B) 45 days of the vehicle sale date for a dealer-financed transaction; or (C) 60 days of the vehicle sale date for a vehicle purchased by a member or reserve member of the United States armed forces, Texas National Guard, or National Guard of another state serving on active duty. (4) The dealer is required to provide to the purchaser the receipt for the title and registration application.(5) The dealer is required to maintain a copy of the receipt for the title and registration application in the dealer's sales file.(g) Out-of-state sales. For a sale involving a vehicle to be transferred out of state, the dealer must:(1) within 30 days of the date of sale, either file the application for certificate of title on behalf of the purchaser or deliver the properly assigned evidence of ownership to the purchaser; and(2) maintain in the dealer's record at the dealer's licensed location a photocopy of the completed sales tax exemption form for out of state sales approved by the Texas Comptroller of Public Accounts.(h) Consignment sales. A dealer offering a vehicle for sale by consignment must have a written consignment agreement or a power of attorney for the vehicle, and shall, after the sale of the vehicle, take assignment of the vehicle in the dealer's name and, pursuant to subsection (f), apply in the name of the purchaser for transfer of title and registration, if the vehicle is to be registered, with a county tax assessor-collector. The dealer must, for a minimum of 48 months, maintain a record of each vehicle offered for sale by consignment, including the VIN and the name of the owner of the vehicle offered for sale by consignment.(i) Public motor vehicle auctions.(1) A GDN holder that acts as a public motor vehicle auction must comply with subsection (h) of this section.(2) A GDN holder that acts as a public motor vehicle auction:(A) is not required to take assignment of title of a vehicle before offering the vehicle for sale at auction;(B) must take assignment of title of a vehicle from a consignor prior to making application for title on behalf of the buyer; and(C) must make application for title on behalf of the purchaser and remit motor vehicle sales tax within a reasonable time as defined in subsection (f) of this section.(3) A GDN holder may not sell another GDN holder's vehicle at a public motor vehicle auction.(j) Wholesale motor vehicle auction records. A wholesale motor vehicle auction license holder shall maintain, for a minimum of 48 months, a complete record of each vehicle purchase and sale occurring through the wholesale motor vehicle auction. The wholesale motor vehicle auction license holder shall make the record available for inspection and copying by the department during business hours.(1) A wholesale motor vehicle auction license holder shall maintain at the licensed location a record reflecting each purchase and sale for at least the preceding 24 months. Records for prior time periods may be kept off-site.(2) Within 15 days of receiving a department request, a wholesale motor vehicle auction license holder shall deliver a copy of the specified records to the address listed in the request.(3) A wholesale motor vehicle auction license holder's complete record of each vehicle purchase and sale must, at a minimum, contain:(A) the date of sale;(B) the VIN;(C) the name and address of the person selling the vehicle;(D) the name and address of the person purchasing the vehicle;(E) the dealer's license number of both the selling dealer and the purchasing dealer, unless either is exempt from holding a license;(F) all information necessary to comply with the federal odometer disclosure requirements in 49 CFR Part 580;(G) auction access documents, including the written authorization and revocation of authorization for an agent or employee, in accordance with §215.148 of this title (relating to Dealer Agents);(H) invoices, bills of sale, checks, drafts, or other documents that identify the vehicle, the parties, or the purchase price;(I) any information regarding the prior status of the vehicle such as the Reacquired Vehicle Disclosure Statement or other lemon law disclosures; and(J) a copy of any written authorization allowing an agent of a dealer to enter the auction.(k) Electronic records. A license holder may maintain a record in an electronic format if the license holder can print the record at the licensed location upon request by the department, except as provided by subsection (l) of this section.(l) Use of department electronic titling and registration systems:(1) webDEALER. A license holder utilizing the department's web-based title application known as webDEALER, as defined in §217.71 of this title (relating to Automated and Web-Based Vehicle Registration and Title Systems), shall comply with §217.74 of this title (relating to Access to and Use of webDEALER). Original hard copy titles are not required to be kept at the licensed location but must be made available to the department upon request.(2) License Plate System. A license holder must comply with §215.151 of this title (relating to Buyer's License Plates General Use Requirements) regarding requirements to enter information into the department-designated electronic system for license plates.</content><note type="source"><p>Source Note: The provisions of this §215.144 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective March 1, 2018, 43 TexReg 1144; amended to be effective June 1, 2024, 49 TexReg 2704; amended to be effective July 1, 2025, 49 TexReg 8953; amended to be effective October 9, 2025, 50 TexReg 6506.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scD/s215.145"><num value="215.145">§215.145</num><heading>Change of Dealer's Status</heading><content>(a) A dealer's name change requires a new bond or a rider to the existing bond reflecting the new name, unless the dealer is not otherwise required to purchase a bond.(b) A dealer shall notify the department in writing within 10 days of a change of ownership by submitting a license amendment application in the department-designated electronic licensing system. A licensed dealer that proposes to sell or assign to another any interest in the licensed entity, whether a corporation or otherwise, and provided the physical location of the licensed entity remains the same, shall notify the department in writing within 10 days of the change by filing an application to amend the license in the department-designated electronic licensing system. If the sale or assignment of any portion of the business results in a change of entity, then the new entity must apply for and obtain a new license. A publicly held corporation only needs to inform the department of a change in ownership if one person or entity acquires a 10% or greater interest in the licensed entity.(c) Upon the death of a dealer operating as a sole proprietor, either the surviving spouse of the deceased dealer or other individual deemed qualified by the department shall submit to the department a bond rider adding the name of the surviving spouse or other qualifying person to the bond for the remainder of the bond and license term. The surviving spouse or other qualifying person may continue operating under the current dealer license until the end of the license term.(d) For purposes of subsection (c) of this section, the sole proprietor's surviving spouse may change the ownership of the dealership at the time the license is renewed without applying for a new GDN. At the time the renewal application is filed, the sole proprietor's surviving spouse must submit to the department:(1) an application to amend the business entity;(2) a copy of the sole proprietor's certificate of death, naming the surviving spouse;(3) the required ownership information; and(4) if applicable, a bond in the name of the surviving spouse.(e) For purposes of subsection (c) of this section, a qualifying person who is not the surviving spouse may operate the sole proprietorship business during the term of the license. The qualifying person must file with the department:(1) an application to amend the business entity, identifying the qualifying person as the manager;(2) an ownership information form, indicating that the qualifying person has no ownership interest in the business; and(3) a bond rider adding the qualified person's name to the existing bond.(f) For purposes of subsection (c) of this section, a qualifying person who is not the surviving spouse must file with the department an application for a new GDN on or before the expiration of the license term in the department-designated electronic licensing system.(g) A determination made under this section does not impact a decision made by the board under Occupations Code, §2301.462 (relating to Succession Following Death of Franchised Dealer).</content><note type="source"><p>Source Note: The provisions of this §215.145 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scD/s215.147"><num value="215.147">§215.147</num><heading>Export Sales</heading><content>(a) Before selling a motor vehicle for export from the United States to another country, a dealer must obtain a legible photocopy of the buyer's government-issued photo identification document. The photo identification document must be issued by the jurisdiction where the buyer resides and be:(1) a passport;(2) a driver license;(3) a license to carry a handgun issued by the Texas Department of Public Safety under Government Code, Chapter 411, Subchapter H;(4) a national identification certificate or identity document; or(5) other identification document containing the:(A) name of the issuing jurisdiction;(B) buyer's full name;(C) buyer's foreign address;(D) buyer's date of birth;(E) buyer's photograph; and(F) buyer's signature.(b) A dealer that sells a vehicle for export from the United States shall place a stamp on the title that includes the words "For Export Only" and includes the dealer's GDN. The stamp must be legible, in black ink, at least two inches wide, and placed on the:(1) back of the title in all unused dealer reassignment spaces; and(2) front of the title in a manner that does not obscure any names, dates, mileage statements, or other information printed on the title.(c) In addition to the records required to be maintained by §215.144 of this title (relating to Vehicle Records), a dealer shall maintain, for each motor vehicle sold for export, a sales file record. The sales file record shall be made available for inspection and copying upon request by the department. The sales file record of each vehicle sold for export must contain:(1) a completed copy of the Texas Motor Vehicle Sales Tax Exemption Certificate for Vehicles Taken Out of State, indicating that the vehicle has been purchased for export to a foreign country;(2) a copy of the front and back of the title of the vehicle, showing the "For Export Only" stamp and the GDN of the dealer; and(3) if applicable, an Export-only Sales Record Form, listing each motor vehicle sold for export only.(d) A dealer, at the time of sale of a vehicle for export, shall remove, void, and destroy or recycle any license plate or registration insignia as required under §215.158 (relating to General Requirements for Buyer's License Plates) before transferring the vehicle.</content><note type="source"><p>Source Note: The provisions of this §215.147 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704; amended to be effective July 1, 2025, 49 TexReg 8953.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scD/s215.148"><num value="215.148">§215.148</num><heading>Dealer Agents</heading><content>(a) A dealer shall provide written authorization to each person with whom the dealer's agent or employee will conduct business on behalf of the dealer, including to a person that:(1) buys and sells motor vehicles for resale; or(2) operates a licensed auction.(b) If a dealer's agent or employee that conducts business on behalf of the dealer commits an act or omission that would be cause for denial, revocation, or suspension of a license in accordance with Occupations Code, Chapter 2301 or Transportation Code, Chapter 503, the board may:(1) deny an application for a license; or(2) revoke or suspend a license.(c) The board may take action described in subsection (b) of this section after notice and an opportunity for hearing, in accordance with Occupations Code, Chapter 2301 and Chapter 224 of this title (relating to Adjudicative Practice and Procedure).(d) A dealer's authorization to an agent or employee must:(1) be in writing;(2) be signed by the dealer principal or person in charge of daily activities of the dealership;(3) include the agent's or employee's name, current mailing address, and telephone number;(4) include the dealer's business name, address, and dealer license number or numbers;(5) expressly authorize buying or selling by the specified agent or employee;(6) state that the dealer is liable for any act or omission regarding a duty or obligation of the dealer that is caused by that agent or employee, including any financial considerations to be paid for the vehicle;(7) state that the dealer's authorization remains in effect until the recipient of the written authorization is notified in writing of the revocation of the authority; and(8) be maintained as a required dealer's record and made available upon request by a representative of the department, in accordance with the requirements of §215.144 of this title (relating to Vehicle Records).(e) A license holder, including a wholesale motor vehicle auction that buys and sells vehicles on a wholesale basis, including by sealed bid, is required to verify the authority of any person claiming to be an agent or employee of a licensed dealer who purports to be buying or selling a motor vehicle:(1) on behalf of a licensed dealer; or(2) under the written authority of a licensed dealer.(f) A title to a vehicle bought by an agent or employee of a dealer shall be:(1) reassigned to the dealer by the seller or by the auction; and(2) shall not be delivered to the agent or employee but delivered only to the dealer or the dealer's financial institution.(g) Notwithstanding the prohibitions in this section, an authorized agent or employee may sign a required odometer statement.(h) In a wholesale transaction for the purchase of a motor vehicle, the seller may accept as consideration only:(1) a check or a draft drawn on the purchasing dealer's account;(2) a cashier's check in the name of the purchasing dealer; or(3) a wire transfer from the purchasing dealer's bank account.</content><note type="source"><p>Source Note: The provisions of this §215.148 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704; amended to be effective November 14, 2024, 49 TexReg 8953.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scD/s215.149"><num value="215.149">§215.149</num><heading>Sales of New Mobility Motor Vehicles</heading><content>In accordance with Occupations Code, §2301.361, a transaction occurs through or by a franchised dealer of the motor vehicle's chassis line-make if the franchised dealer applies for title and registration of a new mobility motor vehicle in the name of the purchaser. An independent mobility motor vehicle dealer may prepare the documentation necessary for a franchised dealer to comply with the requirements of Transportation Code, §501.0234 in connection with the sale of a new mobility motor vehicle.</content><note type="source"><p>Source Note: The provisions of this §215.149 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scD/s215.150"><num value="215.150">§215.150</num><heading>Dealer Authorization to Issue License Plates</heading><content>(a) A dealer that holds a GDN must issue a buyer's license plate for a vehicle type the dealer is authorized to sell to:(1) a buyer of a new vehicle to be titled and registered in Texas, unless the buyer has a general issue license plate or a specialty, personalized, or other qualifying license plate eligible to be assigned to the vehicle with approval of the department; or (2) a buyer of a used vehicle to be titled and registered in Texas if the buyer does not have a general issue license plate or a specialty, personalized, or other qualifying license plate eligible to be assigned to the vehicle with approval of the department. (b) Notwithstanding subsection (a), a dealer that holds a GDN is not required to issue a buyer's license plate to a vehicle sold to a commercial fleet buyer authorized as a Dealer Deputy under §217.166 of the title (relating to Dealer Deputies).(c) A dealer that holds a GDN must issue a buyer's temporary license plate to an out-of-state buyer for a vehicle that is to be registered in accordance with the laws of the buyer's state of residence.(d) A dealer may issue a license plate under Transportation Code §503.063 until:(1) the department denies access to the license plate system under Transportation Code §503.0633(f) and §224.58 of this title (relating to Denial of Dealer Access to License Plate System);(2) the dealer issues the maximum number of license plates authorized under Transportation Code, §503.0633(a) - (d); or(3) the GDN is closed, canceled, revoked, or suspended.(e) A governmental agency that is exempt under Transportation Code, §503.024 from the requirement to obtain a dealer general distinguishing number may issue a buyer's license plate or a buyer's temporary license plate to the buyer of a vehicle owned by the governmental agency unless the buyer has a general issue license plate or a specialty, personalized, or other qualifying license plate that is eligible to be assigned to the vehicle with approval of the department. A governmental agency that issues a buyer's license plate or buyer's temporary license plate under this subsection:(1) is subject to the provisions of Transportation Code §503.0631 and §503.0671 applicable to a dealer; and(2) is not required to charge the registration fee authorized under Transportation Code §503.063(g) and specified in §215.155(g) of this title (relating to Buyer's License Plates).(f) A dealer is responsible for all use of and access to all license plates in the dealer's possession and the license plate system under the dealer's account, including access by any user or unauthorized person. Dealer duties include monitoring license plate storage and issuance, managing account access, and taking timely and appropriate actions to maintain license plate and system security, including:(1) establishing and following reasonable password policies, including preventing the sharing of passwords;(2) limiting authorized users to owners and bona fide employees with a business need to access license plates and the license plate system;(3) removing users who no longer have a legitimate business need to access the system;(4) securing all license plates, including dealer's license plates and unissued or unassigned buyer's license plates, by storing license plates in a locked and secured room or closet or one or more securely locked, substantially constructed safes or steel cabinets bolted or affixed to the floor or wall of sufficient size to store all dealer and buyer's license plates in a dealer's possession, and by promptly marking and destroying, recycling, or returning void license plates as required under §215.158 of this title (relating to General Requirements for Buyer's License Plates; and(5) securing equipment used to access the license plate system.</content><note type="source"><p>Source Note: The provisions of this §215.150 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective October 21, 2020, 45 TexReg 7441; amended to be effective January 27, 2022, 47 TexReg 662; amended to be effective June 1, 2024, 49 TexReg 2704; amended to be effective July 1, 2025, 49 TexReg 8953; amended to be effective October 9, 2025, 50 TexReg 6506.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scD/s215.151"><num value="215.151">§215.151</num><heading>License Plate General Use Requirements</heading><content>(a) If a buyer purchases a vehicle to be registered in Texas, a dealer must secure, or a government agency may secure, a license plate to the vehicle in accordance with §217.27 of this title (relating to Vehicle Registration Insignia) and update the license plate system accordingly. (1) A dealer must secure, or a governmental agency may secure, a buyer-provided license plate on the purchased vehicle if a buyer provides a general issue, or specialty, personalized, or other qualifying license plate that is eligible to be assigned to the vehicle with approval of the department and update the license plate system accordingly. (2) A dealer must issue a buyer's license plate to the buyer if a buyer purchases a new vehicle from a dealer and the buyer does not have a general issue, specialty, personalized, or other qualifying license plate to transfer to the vehicle. (3) A dealer must issue, or a governmental agency may issue, a buyer's license plate to a buyer purchasing a used vehicle if the buyer does not have a general issue, specialty, personalized, or other qualifying license plate to transfer to the vehicle. (b) If a non-resident buyer purchases a vehicle to be titled and registered in accordance with the laws of the buyer's state of residence, a dealer must issue, or a governmental agency may issue, a buyer's temporary license plate and secure the temporary license plate to the rear of a vehicle in accordance with §217.27 of this title and update the license plate system accordingly. (c) If the buyer provides a general issue, specialty, personalized, or other qualifying license plate to transfer to the vehicle, a dealer must update the license plate status in the license plate system, remove any previously assigned general issue license plate and reassign that license plate to a vehicle of the same class within ten days, before marking as void and destroy, recycle, or return the license plate as required in §215.158 of the title (relating to General Requirements for Buyer's License Plates). (d) A dealer, including a wholesale dealer, must remove a buyer's license plate from a purchased vehicle and store the license plate in a secure location in accordance with §215.150(f) of this title (relating to Dealer Authorization to Issue License Plates). The dealer must update the license plate database and may:(1) reassign the license plate to a vehicle of the same class within 10 days if purchased by a Texas retail buyer; or(2) mark the license plate as void and destroy, recycle, or return the license plate as required in §215.158 of this title.(e) Notwithstanding subsection (a) or subsection (b) of this section, a dealer is not required to secure an assigned buyer's license plate to a lawfully purchased vehicle in the following circumstances: (1) when a retail buyer purchases a vehicle for direct delivery to the buyer and the buyer authorizes the dealer in writing to mail or securely deliver the assigned license plate to the buyer; or(2) when a retail buyer purchases a vehicle to be converted and authorizes the dealer in writing to mail or securely deliver the assigned license plate to a licensed converter who will affix the license plate to the completed vehicle prior to delivery to the buyer.</content><note type="source"><p>Source Note: The provisions of this §215.151 adopted to be effective July 1, 2025, 49 TexReg 8953; amended to be effective October 9, 2025, 50 TexReg 6506.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scD/s215.152"><num value="215.152">§215.152</num><heading>Obtaining Dealer-Issued Buyer's License Plates</heading><content>(a) A dealer or governmental agency is required to have internet access to connect to webDEALER and the license plate system maintained by the department and is responsible for verifying receipt of license plates in the license plate system. (b) Except as provided by §215.157 of this title (relating to Issuing Buyer's License Plates and License Plate Receipts When Internet Not Available) before a license plate may be issued or secured on a vehicle, a dealer or governmental agency must enter in the license plate system true and accurate information about:(1) the vehicle; (2) the buyer; and(3) the license plate number issued or assigned to the vehicle.(c) The department will inform each dealer annually of the maximum number of new buyer's license plates the dealer is authorized to obtain during the calendar year under Transportation Code, §503.063, including:(1) an allotment of buyer's license plates to be issued to a buyer of a vehicle that is to be titled and registered in Texas, and (2) a separate allotment of buyer's temporary license plates to be issued to a non-resident buyer for a vehicle that will be registered and titled in another state. (d) The department will calculate a dealer's maximum annual allotment of new buyer's license plates and buyer's temporary license plates based on the following formula: (1) Vehicle title transfers, sales, or license plate issuance data determined from the department's systems from the previous fiscal year; (2) the total value of paragraph (1) of this subsection will be increased by a multiplier based on the dealer's time in operation giving a 10 percent increase for each year the dealer has been in operation up to 10 years; and(3) the total value of paragraph (2) of this subsection will be increased by a multiplier that is the greater of:(A) the dealer's actual growth rate percentage identified from the preceding two fiscal years, calculated by the growth of the number of in-state or out-of-state sales transactions processed through the department-designated registration and title system or license plate system, except that it may not exceed 200 percent; or(B) the statewide actual growth rate percentage identified from the preceding two fiscal years, calculated by the growth of the number of relevant transactions processed through the department-designated registration and title system or license plate system, not less than zero, to determine the dealer's annual allotment; and(4) the department may increase or decrease the annual allotment for dealers in the state, in a geographic or population area, or in a county, based on:(A) changes in the market;(B) temporary conditions that may affect sales; and(C) any other information the department considers relevant.(e) A dealer licensed after the commencement of a calendar year shall be allocated the number of buyer's license plates and buyer's temporary plates allocated in this subsection prorated on all or part of the remaining months until the commencement of the calendar year after the dealer's initial license expires. The initial allocations shall be as determined by the department in granting the license, but not more than:(1) 200 buyer's license plates and 100 buyer's temporary license plates for a franchised dealer unless the dealer provides credible information indicating that a greater number of buyer's license plates is warranted based on anticipated sales, and growth, to include new and used vehicle sales, including information from the manufacturer or distributor, or as otherwise provided in this section.(2) 100 buyer's license plates and 48 buyer's temporary license plates for a nonfranchised dealer unless the dealer provides credible information indicating that a greater number of license plates is warranted based on anticipated sales as otherwise provided in this section.(f) An existing dealer that is:(1) moving its operations from one location to a different location will continue with its allotment of buyer's license plates and buyer's temporary license plates and not be allocated license plates under subsection (e) of this section;(2) opening an additional location will receive a maximum allotment of buyer's license plates and buyer's temporary license plates based on the greater of the allotment provided to existing locations, including franchised dealers opening additional locations for different line makes, or the amount under subsection (e) of this section;(3) purchased as a buy-sell ownership agreement will receive the maximum allotment of buyer's license plates and buyer's temporary license plates provided to the location being purchased and not be allocated license plates under subsection (e) of this section; and(4) inherited by will or laws of descent will receive the maximum allotment of buyer's license plates and buyer's temporary license plates provided to the location being inherited and not be allocated license plates under subsection (e) of this section. (g) A new dealer may also provide credible information supporting a request for additional or fewer buyer's license plates and buyer's temporary license plates to the amount allocated under subsection (e) of this section based on:(1) franchised dealer, manufacturer, or distributor sales expectations;(2) a change in GDN required by death or retirement, except as provided in subsection (f) of this section;(3) prior year's sales by a dealer moving into the state; or(4) other similar change of location or ownership that indicates some continuity in existing operations.(h) The annual allotment of buyer's issue license plates and buyer's temporary license plates will each be divided by four and allocated to a dealer on a quarterly basis, unless a dealer sells only antique or special interest vehicles as defined by Transportation Code, §683.077(b), in which case each allocation may be divided by two and allocated on a half-yearly basis. A dealer's remaining unissued license plates at the end of the allocation period will count towards the dealer's next allotment. (i) A dealer is not eligible to receive a quarterly allocation in the following circumstances:(1) the dealer's license has been closed, canceled, or revoked in a final order;(2) the department has issued a notice of department decision under §224.56 of this title (relating to Notice of Department Decision), alleging that the dealer is in violation of §215.140 of this title (relating to Established and Permanent Place of Business Premises Requirements) and appears to have abandoned the licensed location;(3) the department has denied the dealer access to the temporary tag system or the license plate system in accordance with §224.58 of this title (relating to Denial of Dealer Access to License Plate System) and Transportation Code, §503.0633(f);(4) a dealer fails a compliance review performed by the department under Transportation Code, §503.063(d);(5) the dealer license expires during that quarter and the dealer has not submitted a license renewal application to the department; (6) a dealer does not have an owner or bona fide employee at the licensed location during posted business hours to accept a license plate delivery; or(7) a dealer fails to keep license plates or the license plate system secure. (j) A dealer with an active license and access to the license plate database who is ineligible to receive a quarterly allocation under subsection (i) of this section may request the department conduct a compliance review under Transportation Code, §503.063(d) to determine if the dealer is eligible to receive a future allocation by submitting a request to DealerCompliance@txdmv.gov. The department will conduct the compliance review within 14 days of the dealer's request. (k) A dealer who has an active license but is not eligible to receive a quarterly allocation under subsection (i) of this section may obtain buyer's license plates from a county tax assessor-collector or department regional service center, as directed by the department.(l) A dealer may request more buyer's license plates or buyer's temporary license plates: (1) after using 50 percent of the quarterly allocation of general issue plates or buyer temporary plates, a dealer may request an advance on the next quarter's allotment; or(2) after using 50 percent of the allotted annual maximum number of general issue plates or buyer temporary plates a dealer may request an increase in the annual allotted number of license plates. (m) A dealer may request fewer buyer's license plates or buyer's temporary license plates: (1) after using less than 50 percent of the quarterly allocation of general issue license plates or buyer temporary license plates in a quarter; or(2) after using less than 50 percent of the allotted annual maximum number of general issue license plates or buyer temporary license plates in a year. (n) To receive more buyer's license plates or buyer's temporary license plates or to request a decrease in a quarterly or annual allocation, a dealer must submit a request in the department's designated license plate system. (o) A dealer requesting an increase or decrease in the maximum annual allotment of buyer's license plates or buyer's temporary license plates must provide information demonstrating the need for additional license plates results from business operations, including anticipated needs, as required by Transportation Code, §503.0633(c). Information may include documentation of sales and tax reports filed as required by law, information of anticipated need, or other information of the factors listed in Transportation Code, §503.0633(b).(1) The department shall consider the information presented and may consider information not presented that may weigh for or against granting the request that the department in its sole discretion determines to be relevant in making its determination. Other relevant information may include information of the factors listed in Transportation Code, §503.0633(b), the timing of the request, and the requestor's license plate activity.(2) The department may allocate a lesser or greater number of license plates than the amount requested. Allocation of a lesser or greater number of license plates is not a denial of the request. Allocation of license plates under this paragraph does not limit the dealer's ability to submit additional requests.(3) If a request is denied, the denial will be sent to the dealer by email to the requestor's email address.(A) A dealer may appeal the denial to the designated director in the Vehicle Titles and Registration Division.(B) The appeal must be requested though the designated license plate system within 15 days of the date the department emailed the denial to the dealer.(C) The appeal may discuss information provided in the request but may not include additional information.(D) The designated director in the Vehicle Titles and Registration Division will review the appeal and any additional statements concerning the information submitted in the original request and render an opinion within 15 days of receiving the appeal. The designated director in the Vehicle Titles and Registration Division may decide to deny the appeal or award an amount of license plates that is lesser, equal to, or greater than the request. (E) The requesting dealer will be notified as follows:(i) If the designated director in the Vehicle Titles and Registration Division decides to deny the appeal, the department will contact the requesting dealer by email regarding the decision and options to submit a new request with additional relevant credible supporting documentation or to pursue a claim in district court; or(ii) If the designated director in the Vehicle Titles and Registration Division awards an amount of license plates that is lesser, equal to, or greater than the request, the dealer's allocation will be adjusted and the dealer will be contacted by email regarding the decision, informed that the request has not been denied, and informed about options to submit a new request.(4) The designated director in the Vehicle Titles and Registration Division's decision on appeal is final.(5) Once a denial is final, a dealer may only submit a subsequent request during that calendar year if the dealer is able to provide additional information not considered in a prior request.(p) A change in the allotment under subsection (i) of this section does not create a dealer base for subsequent year calculations.(q) The department may at any time initiate an enforcement action against a dealer if license plate system activity suggests that misuse or fraud has occurred as described in Transportation Code §503.0633(f) or §503.0671.</content><note type="source"><p>Source Note: The provisions of this §215.152 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective October 21, 2020, 45 TexReg 7441; amended to be effective February 14, 2022, 47 TexReg 954; amended to be effective June 1, 2024, 49 TexReg 2704; amended to be effective July 1, 2025, 49 TexReg 8953; amended to be effective October 9, 2025, 50 TexReg 6506.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scD/s215.154"><num value="215.154">§215.154</num><heading>Dealer's Temporary License Plate Allocation</heading><content>(a) The number of dealer's temporary license plates a dealer may order for business use is based on the type of license for which the dealer applied and the number of vehicles the dealer sold during the previous year. (b) Unless otherwise qualified under this section, the maximum number of dealer's temporary license plates the department will issue to a new license applicant during the applicant's first license term is indicated in the following table.Attached Graphic(c) A person holding a dealer license on July 1, 2025, is eligible to receive the following maximum number of dealer's temporary plates:(1) the number designated for that license type in subsection (b) of this section; and(2) the number designated in subsection (e) of this section based on vehicle sales in the last 12-month period. (d) A dealer that applies for a license is not subject to the initial allotment limits described in this section and may rely on that dealer's existing allocation of dealer's temporary license plates if that dealer is: (1) a franchised dealership subject to a buy-sell agreement, regardless of a change in the entity of ownership; (2) any type of dealer that is relocating and has been licensed by the department for a period of one year or longer; or (3) any type of dealer that is changing its business entity type and has been licensed by the department for a period of one year or longer. (e) A dealer may obtain more than the maximum number of dealer's temporary license plates provided by this section by submitting to the department proof of sales for the previous 12-month period that justifies additional license plates. (1) The number of additional dealer's temporary license plates the department will issue to a dealer that demonstrates need through proof of sales is indicated in the following table. Attached Graphic(2) For purposes of this section, proof of sales for the previous 12-month period may consist of a copy of the most recent vehicle inventory tax declaration or monthly statements filed with the taxing authority in the county of the dealer's licensed location. Each copy must be stamped as received by the taxing authority.(f) A wholesale motor vehicle dealer may obtain more than the maximum number of dealer's temporary license plates provided by this section by submitting to the department proof of the number of vehicles the dealer has purchased in the previous 12-month period that justifies additional license plates. (1) Evidence of the wholesale motor vehicle dealer's vehicle purchases for the previous 12-month period must include the date of purchase, VIN of the vehicle purchased, and the selling dealer's name, and any other information the department in its discretion deems necessary to determine the need for additional dealer's temporary license plates for the wholesale motor vehicle dealer. (2) Upon review and approval of a wholesale motor vehicle dealer's proof of vehicle purchases documentation, the department shall issue up to 5 additional dealer's temporary license plates to the dealer. (g) The Director of the Motor Vehicle Division may waive the dealer's temporary license plate issuance restrictions if the waiver is essential for the continuation of the business. The director will determine the number of dealer's temporary license plates the department will issue based on the dealer's past sales, dealer's inventory, and any other factor the Director determines pertinent. (1) A request for a waiver must be submitted to the director in writing and specifically state why the additional dealer's temporary license plates are necessary for the continuation of the dealer's business. (2) A request for a waiver must be accompanied by proof of the dealer's sales for the previous 12-month period, if applicable.</content><note type="source"><p>Source Note: The provisions of this §215.154 adopted to be effective July 1, 2025, 49 TexReg 8953.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scD/s215.155"><num value="215.155">§215.155</num><heading>Buyer's License Plates</heading><content>(a) A dealer may issue and secure a buyer's license plate or a buyer's temporary license plate only on a vehicle:(1) from the selling dealer's inventory;(2) that can be legally operated on the public streets and highways;(3) for which a sale or lease has been consummated; and(4) that has a valid inspection in accordance with Transportation Code Chapter 548, unless:(A) an inspection is not required under Transportation Code §503.063(i) or (j); or(B) the vehicle is exempt from inspection under Chapter 548.(b) A dealer may not issue a buyer's general issue or temporary license plate to the buyer of a vehicle that is to be titled but not registered.(c) For a wholesale transaction, a dealer may not issue a buyer's license plate; rather the purchasing dealer places on the motor vehicle its own:(1) dealer's temporary license plate; or(2) dealer's standard or personalized prestige license plate. (d) A buyer's temporary license plate is valid until the earlier of:(1) the date on which the vehicle is registered; or(2) the 60th day after the date of purchase.(e) A dealer shall charge a buyer a fee of $10, unless the vehicle is exempt from payment of registration fees under Transportation Code, §502.453 or §502.456. A dealer shall remit the fee to the county with the title transfer application for deposit to the credit of the Texas Department of Motor Vehicles fund. If the vehicle is sold by a dealer to an out-of-state resident:(1) the dealer shall remit the entire fee to the department for deposit to the credit of the Texas Department of Motor Vehicles fund if payment is made through the department's designated electronic system; or(2) the dealer shall remit the fee to the county for deposit to the credit of the Texas Department of Motor Vehicles fund.(f) A governmental agency may charge a buyer a fee of $10 unless the vehicle is exempt from payment of registration fees under Transportation Code, §502.453 or §502.456. If collected by a governmental agency, the fee must be sent to the county for deposit to the credit of the Texas Department of Motor Vehicles fund.</content><note type="source"><p>Source Note: The provisions of this §215.155 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 28, 2017, 42 TexReg 3274; amended to be effective November 4, 2018, 43 TexReg 7720; amended to be effective October 21, 2020, 45 TexReg 7441; amended to be effective January 27, 2022, 47 TexReg 662; amended to be effective June 1, 2024, 49 TexReg 2704; amended to be effective July 1, 2025, 49 TexReg 8953; amended to be effective October 9, 2025, 50 TexReg 6506.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scD/s215.156"><num value="215.156">§215.156</num><heading>Buyer's License Plate Receipt</heading><content>A dealer or governmental agency must print a buyer's license plate receipt from the department's designated electronic system and provide the receipt to the buyer of each vehicle for which a buyer's license plate or buyer's temporary license plate is issued. The dealer or governmental agency, shall instruct the buyer to keep a copy of the buyer's license plate receipt in the vehicle until the vehicle is registered in the buyer's name and the vehicle registration insignia is affixed to the motor vehicle windshield or plate, as applicable. The buyer's license plate receipt must include the following information:(1) the issue date of the buyer's license plate or buyer's temporary license plate;(2) the year, make, model, body style, color, and VIN of the vehicle sold;(3) the license plate number;(4) the date of the sale;(5) the name of the issuing dealer and the dealer's license number or the name of the issuing federal, state, or local governmental agency;(6) the buyer's name and mailing address; and(7) if the vehicle is to be registered in Texas, the procedure by which the vehicle's registration insignia will be provided to the buyer as required under Transportation Code, §503.0631.</content><note type="source"><p>Source Note: The provisions of this §215.156 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective October 21, 2020, 45 TexReg 7441; amended to be effective July 1, 2025, 49 TexReg 8953.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scD/s215.157"><num value="215.157">§215.157</num><heading>Issuing Buyer's License Plates and License Plate Receipts When Internet Not Available</heading><content>In accordance with Transportation Code, §503.0631(d), if a dealer or governmental agency is unable to access the internet at the time of a sale, the dealer or governmental agency must document the issuance of a buyer's license plate or a buyer's temporary license plate on a receipt form prescribed by the department and enter the required information regarding the sale in the license plate system not later than the close of the next business day. The buyer's receipt must include a statement that the dealer or governmental agency, has internet access but, at the time of the sale, the dealer or governmental agency, was unable to access the internet or the license plate system and meet the requirements in §215.156 of this title (relating to Buyer's License Plate Receipt).</content><note type="source"><p>Source Note: The provisions of this §215.157 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective October 21, 2020, 45 TexReg 7441; amended to be effective July 1, 2025, 49 TexReg 8953.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scD/s215.158"><num value="215.158">§215.158</num><heading>General Requirements for Buyer's License Plates</heading><content>(a) A dealer or governmental agency is responsible for the safekeeping of all license plates in the dealer's or governmental agency's possession consistent with the requirements in §215.150 of this title (relating to Dealer Authorization to Issue License Plates). A dealer or governmental agency shall report any loss, theft, or destruction of a buyer's license plate or buyer's temporary license plate to the department in the system designated by the department within 24 hours of discovering the loss, theft, or destruction. (b) When a dealer is required to void a previously assigned buyer's license plate or other type of license plate from a vehicle, the dealer shall render a void plate unusable by permanently marking the front of the plate with the word "VOID" or a large "X"; and within 10 days:(1) destroy the license plate;(2) recycle the license plate using a metal recycler registered under Occupations Code, Chapter 1956; or (3) return the license plate to the department or county tax assessor-collector.(c) A dealer or governmental agency must return all license plates in the dealer's possession to the department within 10 days of closing the associated license or within 10 days of the associated license being revoked, canceled, or closed by the department.</content><note type="source"><p>Source Note: The provisions of this §215.158 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective October 6, 2013, 38 TexReg 6646; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective October 21, 2020, 45 TexReg 7441; amended to be effective February 14, 2022, 47 TexReg 954; amended to be effective July 1, 2025, 49 TexReg 8953; amended to be effective October 9, 2025, 50 TexReg 6506.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scD/s215.160"><num value="215.160">§215.160</num><heading>Duty to Identify Motor Vehicles Offered for Sale as Rebuilt</heading><content>(a) For each motor vehicle a dealer displays or offers for retail sale and which the dealer knows has been a salvage motor vehicle as defined by Transportation Code, §501.091(15) and has subsequently been issued a title, a dealer shall disclose in writing that the motor vehicle has been repaired, rebuilt, or reconstructed. The written disclosure must:(1) be visible from outside of the motor vehicle; and(2) contain lettering that is reasonable in size, stating as follows: "This motor vehicle has been repaired, rebuilt or, reconstructed after formerly being titled as a salvage motor vehicle."(b) Upon the sale of a motor vehicle which has been a salvage motor vehicle as defined by Transportation Code, §501.091(15) and subsequently issued a title, a dealer shall obtain the purchaser's signature on the vehicle disclosure form or on an acknowledgement written in fourteen point or larger font that states as follows: "I, (name of purchaser), acknowledge that at the time of purchase, I am aware that this vehicle has been repaired, rebuilt, or reconstructed and was formerly titled as a salvage motor vehicle." (c) The purchaser's acknowledgement as required in subsection (b) of this section may be incorporated in a Buyer's Order, a Purchase Order, or other disclosure document. This disclosure requires a separate signature.(d) An original signed acknowledgement or vehicle disclosure form required by subsection (b) of this section must be given to the purchaser and a copy of the signed acknowledgement or vehicle disclosure form shall be retained by the dealer in the records of motor vehicles sales required by §215.144 of this title (relating to Vehicle Records). If the acknowledgement is incorporated in a Buyer's Order, a Purchase Order, or other disclosure document, a copy of that document must be given to the purchaser and a copy retained in the dealer's records in accordance with §215.144.(e) This section does not apply to a wholesale motor vehicle auction.</content><note type="source"><p>Source Note: The provisions of this §215.160 adopted to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704; amended to be effective November 14, 2024, 49 TexReg 8953.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scD/s215.161"><num value="215.161">§215.161</num><heading>Licensing Education Course Requirements</heading><content>(a) A motor vehicle dealer licensing education course provider must be a Texas institution of higher education, as defined by Education Code, §61.003, or a motor vehicle trade association domiciled in this state.(b) The licensing education course must be approved by the department and must include information on the laws and rules applicable to motor vehicle dealers and the consequences of violating those laws and rules.(c) The licensing education course must consist of at least 6 hours of online instruction for new applicants and 3 hours of online instruction for renewal applicants.(d) The cost for the licensing education course must not exceed $150 per person. A trade association course provider may not charge a different rate to a nonmember.(e) The course provider must issue a certificate of completion to each person who successfully completes the licensing education course.(f) The dealer training provided by the department is not an approved licensing education course under this section.</content><note type="source"><p>Source Note: The provisions of this §215.161 adopted to be effective March 1, 2020, 45 TexReg 1225; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scD/s215.162"><num value="215.162">§215.162</num><heading>Catalytic Converter Record Requirements</heading><content>A dealer that repairs a motor vehicle with a catalytic converter shall:(1) comply with the recordkeeping requirements in Occupations Code, Chapter 2305, Subchapter D; and(2) allow the department to inspect these records during business hours.</content><note type="source"><p>Source Note: The provisions of this §215.162 adopted to be effective November 14, 2024, 49 TexReg 8953.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scD/s215.163"><num value="215.163">§215.163</num><heading>License Plate Disposition for Motor Vehicles Sold at Auction or on Consignment</heading><content>(a) Wholesale motor vehicle auctions. A wholesale motor vehicle auction GDN holder who receives a consignment and delivery of a motor vehicle from a person who is not a GDN holder for the purpose of sale at auction shall:(1) remove and mark any license plate as void; and(2) destroy, recycle, or return any license plate as required in §215.158 of this title (relating to General Requirements for Buyer's License Plates). (b) Public auctions.(1) Before offering a consigned vehicle for sale at a public auction, a dealer must remove any license plate and return the license plate to the vehicle's owner or destroy, recycle, or return the license plate in accordance with §215.158 of this title. (2) If the purchaser at a public auction is a Texas retail buyer, a dealer shall issue a buyer's license plate to the purchaser, unless the buyer has a general issue, specialty, personalized, or other qualifying license plate to transfer, and update the license plate database in accordance with §215.151 of this title (relating to License Plate General Use Requirements).(3) If the purchaser at the public auction is a dealer, export buyer, or out-of-state buyer, the selling dealer shall not issue a buyer's license plate.(4) Notwithstanding §215.150(c) of this title (relating to Dealer Authorization to Issue License Plates), if the purchaser at a public auction is an out-of-state buyer, the dealer shall issue a buyer's temporary license plate only if the purchaser requires this license plate to transport the vehicle to another state in which the vehicle will be titled and registered in accordance with the laws of that state.(c) Other consignment sales.(1) Before offering for sale a consigned motor vehicle with a license plate owned by a person who is not a GDN holder, the dealer shall remove and return the license plate to the vehicle's owner. The dealer to whom the vehicle is consigned may use its dealer's temporary license plate to demonstrate the consigned motor vehicle to a potential purchaser.(2) Upon the sale of a consigned motor vehicle owned by a person who is not a GDN holder:(A) a dealer shall issue a buyer's license plate to a Texas retail buyer who purchases the consigned vehicle, unless the buyer has a general issue, specialty, personalized, or other qualifying license plate to transfer, and update the license plate database in accordance with §215.151 of this title;(B) a dealer shall not issue a buyer's license plate if the purchaser of the consigned vehicle is a dealer, export buyer, or out-of-state buyer; and(C) notwithstanding §215.150(c) of this title, if the purchaser of a consigned vehicle is an out-of-state buyer, the dealer shall issue a buyer's temporary license plate only if the purchaser requires this license plate to transport the vehicle to another state in which the vehicle will be titled and registered in accordance with the laws of that state. (3) An independent motor vehicle dealer who receives consignment and delivery of a salvage vehicle or total loss vehicle (as defined by the applicable insurance contract) for sale from a person who is not a GDN holder shall remove any license plate and destroy, recycle, or return the license plate as required in §215.158 of this title.</content><note type="source"><p>Source Note: The provisions of this §215.163 adopted to be effective October 9, 2025, 50 TexReg 6506.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c215/scE"><num value="E">SUBCHAPTER E</num><heading>LESSORS AND LEASE FACILITATORS</heading><section identifier="/us/state/tx/tac/t43/p10/c215/scE/s215.171"><num value="215.171">§215.171</num><heading>Purpose and Scope</heading><content>This subchapter implements Occupations Code, Chapter 2301 specifically, §§2301.251, 2301.253, 2301.254, 2301.261, 2301.262, 2301.357, and Subchapter L. Vehicle Lessors and Vehicle Lease Facilitators, and Transportation Code Chapters 1001 - 1005.</content><note type="source"><p>Source Note: The provisions of this §215.171 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scE/s215.173"><num value="215.173">§215.173</num><heading>License</heading><content>(a) No person may engage in business as a vehicle lessor or a vehicle lease facilitator unless that person holds a valid license issued by the department or is exempt from obtaining such a license under Occupations Code §2301.254.(b) Any person who facilitates vehicle leases on behalf of a vehicle lease facilitator must:(1) be on the vehicle lease facilitator's payroll and receive compensation from which social security, federal unemployment tax, and all other appropriate taxes are withheld from the representative's paycheck and paid to the proper taxing authority; and(2) have work details such as when, where, and how the final results are achieved, directed, and controlled by the vehicle lease facilitator.</content><note type="source"><p>Source Note: The provisions of this §215.173 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scE/s215.174"><num value="215.174">§215.174</num><heading>Application for a License</heading><content>(a) An applicant for a vehicle lessor's or vehicle lease facilitator's license shall submit a sufficient application to the department as required under §215.83 of this title (relating to License Applications, Amendments, or Renewals). To be sufficient, the application must be on a form prescribed by the department, accompanied by all required supporting documentation, and required fees, and submitted to the department electronically in the licensing system designated by the department.(b) A license holder renewing or amending a license must verify current license information, provide related information and documents for any new requirements or changes to the license, and pay required fees.(c) An applicant for a new license must register for an account in the department-designated licensing system by selecting the licensing system icon on the dealer page of the department website. An applicant must designate the account administrator and provide the name and email address for that person, and provide the business telephone number, name, business type, and social security number or employer identification number, as applicable. The applicant's licensing account administrator must be an owner, officer, manager, or bona fide employee.(d) Once registered, an applicant may apply for a new license and must provide the following:(1) type of license requested;(2) business information, including the name, physical and mailing addresses, telephone number, Secretary of State file number, as applicable, and website address, as applicable;(3) contact name, email address, and telephone number of the person submitting the application;(4) contact name, email address, and telephone number of a person who can provide information about business operations and the motor vehicle services offered;(5) the name, social security number, date of birth, identity document information, and ownership percentage for each owner, partner, member, beneficiary, or principal if the applicant is not a publicly traded company;(6) the name, social security number, date of birth, and identity document information for each officer, director, manager, trustee, or other representative authorized to act on behalf of the applicant if the applicant is owned in full or in part by a legal entity;(7) the name, employer identification number, ownership percentage, and non-profit or publicly traded status for each legal entity that owns the applicant in full or in part;(8) criminal history record information under the laws of Texas, another state in the United States, the United States, and any foreign jurisdiction for each person listed in the application, including offense description, date, and location;(9) military service status;(10) licensing history required to evaluate fitness for licensure under §215.89 of this title (relating to Fitness);(11) signed Certification of Responsibility, which is a form provided by the department; and(12) any other information required by the department to evaluate the application under current law and board rules.(e) The supporting documentation for a vehicle lessor's license application must include a legible and accurate electronic image of each applicable required document:(1) Certificate of incorporation, registration, or formation filed with the Texas Secretary of State;(2) one of the following current identity documents for each natural person listed in the application:(A) driver license;(B) Texas Identification Card issued by the Texas Department of Public Safety under Transportation Code Chapter 521, Subchapter E;(C) license to carry a handgun issued by the Texas Department of Public Safety under Government Code Chapter 411, Subchapter H;(D) passport; or(E) United States military identification card;(3) a copy of each assumed name certificate on file with the appropriate recording entity, such as the Office of the Secretary of State or the county clerk;(4) a sample copy of the vehicle lease agreement between the vehicle lessor and a lessee;(5) a sample copy of the required fee disclosure statement regarding fees paid by the vehicle lessor to a vehicle lease facilitator for the facilitation of a vehicle lease or a statement that no such fees were or will be paid;(6) a list including the business name(s), DBA(s), and addresses of lease facilitators with whom the applicant conducts or intends to conduct business;(7) a list of other satellite offices that conduct business in the State of Texas that includes the address, phone number, and name of the contact person for each location;(8) if a vehicle lessor does not deal directly with the public to execute vehicle leases and has a licensed location in another state, a vehicle lessor must provide the jurisdiction name, licensed business address, and license number for each location that leases a motor vehicle to a Texas resident; and(9) any other information required by the department to evaluate the application under current law and board rules.(f) The supporting documentation for a vehicle lease facilitator's license application must include a legible and accurate electronic image of each applicable required document:(1) Certificate of incorporation, registration, or formation filed with the Texas Secretary of State;(2) one of the following unexpired identity documents for each natural person listed in the application:(A) driver license;(B) Texas Identification Card issued by the Texas Department of Public Safety under Transportation Code Chapter 521, Subchapter E;(C) license to carry a handgun issued by the Texas Department of Public Safety under Government Code Chapter 411, Subchapter H;(D) passport; or(E) United States military identification card;(3) a copy of each assumed name certificate on file with the appropriate recording entity, such as the Office of the Secretary of State or the county clerk;(4) a sample copy of the vehicle lease agreement between each of the lessors the lease facilitator represents, and the lessee;(5) a sample copy of the required fee disclosure statement regarding fees paid by a vehicle lessor to the vehicle lease facilitator for the facilitation of a vehicle lease or a statement that no such fees were or will be paid;(6) a list of all vehicle lessors, including names and addresses, for whom any vehicle lease facilitator solicits or procures a lessee;(7) a copy of the representation agreement between the vehicle lease facilitators and each lessor; and(8) any other information required by the department to evaluate the application under current law and board rules.(g) An applicant operating under a name other than the applicant's business name shall use the name under which the applicant is authorized to do business, as filed with the Secretary of State or county clerk, and the assumed name of such legal entity shall be recorded by the applicant on the application using the letters "DBA." The applicant may not use a name or assumed name that may be confused with or is similar to that of a governmental entity or that is otherwise deceptive or misleading to the public.(h) During the term of a license, a vehicle lessor must add, delete, or update the previously submitted list of lease facilitators and a lease facilitator must add, delete, or update the previously submitted list of new vehicle lessors within 10 days by electronically submitting a license amendment in the licensing system designated by the department.</content><note type="source"><p>Source Note: The provisions of this §215.174 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective August 2, 2012, 37 TexReg 5637; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scE/s215.175"><num value="215.175">§215.175</num><heading>Sanctions</heading><content>(a) The board or department may:(1) deny a vehicle lessor or vehicle lease facilitator application;(2) revoke or suspend a vehicle lessor or vehicle lease facilitator license; or(3) assess a civil penalty or take other action on a vehicle lessor or vehicle lease facilitator applicant or license holder, or a person engaged in business for which a vehicle lessor or vehicle lease facilitator license is required.(b) The board or department may take action described in subsection (a) of this section if a vehicle lessor or vehicle lease facilitator applicant or license holder, or a person engaged in business for which a vehicle lessor or vehicle lease facilitator license is required:(1) fails to maintain an established and permanent place of business required by §215.177 of this title (relating to Established and Permanent Place of Business);(2) fails to maintain records required under this subchapter;(3) refuses or fails to comply with a request by a representative of the department to examine during the vehicle lessor's or vehicle lease facilitator's posted business hours at the vehicle lessor's or vehicle lease facilitator's licensed location:(A) a vehicle leasing record required to be maintained by §215.178 of this title (relating to Records Required for Vehicle Lessors and Vehicle Lease Facilitators);(B) ownership papers for a vehicle owned, leased, or under that vehicle lessor's or vehicle lease facilitator's control; or(C) evidence of ownership or a current premises lease agreement for the property upon which the business is located;(4) refuses or fails to timely comply with a request for records made by a representative of the department;(5) fails to notify the department in writing by electronically submitting a license amendment in the licensing system designated by the department within 10 days of a change of the vehicle lessor or vehicle lease facilitator license holder's:(A) mailing address;(B) physical address;(C) telephone number; or(D) email address;(6) fails to notify the department in writing by electronically submitting a license amendment in the licensing system designated by the department within 10 days of a change of the vehicle lessor or vehicle lease facilitator license holder's name, assumed name, management, or ownership;(7) fails to comply with the fee restrictions or other requirements under Occupations Code, §2301.357 or Chapter 2301, Subchapter L. Vehicle Lessors and Vehicle Lease Facilitators;(8) fails to maintain advertisement records or otherwise fails to comply with the advertising requirements of:(A) §215.178; or(B) Subchapter F of this chapter (relating to Advertising);(9) violates any law relating to the sale, lease, distribution, financing, or insuring of motor vehicles;(10) is convicted of an offense that, in accordance with Occupations Code, Chapter 53 and with §211.3 of this title (relating to Criminal Offense Guidelines), directly relates to the duties or responsibilities of the licensed occupation;(11) is determined by the board or department, in accordance with §215.89 of this title (relating to Fitness), to be unfit to hold a vehicle lessor or vehicle lease facilitator license;(12) uses or allows use of a vehicle lessor or vehicle lease facilitator license in violation of any law or for the purpose of avoiding any provision of Occupations Code, Chapter 2301; or(13) omits material information or makes a material misrepresentation in any application or other documentation filed with the department including providing a false or forged identity document or a false or forged photograph, electronic image, or other document.(c) The board or department may take action on a vehicle lessor's license or assess civil penalties for the vehicle lessor's failure to notify the department in writing by electronically submitting a license amendment in the licensing system designated by the department within 10 days of any change, addition, or deletion to the list of vehicle lease facilitators with whom the vehicle lessor conducts business, including any change to a vehicle lease facilitator's mailing address, physical address, telephone number, or email address.(d) The board or department may take action on a vehicle lease facilitator's license or assess civil penalties for the failure to notify the department in writing within 10 days by electronically submitting a license amendment in the licensing system designated by the department of any change, addition, or deletion to the list of vehicle lessors for whom the vehicle lease facilitator conducts business, including any change to a vehicle lessor's mailing address, physical address, telephone number, or email address.(e) The board or department may take action on a vehicle lessor's or vehicle lease facilitator's license if the vehicle lessor or vehicle lease facilitator accepts a fee from a dealer, directly or indirectly, for referring a customer who purchases or considers purchasing a motor vehicle.</content><note type="source"><p>Source Note: The provisions of this §215.175 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scE/s215.176"><num value="215.176">§215.176</num><heading>More Than One Business Location</heading><content>(a) A vehicle lease facilitator must be licensed separately for each business location.(b) A vehicle lessor or vehicle lease facilitator that relocates from a point outside the limits of a municipality or relocates to a point not within the limits of the same municipality of the initial business location must obtain a new license.(c) A vehicle lessor is required to obtain a license for the vehicle lessor's primary location. A vehicle lessor must provide the address, telephone number, and the name of a contact person for all other satellite offices that conduct business in the state of Texas.</content><note type="source"><p>Source Note: The provisions of this §215.176 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scE/s215.177"><num value="215.177">§215.177</num><heading>Established and Permanent Place of Business Premises Requirements</heading><content>(a) A vehicle lessor or vehicle lease facilitator operating within Texas must meet the following requirements at each location where vehicles are leased or offered for lease.(1) Physical location requirements.(A) A vehicle lessor or vehicle lease facilitator operating within Texas must be open to the public. The vehicle lessor's or vehicle lease facilitator's business hours for each day of the week must be posted at the main entrance of the office. The business telephone must be answered from 8:00 a.m. to 5:00 p.m. weekdays by a bona fide employee, owner, answering service, voicemail service, or answering machine. A caller must be able to speak to a natural person or leave a message during these hours. The owner or an employee of the vehicle lessor or vehicle lease facilitator must be at the location during the posted business hours for the purpose of leasing vehicles. In the event the owner or an employee is not available to conduct business during the posted business hours, a separate sign must be posted indicating the date and time such owner or employee will resume vehicle leasing operations.(B) A vehicle lessor's or vehicle leasing facilitator's office structure must be of sufficient size to accommodate the following required equipment:(i) a desk and two chairs from which the vehicle lessor or vehicle lease facilitator transacts business;(ii) a working telephone number listed in the business name or assumed name under which the vehicle lessor or vehicle lease facilitator conducts business; and(iii) internet access.(C) A vehicle lessor or vehicle lease facilitator that files an application for a new license or a vehicle lessor that files an application for a satellite location must comply with the following requirements:(i) The office must be located in a building with a permanent roof and connecting exterior walls on all sides.(ii) The office must comply with all applicable local zoning ordinances and deed restrictions.(iii) The office may not be located within a residence, apartment, hotel, motel, or rooming house or building not open to the public.(iv) The physical address of the office must be recognized by the U.S. Postal Service, capable of receiving U.S. mail, and have an assigned emergency services property address.(v) The office may not be virtual or provided by a subscription for office space or office services. Access to office space or office services is not considered an established and permanent location.(D) A portable-type office structure may qualify as an office only if the structure meets the requirements of this section and is not a readily moveable trailer or other vehicle.(E) One or more licensed vehicle lessors or vehicle lease facilitators, or a combination of one or more licensed vehicle lessors and vehicle lease facilitators may occupy the same business structure and conduct vehicle leasing operations in accordance with the license held by the vehicle lessor or licensed vehicle lease facilitator. Each vehicle lessor or vehicle lease facilitator must have:(i) a separate desk from which that vehicle lessor or vehicle lease facilitator transacts business;(ii) a separate working telephone number listed in the vehicle lessor or vehicle lease facilitator's business name or assumed name;(iii) a separate right of occupancy that meets the requirements of this section; and(iv) a vehicle lessor or vehicle lease facilitator license issued by the department in the name of the vehicle lessor or vehicle lease facilitator.(F) A vehicle lease facilitator's established and permanent place of business must be physically located within Texas.(2) Business Sign requirements. A vehicle lessor or vehicle lease facilitator shall display a conspicuous and permanent business sign at the licensed location showing the name under which the vehicle lessor or vehicle lease facilitator conducts business. Outdoor business signs must contain letters that are at least six inches in height. The business name or assumed name on the sign must be substantially similar to the name reflected on the license issued by the department. A business sign is considered conspicuous if it is easily visible to the public within 100 feet of the main entrance of the business office. A business sign is considered permanent only if it is made of durable, weather-resistant material.(3) Premises lease requirements. If the premises from which a licensed vehicle lessor or vehicle lease facilitator conducts business is not owned by the license holder, the license holder must maintain for the licensed location a valid premises lease that is continuous during the period of time for which the vehicle lessor's or vehicle lease facilitator's license will be issued. The premises lease agreement must be on a properly executed form containing at a minimum:(A) the name of the property owner of the premises and the name of the vehicle lease facilitator as the tenant or lessee of the premises;(B) the street address or legal description of the property, provided that if only a legal description of the property is included, the applicant must attach a statement that the property description in the lease agreement is the street address identified on the application as the physical address for the established and permanent place of business;(C) the signature of the property owner as the lessor and the signature of the applicant or holder as the tenant or lessee;(D) the period of time for which the premises lease is valid; and(E) if the lease agreement is a sublease in which the property owner is not the lessor, the applicant or holder must also obtain a signed and notarized statement from the property owner including the following information:(i) property owner's full name, email address, mailing address, and phone number; and(ii) property owner's statement confirming that the license holder is authorized to sublease the location and may operate a motor vehicle leasing business from the location.(b) A vehicle lessor or vehicle lease facilitator shall be independent of financial institutions and dealerships in location and in business activities, unless that vehicle lessor or vehicle lease facilitator is an:(1) employee or legal subsidiary of the financial institution or dealership; or(2) entity wholly owned by the financial institution or dealership.(c) For purposes of this section, an employee is a person who meets the requirements of §215.173(b) of this title (relating to License).</content><note type="source"><p>Source Note: The provisions of this §215.177 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective August 2, 2012, 37 TexReg 5637; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scE/s215.178"><num value="215.178">§215.178</num><heading>Records Required for Vehicle Lessors and Vehicle Lease Facilitators</heading><content>(a) Vehicle purchase, leasing, and sales records. A vehicle lessor or vehicle lease facilitator shall maintain a complete record of all vehicle purchases, leases, and sales of leased vehicles for at least one year after the expiration of the vehicle lease.(1) Complete records reflecting vehicle lease transactions that occurred within the preceding 24 months must be maintained at the licensed location. Records for prior time periods may be kept off-site.(2) Within 15 days of receipt of a department records request, a vehicle lessor or vehicle lease facilitator shall deliver a copy of the specified records to the address listed in the request.(b) Content of records for lease transaction. A complete record for a vehicle lease transaction must contain:(1) the name, address, and telephone number of the vehicle lessor;(2) the name, mailing address, physical address, and telephone number of each vehicle lessee;(3) the name, address, telephone number, and license number of the lease facilitator;(4) the name, work address, and telephone number of each employee of the vehicle lease facilitator that handled the transaction;(5) a complete description of the vehicle involved in the transaction, including the VIN;(6) the name, address, telephone number, and GDN of the dealer selling the vehicle, as well as the franchised dealer's license number if the vehicle is a new motor vehicle;(7) the amount of fee paid to the vehicle lease facilitator or a statement that no fee was paid;(8) a copy of the buyer's order and sales contract for the vehicle;(9) a copy of the vehicle lease contract;(10) a copy of all other contracts, agreements, or disclosures between the vehicle lease facilitator and the consumer lessee; and(11) a copy of the front and back of the manufacturer's statement of origin, manufacturer's certificate of origin, or the title of the vehicle, as applicable.(c) Content of records for sale of leased vehicle. A vehicle lessor's complete record for each vehicle sold at the end of a lease to a lessee, a dealer, or at a wholesale motor vehicle auction must contain:(1) the date of the purchase;(2) the date of the sale;(3) the VIN;(4) the name and address of the person selling the vehicle to the vehicle lessor;(5) the name and address of the person purchasing the vehicle from the vehicle lessor;(6) except for a purchase or sale where the Tax Code does not require payment of motor vehicle sales tax, a tax assessor-collector receipt marked paid;(7) a copy of all documents, forms, and agreements applicable to a particular sale, including a copy of:(A) the title application;(B) the work-up sheet;(C) the front and back of manufacturer's certificate of origin or manufacturer's statement of origin, unless the title is obtained through webDEALER as defined in §217.71 of this title (relating to Automated and Web-Based Vehicle Registration and Title Systems);(D) the front and back of the title, unless the title is obtained through webDEALER as defined in §217.71 of this title;(E) the factory invoice;(F) the sales contract;(G) the retail installment agreement;(H) the buyer's order;(I) the bill of sale;(J) any waiver;(K) any other agreement between the seller and purchaser; and(L) the purchaser's photo identification if sold to a lessee;(8) a copy of the original manufacturer's certificate of origin, original manufacturer's statement of origin, or title for a motor vehicle offered for sale, or a properly stamped original manufacturer's certificate of origin, original manufacturer's statement of origin, or original title for a title transaction entered by a dealer into webDEALER as defined in §217.71 of this title;(9) the monthly Motor Vehicle Seller Financed Sales Returns, if any; and(10) if the vehicle sold is a motor home or a towable recreational vehicle subject to inspection under Transportation Code, Chapter 548, a copy of the written notice provided to the buyer at the time of the sale, notifying the buyer that the vehicle is subject to inspection requirements.(d) Records of advertising. A vehicle lessor or vehicle lease facilitator shall maintain a copy of all advertisements, brochures, scripts, or an electronically reproduced copy in whatever medium appropriate, of promotional materials for a period of at least 18 months. Each copy is subject to inspection upon request by the department at the business location during posted business hours.(1) A vehicle lessor and a vehicle lease facilitator shall comply with all federal and state advertising laws and regulations, including Subchapter F of this chapter (relating to Advertising).(2) A vehicle lessor's or vehicle lease facilitator's advertising or promotional materials may not state or infer, either directly or indirectly, that the business involves the sale of new motor vehicles.(e) Title assignments. Each certificate of title, manufacturer's certificate of origin, or other evidence of ownership for a vehicle that has been acquired by a vehicle lessor for lease must be properly assigned from the seller in the vehicle lessor's name.(f) Letters of representation or appointment. A letter of representation or appointment between a vehicle lessor and a vehicle lease facilitator must be executed by both parties and maintained by each party.(g) Electronic records. Any record required to be maintained by a vehicle lessor or vehicle lease facilitator may be maintained in an electronic format, provided the electronic record can be printed at the licensed location or sent electronically upon department request except as provided by subsection (c)(8) of this section.</content><note type="source"><p>Source Note: The provisions of this §215.178 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704; amended to be effective November 14, 2024, 49 TexReg 8953.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scE/s215.179"><num value="215.179">§215.179</num><heading>Change of Vehicle Lessor or Vehicle Lease Facilitator Status</heading><content>(a) Change of ownership. A vehicle lessor or vehicle lease facilitator that sells or assigns to another any interest in the licensed entity, whether a corporation or otherwise, provided the physical location of the licensed entity remains the same, shall notify the department in writing within 10 days by filing an application to amend the license in the electronic licensing system designated by the department. If the sale or assignment of any portion of the business results in a change of entity, then the purchasing or assignee entity must apply for and obtain a new license by submitting a new license application in the electronic licensing system designated by the department. A publicly held corporation licensed as a vehicle lessor or vehicle lease facilitator needs only inform the department of a change in ownership if one person or entity acquires 10% or greater interest in the licensed entity by submitting a license amendment application in the electronic licensing system designated by the department.(b) Change of operating status of business location. A license holder shall obtain department approval prior to opening a satellite location or relocating an existing location, in accordance with §215.176 of this title (relating to More than One Business Location) by electronically submitting a new license application in the licensing system designated by the department and receiving electronic notice of approval prior to relocating or opening a satellite location. A license holder shall notify the department when closing an existing location or a satellite location by electronically submitting a license amendment to close the license or close the satellite location in the licensing system designated by the department.</content><note type="source"><p>Source Note: The provisions of this §215.179 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scE/s215.180"><num value="215.180">§215.180</num><heading>Required Notices to Lessees</heading><content>Vehicle lessors and vehicle lease facilitators shall provide notice of the complaint procedures provided by Occupations Code, §2301.204 and Subchapter M (relating to Warranties: Rights of Vehicle Owners), to each lessee of a new motor vehicle with whom they enter into a vehicle lease.</content><note type="source"><p>Source Note: The provisions of this §215.180 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scE/s215.181"><num value="215.181">§215.181</num><heading>General Distinguishing Number Exception</heading><content>A licensed vehicle lessor is not required to hold a GDN in order to sell a motor vehicle that the vehicle lessor owns to the lessee or to a duly licensed dealer, either directly or through a licensed wholesale motor vehicle auction. A licensed vehicle lessor may not purchase a motor vehicle at a wholesale motor vehicle auction. Any existing GDN held by a vehicle lessor that does not otherwise qualify for a GDN shall be canceled. A vehicle lessor whose GDN has been canceled under this section may reapply for a GDN once all the qualifications for a GDN are met.</content><note type="source"><p>Source Note: The provisions of this §215.181 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c215/scF"><num value="F">SUBCHAPTER F</num><heading>ADVERTISING</heading><section identifier="/us/state/tx/tac/t43/p10/c215/scF/s215.241"><num value="215.241">§215.241</num><heading>Purpose and Scope</heading><content>This subchapter implements Occupations Code, Chapter 2301 by regulating the advertising of persons under the jurisdiction of the department by requiring truthful and accurate advertising practices for the benefit of the citizens of this state.</content><note type="source"><p>Source Note: The provisions of this §215.241 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scF/s215.242"><num value="215.242">§215.242</num><heading>General Prohibition</heading><content>A person advertising motor vehicles shall not use false, deceptive, unfair, or misleading advertising. In addition to a violation of a specific advertising rule, any other advertising or advertising practices found by the department to be false, deceptive, or misleading, whether herein described, shall be deemed a violation of Occupations Code, Chapter 2301 and shall also be deemed a violation of this rule.</content><note type="source"><p>Source Note: The provisions of this §215.242 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scF/s215.243"><num value="215.243">§215.243</num><heading>Specific Rules</heading><content>The violation of an advertising rule shall be considered by the department as a prima facie violation of Occupations Code, Chapter 2301.</content><note type="source"><p>Source Note: The provisions of this §215.243 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scF/s215.244"><num value="215.244">§215.244</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Advertisement--(A) An oral, written, graphic, or pictorial statement or representation made in the course of soliciting business, including, but not limited to a statement or representation:(i) made in a newspaper, magazine, or other publication;(ii) contained in a notice, sign, poster, display, circular, pamphlet, or letter;(iii) aired on the radio;(iv) broadcast on the internet or television; or(v) streamed via an online service.(B) Advertisement does not include direct communication between a person or person's representative and a prospective purchaser.(2) Advertising provision--(A) A provision of Occupations Code, Chapter 2301, relating to the regulation of advertising; or(B) A rule relating to the regulation of advertising, adopted pursuant to the authority of Occupations Code, Chapter 2301.(3) Bait advertisement--An alluring but insincere offer to sell or lease a product of which the primary purpose is to obtain a lead to a person interested in buying or leasing merchandise of the type advertised and to switch a consumer from buying or leasing the advertised product in order to sell or lease some other product at a higher price or on a basis more advantageous to the dealer.(4) Balloon payment--Any scheduled payment made as required by a consumer credit transaction that is more than twice as large as the average of all prior scheduled payments except the down payment.(5) Clear and conspicuous--The statement, representation, or term being disclosed is of such size, color, contrast, and audibility and is presented so as to be readily noticed and understood. All language and terms, including abbreviations, shall be used in accordance with their common or ordinary usage and meaning.(6) Dealership addendum--A form that is displayed on a window of a motor vehicle when a dealership installs special features, equipment, parts, or accessories, or charges for services not already compensated by the manufacturer or distributor for work required to prepare a motor vehicle for delivery to a buyer.(A) The purpose of the addendum is to disclose:(i) that it is supplemental;(ii) any added feature, service, equipment, part, or accessory, including the retail price, charged and added by the dealership;(iii) any additional charge to the selling price such as additional dealership markup; and(iv) the total dealer selling price.(B) The dealership addendum form shall not be deceptively similar in appearance to the Monroney label, as defined by paragraph (13) of this section.(7) Demonstrator--A new motor vehicle that is currently in the inventory of the automobile dealership and used primarily for test drives by customers and for other purposes designated by the dealership.(8) Disclosure--Required information that is clear, conspicuous, and accurate.(9) Distributor Suggested Retail Price (DSRP)--means the total price shown on the Monroney Label as specified by subparagraph (D)of paragraph (13) of this section.(10) Factory executive/official motor vehicle--A new motor vehicle that has been used exclusively by an executive or official of the dealer's franchising manufacturer, distributor, or their subsidiaries.(11) Limited rebate--A rebate that is not available to every consumer purchasing or leasing a motor vehicle because qualification for receipt of the rebate is conditioned or restricted in some manner. A rebate conditioned or restricted to purchasers who are residents of the contiguous United States is not a limited rebate.(12) Manufacturer's Suggested Retail Price (MSRP)--means the total price shown on the Monroney Label as specified by subparagraph (D) of paragraph (13) of this section.(13) Monroney Label--The label required by the Automobile Information Disclosure Act, 15 U.S.C. §§1231 - 1233, to be affixed to the windshield or side window of certain new motor vehicles delivered to the dealer and that contains information about the motor vehicle, including, but not limited to:(A) the retail price of the motor vehicle suggested by the manufacturer or distributor, as applicable;(B) the retail delivered price suggested by the manufacturer or distributor, as applicable, for each accessory or item of optional equipment, physically attached to the motor vehicle at the time of its delivery to a dealer, which is not included within the price of the motor vehicle as stated in subparagraph (A) of this paragraph;(C) the amount charged, if any, to a dealer for the transportation of the motor vehicle to the location at which it is delivered to the dealer; and(D) the total of the amounts specified pursuant to subparagraphs (A), (B), and (C) of this paragraph.(14) Online service--A network that connects computer users.(15) Rebate or cash back--A sum of money applied to the purchase or lease of a motor vehicle or refunded after full payment has been rendered for the benefit of the purchaser.(16) Savings claim or discount--An offer to sell or lease a motor vehicle at a reduced price, including, but not limited to, a manufacturer's or distributor's customer rebate, a dealer discount, or a limited rebate.(17) Subsequent violation--Conduct that is the same or substantially the same as conduct the department has previously alleged in a notice of an opportunity to cure to be a violation of an advertising provision.</content><note type="source"><p>Source Note: The provisions of this §215.244 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective June 4, 2014, 39 TexReg 4271; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scF/s215.245"><num value="215.245">§215.245</num><heading>Availability of Motor Vehicles</heading><content>(a) A dealer may advertise a specific new motor vehicle or line-make of vehicles for sale if the specific motor vehicle or line-make is in the possession of the dealer at the time the advertisement is placed.(b) If the specific motor vehicle or line-make is not in the possession of the dealer at the time the advertisement is placed, the dealer must clearly and conspicuously disclose that fact in the advertisement and state that the motor vehicle may be obtained from the manufacturer, distributor, or some other source. The advertisement must set forth the number of motor vehicles available at the advertised price, if a price is advertised, at the time the advertisement is placed or the dealer can show that it has the number of motor vehicles available to meet the reasonable expectable public demand based on prior experience.(c) If an advertised price pertains to only one specific motor vehicle, then the advertisement must also disclose the motor vehicle's stock number or VIN.(d) This section does not prohibit general advertising of motor vehicles by a manufacturer, dealer advertising association, or distributor, nor does it prohibit the inclusion of the names and addresses of the dealers selling such motor vehicles in the particular area.(e) A motor vehicle dealer may advertise a specific used motor vehicle for sale if:(1) the specific used motor vehicle is in the possession of the dealer at the time the advertisement is placed; and(2) the title certificate to the used motor vehicle has been assigned to the dealer.</content><note type="source"><p>Source Note: The provisions of this §215.245 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective June 4, 2014, 39 TexReg 4271; amended to be effective February 13, 2017, 42 TexReg 571.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scF/s215.246"><num value="215.246">§215.246</num><heading>Accuracy</heading><content>Advertisements shall be accurate, clear, and conspicuous. Advertisements shall not be false, deceptive, or misleading. For an internet advertisement, a disclosure may be considered accurate, clear, and conspicuous if:(1) the viewer highlights, hovers a mouse or cursor over, or otherwise selects certain text or images on a screen that results in an immediate and legible visible disclosure; or(2) only one click on select text or image(s) is required to view the disclosure; and(3) the internet advertisement clearly and conspicuously indicates where to hover or click for the disclosure and is in close proximity to the information being disclosed.</content><note type="source"><p>Source Note: The provisions of this §215.246 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective June 4, 2014, 39 TexReg 4271; amended to be effective February 13, 2017, 42 TexReg 571.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scF/s215.247"><num value="215.247">§215.247</num><heading>Untrue Claims</heading><content>The following statements are prohibited.(1) Statements such as "write your own deal," "name your own price," "name your own monthly payments," or statements with similar meaning.(2) Statements such as "everybody financed," "no credit rejected," "we finance anyone," and other similar statements representing or implying that no prospective credit purchaser will be rejected because of his inability to qualify for credit.(3) Statements representing that no other dealer grants greater allowances for trade-ins, however stated, unless the dealer can show such is the case.(4) Statements representing that because of its large sales volume, a dealer is able to purchase motor vehicles for less than another dealer selling the same make of motor vehicles, unless the dealer can show such is the case.</content><note type="source"><p>Source Note: The provisions of this §215.247 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scF/s215.248"><num value="215.248">§215.248</num><heading>Layout</heading><content>The layout, headlines, illustrations, or type size of a printed advertisement, an internet advertisement or an advertisement streamed via an online service, and the broadcast words or pictures of radio and television advertisements shall not convey or permit an erroneous or misleading impression as to which motor vehicle or vehicles are offered for sale or lease at featured prices. No advertised offer, expression, or display of price, terms, down payment, trade-in allowance, cash difference, savings, or other such material terms shall be misleading. Any necessary qualifications shall be clearly, conspicuously, and accurately set forth to prevent misunderstanding.</content><note type="source"><p>Source Note: The provisions of this §215.248 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scF/s215.249"><num value="215.249">§215.249</num><heading>Manufacturer's or Distributor's Suggested Retail Price</heading><content>(a) Except as provided by subsection (b) of this section, the suggested retail price of a new motor vehicle advertised by a manufacturer or distributor must include all costs and charges for the motor vehicle advertised.(b) The following costs and charges may be excluded if an advertisement described in subsection (a) of this section clearly and conspicuously states the costs and charges are excluded:(1) destination and dealer preparation charges;(2) registration, certificate of title, license fees, or an additional registration fee, if any;(3) taxes; and(4) other fees or charges that are allowed or prescribed by law.(c) Except as provided by this subsection, if the price of a motor vehicle is stated in an advertisement placed with local media in Texas by a manufacturer or distributor and the names of the local dealers for the motor vehicles advertised are included in that advertisement, then the price must include all costs and charges for the motor vehicle advertised, including destination and dealer preparation charges. The only costs and charges that may be excluded from the price are:(1) registration, certificate of title, license fees, or an additional registration fee, if any;(2) taxes; and(3) other fees or charges that are allowed or prescribed by law.</content><note type="source"><p>Source Note: The provisions of this §215.249 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scF/s215.250"><num value="215.250">§215.250</num><heading>Dealer Price Advertising; Savings Claims; Discounts</heading><content>(a) When featuring a sales price of a motor vehicle in an advertisement, the dealer must be willing to sell the motor vehicle for that featured sales price to any retail buyer. The featured sales price must be the price before the addition or subtraction of any other negotiated items. Destination and dealer preparation charges and additional dealership markup, if any must be included in the featured sales price.(b) The only costs and charges that may be excluded from the featured sales price are:(1) registration, certificate of title, or license fees;(2) taxes; and(3) other fees or charges that are expressly allowed by law.(c) A qualification may not be used when featuring a sales price for a motor vehicle such as "with trade," "with acceptable trade," "with dealer-arranged financing," "rebate assigned to dealer," or "with down payment."(d) Advertising an "internet price," "e-price," or using similar terms that indicate or create the impression that there is a different or unique sales price for an online or internet consumer or transaction is prohibited.(e) A savings claim or discount offer is prohibited except to advertise a new motor vehicle. No person may advertise a savings claim or discount offer on a used motor vehicle.(f) Statements such as "up to," "as much as," and "from" shall not be used by a dealer in connection with savings claims or discount offers.(g) The savings claim or discount offer for a new motor vehicle, when advertised by a dealer, must be the savings claim or discount available to any and all members of the buying public.(h) If an advertisement includes a savings claim or discount offer, the amount and type of each incentive that makes up the total amount of the savings claim or discount offer must be disclosed. (1) If a savings claim or discount offer includes only a dealer discount, that incentive must be disclosed as a deduction from the MSRP/DSRP, as applicable. The following are acceptable formats for advertising a dealer discount with and without a sales price.Attached Graphic(2) If a savings claim or discount offer includes only a customer rebate, that incentive must be disclosed as a deduction from the MSRP/DSRP, as applicable. The following are acceptable formats for advertising a customer rebate with and without a sales price.Attached Graphic(3) If a savings claim or discount offer includes both a customer rebate and a dealer discount, the incentives must be disclosed as deductions from the MSRP/DSRP, as applicable. The following are acceptable formats for advertising both a customer rebate and a dealer discount with and without a sales price.Attached Graphic(i) If a savings claim or discount offer includes an option package discount, that discount should be disclosed above, or prior to, the MSRP/DSRP, as applicable, with a total sales price of the motor vehicle before option discounts. Any additional savings or discounts should then be disclosed below the MSRP/DSRP, as applicable. The following are acceptable formats for advertising an option package discount with and without a sales price.Attached Graphic(j) Except as provided herein, the calculation of the featured sales price or featured savings claim or discount may not include a limited rebate. A limited rebate may be advertised by providing the amount of the limited rebate and explaining the conditions or restrictions on qualification for the limited rebate in a statement below the featured sales price or featured savings claim or discount.Attached Graphic(k) In an internet advertisement with multiple limited rebates available on an advertised new motor vehicle, a dealer may display each limited rebate separately allowing a potential buyer to "click" on the limited rebate to view the sales price after deducting the applicable limited rebate or applicable multiple rebates.Attached Graphic(l) If a dealer has added an option that was not obtained from the manufacturer or distributor of the motor vehicle, a dealer discount may not be advertised for that vehicle. If a dealer has added an option obtained from the manufacturer or distributor and disclosed that option and its suggested retail price on a dealership addendum, the dealer may advertise a dealer discount for that motor vehicle if the option is listed, and the difference is shown between the dealer's sales price and the MSRP/DSRP, as applicable, of the vehicle including the option obtained from the manufacturer or distributor.Attached Graphic</content><note type="source"><p>Source Note: The provisions of this §215.250 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective June 4, 2014, 39 TexReg 4271; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scF/s215.251"><num value="215.251">§215.251</num><heading>Identification</heading><content>(a) When the sales price of a motor vehicle is advertised, the following must be disclosed:(1) model year;(2) make;(3) model line and style or model designation; and(4) if applicable, whether the motor vehicle is used, a demonstrator, or a factory executive/official vehicle.(b) Expressions such as "fully equipped," "factory equipped," "loaded," and other such terms shall not be used in any advertisement that contains the sales price of a motor vehicle unless the optional equipment of the motor vehicle is listed in the advertisement.(c) A photograph or other representation of a motor vehicle used in an advertisement must be of the motor vehicle being advertised or substantially the same as that of the motor vehicle advertised.</content><note type="source"><p>Source Note: The provisions of this §215.251 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scF/s215.252"><num value="215.252">§215.252</num><heading>Advertising at Cost or Invoice</heading><content>(a) The term "dealer's cost" or other reference to the cost of the motor vehicle shall not be used.(b) The terms "invoice" or "invoice price" in advertising shall not be used.</content><note type="source"><p>Source Note: The provisions of this §215.252 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scF/s215.253"><num value="215.253">§215.253</num><heading>Trade-in Allowances</heading><content>No guaranteed trade-in amount or range of amounts shall be used in advertising. Additionally, an advertisement shall not state an amount or range of amounts for trade-in assistance or advertise that an offer is any specific amount or range of amounts over blue book value, black book value, or use any other similar language indicating there is an established retail value or starting price point for a used motor vehicle.</content><note type="source"><p>Source Note: The provisions of this §215.253 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scF/s215.254"><num value="215.254">§215.254</num><heading>Used Motor Vehicles</heading><content>A used motor vehicle shall not be advertised in any manner that creates the impression that it is new. A used motor vehicle shall be identified as "used" or "pre-owned." Terms such as "program car," "special purchase," "factory repurchase," or other similar terms shall not be used to identify a motor vehicle as used.</content><note type="source"><p>Source Note: The provisions of this §215.254 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scF/s215.255"><num value="215.255">§215.255</num><heading>Demonstrators and Factory Executive/Official Motor Vehicles</heading><content>If a demonstrator or factory executive/official motor vehicle is advertised, the advertisement must clearly and conspicuously identify the motor vehicle as a demonstrator or factory executive/official motor vehicle. A demonstrator or factory executive/official motor vehicle may not be advertised or sold except by a dealer franchised and licensed to sell that line-make of new motor vehicle.</content><note type="source"><p>Source Note: The provisions of this §215.255 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scF/s215.256"><num value="215.256">§215.256</num><heading>Free Offers</heading><content>(a) No merchandise or enticement may be described as "free" if the:(1) motor vehicle can be purchased or leased for a lesser sales price without the merchandise or enticement; or(2) sales price of the motor vehicle has been increased to cover the cost or any part of the cost of the merchandise or enticement.(b) The advertisement shall clearly and conspicuously disclose the conditions under which the "free" merchandise or enticement being offered may be obtained.</content><note type="source"><p>Source Note: The provisions of this §215.256 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scF/s215.257"><num value="215.257">§215.257</num><heading>Authorized Dealer</heading><content>The term "authorized dealer" or a similar term shall not be used unless the advertising dealer holds both a franchised dealer license and a franchised dealer GDN to sell the motor vehicles the dealer identifies itself as "authorized" to sell.</content><note type="source"><p>Source Note: The provisions of this §215.257 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scF/s215.258"><num value="215.258">§215.258</num><heading>Manufacturer and Distributor Rebates</heading><content>It is unlawful for a manufacturer or distributor to advertise any offer of a rebate, interest or finance charge reduction, or other financial inducement or incentive for the benefit of the purchaser of a motor vehicle if the selling dealer contributes in any manner to that incentive program, unless the advertisement discloses that the dealer's contribution may affect the final negotiated sales price of the motor vehicle.</content><note type="source"><p>Source Note: The provisions of this §215.258 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scF/s215.259"><num value="215.259">§215.259</num><heading>Rebate and Financing Rate Advertising by Dealers</heading><content>(a) It is unlawful for a dealer to advertise an offer of a manufacturer's or distributor's rebate, interest or finance charge reduction, or other financial inducement or incentive if the dealer contributes to the incentive program, unless such advertising discloses that the dealer's contribution may affect the final negotiated price of the motor vehicle.(b) An advertisement containing an offer of an interest or finance charge incentive that is paid for or financed by the dealer rather than the manufacturer or distributor shall disclose:(1) that the dealer pays for or finances the interest or finance charge rate reduction;(2) the amount of the dealer's contribution in either a dollar or percentage amount; and(3) that such arrangement may affect the final negotiated price of the motor vehicle.(c) An offer or promise to pay or to tender cash to a buyer of a motor vehicle, as in a rebate or cash back program, may not be advertised unless the rebate or cash back program is offered and paid in part by the motor vehicle manufacturer or distributor directly to the retail purchaser or to the assignee of the retail purchaser and unless the advertisement sets forth the contribution disclosures required by this rule.</content><note type="source"><p>Source Note: The provisions of this §215.259 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scF/s215.260"><num value="215.260">§215.260</num><heading>Vehicle Lease Advertisements</heading><content>A vehicle lease advertisement shall clearly and conspicuously disclose that the advertisement is for the lease of a motor vehicle. Statements such as "alternative financing plan," "drive away for $ per month," or other terms or phrases that do not use the term "lease" do not constitute adequate disclosure of a lease. A vehicle lease advertisement shall not contain the phrase "no down payment" or similar words or phrases if any payment is required to be paid by the customer to lease the motor vehicle. Vehicle lease terms that are not available to the general public shall not be included in advertisements directed at the general public, or all limitations and qualifications applicable to the vehicle lease terms advertised shall be clearly and conspicuously disclosed.</content><note type="source"><p>Source Note: The provisions of this §215.260 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scF/s215.261"><num value="215.261">§215.261</num><heading>Manufacturer or Distributor Sales and Wholesale Prices</heading><content>A motor vehicle shall not be advertised for sale in any manner that creates the impression that it is being offered for sale by the manufacturer or distributor of the motor vehicle. An advertisement shall not:(1) contain terms such as "factory sale," "fleet prices," "wholesale prices," "factory approved," "factory sponsored," "manufacturer sale," or "distributor sale;"(2) use a manufacturer's or distributor's name or abbreviation in any manner calculated or likely to create an impression that the motor vehicle is being offered for sale by the manufacturer or distributor; or(3) use any other similar terms which indicate sales other than retail sales from the dealer.</content><note type="source"><p>Source Note: The provisions of this §215.261 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scF/s215.263"><num value="215.263">§215.263</num><heading>Sales Payment Disclosures</heading><content>An advertisement that contains the amount of any payment, including a down payment in either a percentage or dollar amount, or an advertisement that contains the number of payments, the period of repayment, or the amount of any finance charge must include the following:(1) the amount or percentage of the down payment;(2) the terms of repayment, from which the number of months to make repayment and the amount per month can be determined, including any balloon payment;(3) the annual percentage rate (APR); and(4) the amount of the APR, if increased, after consummation of the credit transaction.</content><note type="source"><p>Source Note: The provisions of this §215.263 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scF/s215.264"><num value="215.264">§215.264</num><heading>Payment Disclosure - Vehicle Lease</heading><content>(a) An advertisement that promotes a consumer lease and contains the amount of any payment or that contains either a statement of any capitalized cost reduction or other payment or a statement that no payment is required at consummation or prior to consummation or delivery, if delivery occurs after consummation, must clearly and conspicuously include the following:(1) that the transaction advertised is a vehicle lease;(2) the total amount due at consummation or prior to consummation or delivery, if delivery occurs after consummation;(3) the number, amount, and due date or period of scheduled payments under the vehicle lease;(4) a statement of whether a security deposit is required; and(5) a statement that an extra charge may be imposed at the end of the vehicle lease term where the lessee's liability, if any, is based on the difference between the residual value of the leased property and its realized value at the end of the vehicle lease term.(b) Except for a periodic payment, a reference to a charge described in subsection (a)(2) of this section cannot be more prominently advertised than the disclosure of the total amount due at vehicle lease signing or delivery.(c) Except for disclosures of limitations on rate information, if a percentage rate is advertised, that rate shall not be more prominently advertised than any other disclosure or deal term.(d) If a vehicle lessor provides a percentage rate in an advertisement, a notice stating "this percentage may not measure the overall cost of financing this lease" shall accompany the rate disclosure. The vehicle lessor shall not use the terms "annual percentage rate," "annual lease rate," or any equivalent terms in any advertisement containing a percentage rate.(e) A multi-page advertisement that provides a table or schedule of the required disclosures is considered a single advertisement, provided that for vehicle lease terms appearing without all of the required disclosures, the advertisement refers to the page or pages on which the table or schedule appears.(f) A merchandise tag stating any item listed in subsection (a) of this section must comply with subsection (a) of this section by referring to a sign or to a display prominently posted in the vehicle lessor's place of business. The sign or display must contain a table or schedule of the required disclosures under subsection.(g) An advertisement made through television or radio stating any item listed in subsection (a) of this section, must include the following statements:(1) that the transaction advertised is a vehicle lease;(2) the total amount due at consummation or due prior to consummation or delivery, if delivery occurs after consummation; and(3) the number, amount, and due date or period of scheduled payments under the vehicle lease.(h) In addition to the requirements of subsection (g) of this section, an advertisement made through television or radio stating any item listed in subsection (a) of this section, must:(1) provide a toll-free telephone number along with a statement that the telephone number may be used by consumers to obtain the information in subsection (a) of this section; or(2) direct the consumer to a written advertisement in a publication of general circulation in the community served by the media station, including the name and the date of the publication, with a statement that the required disclosures in subsection (a) of this section are included in the advertisement.(i) The toll-free telephone number required by subsection (h)(1) of this section shall be available for at least 10 days, beginning on the date of the broadcast. Upon request, the vehicle lessor shall provide the information in subsection (a) of this section orally or in writing.(j) The written advertisement required by subsection (h)(2) of this section shall be published beginning at least three days before the broadcast and ending at least 10 days after the broadcast.</content><note type="source"><p>Source Note: The provisions of this §215.264 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scF/s215.265"><num value="215.265">§215.265</num><heading>Bait Advertisements</heading><content>Bait advertisements shall not be used by any person.</content><note type="source"><p>Source Note: The provisions of this §215.265 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scF/s215.266"><num value="215.266">§215.266</num><heading>Lowest Price Claims</heading><content>(a) Claims that represent a lowest price, best price, best deal, or other similar superlative claims shall not be used in advertising.(b) If a "meet or beat" guarantee is advertised, then the advertisement must clearly and conspicuously disclose the conditions and requirements necessary in order for a person to receive the offer or guarantee.</content><note type="source"><p>Source Note: The provisions of this §215.266 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scF/s215.267"><num value="215.267">§215.267</num><heading>Fleet Prices</heading><content>Terms such as "fleet prices," "fleet sales," or other terms or phrases implying that individual retail customers will be afforded the same price or discount as multi purchase commercial businesses shall not be used.</content><note type="source"><p>Source Note: The provisions of this §215.267 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scF/s215.268"><num value="215.268">§215.268</num><heading>Bankruptcy and Liquidation Sales</heading><content>A person who advertises a liquidation sale, auction sale, or going out of business sale shall state the correct name and permanent address of the business in the advertisement. The phrases "going out of business," "closing out," "shutting doors forever," "bankruptcy sale," "foreclosure," "bankruptcy," or similar phrases or words indicating that a business is ceasing operation shall not be used unless the business is closing its operations and follows the procedures required by Business and Commerce Code, Chapter 17, Subchapter F.</content><note type="source"><p>Source Note: The provisions of this §215.268 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scF/s215.269"><num value="215.269">§215.269</num><heading>Finding of Violation</heading><content>A person shall not be held in violation of the rules, including the general prohibition, except upon a finding of a violation made by the department after the filing of a Notice of Department Decision and an opportunity to request a hearing as provided in Occupations Code, Chapter 2301.</content><note type="source"><p>Source Note: The provisions of this §215.269 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective June 4, 2014, 39 TexReg 4271; amended to be effective February 13, 2017, 42 TexReg 571.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scF/s215.270"><num value="215.270">§215.270</num><heading>Enforcement</heading><content>(a) The department may file a Notice of Department Decision against a license holder alleging a violation of an advertising provision pursuant to Occupations Code, §2301.203, provided the department can show:(1) that the license holder who allegedly violated an advertising provision has received from the department a notice of an opportunity to cure the violation by certified mail, return receipt requested, in compliance with subsection (b) of this section; and(2) that the license holder committed a subsequent violation of the same advertising provision.(b) An effective notice of an opportunity to cure issued under subsection (a)(1) of this section must:(1) state that the department has reason to believe that the license holder violated an advertising provision and must identify the provision;(2) set forth the facts upon which the department bases its allegation of a violation; and(3) state that if the license holder commits a subsequent violation of the same advertising provision, the department will file a Notice of Department Decision under §224.56 of this title (relating to Notice of Department Decision).(c) As a part of the cure procedure, the department may require a license holder who allegedly violated an advertising provision to publish a retraction notice to effect an adequate cure of the alleged violation. A retraction notice must:(1) appear in a newspaper of general circulation in the area in which the alleged violation occurred;(2) appear in the portion of the newspaper devoted to motor vehicle advertising, if any;(3) identify the date and the medium of publication, print, electronic, or other, in which the advertising alleged to be a violation appeared; and(4) identify the alleged violation of the advertising provision and contain a statement of correction.(d) A cure is made solely for the purpose of settling an allegation and is not an admission of a violation of these rules; Occupations Code, Chapter 2301; or other law.</content><note type="source"><p>Source Note: The provisions of this §215.270 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective March 29, 2012, 37 TexReg 2087; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scF/s215.271"><num value="215.271">§215.271</num><heading>Auction</heading><content>Terms such as "auction," "auction special," or other terms with similar meaning shall be used only in connection with a motor vehicle offered or sold at a bona fide auction.</content><note type="source"><p>Source Note: The provisions of this §215.271 adopted to be effective November 30, 2010, 35 TexReg 10513; amended to be effective February 13, 2017, 42 TexReg 571.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c215/scG"><num value="G">SUBCHAPTER G</num><heading>ADMINISTRATIVE SANCTIONS</heading><section identifier="/us/state/tx/tac/t43/p10/c215/scG/s215.500"><num value="215.500">§215.500</num><heading>Administrative Sanctions</heading><content>An administrative sanction may include:(1) denial of an application for a license;(2) suspension of a license;(3) revocation of a license;(4) the imposition of civil penalties; or(5) a refund under §215.504 of this title (relating to Buyer or Lessee Refund).</content><note type="source"><p>Source Note: The provisions of this §215.500 adopted to be effective February 6, 2014, 39 TexReg 502; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective December 30, 2020, 45 TexReg 9580; amended to be effective June 1, 2024, 49 TexReg 2704.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scG/s215.503"><num value="215.503">§215.503</num><heading>Refund of Fees</heading><content>In the absence of director approval, the department will not refund a fee paid by a license applicant, license holder, or other person if:(1) the application or license is:(A) denied;(B) suspended; or(C) revoked; or(2) the license applicant, license holder, or other person is subject to an unpaid civil penalty imposed against the license applicant, license holder, or other person by a final order.</content><note type="source"><p>Source Note: The provisions of this §215.503 adopted to be effective February 6, 2014, 39 TexReg 502; amended to be effective February 13, 2017, 42 TexReg 571.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c215/scG/s215.504"><num value="215.504">§215.504</num><heading>Buyer or Lessee Refund</heading><content>(a) The board may order a person to issue a refund if, after a proceeding under this chapter, it determines the person violated or has violated Occupations Code Chapter 2301 or department rules.(b) Under this section, a refund is the return of any percentage ordered by the department of funds paid, or contracted to be paid, to a person, whether those funds are documented as a separate line item or part of the overall amount paid by a buyer or lessee. Refund may include overpayments, fees paid for services not rendered, and payments made for products not delivered.</content><note type="source"><p>Source Note: The provisions of this §215.504 adopted to be effective December 30, 2020,45 TexReg 9580.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p10/c217"><num value="217">CHAPTER 217</num><heading>VEHICLE TITLES AND REGISTRATION</heading><subchapter identifier="/us/state/tx/tac/t43/p10/c217/scA"><num value="A">SUBCHAPTER A</num><heading>MOTOR VEHICLE TITLES</heading><section identifier="/us/state/tx/tac/t43/p10/c217/scA/s217.1"><num value="217.1">§217.1</num><heading>Purpose and Scope</heading><content>The Certificate of Title Act, Transportation Code, Chapter 501, charges the department with the responsibility of issuing titles for motor vehicles, unless they are otherwise exempted by law. For the department to efficiently and effectively issue motor vehicle titles, maintain records, and collect the applicable fees, and to ensure proper application by motor vehicle owners, this subchapter prescribes the policies and procedures for the application for and issuance of motor vehicle titles.</content><note type="source"><p>Source Note: The provisions of this §217.1 adopted to be effective March 12, 2015, 40 TexReg 1096.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scA/s217.2"><num value="217.2">§217.2</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Alias--The name of a vehicle owner reflected on a title, when the name on the title is different from the name of the legal owner of the vehicle.(2) Alias title--A title document issued by the department for a vehicle that is used by an exempt law enforcement agency in covert criminal investigations.(3) Bond release letter--Written notification from the United States Department of Transportation authorizing United States Customs to release the bond posted for a motor vehicle imported into the United States to ensure compliance with federal motor vehicle safety standards.(4) Current photo identification--A government-issued photo identification that is currently valid or is expired not more than 12 months, or a state-issued personal identification certificate issued to a qualifying person if the identification states that it has no expiration.(5) Date of sale--The date of the transfer of possession of a specific vehicle from a seller to a purchaser.(6) Division director--The director of the department's Vehicle Titles and Registration Division.(7) Executive administrator--The director of a federal agency, the director of a Texas state agency, the sheriff of a Texas county, or the chief of police of a Texas city who by law possesses the authority to conduct covert criminal investigations.(8) Exempt agency--A governmental body exempt by law from paying title or registration fees for motor vehicles.(9) Federal motor vehicle safety standards--Motor vehicle safety requirements promulgated by the United States Department of Transportation, National Highway Traffic Safety Administration, set forth in Title 49, Code of Federal Regulations.(10) Manufacturer's certificate of origin--A form prescribed by the department showing the original transfer of a new motor vehicle from the manufacturer to the original purchaser, whether importer, distributor, dealer, or owner and when presented with an application for title showing on appropriate forms prescribed by the department, each subsequent transfer between distributor and dealer, dealer and dealer, and dealer and owner.(11) Moped--A motor vehicle as defined by Transportation Code, §541.201.(12) Motor vehicle importation form--A declaration form prescribed by the United States Department of Transportation and certified by United States Customs that relates to any motor vehicle being brought into the United States and the motor vehicle's compliance with federal motor vehicle safety standards.(13) Non-United States standard motor vehicle--A motor vehicle not manufactured in compliance with federal motor vehicle safety standards.(14) Person--An individual, firm, corporation, company, partnership, or other entity.(15) Safety certification label--A label placed on a motor vehicle by a manufacturer certifying that the motor vehicle complies with all federal motor vehicle safety standards.(16) Statement of fact--A written declaration that supports an application for a title, that is executed by an involved party to a transaction involving a motor vehicle, and that clarifies an error made on a title or other negotiable evidence of ownership. An involved party is the seller, or an agent of the seller involved in the motor vehicle transaction. When a written declaration is necessary to correct an odometer disclosure error, the signatures of both the seller and buyer when the error occurred are required.(17) Title application--A form prescribed by the division director that reflects the information required by the department to create a motor vehicle title record.(18) Verifiable proof--Additional documentation required of a vehicle owner, lienholder, or agent executing an application for a certified copy of a title.</content><note type="source"><p>Source Note: The provisions of this §217.2 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective August 8, 2016, 41 TexReg 5766; amended to be effective March 1, 2018, 43 TexReg 1145; amended to be effective March 1, 2020, 45 TexReg 1228; amended to be effective March 1, 2022, 47 TexReg 968; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scA/s217.3"><num value="217.3">§217.3</num><heading>Motor Vehicle Titles</heading><content>Unless otherwise exempted by law or this chapter, the owner of any motor vehicle that is required to be titled, including any motor vehicle required to be registered in accordance with Transportation Code Chapter 502, shall apply for a Texas title in accordance with Transportation Code Chapter 501 or 731, or this subchapter.(1) Motorcycles, autocycles, and mopeds. The title requirements for a motorcycle, autocycle, and moped are the same requirements prescribed for any motor vehicle.(2) Farm vehicles.(A) Farm tractors owned by agencies exempt from registration fees in accordance with Transportation Code §502.453, are required to be titled and registered with "Exempt" license plates issued in accordance with Transportation Code §502.451.(B) Tractors used as road tractors to mow rights of way or used to move commodities over the highway for hire are required to be registered and titled.(3) Neighborhood electric vehicles. The title requirements of a neighborhood electric vehicle (NEV) are the same requirements prescribed for any motor vehicle.(4) Trailers, semitrailers, and house trailers. If a trailer or semitrailer with a gross weight of 4,000 pounds or less has been titled previously, any subsequent owner shall apply for a Texas title for the trailer or semitrailer. Travel trailer-type vehicles must meet the criteria outlined in subparagraph (C) of this paragraph to be titled:(A) The rated carrying capacity will not be less than one-third of its empty weight.(B) Mobile office trailers, mobile oil field laboratories, and mobile oil field bunkhouses are not designed as dwellings, but are classified as commercial semitrailers and must be registered and titled as commercial semitrailers if operated on the public streets and highways.(C) House trailer-type vehicles and camper trailers must meet the following criteria in order to be titled.(i) A house trailer-type vehicle that is less than eight feet six inches in width or less than 45 feet in length is classified as a travel trailer and shall be registered and titled.(ii) A camper trailer shall be titled as a house trailer and shall be registered with travel trailer license plates.(iii) A recreational park model type trailer that is primarily designed as temporary living quarters for recreational, camping or seasonal use, is built on a single chassis, and is 400 square feet or less when measured at the largest horizontal projection when in the set up mode shall be titled as a house trailer and may be issued travel trailer license plates.(5) Assembled vehicles. The title requirements for assembled vehicles are prescribed in Subchapter L of this title (relating to Assembled Vehicles).(6) Not Eligible for Title. The following are not eligible for a Texas title regardless of the vehicle's previous title or registration in this or any other jurisdiction:(A) vehicles that are missing or are stripped of their motor, frame, or body, to the extent that the vehicle loses its original identity or makes the vehicle unsafe for on-road operation as determined by the department;(B) vehicles designed by the manufacturer for on-track racing only;(C) vehicles designed or determined by the department to be for off-highway use only, unless specifically defined as a "motor vehicle" in Transportation Code Chapter 501; or(D) vehicles assembled, built, constructed, rebuilt, or reconstructed in any manner with:(i) a body or frame from a vehicle which is a "nonrepairable motor vehicle" as that term is defined in Transportation Code §501.091(9); or(ii) a motor or engine from a vehicle which is flood damaged, water damaged, or any other term which may reasonably establish the vehicle from which the motor or engine was obtained is a loss due to a water related event.</content><note type="source"><p>Source Note: The provisions of this §217.3 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective March 9, 2016, 41 TexReg 1721; amended to be effective August 8, 2016, 41 TexReg 5766; amended to be effective December 4, 2016, 41 TexReg 9335; amended to be effective November 14, 2017, 42 TexReg 6382; amended to be effective June 22, 2020, 45 TexReg 4058; amended to be effective December 30, 2020, 45 TexReg 9581; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scA/s217.4"><num value="217.4">§217.4</num><heading>Initial Application for Title</heading><content>(a) Time for application. A person must apply for the title not later than the 30th day after the date of assignment, except:(1) in a seller-financed sale, the title must be applied for not later than the 45th day after the date the motor vehicle is delivered to the purchaser;(2) a member of the armed forces or a member of a reserve component of the United States, a member of the Texas National Guard or of the National Guard of another state serving on active duty, must apply not later than the 60th day after the date of assignment of ownership; or(3) as otherwise provided by Transportation Code, Chapter 501.(b) Place of application. Except as otherwise provided by Transportation Code, Chapters 501 and 502, and by §217.84(a) of this title (relating to Application for Nonrepairable or Salvage Vehicle Title), when motor vehicle ownership is transferred, a title application must be filed with:(1) the county tax assessor-collector in the county in which the applicant resides or in the county in which the motor vehicle was purchased or encumbered; or(2) a county tax assessor-collector of a county who is willing to accept the application.(c) Information to be included on application. An applicant for an initial title must file an application on a form prescribed by the department. The form will at a minimum require the:(1) motor vehicle description including, but not limited to, the motor vehicle:(A) year;(B) make;(C) identification number;(D) body style; and(E) empty weight;(2) license plate number, if the motor vehicle is subject to registration under Transportation Code, Chapter 502;(3) odometer reading and brand, or the word "exempt" if the motor vehicle is exempt from federal and state odometer disclosure requirements;(4) previous owner's legal name and municipality and state, if available;(5) legal name as stated on the identification presented and complete address of the applicant;(6) name and mailing address of any lienholder and the date of lien, if applicable;(7) signature of the seller of the motor vehicle or the seller's authorized agent and the date the title application was signed; and(8) signature of the applicant or the applicant's authorized agent and the date the title application was signed.(d) Accompanying documentation. The title application must be supported by, at a minimum, the following documents:(1) evidence of vehicle ownership, as described in §217.5 of this title (relating to Evidence of Motor Vehicle Ownership);(2) an odometer disclosure statement properly executed by the seller of the motor vehicle and acknowledged by the purchaser, if applicable;(3) proof of financial responsibility in the applicant's name, as required by Transportation Code, §502.046, unless otherwise exempted by law;(4) for a vehicle last registered or titled in another state, verification of the vehicle identification number by a process prescribed on a form by the department for the applicant to self-certify the vehicle identification number if the vehicle is not subject to Transportation Code, Chapter 548;(5) a release of any liens, provided that if any liens are not released, they will be carried forward on the new title application; and(6) any documents required by §217.9 of this title (relating to Bonded Titles).</content><note type="source"><p>Source Note: The provisions of this §217.4 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective August 8, 2016, 41 TexReg 5766; amended to be effective November 14, 2017, 42 TexReg 6382; amended to be effective March 1, 2022, 47 TexReg 968; amended to be effective January 1, 2025, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scA/s217.5"><num value="217.5">§217.5</num><heading>Evidence of Motor Vehicle Ownership</heading><content>(a) Evidence of motor vehicle ownership properly assigned to the applicant must accompany the title application. Evidence must include, but is not limited to, the following documents.(1) New motor vehicles. A manufacturer's certificate of origin assigned by the manufacturer or the manufacturer's representative or distributor to the original purchaser is required for a new motor vehicle that is sold or offered for sale.(A) The manufacturer's certificate of origin must be in the form prescribed by the department and must contain, at a minimum, the following information:(i) manufacturer's name on the face of the manufacturer's certificate of origin;(ii) motor vehicle description including, but not limited to, the motor vehicle year, make, model, identification number, and body style;(iii) the empty or shipping weight;(iv) the gross vehicle weight when the manufacturer's certificate of origin is invoiced to a licensed Texas motor vehicle dealer and is issued for commercial motor vehicles as that term is defined in Transportation Code, Chapter 502;(v) a statement identifying a motor vehicle designed by the manufacturer for off-highway use only;(vi) if the vehicle is a motor bus, the manufacturer must show the seating capacity (number of passengers) of the motor bus on the manufacturer's certificate; and(vii) if the vehicle is a "neighborhood electric vehicle," a statement that the vehicle meets Federal Motor Vehicle Safety Standard 500 (49 C.F.R. §571.500) for low-speed vehicles.(B) When a motor vehicle manufactured in another country is sold directly to a person other than a manufacturer's representative or distributor, the manufacturer's certificate of origin must be assigned to the purchaser by the seller.(2) Used motor vehicles. Applicants applying for title to a used motor vehicle must relinquish as evidence of ownership one of the following documents:(A) a title issued by the department;(B) a title issued by another state if the motor vehicle was last titled in another state;(C) documents evidencing a transfer of motor vehicle ownership by operation of law as listed in Transportation Code §501.074;(D) a registration receipt if the applicant is coming from a state that no longer titles vehicles after a certain period of time; or(E) a bill of sale when the applicant presents:(i) an out-of-state or out-of-country registration receipt that does not provide a transfer of ownership section;(ii) an out of state title when all dealer reassignment sections have been completed and the issuing state does not utilize supplemental dealer reassignment forms; or(iii) a non-titled vehicle.(3) Evidence of Ownership for Purpose of Identification Number Assignment or Reassignment. An applicant for assignment or reassignment of an identification number under Transportation Code §501.033 who is unable to produce evidence of ownership under this section, may file a bond with the department in accordance with Transportation Code §501.053 and §217.9 of this title (relating to Bonded Titles). The bond will serve as evidence of ownership for purposes of §501.033(b).(4) Motor vehicles brought into the United States. An application for title for a motor vehicle last registered or titled in a foreign country must be supported by documents including, but not limited to, the following:(A) the motor vehicle registration certificate or other verification issued by a foreign country reflecting the name of the applicant as the motor vehicle owner, or reflecting that legal evidence of ownership has been legally assigned to the applicant;(B) the identification number inspection required under Transportation Code §501.032(a)(2), except as provided in §501.032(b); and(C) for motor vehicles that are less than 25 years old, proof of compliance with United States Department of Transportation (USDOT) regulations including, but not limited to, the following documents:(i) the original bond release letter with all attachments advising that the motor vehicle meets federal motor vehicle safety requirements or a letter issued by the USDOT, National Highway Traffic Safety Administration, verifying the issuance of the original bond release letter;(ii) a legible copy of the motor vehicle importation form validated with a signature as filed with the USDOT confirming the exemption from the bond release letter required in clause (i) of this subparagraph, or a copy thereof certified by United States Customs;(iii) a verification of motor vehicle inspection by United States Customs certified on its letterhead and signed by its agent verifying that the motor vehicle complies with USDOT regulations;(iv) a written confirmation that a physical inspection of the safety certification label has been made by the department and that the motor vehicle meets United States motor vehicle safety standards;(v) the original bond release letter, verification thereof, or written confirmation from the previous state verifying that a bond release letter issued by the USDOT was relinquished to that jurisdiction, if the non-United States standard motor vehicle was last titled or registered in another state for one year or less; or(vi) verification from the vehicle manufacturer on its letterhead stationery.(b) Alterations to documentation. An alteration to a registration receipt, title, manufacturer's certificate, or other evidence of ownership constitutes a valid reason for the rejection of any transaction to which altered evidence is attached.(1) Altered lien information on any surrendered evidence of ownership requires a release from the original lienholder or a statement from the proper authority of the state in which the lien originated. The statement must verify the correct lien information.(2) A strikeover that leaves any doubt about the legibility of any digit in any document will not be accepted.(3) A corrected manufacturer's certificate of origin will be required if the manufacturer's certificate of origin contains an:(A) incomplete or altered vehicle identification number;(B) alteration or strikeover of the vehicle's model year;(C) alteration or strikeover to the body style, or omitted body style on the manufacturer's certificate of origin; or(D) alteration or strikeover to the weight.(4) A statement of fact may be requested to explain errors, corrections, or conditions from which doubt does or could arise concerning the legality of any instrument. A statement of fact will be required in all cases:(A) in which the date of sale on an assignment has been erased or altered in any manner; or(B) of alteration or erasure on a Dealer's Reassignment of Title.(c) Rights of survivorship. A signed "rights of survivorship" agreement may be executed by a natural person acting in an individual capacity in accordance with Transportation Code, §501.031.(d) Identification required.(1) An application for title is not acceptable unless the applicant presents a current photo identification of the owner containing a unique identification number. The current photo identification must be a:(A) driver's license or state identification certificate issued by a state or territory of the United States;(B) United States or foreign passport;(C) United States military identification card;(D) North Atlantic Treaty Organization identification or identification issued under a Status of Forces Agreement;(E) United States Department of Homeland Security, United States Citizenship and Immigration Services, or United States Department of State identification document; or(F) license to carry a handgun issued by the Texas Department of Public Safety under Government Code, Chapter 411, Subchapter H.(2) If the motor vehicle is titled in:(A) more than one name, then the identification of one owner must be presented;(B) the name of a leasing company, then:(i) proof of the Federal Employer Identification Number/Employee Identification Number (FEIN/EIN) of the leasing company must be submitted, written on the application, and can be entered into the department's titling system. The number must correspond to the name of the leasing company in which the vehicle is being titled; and(ii) the leasing company may submit:(I) a government issued photo identification, required under paragraph (1) of this subsection, of the lessee listed as the registrant; or(II) a government issued photo identification, required under paragraph (1) of this subsection, of the employee or authorized agent who signed the application for the leasing company, and the employee's or authorized agent's employee identification, letter of authorization written on the lessor's letterhead, or a printed business card. The printed business card, employee identification, or letter of authorization written on the lessor's letterhead must contain the name of the lessor, and the employee's or authorized agent's name must match the name on the government issued photo identification;(C) the name of a trust, then a government issued photo identification, required under paragraph (1) of this subsection, of a trustee must be presented; or(D) the name of a business, government entity, or organization, then:(i) proof of the Federal Employer Identification Number/Employee Identification Number (FEIN/EIN) of the business, government entity, or organization must be submitted, written on the application, and can be entered into the department's titling system. The number must correspond to the name of the business, government entity, or organization in which the vehicle is being titled;(ii) the employee or authorized agent must present a government issued photo identification, required under paragraph (1) of this subsection; and(iii) the employee's or authorized agent's employee identification; letter of authorization written on the business', government entity's, or organization's letterhead; or a printed business card. The printed business card, employee identification, or letter of authorization written on the business', government entity's, or organization's letterhead must contain the name of the business, governmental entity, or organization, and the employee's or authorized agent's name must match the name on the government issued photo identification.(3) In addition to the requirements of paragraphs (1) and (2) of this subsection, if a power of attorney is being used to apply for a title, then the applicant must show:(A) identification, required under paragraph (1) of this subsection, matching the person named as power of attorney; or(B) identification, required under paragraph (1) of this subsection, and employee identification or a printed business card or authorization written on the letterhead of the entity named as power of attorney that matches the identification of the employee if the power of attorney names an entity.(4) Within this subsection, an identification document such as a printed business card, letter of authorization, or power of attorney, may be an original or a photocopy.(5) A person who holds a general distinguishing number issued under Transportation Code, Chapter 503 is exempt from submitting to the county tax assessor-collector, but must retain:(A) the owner's identification, as required under paragraph (1) of this subsection; and(B) authorization to sign, as required under paragraph (2) of this subsection.(6) A person who holds a general distinguishing number issued under Transportation Code, Chapter 503 is not required to submit photo identification or authorization for an employee or agent signing a title assignment with a secure power of attorney.</content><note type="source"><p>Source Note: The provisions of this §217.5 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective August 8, 2016, 41 TexReg 5766; amended to be effective August 31, 2022, 47 TexReg 5138; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scA/s217.6"><num value="217.6">§217.6</num><heading>Title Issuance</heading><content>(a) Issuance. The department or its designated agent will issue a receipt and process the application for title on receipt of:(1) a completed application for title;(2) required accompanying documentation;(3) the statutory fee for a title application, unless exempt under:(A) Transportation Code, §501.138; or(B) Government Code, §437.217 and copies of official military orders are presented as evidence of the applicant's active duty status and deployment orders to a hostile fire zone; and(4) any other applicable fees.(b) Titles. The department will issue and mail or deliver a title to the applicant or, in the event that there is a lien disclosed in the application, to the first lienholder unless the title is an electronic record of title.(c) Receipt. The receipt issued at the time of application for title may be used only as evidence of title and may not be used to transfer any interest or ownership in a motor vehicle or to establish a new lien.(d) Temporary hold. The department shall place a hold on processing a title application for a motor vehicle if the department receives a request for a hold accompanied by evidence of a legal action regarding ownership of or a lien interest in the motor vehicle. The hold shall continue until a final, nonappealable judgment is entered in the action or the party requesting the hold requests that the hold be removed.(1) Evidence of a legal action regarding ownership of or a lien interest in a motor vehicle means evidence showing a legal action regarding ownership of or a lien interest in a motor vehicle filed in a district, county, statutory probate court, or bankruptcy court.(2) Legal actions filed in justice of the peace or municipal courts do not qualify as evidence for purposes of this section unless the case is related to Chapter 47, Code of Criminal Procedure, or Section 27.031, Government Code.(3) Legal actions regarding ownership of or a lien interest in a motor vehicle must be active on a court's docket. If the evidence presented in support of a request for a hold is a legal action that has been resolved through a final nonappealable judgment, additional evidence of post-judgment legal actions must be presented to place a hold on processing a title.(4) The department shall place a ten-day temporary hold on processing a title if a party seeking to obtain a 10-day temporary hold presents the VIN of the vehicle for which the hold is sought, and attests that the hold is being requested in order to commence a legal action disputing a title or lien interest in a motor vehicle and not for purposes of delay.(5) For the purposes of this subsection, a final nonappealable judgment is a judgment for which 30 days have passed from the day the judgment was entered without a notice of appeal being filed.</content><note type="source"><p>Source Note: The provisions of this §217.6 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scA/s217.7"><num value="217.7">§217.7</num><heading>Replacement of Title</heading><content>(a) Lost or destroyed title. If a title is lost or destroyed, the department will issue a certified copy of the title to the owner, the lienholder, or a verified agent of the owner or lienholder in accordance with Transportation Code, Chapter 501, on proper application and payment of the appropriate fee to the department.(b) Identification required.(1) An owner or lienholder may not apply for a certified copy of title unless the applicant presents a current photo identification of the owner or lienholder containing a unique identification number and expiration date. The current photo identification must be a:(A) driver's license or state identification certificate issued by a state or territory of the United States;(B) United States or foreign passport;(C) United States military identification card;(D) North Atlantic Treaty Organization identification or identification issued under a Status of Forces Agreement;(E) United States Department of Homeland Security, United States Citizenship and Immigration Services, or United States Department of State identification document; or(F) license to carry a handgun issued by the Texas Department of Public Safety under Government Code, Chapter 411, Subchapter H.(2) If the motor vehicle is titled in:(A) more than one name, then the identification for each owner must be presented;(B) the name of a leasing company, then the lessor's employee or authorized agent who signed the application for the leasing company must present:(i) a government issued photo identification, required under paragraph (1) of this subsection; and(ii) employee identification, letter of authorization written on the lessor's letterhead, or a printed business card. The printed business card, employee identification, or letter of authorization written on the lessor's letterhead must contain the name of the lessor, and the employee's or authorized agent's name must match the name on the government issued photo identification;(C) the name of a trust, then a government issued photo identification, required under paragraph (1) of this subsection, of a trustee must be presented; or(D) the name of a business, government entity, or organization, then:(i) the employee or authorized agent must present a government issued photo identification, required under paragraph (1) of this subsection; and(ii) the employee's or authorized agent's employee identification; letter of authorization written on the business', government entity's, or organization's letterhead; or a printed business card. The printed business card, employee identification, or letter of authorization written on the business', government entity's, or organization's letterhead must contain the name of the business, governmental entity, or organization, and the employee's or authorized agent's name must match the name on the government issued photo identification.(3) In addition to the requirements of paragraphs (1) and (2) of this subsection, if a power of attorney is being used to apply for a certified copy of title, then the applicant must show:(A) current photo identification, required under paragraph (1) of this subsection, matching the person named as power of attorney;(B) current photo identification, required under paragraph (1) of this subsection, and employee identification or a printed business card or authorization written on the letterhead of the entity named as power of attorney that matches the identification of the employee if the power of attorney names an entity; or(C) current photo identification, required under paragraph (1) of this subsection, of the owner or lienholder.(4) Within this subsection, an identification document, such as a printed business card, letter of authorization, or power of attorney, may be an original or a photocopy.(c) Issuance. An application for a certified copy must be properly executed and supported by appropriate verifiable proof of the vehicle owner, lienholder, or agent regardless of whether the application is submitted in person or by mail. A certified copy will not be issued until after the 14th day that the original title was issued.(d) Denial. If issuance of a certified copy is denied, the applicant may resubmit the request with the required verifiable proof or may pursue the privileges available in accordance with Transportation Code, §501.052 and §501.053.(e) Additional copies. An additional certified copy will not be issued until 30 days after issuance of the previous certified copy.(f) Fees. The fee for obtaining a certified copy of a title is $2 if the application is submitted to the department by mail and $5.45 if the application is submitted in person for expedited processing at one of the department's regional offices.</content><note type="source"><p>Source Note: The provisions of this §217.7 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective August 8, 2016, 41 TexReg 5766; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scA/s217.8"><num value="217.8">§217.8</num><heading>Second-Hand Vehicle Transfers</heading><content>(a) Voluntary notification. A transferor, other than a dealer who holds a general distinguishing number, of a motor vehicle may voluntarily make written notification to the department of the sale of the vehicle, in accordance with Transportation Code, §501.147. The written notification may be submitted to the department by mail, in person at one of the department's regional offices, or electronically through the department's Internet website.(b) Required notification. A dealer who holds a general distinguishing number is required to submit a written vehicle transfer notification to the department including the information required under Transportation Code, §501.147(b) upon the sale or transfer of a motor vehicle to the dealer. The written notification may be submitted to the department by mail, in person at one of the department's regional offices, or electronically through the department's Internet website.(c) Records. On receipt of written notice of transfer from the transferor of a motor vehicle or dealer who holds a general distinguishing number, the department will mark its records to indicate the date of transfer and will maintain a record of the information provided on the written notice of transfer.(d) Title issuance. A title will not be issued in the name of a transferee until the transferee files an application for the title as described in this subchapter.</content><note type="source"><p>Source Note: The provisions of this §217.8 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective July 1, 2025, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scA/s217.9"><num value="217.9">§217.9</num><heading>Bonded Titles</heading><content>(a) Who may file. A person who has an interest in a motor vehicle to which the department has refused to issue a title or has suspended or revoked a title may request issuance of a title from the department on a prescribed form if the vehicle is in the possession of the applicant; and(1) there is a record that indicates a lien that is less than ten years old and the applicant provides a release of all liens and a bond;(2) there is a record that indicates there is not a lien or the lien is ten or more years old; or(3) the department has no previous motor vehicle record.(b) Administrative fee. The applicant must pay the department a $15 administrative fee in addition to any other required fees.(c) Value. The amount of the bond must be equal to one and one-half times the value of the vehicle as determined under Tax Code §152.0412 regarding Standard Presumptive Value (SPV). If the SPV is not available, then a national reference guide will be used. If the value cannot be determined by the department through either source, then the person may obtain an appraisal. If a motor vehicle is 25 years or older, a person may obtain an appraisal to determine the value instead of using a national reference guide.(1) The appraisal must be on a form specified by the department from a Texas licensed motor vehicle dealer for the categories of motor vehicles that the dealer is licensed to sell or a Texas licensed insurance adjuster who may appraise any type of motor vehicle.(2) The appraisal must be dated and be submitted to the department within 30 days of the appraisal.(3) If the motor vehicle is 25 years or older and the appraised value of the vehicle is less than $4,000, the bond amount will be established from a value of $4,000.(4) If the motor vehicle is a trailer or semitrailer, the person may, as an alternative to an appraisal, have the bond amount established from a value of:(A) $4,000, if under 20 feet in length, or(B) $7,000, if 20 or more feet in length.(d) Vehicle identification number inspection. If the department has no motor vehicle record for the vehicle, the vehicle identification number must be verified by an inspection under Transportation Code §501.0321.(e) Required documentation. An applicant may apply for a bonded title if the applicant submits:(1) any evidence of ownership;(2) the original bond within 30 days of issuance;(3) the notice of determination within one year of issuance and the receipt for $15 paid to the department;(4) the documentation determining the value of the vehicle;(5) proof of the vehicle identification number inspection, as described in subsection (d) of this section, if the department has no motor vehicle record for the vehicle;(6) a weight certificate if the weight cannot otherwise be determined;(7) a release of lien, if the lien is less than ten years old; and(8) any other required documentation and fees.(f) Report of Judgment. The bond must require that the surety report payment of any judgment to the department within 30 days.</content><note type="source"><p>Source Note: The provisions of this §217.9 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective November 30, 2016, 41 TexReg 9337; amended to be effective August 31, 2022, 47 TexReg 5141; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scA/s217.10"><num value="217.10">§217.10</num><heading>Department Decisions on Titles and Appeals to the County</heading><content>(a) Department refusal or revocation of title. For purposes of Transportation Code, §501.052, the official record of the department's refusal to issue a title under its authority in Transportation Code, §501.051 is the department's notice of determination regarding the application. The official record of the department's revocation of a title is the entry of a revocation remark on the motor vehicle record in the department's Registration and Title System.(b) Department determination of ineligibility for bonded title. A department determination of ineligibility for bonded title is made under the authority of Transportation Code, §501.053 and is not a refusal to issue a title under Transportation Code, §501.051. An applicant that receives a notice of ineligibility for bonded title from the department is not eligible to pursue a hearing under Transportation Code, §501.052.</content><note type="source"><p>Source Note: The provisions of this §217.10 adopted to be effective January 1, 2026, 50 TexReg 8626.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scA/s217.11"><num value="217.11">§217.11</num><heading>Rescission, Cancellation or Revocation by Affidavit</heading><content>(a) Under Transportation Code §501.051(b), the department may rescind, cancel, or revoke an existing title or application for a title if a notarized or county stamped affidavit is completed and presented to the department within 90 days of initial sale containing all of the information required by Transportation Code §501.051(b)(1) - (4).(b) An affidavit must be accompanied by an odometer disclosure statement executed by the purchaser of the motor vehicle and acknowledged by the dealer if the vehicle was ever in the possession of the title applicant.</content><note type="source"><p>Source Note: The provisions of this §217.11 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective July 1, 2020, 45 TexReg 4354; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scA/s217.12"><num value="217.12">§217.12</num><heading>Fees</heading><content>(a) The department and the county will charge required fees, and only those fees provided by statute or by rule.(b) The $25 mechanic lien fee provided by Property Code, §70.006 may be charged once per vehicle.(c) There is no charge for issuance of title receipt or the duplicate title receipt at the time of application.</content><note type="source"><p>Source Note: The provisions of this §217.12 adopted to be effective March 12, 2015, 40 TexReg 1096.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scA/s217.13"><num value="217.13">§217.13</num><heading>Alias Certificate of Title</heading><content>(a) Authority to issue. Upon receipt of the exempt agency's affidavit for alias certificate of title properly executed by the executive administrator, certificate of title application, and evidence of ownership, the division director may authorize the issuance of an alias certificate of title for a vehicle used by an exempt law enforcement agency in covert criminal investigations.(b) Affidavit for alias certificate of title.(1) The affidavit for an alias certificate of title shall be in a form prescribed by the division director and must contain, but is not limited to, the following information:(A) the vehicle description;(B) the name of exempt agency;(C) a sworn statement that the vehicle will be used in covert criminal investigations; and(D) the signature of the executive administrator or an authorized designee as provided in paragraph (2) of this subsection.(2) The executive administrator of an exempt law enforcement agency, by annually filing an authorization with the division director, may appoint a staff designee to execute the affidavit for alias certificate of title. Upon the appointment of a new executive administrator or his designee, a new authorization must be filed.(c) Certificate of title application.(1) The application for certificate of title in the name of an alias shall be in a form prescribed by the division director and must contain, but is not limited to, the following information:(A) the vehicle description;(B) the odometer reading;(C) the empty weight;(D) the name and address of the alias; and(E) the name and address of the alias previous owner.(2) Notarization of the application for certificate of title in the name of an alias is not required.(d) Evidence of ownership. A certificate of title in the name of an alias will not be issued to an exempt law enforcement agency, including an agency of the federal government, unless such agency furnishes evidence of vehicle ownership.(e) Cancellation. An alias certificate of title will be cancelled if the vehicle for which it was issued ceases to be used by the exempt law enforcement agency in a covert criminal investigation.</content><note type="source"><p>Source Note: The provisions of this §217.13 adopted to be effective March 12, 2015, 40 TexReg 1096.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scA/s217.14"><num value="217.14">§217.14</num><heading>Exemptions from Title</heading><content>Vehicles eligible for machinery license plates and permit license plates in accordance with Transportation Code, §502.146 may not be titled under Transportation Code, Chapter 501.</content><note type="source"><p>Source Note: The provisions of this §217.14 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scA/s217.15"><num value="217.15">§217.15</num><heading>Title Issuance to Government Agency for Travel Trailer</heading><content>(a) A government agency may apply to the department for a title to a travel trailer purchased by or transferred to the government agency if the travel trailer is being used as temporary housing in response to a natural disaster or other declared emergency.(b) A government agency applying for a title under subsection (a) of this section must comply with §217.4(a), (c), and (d) of this title (relating to Initial Application for Title).(c) The department will issue a title to a government agency under this section without payment of a fee if the government agency is not applying for registration at the same time. If the government agency is also applying for registration, the government agency must pay any applicable fee under Transportation Code, Chapter 548 to the department at the time of application.</content><note type="source"><p>Source Note: The provisions of this §217.15 adopted to be effective January 2, 2020, 44 TexReg 8337; amended to be effective January 1, 2025, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scA/s217.16"><num value="217.16">§217.16</num><heading>Application for Title When Dealer Goes Out of Business</heading><content>(a) A person who purchased a vehicle from a dealer who is required to apply for a title on the purchaser's behalf under Transportation Code, §501.0234 may apply for title as prescribed by this section if the dealer has gone out of business and did not apply for title.(b) For purposes of this section, a dealer has gone out of business if:(1) the dealer's license has been closed or has expired; or(2) operations have ceased at the licensed location as determined by the department.(c) For purposes of this section, a person must obtain a letter on department letterhead stating a dealer has gone out of business. A person may request the letter by contacting the department, including a Regional Service Center, or a county tax assessor-collector's office.(d) An application under subsection (a) of this section must meet the requirements of §217.4 of this title (relating to Initial Application for Title) except the applicant:(1) must provide the sales contract, retail installment agreement, or buyer's order in lieu of evidence of vehicle ownership as described in §217.5(a) of this title (relating to Evidence of Motor Vehicle Ownership);(2) must provide the letter described by subsection (c) of this section; and(3) is not required to provide a release of lien if the only recorded lienholder is the dealer that has gone out of business.(e) If a title application under this section does not include a properly completed odometer disclosure statement, as required by Transportation Code, §501.072, the odometer brand will be recorded as "NOT ACTUAL MILEAGE."(f) The department will waive the payment of the following fees if the applicant can provide evidence showing the fee was paid to the dealer:(1) a title application fee under Transportation Code, §501.138;(2) delinquent transfer penalty under Transportation Code, §501.146;(3) all fees under Transportation Code, Chapter 502; and(4) the fee associated with the issuance of a license plate or set of license plates under Transportation Code, §503.063.</content><note type="source"><p>Source Note: The provisions of this §217.16 adopted to be effective March 1, 2020, 45 TexReg 1230; amended to be effective July 1, 2025, 49 TexReg 8980.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c217/scB"><num value="B">SUBCHAPTER B</num><heading>MOTOR VEHICLE REGISTRATION</heading><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.21"><num value="217.21">§217.21</num><heading>Purpose and Scope</heading><content>Transportation Code, Chapter 502, charges the department with the responsibility of registering vehicles operated on the public streets and highways of this state; maintaining vehicle registration records; and collecting and reporting statutory registration fees. For the department to perform these duties efficiently and effectively and to ensure proper application by motor vehicle registrants in accordance with statutory provisions, this subchapter prescribes the policies and procedures for the application and issuance of vehicle registration.</content><note type="source"><p>Source Note: The provisions of this §217.21 adopted to be effective March 12, 2015, 40 TexReg 1096.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.22"><num value="217.22">§217.22</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Affidavit for alias exempt registration--A form prescribed by the director that must be executed by an exempt law enforcement agency to request the issuance of exempt registration in the name of an alias.(2) Agent--A duly authorized representative possessing legal capacity to act for an individual or legal entity.(3) Alias--The name of a vehicle registrant reflected on the registration, different than the name of the legal owner of the vehicle.(4) Alias exempt registration--Registration issued under an alias to a specific vehicle to be used in covert criminal investigations by a law enforcement agency.(5) Axle load--The total load transmitted to the road by all wheels whose centers may be included between two parallel transverse vertical planes 40 inches apart, extending across the full width of the vehicle.(6) Border commercial zone--A commercial zone established under Title 49, C.F.R., Part 372 that is contiguous to the border with Mexico.(7) Bus--A motor vehicle used to transport persons and designed to accommodate more than 10 passengers, including the operator; or a motor vehicle, other than a taxicab, designed and used to transport persons for compensation.(8) Carrying capacity--The maximum safe load that a commercial vehicle may carry, as determined by the manufacturer.(9) Character--A numeric or alpha symbol displayed on a license plate.(10) County or city civil defense agency--An agency authorized by a commissioner's court order or by a city ordinance to provide protective measures and emergency relief activities in the event of hostile attack, sabotage, or natural disaster.(11) Current photo identification--A government-issued photo identification that is currently valid or is expired not more than 12 months, or a state-issued personal identification certificate issued to a qualifying person if the identification states that it has no expiration.(12) Digital license plate--As defined in Transportation Code, §504.151.(13) Digital license plate owner--A digital license plate owner is a person who purchases or leases a digital license plate from a department-approved digital license plate provider.(14) Director--The director of the Vehicle Titles and Registration Division, Texas Department of Motor Vehicles.(15) Division--Vehicle Titles and Registration Division.(16) Executive administrator--The director of a federal agency, the director of a Texas state agency, the sheriff of a Texas county, or the chief of police of a Texas city that by law possesses the authority to conduct covert criminal investigations.(17) Exempt agency--A governmental body exempted by statute from paying registration fees when registering motor vehicles.(18) Exempt license plates--Specially designated license plates issued to certain vehicles owned or controlled by exempt agencies. (19) Exhibition vehicle--(A) An assembled complete passenger car, truck, or motorcycle that:(i) is a collector's item;(ii) is used exclusively for exhibitions, club activities, parades, and other functions of public interest;(iii) does not carry advertising; and(iv) has a frame, body, and motor that is at least 25-years old; or(B) A former military vehicle as defined in Transportation Code, §504.502.(20) Fire-fighting equipment--Equipment mounted on fire-fighting vehicles used in the process of fighting fires, including, but not limited to, ladders and hoses.(21) Foreign commercial motor vehicle--A commercial motor vehicle, as defined by 49 C.F.R. §390.5, that is owned by a person or entity that is domiciled in or a citizen of a country other than the United States.(22) GPS--A global positioning system tracking device that can be used to determine the location of a digital license plate through data collection by means of a receiver in a digital license plate.(23) Highway construction project--That section of the highway between the warning signs giving notice of a construction area.(24) International symbol of access--The symbol adopted by Rehabilitation International in 1969 at its Eleventh World Congress of Rehabilitation of the Disabled.(25) Legend--A name, motto, slogan, or registration expiration notification that is centered horizontally at the bottom of the license plate.(26) Make--The trade name of the vehicle manufacturer.(27) Metal license plate--A non-digital license plate issued by the department under Transportation Code Chapter 502, 503, or Chapter 504.(28) Nonprofit organization--An unincorporated association or society or a corporation that is incorporated or holds a certificate of authority under the Business Organizations Code.(29) Nominating State Agency--A state agency authorized to accept and distribute funds from the sale of a specialty plate as designated by the nonprofit organization (sponsoring entity).(30) Optional digital license plate information--Any information authorized to be displayed on a digital license plate in addition to required digital license plate information when the vehicle is in park, including:(A) an emergency alert or other public safety alert issued by a governmental entity, including an alert authorized under Subchapter L, M, or P of Government Code Chapter 411;(B) vehicle manufacturer safety recall notices;(C) advertising; or(D) a parking permit.(31) Park--As defined in Transportation Code, §541.401. (32) Political subdivision--A county, municipality, local board, or other body of this state having authority to provide a public service.(33) Primary region of interest--The field on a metal or digital license plate with alphanumeric characters representing the plate number. The primary region of interest encompasses a field of 5.75 inches in width by 1.75 inches in height on metal license plates manufactured for motorcycles, mopeds, golf carts, or off-highway vehicles. The primary region of interest encompasses a field of 8.375 inches in width by 2.5625 inches in height on metal license plates manufactured for all other vehicles.(34) REAL ID--The minimum document requirements and issuance standards for federal recognition under the REAL ID Act of 2005, Public Law 109-13.(35) Registration period--A designated period during which registration is valid. A registration period begins on the first day of a calendar month and ends on the last day of a calendar month.(36) Required digital license plate information--The minimum information required to be displayed on a digital license plate: the registration expiration month and year (unless the vehicle is a token trailer as defined by Transportation Code, §502.001), the alphanumeric characters representing the plate number, the word "Texas," the registration expiration notification if the registration for the vehicle has expired; and the legend (if applicable).(37) Secondary region of interest--The field on a metal or digital license plate with the word "Texas" centered horizontally at the top of the plate. The secondary region of interest encompasses a field of 2.5 inches in width by 0.5625 inches in height on metal license plates manufactured for motorcycles, mopeds, golf carts, or off-highway vehicles. The secondary region of interest encompasses a field of 6 inches in width by 1.9375 inches in height on metal license plates manufactured for all other vehicles.(38) Service agreement--A contractual agreement that allows individuals or businesses to access the department's vehicle registration records.(39) Specialty license plate--A special design license plate issued by the department.(40) Specialty license plate fee--Statutorily or department required fee payable on submission of an application for a specialty license plate, symbol, tab, or other device, and collected in addition to statutory motor vehicle registration fees.(41) Sponsoring entity--An institution, college, university, sports team, or any other non-profit individual or group that desires to support a particular specialty license plate by coordinating the collection and submission of the prescribed applications and associated license plate fees or deposits for that particular license plate.(42) Street or suburban bus--A vehicle, other than a passenger car, used to transport persons for compensation exclusively within the limits of a municipality or a suburban addition to a municipality. (43) Tandem axle group--Two or more axles spaced 40 inches or more apart from center to center having at least one common point of weight suspension.(44) Unconventional vehicle--A vehicle built entirely as machinery from the ground up, that is permanently designed to perform a specific function, and is not designed to transport property.(45) United States birth certificate--An original or certified copy of a birth certificate issued by the appropriate vital statistics agency of a United States state, territory, or the District of Columbia indicating birth in the United States; or an original or a certified copy of a United States government-issued document indicating birth of a child born abroad to a United States citizen, including a Consular Report of Birth or Department of State Certification of Birth issued to a U.S. Citizen born abroad (FS 240, DS-1350, or FS 545).(46) Valid passport--(A) An unexpired passport or passport card issued by the United States government; or(B) An unexpired passport issued by the government of another country accompanied by one of the following documents issued by the United States Department of Homeland Security:(i) Form I-94, unless the Form I-94 shows that the bearer only has Parole status;(ii) a current permanent resident card; or (iii) an unexpired immigrant visa issued by the United States Department of Homeland Security.(47) Vehicle classification--The grouping of vehicles in categories for the purpose of registration, based on design, carrying capacity, or use.(48) Vehicle description--Information regarding a specific vehicle, including, but not limited to, the vehicle make, model year, body style, and vehicle identification number.(49) Vehicle identification number--A number assigned by the manufacturer of a motor vehicle or the department that describes the motor vehicle for purposes of identification.(50) Vehicle registration insignia--A license plate, symbol, tab, or other device issued by the department evidencing that all applicable fees have been paid for the current registration period and allowing the vehicle to be operated on the public highways.(51) Vehicle registration record--Information contained in the department's files that reflects, but is not limited to, the make, vehicle identification number, model year, body style, license number, and the name of the registered owner.(52) Volunteer fire department--An association that is organized for the purpose of answering fire alarms, extinguishing fires, and providing emergency medical services.</content><note type="source"><p>Source Note: The provisions of this §217.22 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective July 12, 2020 45 TexReg 4358; amended to be effective November 14, 2024, 49 TexReg 8980; amended to be effective March 5, 2026, 51 TexReg 1292.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.23"><num value="217.23">§217.23</num><heading>Initial Application for Vehicle Registration</heading><content>(a) An applicant for initial vehicle registration must file an application on a form prescribed by the department. The form will at a minimum require:(1) the signature of the owner;(2) the motor vehicle description, including, but not limited to, the motor vehicle's year, make, model, vehicle identification number, body style, carrying capacity for commercial motor vehicles, and empty weight;(3) the license plate number;(4) the odometer reading, or the word "exempt" if the motor vehicle is exempt from federal and state odometer disclosure requirements;(5) the name and complete address of the applicant; and(6) the name, mailing address, and date of any liens.(b) The application must be accompanied by the following:(1) evidence of vehicle ownership as specified in §217.5 of this title (relating to Evidence of Motor Vehicle Ownership), unless the vehicle has been issued a nonrepairable or salvage vehicle title in accordance with Transportation Code, Chapter 501, Subchapter E;(2) registration fees prescribed by law;(3) any local fees or other fees prescribed by law and collected in conjunction with registering a vehicle;(4) evidence of financial responsibility required by Transportation Code, §502.046, unless otherwise exempted by law;(5) the processing and handling fee prescribed by §217.183 of this title (relating to Fee Amount); and(6) any other documents or fees required by law.(c) An initial application for registration must be filed with the tax assessor-collector of the county in which the owner resides or any county tax assessor-collector who is willing to accept the application, except as provided in subsection (d) of this section.(d) An application for registration, as a prerequisite to filing an application for title, may be filed with the county tax assessor-collector in the county in which:(1) the owner resides;(2) the motor vehicle is purchased or encumbered; or(3) a county tax assessor-collector who is willing to accept the application.</content><note type="source"><p>Source Note: The provisions of this §217.23 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective August 8, 2016, 41 TexReg 5777; amended to be effective March 1, 2022, 47 TexReg 968; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.24"><num value="217.24">§217.24</num><heading>Vehicle Last Registered in Another Jurisdiction</heading><content>(a) The recorded owner of a vehicle that was last registered or titled in another jurisdiction and is subject to registration in this state may apply for registration if the owner cannot or does not wish to relinquish the negotiable out-of-state evidence of ownership to obtain a Texas title. On receipt of a form prescribed by the department and payment of the statutory fee for a title application and any other applicable fees, the department will issue a registration receipt to the applicant.(b) Registration receipt.(1) The receipt issued at the time of application may serve as proof of registration and evidences title to a motor vehicle for registration purposes only, but may not be used to transfer any interest or ownership in a motor vehicle or to establish a lien.(2) Information to be included on the form. The form will include the:(A) out-of-state title number, if applicable;(B) out-of-state license plate number, if applicable;(C) state or country that issued the out-of-state title or license plate;(D) lienholder name and address as shown on the out-of-state evidence, if applicable;(E) statement that negotiable evidence of ownership is not being surrendered; and(F) signature of the applicant or authorized agent of the applicant.(3) Accompanying documentation. An application for registration under this paragraph must be supported, at a minimum, by:(A) a completed application for registration, as specified in subsection (a) of this section;(B) presentation, but not surrender of, evidence from another jurisdiction demonstrating that legal evidence of ownership has been issued to the applicant as the motor vehicle's owner, such as a validated title, a registration receipt that is not more than six months past the date of expiration, a non-negotiable title, or written verification from the other jurisdiction;(C) the processing and handling fee prescribed by §217.183 of this title (relating to Fee Amount); and(D) any other documents or fees required by law.(4) Assignment. In instances in which the title or registration receipt is assigned to the applicant, an application for registration purposes only will not be processed. The applicant must apply for a title under Transportation Code, Chapter 501.</content><note type="source"><p>Source Note: The provisions of this §217.24 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective August 8, 2016, 41 TexReg 5777.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.25"><num value="217.25">§217.25</num><heading>Out-of-State Vehicles</heading><content>A vehicle brought to Texas from out-of-state must be registered within 30 days of the date on which the owner establishes residence or secures gainful employment, except as provided by Transportation Code, §502.090 and Transportation Code, §502.145. Accompanying a completed application, an applicant must provide:(1) an application for title as required by Transportation Code, Chapter 501, if the vehicle to be registered has not been previously titled in this state; and(2) any other documents or fees required by law.</content><note type="source"><p>Source Note: The provisions of this §217.25 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.26"><num value="217.26">§217.26</num><heading>Identification Required</heading><content>(a) Except as stated in subsections (b), (c), (g) and (h) of this section, an application for initial registration - including registration under Transportation Code, Chapter 502, Subchapters C or I; §502.146; a registration under §217.66 of this title (relating to Specialized License Plate for Registration of Rental Trailers); or a commercial vehicle registration under §217.46(b) of this title (relating to Commercial Vehicle Registration) - is not acceptable unless the applicant presents a current photo identification of the owner containing a unique identification number and expiration date. The current photo identification must be a:(1) driver's license or state identification certificate issued by a state or territory of the United States;(2) United States or foreign passport;(3) United States military identification card;(4) North Atlantic Treaty Organization identification or identification issued under a Status of Forces Agreement;(5) United States Department of Homeland Security, United States Citizenship and Immigration Services, or United States Department of State identification document; or(6) license to carry a handgun issued by the Texas Department of Public Safety under Government Code, Chapter 411, Subchapter H.(b) Except as stated in subsections (c), (g) and (h) of this section, - an application for initial registration under Transportation Code, Chapter 502- other than registration under Subchapters C or I of Chapter 502; §502.146; a registration under §217.66 of this title (relating to Specialized License Plate for Registration of Rental Trailers); or a commercial vehicle registration under §217.46(b) of this title (relating to Commercial Vehicle Registration) - is not acceptable unless the applicant presents one of the following for the owner of the vehicle:(1) a valid, unexpired driver's license or state identification certificate that complies with REAL ID and is not marked "limited term" or "temporary," issued by a state or territory of the United States; (2) a valid, unexpired driver's license or state identification certificate issued by a state that issues driver's licenses and state identification certificates only to individuals who are legally present in the United States;(3) a valid, unexpired driver's license or state identification certificate issued by a state or territory of the United States, accompanied by a United States birth certificate, United States Certificate of Naturalization (N-550 or N-570), or a United States Certificate of Citizenship (N-560 or N-561); (4) a valid passport; or(5) a valid, unexpired license to carry a handgun issued by the Texas Department of Public Safety under Government Code, Chapter 411, Subchapter H.(c) If the motor vehicle is titled in:(1) more than one name, then the identification of one owner under subsections (a), (b), or (c)(2) - (4) of this section, as applicable, must be presented;(2) the name of a leasing company, then:(A) proof of the Federal Employer Identification Number/Employee Identification Number (FEIN/EIN) of the leasing company must be submitted, written on the application, and can be entered into the department's titling system. The number must correspond to the name of the leasing company in which the vehicle is being titled; and(B) the leasing company may submit:(i) a current photo identification, required under subsection (a) of this section, of the lessee listed as the registrant; or(ii) a current photo identification, required under subsection (a) of this section, of the employee or authorized agent who signed the application for the leasing company, and the employee's or authorized agent's employee identification, letter of authorization written on the lessor's letterhead, or a printed business card. The printed business card, employee identification, or letter of authorization written on the lessor's letterhead must contain the name of the lessor, and the employee's or authorized agent's name must match the name on the current photo identification;(3) the name of a trust, then a current photo identification, required under subsection (a) of this section, of a trustee, or authorized trustee representative if the trustee is a legal entity, must be presented; or(4) the name of a business, government entity, or organization, then:(A) proof of the Federal Employer Identification Number/Employee Identification Number (FEIN/EIN) of the business, government entity, or organization must be submitted, written on the application, and can be entered into the department's titling system. The number must correspond to the name of the business, government entity, or organization in which the vehicle is being titled;(B) the employee or authorized agent must present a current photo identification, required under subsection (a) this section; and(C) the employee's or authorized agent's employee identification; letter of authorization written on the business', government entity's, or organization's letterhead; or a printed business card. The printed business card, employee identification, or letter of authorization written on the business', government entity's, or organization's letterhead must contain the name of the business, governmental entity, or organization, and the employee's or authorized agent's name must match the name on the current photo identification.(d) Within this section, an identification document such as a printed business card, letter of authorization, or power of attorney, may be an original or photocopy.(e) A person who holds a general distinguishing number issued under Transportation Code, Chapter 503 is exempt from submitting to the county tax assessor-collector, but must retain:(1) the owner's identification, as required under this section; and(2) authorization to sign, as required under this section. (f) A person who holds a general distinguishing number issued under Transportation Code, Chapter 503 is not required to submit photo identification or authorization for an employee or agent signing a title assignment with a secure power of attorney.(g) This section does not apply to non-titled vehicles.(h) This section does not apply to:(1) apportioned registration under the International Registration Plan;(2) exempt vehicle registration under Transportation Code, Chapter 502, Subchapter J, or Transportation Code, §502.0025; or(3) registration of off-highway vehicles owned by the state, a county, or a municipality under Transportation Code §502.140(c).</content><note type="source"><p>Source Note: The provisions of this §217.26 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective August 8, 2016, 41 TexReg 5766; amended to be effective November 14, 2024, 49 TexReg 8980; amended to be effective March 5, 2026, 51 TexReg 1292.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.27"><num value="217.27">§217.27</num><heading>Vehicle Registration Insignia</heading><content>(a) On receipt of a complete initial application for registration with the accompanying documents and fees, the department will issue vehicle registration insignia to be displayed on or kept in the vehicle for which the registration was issued for the current registration period.(1) If the vehicle has a windshield, the vehicle registration insignia shall be attached to the inside lower left corner of the vehicle's front windshield in a manner that will not obstruct the vision of the driver, unless the vehicle is registered under Transportation Code, Chapter 504, Subchapter B-1.(2) If the vehicle has no windshield, the vehicle registration insignia shall be attached to the rear license plate unless the vehicle is registered under Transportation Code, Chapter 504, Subchapter B-1, except that registration receipts, retained inside the vehicle, may provide the record of registration for vehicles with permanent trailer plates.(3) If the vehicle is registered under Transportation Code, Chapter 504, Subchapter B-1, the registration receipt, symbol, tab, or other device prescribed by and issued by the department must be retained with the vehicle and may provide the record of registration for vehicles with a digital license plate. The expiration month and year must appear digitally on the electronic visual display of the rear digital license plate.(4) If the vehicle is registered as a former military vehicle as prescribed by Transportation Code, §504.502, the vehicle's registration number shall be displayed instead of displaying a symbol, tab, or license plate.(A) Former military vehicle registration numbers shall be displayed on a prominent location on the vehicle in numbers and letters of at least two inches in height.(B) To the extent possible, the location and design of the former military vehicle registration number must conform to the vehicle's original military registration number.(b) Unless otherwise prescribed by law, each vehicle registered under this subchapter:(1) must display two license plates that are clearly visible, readable, and legible, one at the exterior front and one at the exterior rear of the vehicle that are securely fastened at the exterior front and rear of the vehicle in an upright horizontal position of not less than 12 inches from the ground, measuring from the bottom; or(2) must display one plate that is securely fastened at or as close as practical to the exterior rear of the vehicle in a position not less than 12 inches from the ground, measuring from the bottom if the vehicle is a road tractor, motorcycle, trailer or semitrailer, except that a vehicle described by Transportation Code, §621.2061 may place the rear plate so that it is clearly visible, readable, and legible.(c) Each vehicle registered under this subchapter must display license plates:(1) assigned by the department for the period; or(2) validated by a registration insignia issued by the department for a registration period consisting of 12 consecutive months at the time of application for registration, except that:(A) vehicles described by Transportation Code, §502.0024 may obtain a registration insignia for a period consisting of 12, 24, 36, 48 or 60 consecutive months on payment of all fees for each full year of registration; and(B) vehicles may be registered for 24 consecutive months in accordance with Transportation Code, §502.044(a-1) on payment of all fees for each year of registration. (d) The department may cancel any license plate issued with a personalized license plate number if the department subsequently determines or discovers that the personalized license plate number did not comply with this section when the license plate was issued, or if due to changing language usage, meaning, or interpretation, the personalized license plate number no longer complies with this section. When reviewing a personalized license plate number, the department need not consider the applicant's subjective intent or declared meaning. The department will not issue any license plate containing a personalized license plate number that meets one or more of the following criteria:(1) The license plate number conflicts with the department's current or proposed general issue license plate numbering system.(2) The director or the director's designee finds that the personalized license plate number may be considered objectionable. An objectionable license plate number may include words, phrases, or slang in any language; phonetic, numeric, or reverse spelling; acronyms; patterns viewed in mirror image; or code that only a small segment of the community may be able to readily decipher. An objectionable pattern may be viewed as:(A) indecent (defined as including a direct reference or connotation to a sexual act, sexual body parts, excreta, or sexual bodily fluids or functions. Additionally, the license plate number "69" is prohibited unless used with the full year (1969) or in combination with a reference to a vehicle;(B) vulgar, directly or indirectly (defined as profane, swear, or curse words);(C) derogatory, directly or indirectly (defined as an expression that is demeaning to, belittles, or disparages any person, group, race, ethnicity, nationality, gender, or sexual orientation. "Derogatory" may also include a reference to an organization that advocates the expressions described in this subparagraph);(D) a direct or indirect negative instruction or command directed at another individual related to the operation of a motor vehicle;(E) a direct or indirect reference to gangs, illegal activities, implied threats of harm, or expressions that describe, advertise, advocate, promote, encourage, glorify, or condone violence, crime, or unlawful conduct;(F) a direct or indirect reference to controlled substances or the physiological state produced by such substances, intoxicated states, or a direct or indirect reference that may express, describe, advertise, advocate, promote, encourage, or glorify such substances or states;(G) a direct representation of law enforcement or other governmental entities, including any reference to a public office or position exclusive to government; or(H) a pattern that could be misread by law enforcement.(3) The license plate number is currently on a license plate issued to another owner.(e) Notwithstanding the provisions of this section, the department may issue license plates with personalized license plate numbers that refer to:(1) military branches, military rank, military units, military equipment, or status; or(2) institutions of higher education, including military academies, whether funded privately, by the state, or by the federal government.(f) A decision to cancel or not to issue a license plate with a personalized license plate number under subsection (d) of this section may be appealed to the executive director of the department or the executive director's designee within 20 days of notification of the cancellation or non-issuance. All appeals must be in writing, and the requesting party may include any written arguments, but shall not be entitled to a contested case hearing. The executive director or the executive director's designee will issue a decision no later than 30 days after the department receives the appeal, unless additional information is sought from the requestor, in which case the time for decision is tolled until the additional information is provided. The decision of the executive director or the executive director's designee is final and may not be appealed to the board. An appeal to the executive director or the executive director's designee is denied by operation of law 31 days from the receipt of the appeal, or if the requestor does not provide additional requested information within ten days of the request.(g) The provisions of subsection (a) of this section do not apply to vehicles registered with annual license plates issued by the department.(h) A person whose initial application has been denied will receive a refund if the denial is not appealed in accordance with subsection (f) of this section. If an existing license plate with a personalized license plate number has been canceled, the person may choose a new personalized license plate number that will be valid for the remainder of the term, or the remaining term of the canceled license plate will be forfeited.</content><note type="source"><p>Source Note: The provisions of this §217.27 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective June 22, 2015, 40 TexReg 4003; amended to be effective September 10, 2018, 43 TexReg 5811; amended to be effective January 1, 2019, 43 TexReg 8636; amended to be effective January 2, 2020, 44 TexReg 8338; amended to be effective July 12, 2020, 45 TexReg 4358; amended to be effective November 2, 2022, 47 TexReg 7288; amended to be effective January 1, 2025, 49 TexReg 8980; amended to be effective October 9, 2025, 50 TexReg 6517.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.28"><num value="217.28">§217.28</num><heading>Vehicle Registration Renewal</heading><content>(a) To renew vehicle registration, a vehicle owner must apply to the tax assessor-collector of the county in which the owner resides or a county tax assessor-collector who is willing to accept the application.(b) The department will send a registration renewal notice, indicating the proper registration fee and the month and year the registration expires, to each vehicle owner prior to the expiration of the vehicle's registration.(c) The registration renewal notice should be returned by the vehicle owner to the county tax assessor-collector in the county in which the owner resides or a county tax assessor-collector who is willing to accept the application, or to that tax assessor-collector's deputy, either in person or by mail, unless the vehicle owner renews via the Internet. The renewal notice must be accompanied by the following documents and fees:(1) registration renewal fees prescribed by law;(2) any local fees or other fees prescribed by law and collected in conjunction with registration renewal; and(3) evidence of financial responsibility required by Transportation Code, §502.046, unless otherwise exempted by law.(d) If a registration renewal notice is lost, destroyed, or not received by the vehicle owner, the vehicle may be registered if the owner presents personal identification acceptable to the county tax assessor-collector or via the Internet. Failure to receive the notice does not relieve the owner of the responsibility to renew the vehicle's registration.(e) Renewal of expired vehicle registrations.(1) If the owner has been arrested or cited for operating the vehicle without valid registration then a 20% delinquency penalty is due when registration is renewed, the full annual fee will be collected, and the vehicle registration expiration month will remain the same.(2) If the county tax assessor-collector or the department determines that a registrant has a valid reason for being delinquent in registration, the vehicle owner will be required to pay for 12 months' registration. Renewal will establish a new registration expiration month that will end on the last day of the eleventh month following the month of registration renewal.(3) If the county tax assessor-collector or the department determines that a registrant does not have a valid reason for being delinquent in registration, the full annual fee will be collected and the vehicle registration expiration month will remain the same.(4) Specialty license plates, symbols, tabs, or other devices may be prorated as provided in §217.45(d)(2) of this title (relating to Specialty License Plates, Symbols, Tabs, and Other Devices).(5) Evidence of a valid reason may include receipts, passport dates, and military orders. Valid reasons may include:(A) extensive repairs on the vehicle;(B) the person was out of the country;(C) the vehicle is used only for seasonal use;(D) military orders;(E) storage of the vehicle;(F) a medical condition such as an extended hospital stay; and(G) any other reason submitted with evidence that the county tax assessor-collector or the department determines is valid.(6) The operation of a vehicle with an expired registration that has been stored or otherwise not in operation that is driven only to an inspection station for the purpose of obtaining an inspection, if applicable, required for registration, will not affect the determination of whether the registrant has a valid or invalid reason for being delinquent.(f) For purposes of Transportation Code §502.407(c), the county tax assessor-collector's office of the county in which the owner resides is closed for a protracted period of time if the county tax assessor-collector's office has notified the department that it is closed or will be closed for more than one week.</content><note type="source"><p>Source Note: The provisions of this §217.28 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective December 4, 2016, 41 TexReg 9335; amended to be effective March 1, 2022, 47 TexReg 968; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.29"><num value="217.29">§217.29</num><heading>Vehicle Registration Renewal via Internet</heading><content>(a) Internet registration renewal program. The department will maintain a uniform Internet registration renewal process. This process will provide for the renewal of vehicle registrations via the Internet and will be in addition to vehicle registration procedures provided for in §217.28 of this title (relating to Vehicle Registration Renewal). The Internet registration renewal program will be facilitated by a third-party vendor.(b) County participation in program. All county tax assessor-collectors shall process registration renewals through an online system designated by the department.(c) Eligibility of individuals for participation. To be eligible to renew a vehicle's registration via the Internet, the vehicle owner must meet all criteria for registration renewal outlined in this subchapter and in Transportation Code, Chapter 502.(d) Information to be submitted by vehicle owner. A vehicle owner who renews registration via the Internet must submit or verify the following information:(1) registrant information, including the vehicle owner's name and county of residence;(2) vehicle information, including the license plate number of the vehicle to be registered;(3) insurance information, including the name of the insurance company, the name of the insurance company's agent (if applicable), the telephone number of the insurance company or agent (local or toll free number serviced Monday through Friday 8:00 a.m. to 5:00 p.m.), the insurance policy number, and representation that the policy meets all applicable legal standards;(4) credit card information, including the type of credit card, the name appearing on the credit card, the credit card number, and the expiration date; and(5) other information prescribed by rule or statute.(e) Duties of the county. A county tax assessor-collector shall:(1) accept electronic payment for vehicle registration renewal via the Internet;(2) execute an agreement with the department as provided by the director;(3) process qualified Internet registration renewal transactions as submitted by the third-party vendor;(4) communicate with the third-party vendor and applicants via email, regular mail, or other means, as specified by the director;(5) reject applications that do not meet all requirements set forth in this chapter, and in Transportation Code, Chapter 502; and(6) register each vehicle for a 12-month period.(f) Duties of the department. For vehicle registration renewals that are submitted via the Internet, the department and its centralized third-party vendor shall promptly facilitate and mail vehicle registration insignias to applicants.</content><note type="source"><p>Source Note: The provisions of this §217.29 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective August 8, 2016, 41 TexReg 5777; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.30"><num value="217.30">§217.30</num><heading>Refusal to Renew Registration for Delinquent Child Support</heading><content>(a) Placement of denial flag. On receipt of a notice issued under Family Code, Chapter 232, for the suspension or nonrenewal of a motor vehicle registration, the department will place a registration denial flag on the motor vehicle record of the child support obligor as reported by the child support agency.(b) Refusal to renew registration. While a motor vehicle record is flagged, the county tax-assessor collector shall refuse to renew the registration of the associated motor vehicle.(c) Removal of denial flag. The department will remove the registration denial flag on receipt of a removal notice issued by a child support agency under Family Code, Chapter 232.</content><note type="source"><p>Source Note: The provisions of this §217.30 adopted to be effective March 12, 2015, 40 TexReg 1096.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.31"><num value="217.31">§217.31</num><heading>Heavy Vehicle Use Tax</heading><content>(a) As applicable, an applicant must provide proof of payment of the heavy vehicle use tax imposed by 26 U.S.C. §4481, et seq. and 26 C.F.R. Part 41 with an application under this chapter as required by 26 C.F.R. §41.6001-2.(b) The department adopts by reference 26 C.F.R. §41.6001-2.</content><note type="source"><p>Source Note: The provisions of this §217.31 adopted to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.32"><num value="217.32">§217.32</num><heading>Replacement of License Plates, Symbols, Tabs, and Other Devices</heading><content>(a) When a metal license plate, symbol, tab, or other registration device is lost, stolen, mutilated, or needs to be replaced for cosmetic or readability reasons, a metal license plate replacement may be obtained from any county tax assessor-collector upon:(1) the payment of the statutory replacement fee prescribed by Transportation Code, §502.060 or §504.007; and(2) the provision of a signed statement, on a form prescribed by the department, that states:(A) the license plate, symbol, tab, or other registration device furnished for the described vehicle has been lost, stolen, mutilated, or needs to be replaced for cosmetic or readability reasons, and if recovered, will not be used on any other vehicle; and(B) the replaced license plate, symbol, tab, or other device will only be used on the vehicle to which it was issued.(b) If the owner remains in possession of any part of the lost, stolen, or mutilated metal license plate, symbol, tab, or other registration device, that remaining part must be removed and surrendered to the department on issuance of the replacement and request by the county tax assessor-collector.</content><note type="source"><p>Source Note: The provisions of this §217.32 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective August 8, 2016, 41 TexReg 5777; amended to be effective July 12, 2020, 45 TexReg 4358.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.33"><num value="217.33">§217.33</num><heading>Commercial Farm Motor Vehicles, Farm Trailers, and Farm Semitrailers</heading><content>(a) An applicant must provide a properly completed application for farm license plates. Except as provided by subsection (d) of this section, the application must be accompanied by proof of the applicant's Texas Agriculture or Timber Exemption Registration Number issued by the Texas Comptroller of Public Accounts. Proof of the registration number must be:(1) legible;(2) current; and(3) in the name of the person or dba in which the vehicle is or will be registered, pursuant to Transportation Code, §502.146 and §502.433.(b) A registration renewal of farm license plates must be accompanied by proof of the applicant's Texas Agriculture or Timber Exemption Registration Number issued by the Texas Comptroller of Public Accounts.(c) In accordance with Transportation Code, §502.146 and §502.433, an applicant's Texas Agriculture or Timber Exemption Registration Number may be verified through the online system established by the Comptroller.(d) A farmers' cooperative society incorporated under Agriculture Code, Chapter 51, or a marketing association organized under Agriculture Code, Chapter 52 applying for or renewing the registration of farm license plates under this section is not required to submit proof of the applicant's Texas Agriculture or Timber Exemption Registration issued by the Texas Comptroller of Public Accounts.</content><note type="source"><p>Source Note: The provisions of this §217.33 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective August 8, 2016, 41 TexReg 5766; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.35"><num value="217.35">§217.35</num><heading>Neighborhood Electric Vehicle</heading><content>A neighborhood electric vehicle operated on a residential street, roadway, or public highway in accordance with Transportation Code, §551.303:(1) must comply with the evidence of financial responsibility requirements established in Transportation Code, §502.046;(2) must display a "slow-moving-vehicle emblem" if it meets the definition of a "slow-moving vehicle" as described in Transportation Code, §547.001; and(3) is subject to all traffic and other laws applicable to motor vehicles.</content><note type="source"><p>Source Note: The provisions of this §217.35 adopted to be effective March 12, 2015, 40 TexReg 1096.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.36"><num value="217.36">§217.36</num><heading>Refusal to Register by Local Government and Record Notation</heading><content>(a) Enforcement of traffic warrant. A municipality may enter into a contract with the department under Government Code, Chapter 791, to indicate in the state's motor vehicle records that the owner of the vehicle is a person for whom a warrant of arrest is outstanding for failure to appear or who has failed to pay a fine on a complaint involving a violation of a traffic law. In accordance with Transportation Code, §702.003, a county tax assessor-collector may refuse to register a motor vehicle if such a failure is indicated in the motor vehicle record for that motor vehicle. A municipality is responsible for obtaining the agreement of the county in which the municipality is located to refuse to register motor vehicles for failure to pay civil penalties imposed by the municipality.(b) Refusal to register vehicle in certain counties. A county may enter into a contract with the department under Government Code, Chapter 791 to indicate in the state's motor vehicle records that the owner of the vehicle has failed to pay a fine, fee, or tax that is past due. In accordance with Transportation Code, §502.010, a county tax assessor-collector may refuse to register a motor vehicle if such a failure is indicated in the motor vehicle record for that motor vehicle.(c) Record notation. A contract between the department and a county, municipality, or local authority entered into under Transportation Code §502.010 or Transportation Code §702.003 will contain the terms set out in this subsection.(1) To place or remove a registration denial flag on a vehicle record, the contracting entity must submit data electronically by secure file transfer protocol or other acceptable submission medium as determined by the department in a format prescribed by the department.(2) The information submitted by the contracting entity will include, at a minimum, the vehicle identification number and the license plate number of the affected vehicle.(3) If the contracting entity data submission contains bad or corrupted data, the submission medium will be returned to the contracting entity with no further action by the department.(4) The secure file transfer protocol or other submission medium must be submitted to the department from a single source within the contracting entity.(5) The submission of a secure file transfer protocol or other submission medium to the department by a contracting entity constitutes a certification by that entity that it has complied with all applicable laws.</content><note type="source"><p>Source Note: The provisions of this §217.36 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective March 1, 2022, 47 TexReg 968; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.37"><num value="217.37">§217.37</num><heading>Fees</heading><content>The department and the county will charge required fees, and only those fees provided by statute or rule.</content><note type="source"><p>Source Note: The provisions of this §217.37 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.38"><num value="217.38">§217.38</num><heading>Registration Fee Credit: Application</heading><content>An application for registration fee credit must be accompanied by:(1) the current metal license plate(s) and license receipt issued for the destroyed vehicle;(2) the negotiable certificate of title covering the destroyed vehicle; and(3) evidence that the vehicle has been destroyed to such an extent that it cannot thereafter be operated on the highways.</content><note type="source"><p>Source Note: The provisions of this §217.38 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective July 12, 2020, 45 TexReg 4358.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.39"><num value="217.39">§217.39</num><heading>Registration Fee Credit: Nontransferable</heading><content>A registration fee credit voucher will be issued only to the person whose name appears as the owner of the vehicle on the registration and title records of the Vehicle Titles and Registration Division at the time the vehicle is destroyed. Registration fee credit vouchers are nontransferable and are not redeemable for cash under any circumstances.</content><note type="source"><p>Source Note: The provisions of this §217.39 adopted to be effective March 12, 2015, 40 TexReg 1096.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.40"><num value="217.40">§217.40</num><heading>Special Registrations</heading><content>(a) Purpose and scope. Transportation Code, Chapter 502, Subchapters C and I, charge the department with the responsibility of issuing special registration permits and special registration license plates, which shall be recognized as legal registration for the movement of motor vehicles not authorized to travel on Texas public highways for lack of registration or for lack of reciprocity with the state or country in which the vehicles are registered. For the department to efficiently and effectively perform these duties, this section prescribes the policies and procedures for the application and the issuance of special registration permits and special registration license plates.(b) Permit categories. The department will issue the following categories of special registration permits.(1) Additional weight permits in accordance with Transportation Code, §502.434.(A) A permit will not be issued unless the registration fee for hauling the additional weight has been paid prior to the actual hauling.(B) An applicant must provide proof of the applicant's Texas Agriculture or Timber Exemption Registration Number issued by the Texas Comptroller of Public Accounts. Proof of the registration number must be:(i) legible;(ii) current;(iii) in the name of the person or dba in which the vehicle is or will be registered; and(iv) verifiable through the online system established by the Comptroller.(2) Annual permits in accordance with Transportation Code, §502.093.(A) The department will issue annual permits:(i) for a 12-month period designated by the department which begins on the first day of a calendar month and expires on the last day of the last calendar month in that annual registration period; and(ii) to each vehicle or combination of vehicles for the registration fee prescribed by weight classification in Transportation Code, §502.253 and §502.255.(B) The following exemptions apply to vehicles displaying annual permits. Currently registered foreign semitrailers having a gross weight in excess of 6,000 pounds used or to be used in combination with commercial motor vehicles or truck tractors having a gross vehicle weight in excess of 10,000 pounds are exempted from the requirements to pay the token fee and display the associated distinguishing license plate provided for in Transportation Code, §502.255. An annual permit is required for the power unit only. For vehicles registered in combination, the combined gross weight may not be less than 18,000 pounds.(C) Upon approval of an application, the department will issue one license plate for a trailer, semitrailer, or foreign commercial motor vehicle as defined in Transportation Code, §648.001(4). The license plate issued to a truck-tractor shall be installed on the front of the truck-tractor. For other types of vehicles, the license plate issued shall displayed as required by §217.27(b) of this title (relating to Vehicle Registration Insignia).(3) 72-hour permits and 144-hour permits in accordance with Transportation Code, §502.094.(c) License plate categories. The department will issue the following categories of special registration license plates.(1) One-trip license plates in accordance with Transportation Code, §502.095.(A) A one-trip license plate may not be issued for a trip which both originates and terminates outside Texas.(B) A laden motor vehicle or a laden commercial vehicle cannot display a one-trip license plate. If the vehicle is unregistered, it must operate with a 72-hour or 144-hour permit.(C) A one-trip license plate must be displayed as required by §217.27(b) of this title (relating to Vehicle Registration Insignia).(2) 30-day license plates in accordance with Transportation Code, §502.095.(A) A vehicle operated on a 30-day license plate is not restricted to a specific route. The 30-day license plate is available for:(i) passenger vehicles;(ii) private buses;(iii) trailers and semitrailers with a gross weight not exceeding 10,000 pounds;(iv) light commercial vehicles not exceeding a gross weight of 10,000 pounds; and(v) a commercial vehicle exceeding 10,000 pounds, provided the vehicle is operated unladen.(B) A 30-day license plate must be displayed as required by §217.27(b) of this title (relating to Vehicle Registration Insignia).(d) Application process.(1) Procedure. An owner who wishes to apply for a special registration permit or special registration license plate for a vehicle which is otherwise required to be registered in accordance with this subchapter, must do so on a form prescribed by the department.(2) Form requirements. The application form will at a minimum require:(A) the signature of the owner;(B) the name and complete address of the applicant; and(C) the vehicle description.(3) Fees and documentation. The application must be accompanied by:(A) statutorily prescribed fees.(B) evidence of financial responsibility:(i) as required by Transportation Code, Chapter 502, Subchapter B, provided that all policies written for the operation of motor vehicles must be issued by an insurance company or surety company authorized to write motor vehicle liability insurance in Texas; or(ii) if the applicant is a motor carrier as defined by §218.2 of this title (relating to Definitions), indicating that the vehicle is registered in compliance with Chapter 218, Subchapter B of this title (relating to Motor Carrier Registration); and(C) any other documents or fees required by law.(4) Place of application.(A) All applications for annual permits must be submitted directly to the department for processing and issuance.(B) Additional weight permits may be obtained by making application with the department through the county tax assessor-collectors' offices.(C) 72-hour and 144-hour permits, one-trip license plates, and 30-day license plates may be obtained by making application either with the department or the county tax assessor-collectors' offices.(e) Receipt for special registration permit or special registration license plate in lieu of registration. A receipt will be issued for each special registration permit or special registration license plate in lieu of registration to be carried in the vehicle during the time the special registration permit or special registration license plate is valid. If the receipt is lost or destroyed, the owner must obtain a duplicate from the department or from the county office. The fee for the duplicate receipt is the same as the fee required by Transportation Code, §502.058.(f) Transfer of special registration permits or special registration license plates.(1) Special registration permits and special registration license plates are non-transferable between vehicles and/or owners.(2) If the owner of a vehicle displaying a special registration permit or a special registration license plate disposes of the vehicle during the time the permit or license plate is valid, the permit or license plate must be returned to the county tax assessor-collector office or department immediately.(g) Replacement permits. Vehicle owners displaying annual permits may obtain replacement permits if an annual permit is lost, stolen, or mutilated.(1) The fee for a replacement annual permit is the same as for a replacement number plate, symbol, tab, or other device as provided by Transportation Code, §502.060.(2) The owner shall apply directly to the department in writing for the issuance of a replacement annual permit. Such request should include a copy of the registration receipt and replacement fee.(h) Agreements with other jurisdictions. In accordance with Transportation Code, §502.091, and Chapter 648, the executive director of the department may enter into a written agreement with an authorized officer of a state, province, territory, or possession of a foreign country to provide for the exemption from payment of registration fees by nonresidents, if residents of this state are granted reciprocal exemptions. The executive director may enter into such agreement only upon:(1) the approval of the governor; and(2) making a determination that the economic benefits to the state outweigh all other factors considered.(i) Border commercial zones.(1) Texas registration required. A vehicle located in a border commercial zone must display a valid Texas registration if the vehicle is owned by a person who:(A) owns a leasing facility or a leasing terminal located in Texas; and(B) leases the vehicle to a foreign motor carrier.(2) Exemption for trips of short duration. Except as provided by paragraph (1) of this subsection, a foreign commercial vehicle operating in accordance with Transportation Code, Chapter 648 is exempt from the display of a temporary registration permit if:(A) the vehicle is engaged solely in the transportation of cargo across the border into or from a border commercial zone;(B) for each load of cargo transported the vehicle remains in this state for:(i) not more than 24 hours; or(ii) not more than 48 hours, if:(I) the vehicle is unable to leave this state within 24 hours because of circumstances beyond the control of the motor carrier operating the vehicle; and(II) all financial responsibility requirements applying to this vehicle are satisfied;(C) the vehicle is registered and licensed as required by the country in which the person that owns the vehicle is domiciled or is a citizen as evidenced by a valid metal license plate attached to the front or rear exterior of the vehicle; and(D) the country in which the person who owns the vehicle is domiciled or is a citizen provides a reciprocal exemption for commercial motor vehicles owned by residents of Texas.(3) Exemption due to reciprocity agreement. Except as provided by paragraph (1) of this subsection, a foreign commercial motor vehicle in a border commercial zone in this state is exempt from the requirement of obtaining a Texas registration if the vehicle is currently registered in another state of the United States or a province of Canada with which this state has a reciprocity agreement that exempts a vehicle that is owned by a resident of this state and that is currently registered in this state from registration in the other state or province.</content><note type="source"><p>Source Note: The provisions of this §217.40 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective August 8, 2016, 41 TexReg 5766; amended to be effective December 4, 2016, 41 TexReg 9335; amended to be effective March 1, 2020, 45 TexReg 1230; amended to be effective July 1, 2025, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.41"><num value="217.41">§217.41</num><heading>Disabled Person License Plates and Disabled Parking Placards.</heading><content>(a) Purpose. Transportation Code, Chapters 504 and 681, charge the department with the responsibility for issuing specially designed license plates and disabled parking placards for disabled persons. For the department to perform these duties efficiently and effectively, this section prescribes the policies and procedures for the application, issuance, and renewal of disabled person license plates and disabled parking placards.(b) Issuance.(1) For purposes of this section, "disabled person" means a person eligible for issuance of a license plate bearing the International Symbol of Access under Transportation Code, §504.201, including a qualifying disabled veteran under Transportation Code, §504.202(b-1) and a qualifying disabled peace officer under Transportation Code, §504.2025. (2) Disabled person license plates.(A) Eligibility. In accordance with Transportation Code, §504.201; §504.202(b-1) and (b-2); and §504.2025, the department will issue specially designed license plates displaying the International Symbol of Access to permanently disabled persons or their transporters instead of general issue license plates. As satisfactory proof of eligibility, an organization that transports disabled veterans who would qualify for license plates issued under Transportation Code, §504.202(b-1) must provide a written statement from the veteran's county service officer of the county in which a vehicle described by Transportation Code, §504.202(c) is registered or by the Department of Veterans Affairs that:(i) the vehicle is used exclusively to transport veterans of the United States armed forces who have suffered, as a result of military service, a service-connected disability;(ii) the vehicle regularly transports veterans who are eligible to receive license plates under Subsection (b-1); and(iii) the veterans are not charged for the transportation. (B) Specialty license plates. The department will issue disabled person specialty license plates displaying the International Symbol of Access that can accommodate the identifying insignia and that are issued in accordance with §217.43 of this title (relating to Military Specialty License Plates) or §217.45 of this title (relating to Specialty License Plates, Symbols, Tabs, and Other Devices). (C) License plate number. Disabled person license plates will bear a license plate number assigned by the department or will bear a personalized license plate number issued in accordance with §217.43 or §217.45 of this title.(D) General issue license plate option for qualifying disabled veterans and disabled peace officers. In accordance with Transportation Code, §504.202(h) and §504.2025(h), qualifying disabled veterans and disabled peace officers may elect to receive general issue license plates without paying license plate fees. (3) Windshield disabled parking placards.(A) Issuance. The department will issue removable windshield disabled parking placards to temporarily or permanently disabled persons and to the transporters of permanently disabled persons, as provided under Transportation Code, §§504.201, 504.202 (b-1) and (b-2), 504.2025, and 681.004.(B) Display. A person who has been issued a windshield disabled parking placard shall hang the placard from a vehicle's rearview mirror when the vehicle is parked in a disabled person parking space or shall display the placard on the center portion of the dashboard if the vehicle does not have a rearview mirror.(c) Renewal of disabled person license plates. Disabled person license plates are valid for a period of 12 months from the date of issuance and are renewable as specified in §§217.28 of this title (relating to Vehicle Registration Renewal), 217.43, and 217.45 of this title.(d) Replacement.(1) License plates. If a disabled person metal license plate is lost, stolen, or mutilated, the owner may obtain a replacement metal license plate by applying with a county tax assessor-collector.(A) Accompanying documentation. To replace disabled person metal license plates, the owner must present the current year's registration receipt and personal identification acceptable to the county tax assessor-collector.(B) Absence of accompanying documentation. If the current year's registration receipt is not available and the county tax assessor-collector cannot verify that the disabled person metal license plates were issued to the owner, the owner must reapply in accordance with this section.(2) Disabled parking placards. If a disabled parking placard becomes lost, stolen, or mutilated, the owner may obtain a new disabled parking placard in accordance with this section.(e) Transfer of disabled person license plates and disabled parking placards.(1) License plates.(A) Transfer between persons. Disabled person license plates may not be transferred between persons. An owner who sells or trades a vehicle to which disabled person license plates have been issued shall remove the disabled person license plates from the vehicle. The owner shall return the license plates to the department and shall obtain appropriate replacement license plates to place on the vehicle prior to any transfer of ownership.(B) Transfer between vehicles. Disabled person license plates may be transferred between vehicles if the county tax assessor-collector or the department can verify the plate ownership and the owner of the vehicle is a disabled person or the vehicle is used to transport a disabled person.(i) Plate ownership verification may include:(I) a Registration and Title System (RTS) inquiry;(II) a copy of the department application for disabled person license plates; or(III) the owner's current registration receipt.(ii) An owner who sells or trades a vehicle with disabled person license plates must remove the plates from the vehicle.(iii) The department will provide a form that persons may use to facilitate a transfer of disabled person license plates between vehicles.(2) Disabled parking placards.(A) Transfer between vehicles. Disabled parking placards may be displayed in any vehicle driven by the disabled person or in which the disabled person is a passenger.(B) Transfer between persons. Disabled parking placards may not be transferred between persons.(f) Seizure and revocation of disabled parking placard.(1) If a law enforcement officer seizes and destroys a disabled parking placard under Transportation Code, §681.012, the officer shall notify the department by email.(2) The person to whom the seized disabled parking placard was issued may apply for a new disabled parking placard by submitting an application to the county tax assessor-collector of the county in which the person with the disability resides or in which the applicant is seeking medical treatment.</content><note type="source"><p>Source Note: The provisions of this §217.41 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective March 1, 2018, 43 TexReg 1145; amended to be effective January 2, 2020, 44 TexReg 8338; amended to be effective July 12, 2020, 45 TexReg 4358; amended to be effective January 1, 2022, 46 TexReg 7807; amended to be effective November 14, 2024, 49 TexReg 8980; amended to be effective January 1, 2026, 50 TexReg 8626.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.42"><num value="217.42">§217.42</num><heading>Construction Machinery Criteria</heading><content>Construction machinery must meet the following criteria in order to qualify for the $5 machinery license plate: it must be an unconventional machine, such as those built from the ground up, designed and fabricated to perform a job relating to that type of construction. It is a vehicle that is not designed or used to tow or transport property or persons, other than those persons who may be required to operate such machinery in the function of its design and purpose. Machinery vehicles are vehicles which are actually designed for special construction purposes.</content><note type="source"><p>Source Note: The provisions of this §217.42 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective December 4, 2016, 41 TexReg 9335.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.43"><num value="217.43">§217.43</num><heading>Military Specialty License Plates</heading><content>(a) Purpose and Scope. Transportation Code, Chapter 504 authorizes the department to issue military specialty license plates. This section prescribes the policies and procedures for the application, issuance, and renewal of military specialty license plates.(b) Classification and fees. The department will issue specialty license plates for the military and charge fees as authorized by Transportation Code, §504.202 and Chapter 504, Subchapter D.(c) Application. Applications for military specialty license plates must be made to the department and include evidence of eligibility. The evidence of eligibility may include, but is not limited to:(1) an official document issued by a governmental entity;(2) a letter issued by a governmental entity on that agency's letterhead;(3) discharge papers;(4) a death certificate; or(5) an identification card issued by any branch of the military under the jurisdiction of the United States Department of Defense or the United States Department of Homeland Security indicating that the member is retired.(d) Period. Military specialty license plates shall be valid for 12 months from the month of issuance or for a prorated period of at least 12 months coinciding with the expiration of registration and may be replaced in accordance with §217.32 of this title (relating to Replacement of License Plates, Symbols, Tabs, and Other Devices).(e) Assignment and Transfer. Military license plates may not be assigned and may only be transferred to another vehicle owned by the same vehicle owner.(f) Applicability. Section 217.45 of this title (relating to Specialty License Plates, Symbols, Tabs, and Other Devices) applies to military license plates, symbols, tabs, or other devices as to:(1) what is considered one set of license plates per vehicle as determined by vehicle type;(2) issuance of validation tabs and insignia;(3) stolen or replaced license plates;(4) payment of other applicable fees;(5) personalization, except that Congressional Medal of Honor license plates may not be personalized;(6) renewal, except that the owner of a vehicle with Congressional Medal of Honor license plates must return the documentation and specialty license plate fee, if any, directly to the department;(7) refunds; and(8) expiration.</content><note type="source"><p>Source Note: The provisions of this §217.43 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective August 8, 2016, 41 TexReg 5766; amended to be effective March 4, 2018, 43 TexReg 1281; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.44"><num value="217.44">§217.44</num><heading>Privately Owned Buses</heading><content>(a) Privately owned buses not operated for compensation or hire and thus not classified and registered as "city buses" or "motor buses" shall be registered with private bus license plates. The "private bus" registration classification includes every motor vehicle not operated for compensation or hire, which is designed for carrying more than 10 passengers (excluding the driver or operator) and used for the transportation of persons.(b) The registration fee for a privately owned bus shall be prorated monthly and based upon the weight of the vehicle as calculated by Transportation Code, §502.055.(c) The same schedule of registration fees used for city buses shall also be used for privately owned buses, since the fees for both classifications are computed at the same rate.</content><note type="source"><p>Source Note: The provisions of this §217.44 adopted to be effective March 12, 2015, 40 TexReg 1096.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.45"><num value="217.45">§217.45</num><heading>Specialty License Plates, Symbols, Tabs, and Other Devices</heading><content>(a) Purpose and Scope. Transportation Code, Chapters 504, 551, and 551A charge the department with providing specialty license plates, symbols, tabs, and other devices. For the department to perform these duties efficiently and effectively, this section prescribes the policies and procedures for the application, issuance, and renewal of specialty license plates, symbols, tabs, and other devices, through the county tax assessor-collectors, and establishes application fees, expiration dates, and registration periods for certain specialty license plates. This section does not apply to military license plates except as provided by §217.43 of this title (relating to Military Specialty License Plates).(b) Initial application for specialty license plates, symbols, tabs, or other devices.(1) Application Process.(A) Procedure. An owner of a vehicle registered as specified in this subchapter who wishes to apply for a specialty license plate, symbol, tab, or other device must do so on a form prescribed by the director.(B) Form requirements. The application form shall at a minimum require the name and complete address of the applicant.(2) Fees and Documentation.(A) The application must be accompanied by the prescribed registration fee, unless exempted by statute.(B) The application must be accompanied by the statutorily prescribed specialty license plate fee.(C) Specialty license plate fees will not be refunded after an application is submitted and the department has approved issuance of the license plate.(D) The application must be accompanied by prescribed local fees or other fees that are collected in conjunction with registering a vehicle, with the exception of vehicles bearing license plates that are exempt by statute from these fees.(E) The application must include evidence of eligibility for any specialty license plates. The evidence of eligibility may include, but is not limited to:(i) an official document issued by a governmental entity; or(ii) a letter issued by a governmental entity on that agency's letterhead.(F) Initial applications for license plates for display on Exhibition Vehicles must include a photograph of the completed vehicle.(3) Place of application. Applications for specialty license plates may be made directly to the county tax assessor-collector of the county in which the owner resides or a county tax assessor-collector who is willing to accept the application, except that applications for the following license plates must be made directly to the department:(A) County Judge;(B) Federal Administrative Law Judge;(C) State Judge;(D) State Official;(E) U.S. Congress--House;(F) U.S. Congress--Senate; and(G) U.S. Judge.(4) Gift plates.(A) A person may purchase general distribution specialty license plates as a gift for another person if the purchaser submits an application for the specialty license plates that provides:(i) the name and address of the person who will receive the license plates; and(ii) the vehicle identification number of the vehicle on which the license plates will be displayed.(B) To be valid for use on a motor vehicle, the recipient of the license plates must file an application with the county tax assessor-collector and pay the statutorily required registration fees in the amount as provided by Transportation Code, Chapter 502 and this subchapter.(c) Initial issuance of specialty license plates, symbols, tabs, or other devices.(1) Issuance. On receipt of a completed initial application for registration, accompanied by the prescribed documentation and fees, the department will issue specialty license plates, symbols, tabs, or other devices to be displayed on the vehicle for which the license plates, symbols, tabs, or other devices were issued for the current registration period. If the vehicle for which the specialty license plates, symbols, tabs, or other devices are issued is currently registered, the owner must surrender the license plates currently displayed on the vehicle, along with the corresponding license receipt, before the specialty license plates may be issued.(2) Classic Motor Vehicles, Classic Travel Trailers, Custom Vehicles, Street Rods, and Exhibition Vehicles.(A) License plates. Texas license plates that were issued the same year as the model year of a Classic Motor Vehicle, Travel Trailer, Street Rod, or Exhibition Vehicle may be displayed on that vehicle under Transportation Code, §504.501 and §504.502, unless:(i) the license plate's original use was restricted by statute to another vehicle type;(ii) the license plate is a qualifying plate type that originally required the owner to meet one or more eligibility requirements, except for a plate issued under Transportation Code, §504.202; or(iii) the license plate number is already in use on another vehicle.(B) Validation stickers and tabs. The department will issue validation stickers and tabs for display on license plates that are displayed as provided by subparagraph (A) of this paragraph.(3) Number of license plates issued.(A) Two license plates. Unless otherwise listed in subparagraph (B) of this paragraph, two specialty license plates, each bearing the same license plate number, will be issued per vehicle.(B) One license plate. One license plate will be issued per vehicle for all motorcycles and for the following specialty license plates:(i) Antique Vehicle (includes Antique Auto, Antique Truck, Antique Motorcycle, and Antique Bus);(ii) Classic Travel Trailer;(iii) Rental Trailer;(iv) Travel Trailer;(v) Cotton Vehicle;(vi) Disaster Relief;(vii) Forestry Vehicle;(viii) Golf Cart;(ix) Log Loader;(x) Military Vehicle;(xi) Package Delivery Vehicle;(xii) Fertilizer; and(xiii) Off-highway Vehicle.(C) Registration number. The identification number assigned by the military may be approved as the registration number instead of displaying Military Vehicle license plates on a former military vehicle.(4) Assignment of license plates.(A) Title holder. Unless otherwise exempted by law or this section, the vehicle on which specialty license plates, symbols, tabs, or other devices is to be displayed shall be titled in the name of the person to whom the specialty license plates, symbols, tabs, or other devices is assigned, or a title application shall be filed in that person's name at the time the specialty license plates, symbols, tabs, or other devices are issued.(B) Non-owner vehicle. If the vehicle is titled in a name other than that of the applicant, the applicant must provide evidence of having the legal right of possession and control of the vehicle.(C) Leased vehicle. In the case of a leased vehicle, the applicant must provide a copy of the lease agreement verifying that the applicant currently leases the vehicle.(5) Classification of neighborhood electric vehicles. The registration classification of a neighborhood electric vehicle, as defined by §217.3(3) of this title (relating to Motor Vehicle Titles) will be determined by whether it is designed as a 4-wheeled truck or a 4-wheeled passenger vehicle.(6) Number of vehicles. An owner may obtain specialty license plates, symbols, tabs, or other devices for an unlimited number of vehicles, unless the statute limits the number of vehicles for which the specialty license plate may be issued.(7) Personalized license plate numbers.(A) Issuance. The department will issue a personalized license plate number subject to the exceptions set forth in this paragraph.(B) Character limit. A personalized license plate number may contain no more than six alpha or numeric characters or a combination of characters. Depending upon the specialty license plate design and vehicle class, the number of characters may vary. Spaces, hyphens, periods, hearts, stars, the International Symbol of Access, or silhouettes of the state of Texas may be used in conjunction with the license plate number.(C) Personalized license plates not approved. A personalized license plate number will not be approved by the executive director if the license plate number:(i) conflicts with the department's current or proposed general issue license plate numbering system;(ii) would violate §217.27 of this title (relating to Vehicle Registration Insignia), as determined by the executive director; or(iii) is currently issued to another owner.(D) Classifications of vehicles eligible for personalized license plates. Unless otherwise listed in subparagraph (E) of this paragraph, personalized license plates are available for all classifications of vehicles.(E) Categories of license plates for which personalized license plates are not available. Personalized license plate numbers are not available for display on the following specialty license plates:(i) Amateur Radio (other than the official call letters of the vehicle owner);(ii) Antique Motorcycle;(iii) Antique Vehicle (includes Antique Auto, Antique Truck, and Antique Bus);(iv) Apportioned;(v) Cotton Vehicle;(vi) Disaster Relief;(vii) Farm Trailer (except Go Texan II);(viii) Farm Truck (except Go Texan II);(ix) Farm Truck Tractor (except Go Texan II);(x) Fertilizer;(xi) Forestry Vehicle;(xii) Log Loader;(xiii) Machinery;(xiv) Permit;(xv) Rental Trailer;(xvi) Soil Conservation;(xvii) Texas Guard;(xviii) Golf Cart;(xix) Package Delivery Vehicle; and(xx) Off-highway Vehicle.(F) Fee. Unless specified by statute, a personalized license plate fee of $40 will be charged in addition to any prescribed specialty license plate fee.(G) Priority. Once a personalized license plate number has been assigned to an applicant, the owner shall have priority to that number for succeeding years if a timely renewal application is submitted to the county tax assessor-collector each year in accordance with subsection (d) of this section.(d) Specialty license plate renewal.(1) Renewal deadline. If a personalized license plate is not renewed within 60 days after its expiration date, a subsequent renewal application will be treated as an application for new personalized license plates.(2) Length of validation. Except as provided by Transportation Code, §§504.401, 504.4061, or 504.502, all specialty license plates, symbols, tabs, or other devices shall be valid for 12 months from the month of issuance or for a prorated period of at least 12 months coinciding with the expiration of registration.(3) Renewal.(A) Renewal notice. Approximately 60 days before the expiration date of a specialty license plate, symbol, tab, or other device, the department will send each owner a renewal notice that includes the amount of the specialty license plate fee and the registration fee.(B) Return of notice. The owner must return the fee and any prescribed documentation to the tax assessor-collector of the county in which the owner resides or a county tax assessor-collector who is willing to accept the application, except that the owner of a vehicle with one of the following license plates must return the documentation, and specialty license plate fee, if applicable, directly to the department and submit the registration fee to a county tax assessor-collector:(i) County Judge;(ii) Federal Administrative Law Judge;(iii) State Judge;(iv) State Official;(v) U.S. Congress--House;(vi) U.S. Congress--Senate; and(vii) U.S. Judge.(C) Expired license plate numbers. The department will retain a specialty license plate number for 60 days after the expiration date of the license plates if the license plates are not renewed on or before their expiration date. After 60 days the number may be reissued to a new applicant. All specialty license plate renewals received after the expiration of the 60 days will be treated as new applications.(D) Issuance of validation insignia. On receipt of a completed license plate renewal application and prescribed documentation, the department will issue registration validation insignia as specified in §217.27 unless this section or other law requires the issuance of new license plates to the owner.(E) Lost or destroyed renewal notices. If a renewal notice is lost, destroyed, or not received by the vehicle owner, the specialty license plates, symbol, tab, or other device may be renewed if the owner provides acceptable personal identification along with the appropriate fees and documentation to the tax assessor-collector of the county in which the owner resides or a county tax assessor-collector who is willing to accept the application. Failure to receive the notice does not relieve the owner of the responsibility to renew the vehicle's registration.(e) Transfer of specialty license plates.(1) Transfer between vehicles.(A) Transferable between vehicles. The owner of a vehicle with specialty license plates, symbols, tabs, or other devices may transfer the specialty license plates between vehicles by filing an application through the county tax assessor-collector in which the owner resides or a county tax assessor-collector who is willing to accept the application, if the vehicle to which the license plates are transferred:(i) is titled or leased in the owner's name; and(ii) meets the vehicle classification requirements for that particular specialty license plate, symbol, tab, or other device.(B) Non-transferable between vehicles. The following specialty license plates, symbols, tabs, or other devices are non-transferable between vehicles:(i) Antique Vehicle license plates (includes Antique Auto, Antique Truck, and Antique Bus), Antique Motorcycle license plates, and Antique tabs;(ii) Classic Auto, Classic Truck, Classic Motorcycle, Classic Travel Trailer, Street Rod, and Custom Vehicle license plates;(iii) Forestry Vehicle license plates;(iv) Log Loader license plates;(v) Golf Cart license plates;(vi) Package Delivery Vehicle license plates; and(vii) Off-highway Vehicle license plates.(C) New specialty license plates. If the department creates a new specialty license plate under Transportation Code, §504.801, the department will specify at the time of creation whether the license plate may be transferred between vehicles.(2) Transfer between owners.(A) Non-transferable between owners. Specialty license plates, symbols, tabs, or other devices issued under Transportation Code, Chapter 504, Subchapters C, E, and F are not transferable from one person to another except as specifically permitted by statute.(B) New specialty license plates. If the department creates a new specialty license plate under Transportation Code, §504.801, the department will specify at the time of creation whether the license plate may be transferred between owners.(3) Simultaneous transfer between owners and vehicles. Specialty license plates, symbols, tabs, or other devices are transferable between owners and vehicles simultaneously only if the owners and vehicles meet all the requirements in both paragraphs (1) and (2) of this subsection.(f) Replacement.(1) Application. When specialty license plates, symbols, tabs, or other devices are lost, stolen, or mutilated, the owner shall apply directly to a county tax assessor-collector for the issuance of replacements.(2) Temporary registration insignia. If the specialty license plate, symbol, tab, or other device is lost, destroyed, or mutilated to such an extent that it is unusable, and if issuance of a replacement license plate would require that it be remanufactured, the owner must pay the statutory replacement fee, and the department will issue a temporary tag for interim use. The owner's new specialty license plate number will be shown on the temporary tag unless it is a personalized license plate, in which case the same personalized license plate number will be shown.(3) Stolen specialty license plates.(A) The department or county tax assessor-collector will not approve the issuance of replacement license plates with the same personalized license plate number if the department's records indicate either the vehicle displaying the personalized license plates or the license plates are reported as stolen to law enforcement. The owner will be directed to contact the department for another personalized license plate choice.(B) The owner may select a different personalized number to be issued at no charge with the same expiration as the stolen specialty license plate. On recovery of the stolen vehicle or license plates, the department will issue, at the owner's or applicant's request, replacement license plates, bearing the same personalized number as those that were stolen.(g) License plates created after January 1, 1999. In accordance with Transportation Code, §504.702, the department will begin to issue specialty license plates authorized by a law enacted after January 1, 1999, only if the sponsoring entity for that license plate submits the following items before the fifth anniversary of the effective date of the law.(1) The sponsoring entity must submit a written application. The application must be on a form approved by the director and include, at a minimum:(A) the name of the license plate;(B) the name and address of the sponsoring entity;(C) the name and telephone number of a person authorized to act for the sponsoring entity; and(D) the deposit.(2) A sponsoring entity is not an agent of the department and does not act for the department in any matter, and the department does not assume any responsibility for fees or applications collected by a sponsoring entity.(h) Assignment procedures for state, federal, and county officials.(1) State Officials. State Official license plates contain the distinguishing prefix "SO." Members of the state legislature may be issued up to three sets of State Official specialty license plates with the distinguishing prefix "SO," or up to three sets of State Official specialty license plates that depict the state capitol, and do not display the distinguishing prefix "SO." An application by a member of the state legislature, for a State Official specialty license plate, must specify the same specialty license plate design for each applicable vehicle. State Official license plates are assigned in the following order:(A) Governor;(B) Lieutenant Governor;(C) Speaker of the House;(D) Attorney General;(E) Comptroller;(F) Land Commissioner;(G) Agriculture Commissioner;(H) Secretary of State;(I) Railroad Commission;(J) Supreme Court Chief Justice followed by the remaining justices based on their seniority;(K) Criminal Court of Appeals Presiding Judge followed by the remaining judges based on their seniority;(L) Members of the State Legislature, with Senators assigned in order of district number followed by Representatives assigned in order of district number, except that in the event of redistricting, license plates will be reassigned; and(M) Board of Education Presiding Officer followed by the remaining members assigned in district number order, except that in the event of redistricting, license plates will be reassigned.(2) Members of the U.S. Congress.(A) U.S. Senate license plates contain the prefix "Senate" and are assigned by seniority; and(B) U.S. House license plates contain the prefix "House" and are assigned in order of district number, except that in the event of redistricting, license plates will be reassigned.(3) Federal Judge.(A) Federal Judge license plates contain the prefix "USA" and are assigned on a seniority basis within each court in the following order:(i) Judges of the Fifth Circuit Court of Appeals;(ii) Judges of the United States District Courts;(iii) United States Bankruptcy Judges; and(iv) United States Magistrates.(B) Federal Administrative Law Judge license plates contain the prefix "US" and are assigned in the order in which applications are received.(C) A federal judge who retired on or before August 31, 2003, and who held license plates expiring in March 2004 may continue to receive federal judge license plates. A federal judge who retired after August 31, 2003, is not eligible for U.S. Judge license plates.(4) State Judge.(A) State Judge license plates contain the prefix "TX" and are assigned sequentially in the following order:(i) Appellate District Courts;(ii) Presiding Judges of Administrative Regions;(iii) Judicial District Courts;(iv) Criminal District Courts; and(v) Family District Courts and County Statutory Courts.(B) A particular alpha-numeric combination will always be assigned to a judge of the same court to which it was originally assigned.(C) A state judge who retired on or before August 31, 2003, and who held license plates expiring in March 2004 may continue to receive state judge plates. A state judge who retired after August 31, 2003, is not eligible for State Judge license plates.(5) County Judge license plates contain the prefix "CJ" and are assigned by county number.(6) In the event of redistricting or other license plate reallocation, the department may allow a state official to retain that official's plate number if the official has had the number for five or more consecutive years.(i) Development of new specialty license plates.(1) Procedure. The following procedure governs the process of authorizing new specialty license plates under Transportation Code, §504.801, whether the new license plate originated as a result of an application or as a department initiative.(2) Applications for the creation of new specialty license plates. An applicant for the creation of a new specialty license plate, other than a vendor specialty plate under §217.52 of this title (relating to Marketing of Specialty License Plates through a Private Vendor), must submit a written application on a form approved by the executive director. The application must include:(A) the applicant's name, address, telephone number, and other identifying information as directed on the form;(B) certification on Internal Revenue Service letterhead stating that the applicant is a not-for-profit entity;(C) a draft design of the specialty license plate;(D) projected sales of the license plate, including an explanation of how the projected figure was established;(E) a marketing plan for the license plate, including a description of the target market;(F) a licensing agreement from the appropriate third party for any intellectual property design or design element;(G) a letter from the executive director of the sponsoring state agency stating that the agency agrees to receive and distribute revenue from the sale of the specialty license plate and that the use of the funds will not violate a statute or constitutional provision; and(H) other information necessary for the board to reach a decision regarding approval of the requested specialty license plate.(3) Review process. The board:(A) will not consider incomplete applications;(B) may request additional information from an applicant if necessary for a decision; and(C) will consider specialty license plate applications that are restricted by law to certain individuals or groups of individuals (qualifying license plates) using the same procedures as applications submitted for license plates that are available to everyone (non-qualifying license plates).(4) Request for additional information. If the board determines that additional information is needed, the applicant must return the requested information not later than the requested due date. If the additional information is not received by that date, the board will return the application as incomplete unless the board:(A) determines that the additional requested information is not critical for consideration and approval of the application; and(B) approves the application, pending receipt of the additional information by a specified due date.(5) Board decision. The board's decision will be based on:(A) compliance with Transportation Code, §504.801;(B) the proposed license plate design, including:(i) whether the design appears to meet the legibility and reflectivity standards established by the department;(ii) whether the design meets the standards established by the department for uniqueness;(iii) other information provided during the application process;(iv) the criteria designated in §217.27 as applied to the design; and(v) whether a design is similar enough to an existing plate design that it may compete with the existing license plate sales; and(C) the applicant's ability to comply with Transportation Code, §504.702 relating to the required deposit or application that must be provided before the manufacture of a new specialty license plate.(6) Public comment on proposed design. All proposed license plate designs will be considered by the board as an agenda item at a regularly or specially called open meeting. Notice of consideration of proposed license plate designs will be posted in accordance with Office of the Secretary of State meeting notice requirements. Notice of each license plate design will be posted on the department's Internet website to receive public comment at least 25 days in advance of the meeting at which it will be considered. The department will notify all other specialty license plate organizations and the sponsoring agencies who administer specialty license plates issued in accordance with Transportation Code, Chapter 504, Subchapter G, of the posting. A comment on the proposed design can be submitted in writing through the mechanism provided on the department's Internet website for submission of comments. Written comments are welcome and must be received by the department at least 10 days in advance of the meeting. Public comment will be received at the board's meeting.(7) Final approval.(A) Approval. The board will approve or disapprove the specialty license plate application based on all of the information provided pursuant to this subchapter at an open meeting.(B) Application not approved. If the application is not approved under subparagraph (A) of this paragraph, the applicant may submit a new application and supporting documentation for the design to be considered again by the board if:(i) the applicant has additional, required documentation; or(ii) the design has been altered to an acceptable degree.(8) Issuance of specialty license plates.(A) If the specialty license plate is approved, the applicant must comply with Transportation Code, §504.702 before any further processing of the license plate.(B) Approval of the license plate does not guarantee that the submitted draft license plate design will be used. The board has final approval authority of all specialty license plate designs and may adjust or reconfigure the submitted draft design to comply with the format or license plate specifications.(C) If the board, in consultation with the applicant, adjusts or reconfigures the design, the adjusted or reconfigured design will not be posted on the department's website for additional comments.(9) Redesign of specialty license plate.(A) Upon receipt of a written request from the applicant, the department will allow redesign of a specialty license plate.(B) A request for a redesign must meet all application requirements and proceed through the approval process of a new specialty license plate as required by this subsection.(C) An approved license plate redesign does not require the deposit required by Transportation Code, §504.702, but the applicant must pay a redesign cost to cover administrative expenses.(j) Golf carts.(1) A county tax assessor-collector may issue golf cart license plates as long as the requirements under Transportation Code, §551.403 or §551.404 are met.(2) A county tax assessor-collector may only issue golf cart license plates to residents or property owners of the issuing county.(3) A golf cart license plate may not be used as a registration insignia, and a golf cart may not be registered for operation on a public highway.(4) The license plate fee for a golf cart license plate is $10.(k) Off-highway vehicle.(1) A county tax assessor-collector may issue off-highway vehicle license plates as long as the requirements under Transportation Code, §551A.053 or §551A.055 are met.(2) An off-highway vehicle license plate may not be used as a registration insignia, and an off-highway vehicle may not be registered for operation on a public highway.(3) The license plate fee for an off-highway vehicle license plate is $10.(l) Package delivery vehicle.(1) A county tax assessor-collector may issue package delivery license plates as long as the requirements under Transportation Code, §§551.453, 551.454, and 551.455 are met.(2) The license plate fee for a package delivery license plate is $25 to be paid on an annual basis.</content><note type="source"><p>Source Note: The provisions of this §217.45 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective August 8, 2016, 41 TexReg 5766; amended to be effective December 4, 2016, 41 TexReg 9335; amended to be effective November 14, 2017, 42 TexReg 6384; amended to be effective March 4, 2018, 43 TexReg 1281; amended to be effective March 1, 2020, 45 TexReg 1228; amended to be effective March 1, 2022, 47 TexReg 968; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.46"><num value="217.46">§217.46</num><heading>Commercial Vehicle Registration</heading><content>(a) Eligibility. A motor vehicle is required to be registered as a commercial motor vehicle if it meets the definition of a commercial motor vehicle under Transportation Code, §502.001(7).(b) Commercial vehicle registration classifications.(1) Apportioned license plates. Apportioned license plates are issued in lieu of Combination, Motor Bus, or Truck license plates to Texas carriers who proportionally register their fleets in other states, in conformity with §217.56 of this title (relating to Registration Reciprocity Agreements).(2) City bus license plates. A street or suburban bus shall be registered with license plates bearing the legend "City Bus."(3) Combination license plates.(A) Specifications. A truck or truck-tractor with a gross weight in excess of 10,000 pounds used or to be used in combination with a semitrailer having a gross weight in excess of 6,000 pounds, may be registered with combination license plates. Such vehicles must be registered for a gross weight equal to the combined gross weight of all the vehicles in the combination, but not less than 18,000 pounds. Only one combination license plate is required and must be displayed on the front of the truck or truck-tractor. When displaying a combination license plate, a truck or truck-tractor is not restricted to pulling a semitrailer licensed with a Token Trailer license plate and may legally pull semitrailers displaying other types of Texas license plates or license plates issued out of state; however, a truck or truck-tractor displaying a combination license plate issued under Transportation Code, §502.255 may only pull a semitrailer issued a license plate from another state to the extent authorized under a registration reciprocity agreement under Transportation Code, §502.091. The following vehicles may not be registered in combination:(i) trucks or truck-tractors having a gross weight of 10,000 pounds or less or trucks or truck-tractors to be used exclusively in combination with semitrailers having gross weights not exceeding 6,000 pounds;(ii) semitrailers with gross weights of 6,000 pounds or less, or semitrailers that are to be operated exclusively with trucks or truck-tractors having gross weight of 10,000 pounds or less;(iii) trucks or truck-tractors used exclusively in combination with semitrailer-type vehicles displaying Machinery, Permit, or Farm Trailer license plates;(iv) trucks or truck-tractors used exclusively in combination with travel trailers and manufactured housing;(v) trucks or truck-tractors to be registered with Farm Truck or Farm Truck Tractor license plates;(vi) trucks or truck-tractors and semitrailers to be registered with disaster relief license plates;(vii) trucks or truck-tractors and semitrailers to be registered with Soil Conservation license plates;(viii) trucks or truck-tractors and semitrailers to be registered with U.S. Government license plates or Exempt license plates issued by the State of Texas; and(ix) vehicles that are to be issued special registration permits, such as 72-Hour Permits, 144-Hour Permits, or special registration license plates, such as One Trip license plates, or 30-Day license plates in accordance with Transportation Code, §502.094 and §502.095.(B) Converted semitrailers. Semitrailers that are converted to trailers by means of auxiliary axle assemblies will retain their semitrailer status, and such semitrailers are subject to the combination and token trailer registration requirements.(C) Axle assemblies. Various types of axle assemblies that are specially designed for use in conjunction with other vehicles or combinations of vehicles may be used to increase the load capabilities of such vehicles or combinations.(i) Auxiliary axle assemblies such as trailer axle converters, jeep axles, and drag axles, which are used in conjunction with truck-tractor and semitrailer combinations, are not required to be registered; however, the additional weight that is acquired by the use of such axle assemblies must be included in the combined gross weight of the combination.(ii) Ready-mixed concrete trucks that have an auxiliary axle assembly installed for the purpose of increasing a load capacity of such vehicles must be registered for a weight that includes the axle assembly.(D) Exchange of Combination license plates. Combination license plates shall not be exchanged for another type of registration during the registration year, except that:(i) if a major permanent reconstruction change occurs, Combination license plates may be exchanged for Truck license plates, provided that a corrected title is applied for;(ii) if the department initially issues Combination license plates in error, the plates will be exchanged for license plates of the proper classification;(iii) if the department initially issues Truck or Trailer license plates in error to vehicles that should have been registered in combination, such license plates will be exchanged for Combination and Token Trailer license plates; or(iv) if a Texas apportioned carrier acquires a combination license power unit, the Combination license plates will be exchanged for Apportioned license plates.(4) Cotton Vehicle license plates. The department will issue Cotton Vehicle license plates in accordance with Transportation Code, §504.505 and §217.45 of this title (relating to Specialty License Plates, Symbols, Tabs, and Other Devices).(5) Forestry Vehicle license plates. The department will issue Forestry Vehicle license plates in accordance with Transportation Code, §504.507 and §217.45 of this title.(6) Motor Bus license plates. A motor bus as well as a taxi and other vehicles that transport passengers for compensation or hire, must display Motor Bus license plates when operated outside the limits of a city or town, or adjacent suburb, in which its company is franchised to do business.(7) Token Trailer license plates.(A) Qualification. The department will issue Token Trailer license plates for semitrailers that are authorized to be registered in combination.(B) Validity. A Token Trailer license plate is valid only when it is displayed on a semitrailer that is being pulled by a truck or a truck-tractor that has been properly registered with Forestry Vehicle (in accordance with Transportation Code, §504.507), Combination (in accordance with Transportation Code, §502.255), or Apportioned (in accordance with Transportation Code, §502.091) license plates for combined gross weights that include the weight of the semitrailer, except as authorized under Transportation Code, Chapters 621 through 623.(C) House-moving dollies. House-moving dollies are to be registered with Token Trailer license plates and titled as semitrailers; however, only one such dolly in a combination is required to be registered and titled. The remaining dolly (or dollies) is permitted to operate unregistered, since by the nature of its construction, it is dependent upon another such vehicle in order to function. The pulling unit must display a Combination or Apportioned license plate.(D) Trailers. The department shall not issue a Token Trailer license plate for a trailer.(8) Tow Truck license plates. A Tow Truck license plate must be obtained for all tow trucks operating and registered in this state. The department will not issue a Tow Truck license plate unless the Texas Department of Licensing and Regulation has issued a permit for the tow truck under Occupations Code, Chapter 2308, Subchapter C.(c) Application for commercial vehicle registration.(1) Application form. An applicant shall apply for commercial license plates through the appropriate county tax assessor-collector or the department, as applicable, upon forms prescribed by the director and shall require, at a minimum, the following information:(A) owner name and complete address;(B) complete description of vehicle, including empty weight; and(C) vehicle identification number or serial number.(2) Empty weight determination.(A) The weight of a Motor Bus shall be the empty weight plus carrying capacity, in accordance with Transportation Code, §502.055.(B) The weight of a vehicle cannot be lowered below the weight indicated on a Manufacturer's Certificate of Origin unless a corrected Manufacturer's Certificate of Origin is obtained.(C) In all cases where the department questions the empty weight of a particular vehicle, the applicant should present a weight certificate from a public weight scale or the Department of Public Safety.(3) Gross weight.(A) Determination of Weight. The combined gross weight of vehicles registering for combination license plates shall be determined by the empty weight of the truck or truck-tractor combined with the empty weight of the heaviest semitrailer or semitrailers used or to be used in combination therewith, plus the heaviest net load to be carried on such combination during the motor vehicle registration year, provided that in no case may the combined gross weight be less than 18,000 pounds.(B) Restrictions. The following restrictions apply to combined gross weights.(i) After a truck or truck-tractor is registered for a combined gross weight, such weight cannot be lowered at any subsequent date during the registration year. The owner may, however, lower the gross weight when registering the vehicle for the following registration year, provided that the registered combined gross weight is sufficient to cover the heaviest load to be transported during the year and provided that the combined gross weight is not less than 18,000 pounds.(ii) A combination of vehicles is restricted to a total gross weight not to exceed 80,000 pounds; however, all combinations may not qualify for 80,000 pounds unless such weight can be properly distributed in accordance with axle load limitations, and distance between axles, in accordance with Transportation Code, §621.101 or another section in Transportation Code, Chapters 621 through 623.(4) Vehicle identification number or serial number. Ownership may be established by a court order or by securing a bond if no vehicle identification number or serial number can be identified. Once ownership has been established, the department will assign a number upon payment of the fee.(5) Accompanying documentation. Unless otherwise exempted by law, completed applications for commercial license plates shall be accompanied by:(A) prescribed registration fees;(B) prescribed local fees or other fees that are collected in conjunction with registering a vehicle;(C) evidence of financial responsibility as required by Transportation Code, §502.046; however, if the applicant is a motor carrier as defined by §218.2 of this title (relating to Definitions), proof of financial responsibility may be in the form of a registration listing indicating that the vehicle is registered in compliance with Chapter 218, Subchapter B of this title (relating to Motor Carrier Registration);(D) an application for Texas Title in accordance with Subchapter A of this chapter, or other proof of ownership;(E) proof of payment of the Federal Heavy Vehicle Use Tax, if applicable;(F) an original or certified copy of the current permit issued in accordance with Occupations Code, Chapter 2308, Subchapter C, if application is being made for Tow Truck license plates; and(G) other documents or fees required by law.(d) Renewal of commercial license plates.(1) Registration period. The department will establish the registration period for commercial vehicles, unless specified by statute. Commercial license plates are issued for established annual registration periods.(2) Registration Renewal Notice. The department will send a registration renewal notice, indicating the proper registration fee and the month and year the registration expires, to each vehicle owner approximately six to eight weeks prior to the expiration of the vehicle's registration.(3) Return of registration renewal notices. Except for authorized online renewals, registration renewal notices should be returned by the vehicle owner to the department or the appropriate county tax assessor-collector, as indicated on the registration renewal notice. Unless otherwise exempted by law, registration renewal notices may be returned either in person or by mail, and shall be accompanied by:(A) statutorily prescribed registration renewal fees;(B) prescribed local fees or other fees that are collected in conjunction with registration renewal;(C) evidence of financial responsibility as required by Transportation Code, §502.046; and(D) other prescribed documents or fees.(4) Lost or destroyed registration renewal notice. If a registration renewal notice is lost, destroyed, or not received by the vehicle owner, the vehicle may be registered if the owner presents personal identification acceptable to the county tax assessor-collector. Failure to receive the notice does not relieve the owner of the responsibility to renew the vehicle's registration.(e) Transfer of commercial vehicle license plates.(1) Transfer between persons. With the exceptions noted in paragraph (3) of this subsection, when ownership of a vehicle displaying commercial vehicle license plates is transferred, application for transfer of such license plates shall be made with the county tax assessor-collector in the county in which the purchaser resides or a county tax assessor-collector who is willing to accept the application. If the purchaser does not intend to use the vehicle in a manner that would qualify it for the license plates issued to that vehicle, such license plates must be exchanged for the appropriate license plates.(2) Transfer between vehicles. Commercial vehicle license plates are non-transferable between vehicles.(3) Transfer of Apportioned and Tow Truck license plates. Apportioned and Tow Truck license plates are non-transferable between persons or vehicles, and become void if the vehicle to which the license plates were issued is sold.(f) Replacement of lost, stolen, or mutilated commercial vehicle license plates. An owner of lost, stolen, or mutilated commercial vehicle license plates may obtain replacement license plates by filing an Application for Replacement Plates and remitting the prescribed fee to the county tax assessor-collector or from the department.</content><note type="source"><p>Source Note: The provisions of this §217.46 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective August 8, 2016, 41 TexReg 5766; amended to be effective March 4, 2018, 43 TexReg 1281; amended to be effective March 1, 2020, 45 TexReg 1228; amended to be effective March 1, 2022, 47 TexReg 968; amended to be effective July 1, 2025, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.47"><num value="217.47">§217.47</num><heading>Vehicle Emissions Enforcement System</heading><content>(a) Purpose. Transportation Code, §502.047 requires the department to implement a system requiring verification that a vehicle complies with vehicle emissions inspection and maintenance programs as required by the Health and Safety Code, §382.202 and §382.203, and Transportation Code, Chapter 548, Subchapter F. Transportation Code, §501.0276 and §502.047 requires a vehicle subject to Transportation Code, §548.3011 to pass an emissions test on resale in an affected or early action compact county before it is titled or registered. This section prescribes the department's policies and procedures if a vehicle does not comply with the emissions standards set by federal and state laws and the provisions of the Texas air quality State Implementation Plan.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Affected County--A county with a motor vehicle emissions inspection and maintenance program established under Transportation Code, §548.301.(2) Department--The Texas Department of Motor Vehicles.(3) DPS--The Texas Department of Public Safety.(4) Early action compact county--A participating county under Health and Safety Code, Chapter 382, Subchapter H.(5) TCEQ--The Texas Commission on Environmental Quality.(6) Vehicle--A self-propelled vehicle required to be registered in the state, except those vehicles exempted by TCEQ.(7) Vehicle inspection report--A vehicle inspection form prescribed by DPS that is printed by the vehicle exhaust gas analyzer immediately following an emissions test.(8) Vehicle emissions I/M program--A vehicle emissions inspection and maintenance program meeting all the requirements of the Environmental Protection Agency.(9) Waiver--A form and certificate that allows a vehicle to be considered in compliance with the vehicle emissions I/M program for a specified period of time after a vehicle fails an emissions test.(c) Notice from DPS or TCEQ.(1) DPS, after notice to the vehicle owner, will notify the department if a motor vehicle owner fails to comply with the requirements of Transportation Code, Chapter 548, Subchapter F.(2) TCEQ, after notice to the vehicle owner, will notify the department if a motor vehicle fails to comply with the requirements of Health and Safety Code, §382.202 and §382.203, and Transportation Code, Chapter 548, Subchapter F.(3) The notice will include the vehicle identification number and the license plate number of the affected vehicle.(4) If the department receives a notice of emissions noncompliance from DPS or TCEQ, the department will place a notation on the motor vehicle record that the motor vehicle has failed to comply with the vehicle emissions I/M program.(5) If the department receives a notice of emissions compliance from DPS or TCEQ, the department will remove the non-compliance notation from the motor vehicle record.(6) If a vehicle record contains a notation of failure to comply with the vehicle emissions I/M program, the tax assessor-collector will deny registration unless provided with:(A) proof of compliance with the vehicle emissions I/M program with a "passing" vehicle inspection report; or(B) proof of a waiver issued by DPS that includes the vehicle identification number and the license plate number.(7) DPS and TCEQ will provide the department with the notifications in a format approved by the department.(8) DPS and TCEQ will enter into an agreement with the department regarding the remittance to the department for costs associated with implementation of the emissions program.(d) Vehicles moved into affected or early action compact counties. If a vehicle was last titled in an unaffected county and is to be titled or registered in an affected or early action compact county, it is not eligible for a title receipt, a title, or registration after a retail sale unless proof is presented to the county tax assessor-collector that the vehicle has passed the emissions test. This subsection does not apply to a vehicle that will be used in the affected or early action compact county for fewer than 60 days during the registration period for which registration is sought or to a vehicle that is a 1996 or newer model and has less than 50,000 miles.</content><note type="source"><p>Source Note: The provisions of this §217.47 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective December 4, 2016, 41 TexReg 9335.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.48"><num value="217.48">§217.48</num><heading>Machinery</heading><content>Conventional vehicles with cranes, draglines, or other similar machinery mounted thereon, must be registered with regular registration.</content><note type="source"><p>Source Note: The provisions of this §217.48 adopted to be effective March 12, 2015, 40 TexReg 1096.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.49"><num value="217.49">§217.49</num><heading>Water Well Drilling Equipment and Vehicles</heading><content>(a) Prior to the approval of a machinery license plate for any piece of mechanically qualified water well drilling equipment, the owner must first present proof of a current license from the Texas Department of Licensing and Regulation.(b) Every truck or trailer, whether conventional or unconventional, which has mounted thereon machinery used exclusively for drilling water wells may qualify for a $5 machinery license plate.</content><note type="source"><p>Source Note: The provisions of this §217.49 adopted to be effective March 12, 2015, 40 TexReg 1096.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.50"><num value="217.50">§217.50</num><heading>Equipment and Vehicles Within Road Construction Projects</heading><content>Road construction equipment (machinery type vehicles) operating laden or unladen within the limits of a project are not required to display the $5 machinery license plate, regardless of the intermingling of regular vehicular traffic; however, conventional commercial vehicles operating within the limits of a project shall be required to be registered with regular commercial license plates whenever traffic is allowed to intermingle.</content><note type="source"><p>Source Note: The provisions of this §217.50 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective November 14, 2024, 49 TexReeg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.51"><num value="217.51">§217.51</num><heading>Change of Classification: Trucks and Truck-Tractors</heading><content>When a truck is converted into a truck-tractor and the registration classification is changed from "truck" to "combination," an exchange of license plates is required; however, if a truck-tractor is converted into a truck and the registration classification is changed from "combination" to "truck" the license plates shall not be exchanged, unless the change involves a major permanent reconstruction change, such as when the frame of a truck-tractor is altered to accommodate the installation of a different type bed or body. In this instance, the owner must exchange license plates and file an application for corrected title. Under no circumstances will a refund in registration fees be authorized when a combination plate is exchanged for truck license plates as the result of a reconstruction change.</content><note type="source"><p>Source Note: The provisions of this §217.51 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.52"><num value="217.52">§217.52</num><heading>Marketing of Specialty License Plates through a Private Vendor</heading><content>(a) Purpose and scope. The department will enter into a contract with a private vendor to market department-approved specialty license plates in accordance with Transportation Code, Chapter 504, Subchapter J. This section sets out the procedure for approval of the design, purchase, and replacement of vendor specialty license plates. In this section, the license plates marketed by the vendor are referred to as vendor specialty license plates.(b) Application for approval of vendor specialty license plate designs.(1) Approval required. The vendor shall obtain the approval of the board for each license plate design the vendor proposes to market in accordance with this section and the contract entered into between the vendor and the department.(2) Application. The vendor must submit a written application on a form approved by the executive director to the department for approval of each license plate design the vendor proposes to market. The application must include:(A) a draft design of the specialty license plate;(B) projected sales of the license plate, including an explanation of how the projected figure was determined;(C) a marketing plan for the license plate including a description of the target market;(D) a licensing agreement from the appropriate third party for any design or design element that is intellectual property; and(E) other information necessary for the board to reach a decision regarding approval of the requested vendor specialty license plate.(c) Review and approval process. The board will review vendor specialty license plate applications. The board:(1) will not consider incomplete applications; and(2) may request additional information from the vendor to reach a decision.(d) Board decision.(1) Decision. The decision of the board will be based on:(A) compliance with Transportation Code, Chapter 504, Subchapter J;(B) the proposed license plate design, including:(i) whether the design meets the legibility and reflectivity standards established by the department;(ii) whether the design meets the standards established by the department for uniqueness to ensure that the proposed license plate complies with Transportation Code, §504.852(c);(iii) whether the license plate design can accommodate the International Symbol of Access (ISA) as required by Transportation Code, §504.201(f);(iv) the criteria designated in §217.27 of this title (relating to Vehicle Registration Insignia) as applied to the design;(v) whether a design is similar enough to an existing license plate design that it may compete with the existing license plate sales; and(vi) other information provided during the application process.(2) Public comment on proposed design. All proposed license plate designs will be considered by the board as an agenda item at a regularly or specially called open meeting. Notice of consideration of proposed license plate designs will be posted in accordance with Office of the Secretary of State meeting notice requirements. Notice of each license plate design will be posted on the department's Internet web site to receive public comment at least 25 days in advance of the meeting at which it will be considered. The department will notify all specialty license plate organizations and the sponsoring agencies who administer specialty license plates issued in accordance with Transportation Code, Chapter 504, Subchapter G, of the posting. A comment on the proposed design can be submitted in writing through the mechanism provided on the department's Internet web site for submission of comments. Written comments are welcome and must be received by the department at least 10 days in advance of the meeting. Public comment will be received at the board's meeting.(e) Final approval and specialty license plate issuance.(1) Approval. The board will approve or disapprove the specialty license plate application based on all of the information provided pursuant to this subchapter in an open meeting.(2) Application not approved. If the application is not approved, the applicant may submit a new application and supporting documentation for the design to be considered again by the board if:(A) the applicant has additional, required documentation; or(B) the design has been altered to an acceptable degree.(3) Issuance of approved specialty license plates.(A) If the vendor's specialty license plate is approved, the vendor must submit the non-refundable start-up fee before any further design and processing of the specialty license plate.(B) Approval of the specialty license plate does not guarantee that the submitted draft specialty license plate design will be used. The board has final approval of all specialty license plate designs and will provide guidance on the submitted draft design to ensure compliance with the format and specialty license plate specifications. (f) Redesign of vendor specialty license plates.(1) On receipt of a written request from the vendor, the department will allow a redesign of a vendor specialty license plate.(2) The vendor must pay the redesign administrative costs as provided in the contract between the vendor and the department.(g) Multi-year vendor specialty license plates. Purchasers will have the option of purchasing vendor specialty license plates for a one-year, a three-year, or a five-year period.(h) License plate categories and associated fees. The categories and the associated fees for vendor specialty license plates are set out in this subsection.(1) Custom license plates. Custom license plates include license plates with a variety of pre-approved background and character color combinations that may be personalized with either three alpha and two or three numeric characters or two or three numeric and three alpha characters. Generic license plates on standard white sheeting with the word "Texas" that may be personalized with up to six alphanumeric characters are considered custom license plates before December 2, 2010. The fees for issuance of Custom and Generic license plates are $150 for one year, $400 for three years, and $450 for five years.(2) T-Plates (Premium) license plates. T-Plates (Premium) license plates may be personalized with up to seven alphanumeric characters, including the "T," on colored backgrounds or designs approved by the department. The fees for issuance of T-Plates (Premium) license plates are $150 for one year, $400 for three years, and $450 for five years.(3) Luxury license plates. Luxury license plates may be personalized with up to six alphanumeric characters on colored backgrounds or designs approved by the department. The fees for issuance of luxury license plates are $150 for one year, $400 for three years, and $450 for five years.(4) Freedom license plates. Freedom license plates include license plates with a variety of pre-approved background and character color combinations that may be personalized with up to seven alphanumeric characters. The fees for issuance of freedom license plates are $195 for one year, $445 for three years, and $495 for five years.(5) Background-only license plates. Background-only license plates include non-personalized license plates with a variety of pre-approved background and character color combinations and may be embossed or non-embossed.(A) The fees for issuance of non-embossed, background -only license plates are $50 for one year, $130 for three years, and $175 for five years.(B) Except as stated in subsection (h)(9)(C), the fees for embossed, background-only license plates are $125 for one year, $205 for three years, and $250 for five years.(6) Vendor souvenir license plates. Vendor souvenir license plates are replicas of vendor specialty license plate designs that may be personalized with up to 24 alphanumeric characters. Vendor souvenir license plates are not street legal or legitimate insignias of vehicle registration. The fee for issuance of souvenir license plates is $40.(7) Auction. The vendor may auction department-approved license plate numbers for one, three, or five year terms with options to renew indefinitely at the current price established for a one, three, or five year luxury category license plate. The purchaser of the auction license plate number may select from the vendor background designs, including any embossed license plate designs, at no additional charge at the time of initial issuance. The auction license plate number may be moved from one vendor design plate to another vendor design license plate as provided in subsection (n)(1) of this section. The auction license plate number may be transferred from owner to owner as provided in subsection (l)(2) of this section. (8) Embossed, personalized specialty license plates. The vendor may sell embossed, personalized specialty license plates with a variety of pre-approved background and character color combinations that may be personalized with up to seven alphanumeric characters. Except as stated in subsection (h)(7) of this section, the fees for issuance of embossed, personalized specialty license plates are $270 for one year, $520 for three years, and $570 for five years. Except as stated in subsection (h)(9)(C) of this section, the fees under subsection (h)(9) of this section do not apply to an embossed, personalized specialty license plate.(9) Personalization and specialty license plate fees.(A) The fee for the personalization of license plates applied for prior to November 19, 2009 is $40 if the license plates are renewed annually.(B) The personalization fee for license plates applied for after November 19, 2009 is $40 if the license plates are issued pursuant to Transportation Code, Chapter 504, Subchapters G and I.(C) If the license plates are renewed annually, the personalization and specialty license plate fees remain the same fee as at the time of issuance if a sponsor of a specialty license plate authorized under Transportation Code, Chapter 504, Subchapters G and I signs a contract with the vendor in accordance with Transportation Code, Chapter 504, Subchapter J, even if the board approves the specialty license plate to be an embossed specialty license plate design.(i) Payment of fees.(1) Payment of specialty license plate fees. The fees for issuance of vendor specialty license plates will be paid directly to the state through vendor and state systems for the license plate category and period selected by the purchaser. A person who purchases a multi-year vendor specialty license plate must pay upon purchase the full fee which includes the renewal fees.(2) Payment of statutory registration fees. To be valid for use on a motor vehicle, the license plate owner is required to pay, in addition to the vendor specialty license plate fees, any statutorily required registration fees in the amount as provided by Transportation Code, Chapter 502, and this subchapter.(j) Refunds. Fees for vendor specialty license plate fees will not be refunded after an application is submitted to the vendor and the department has approved issuance of the license plate.(k) Replacement.(1) Application. An owner must apply directly to the county tax assessor-collector for the issuance of replacement vendor specialty license plates and must pay the fee described in paragraphs (2) or (3) of this subsection, whichever applies.(2) Lost or mutilated vendor specialty license plates. To replace vendor specialty license plates that are lost or mutilated, the owner must pay the statutory replacement fee provided in Transportation Code, §504.007.(3) Optional replacements. An owner of a vendor specialty license plate may replace vendor specialty license plates by submitting a request to the county tax assessor-collector accompanied by the payment of a $6 fee.(4) Interim replacement tags. If the vendor specialty license plates are lost or mutilated to such an extent that they are unusable, replacement specialty license plates may be remanufactured. The county tax assessor-collector will issue interim replacement tags for use until the replacements are available. The owner's vendor specialty license plate number will be shown on the interim replacement tags.(5) Stolen vendor specialty license plates. The county tax assessor-collector will not approve the issuance of replacement vendor specialty license plates with the same license plate number if the department's records indicate that the vehicle displaying that license plate number was reported stolen or the license plates themselves were reported stolen to law enforcement.(l) Transfer of vendor specialty license plates.(1) Transfer between vehicles. The owner of a vehicle with vendor specialty license plates may transfer the specialty license plates between vehicles by filing an application through the county tax assessor-collector if the vehicle to which the specialty license plates are transferred:(A) is titled or leased in the owner's name; and(B) meets the vehicle classification requirements for that specialty license plate.(2) Transfer between owners. Vendor specialty license plates may not be transferred between persons unless the specialty license plate number was initially purchased through auction as provided in subsection (h)(7) of this section. An auctioned license plate number may be transferred as a specialty license plate or as a virtual pattern to be manufactured on a new background as provided under the restyle option in subsection (n)(1) of this section. In addition to the fee paid at auction, the new owner of an auctioned license plate number or plate will pay the department a fee of $25 to cover the cost of the transfer, and complete the department's prescribed application at the time of transfer.(m) Gift license plates.(1) A person may purchase license plates as a gift for another person if the purchaser submits a statement that provides:(A) the purchaser's name and address;(B) the name and address of the person who will receive the license plates; and(C) the vehicle identification number of the vehicle on which the license plates will be displayed or a statement that the license plates will not be displayed on a vehicle.(2) To be valid for use on a motor vehicle, the recipient of the license plates must file an application with the county tax assessor-collector and pay the statutorily required registration fees in the amount as provided by Transportation Code, Chapter 502, and this subchapter.(n) Restyled vendor specialty license plates. A person who has purchased a multi-year vendor specialty license plate may request a restyled license plate at any time during the term of the plate.(1) For the purposes of this subsection, "restyled license plate" is a vendor specialty license plate that has a different style from the originally purchased vendor specialty license plate but:(A) is within the same price category, except if the license plate number was purchased through auction and has the same alpha-numeric characters and expiration date as the previously issued multi-year license plates; or(B) is restyling to an embossed specialty license plate style and has the same alpha-numeric characters and expiration date as the previously issued multi-year license plates.(2) The fee for each restyled license plate is:(A) $50 for restyling under subsection (n)(1)(A) of this section; or(B) $75 for restyling under subsection (n)(1)(B) of this section.</content><note type="source"><p>Source Note: The provisions of this §217.52 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective August 8, 2016, 41 TexReg 5777; amended to be effective December 4, 2016, 41 TexReg 9335; amended to be effective November 2, 2023, 48 TexReg 6388; amended to be effective July 1, 2025, 49 TexReg 8980; amended to be effective October 9, 2025, 50 TexReg 6517.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.53"><num value="217.53">§217.53</num><heading>Disposition of License Plates and Registration Insignia upon Sale or Transfer of Motor Vehicle.</heading><content>(a) Upon the sale or transfer of a motor vehicle to a dealer, the dealer shall remove the license plates and remove and dispose of the registration insignia from the motor vehicle. The dealer shall transfer or dispose of the removed general issue license plates in accordance with §215.151(d) of this title (relating to License Plate General Use Requirements).(b) Upon the sale or transfer of a motor vehicle in which neither party is a dealer, the license plates shall be removed from the motor vehicle by the seller or transferor. The removed license plates may be transferred to another motor vehicle if the following requirements are met:(1) the motor vehicle is titled in the seller's or transferor's name;(2) the motor vehicle is of the same vehicle classification as the motor vehicle from which the license plates were removed; and(3) the county tax assessor-collector with which the application is filed accepts a request to transfer the license plates by as provided by Transportation Code, §501.023 or §502.040, whichever applies.(c) License plates that are not transferred to another motor vehicle as described in subsection (b) of this section within 10 days after the date the license plate is removed from the motor vehicle must be rendered unusable by permanently marking the front of the plate with the word "VOID" or a large "X" and:(1) destroying the license plate;(2) recycling the license plate using a metal recycler registered under Occupations Code Chapter 1956; or(3) returning the license plate to the department or county tax assessor-collector.(d) A person who obtains a motor vehicle in a transaction described by subsection (b) of this section may obtain one vehicle transit permit (temporary single-trip permit), as provided by Transportation Code, §502.492, through the department's website at www.txdmv.gov.</content><note type="source"><p>Source Note: The provisions of this §217.53 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective August 8, 2016, 41 TexReg 5777; amended to be effective July 1, 2025, 49 TexReg 8980; amended to be effective October 9, 2025, 50 TexReg 6517.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.54"><num value="217.54">§217.54</num><heading>Registration of Fleet Vehicles</heading><content>(a) Scope. A registrant may consolidate the registration of multiple motor vehicles in a fleet instead of registering each vehicle separately. A fleet may include trailers and semitrailers. Except as provided by §217.55 of this title (relating to Exempt and Alias Vehicle Registration), to consolidate registration, a registration must meet the requirements of this section.(b) Eligibility. A fleet must meet the following requirements to be eligible for fleet registration.(1) No fewer than 12 vehicles will be registered as a fleet;(2) Vehicles may be registered in annual increments for up to eight years;(3) All vehicles in a fleet must be owned by or leased to the same business entity;(4) All vehicles must be vehicles that are not registered under the International Registration Plan; and(5) Each vehicle must currently be titled in Texas or be issued a registration receipt, or the registrant must submit an application for a title or registration for each vehicle.(c) Application.(1) Application for fleet registration must be in a form prescribed by the department. At a minimum the form will require:(A) the full name and complete address of the registrant;(B) a description of each vehicle in the fleet, which may include the vehicle's model year, make, model, vehicle identification number, document number, body style, gross weight, empty weight, and for a commercial vehicle, manufacturer's rated carrying capacity in tons;(C) the existing license plate number, if any, assigned to each vehicle; and(D) any other information that the department may require.(2) The application must be accompanied by the following items:(A) in the case of a leased vehicle, a certification that the vehicle is currently leased to the person to whom the fleet registration will be issued;(B) registration fees prescribed by law for the entire registration period selected by the registrant;(C) local fees or other fees prescribed by law and collected in conjunction with registering a vehicle for the entire registration period selected by the registrant;(D) evidence of financial responsibility for each vehicle as required by Transportation Code, §502.046, unless otherwise exempted by law;(E) annual proof of payment of Heavy Vehicle Use Tax;(F) any fees that are required to be collected at the time of registration under Transportation Code, §548.509 for the first year of registration under Transportation Code, §502.0023; and(G) any other documents or fees required by law.(d) Registration period.(1) The fleet owner will designate a single registration period for a fleet so the registration period for each vehicle will expire on the same date.(2) The fleet registration period will begin on the first day of a calendar month and end on the last day of a calendar month.(e) Registration receipt and fleet license plates.(1) As evidence of registration, the department will issue a registration receipt and one or two metal fleet license plates for each vehicle in a fleet.(2) The registration receipt for each vehicle shall at all times be carried in that vehicle and be available to law enforcement personnel upon request.(3) A registration receipt or fleet license plate may not be transferred between vehicles, owners, or registrants.(f) Fleet composition.(1) A registrant may add a vehicle to a fleet at any time during the registration period. An added vehicle will be given the same registration period as the fleet and will be issued one or two metal fleet license plates and a registration receipt.(2) A registrant may remove a vehicle from a fleet at any time during the registration period. After a vehicle is removed from the fleet, the fleet registrant shall either return the metal fleet license plates for that vehicle to the department or provide the department with acceptable proof that the metal fleet license plates for that vehicle have been destroyed. Credit for any vehicle removed from the fleet for the remaining full year increments can be applied to any vehicle added to the fleet or at the time of renewal. No refunds will be given if credit is not used or the account is closed.(3) If the number of vehicles in an account falls below 12 during the registration period, fleet registration will remain in effect. If the number of vehicles in an account is below 12 at the end of the registration period, fleet registration will be canceled. In the event of cancellation, each vehicle shall be registered separately. The registrant shall immediately either return all metal fleet license plates to the department or provide the department with acceptable proof that the metal fleet license plates have been destroyed.(g) Fees.(1) When a fleet is first established, the department will charge a registration fee for each vehicle for the entire registration period selected. A currently registered vehicle, however, will be given credit for any remaining time on its separate registration.(2) When a vehicle is added to an existing fleet, the department will charge a registration fee that is prorated based on the number of months of fleet registration remaining. If the vehicle is currently registered, this fee will be adjusted to provide credit for the number of months of separate registration remaining.(3) When a vehicle is removed from fleet registration, it will be considered to be registered separately. The vehicle's separate registration will expire on the date that the fleet registration would have expired. The registrant must pay the statutory replacement fee to obtain regular registration insignia before the vehicle may be operated on a public highway.(4) In addition to the registration fees prescribed by Transportation Code, Chapter 502, an owner registering a fleet under this section must pay a one-time fee of $10 per motor vehicle, semitrailer, or trailer in the fleet. This fee is also due as follows:(A) for each vehicle added to the owner's existing fleet; and(B) for each vehicle that a buyer registers as a fleet, even though the seller previously registered some or all of the vehicles as a fleet under this section.(h) Payment. Payment will be made in the manner prescribed by the department.(i) Cancellation.(1) The department will cancel registration for non-payment and lack of proof of annual payment of the Heavy Vehicle Use Tax.(2) The department may cancel registration on any fleet vehicle on the anniversary date of the registration if the fleet vehicle is not in compliance with the inspection requirements under Transportation Code, Chapter 548 or the inspection requirements in the rules of the Texas Department of Public Safety.(3) A vehicle with a canceled registration may not be operated on a public highway.(4) If the department cancels the registration of a vehicle under this subsection, the registrant can request the department to reinstate the registration by doing the following:(A) complying with the requirements for which the department canceled the registration;(B) providing the department with notice of compliance on a form prescribed by the department; and(C) for a registration canceled under paragraph (2) of this subsection, paying an administrative fee in the amount of $10.(5) A registrant is eligible for reinstatement of the registration only within 90 calendar days of the department's notice of cancellation.(6) If a registrant fails to timely reinstate the registration of a canceled vehicle registration under this section, the registrant:(A) is not entitled to a credit or refund of any registration fees for the vehicle; and(B) must immediately either return the metal fleet license plates to the department or provide the department with acceptable proof that the metal fleet license plates have been destroyed.(j) Inspection fee. The registrant must pay the department by the deadline listed in the department's invoice for any fees that are required to be collected at the time of registration under Transportation Code, §548.509 on an annual basis under Transportation Code, §502.0023.</content><note type="source"><p>Source Note: The provisions of this §217.54 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective August 8, 2016, 41 TexReg 5766; amended to be effective December 4, 2016, 41 TexReg 9335; amended to be effective March 1, 2018, 43 TexReg 1146; amended to be effective December 28, 2022, 47 TexReg 8756; amended to be effective November 2, 2023, 48 TexReg 6389; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.55"><num value="217.55">§217.55</num><heading>Exempt and Alias Vehicle Registration</heading><content>(a) Exempt license plate registration.(1) Issuance. Pursuant to Transportation Code, §502.453 or §502.456, certain vehicles owned by and used exclusively in the service of a governmental agency, owned by a commercial transportation company and used exclusively for public school transportation services, designed and used for fire-fighting or owned by a volunteer fire department and used in the conduct of department business, privately owned and used in volunteer county marine law enforcement activities, used by law enforcement under an alias for covert criminal investigations, owned by units of the United States Coast Guard Auxiliary headquartered in Texas and used exclusively for conduct of United States Coast Guard or Coast Guard Auxiliary business and operations, or owned or leased by a non-profit emergency medical service provider are exempt from payment of a registration fee and are eligible for exempt plates.(2) Application for exempt registration.(A) Application. An application for exempt license plates shall be made to the county tax assessor-collector, shall be made on a form prescribed by the department, and shall contain the following information:(i) vehicle description;(ii) name of the exempt agency;(iii) a certification by an authorized person stating that the vehicle is owned or under the control of and will be operated by the exempt agency; and(iv) a certification that each vehicle listed on the application has the name of the exempt agency printed on each side of the vehicle in letters that are at least two inches high or in an emblem that is at least 100 square inches in size and of a color sufficiently different from the body of the vehicle as to be clearly legible from a distance of 100 feet, unless the applicant complies with the requirements under this section for each vehicle that is exempt by law from the inscription requirements.(B) Emergency medical service vehicle.(i) The application for exempt registration must contain the vehicle description, the name of the emergency medical service provider, and a statement signed by an officer of the emergency medical service provider stating that the vehicle is used exclusively as an emergency response vehicle and qualifies for registration under Transportation Code, §502.456.(ii) A copy of an emergency medical service provider license issued by the Department of State Health Services must accompany the application.(C) Fire-fighting vehicle. The application for exempt registration of a fire-fighting vehicle or vehicle owned privately by a volunteer fire department and used exclusively in the conduct of department business must contain the vehicle description, including a description of any fire-fighting equipment mounted on the vehicle if the vehicle is a fire-fighting vehicle. The certification must be executed by the person who has the proper authority and shall state either:(i) the vehicle is designed and used exclusively for fire-fighting; or(ii) the vehicle is owned by a volunteer fire department and is used exclusively in the conduct of its business.(D) County marine law enforcement vehicle. The application for exempt registration of a privately-owned vehicle used by a volunteer exclusively in county marine law enforcement activities, including rescue operations, under the direction of the sheriff's department must include a statement signed by a person having the authority to act for a sheriff's department verifying that fact.(E) United States Coast Guard Auxiliary vehicle. The application for exempt registration of a vehicle owned by units of the United States Coast Guard Auxiliary headquartered in Texas and used exclusively for conduct of United States Coast Guard or Coast Guard Auxiliary business and operation, including search and rescue, emergency communications, and disaster operations, must include a statement by a person having authority to act for the United States Coast Guard Auxiliary that the vehicle or trailer is used exclusively in fulfillment of an authorized mission of the United States Coast Guard or Coast Guard Auxiliary, including search and rescue, emergency communications, or disaster operations.(F) Motor vehicles owned and used by state-supported institutions. If the applicant is exempt from the inscription requirements under Education Code §51.932, the applicant must present a certification that each vehicle listed on the application is exempt from the inscription requirements under Education Code §51.932.(3) Exception. A vehicle may be exempt from payment of a registration fee but display license plates other than exempt license plates if the vehicle is not registered under subsection (b) of this section.(A) If the applicant is a law enforcement office, the applicant must present a certification that each vehicle listed on the application will be dedicated to law enforcement activities.(B) If the applicant is exempt from the inscription requirements under Transportation Code, §721.003, the applicant must present a certification that each vehicle listed on the application is exempt from inscription requirements under Transportation Code, §721.003. The applicant must also provide a citation to the section that exempts the vehicle.(C) If the applicant is exempt from the inscription requirements under Transportation Code, §721.005 the applicant must present a certification that each vehicle listed on the application is exempt from inscription requirements under Transportation Code, §721.005. The applicant must also provide a copy of the order or ordinance that exempts the vehicle.(b) Affidavit for issuance of exempt registration under an alias.(1) On receipt of an affidavit for alias exempt registration, approved by the executive administrator of an exempt law enforcement agency, the department will issue alias exempt license plates for a vehicle and register the vehicle under an alias for the law enforcement agency's use in covert criminal investigations.(2) The affidavit for alias exempt registration must be in a form prescribed by the director and must include the vehicle description, a sworn statement that the vehicle will be used in covert criminal investigations, and the signature of the executive administrator or the executive administrator's designee as provided in paragraph (3) of this subsection. The vehicle registration insignia of any vehicles no longer used in covert criminal investigations shall be surrendered immediately to the department.(3) The executive administrator, by annually filing an authorization with the director, may appoint a staff designee to execute the affidavit. A new authorization must be filed when a new executive administrator takes office.(4) The letter of authorization must contain a sworn statement delegating the authority to sign the affidavit to a designee, the name of the designee, and the name and the signature of the executive administrator.(5) The affidavit for alias exempt registration must be accompanied by an application required by the department to create the alias record of vehicle registration and title as outlined in §217.13 of this title (relating to Alias Certificate of Title). The application must contain the information required by the department to create the alias record of vehicle registration and title.(c) Replacement of exempt registration.(1) If a metal exempt license plate is lost, stolen, or mutilated, a properly executed application for metal exempt license plates must be submitted to the county tax assessor-collector.(2) An application for replacement metal exempt license plates must contain the vehicle description, original license number, and the sworn statement that the license plates furnished for the vehicle have been lost, stolen, or mutilated and will not be used on any other vehicle.(d) Title requirements. Unless exempted by statute, a vehicle must be titled at the time the exempt registration is issued.(e) Extended Registration of County Fleet Vehicles.(1) Subsections (a)(2), (a)(3)(B), and (c) of this section do not apply under this subsection.(2) The owner of the exempt county fleet must file a completed application for exempt county fleet registration on a form prescribed by the department, and shall contain the following information:(A) vehicle description;(B) name of the exempt agency;(C) a certification by an authorized person stating that the vehicle is owned by and used exclusively in the service of the county;(D) a certification that each vehicle listed on the application has the name of the exempt agency printed on each side of the vehicle in letters that are at least two inches high or in an emblem that is at least 100 square inches in size and of a color sufficiently different from the body of the vehicle as to be clearly legible from a distance of 100 feet, unless the applicant complies with the requirements under this section for each vehicle that is exempt by law from the inscription requirements; and(E) designation of a single registration period for the fleet to ensure that the registration period for each vehicle will expire on the same last day of a calendar month.(3) The application for exempt county fleet registration must be accompanied by any fees that are required to be collected at the time of registration under Transportation Code, §548.509 for the first year of registration under Transportation Code, §502.0025.(4) As evidence of registration, the department will issue a registration receipt and one or two metal exempt fleet license plates for each vehicle in the exempt county fleet. The registration receipt for each vehicle must be carried in that vehicle at all times and be made available to law enforcement personnel upon request. The registration receipt and exempt fleet license plates may not be transferred between vehicles, owners, or registrants.(5) An owner may add or remove a vehicle from an exempt county fleet at any time during the registration period. An added vehicle will be given the same registration period as the other vehicles in the exempt county fleet and will be issued a registration receipt and one or two metal exempt fleet license plates. Upon the removal of a vehicle from the exempt county fleet, the owner of the vehicle shall dispose of the registration receipt and shall either return the metal exempt fleet license plates to the department or provide the department with acceptable proof that the metal exempt fleet license plates have been destroyed.(6) An owner must pay the department by the deadline listed in the department's invoice for any fees that are required to be collected at the time of registration under Transportation Code, §548.509 on an annual basis under Transportation Code, §502.0025. Payment shall be made in the manner prescribed by the department.(7) The department may cancel registration on an exempt county fleet or any vehicle in an exempt county fleet on the anniversary date of the registration if the vehicle is not in compliance with Transportation Code §502.0025, this subsection, the inspection requirements under Transportation Code Chapter 548, or the inspection requirements in the rules of the Texas Department of Public Safety. A vehicle with a canceled registration may not be operated on a public highway.(8) If the department cancels the registration of a vehicle in an exempt county fleet under subsection (e)(7) of this section, the owner may request that the department reinstate the registration. To request reinstatement, the owner must comply with the requirements that led the department to cancel the registration and must provide the department with notice of compliance on a form prescribed by the department. An owner is eligible for reinstatement of the registration of a vehicle in an exempt county fleet if the department receives the owner's request for reinstatement and proof of compliance no later than 90 calendar days after the date of the department's notice of cancellation. If the department does not timely receive an owner's request to reinstate the registration, the owner must immediately do the following:(A) either return all metal exempt county fleet license plates to the department or provide the department with acceptable proof that the metal exempt county fleet license plates have been destroyed; and(B) dispose of the registration receipt in a manner prescribed by the department.(9) If a metal exempt county fleet license plate is lost, stolen, or mutilated, the owner may request a new metal exempt county fleet license plate from the department. The request must include the following:(A) a certification that the previously issued metal exempt county fleet license plate furnished for the vehicle has been lost, stolen, or mutilated and that the new metal exempt county fleet license plate will not be used on any other vehicle;(B) the vehicle description; and(C) the original license plate number, if applicable.</content><note type="source"><p>Source Note: The provisions of this §217.55 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective August 8, 2016, 41 TexReg 5766; amended to be effective July 12, 2020, 45 TexReg 4358; amended to be effective December 28, 2022, 47 TexReg 8756; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.56"><num value="217.56">§217.56</num><heading>Registration Reciprocity Agreements</heading><content>(a) Purpose. To promote and encourage the fullest possible use of the highway system and contribute to the economic development and growth of the State of Texas and its residents, the department is authorized by Transportation Code, §502.091 to enter into agreements with duly authorized officials of other jurisdictions, including any state of the United States, the District of Columbia, a foreign country, a state or province of a foreign country, or a territory or possession of either the United States or of a foreign country, and to provide for the registration of vehicles by Texas residents and nonresidents on an allocation or distance apportionment basis, and to grant exemptions from the payment of registration fees by nonresidents if the grants are reciprocal to Texas residents.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise:(1) Cab card--The apportioned vehicle registration receipt that contains, but is not limited to, the vehicle description and the registered weight at which the vehicle may operate in each jurisdiction.(2) Department--The Texas Department of Motor Vehicles.(3) Director--The director of the Motor Carrier Division, Texas Department of Motor Vehicles.(4) Executive director--The chief executive officer of the department.(5) Regional Service Center--A department office which provides specific services to the public, including replacement titles, bonded title notices of determination, and apportioned registration under the International Registration Plan (IRP).(6) Temporary cab card--A temporary registration authorized by the department that allows the operation of a vehicle for 30 days subject to all rights and privileges afforded to a vehicle displaying apportioned registration.(c) Multilateral agreements.(1) Authority. The executive director may on behalf of the department enter into a multilateral agreement with the duly authorized officials of two or more other jurisdictions to carry out the purpose of this section.(2) International Registration Plan.(A) Applicability. The IRP is a registration reciprocity agreement among states of the United States and other jurisdictions providing for payment of registration fees on the basis of fleet distance operated in various jurisdictions. Its purpose is to promote and encourage the fullest possible use of the highway system by authorizing apportioned registration for commercial motor vehicles and payment of appropriate vehicle registration fees and thus contributing to the economic development and growth of the member jurisdictions.(B) Adoption. The department adopts by reference the January 1, 2024, version of the IRP. The department also adopts by reference the January 1, 2016, version of the IRP Audit Procedures Manual. In the event of a conflict between this section and the IRP or the IRP Audit Procedures Manual, the IRP and the IRP Audit Procedures Manual control. Copies of the documents are available online at www.irponline.org or on request to the department.(C) Application.(i) An applicant must submit an application to the department on a form prescribed by the director, along with additional documentation as required by the director. An applicant shall provide the department with a copy of the applicant's receipt under the Unified Carrier Registration System Plan and Agreement under 49 U.S.C. §14504a (UCR) to prove the applicant is currently registered under UCR if the applicant is required to register under UCR.(ii) Upon approval of the application, the department will compute the appropriate registration fees and notify the registrant.(D) Fees. Upon receipt of the applicable fees in the form as provided by §209.23 of this title (relating to Methods of Payment), the department will issue one or two license plates and a cab card for each vehicle registered.(E) Display of License Plates and Cab Cards.(i) The department will issue one license plate for a tractor, truck-tractor, trailer, and semitrailer. The license plate issued to a tractor or a truck-tractor shall be installed on the front of the tractor or truck-tractor, and the license plate issued for a trailer or semitrailer shall be installed on the rear of the trailer or semitrailer.(ii) The department will issue two license plates for all other vehicles that are eligible to receive license plates under the IRP. Once the department issues two license plates for a vehicle listed in this clause, one plate shall be installed on the front of the vehicle, and one plate shall be installed on the rear of the vehicle.(iii) The cab card shall be carried at all times in the vehicle in accordance with the IRP. If the registrant chooses to display an electronic image of the cab card on a wireless communication device or other electronic device, such display does not constitute consent for a peace officer, or any other person, to access the contents of the device other than the electronic image of the cab card.(iv) The authority to display an electronic image of the cab card on a wireless communication device or other electronic device does not prevent the Texas State Office of Administrative Hearings or a court of competent jurisdiction from requiring the registrant to provide a paper copy of the cab card in connection with a hearing, trial, or discovery proceeding.(F) Audit. An audit of the registrant's vehicle operational records may be conducted by the department according to the IRP provisions and the IRP Audit Procedures Manual. Upon request, the registrant shall provide the operational records of each vehicle for audit in unit number order, in sequence by date, and including, but not limited to, a summary of distance traveled by each individual vehicle on a monthly, quarterly, and annual basis with distance totaled separately for each jurisdiction in which the vehicle traveled.(G) Assessment. The department may assess additional registration fees of up to 100% of the apportionable fees paid by the registrant for the registration of its fleet in the registration year to which the records pertain, as authorized by the IRP, if an audit conducted under subparagraph (F) of this paragraph reveals that:(i) the operational records indicate that the vehicle did not generate interstate distance in two or more member jurisdictions for the distance reporting period supporting the application being audited, plus the six-month period immediately following that distance reporting period;(ii) the registrant failed to provide complete operational records; or(iii) the distance must be adjusted, and the adjustment results in a shortage of registration fees due Texas or any other IRP jurisdiction.(H) Refunds. If an audit conducted under subparagraph (F) of this paragraph reveals an overpayment of fees to Texas or any other IRP jurisdiction, the department will refund the overpayment of registration fees in accordance with Transportation Code, §502.195 and the IRP. Any registration fees refunded to a carrier for another jurisdiction will be deducted from registration fees collected and transmitted to that jurisdiction.(I) Cancellation or revocation. The director or the director's designee may cancel or revoke a registrant's apportioned registration and all privileges provided by the IRP as authorized by the following:(i) the IRP; or(ii) Transportation Code, Chapter 502.(J) Procedures for assessment, cancellation, or revocation.(i) Notice. If a registrant is assessed additional registration fees, as provided in subparagraph (G) of this paragraph, and the additional fees are not paid by the due date provided in the notice or it is determined that a registrant's apportioned license plates and privileges should be canceled or revoked, as provided in subparagraph (I) of this paragraph, the director or the director's designee will mail a notice by certified mail to the last known address of the registrant. The notice will state the facts underlying the assessment, cancellation, or revocation; the effective date of the assessment, cancellation, or revocation; and the right of the registrant to request a conference as provided in clause (ii) of this subparagraph.(ii) Conference. A registrant may request a conference upon receipt of a notice issued as provided by clause (i) of this subparagraph. The request must be made in writing to the director or the director's designee within 30 days of the date of the notice. If timely requested, the conference will be scheduled and conducted by the director or the director's designee at division headquarters in Austin and will serve to abate the assessment, cancellation, or revocation unless and until that assessment, cancellation, or revocation is affirmed or disaffirmed by the director or the director's designee. In the event matters are resolved in the registrant's favor, the director or the director's designee will mail the registrant a notice of withdrawal, notifying the registrant that the assessment, cancellation, or revocation is withdrawn, and stating the basis for that action. In the event matters are not resolved in the registrant's favor, the director or the director's designee will issue a decision reaffirming the department's assessment of additional registration fees or cancellation or revocation of apportioned license plates and privileges. The registrant has the right to appeal in accordance with clause (iii) of this subparagraph.(iii) Appeal. If a conference held in accordance with clause (ii) of this subparagraph fails to resolve matters in the registrant's favor, the registrant may submit an appeal under §224.122 of this title (relating to Appeal of Decision Regarding Assessment, Cancellation, or Revocation Under §217.56). An appeal will be governed by Chapter 224 of this title (relating to Adjudicative Practice and Procedure) and Transportation Code, Chapter 502.(K) Reinstatement.(i) The director or the director's designee will reinstate apportioned registration to a previously canceled or revoked registrant if all applicable fees and assessments due on the previously canceled or revoked apportioned account have been paid and the applicant provides proof of an acceptable recordkeeping system for a period of no less than 60 days.(ii) The application for the following registration year will be processed in accordance with the provisions of the IRP.(L) Denial of apportioned registration for safety reasons. The department will comply with the requirements of the Performance and Registration Information Systems Management program (PRISM) administered by the Federal Motor Carrier Safety Administration (FMCSA).(i) Denial or suspension of apportioned registration. Upon notification from the FMCSA that a carrier has been placed out of service for safety violations, the department will:(I) deny initial issuance of apportioned registration;(II) deny authorization for a temporary cab card, as provided for in subparagraph (M) of this paragraph;(III) deny renewal of apportioned registration; or(IV) suspend current apportioned registration.(ii) Issuance after denial of registration or reinstatement of suspended registration. The director or the director's designee will reinstate or accept an initial or renewal application for apportioned registration from a registrant who was suspended or denied registration under clause (i) of this subparagraph upon presentation of a Certificate of Compliance from FMCSA, in addition to all other required documentation and payment of fees.(M) Temporary cab card.(i) Application. The department may authorize issuance of a temporary cab card to a motor carrier with an established Texas apportioned account for a vehicle upon proper submission of all required documentation, a completed application, and all fees for either:(I) Texas title as prescribed by Transportation Code, Chapter 501 and Subchapter A of this chapter (relating to Motor Vehicle Titles); or(II) registration receipt to evidence title for registration purposes only (Registration Purposes Only) as provided for in Transportation Code, §501.029 and §217.24 of this title (relating to Vehicle Last Registered in Another Jurisdiction).(ii) Title application. A registrant who is applying for a Texas title as provided for in clause (i)(I) of this subparagraph and is requesting authorization for a temporary cab card, must submit to a Regional Service Center a photocopy of the title application receipt issued by the county tax assessor-collector's office.(iii) Registration Purposes Only. A registrant who is applying for Registration Purposes Only under clause (i)(II) of this subparagraph and is requesting authorization for a temporary cab card, must submit an application and all additional original documents or copies of original documents required by the director to a Regional Service Center.(iv) Department approval. On department approval of the submitted documents, the department will send notice to the registrant to finalize the transaction and make payment of applicable registration fees.(v) Finalization and payment of fees. To finalize the transaction and print the temporary cab card, the registrant may compute the registration fees through the department's apportioned registration software application, TxFLEET system, and:(I) make payment of the applicable registration fees to the department as provided by §209.23 of this title; and(II) afterwards, mail or deliver payment of the title application fee in the form of a check, certified cashier's check, or money order payable to the county tax assessor-collector in the registrant's county of residency and originals of all copied documents previously submitted.(vi) Deadline. The original documents and payment must be received by the Regional Service Center within 72-hours after the time that the office notified the registrant of the approval to print a temporary cab card as provided in clause (iv) of this subparagraph.(vii) Failure to meet deadline. If the registrant fails to submit the original documents and required payment within the time prescribed by clause (vi) of this subparagraph, the registrant's privilege to use this expedited process to obtain a temporary cab card will be denied by the department for a period of six months from the date of approval to print the temporary cab card.</content><note type="source"><p>Source Note: The provisions of this §217.56 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective December 9, 2015, 40 TexReg 8801; amended to be effective December 4, 2016, 41 TexReg 9335; amended to be effective June 28, 2017, 42 TexReg 3274; amended to be effective January 1, 2019, 43 TexReg 8636; amended to be effective March 3, 2022, 47 TexReg 977; amended to be effective June 1, 2024, 49 TexReg 2749; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.57"><num value="217.57">§217.57</num><heading>Alternatively Fueled Vehicles</heading><content>The department shall collect vehicle fuel type information for motor vehicles registered in this state, including alternatively fueled vehicles, as defined by Transportation Code, §502.004, and submit an annual report to the legislature that includes the information collected under this section.</content><note type="source"><p>Source Note: The provisions of this §217.57 adopted to be effective November 30, 2016, 41 TexReg 9339.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.58"><num value="217.58">§217.58</num><heading>Digital License Plate Eligibility</heading><content>(a) Vehicles eligible for a digital license plate. The following vehicles are eligible for a digital license plate, subject to the exceptions in subsection (b) of this section:(1) any vehicle owned or operated by a governmental entity; or(2) a vehicle owned or operated by a person other than a governmental entity if the vehicle is:(A) part of a commercial fleet, as defined by Transportation Code, §502.001; or(B) a truck, motorcycle, moped, trailer, semitrailer, sport utility vehicle, or other vehicle that is required to be registered under Transportation Code, Chapter 502.(b) Vehicles not eligible for a digital license plate.(1) Notwithstanding subsection (a) of this section, a vehicle is not eligible for a digital license plate if the vehicle is not required to display a license plate on the rear of the vehicle, including:(A) truck-tractors; or(B) trucks with combination registration under Transportation Code, §502.255.(2) Notwithstanding subsection (a)(2)(B) of this section, a vehicle registered as a passenger vehicle is not eligible for a digital license plate.(c) Requirements for Eligibility Verification and Issuance of Digital Plates.(1) An applicant for a digital license plate may not obtain a digital license plate from a digital license plate provider if the vehicle for which a digital license plate is being sought is not registered. The individual must first submit a complete initial application for registration and the accompanying documents and fees at the county tax assessor-collector's office, or at the department for vehicles that must be registered directly through the department under this chapter. After receipt of the necessary documentation and fees, the department will issue one or two metal license plates, in accordance with this chapter, to the applicant for the digital license plate, depending on the type of vehicle. After the department issues the metal license plate or plates to the applicant, the applicant may then proceed with obtaining a digital license plate from a digital license plate provider.(2) A digital license plate provider must obtain the following information from a digital license plate applicant before it verifies the vehicle's eligibility for a digital license plate:(A) the last four digits of the vehicle identification number; and(B) the existing metal license plate number.(3) A digital license plate provider may not issue a digital license plate for a vehicle that has not been issued Texas registration in the name of the applicant for the digital license plate.(4) Any metal license plate issued for the rear of the vehicle and any associated plate sticker issued for a rear metal license plate must be carried in or on the vehicle at all times when using a digital license plate.</content><note type="source"><p>Source Note: The provisions of this §217.58 adopted to be effective July 12, 2020, 45 TexReg 4358.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.59"><num value="217.59">§217.59</num><heading>Digital License Plate Testing</heading><content>Before the initial deployment of a digital license plate model and for each subsequent hardware upgrade, which includes all physical aspects of the digital license plate except for the mounting bracket, a digital license plate provider must provide the department with documentation sufficient for the department to be assured that the digital license plate model for which approval is sought was tested in a manner set forth by the department. The documentation must include a description of the testing protocols and methods. Digital license plate testing must be conducted by governmental entities, universities, or independent nonprofit research and development organizations. Testing must include:(1) reflectivity testing with results demonstrating that the digital license plates are manufactured utilizing reflectorized material as required by Transportation Code, §504.005, and are reflective in daytime, as defined in Transportation Code, §541.401 and nighttime, as defined in Transportation Code, §541.401 with the use of low beam headlights, at a distance of no less than 75 feet. Reflectivity testing with results demonstrating that the digital license plates perform consistently with the International Organization for Standardization ISO 7591, clauses 6 and 7 is preferred;(2) legibility and readability testing with results demonstrating that digital license plates are legible in daytime, as defined in Transportation Code, §541.401 and nighttime, as defined in Transportation Code, §541.401, using low beam headlights, under optimal conditions at a distance of no less than 75 feet; and are readable with commercially-available automated license plate readers and in a variety of weather conditions; and(3) commercially-available penetration testing, as approved by the department, for the protection of the digital license plate, the electronic display information, and the digital license plate provider's systems. In addition to testing before initial approval and each subsequent hardware upgrade, testing described in this paragraph must be completed for each software or firmware upgrade.</content><note type="source"><p>Source Note: The provisions of this §217.59 adopted to be effective July 12, 2020, 45 TexReg 4358.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.60"><num value="217.60">§217.60</num><heading>Digital License Plate Specifications and Requirements</heading><content>(a) In addition to ensuring that the digital license plate meets or exceeds the benefits for law enforcement that are provided by metal license plates, a digital license plate provider must ensure that digital license plates submitted for department approval and provided for customer use comply with the following requirements:(1) provide an electronic visual display resistant to breakage, and in cases when the electronic visual display is scratched, chipped, cracked, or weather damaged, a digital license plate must continue to legibly display digital license plate information and the physical security feature defined in paragraph (2) of this subsection;(2) include one or more physical security features to verify the plate was issued by an approved digital license plate provider;(3) continue to display digital license plate information when the digital license plate does not maintain connectivity to a wireless network; and(4) when the vehicle is not in park:(A) display required digital license plate information on the plate in the same font size and location as the information displayed on a corresponding metal license plate; and(B) display the registration expiration month and year, as determined by the department, in the same font size and location as displayed on a corresponding metal license plate when a vehicle does not have a windshield.(b) Placement of license plate and vehicle registration insignia.(1) The digital license plate must be attached to the exterior rear of the vehicle.(2) A metal license plate must be attached to the exterior front of the vehicle in compliance with this chapter, unless the vehicle is not required to display a plate on the front of the vehicle under this chapter.(3) The vehicle's registration insignia for validation of registration must be displayed on or kept in a vehicle in accordance with §217.27 of this title (relating to Vehicle Registration Insignia).</content><note type="source"><p>Source Note: The provisions of this §217.60 adopted to be effective July 12, 2020, 45 TexReg 4358.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.61"><num value="217.61">§217.61</num><heading>Digital License Plate Designs and Displays</heading><content>(a) Digital license plate designs.(1) A digital license plate provider is prohibited from designing or creating specialty license plates under Transportation Code Chapter 504, unless the provider has a contract with the department under Transportation Code, §504.851.(2) A digital license plate provider must enter into a licensing agreement, with standard language as approved by the department, for the display of any third party's intellectual property on a digital license plate.(b) Digital license plate displays.(1) Electronic information to be displayed on a digital license plate, including the content and design of both required and optional digital license plate information, must be approved by the department. A digital license plate may not be personalized or customized in any region of interest, including the legend area, except as provided by the department under this chapter.(2) Optional digital license plate information when in park. When the vehicle is in park, optional digital license plate information may include any of the following optional digital license plate information as approved by the department and the digital license plate owner:(A) an emergency alert or other public safety alert issued by a governmental entity, including an alert authorized under Subchapter L, M, or P of Government Code Chapter 411;(B) vehicle manufacturer safety recall notices;(C) advertising; or(D) a parking permit pursuant to an agreement between a digital license plate provider and the entity that issues the parking permit.(3) When the vehicle is in park, required digital license plate information may be reduced in size but must be in a field no smaller than 4.5 inches by 2.5 inches in the upper right-hand corner. The alphanumeric characters and any symbols in the reduced field must be black. The background in the reduced field must be white. There must be two adjoining borders outlining the field. The inside border must be black and the outside border must be white.(4) If more than one category of optional digital information in subsection (b)(2) of this subsection could be displayed at one time, the department may determine the order of display on the digital license plate.(5) A digital license plate may be authorized for electronic toll collection with approval from, and agreement between, a digital license plate provider and the appropriate toll entity.(c) Registration Expiration Notification.(1) Digital license plate providers must display the word "EXPIRED" as approved by the department on a digital license plate if registration has expired.(2) If a digital license plate is displaying a registration expiration notification, the registration notification and optional digital license plate information may not encroach upon the primary or secondary regions of interest.(3) Unless otherwise prescribed by this chapter, the digital license plate provider must not remove an expired registration notification until after the department confirms registration is current.(d) Owner authorizations.(1) The digital license plate provider may not display optional digital license plate information on a digital license plate unless the digital license plate owner authorizes the display.(2) The digital license plate provider may not disclose GPS data to any person unless the digital license plate owner authorizes its disclosure or the disclosure of the GPS data is required or permitted under other law.(3) The digital license plate provider must disclose to potential and current digital license plate owners how GPS data authorized for disclosure by the owner or by law will be used and to whom it will be disclosed.(4) The digital license plate provider may not require the owner to authorize the display or disclosure under paragraphs (1) or (2) of this subsection as a condition of purchase or lease of a digital license plate.(5) The digital license plate provider must immediately discontinue the display of optional digital license plate information if the digital license plate owner requests for the display of the optional digital license plate information to be discontinued.(6) The digital license plate provider must provide a single mechanism (or method or means) by which the digital license plate owner may opt in or opt out of the display of optional digital license plate information.</content><note type="source"><p>Source Note: The provisions of this §217.61 adopted to be effective July 12, 2020, 45 TexReg 4358.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.62"><num value="217.62">§217.62</num><heading>Digital License Plate Removal and Malfunction</heading><content>(a) A digital license plate provider must have a mechanism to prevent potential theft of and tampering with the digital license plate. At a minimum, a digital license plate provider must ensure the digital license plate ceases the display of digital license plate information:(1) when a digital license plate malfunctions or upon termination of services between a digital license plate provider and owner; or(2) if a digital license plate provider determines that the digital license plate has been compromised, tampered with, or fails to maintain integrity of registration data.(b) Digital license plate providers must immediately notify the department in the following circumstances:(1) commencement of services by the digital license plate provider;(2) termination of services by the digital license plate provider;(3) determination that the digital license plate has been compromised; or(4) the transfer of a digital license plate to a different owner.(c) The digital license plate provider is authorized to disable the display of a digital license plate for failure of the digital license plate owner to pay the fees due to the digital license plate provider.</content><note type="source"><p>Source Note: The provisions of this §217.62 adopted to be effective July 12, 2020, 45 TexReg 4358.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.63"><num value="217.63">§217.63</num><heading>Digital License Plate Fees and Payment</heading><content>(a) Fees.(1) A person issued a digital license plate must pay an administrative fee of $45 upon initial application for a digital license plate and on renewal of registration for a vehicle with a digital license plate.(2) The registration period of the digital license plate will be aligned with the registration period for the vehicle and the administrative fee due under subsection (a) will be prorated to yield the appropriate fee based on the remaining registration period.(3) A digital license plate administrative fee will be refunded only when registration fees are overcharged under Transportation Code, §502.195.(b) Payment of fees.(1) All state, county, local, and other applicable fees are due at the time of registration of a vehicle with a digital license plate.(2) The fees for issuance of digital license plates will be paid directly to the state through the digital license plate provider and state systems.</content><note type="source"><p>Source Note: The provisions of this §217.63 adopted to be effective July 12, 2020, 45 TexReg 4358; amended to be effective May 2, 2024, 49 TexReg 2752.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.64"><num value="217.64">§217.64</num><heading>Digital License Plate Provider Services and Replacement</heading><content>(a) Digital license plate provider services.(1) A digital license plate provider must provide customer support for digital license plate customers that is available at least during standard business hours Central Time.(2) An individual who seeks the repair, service, or replacement of a digital license plate must contact a digital license plate provider.(b) When a digital license plate is lost, stolen, mutilated, or needs to be replaced for cosmetic or readability reasons, including invalidation by the digital license plate provider or plate malfunction:(1) a digital license plate replacement may be obtained from the digital license plate provider; or(2) the metal license plate issued for the vehicle may be installed on the rear of the vehicle in lieu of the digital license plate.(c) Unless a metal license plate was obtained directly from the department, a replacement metal license plate must be obtained from a county tax assessor-collector's office.</content><note type="source"><p>Source Note: The provisions of this §217.64 adopted to be effective July 12, 2020, 45 TexReg 4358.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scB/s217.66"><num value="217.66">§217.66</num><heading>Specialized License Plate for Registration of Rental Trailers</heading><content>(a) For purposes of this section: (1) "rental fleet" means five or more rental trailers that are:(A) owned by the same owner; and(B) offered for rent or rented without drivers.(2) "utility trailer" means:(A) a trailer of flatbed design with no roof and either low side walls or no side walls; and(B) with a gross weight of 7,500 pounds or less.(b) Notwithstanding §217.27(a)(2) and (c)(2) of this title (relating to Vehicle Registration Insignia), the department shall issue a registration receipt and one specialized metal license plate as evidence of registration for a utility trailer that is part of a rental fleet. The specialized metal license plate under this section does not include an expiration date or require an annual registration insignia to be valid under Transportation Code, §502.059.(c) This section does not apply to vehicles registered under Transportation Code, §502.0023.</content><note type="source"><p>Source Note: The provisions of this §217.66 adopted to be effective March 6, 2025, 50 TexReg 1701.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c217/scC"><num value="C">SUBCHAPTER C</num><heading>REGISTRATION AND TITLE SYSTEMS</heading><section identifier="/us/state/tx/tac/t43/p10/c217/scC/s217.71"><num value="217.71">§217.71</num><heading>Automated and Web-Based Vehicle Registration and Title Systems</heading><content>(a) Purpose.(1) Transportation Code, Chapters 501 and 502, charge the department with the responsibility for issuing titles and registering vehicles operating on the roads, streets, and highways of the state.(2) To provide a more efficient, cost-effective system for registering and titling vehicles, submitting title and registration records to county tax assessor-collectors and the department, maintaining records, improving inventory control of accountable items, and collecting and reporting of applicable fees consistent with those statutes, the department has designed:(A) an automated system known as the registration and title system. This system expedites registration and titling processes, provides a superior level of customer service to the owners and operators of vehicles, and facilitates availability of the department's motor vehicle records for official law enforcement needs. Automated equipment compatible with the registration and title system is indispensable to the operational integrity of the system; and(B) a web-based system known as webDEALER. This system expedites registration and titling processes, provides a superior level of customer service to the owners and operators of vehicles, and facilitates availability of the department's motor vehicle records for official law enforcement needs.(3) This subchapter prescribes the policies and procedures under which the department may make the automated equipment available to a county tax assessor-collector as designated agent of the state for processing title and vehicle registration documents and the policies and procedures to use webDEALER.(b) Definitions. The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Automated equipment--Equipment associated with the operation of the registration and titling system, including, but not limited to, microcomputers, printers, software, and cables.(2) Department--The Texas Department of Motor Vehicles.(3) Executive director--The executive director of the Texas Department of Motor Vehicles.(4) Fair share allocation--The amount of automated equipment determined by the department to be effective at providing a reasonable level of service to the public. This amount will be determined on transaction volumes, number of county substations, and other factors relating to a particular county's need.(5) RTS--The department's registration and title system.(6) Title application--A form as defined by §217.2 of this title (relating to Definitions), and includes the electronic process provided by the department that captures the information required by the department to create a motor vehicle title record.(7) webDEALER--The department's web-based titling and registration system used to submit title applications to county tax assessor-collectors and the department. This term includes any other web-based system which facilitates electronic submission of title applications, including webSALVAGE, eTITLE, and webLIEN.</content><note type="source"><p>Source Note: The provisions of this §217.71 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective March 1, 2018, 43 TexReg 1146; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scC/s217.72"><num value="217.72">§217.72</num><heading>Automated Equipment for the Registration and Title System</heading><content>(a) Initial allocation of automated equipment. When requested by resolution of the commissioners court of a county, and subject to the terms and conditions specified in subsection (d) of this section, the department will:(1) make a fair share allocation of automated equipment available to that county to be used by its county tax assessor-collector in implementing and operating RTS;(2) provide the county tax assessor-collector with computer programs and personnel training; and(3) furnish official automated forms and, for the initial start-up of the system, automated equipment supplies.(b) Additional automated equipment. At the request of the county tax assessor-collector of a county, subject to the terms and conditions specified in subsection (d) of this section, and for an amount of consideration that will cover the department's costs, the department will enter into an agreement with the commissioners court of that county under which the department will lease automated equipment to that county in addition to the fair share allocation for that county. Leased equipment will remain the property of the department and will be used primarily for RTS.(c) Automated Registration and Titling System fee. The department will collect an additional fee of $.50 for each registration for the purposes set forth in Transportation Code, §502.356. The fee shall be deposited into a subaccount in the Texas Department of Motor Vehicles fund.(d) Conditions of availability.(1) A county must:(A) meet electrical power supply criteria specified by the department prior to installation of the automated equipment;(B) bear all costs incurred for 24-hour per day electrical power consumption for operation of the equipment;(C) provide for the physical security and protection of the equipment and shall indemnify the department for any loss or damages to the equipment while in the custody and control of the county;(D) provide the department's maintenance personnel access to the equipment during business hours of the involved county office; and(E) notify the department not less than 30 working days prior to relocating or adding automation equipment, or of the closing or remodeling of an office, that may affect automated equipment operations.(2) At the discretion of a county tax assessor-collector, automated equipment may be located at sites other than those of the county tax assessor-collector, including privately owned, for-profit enterprises performing registration and title functions for the county tax office. With regard to equipment located at sites other than those of the county tax assessor-collector, the department's responsibility will be limited to ensuring that the equipment remains operational. The county will be responsible for all training, user support, forms, supplies, user policy and procedures, and other support associated with this equipment.(3) Automated equipment made available to a county pursuant to this section shall remain the property of the department and must be used by the county tax assessor-collector for operation of RTS; provided, however, that while not in RTS usage, the equipment may be utilized for another statutory duty or function of that office.</content><note type="source"><p>Source Note: The provisions of this §217.72 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective August 8, 2016, 41 TexReg 5777; amended to be effective March 1, 2018, 43 TexReg 1146.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scC/s217.73"><num value="217.73">§217.73</num><heading>Agreement Related to Automated Equipment</heading><content>(a) Prior to receiving automated equipment pursuant to §217.72 of this title (relating to Automated Equipment for the Registration and Title System), a county must enter a written agreement with the department.(b) The agreement shall:(1) be in a form prescribed by the department;(2) include at a minimum each of the terms and conditions specified in §217.72;(3) be executed on behalf of the department by the executive director or the director's designee not below the level of Director of the Vehicle Titles and Registration Division; and(4) be approved by resolution or order of the commissioners court and executed on behalf of the county by the county judge and the county tax assessor-collector.</content><note type="source"><p>Source Note: The provisions of this §217.73 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective March 1, 2018, 43 TexReg 1146.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scC/s217.74"><num value="217.74">§217.74</num><heading>webDEALER Access, Use, and Training</heading><content>(a) Each county tax assessor-collector shall request access to, and accept title applications submitted through, webDEALER. A county tax assessor-collector must utilize webDEALER in order to accept a title application in the county as provided by subsections (b) and (c) of this section.(b) Except as provided in subsection (c) of this section, a person who wishes to become a user of webDEALER must contact each entity to whom they submit title applications for authorization to utilize webDEALER. A user must receive authorization from each entity, including each county tax assessor-collector, to whom the user submits title applications. Title applications submitted to the department require the authorization by the department.(c) A motor vehicle dealer who holds a general distinguishing number (holder) must contact each county tax assessor-collector to whom they submit title applications for webDEALER access. The county must provide the holder access. A holder must obtain access from each county to whom the user submits title applications. All active holders must obtain access to webDEALER in advance of July 1, 2025. If a holder does not have webDEALER access by April 30, 2025, the department may provide the holder access to webDEALER in the county where the holder is located.(d) A county tax assessor-collector may authorize a deputy appointed by the county tax assessor-collector in accordance with subchapter H of this chapter (relating to Deputies) to utilize webDEALER.(e) An entity or person authorized under subsection (b) of this section may have their authorization to use webDEALER revoked, rescinded, or cancelled at any time, with no notice, at the discretion of a county tax assessor-collector or the department.(f) When submitting a title application through webDEALER, a user must:(1) stamp the word "SURRENDERED" across the front face and the next open assignment or reassignment space of any secure title document or other acceptable ownership evidence as determined by the department in:(A) arial font;(B) black ink; and(C) a size of 1/4" height x 2 1/4" length;(2) retain the physical document described in paragraph (1) of this subsection for a minimum of four calendar years from the date of submitting a scanned copy of the stamped title document using the webDEALER system; and(3) submit any documents required to be submitted with the title application with a scanned resolution of at least 200 dots per inch (DPI).(g) Required webDEALER training. Each user accessing webDEALER under the account of a holder that is described under subsection (c) and required to process title and registration transactions through webDEALER in accordance with Transportation Code, Section 520.0055, must complete webDEALER training conducted by the department by April 30, 2025. New users created on or after April 30, 2025, must complete webDEALER training before being given webDEALER permissions.(1) Required training will include, at a minimum, training regarding transactions performed in webDEALER and proper use of the system.(2) A user who has had access to webDEALER for more than six months and submitted more than 100 transactions within the system as of October 1, 2024, is not required to take the webDEALER training under this section.(3) Failure for holders and users accessing webDEALER under the holder's account to complete the required training as outlined in this section shall result in denial of access to webDEALER.</content><note type="source"><p>Source Note: The provisions of this §217.74 adopted to be effective March 1, 2018, 43 TexReg 1146; amended to be effective October 21, 2020, 45 TexReg 7442; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scC/s217.75"><num value="217.75">§217.75</num><heading>Required Training on the Registration and Title System and Identification of Fraud</heading><content>(a) Required training. A person performing registration or titling services through RTS, including a department employee, department contractor, county tax assessor-collector employee, or full service deputy as defined by §217.162(6) of this title (relating to Definitions), must complete a training program as prescribed by this section. Required training will include, at a minimum:(1) training regarding transactions performed in RTS; and(2) identification of fraudulent activity related to vehicle registration and titling.(b) Online training. The department will make required training for county tax assessor-collector employees and full service deputies available through the department's online training system.(c) Registration and Title System training for county tax assessor-collector staff and full service deputies. To satisfy the training requirements under subsection (a)(1) of this section, a county tax assessor-collector employee or full service deputy must complete each training course associated with the permissions that person is assigned in RTS. A person completes a training course when the person obtains a score of at least 80 percent on the course test, and the training is verified. This section does not limit the number of times or how often a person may take a training course or test.(1) A county tax assessor-collector or county tax assessor-collector's system administrator must create accounts for and assign permissions in RTS to each employee or full service deputy who will be given access to RTS based on that person's job duties as determined by the county tax assessor-collector or the county tax assessor-collector's system administrator.(2) The department will assign training content for specific permissions in RTS.(3) A person must take required training using the person's individually assigned training identifier for the department's online training system.(4) The department will enable a permission on completion of required training.(5) If new training is made available for a new or existing permission a person with permissions enabled before the new training is made available must complete the required training within 120 days of the department's notification that the training is available. A county employee, or full service deputy, who is on leave on the date of the department's notification that the new training is available, for at least 120 days thereafter, and due to circumstances beyond that person's control, as determined by the county tax assessor-collector may have an additional 14 days upon returning to work to complete the new training.(d) Failure to complete required training.(1) Except as provided in paragraph (2) of this subsection, the department will disable a permission if a person fails to complete required training for the permission within the timeframes required by this section.(2) The department will not disable a permission for a county tax assessor-collector employee or a full service deputy if the person timely submits their score for each required training course; however, the department will disable the person's permission if the department determines that the submitted score is not at least 80 percent.(3) A disabled permission may be enabled by using the process to complete training and enable permissions in subsection (c) of this section.</content><note type="source"><p>Source Note: The provisions of this §217.75 adopted to be effective December 16, 2019, 44 TexReg 7417; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scC/s217.76"><num value="217.76">§217.76</num><heading>Criteria for Suspension or Denial of Access to RTS</heading><content>(a) Sections 217.77, 217.78, and this section apply to individuals, other than department employees, and entities, with RTS access.(b) The department may suspend or deny any individual user's or entity's access to RTS if:(1) information exists to support a reasonable suspicion that the individual or entity is committing fraud, waste, or abuse related to RTS, including:(A) misappropriation of money;(B) falsification of government records; or(C) a crime involving fraud, theft, deceit, dishonesty, misrepresentation, or that otherwise reflects poorly on the individual's honesty or trustworthiness; or(2) the individual or entity demonstrates non-compliance with applicable statutes and rules, including Texas Administrative Code, Chapter 217 and Transportation Code, Chapters 501, 502, 504, or 520.(c) Acceptable forms of information that can support a reasonable suspicion include:(1) information gathered in an audit under Transportation Code, §520.010 or §520.011;(2) a request to suspend or deny the individual or entity access from a county tax assessor-collector;(3) review of transactions processed by the individual or entity; and(4) oral or written information or complaints from:(A) a law enforcement agency;(B) another government agency;(C) an association or trade group;(D) an entity; or(E) an identifiable individual.</content><note type="source"><p>Source Note: The provisions of this §217.76 adopted to be effective March 1, 2020, 45 TexReg 1231.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scC/s217.77"><num value="217.77">§217.77</num><heading>Process for Suspension or Denial of Access to RTS</heading><content>(a) The executive director or the executive director's designee has sole authority to:(1) determine access to RTS;(2) determine that information exists to support a reasonable suspicion that the individual or entity is committing fraud, waste, or abuse related to RTS; and(3) suspend or deny the individual's or entity's access to RTS, based on the criteria in §217.76 of this title (relating to Criteria for Suspension or Denial of Access to RTS).(b) A county tax assessor-collector may request the executive director or the executive director's designee immediately suspend a county employee's or full service deputy's access to RTS based on the criteria in §217.76 of this title.(c) The department shall inform the county tax assessor-collector before taking action to suspend or deny the individual's or entity's access to RTS under subsection (a) of this section, unless:(1) the action is as a result of a court order;(2) time is of the essence;(3) revealing this action would detrimentally interfere with or compromise an active investigation by the department or an enforcement agency of this state or the federal government; or(4) the action is based on the county tax collector-assessor's request in subsection (b) of this section.</content><note type="source"><p>Source Note: The provisions of this §217.77 adopted to be effective March 1, 2020, 45 TexReg 1231.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scC/s217.78"><num value="217.78">§217.78</num><heading>Reinstatement of Access to RTS</heading><content>(a) A county tax assessor-collector may request a review of a decision to suspend or terminate RTS access by submitting a request for reinstatement in writing to the department.(1) The request for reinstatement should include all supporting information that is relevant to support reinstatement.(2) A county tax assessor-collector may submit information in support of or relevant to a request for reinstatement to the department.(3) The executive director shall make a final determination on reinstatement within 21 calendar days from the date the department receives the request for reinstatement. If the department requests additional information from the individual, entity, or county tax assessor-collector, the deadline for determination of the request for reinstatement is tolled until the additional information is received.(b) Unless an individual or entity is the subject of a pending criminal investigation by a law enforcement entity, the individual's or entity's access to RTS will be reinstated if the department determines that:(1) no fraud, waste, or abuse was committed;(2) the matter has been remedied to the satisfaction of the department; or(3) the individual or entity is in compliance with applicable statutes and rules.</content><note type="source"><p>Source Note: The provisions of this §217.78 adopted to be effective March 1, 2020, 45 TexReg 1231.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c217/scD"><num value="D">SUBCHAPTER D</num><heading>NONREPAIRABLE AND SALVAGE MOTOR VEHICLES</heading><section identifier="/us/state/tx/tac/t43/p10/c217/scD/s217.81"><num value="217.81">§217.81</num><heading>Purpose and Scope</heading><content>Transportation Code, Chapter 501, Subchapter E, charges the department with the responsibility of issuing titles for nonrepairable and salvage motor vehicles and titles for rebuilt salvage motor vehicles. For the department to efficiently and effectively issue the vehicle titles, maintain records, collect the applicable fees, and ensure the proper application by motor vehicle owners, this subchapter prescribes the policies and procedures for the application for and issuance of vehicle titles for nonrepairable and salvage motor vehicles, and titles for rebuilt salvage motor vehicles.</content><note type="source"><p>Source Note: The provisions of this §217.81 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scD/s217.82"><num value="217.82">§217.82</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Casual sale--Sale as defined by Transportation Code, §501.091(2).(2) Certificate of title--Title as defined by Transportation Code, §501.002(1-a).(3) Application for Title--A form prescribed by the director of the department's Vehicle Titles and Registration Division that reflects the information required by the department to create a motor vehicle title record.(4) Damage--Damage as defined by Transportation Code, §501.091(3).(5) Date of sale--The date of the transfer of possession of a specific vehicle from a seller to a purchaser.(6) Department--The Texas Department of Motor Vehicles.(7) Export-only sale--The sale of a nonrepairable or salvage motor vehicle, by a salvage vehicle dealer, including a salvage pool operator acting as agent for an insurance company, or a governmental entity, to a person who resides outside the United States.(8) Flood damage--A title remark that is initially indicated on a nonrepairable or salvage vehicle title to denote that the damage to the vehicle was caused exclusively by flood and that is carried forward on subsequent title issuance.(9) Insurance company--As defined by Transportation Code, §501.091(5).(10) Manufacturer's certificate of origin--A form prescribed by the department showing the original transfer of a new motor vehicle from the manufacturer to the original purchaser, whether importer, distributor, dealer, or owner, and when presented with an application for title, showing, on appropriate forms prescribed by the department, each subsequent transfer between distributor and dealer, dealer and dealer, and dealer and owner.(11) Metal recycler--A person as defined by Transportation Code §501.091(7).(12) Motor vehicle--A vehicle described by Transportation Code, §501.002(17).(13) Nonrepairable motor vehicle--A motor vehicle as defined by Transportation Code, §501.091(9).(14) Nonrepairable vehicle title--Title as defined by Transportation Code, §501.091(10).(15) Nonrepairable record of title--Title as defined by Transportation Code, §501.091(10-a).(16) Out-of-state buyer--Buyer as defined by Transportation Code, §501.091(11).(17) Out-of-state ownership document--A negotiable document issued by another jurisdiction that the department considers sufficient to prove ownership of a nonrepairable or salvage motor vehicle and to support issuance of a comparable Texas certificate of title for the motor vehicle. The term does not include a title issued by the department, including a:(A) regular certificate of title;(B) nonrepairable vehicle title;(C) salvage vehicle title;(D) salvage certificate;(E) Certificate of Authority to Demolish a Motor Vehicle; or(F) any other ownership document issued by the department.(18) Person--An individual, partnership, corporation, trust, association, or other private legal entity.(19) Rebuilt salvage title--A title evidencing ownership of a nonrepairable motor vehicle that was issued a nonrepairable vehicle title prior to September 1, 2003, or salvage motor vehicle that has been rebuilt.(20) Salvage motor vehicle--A motor vehicle, regardless of the year model:(A) that:(i) is damaged or is missing a major component part to the extent that the cost of repairs exceeds the actual cash value of the motor vehicle immediately before the damage; or(ii) comes into this state under an out-of-state ownership document that states on its face "accident damage," "flood damage," "inoperable," "rebuildable," "salvageable," or similar notation, and is not an out-of-state ownership document with a "rebuilt," "prior salvage," or similar notation, or a nonrepairable motor vehicle; and(B) does not include:(i) a motor vehicle for which an insurance company has paid a claim for repairing hail damage, or theft, unless the motor vehicle was damaged during the theft and before recovery to the extent that the cost of repair exceeds the actual cash value of the motor vehicle immediately before the damage;(ii) the cost of materials or labor for repainting the motor vehicle; or(iii) sales tax on the total cost of repairs.(21) Salvage vehicle dealer--Dealer as defined by Transportation Code, §501.091(17).(22) Salvage vehicle title--Title as defined by Transportation Code, §501.091(16).(23) Salvage record of title--Title as defined by Transportation Code, §501.091(16-a).</content><note type="source"><p>Source Note: The provisions of this §217.82 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective December 4, 2016, 41 TexReg 9335; amended to be effective November 14, 2017, 42 TexReg 6382; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scD/s217.83"><num value="217.83">§217.83</num><heading>Requirement for Nonrepairable or Salvage Vehicle Title or Nonrepairable or Salvage Record of Title</heading><content>(a) Determination of condition of vehicle.(1) Salvage motor vehicle. When a vehicle is damaged, the actual cash value of the motor vehicle immediately before the damage and the cost of repairs shall be used to determine whether the damage is sufficient to classify the motor vehicle as a salvage motor vehicle.(2) Nonrepairable motor vehicle. When a vehicle is damaged, the actual cash value of the motor vehicle immediately before the damage and the cost of repairs, or any method commonly used by the insurance industry, shall be used to determine whether the damage is sufficient to classify the motor vehicle as a nonrepairable motor vehicle.(3) The actual cash value of the motor vehicle is the market value of a motor vehicle as determined:(A) from publications commonly used by the automotive and insurance industries to establish the values of motor vehicles; or(B) if the entity determining the value is an insurance company, by any other procedure recognized by the insurance industry, including market surveys, that is applied in a uniform manner.(4) The cost of repairs, including parts and labor, shall be determined by:(A) using a manual of repair costs or other instrument that is generally recognized and used in the motor vehicle industry to determine those costs; or(B) an estimate of the actual cost of the repair parts and the estimated labor costs computed by using hourly rate and time allocations that are reasonable and commonly assessed in the repair industry in the community in which the repairs are performed.(5) The cost of repairs does not include:(A) the cost of:(i) repairs related to gradual damage to a motor vehicle;(ii) repairs related to hail damage; or(iii) materials and labor for repainting or when the damage is solely to the exterior paint of the motor vehicle; or(B) sales tax on the total cost of repairs.(b) Who must apply.(1) An insurance company licensed to do business in this state that acquires ownership or possession of a nonrepairable or salvage motor vehicle that is covered by a title issued by this state or a manufacturer's certificate of origin shall obtain a nonrepairable or salvage vehicle title or nonrepairable or salvage record of title, as provided by §217.84 of this title (relating to Application for Nonrepairable or Salvage Vehicle Title or Nonrepairable or Salvage Record of Title), before selling or otherwise transferring the nonrepairable or salvage motor vehicle, except as provided by subsection (c) of this section.(2) A salvage vehicle dealer shall obtain a Nonrepairable or Salvage Vehicle Title or Nonrepairable or Salvage Record of Title, or comparable out-of-state ownership document, before selling or otherwise transferring the motor vehicle, except as provided by §217.88(b) of this title (relating to Sale, Transfer, or Release of Ownership of a Nonrepairable or Salvage Motor Vehicle).(3) A person, other than an insurance company or salvage vehicle dealer, who acquires ownership of a nonrepairable or salvage motor vehicle that has not been issued a nonrepairable vehicle title, a salvage vehicle title, or a comparable out-of-state ownership document, shall obtain a nonrepairable or salvage vehicle title or nonrepairable or salvage record of title, as provided by §217.84, before selling or otherwise transferring the motor vehicle, unless the motor vehicle will be dismantled, scrapped, or destroyed.(c) Owner-retained vehicles.(1) When an insurance company pays a claim on a nonrepairable or salvage motor vehicle and does not acquire ownership of the motor vehicle, the company shall submit through webDEALER to the department before the 31st day after the date of the payment of the claim, on a form prescribed by the department, a report stating that:(A) the insurance company has paid a claim on the nonrepairable or salvage motor vehicle; and(B) the insurance company has not acquired ownership of the nonrepairable or salvage motor vehicle.(2) Upon receipt of the report described in paragraph (2) of this subsection, the department will place an appropriate notation on the motor vehicle record to prevent registration and transfer of ownership prior to the issuance of a salvage or nonrepairable vehicle title or salvage or nonrepairable record of title.(3) The owner who retained the nonrepairable or salvage motor vehicle to which this subsection applies shall obtain a nonrepairable or salvage vehicle title or nonrepairable or salvage record of title, as provided by §217.84, before selling or otherwise transferring the nonrepairable or salvage motor vehicle.(4) The owner of an owner retained nonrepairable or salvage motor vehicle may not operate or permit operation of the motor vehicle on a public highway, until the motor vehicle is rebuilt, titled as a rebuilt salvage motor vehicle or rebuilt nonrepairable motor vehicle, if applicable, and is registered in accordance with Subchapter B of this chapter.(d) Self-insured vehicles. The owner of a nonrepairable or salvage motor vehicle that is self-insured and that has been removed from normal operation by the owner shall apply to the department for a nonrepairable or salvage vehicle title or nonrepairable or salvage record of title, as provided by §217.84, before the 31st day after the damage occurred, and before selling or otherwise transferring ownership of the nonrepairable or salvage motor vehicle.(e) Casual sales. A salvage vehicle dealer, salvage pool operator, or insurance company that acquires a nonrepairable or salvage motor vehicle shall apply to the department for a nonrepairable or salvage vehicle title or nonrepairable or salvage record of title, in accordance with §217.84, prior to offering the motor vehicle for sale in a casual sale.(f) Export-only vehicles. A salvage vehicle dealer, including a salvage pool operator acting as agent for an insurance company, or governmental entity that acquires a nonrepairable or salvage motor vehicle and offers it for sale to a non-United States resident shall apply to the department for a nonrepairable or salvage vehicle title, as provided by §217.84, before selling or otherwise transferring the nonrepairable or salvage motor vehicle and before delivery of the nonrepairable or salvage motor vehicle to the buyer. A salvage vehicle dealer or governmental entity shall maintain records of all export-only nonrepairable or salvage motor vehicle sales as provided by §217.88(g).(g) Voluntary application. A person who owns or acquires a motor vehicle that is not a nonrepairable or salvage motor vehicle may voluntarily, and on proper application, as provided by §217.84, apply for a nonrepairable or salvage vehicle title or nonrepairable or salvage record of title.</content><note type="source"><p>Source Note: The provisions of this §217.83 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective January 1, 2025, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scD/s217.84"><num value="217.84">§217.84</num><heading>Application for Nonrepairable or Salvage Vehicle Title or Nonrepairable or Salvage Record of Title</heading><content>(a) Place of application. The owner of a nonrepairable or salvage motor vehicle who is required to obtain or voluntarily chooses to obtain a nonrepairable or salvage vehicle title, as provided by §217.83 of this title (relating to Requirement for Nonrepairable or Salvage Vehicle Title or Nonrepairable or Salvage Record of Title), shall apply for a nonrepairable or salvage vehicle title or nonrepairable or salvage record of title by submitting an application, the required accompanying documentation, and the statutory fee to the department.(b) Information on application. An applicant for a nonrepairable or salvage vehicle title or nonrepairable or salvage record of title shall submit an application on a form prescribed by the department. A completed form, in addition to any other information required by the department, must include:(1) the name and current address of the owner;(2) a description of the motor vehicle, including the model year, make, body style, and vehicle identification number;(3) a statement describing whether the motor vehicle is a nonrepairable or salvage motor vehicle;(4) whether the damage was caused exclusively by flood;(5) a description of the damage to the motor vehicle;(6) the odometer reading and brand, or the word "exempt" if the motor vehicle is exempt from federal and state odometer disclosure requirements, if the motor vehicle is a salvage motor vehicle;(7) the name and mailing address of any lienholder and the date of lien, as provided by subsection (e) of this section; and(8) the signature of the applicant or the applicant's authorized agent and the date the title application was signed.(c) Accompanying documentation. A nonrepairable or salvage vehicle title or nonrepairable or salvage record of title application must be supported, at a minimum, by:(1) evidence of ownership, as described by subsection (d)(1) or (3) of this section, if the applicant is an insurance company that is unable to locate one or more of the owners;(2) an odometer disclosure statement properly executed by the seller of the motor vehicle and acknowledged by the purchaser, if the motor vehicle is less than 10 model years old and the motor vehicle is a salvage motor vehicle; and(3) a release of any liens.(d) Evidence of nonrepairable or salvage motor vehicle ownership.(1) Evidence of nonrepairable or salvage motor vehicle ownership properly assigned to the applicant must accompany the application for a nonrepairable or salvage vehicle title or nonrepairable or salvage record of title, except as provided by paragraph (2) of this subsection. Evidence must include documentation sufficient to show ownership to the nonrepairable or salvage motor vehicle, such as:(A) a Texas Title;(B) a certified copy of a Texas Title;(C) a manufacturer's certificate of origin;(D) a Texas Salvage Certificate;(E) a nonrepairable vehicle title or record of title;(F) a salvage vehicle title or record of title;(G) a comparable ownership document issued by another jurisdiction, except that if the applicant is an insurance company, evidence must be provided indicating that the insurance company is:(i) licensed to do business in Texas; or(ii) not licensed to do business in Texas, but has paid a loss claim for the motor vehicle in this state; or(H) a photocopy of the inventory receipt or a title and registration verification evidencing surrender to the department of the negotiable evidence of ownership for a motor vehicle as provided by §217.86 of this title (relating to Dismantling, Scrapping, or Destruction of Motor Vehicles), and if the evidence of ownership surrendered was from another jurisdiction, a photocopy of the front and back of the surrendered evidence of ownership.(2) An insurance company that acquires ownership or possession of a nonrepairable or salvage motor vehicle through payment of a claim may apply for a nonrepairable or salvage vehicle title to be issued in the insurance company's name without obtaining an ownership document or if it received an ownership document without the proper assignment of the owner if the company is unable to obtain a title from the owner, in accordance with paragraph (1) of this subsection, and the application is not made earlier than the 30th day after the date of payment of the claim. The application must also include:(A) a statement that the insurance company has provided at least two written notices to the owner and any lienholder attempting to obtain the title or proper assignment of title for the motor vehicle;(B) a statement that the insurance company paid a loss claim for the vehicle that was accepted; and(C) any unassigned or improperly assigned title in the insurance company's possession.(3) An insurance company that acquires, through payment of a claim, ownership or possession of a salvage motor vehicle or nonrepairable motor vehicle covered by an out-of-state ownership document may obtain a salvage or nonrepairable vehicle title or salvage or nonrepairable record of title in accordance with paragraph (1) or (2) of this subsection if:(A) the motor vehicle was damaged, stolen, or recovered in this state; or(B) the motor vehicle owner from whom the company acquired ownership resides in this state.(4) A salvage pool operator may apply for title consistent with Transportation Code, §501.0935.(5) Proof of notice under this subsection consists of:(A) the validated receipts for registered or certified mail and return receipt or an electronic certified mail receipt, including signature receipt; and(B) any unopened certified letters returned by the post office as unclaimed, undeliverable, or with no forwarding address.(e) Recordation of lien on nonrepairable and salvage vehicle titles. If the motor vehicle is a salvage motor vehicle, a new lien or a currently recorded lien may be recorded on the salvage vehicle title. If the motor vehicle is a nonrepairable motor vehicle, only a currently recorded lien may be recorded on the nonrepairable vehicle title.(f) Issuance. Upon receipt of a completed nonrepairable or salvage vehicle title application, accompanied by the statutory application fee and the required documentation, the department will, before the sixth business day after the date of receipt, issue a nonrepairable or salvage vehicle title or nonrepairable or salvage record of title, as appropriate.(1) If the condition of salvage is caused exclusively by flood, a "Flood Damage" notation will be reflected on the face of the document and will be carried forward upon subsequent title issuance.(2) If a lien is recorded on a nonrepairable or salvage vehicle title, the vehicle title will be mailed to the lienholder. For proof of ownership purposes, the owner will be mailed a receipt or printout of the newly established motor vehicle record, indicating a lien has been recorded.(3) A nonrepairable vehicle title will state on its face that the motor vehicle may:(A) not be repaired, rebuilt, or reconstructed;(B) not be issued a regular title or registered in this state;(C) not be operated on a public highway; and(D) may only be used as a source for used parts or scrap metal.</content><note type="source"><p>Source Note: The provisions of this §217.84 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective December 4, 2016, 41 TexReg 9335; amended to be effective November 14, 2017, 42 TexReg 6382; amended to be effective March 6, 2019, 44 TexReg 1161; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scD/s217.85"><num value="217.85">§217.85</num><heading>Replacement of Nonrepairable or Salvage Motor Vehicle Ownership Documents</heading><content>(a) Location. Applications for certified copies of ownership documents for nonrepairable or salvage motor vehicles will only be processed at the department's Austin headquarters office.(b) Notation. The certified copy will contain the words "Certified Copy" and the date issued, and the motor vehicle record will be noted accordingly until ownership of the nonrepairable or salvage motor vehicle is transferred. Then the notation will be eliminated from the new title and from the motor vehicle record.(c) Replacement of nonrepairable or salvage vehicle titles. If a nonrepairable or salvage vehicle title is lost or destroyed, the department will issue a certified copy of the ownership document type originally issued, except as provided by subsection (d)(2) of this section, to the motor vehicle owner, lienholder, or verifiable agent on submission of verifiable proof and payment of the appropriate fee as provided in §217.7 of this title (relating to Replacement of Title).(d) Replacement of nonrepairable or salvage ownership documents issued prior to September 1, 2003.(1) If a salvage certificate of title issued by this state prior to September 1, 2003, is lost or destroyed, the department will issue a certified copy of a salvage vehicle title, to the motor vehicle owner, lienholder, or verifiable agent on proper application, submission of verifiable proof, and payment of the appropriate fee as provided in §217.7.(2) If a nonrepairable certificate of title or salvage certificate issued by this state prior to September 1, 2003, is lost or destroyed, the department will issue a salvage vehicle title to the motor vehicle owner, lienholder, or verifiable agent on proper application, submission of verifiable proof, and payment of the appropriate fee as provided in §217.7.</content><note type="source"><p>Source Note: The provisions of this §217.85 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scD/s217.86"><num value="217.86">§217.86</num><heading>Dismantling, Scrapping, or Destruction of Motor Vehicles</heading><content>(a) A person who acquires ownership of a nonrepairable or salvage motor vehicle for the purpose of dismantling, scrapping, or destruction shall, not later than the 30th day after the motor vehicle was acquired:(1) submit to the department a report, on a form prescribed by the department:(A) stating that the motor vehicle will be dismantled, scrapped, or destroyed; and(B) certifying that all unexpired license plates and registration validation stickers have been removed from the motor vehicle, in accordance with Occupations Code, §2302.252; and(2) surrender to the department the properly assigned ownership document.(b) The person shall:(1) maintain records of each motor vehicle that will be dismantled, scrapped, or destroyed, as provided by Chapter 221, Subchapter D of this title (relating to Records); and(2) store all unexpired license plates and registration validation stickers removed from those vehicles in a secure location.(c) The department will issue the person a receipt with surrender of the report and ownership documents.(d) For purposes of dismantling, scrapping, or destruction, a nonrepairable or salvage motor vehicle may only be transferred to a metal recycler upon issuance of a receipt as provided in subsection (c) of this section. The transfer shall be documented on a form prescribed by the department and be included with the transfer of the vehicle along with the receipt as provided in subsection (c) of this section.(e) License plates and registration validation stickers removed from vehicles reported under subsection (a)(1) of this section may be destroyed upon receipt of the acknowledged report from the department.(f) The department will place an appropriate notation on motor vehicle records for which ownership documents have been surrendered to the department.(g) Not later than 60 days after the motor vehicle is delivered to the metal recycler for purposes of the vehicle being dismantled, scrapped, or destroyed, the person shall report to the department and provide evidence that the motor vehicle has been dismantled, scrapped, or destroyed.</content><note type="source"><p>Source Note: The provisions of this §217.86 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective December 4, 2016, 41 TexReg 9335; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scD/s217.87"><num value="217.87">§217.87</num><heading>Requirements for Certain Vehicles Acquired by a Used Automotive Parts Recycler Without a Title</heading><content>(a) Reporting requirements. (1) A used automotive parts recycler (recycler), as defined in Occupations Code §2309.002, that purchases a motor vehicle without a title, in accordance with Transportation Code, §501.098(a), shall determine if the motor vehicle is reported stolen and if the motor vehicle is the subject of any recorded security interests or liens by completing and submitting the form described in subsection (b) of this section to the department within the time provided under Transportation Code, §501.098(c) and §501.098(g). (2) A recycler must separately report the information specified under Transportation Code, §501.098(c) to the National Motor Vehicle Title Information System.(b) Information on form. A recycler shall submit a form containing the following information:(1) name, mailing address, email address and phone number of the recycler;(2) the vehicle identification number for the motor vehicle;(3) the date the motor vehicle was obtained;(4) the name of the individual or entity from whom the motor vehicle was obtained;(5) A statement that the vehicle:(A) is at least 13 years old,(B) is purchased solely for parts, dismantling, or scrap, and(C) has not been registered for at least seven years; and (6) the signature of the recycler or the recycler's authorized agent.(c) Submittal of form. The form shall be submitted to the department in person at one of the department's regional offices or electronically following the procedures set out on the department's website. (d) Department response. (1) Upon receipt of a completed and signed form under subsection (b) of this section, the department shall:(A) notify the recycler, in person or via the email address specified on the form, within the time specified under Transportation Code, §501.098(d), whether the motor vehicle has been reported stolen; and (B) notify the recycler, in person or via the email address specified on the form, whether the motor vehicle is the subject of a recorded security interest or lien in the department's Registration and Title System. If the vehicle has a recorded lien or security interest, the recycler may obtain the contact information of the holder of that recorded lien or security interest from the department by submitting a request in accordance with §217.123 of this title (relating to Access to Motor Vehicle Records).(2) If the motor vehicle has a motor vehicle record in the department's Registration and Title System, the department shall:(A) add a notation to the motor vehicle record that the motor vehicle has been dismantled, scrapped, or destroyed; and (B) cancel the title issued by the department for the motor vehicle. (e) Vehicles retrieved from recycler. The department shall reinstate the title and remove the notation in the department's records specified under subsection (d)(2) of this section and Transportation Code, §501.098(f)(1) at the request of a lienholder or last registered owner of a vehicle that is retrieved from a recycler under Transportation Code, §501.098(j). The request must include:(1) a receipt from the recycler transferring the vehicle to the lienholder or last registered owner that includes the vehicle identification number, year and make; and(2) valid proof of identification as provided in §217.7 of this title (relating to Replacement of Title). (f) Records. (1) A recycler shall collect and record the information specified in Transportation Code, §501.098(b)(1)-(9) on a form available on the department's website and maintain that form with the identification documents under Transportation Code, §501.098(b)(10) and the department's response under subsection (d) of this section. (2) The records may be maintained in an electronic format.</content><note type="source"><p>Source Note: The provisions of this §217.87 adopted to be effective January 1, 2026, 50 TexReg 8626.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scD/s217.88"><num value="217.88">§217.88</num><heading>Sale, Transfer, or Release of Ownership of a Nonrepairable or Salvage Motor Vehicle</heading><content>(a) Sale, transfer or release with a nonrepairable or salvage motor vehicle title or nonrepairable or salvage record of title. The ownership of a motor vehicle for which a nonrepairable vehicle title, nonrepairable record of title, salvage vehicle title, salvage record of title, or a comparable out-of-state ownership document has been issued, including a motor vehicle that has a "Flood Damage" notation on the title, may be sold, transferred, or released to anyone.(b) Sale, transfer or release without a nonrepairable or salvage motor vehicle title or nonrepairable or salvage record of title shall be consistent with Transportation Code, §501.095(a).(c) Sale of self-insured nonrepairable or salvage motor vehicle. The owner of a self-insured nonrepairable or salvage motor vehicle that has been damaged and removed from normal operation shall obtain a nonrepairable or salvage vehicle title or nonrepairable or salvage record of title before selling or otherwise transferring ownership of the motor vehicle.(d) Casual sales. A salvage vehicle dealer, salvage pool operator, or insurance company may sell up to five nonrepairable or salvage motor vehicles, for which nonrepairable or salvage vehicle titles or nonrepairable or salvage record of title have been issued, to a person, not to include those specified in Transportation Code, §501.091(2)(A-C), in a casual sale during a calendar year.(e) Records of casual sales.(1) A salvage vehicle dealer, salvage pool operator, or insurance company must maintain records of each casual sale made during the previous 36 months, in accordance with Transportation Code, §501.108, that at a minimum contain:(A) the date of sale;(B) the sales price;(C) the name and address of the purchaser;(D) a legible photocopy of a form of current photo identification as specified in §217.7(b) of this title (Relating to Replacement of Title);(E) the form of identification provided, the identification document number, and the name of the jurisdiction that issued the identification document;(F) the description of the motor vehicle, including the vehicle identification number, model year, make, body style, and model;(G) a photocopy of the front and back of the properly assigned ownership document provided to the purchaser; and(H) the purchaser's certification, on a form provided by the department, that the purchase of motor vehicles in a casual sale is not intended to circumvent the provisions of Transportation Code, Chapter 501 (relating to Certificates of Title) and Occupations Code, Chapter 2302 (relating to Salvage Vehicle Dealers).(2) Records may be maintained on a form provided by the department or in an electronic format.(3) Records must be maintained on the business premises of the seller, and shall be made available for inspection upon request.(f) Export-only sales.(1) In accordance with Transportation Code, §501.099, only a licensed salvage vehicle dealer, including a salvage pool operator acting as agent for an insurance company, or governmental entity may sell a nonrepairable or salvage motor vehicle to a person who resides outside the United States, and only:(A) when a nonrepairable or salvage vehicle title has been issued for the motor vehicle prior to offering it for export-only sale; and(B) prior to the sale, the seller obtains a legible photocopy of a government-issued photo identification of the purchaser that can be verified by law enforcement, issued by the jurisdiction in which the purchaser resides that may consist of:(i) a passport;(ii) a driver's license;(iii) consular identity document;(iv) national identification certificate or identity document; or(v) other government-issued identification that includes the name of the jurisdiction issuing the document, the purchaser's full name, foreign address, date of birth, photograph, and signature.(2) The seller must obtain the purchaser's certification, on a form prescribed by the department, that the purchaser will remove the motor vehicle from the United States and will not return the motor vehicle to any state of the United States as a motor vehicle titled or registered under its manufacturer's vehicle identification number.(3) The seller must provide the buyer with a properly assigned nonrepairable or salvage vehicle title.(4) The seller must stamp FOR EXPORT ONLY and the seller's salvage vehicle dealer license number or the governmental entity's name, whichever applies, on the face of the title and on any unused reassignments on the back of the title.(g) Records of export-only sales.(1) A salvage vehicle dealer or governmental entity that sells a nonrepairable or salvage motor vehicle for export-only must maintain records of all export-only sales until the third anniversary of the date of the sale.(2) Records of each sale must include:(A) a legible copy of the stamped and properly assigned nonrepairable or salvage vehicle title;(B) the buyer's certified statement required by subsection (f)(2) of this section;(C) a legible photocopy of a form of photo identification as specified in subsection (f)(1)(B) of this section;(D) a legible copy of any other documents related to the sale of the motor vehicle; and(E) a listing of each motor vehicle sold for export-only that states the:(i) date of sale;(ii) name of the purchaser;(iii) purchaser's identification document number;(iv) name of the country that issued the identification document;(v) the form of identification provided by the purchaser; and(vi) vehicle identification number of the motor vehicle.(3) The listing required by paragraph (2)(E) of this subsection must be maintained either on a form provided by the department or in an electronic format approved by the department.(4) The salvage vehicle dealer or governmental entity shall submit the listing prescribed by paragraph (2)(E) of this subsection to the department within 30 days from the date of sale.(5) Upon receipt of the listing prescribed by paragraph (2)(E) of this subsection, the department will place an appropriate notation on the motor vehicle record to identify it as a motor vehicle sold for export-only that may not be operated, retitled, or registered in this state.</content><note type="source"><p>Source Note: The provisions of this §217.88 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective August 8, 2016, 41 TexReg 5766; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scD/s217.89"><num value="217.89">§217.89</num><heading>Rebuilt Salvage Motor Vehicles</heading><content>(a) Filing for title. When a salvage motor vehicle or a nonrepairable motor vehicle for which a nonrepairable vehicle title was issued prior to September 1, 2003, has been rebuilt, the owner shall file a title application, as described in §217.4 of this title (relating to Initial Application for Title), for a rebuilt salvage title.(b) Place of application. An application for a rebuilt salvage title shall be filed with the county tax assessor-collector in the county in which the applicant resides, in the county in which the motor vehicle was purchased or is encumbered, or to any county tax assessor-collector who is willing to accept the application.(c) Fee for rebuilt salvage title. In addition to the statutory fee for a title application and any other applicable fees, a $65 rebuilt salvage fee must accompany the application.(d) Accompanying documentation. The application for a title for a rebuilt nonrepairable or salvage motor vehicle must be supported, at a minimum, by the following documents:(1) evidence of ownership, properly assigned to the applicant, as described in subsection (e) of this section;(2) a rebuilt statement, on a form prescribed by the department that includes:(A) a description of the motor vehicle, which includes the motor vehicle's model year, make, model, identification number, and body style;(B) an explanation of the repairs or alterations made to the motor vehicle;(C) a description of each major component part used to repair the motor vehicle and showing the identification number required by federal law to be affixed to or inscribed on the part;(D) the name of the owner and the name and address of the rebuilder;(E) a statement by the owner that the owner is the legal and rightful owner of the vehicle, the vehicle is rebuilt, repaired, reconstructed, or assembled and that the vehicle identification number disclosed on the rebuilt affidavit is the same as the vehicle identification number affixed to the vehicle;(F) the signature of the owner, or the owner's authorized agent; and(G) a statement by the rebuilder that the vehicle has been rebuilt, repaired, or reconstructed by the rebuilder and that all component parts used were obtained in a legal and lawful manner, signed by the rebuilder or the rebuilder's authorized agent or employee;(3) an odometer disclosure statement properly executed by the seller of the motor vehicle and acknowledged by the purchaser, if applicable;(4) proof of financial responsibility in the title applicant's name, as required by Transportation Code §502.046, unless otherwise exempted by law, if the motor vehicle will be registered at the time of application;(5) unless otherwise exempted by law, a vehicle identification number inspection under Transportation Code, §501.0321 if the motor vehicle was last titled or registered in another country, or a document described under 217.4(d)(4) of this title (relating to Initial Application for Title) if the vehicle was last titled or registered in another state; and(6) a release of any liens, unless there is no transfer of ownership and the same lienholder is being recorded as is recorded on the surrendered evidence of ownership.(e) Evidence of ownership of a rebuilt salvage motor vehicle:(1) may include:(A) a Texas Salvage Vehicle Title or Record of Title;(B) a Texas Nonrepairable Certificate of Title issued prior to September 1, 2003;(C) a Texas Salvage Certificate; or(D) a comparable salvage certificate or salvage certificate of title issued by another jurisdiction, except that this ownership document will not be accepted if it indicates that the motor vehicle may not be rebuilt in the jurisdiction that issued the ownership document; but(2) does not include:(A) a Texas nonrepairable vehicle title issued on or after September 1, 2003;(B) an out-of-state ownership document that indicates that the motor vehicle is nonrepairable, junked, for parts or dismantling only, or the motor vehicle may not be rebuilt in the jurisdiction that issued the ownership document; or(C) a certificate of authority to dispose of a motor vehicle issued in accordance with Transportation Code, Chapter 683.(f) Rebuilt salvage title issuance. Upon receiving a completed title application for a rebuilt salvage motor vehicle, along with the applicable fees and required documentation, the transaction will be processed and a rebuilt salvage title will be issued. The title will include a "Rebuilt Salvage" notation and a description or disclosure of the motor vehicle's former condition on its face.(g) Issuance of rebuilt salvage title to a motor vehicle from another jurisdiction. On proper application, as prescribed by §217.4, by the owner of a motor vehicle that is brought into this state from another jurisdiction and for which a certificate of title issued by the other jurisdiction contains a "Rebuilt," "Salvage," or analogous title remark, the department will issue the applicant a title or other appropriate document for the motor vehicle. A title or other appropriate document issued under this subsection will show:(1) the date of issuance;(2) the name and address of the owner;(3) any registration number assigned to the motor vehicle;(4) a description of the motor vehicle as determined by the department; and(5) any title remark the department considers necessary or appropriate.</content><note type="source"><p>Source Note: The provisions of this §217.89 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective March 1, 2022, 47 TexReg 968; amended to be effective January 1, 2025, 49 TexReg 8980.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c217/scE"><num value="E">SUBCHAPTER E</num><heading>TITLE LIENS AND CLAIMS</heading><section identifier="/us/state/tx/tac/t43/p10/c217/scE/s217.101"><num value="217.101">§217.101</num><heading>Landowner's Lien</heading><content>(a) Filing of lien. Pursuant to Property Code, Chapter 70, Subchapter F, a landowner may file a lien against the motor vehicle of a person who damages the landowner's fence with the motor vehicle upon issuance of a court ordered judgment.(b) Perfection. The landowner's lien must be perfected in accordance with Transportation Code, Chapter 501, Subchapter F. The applicant must file an application for certificate of title through a county tax assessor-collector on a form prescribed by the department. The application must be accompanied by an original or certified copy of the court order and the statutory fee for a title application.(c) Release of Lien. Upon receipt of the final payment, the landowner must provide the vehicle owner with a discharge of lien in accordance with §217.106 of this title (relating to Discharge of Liens).</content><note type="source"><p>Source Note: The provisions of this §217.101 adopted to be effective March 12, 2015, 40 TexReg 1096.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scE/s217.102"><num value="217.102">§217.102</num><heading>Child Support Liens</heading><content>Pursuant to Family Code, Chapter 157, a child support lien arises by operation of law through court ordered payment of past due child support.(1) A child support lien must be perfected in accordance with Transportation Code, Chapter 501.(2) The person filing the lien must provide the department with the obligor's evidence of motor vehicle ownership, as described in §217.5 of this title (relating to Evidence of Motor Vehicle Ownership), and an application for a certificate of title for the same vehicle, and(A) a certified copy of the child support lien notice containing the information required by Family Code, §157.313 which has been filed with the county clerk's office; or(B) an abstract of judgment for past due child support.(3) The lien is perfected when the department has issued a subsequent title disclosing that the vehicle is subject to a child support lien.</content><note type="source"><p>Source Note: The provisions of this §217.102 adopted to be effective March 12, 2015, 40 TexReg 1096.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scE/s217.103"><num value="217.103">§217.103</num><heading>Restitution Liens</heading><content>(a) Purpose. Pursuant to the Code of Criminal Procedure, Article 42.22, the victim or an attorney for the state may file a lien on any interest in a motor vehicle of a person convicted of a criminal offense to secure payment of restitution or fines or costs. This section establishes the procedures to perfect the filing and the removal of the lien on any interest of the defendant in a motor vehicle whether then owned or after-acquired.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Department--The Texas Department of Motor Vehicles.(2) Restitution lien--A lien placed against a defendant's motor vehicle in order to recoup a judgment or fines or costs.(3) State--The State of Texas and all its political subdivisions.(4) Victim--A close relative of a deceased victim, guardian of a victim, or victim, as those terms are defined by the Code of Criminal Procedure, Article 56.01.(c) Persons who may file a restitution lien. The following persons may file a restitution lien:(1) a victim of a criminal offense to secure the amount of restitution to which the victim is entitled under the order of a court in a criminal case; and(2) an attorney of the state to secure the amount of fines or costs entered against a defendant in a judgment in a felony criminal case.(d) Perfection of a restitution lien. A restitution lien against any interest in a motor vehicle must be perfected in accordance with Transportation Code, Chapter 501, and in the name of the court which established the restitution lien, in care of the court clerk. The victim or the attorney representing the state must file an application for certificate of title with a county tax-assessor collector to perfect the restitution lien. The application must be on a form prescribed by the department as described in §217.4 of this title (relating to Initial Application for Title), and shall be supported by, at a minimum, the following documents:(1) evidence of motor vehicle ownership, as described in §217.5 of this title (relating to Evidence of Motor Vehicle Ownership), which is properly assigned to or issued in the name of the defendant;(2) an original or certified copy of the court order or judgment establishing the restitution lien and requiring the defendant to pay restitution, fines, or costs; and(3) an affidavit to perfect a restitution lien which must include, at a minimum:(A) the name and birth date of the defendant whose interest in the motor vehicle is subject to the lien;(B) the residence or principal place of business of the person named in the lien, if known;(C) the criminal proceeding giving rise to the lien, including the name of the court, the name of the case, and the court's file number for the case;(D) the name and address of the attorney representing the state and the name and address of the person entitled to restitution;(E) a statement that the notice is being filed pursuant to Code of Criminal Procedure, Article 42.22;(F) the amount of restitution, fines, and costs the defendant has been ordered to pay by the court;(G) a statement that the amount of restitution owed at any one time may be less than the original balance and that the outstanding balance is reflected in the records of the clerk of the court hearing the criminal proceeding giving rise to the lien;(H) the vehicle description (year, make, and vehicle identification number) of the motor vehicle for which the restitution lien is to be perfected; and(I) the signature of the attorney representing the state or a magistrate.(e) Fees. The applicant will be required to pay a $5 restitution lien filing fee, in addition to a title application fee in accordance with Transportation Code, §501.138, and any other applicable fees required by Transportation Code, Chapters 501, 502, and 520.(f) Recording a restitution lien. Upon receiving a completed application for certificate of title, the required supporting documents and any applicable fees, the department or its designated agent will process and issue a certificate of title recording the restitution lien. The original certificate of title shall be mailed to the first lienholder, in accordance with Transportation Code, §501.027.(g) Release of perfected restitution liens. The clerk of the court recorded as the lienholder will receive payments from the defendant and maintain a record of the outstanding balance of restitution, fines, or costs owed by the defendant. Upon satisfaction of the lien, the clerk of the court shall execute the release of lien as described in §217.106 of this title (relating to Discharge of Lien). The release of lien must be provided to the owner or owner's designee. A photocopy of the release of lien shall be forwarded to the department for filing.</content><note type="source"><p>Source Note: The provisions of this §217.103 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective December 4, 2016, 41 TexReg 9335.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scE/s217.104"><num value="217.104">§217.104</num><heading>Electronic Lien Title Program</heading><content>(a) The Electronic Lien Title (ELT) Program provides an electronic method for the department to exchange lien and title information with lienholders. Lienholder participation in this program is voluntary.(b) To participate in the ELT Program, a lienholder must enter into a contract with the department. The contract must contain all terms and conditions necessary to implement the ELT Program, as agreed on by the department and the participating lienholder.(c) An application for title recording an electronic lien must be filed in the usual manner with a county tax assessor-collector.(1) The department will notify the lienholder electronically of the date the lien was recorded. The notification will include a request for verification of the lien and vehicle information.(2) The participating lienholder shall verify the lien and vehicle information in the message and electronically notify the department whether the information is correct.(3) The lienholder shall send an error message electronically to the department if any information in the notification is incorrect. The department will then verify the lien and vehicle information submitted by the applicant in the title application. Any error will be corrected, and if necessary, the department will send a new notification to the lienholder with corrected information. If it is found that the title applicant submitted incorrect lienholder or vehicle information, the transaction will be rejected and returned to the county tax assessor-collector.(d) When a lien is satisfied, the lienholder shall electronically notify the department within 10 days. The ELT remark and the lien will be removed from the record and a title will be printed in the name of the owner of record and mailed to the address specified by the lienholder.(e) When requested by a lienholder, the department will remove the ELT remark from a vehicle record and provide the lienholder with a paper title.(f) When requested by a lienholder, the department will reassign a lien electronically to a new lienholder if the new lienholder meets all requirements for participation in the ELT Program.(g) The department will not issue a certified copy of a title with an ELT remark.</content><note type="source"><p>Source Note: The provisions of this §217.104 adopted to be effective March 12, 2015, 40 TexReg 1096.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scE/s217.105"><num value="217.105">§217.105</num><heading>Insurance Company Claims</heading><content>(a) Place of application. A title application for an original title must be filed with the county tax assessor-collector along with any required documentation and the required fee.(b) Information to be included on application. An insurance company must file an application on a form prescribed by the department.(c) Evidence of motor vehicle ownership.(1) Evidence of motor vehicle ownership properly assigned to the insurance company must accompany the application for a title, except as provided by paragraph (2) of this subsection. Evidence must include documentation sufficient to show ownership of the motor vehicle, such as:(A) a Texas Title;(B) a certified copy of a Texas Title;(C) a manufacturer's certificate of origin;(D) a comparable ownership document issued by another jurisdiction; and(E) evidence indicating that the insurance company is:(i) licensed to do business in Texas; or(ii) not licensed to do business in Texas, but has paid a loss claim for the motor vehicle in this state.(2) An insurance company that acquires ownership, or possession of a motor vehicle through payment of a claim may apply for a title to be issued in the insurance company's name without obtaining an ownership document or if it received an ownership document without the proper assignment of the owner on the motor vehicle ownership document if:(A) the company is unable to obtain a title in accordance with paragraph (1) of this subsection;(B) the application is not made earlier than the 30th day after the date of payment of the claim; and(C) the application includes:(i) a statement that the insurance company has provided at least two written notices to the owner and any lienholder of record, attempting to obtain the title or proper assignment of title for the motor vehicle; and(ii) a copy of the payment document indicating the insurance company has made payment of a claim involving the motor vehicle.(d) Insurance claims concerning salvage or non-repairable vehicle titles are provided for in §217.84 of this title (relating to Application for Non-repairable or Salvage Vehicle Title).</content><note type="source"><p>Source Note: The provisions of this §217.105 adopted to be effective March 12, 2015, 40 TexReg 1096.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scE/s217.106"><num value="217.106">§217.106</num><heading>Discharge of Lien</heading><content>A lienholder shall provide the owner, or the owner's designee, a discharge of the lien after receipt of the final payment within the time limits specified in Transportation Code, §501.115. The lienholder shall submit one of the following documents:(1) the title including an authorized signature in the space reserved for release of lien;(2) a release of lien form prescribed by the department, with the form filled out to include the:(A) title or document number, or a description of the motor vehicle including, but not limited to, the motor vehicle:(i) year;(ii) make;(iii) vehicle identification number; and(iv) license plate number, if the motor vehicle is subject to registration under Transportation Code, Chapter 502;(B) printed name of lienholder;(C) signature of lienholder or an authorized agent;(D) printed name of the authorized agent if the agent's signature is shown;(E) telephone number of lienholder; and(F) date signed by the lienholder;(3) signed and dated correspondence submitted on company letterhead that includes:(A) a statement that the lien has been paid;(B) a description of the vehicle as indicated in paragraph (2)(A) of this subsection;(C) a title or document number; or(D) lien information;(4) any out-of-state prescribed release of lien form, including an executed release on a lien entry form;(5) out-of-state evidence with the word "Paid" or "Lien Satisfied" stamped or written in longhand on the face, followed by the name of the lienholder, countersigned or initialed by an agent, and dated; or(6) original security agreements or copies of the original security agreements if the originals or copies are stamped "Paid" or "Lien Satisfied" with a company paid stamp or if they contain a statement in longhand that the lien has been paid followed by the company's name.</content><note type="source"><p>Source Note: The provisions of this §217.106 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c217/scF"><num value="F">SUBCHAPTER F</num><heading>MOTOR VEHICLE RECORDS</heading><section identifier="/us/state/tx/tac/t43/p10/c217/scF/s217.121"><num value="217.121">§217.121</num><heading>Purpose and Scope</heading><content>It is the policy of the Texas Department of Motor Vehicles to protect the confidentiality of motor vehicle record information.</content><note type="source"><p>Source Note: The provisions of this §217.121 adopted to be effective March 12, 2015, 40 TexReg 1096.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scF/s217.122"><num value="217.122">§217.122</num><heading>Definitions</heading><content>(a) Words and terms defined in Transportation Code, Chapter 730 have the same meaning when used in this subchapter, unless the context clearly indicates otherwise.(b) The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Department--Texas Department of Motor Vehicles.(2) Requestor--A person as defined by Transportation Code, §730.003(5), this state, or an agency of this state seeking personal information contained in motor vehicle records directly from the department.(3) Service agreement--A contractual agreement with the department that allows a requestor electronic motor vehicle records.(4) Written request--A request submitted in writing, including by mail, electronic mail, electronic media, and facsimile transmission.(5) Signature--Includes an electronic signature, as defined by Transportation Code §501.172, to the extent the department accepts such electronic signature.(6) Batch Inquiry--Access, under a service agreement, to department motor vehicle records associated with Texas license plate numbers or vehicle identification numbers, where requests are submitted electronically to the department in a prescribed batch format. The department makes a disclosure for each record in a batch.(7) MVInet Access--Electronic access, under a service agreement, to the department's motor vehicle registration and title database, with the ability to query records by a Texas license plate number, vehicle identification number, placard number, or current or previous document number. The department makes a disclosure each time a query of the system is made.(8) Bulk--A disclosure by the department under Transportation Code §730.007 of at least 250 motor vehicle records containing personal information, including any of the files defined by subsection (b)(10) - (13) of this section.(9) Bulk contract--A contractual agreement with the department for the disclosure of motor vehicle records in bulk to the requestor.(10) Master File--A bulk file containing all the department's active and inactive registration and title records.(11) Weekly Updates--A bulk file containing the department's new and renewed vehicle registration and title records from the previous week.(12) Specialty Plates File--A bulk file containing Texas specialty license plate records.(13) eTAG File--A bulk file containing records related to new or updated eTAGs, vehicle transfer notifications, and plate-to-owner records.(14) Dealer/Supplemental File--A pair of files, one containing records of registration and title transactions processed by dealers with the department during the previous week and another containing the dealers' information, that are only available as a supplement to a bulk contract that includes the Weekly Updates.</content><note type="source"><p>Source Note: The provisions of this §217.122 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective August 2, 2018, 43 TexReg 4765; amended to be effective November 2, 2022, 47 TexReg 7288; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scF/s217.123"><num value="217.123">§217.123</num><heading>Access to Motor Vehicle Records</heading><content>(a) Except as required under subsection (f) of this section, a requestor seeking personal information from department motor vehicle records shall submit a written request in a form required by the department. A completed and properly executed form must include:(1) the name and address of the requestor;(2) a description of the requested motor vehicle records, including the Texas license plate number, title or document number, or vehicle identification number of the motor vehicle about which information is requested;(3) proof of the requestor's identity, in accordance with subsections (b) or (c) of this section;(4) a statement that the requestor:(A) is the subject of the record;(B) has the written consent of the person who is the subject of the record; or(C) will strictly limit the use of the personal information in department motor vehicle records to a permitted use under Transportation Code Chapter 730, as indicated on the form;(5) a certification that the statements made on the form are true and correct; and(6) the signature of the requestor.(b) Except as required by subsection (c) of this section, a requestor must provide the requestor's current photo identification containing a unique identification number. The identification must be a:(1) driver's license, Texas Department of Public Safety identification, or state identification certificate issued by a state or territory of the United States;(2) United States or foreign passport;(3) United States military identification card;(4) United States Department of Homeland Security, United States Citizenship and Immigration Services, or United States Department of State identification document;(5) license to carry a handgun issued by the Texas Department of Public Safety under Government Code Chapter 411, Subchapter H; or(6) North Atlantic Treaty Organization identification or identification issued under a Status of Forces Agreement.(c) A requestor seeking personal information from department motor vehicle records for use by a law enforcement agency must:(1) present the requestor's current law enforcement credentials;(2) electronically submit the request in a manner that the department can verify that the requestor is acting on behalf of a law enforcement agency; or(3) provide a written statement from a higher level in the chain of command on the law enforcement agency's letterhead stating that the requestor is not authorized to provide current law enforcement credentials and identifying the intended use or the agency's incident or case number for which the personal information is needed.(d) A requestor seeking personal information from department motor vehicle records for use by a law enforcement agency may submit a verbal request to the department if the law enforcement agency has provided reasonable assurances that were accepted by the department as to the identity of the requestor within the last 12 months on a form required by the department. If a request is submitted verbally, the department may require the requestor to confirm the request in writing.(e) A requestor may receive electronic access to department motor vehicle records under the terms and conditions of a service agreement.(1) Before a requestor can enter into a service agreement, the requestor must file a completed application on a form required by the department, for review and approval by the department. An application for a service agreement must include:(A) a statement that the requestor will strictly limit the use of the personal information from department motor vehicle records to a permitted use under Transportation Code Chapter 730, as indicated on the application;(B) the name and address of the requestor;(C) proof of the requestor's identity, in accordance with subsections (b) or (c) of this section;(D) blank copies of agreements used by the requestor to release motor vehicle record information to third parties;(E) any additional material provided to third-party requestors detailing the process through which they obtain motor vehicle record information and describing their limitations as to how this information may be used;(F) the signature of the requestor or, if the requestor is an organization or entity, the signature of an officer or director of the requestor; and(G) a certification that the statements made in the application are true and correct.(2) If the department determines any of the information provided in the application is incomplete, inaccurate, or does not meet statutory requirements the department will not enter into a service agreement to release motor vehicle record information.(3) Unless the requestor is exempt from the payment of fees, a service agreement must contain an adjustable account, in which an initial deposit and minimum balance is maintained in accordance with §217.124 of this title (relating to Cost of Motor Vehicle Records). Notwithstanding §217.124 of this title, the department may modify initial deposit and minimum balance requirements depending on usage.(f) Access to bulk motor vehicle records. A requestor seeking access to department motor vehicle records in bulk must enter into a bulk contract with the department.(1) Before a requestor can enter into a bulk contract, the requestor must file a completed application on a form required by the department, for review and approval by the department. An application for a bulk contract must include:(A) a statement that the requestor will strictly limit the use of the personal information to a permitted use under Transportation Code Chapter 730, as indicated on the application;(B) the name and address of the requestor;(C) proof of the requestor's identity, in accordance with §217.123(b) or (c) of this title (relating to Access to Motor Vehicle Records);(D) blank copies of agreements used by the requestor to release motor vehicle record information to third parties;(E) any additional material provided to third party requestors detailing the process in which they obtain motor vehicle record information and describing their limitations as to how this information may be used;(F) a certification that the statements made on the form are true and correct; and(G) the signature of the requestor or, if the requestor is an organization or entity, the signature of an officer or director of the requestor.(2) If the department determines any of the information provided is incomplete, inaccurate, or does not meet statutory requirements the department will not enter into a bulk contract to release motor vehicle record information.(3) Prior to the execution of a bulk contract, a requestor must provide proof the requestor has:(A) posted a $1 million performance bond, payable to this state, conditioned upon the performance of all the requirements of Transportation Code Chapter 730 and this subchapter; and(B) insurance coverage in the amount of at least $3 million and that meets the requirements of Transportation Code §730.014(c)(3).(g) If a person is convicted of an offense under Transportation Code Chapter 730 or is found by a court to have violated a rule under this subchapter, then any contract with that person to access department motor vehicle records is terminated as of the date of the court's final determination.(h) The requirements of this section do not apply to discovery, subpoena, or other means of legal compulsion for the disclosure of personal information.(i) An authorized recipient will receive requested motor vehicle records in accordance with Title 18 U.S.C. §2721 et seq.; Transportation Code Chapter 730; Government Code §552.130; and this subchapter.</content><note type="source"><p>Source Note: The provisions of this §217.123 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective August 8, 2016, 41 TexReg 5766; amended to be effective March 4, 2018, 43 TexReg 1282; amended to be effective August 2, 2018, 43 TexReg 4765; amended to be effective November 2, 2022, 47 TexReg 7288; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scF/s217.124"><num value="217.124">§217.124</num><heading>Cost of Motor Vehicle Records</heading><content>(a) Standard costs. The department will charge fees in accordance with Government Code Chapter 552 and the cost rules promulgated by the Office of the Attorney General in 1 Texas Administrative Code Chapter 70 (relating to Cost of Copies of Public Information).(b) Law enforcement. An employee of a state, federal, or local law enforcement agency is exempt from the payment of fees for motor vehicle records in subsection (c)(1) - (4) of this section if the records are necessary to carry out lawful functions of the law enforcement agency.(c) Motor vehicle record costs:(1) Title history - $5.75;(2) Certified title history - $6.75;(3) Title and registration verification (record search) - $2.30; and(4) Certified title and registration verification (record search) - $3.30.(d) Electronic motor vehicle records and files:(1) Master File - $5,000 plus $.38 per 1,000 records;(2) Weekly Updates - deposit of $1,755 and $135 per week;(3) eTAG File - deposit of $845 and $65 per week;(4) Dealer/Supplemental File - deposit of $1,235 and $95 per week;(5) Specialty Plates File - deposit of $1,235 and $95 per week;(6) Batch Inquiry - deposit of $1,000, minimum balance of $750 and $23 per run plus $.12 per record;(7) MVInet Access - deposit of $200, minimum balance of $150 and $23 per month plus $.12 per record; and(8) Scofflaw remarks (inquiry, addition, or deletion) - deposit of $500, minimum balance of $350 and $23 per run plus $.12 per record.(e) Texas governmental entities, as defined in Government Code §2252.001, the Texas Law Enforcement Telecommunication System, toll project entities, as defined by Transportation Code §372.001, and federal governmental entities are exempt from the payment of fees, except for the fees listed in subsection (d)(1), (6), or (8) of this section.(f) Reciprocity agreements. The department may enter into a reciprocity agreement for records access with another governmental entity that may waive some or all of the fees established in this section.</content><note type="source"><p>Source Note: The provisions of this §217.124 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective March 4, 2018, 43 TexReg 1281; amended to be effective November 2, 2022, 47 TexReg 7288; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scF/s217.125"><num value="217.125">§217.125</num><heading>Additional Documentation Related to Certain Permitted Uses</heading><content>(a) The department may require a requestor to provide reasonable assurance as to the identity of the requestor and that the use of motor vehicle records is only as authorized under Transportation Code §730.012(a). Where applicable, each requestor submitting a request for motor vehicle records shall provide documentation satisfactory to the department that they are authorized to request the information on behalf of the organization, entity, or government agency authorized to receive the information.(b) Requestors seeking personal information from motor vehicle records from the department for a permitted use listed in this subsection must submit additional documentation.(1) A request under Transportation Code §730.007(a)(2)(C) must include the personal information the business is attempting to verify against the department's motor vehicle records and documentation sufficient to prove the requestor is a business actively licensed by, registered with, or subject to regulatory oversight by a government agency.(2) A request under Transportation Code §730.007(a)(2)(D) must include proof of a legal proceeding, or if no proceeding has been initiated, proof the requestor is in anticipation of litigation relating to the request which would necessitate release of the document(s) requested.(3) A request under Transportation Code §730.007(a)(2)(E) must include documentation sufficient to prove the requestor is employed by an entity in the business of conducting research related to the requested information and demonstrating the employment relationship. The department has discretion in determining whether the entity is in the business of conducting research related to the requested information and in determining whether the documentation provided is sufficient to demonstrate an employment relationship.(4) A request under Transportation Code §730.007(a)(2)(F) must include an active license number provided by the Texas Department of Insurance or an active out-of-state license number provided by the relevant regulatory authority, an active license number the insurance support organization is working under, or proof of self-insurance.(5) A request under Transportation Code §730.007(a)(2)(G) must include an active license number provided by the Texas Department of Licensing and Regulation or an active out-of-state license number provided by the relevant regulatory authority.(6) A request under Transportation Code §730.007(a)(2)(H) must include an active license number provided by the Texas Department of Public Safety or an active out-of-state license number provided by the relevant regulatory authority.(7) A request under Transportation Code §730.007(a)(2)(I) must include a copy of an active commercial driver's license.(8) A request under Transportation Code §730.007(a)(2)(J) must include documentation to relate the requested personal information with the operation of a toll transportation facility or another type of transportation project as described by Transportation Code §370.003.(9) A request under Transportation Code §730.007(a)(2)(K) must include documentation on official letterhead indicating a permitted use for personal information, as defined by the Fair Credit Reporting Act (15 U.S.C. §1681 et. Seq.).(10) A request under Transportation Code §730.007(a)(2)(L) must include an active license number of a manufacturer, dealership, or distributor issued by the department or an active out-of-state license number provided by the relevant regulatory authority.(11) A request under Transportation Code §730.007(a)(2)(M) must include an active license or registration number of a salvage vehicle dealer, an independent motor vehicle dealer, or a wholesale motor vehicle dealer issued by the department; or an active license issued by the Texas Department of Licensing and Regulation to a used automotive parts recycler; or other proof that the requestor is subject to regulatory oversight by an entity listed in Transportation Code §730.007(a)(2)(M)(iv).(c) The department may require a requestor to provide additional information to clarify the requestor's use of the personal information under Transportation Code Chapter 730, if the reasonable assurances provided with the request are not satisfactory to the department.</content><note type="source"><p>Source Note: The provisions of this §217.125 adopted to be effective August 2, 2018, 43 TexReg 4765; amended to be effective November 2, 2022, 47 TexReg 7288; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scF/s217.126"><num value="217.126">§217.126</num><heading>Limitations on Redisclosure</heading><content>(a) Authorized recipients may only redisclose personal information from department motor vehicle records to other authorized recipients and not in the identical or substantially identical format as disclosed by the department.(b) The department may request information regarding how a person to whom the authorized recipient may redisclose personal information represents to the authorized recipient that the person has a permitted use under Transportation Code §730.007.(c) Any authorized recipient redisclosing personal information from department motor vehicle records must inform the person to whom they are redisclosing of their obligations under Transportation Code Chapter 730 and this subchapter.(d) An authorized recipient who resold personal information from department motor vehicle records prior to June 18, 2021, is subject to the limitations in this section for that resale.</content><note type="source"><p>Source Note: The provisions of this §217.126 adopted to be effective August 2, 2018, 43 TexReg 4765; amended to be effective November 2, 2022, 47 TexReg 7288.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scF/s217.127"><num value="217.127">§217.127</num><heading>Records Maintained by Recipients Who Redisclose Personal Information</heading><content>(a) Authorized recipients who redisclose personal information from department motor vehicle records are required to maintain records of that transaction.(b) Records must be maintained for not less than five years and must include:(1) the name and contact information of any person to whom the authorized recipient redisclosed personal information from the department motor vehicle records, including both the individual's name and the organization or entity with which the individual is associated, when known;(2) the person's permitted use under Transportation Code §730.007 for the personal information from the department motor vehicle records, and any documentation the authorized recipient received related to the person's permitted use;(3) the quantity of motor vehicle records redisclosed to the person under each permitted use;(4) a statement specifying what data was redisclosed and in what format; and(5) documentation of any agreement between the authorized recipient and the person to whom the authorized recipient redisclosed personal information from department motor vehicle records.(c) An authorized recipient who resold personal information from department motor vehicle records prior to June 18, 2021, must maintain records of those transactions for five years.</content><note type="source"><p>Source Note: The provisions of this §217.127 adopted to be effective August 2, 2018, 43 TexReg 4765; amended to be effective November 2, 2022, 47 TexReg 7288.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scF/s217.128"><num value="217.128">§217.128</num><heading>Department Review of Recipient's Records of Redisclosure</heading><content>(a) The department may request and review records maintained under §217.127 of this title (relating to Records Maintained by Recipients Who Redisclose Personal Information).(b) The department will request records from authorized recipients in writing.(c) Failure to fully respond to the department's request may result in a cessation of information under Transportation Code §730.014(g). If the authorized recipient has not provided the requested records to the department within 30 days after the department's request, the department may terminate the contract with the authorized recipient.</content><note type="source"><p>Source Note: The provisions of this §217.128 adopted to be effective August 2, 2018, 43 TexReg 4765; amended to be effective November 2, 2022, 47 TexReg 7288.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scF/s217.129"><num value="217.129">§217.129</num><heading>Ineligibility to Receive Personal Information Contained in Motor Vehicle Records</heading><content>(a) The department may deny a request for or cease disclosing personal information contained in the department's motor vehicle records if it determines withholding the information benefits the public's interest more than releasing the information subject to Transportation Code, §730.005 and §730.006.(b) If the department determines an authorized recipient has violated a term or condition of a contract with the department to access motor vehicle records and the department terminates the contract, that authorized recipient cannot enter into a subsequent contract with the department to access motor vehicle records unless approved to do so under §217.130 of this title (relating to Approval for Persons Whose Access to Motor Vehicle Records Has Previously Been Terminated).(c) Termination of a contract with the department to access motor vehicle records caused by any member of an organization or entity shall be effective on the whole organization or entity. Subsequent organizations or entities formed by any member, officer, partner, or affiliate of an organization or entity whose contract with the department to access motor vehicle records has previously been terminated cannot enter into a subsequent contract with the department to access motor vehicle records, unless approved to do so under §217.130 of this title (relating to Approval for Persons Whose Access to Motor Vehicle Records Has Previously Been Terminated).</content><note type="source"><p>Source Note: The provisions of this §217.129 adopted to be effective August 2, 2018, 43 TexReg 4765; amended to be effective November 2, 2022, 47 TexReg 7288; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scF/s217.130"><num value="217.130">§217.130</num><heading>Approval for Persons Whose Access to Motor Vehicle Records Has Previously Been Terminated</heading><content>(a) A requestor seeking a contract with the department to access motor vehicle records who has had a previous contract to access motor vehicle records terminated by the department for reasons other than the failure to maintain minimum balance requirements in an adjustable account, but who is not subject to Transportation Code §730.016, shall submit a written request for reapproval on the form required by the department.(b) In addition to the requirements of §217.123 of this title (relating to Access to Motor Vehicle Records), the request for reapproval must contain:(1) any documents indicating remedial efforts the requestor has undertaken to prevent the unlawful disclosure of personal information from department motor vehicle records;(2) any documents indicating agreements between the requestor and any person to whom the requestor has reason to believe it will redisclose personal information from the department motor vehicle records; and(3) a statement that the requestor will notify the department before redisclosing any personal information from the department motor vehicle records for a time period prescribed by the department, including all of the information required under §217.127(b) of this title (relating to Records Maintained by Recipients Who Redisclose Personal Information).(c) Failure to comply with this section or a re-offense of a contract with the department to access motor vehicle records will result in the termination of the contract and the permanent ineligibility to receive motor vehicle records from the department under Transportation Code §730.007.</content><note type="source"><p>Source Note: The provisions of this §217.130 adopted to be effective August 2, 2018, 43 TexReg 4765; amended to be effective November 2, 2022, 47 TexReg 7288.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scF/s217.131"><num value="217.131">§217.131</num><heading>Notices Regarding Unauthorized Recipient</heading><content>(a) A requestor who has previously received personal information from the department and is not an authorized recipient must, not later than 90 days after the date the requestor becomes aware that the requestor is not an authorized recipient, delete from the requestor's records any personal information received from the department that the requestor is not permitted to receive and use under Transportation Code Chapter 730.(b) A requestor who becomes aware that the requestor is not an authorized recipient must promptly notify the department that the requestor is not an authorized recipient and provide the date they became aware.(c) If the department becomes aware that the requestor is not an authorized recipient before receiving notice from the requestor, the department will send a written notice to the requestor stating that the requestor is not an authorized recipient. If the requestor was not already aware that it is not an authorized recipient, within 90 days from the date the department sends its notice under this subsection, the requestor must delete any personal information received from the department that the requestor is not permitted to receive and use under Transportation Code Chapter 730.(d) A requestor who becomes aware that the requestor is not an authorized recipient must notify the department when all the department's personal information has been deleted.</content><note type="source"><p>Source Note: The provisions of this §217.131 adopted to be effective November 2, 2022, 47 TexReg 7288; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scF/s217.132"><num value="217.132">§217.132</num><heading>Notices Regarding Ineligibility</heading><content>(a) A person who becomes ineligible to receive personal information under Transportation Code §730.016 must notify the department of the basis of the person's ineligibility within 15 days of the court's conviction or final determination.(b) A person who becomes ineligible to receive personal information under Transportation Code §730.016 must notify the department when all of the personal information received from the department under Transportation Code Chapter 730 has been deleted from the person's records.</content><note type="source"><p>Source Note: The provisions of this §217.132 adopted to be effective November 2, 2022, 47 TexReg 7288.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scF/s217.133"><num value="217.133">§217.133</num><heading>Annual Report</heading><content>(a) An authorized recipient under a bulk contract must electronically submit an annual report, on a form prescribed by the department, on or before October 1st of each year for the 12-month period beginning September 1st of the preceding year.(b) An annual report must include information regarding any third party to which the authorized recipient redisclosed personal information from department motor vehicle records during the reporting period, including:(1) the name of the third party, including both the individual and the organization or entity with which the individual is associated, when known; and(2) the third party's permitted uses under Transportation Code §730.007 for the redisclosed motor vehicle records.(c) An annual report must include the signature of the requestor or, if the requestor is an organization or entity, the signature of an officer or director of the requestor certifying that all statements in the annual report are true and correct.(d) An authorized recipient under a bulk contract may request an extension of time to submit an annual report by sending a written request to the department no later than September 1st of the year the annual report is required to be submitted. The request for extension must include proof of an event that is beyond the control of the authorized recipient and prevents the timely submission of the annual report. The department may grant an extension for submission of the annual report to no later than December 1st of the year the annual report is required to be submitted.(e) If an authorized recipient under a bulk contract fails to timely submit the annual report or request an extension under subsection (d) of this section, the department may cease disclosing motor vehicle records until the annual report is submitted to the department. If an authorized recipient fails to submit an annual report by December 1st of the year the annual report is required to be submitted, then the department may terminate the bulk contract.(f) If a person cancels or the department terminates a bulk contract, the person must submit a final report containing all the information required under subsection (b) of this section relating to all personal information from department motor vehicle records redisclosed since the last annual report or, if the person has never submitted an annual report, since the execution of the bulk contract. The person must submit this report by the 90th day after the date of the cancellation or termination of the bulk contract.</content><note type="source"><p>Source Note: The provisions of this §217.133 adopted to be effective November 2, 2022, 47 TexReg 7288.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c217/scG"><num value="G">SUBCHAPTER G</num><heading>INSPECTIONS</heading><section identifier="/us/state/tx/tac/t43/p10/c217/scG/s217.141"><num value="217.141">§217.141</num><heading>Purpose and Scope</heading><content>This subchapter prescribes the policies and procedures necessary to protect the public by requiring inspection of assembled vehicles, accurately identify the identity of a motor vehicle, and provides department approved training programs which if successfully completed qualify a person to conduct vehicle identification number inspections.</content><note type="source"><p>Source Note: The provisions of this §217.141 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective November 14, 2017, 42 TexReg 6385; amended to be effective June 22, 2020, 45 TexReg 4058.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scG/s217.142"><num value="217.142">§217.142</num><heading>Definitions</heading><content>(a) The definitions in Transportation Code §731.001 apply to this subchapter.(b) The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Altered from the manufacturer's original design - as that term is used in §504.501(f), Transportation Code, is defined as the removal, addition, modification, or substitution, of at least one major component part, as defined in Transportation Code §501.091, except that an engine, frame, and body or cab, must be replaced if removed.(2) Applicant - a person applying for title to an assembled vehicle who:(A) is a hobbyist;(B) is the owner of an assembled vehicle that has not been previously titled as an assembled vehicle; or(C) purchased an assembled vehicle constructed and designated by the manufacturer as a replica, custom vehicle, street rod, or glider kit.(3) Equipment - items and systems, including the connection points of the items and systems, to include the frame; chassis; structural components; wheel assembly; tires; brake system, including each brake, power brake unit, and all integral items of the system; steering system, including power steering, and all integral items of the system; front seat belts if constructed with seat belt anchorages; body; drivetrain; suspension; motor; fuel supply system and all integral items of the system; exhaust system and all integral items of the system; mirrors; windshield; windshield wipers; turn signal lamps; beam indicator; head lamps, minimum of two; tail lamps; stop lamps; and rear red reflectors. This term includes the basic component parts of motor, body, and frame, as defined in §217.402 of this chapter; and some major component parts as defined in Transportation Code §501.091. The term basic component part is defined by rule to identify the parts that will be used in determining evidence of ownership. The term major component part is defined by statute for use in determining whether the vehicle is a custom vehicle or street rod.(4) Manufacturer - is a person that builds an assembled vehicle and is not a hobbyist, has the meaning as defined in Occupations Code §2301.002, and is subject to the requirements of that chapter applicable to manufacturers, including sale through a franchise dealer network.(5) Master technician - a person who holds a valid certification as a Certified Master Automobile and Light Truck Technician, or equivalent successor certification, issued by the National Institute for Automotive Service Excellence.</content><note type="source"><p>Source Note: The provisions of this §217.142 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective November 14, 2017, 42 TexReg 6385; amended to be effective June 22, 2020, 45 TexReg 4058.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scG/s217.143"><num value="217.143">§217.143</num><heading>Inspection Requirements</heading><content>(a) On initial titling of an assembled vehicle under Transportation Code Chapter 731, and Subchapter L of this title (relating to Assembled Vehicles), with the exception of an assembled motorcycle, assembled trailer, and glider kit, an applicant must provide proof, on a form prescribed by the department, of a safety inspection performed by a master technician.(b) In addition to the requirement under subsection (a) of this section, an owner applying for initial registration of a custom vehicle or street rod must provide proof, on a form prescribed by the department, of a safety inspection performed by a master technician under this section as required under Transportation Code §504.501(e).(c) The inspection must meet the minimum requirements under Transportation Code, §731.102 to evaluate the structural integrity and proper function of the equipment.(d) The inspector must certify that:(1) the vehicle and equipment are structurally stable;(2) the vehicle and equipment meet the necessary conditions to be operated safely on the roadway;(3) equipment used in the construction of the vehicle, for which a federal motor vehicle safety standard exists, complies with the applicable standard; and(4) if the vehicle is a custom vehicle or street rod, the vehicle is equipped and operational with all equipment required by statute as a condition of sale during the year the vehicle was manufactured or resembles.(e) The inspection of an assembled vehicle required under subsection (a) of this section is in addition to all other required inspections including an inspection required under Transportation Code Chapter 548.(f) The applicant must pay all fees to the master technician for the inspection of an assembled vehicle required under subsection (a) of this section, including any reinspection.(g) In addition to the fees in subsection (f) of this section, the applicant must pay all applicable fees for other required inspections as required by law, including any applicable inspection or reinspection required under Transportation Code Chapter 548.</content><note type="source"><p>Source Note: The provisions of this §217.143 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective November 14, 2017, 42 TexReg 6385; amended to be effective June 22, 2020, 45 TexReg 4058; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scG/s217.144"><num value="217.144">§217.144</num><heading>Identification Number Inspection</heading><content>(a) In addition to any other requirement specified by Transportation Code, §501.0321, a person is qualified to perform an inspection under Transportation Code, §501.0321, if that person has completed one of the following training programs:(1) Intermediate or Advanced Motor Vehicle Crime Investigator Training provided by the Motor Vehicle Crime Prevention Authority;(2) Auto Theft School (Parts 1 and 2) provided by the Texas Department of Public Safety; or(3) Auto Theft Course provided by the National Insurance Crime Bureau.(b) If a person qualified to perform an inspection under Transportation Code, §501.0321, is unable to determine a manufactured motor vehicle's original year of manufacture or original make designation, the department will not issue title and registration to the motor vehicle. A person inspecting a motor vehicle under §501.0321 who is able to identify the motor vehicle as a manufactured motor vehicle, but is unable to identify the manufactured motor vehicle's original year of manufacture or original make designation, or both, may not identify the vehicle as an assembled, homemade, or shop-made vehicle.</content><note type="source"><p>Source Note: The provisions of this §217.144 adopted to be effective November 14, 2017, 42 TexReg 6385; amended to be effective August 26, 2020, 45 TexReg 5933; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c217/scH"><num value="H">SUBCHAPTER H</num><heading>DEPUTIES</heading><section identifier="/us/state/tx/tac/t43/p10/c217/scH/s217.161"><num value="217.161">§217.161</num><heading>Purpose and Scope</heading><content>Pursuant to Transportation Code, §520.0071, a county tax assessor-collector, with the approval of the commissioners court of the county, may appoint deputies to perform designated motor vehicle titling and registration services. This subchapter prescribes the classification types, duties, and obligations of deputies; the type and amount of any bonds that deputies may be required to post; and the fees that deputies may be authorized to charge or retain. All deputies must be deputized in accordance with and comply with the provisions of this subchapter.</content><note type="source"><p>Source Note: The provisions of this §217.161 adopted to be effective March 12, 2015, 40 TexReg 1096; amended to be effective August 8, 2016, 41 TexReg 5787; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scH/s217.162"><num value="217.162">§217.162</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings unless the context clearly indicates otherwise.(1) Board--Board of the Texas Department of Motor Vehicles.(2) Commercial fleet buyer--An entity that, in compliance with Transportation Code, §501.0234(b), is deputized under this subchapter, utilizes the dealer title application process developed to provide a method to submit title transactions to the county in which the commercial fleet buyer is a deputy, and has authority to accept an application for registration and application for title transfer that the county tax assessor-collector may accept.(3) Dealer deputy--A motor vehicle dealer, as defined by Transportation Code, §503.001(4), including a commercial fleet buyer, who is deputized to process motor vehicle titling and registration transactions, and who may be authorized to provide registration renewal services. Dealer deputy includes an individual, who is not himself or herself appointed as a deputy, employed, hired, or otherwise engaged by the dealer deputy to serve as the deputy's agent in performing motor vehicle titling, registration or registration renewal services.(4) Department--Texas Department of Motor Vehicles.(5) Deputy--A person appointed to serve in an official government capacity to perform, under the provisions of this subchapter, designated motor vehicle titling, registration, and registration renewal services as a deputy assessor-collector. The term "deputy" does not include an employee of a county tax assessor-collector.(6) Full service deputy--A deputy appointed to accept and process applications for motor vehicle title transfers and initial registrations, and process registration renewals and other transactions related to titling and registration. Full service deputy includes an individual, who is not himself or herself appointed as a deputy, employed, hired, or otherwise engaged by the full service deputy to serve as the deputy's agent in performing motor vehicle titling, registration or registration renewal services.(7) Limited service deputy--A deputy appointed to accept and process motor vehicle registration renewals. Limited service deputy includes an individual, who is not himself or herself appointed as a deputy, employed, hired, or otherwise engaged by the limited service deputy to serve as the deputy's agent in performing motor vehicle registration renewals.(8) Person--An individual, business organization, governmental subdivision or agency, or any other legal entity.</content><note type="source"><p>Source Note: The provisions of this §217.162 adopted to be effective August 8, 2016, 41 TexReg 5787.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scH/s217.163"><num value="217.163">§217.163</num><heading>Full Service Deputies</heading><content>(a) A county tax assessor-collector, with the approval of the commissioners court of the county, may deputize a person to act as a full service deputy in the same manner and with the same authority as though done in the office of the county tax assessor-collector, subject to the criteria and limitations of this section, including signing the addendum as specified in subsection (k) of this section.(b) A full service deputy must offer and provide titling and registration services to the general public, and must accept any application for registration, registration renewal, or title transfer that the county tax assessor-collector would accept and process, unless otherwise limited by the county.(c) The county tax assessor-collector may impose reasonable obligations or requirements upon a full service deputy in addition to those set forth in this section.(d) To be eligible to serve as a full service deputy, a person must be trained, as approved by the county tax assessor-collector, to perform motor vehicle titling, registration, and registration renewal services, or otherwise be deemed competent by the county tax assessor-collector to perform such services.(e) To be eligible to serve as a full service deputy, a person must post a bond payable to the county tax assessor-collector consistent with §217.167 of this title (relating to Bonding Requirements) with the bond conditioned on the person's proper accounting and remittance of the fees the person collects.(f) A person applying to be a full service deputy must complete the application process as specified by the county tax assessor-collector. The application process may include satisfaction of any bonding requirements and completion of any additional required documentation or training of the deputy before the processing of any title, registration, or registration renewal applications may occur.(g) A full service deputy must provide the physical address at which services will be offered, the mailing address, the phone number, and the hours of service. This information may be published on the department's website and may be published by the county if the county publishes a list of deputy locations.(h) A full service deputy shall keep a separate accounting of the fees collected and remitted to the county and a record of daily receipts.(i) A full service deputy may charge or retain fees consistent with the provisions of §217.168 of this title (relating to Deputy Fee Amounts).(j) A full service deputy must maintain records in compliance with the State of Texas Records Retention Schedule as promulgated by the Texas State Library and Archives Commission.(k) Beginning January 1, 2017, a full service deputy must sign an addendum provided by the department outlining the terms and conditions of the full service deputy's access to and use of the department's registration and titling system. Any contract or agreement, or renewal of the contract or agreement, between the county and the full service deputy that authorizes the full service deputy to provide registration and titling services in the county must specifically incorporate the addendum by reference, and the contract or agreement may not supersede or contradict any term within the addendum. An addendum described by this subsection is required for each location at which the full service deputy operates. The addendum must be incorporated into any agreement or contract between the full service deputy and the county beginning January 1, 2017. The county must provide the department a current copy of each contract or agreement, including any amendments, with a full service deputy within 60 days of execution.</content><note type="source"><p>Source Note: The provisions of this §217.163 adopted to be effective August 8, 2016, 41 TexReg 5787; amended to be effective December 4, 2016, 41 TexReg 9335.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scH/s217.164"><num value="217.164">§217.164</num><heading>Limited Service Deputies</heading><content>(a) A county tax assessor-collector, with the approval of the commissioners court of the county, may deputize a person to act as a limited service deputy. A limited service deputy may only process registration renewals, except as limited by this section, and may not prepare or accept an application for title transfer or initial registration.(b) A limited service deputy offering registration renewal services to the general public must accept and process any proper application for registration renewal that the county tax assessor-collector would accept and process.(c) The county tax assessor-collector may impose reasonable obligations or requirements upon a limited service deputy in addition to those set forth in this section. The county tax assessor-collector may, at the time of deputation or upon renewal of deputation, impose specified restrictions or limitations on a limited service deputy's authority to provide registration renewal services.(d) A limited service deputy may be authorized by the county tax assessor-collector to provide registration renewal services only for the members, officers, employees, affiliates and customers of the deputy, and not to the public generally. If a limited service deputy does not provide services to the general public, the scope of the deputy's authority to provide registration renewal services to itself and its members, officers, employees, affiliates, and customers must be defined by the county tax assessor-collector as part of the authorization to act as a limited service deputy.(e) To be eligible to serve as a limited service deputy, a person must be trained to accept and process registration renewals, as approved by the county tax assessor-collector, or otherwise be deemed competent by the county tax assessor-collector to perform such services.(f) To be eligible to serve as a limited service deputy, a person must post a bond payable to the county tax assessor-collector consistent with §217.167 of this title (relating to Bonding Requirements) with the bond conditioned on the person's proper accounting and remittance of the fees the person collects.(g) A person applying to be a limited service deputy must complete the application process as specified by the county tax assessor-collector. The application process may include satisfaction of any bonding requirements and completion of any additional required documentation or training of the deputy before the processing of any registration renewals may occur.(h) If a limited service deputy offers services to the general public, the deputy must provide the physical address at which services will be offered, the mailing address, the phone number, and the hours of service. This information may be published on the department's website and may be published by the county if the county publishes a list of deputy locations.(i) A limited service deputy shall keep a separate accounting of the fees collected and remitted to the county, and a record of daily receipts.(j) A limited service deputy may retain fees consistent with the provisions of §217.168 of this title (relating to Deputy Fee Amounts).</content><note type="source"><p>Source Note: The provisions of this §217.164 adopted to be effective August 8, 2016, 41 TexReg 5787.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scH/s217.166"><num value="217.166">§217.166</num><heading>Dealer Deputies</heading><content>(a) A county tax assessor-collector, with the approval of the commissioners court of the county, may deputize a motor vehicle dealer to act as a dealer deputy to provide motor vehicle titling and registration services in the same manner and with the same authority as though done in the office of the county tax assessor-collector, except as limited by this section.(b) A dealer deputy must hold a valid general distinguishing number (GDN) under Transportation Code, Chapter 503, Subchapter B, and may act as a dealer deputy only for a type of motor vehicle for which the dealer holds a GDN. A dealer may not continue to act as a dealer deputy if the GDN is cancelled or suspended.(c) A county tax assessor-collector may impose reasonable obligations or requirements upon a dealer deputy in addition to those set forth in this section. The county tax assessor-collector may, at the time of deputation or upon renewal of deputation, impose specified restrictions or limitations on a dealer deputy's authority to provide certain titling or registration services.(d) Upon the transfer of ownership of motor vehicles purchased, sold or exchanged by the dealer deputy, the dealer deputy may process titling transactions in the same manner and with the same authority as though done in the office of the county tax assessor-collector. The dealer deputy may not otherwise provide titling services to the general public.(e) Upon the transfer of ownership of a motor vehicle purchased, sold or exchanged by the dealer deputy, the dealer deputy may process initial registration transactions in the same manner and with the same authority as though done in the office of the county tax assessor-collector. The dealer deputy may not otherwise offer initial registration services to the general public.(f) The county tax assessor-collector may authorize a dealer deputy to provide motor vehicle registration renewal services. A dealer deputy offering registration renewal services must offer such services to the general public, and must accept and process any proper application for registration renewal that the county tax assessor-collector would accept and process.(g) To be eligible to serve as a dealer deputy, a person must be trained to perform motor vehicle titling and registration services, as approved by the county tax assessor-collector, or otherwise be deemed competent by the county tax assessor-collector to perform such services.(h) To be eligible to serve as a dealer deputy, a person must post a bond payable to the county tax assessor-collector consistent with §217.167 of this title (relating to Bonding Requirements) with the bond conditioned on the person's proper accounting and remittance of the fees the person collects.(i) A person applying to be a dealer deputy must complete the application process as specified by the county tax assessor-collector. The application process may include satisfaction of any bonding requirements and completion of any additional required documentation or training of the deputy before the processing of any title or registration transactions may occur.(j) If a dealer deputy offers registration renewal services to the general public, the deputy must provide the physical address at which services will be offered, the mailing address, the phone number, and the hours of service. This information may be published on the department's website and may be published by the county if the county publishes a list of deputy locations.(k) A dealer deputy shall keep a separate accounting of the fees collected and remitted to the county, and a record of daily receipts.(l) A dealer deputy may charge or retain fees consistent with the provisions of §217.168 of this title (relating to Deputy Fee Amounts).(m) This section does not prevent a county tax assessor-collector from deputizing a dealer as a full service deputy under §217.163 of this title (relating to Full Service Deputies) or a limited service deputy under §217.164 of this title (relating to Limited Service Deputies) instead of a dealer deputy under this section.</content><note type="source"><p>Source Note: The provisions of this §217.166 adopted to be effective August 8, 2016, 41 TexReg 5787.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scH/s217.167"><num value="217.167">§217.167</num><heading>Bonding Requirements</heading><content>(a) A deputy appointed under this subchapter shall post a surety bond payable to the county tax assessor-collector.(b) A deputy is required to post a single bond for a county in which the deputy performs titling, registration, or registration renewal services, regardless of the number of locations in that county from which that deputy may provide these services.(c) A full service deputy or dealer deputy must post a bond in an amount between $100,000 and $5,000,000, as determined by the county tax assessor-collector.(d) A limited service deputy must post a bond in an amount between $2,500 and $1,000,000, as determined by the county tax assessor-collector.(e) A deputy that is an agency or subdivision of a governmental jurisdiction of the State of Texas is not required to post a bond pursuant to this section, unless the county tax assessor-collector determines that a bond should be required in an amount consistent with subsection (d) of this section.</content><note type="source"><p>Source Note: The provisions of this §217.167 adopted to be effective August 8, 2016, 41 TexReg 5787.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scH/s217.168"><num value="217.168">§217.168</num><heading>Deputy Fee Amounts</heading><content>(a) Fees. A county tax assessor-collector may authorize a deputy to charge or retain the fee amounts prescribed by this section according to the type of deputy and transaction type.(b) Title transactions. For each motor vehicle title transaction processed:(1) A full service deputy may charge the customer a fee of up to $20, as determined by the full service deputy and approved by the county tax assessor-collector.(A) The full service deputy retains the entire fee charged to the customer.(B) If a full service deputy is authorized by a county tax assessor-collector to review and approve title transactions submitted through webDEALER, the full service deputy is required to designate the fee of up to $20 within the department's Registration and Title System that will be assessed on webDEALER title transactions.(2) A dealer deputy may charge the customer a fee of up to $10, as determined by the dealer deputy and approved by the tax assessor-collector. The dealer deputy retains the entire fee charged to the customer. This section does not preclude a dealer deputy from charging a documentary fee authorized by Finance Code, §348.006.(c) Registration and registration renewals. For each registration transaction processed:(1) A full service deputy may:(A) retain $1 from the processing and handling fee established by §217.183 of this title (relating to Fee Amount); and(B) charge a convenience fee of $9, except as limited by §217.184 of this title (relating to Exclusions).(2) A limited service deputy may retain $1 from the processing and handling fee established by §217.183.(d) Special registration permit and special registration license plate transactions under Transportation Code, §502.094 or §502.095. For each special registration permit or special registration license plate transaction processed by a full service deputy, the full service deputy may retain the portion of the processing and handling fee authorized by §217.185(b) of this title (relating to Allocation of Processing and Handling Fees).(e) Full service deputy convenience fee. The convenience fee authorized by this section is collected by the full service deputy directly from the customer and is in addition to the processing and handling fee established by §217.183. A full service deputy may not charge any additional fee for a registration or registration renewal transaction.(f) Related transactions by a full service deputy. The limitations of subsections (b), (c), (d), and (e) of this section do not apply to other services that a full service deputy may perform that are related to titles or registrations, but are not transactions that must be performed through the department's automated vehicle registration and title system. Services that are not transactions performed through the department's automated vehicle registration and title system include, but are not limited to, the additional fees a full service deputy may charge for copying, faxing, or transporting documents required to obtain or correct a motor vehicle title or registration. However, the additional fees that a full service deputy may charge for these other services may be limited by the terms of the county tax assessor-collector's authorization to act as deputy.(g) Posting of fees. At each location where a full service deputy provides titling or registration services, the deputy must prominently post a list stating all fees charged for each service related to titling or registration. The fee list must specifically state each service, including the additional fee charged for that service, that is subject to subsections (b), (c), (d), or (e) of this section. The fee list must also state that each service subject to an additional fee under subsection (b), (c), (d), or (e) of this section may be obtained from the county tax assessor-collector without the additional fee. If the full service deputy maintains a website advertising or offering titling or registration services, the deputy must post the fee list described by this subsection on the website.(h) Additional compensation. The fee amounts set forth in this section do not preclude or limit the ability of a county to provide additional compensation to a deputy out of county funds.</content><note type="source"><p>Source Note: The provisions of this §217.168 adopted to be effective August 8, 2016, 41 TexReg 5787; amended to be effective May 21, 2018, 43 TexReg 3245; amended to be effective July 1, 2025, 49 TexReg 8980.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c217/scI"><num value="I">SUBCHAPTER I</num><heading>PROCESSING AND HANDLING FEES</heading><section identifier="/us/state/tx/tac/t43/p10/c217/scI/s217.181"><num value="217.181">§217.181</num><heading>Purpose and Scope</heading><content>This subchapter prescribes the processing and handling fees authorized by Transportation Code, §502.1911, which include the fee established under Transportation Code, §502.356(a), and are sufficient to cover the expenses associated with collecting registration fees by the department, a county tax assessor-collector, a private entity with which a county tax assessor-collector contracts under Transportation Code, §502.197, or a deputy assessor-collector that is deputized in accordance with Subchapter H of this chapter (relating to Deputies).</content><note type="source"><p>Source Note: The provisions of this §217.181 adopted to be effective August 8, 2016, 41 TexReg 5777; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scI/s217.182"><num value="217.182">§217.182</num><heading>Registration Transaction</heading><content>As used in this subchapter, a "registration transaction" is a registration or registration renewal under Transportation Code, Chapter 502, or a transaction to issue the following:(1) a registration, registration renewal, special registration license plate, or special registration permit issued under Transportation Code, Chapter 502, Subchapter C (Special Registrations);(2) a license plate issued under Transportation Code, §502.146;(3) a temporary additional weight permit under Transportation Code, §502.434;(4) a license plate or license plate sticker under Transportation Code, §§504.501, 504.502, 504.506, or 504.507;(5) a golf cart license plate under Transportation Code, §551.402; or(6) a package delivery vehicle license plate under Transportation Code, §551.452.(7) an off-highway vehicle license plate under Transportation Code, §551A.052.</content><note type="source"><p>Source Note: The provisions of this §217.182 adopted to be effective August 8, 2016, 41 TexReg 5777; amended to be effective November 14, 2017, 42 TexReg 6384; amended to be effective August 26, 2020, 45 TexReg 5934; amended to be effective July 1, 2025, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scI/s217.183"><num value="217.183">§217.183</num><heading>Fee Amount</heading><content>(a) Except as stated otherwise in this section and except as exempted by §217.184 of this title (relating to Exclusions), a processing and handling fee in the amount of $4.75 shall be collected with each registration transaction processed by the department, the county tax assessor-collector, or a deputy appointed by the county tax assessor-collector.(b) Except as stated otherwise in subsection (c) of this section and except as exempted by §217.184 of this title (relating to Exclusions), for each registration transaction processed through the department's TxFLEET system, the processing and handling fee consists of the following, which the applicant must pay:(1) $4.75; and(2) the applicable service charge.(c) If a transaction includes both registration and issuance of a license plate or specialty plate, the processing and handling fee shall be collected on the registration transaction only.</content><note type="source"><p>Source Note: The provisions of this §217.183 adopted to be effective August 8, 2016, 41 TexReg 5777; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scI/s217.184"><num value="217.184">§217.184</num><heading>Exclusions</heading><content>The following transactions are exempt from the processing and handling fees established by §217.183 of this title (relating to Fee Amount), but are subject to any applicable service charge set pursuant to Government Code, §2054.2591, Fees. The processing and handling fees may not be assessed or collected on the following transactions:(1) a replacement registration sticker under Transportation Code, §502.060;(2) a registration transfer under Transportation Code, §502.192;(3) an exempt registration under Transportation Code, §502.451 or §502.0025;(4) a vehicle transit permit under Transportation Code, §502.492;(5) a replacement license plate under Transportation Code, §504.007;(6) a registration correction receipt, duplicate receipt, or inquiry receipt;(7) an inspection fee receipt; or(8) an exchange of license plate for which no registration fees are collected.</content><note type="source"><p>Source Note: The provisions of this §217.184 adopted to be effective August 8, 2016, 41 TexReg 5777; amended to be effective December 28, 2022, 47 TexReg 8756; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scI/s217.185"><num value="217.185">§217.185</num><heading>Allocation of Processing and Handling Fees</heading><content>(a) For registration transactions, except as provided in subsection (b) of this section, the fee amounts established in §217.183 of this title (relating to Fee Amount) shall be allocated as follows:(1) If the registration transaction was processed in person at the office of the county tax assessor-collector or mailed to an office of the county tax assessor-collector:(A) the county tax assessor-collector may retain $2.30; and(B) the remaining amount shall be remitted to the department. (2) If the registration transaction was processed through the department or the TxFLEET system or is a registration processed under Transportation Code, §§502.0023, 502.091, or 502.255; or §217.46(b)(5) of this title (relating to Commercial Vehicle Registration):(A) $2.30 will be remitted to the county tax assessor-collector; and(B) the remaining amount shall be retained by the department. (3) If the registration transaction was processed through Texas by Texas (TxT) or the department's Internet Vehicle Title and Registration Service (IVTRS):(A) Texas Online receives the amount set pursuant to Government Code, §2054.2591, Fees;(B) the county tax assessor-collector may retain $.25; and(C) the remaining amount shall be remitted to the department. (4) If the registration transaction was processed by a limited service deputy or full service deputy appointed by the county tax assessor-collector in accordance with Subchapter H of this chapter (relating to Deputies):(A) the deputy may retain:(i) the amount specified in §217.168(c) of this title (relating to Deputy Fee Amounts). The deputy must remit the remainder of the processing and handling fee to the county tax assessor-collector; and(ii) the convenience fee established in §217.168, if the registration transaction is processed by a full service deputy;(B) the county tax assessor-collector may retain $1.30; and(C) the county tax assessor-collector must remit the remaining amount to the department.(5) If the registration transaction was processed by a dealer deputy appointed by the county tax assessor-collector in accordance with Subchapter H of this chapter (relating to Deputies):(A) the deputy must remit the processing and handling fee to the county tax assessor-collector;(B) the county tax assessor-collector may retain $2.30; and(C) the county tax assessor-collector must remit the remaining amount to the department.(b) For transactions under Transportation Code, §§502.093- 502.095, the entity receiving the application and processing the transaction collects the $4.75 processing and handling fee established in §217.183: (1) the entity may retain $4.25; (2) the entity must remit the remaining amount to the department; and(3) a full service deputy processing a special registration permit or special registration license plate transaction may not charge a convenience fee for that transaction.</content><note type="source"><p>Source Note: The provisions of this §217.185 adopted to be effective August 8, 2016, 41 TexReg 5777; amended to be effective May 21, 2018, 43 TexReg 3245; amended to be effective July 1, 2025, 49 TexReg 8980; amended to be effective December 8, 2025, 50 TexReg 6517.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c217/scJ"><num value="J">SUBCHAPTER J</num><heading>PERFORMANCE QUALITY RECOGNITION PROGRAM</heading><section identifier="/us/state/tx/tac/t43/p10/c217/scJ/s217.201"><num value="217.201">§217.201</num><heading>Purpose and Scope</heading><content>Transportation Code, §520.004, requires the department to establish standards for uniformity and service quality for counties. This subchapter prescribes the procedures and general criteria the department will use to establish and administer a voluntary program called the Performance Quality Recognition Program. The department will use the Performance Quality Recognition Program to recognize county tax assessor-collectors and their offices for outstanding performance and efficiency in processing title and registration transactions.</content><note type="source"><p>Source Note: The provisions of this §217.201 adopted to be effective August 8, 2016, 41 TexReg 5798.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scJ/s217.202"><num value="217.202">§217.202</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Department--The Texas Department of Motor Vehicles.(2) Deputy--A person appointed to serve in an official government capacity to perform, under the provisions of Subchapter H of this chapter, designated motor vehicle titling, registration, and registration renewal services as a deputy assessor-collector. The term "deputy" does not include an employee of a county tax assessor-collector.(3) Office--The county tax assessor-collector office(s) for each county, including the office(s) of any deputy.</content><note type="source"><p>Source Note: The provisions of this §217.202 adopted to be effective August 8, 2016, 41 TexReg 5798.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scJ/s217.203"><num value="217.203">§217.203</num><heading>Recognition Criteria</heading><content>(a) Levels of recognition. The department will establish criteria for multiple levels of recognition for performance.(b) Recognition criteria for minimum recognition level. The recognition criteria shall include, but are not limited to, factors that indicate whether the office:(1) timely remits registration fee collections;(2) timely remits motor vehicle sales tax and penalties;(3) consistently applies statutes, rules, and policies governing motor vehicle transactions; and(4) maintains bonds as required by statute or administrative rule.(c) Recognition criteria for a higher recognition level. In addition to the recognition criteria listed in subsection (b) of this section, the recognition criteria shall include, but are not limited to, factors that indicate whether the office:(1) performs efficiently and with low error rates;(2) processes transactions in a timely fashion;(3) has customer feedback programs; and(4) has fraud, waste, and abuse awareness and prevention programs.(d) Possible additional criteria for a higher recognition level. In addition to the recognition criteria listed in subsections (b) and (c) of this section, the department may include recognition criteria, such as the following, that indicate whether the office:(1) implements cost-saving measures; and(2) has customer feedback metrics to measure customer satisfaction.(e) Posting recognition criteria. The department shall post the recognition criteria on its website.</content><note type="source"><p>Source Note: The provisions of this §217.203 adopted to be effective August 8, 2016, 41 TexReg 5798.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scJ/s217.204"><num value="217.204">§217.204</num><heading>Applications</heading><content>(a) Application deadline. If a county tax assessor-collector chooses to apply for a recognition level or to apply for a higher level of recognition under the Performance Quality Recognition Program, the county tax assessor-collector must submit an application to the department during any year of the county tax assessor-collector's term of office. The application must be received by the department or postmarked no later than October 31st.(b) Application from a successor county tax assessor-collector. A successor county tax assessor-collector is not eligible for a recognition level until after serving as the county tax assessor-collector during an entire state fiscal year, which is September 1st through August 31st.(c) Application for a higher level of recognition.(1) If a county tax assessor-collector obtains a recognition level and chooses to apply for a higher level of recognition during the term of the existing recognition level, the county tax assessor-collector is not eligible to apply for a higher level until after serving as the county tax assessor-collector during an entire state fiscal year subsequent to the state fiscal year for which the existing recognition level was awarded.(2) If the department demotes a county tax assessor-collector's recognition level, the county tax assessor-collector is not eligible to apply for a higher level of recognition until after serving as the county tax assessor-collector during an entire state fiscal year subsequent to the state fiscal year during which the existing recognition level was demoted.(d) Application for a recognition level after revocation of recognition level. If the department revokes a county tax assessor-collector's recognition level, the county tax assessor-collector is not eligible to apply for a recognition level until after serving as the county tax assessor-collector during an entire state fiscal year subsequent to the state fiscal year during which the recognition level was revoked.(e) Application form. The application must be submitted on a form prescribed by the department.(f) Signature on application. The county tax assessor-collector must sign the application.(g) Additional information, documentation, or clarification. At the department's discretion, the department may request additional information, documentation, or clarification from the county tax assessor-collector after the department receives an application. The department shall provide the county tax assessor-collector with a deadline to respond to the request.</content><note type="source"><p>Source Note: The provisions of this §217.204 adopted to be effective August 8, 2016, 41 TexReg 5798.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scJ/s217.205"><num value="217.205">§217.205</num><heading>Department Decision to Award, Deny, Revoke, or Demote a Recognition Level</heading><content>(a) Award of recognition level. The department may award a recognition level based on the following for the time frame of September 1st through August 31st immediately preceding the application deadline:(1) information and documents contained in the application;(2) any additional information, documentation, or clarification requested by the department; and(3) information and documentation from department records.(b) Denial of recognition level. The department may deny an award of recognition if:(1) the application contains any incomplete or inaccurate information;(2) the applicant fails to provide requested documents;(3) the application contains incomplete documents;(4) the application was not received by the department or postmarked by the department's deadline;(5) the county tax assessor-collector who applied for recognition no longer holds the office of county tax assessor-collector;(6) the county tax assessor-collector did not sign the application; or(7) the department discovers information which shows the applicant does not comply with the criteria to receive a recognition level.(c) Revocation of recognition level or demotion of recognition level.(1) The department may revoke a recognition level if the department discovers information which shows the county tax assessor-collector no longer complies with the criteria for any recognition level.(2) The department may demote a recognition level if the department discovers information which shows the county tax assessor-collector no longer complies with the criteria for the current recognition level, but still complies with the criteria for a recognition level. The recognition level will be demoted to the highest recognition level for which the county tax assessor-collector qualifies.(d) Notice of department decision to award, deny, revoke, or demote a recognition level. The department shall notify the county tax assessor-collector of the department's decision via email, facsimile transmission, or regular mail.(e) Deadline for department decision to award or to deny a recognition level. No later than December 31st of the calendar year, the department shall send a written notice to the applicant stating:(1) the department's decision to award or to deny a recognition level; or(2) there will be a delay in the department's decision.</content><note type="source"><p>Source Note: The provisions of this §217.205 adopted to be effective August 8, 2016, 41 TexReg 5798; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scJ/s217.206"><num value="217.206">§217.206</num><heading>Term of Recognition Level</heading><content>(a) Expiration of recognition level. Except as provided in subsections (b), (c), (d), and (e) of this section, the recognition level expires on the later of the end of the county tax assessor-collector's term of office during which the recognition was awarded or the one-year anniversary of the start of their re-election term of office.(b) Demoted recognition level. If a recognition level is demoted during the term of a recognition level, the demoted recognition level expires on the later of the end of the county tax assessor-collector's term of office during which the recognition level was demoted or the one-year anniversary of the start of their re-election term of office, except as provided in subsections (c), (d), and (e) of this section. If a recognition level is demoted during the first year of the county tax assessor-collector's re-election term of office and the recognition level was awarded during the county tax assessor-collector's prior term of office, the demoted recognition level expires on the one-year anniversary of the start of their re-election term of office, except as provided in subsections (c) and (e) of this section.(c) Revoked recognition level. A recognition level that is revoked will terminate on the effective date of the revocation.(d) Decision on application for a higher level of recognition. If a county tax assessor-collector chooses to apply for a higher level of recognition, the existing recognition level terminates once the department makes a decision on the application for a higher level of recognition.(e) County tax assessor-collector no longer holds office. The recognition level awarded to a county tax assessor-collector expires when the county tax assessor-collector no longer holds the office of county tax assessor-collector.</content><note type="source"><p>Source Note: The provisions of this §217.206 adopted to be effective August 8, 2016, 41 TexReg 5798.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scJ/s217.207"><num value="217.207">§217.207</num><heading>Review Process</heading><content>(a) Request for review. A county tax assessor-collector may request the department to review its decision by submitting a written request for review as prescribed by the department:(1) if an application for recognition is denied;(2) if the county tax assessor-collector is not satisfied with the awarded level of recognition; or(3) if a level of recognition is revoked or demoted.(b) Deadline for request for review. The written request for review must be received by the department or postmarked no later than 90 calendar days after the date listed in the department's notice to the county tax assessor-collector of the department's decision for which review is requested.(c) County tax assessor-collector's request for review. The department will not consider a request for review submitted by someone other than the county tax assessor-collector who signed the application for recognition or who obtained the recognition level at issue. The request must:(1) specifically identify the basis for the county tax assessor-collector's disagreement with the department's decision; and(2) include any evidence or legal authority that supports the request for review.(d) Deadline for department decision on request for review. The department shall make a decision on the written request for review no later than 90 calendar days after receiving the written request for review.(e) Notice of department decision on request for review. The department shall notify the county tax assessor-collector of the department's decision via email, facsimile transmission, or regular mail.</content><note type="source"><p>Source Note: The provisions of this §217.207 adopted to be effective August 8, 2016, 41 TexReg 5798.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c217/scK"><num value="K">SUBCHAPTER K</num><heading>ELECTRONIC SIGNATURES</heading><section identifier="/us/state/tx/tac/t43/p10/c217/scK/s217.301"><num value="217.301">§217.301</num><heading>Purpose and Scope</heading><content>Transportation Code, §501.174, requires the department to establish a process to accept electronic signatures on secure documents that have been electronically signed through a system not controlled by the department. 1 TAC §203.20 (relating to Guidelines) requires state government agencies that send and accept electronic records and electronic signatures to and from other persons and to state agencies that otherwise create, generate, communicate, store, process, use, and rely upon electronic records and electronic signatures to comply with Guidelines for the Management of Electronic Transactions and Signed Records. This subchapter prescribes the policies and procedures for the acceptance of electronic signatures on secure documents and the use and acceptance of electronic signatures on non-secure documents.</content><note type="source"><p>Source Note: The provisions of this §217.301 adopted to be effective January 1, 2019, 43 TexReg 8637.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scK/s217.302"><num value="217.302">§217.302</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Department--The Texas Department of Motor Vehicles.(2) Electronic signature--An electronic signature as defined in Transportation Code, §501.172.(3) Secure document--A document that incorporates features that can be used to identify and authenticate a document as original, printed by a secure printing process, and provided by the department or issued by an equivalent department in another jurisdiction.(4) webDEALER--The department's web-based titling and registration system as defined in §217.71 of this title (relating to Automated and Web-Based Vehicle Registration and Title Systems).</content><note type="source"><p>Source Note: The provisions of this §217.302 adopted to be effective January 1, 2019, 43 TexReg 8637.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scK/s217.303"><num value="217.303">§217.303</num><heading>Process for Accepting Electronic Signatures</heading><content>(a) For records submitted to the department, persons may use electronic signatures in lieu of traditional signatures, as authorized by this subchapter, provided the requirements of this subchapter are met.(b) Electronic signatures may not be used for any purpose other than the purpose indicated by the signer on the document, and:(1) shall be linked to their respective electronic records to ensure that the signatures cannot be excised, copied, or otherwise transferred; and(2) must match the signer's printed name on the form or application on which the signature is affixed.(c) The department does not certify or approve an electronic signature process or vendor. An entity offering an electronic signature process under this subchapter assumes all responsibility for the accuracy of that signature.(d) A secure document with an electronic signature may only be submitted to the county or department through webDEALER. A secure document with an electronic signature will not be accepted unless submitted through webDEALER. A secure document with an electronic signature submitted in compliance with this subchapter must be accepted by the county tax assessor-collector.(e) A non-secure document with an electronic signature may be submitted to a county tax assessor-collector or the department electronically through webDEALER or physically if the electronic signature is printed on the document. A non-secure document with an electronic signature submitted in compliance with this subchapter must be accepted by the county tax assessor-collector.(f) A system used to electronically sign documents, regardless of how the documents are submitted, must capture and retain the:(1) name of the signer;(2) date; and(3) electronic signature of the signer.(g) An electronic signature physically printed or electronically affixed on any document submitted to the department or a county must indicate the signature is an electronic signature.(h) Unless exempted from this requirement by subsection (i) of this section, a system used by a person to apply or capture an electronic signature or electronically sign a document must verify the identity of the user accessing the system to execute the document with an electronic signature. Access to the system must be secure and utilize unique credentials for each user. The system must:(1) be securely maintained;(2) capture and retain the user information by providing the Internet Protocol address of the signer;(3) indicate the area(s) electronically signed on any document; and(4) retain all information provided to the system for a period of five years. This information must be made available to the department upon request.(i) An electronic signature captured using a stylus, pen pad, mouse, or other physical means is exempt from subsection (h) of this section and meets the requirements of this subchapter if the signer presents a current photo identification described by §217.5(d) of this title (relating to Evidence of Motor Vehicle Ownership); the identity of the signer is verified in person by a person who holds a general distinguishing number issued under Transportation Code, Chapter 503, or Occupations Code, Chapter 2301; and the photo identification presented is retained in accordance with §217.5(d).</content><note type="source"><p>Source Note: The provisions of this §217.303 adopted to be effective January 1, 2019, 43 TexReg 8637.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c217/scL"><num value="L">SUBCHAPTER L</num><heading>ASSEMBLED VEHICLES</heading><section identifier="/us/state/tx/tac/t43/p10/c217/scL/s217.401"><num value="217.401">§217.401</num><heading>Purpose and Scope</heading><content>(a) Transportation Code Chapter 731, charges the department with the responsibility of establishing procedures and requirements for issuance of title and registration for an assembled vehicle. For the department to efficiently and effectively issue motor vehicle titles, maintain records, and collect the applicable fees, this subchapter prescribes the policies and procedures for the application for and issuance of motor vehicle titles to assembled vehicles.(b) For purposes of this subchapter, a glider kit issued a title with a "RECONSTRUCTED" remark is a replica.</content><note type="source"><p>Source Note: The provisions of this §217.401 adopted to be effective June 22, 2020, 45 TexReg 4058.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scL/s217.402"><num value="217.402">§217.402</num><heading>Definitions</heading><content>(a) The definitions in Transportation Code §731.001, apply to this subchapter.(b) The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:(1) Applicant--a person applying for title to an assembled vehicle who:(A) is a hobbyist;(B) is the owner of an assembled vehicle that has not been previously titled as an assembled vehicle; or(C) purchased an assembled vehicle constructed and designated by the manufacturer as a replica, custom vehicle, street rod, or glider kit.(2) Basic component part--the motor, body, and frame of an assembled vehicle, as applicable to the type of assembled vehicle. This term is a subset of "major component part" as defined in Transportation Code §501.091, but the term "basic component part" is not applicable in determining whether a vehicle qualifies as a custom vehicle or street rod under Transportation Code §504.501(f), which is the purpose of the term "major component part."(3) Continuous sale--is offering for sale or the sale of five or more assembled vehicles of the same type in a calendar year when such vehicles are not owned and titled in the name of the owner.(4) Manufacturer--is a person that builds an assembled vehicle and is not a hobbyist, has the meaning as defined in Occupations Code §2301.002, and is subject to the requirements of that chapter applicable to manufacturers, including sale through a franchise dealer network.(5) Personal use--is the construction of an assembled vehicle by a hobbyist for use by the hobbyist.</content><note type="source"><p>Source Note: The provisions of this §217.402 adopted to be effective June 22, 2020, 45 TexReg 4058.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scL/s217.403"><num value="217.403">§217.403</num><heading>Assembled Vehicle Titles</heading><content>(a) An applicant must apply for initial title in the applicant's name as provided by Transportation Code Chapter 731, and this subchapter in order to register an assembled vehicle for operation on a public roadway or prior to transfer of ownership.(b) The ownership transfer of an assembled vehicle titled under subsection (a) of this section must be in accordance with §217.407 of this subchapter (relating to Title and Registration of a Titled Assembled Vehicle).(c) Unless the assembled vehicle is ineligible for title or registration for a reason listed under Transportation Code §731.051(b), the department shall issue a title for an assembled vehicle:(1) that passes the inspection required under §217.143 of this chapter (relating to Assembled Vehicle Inspection Requirements), and Transportation Code §731.101;(2) that, in addition to the inspection described in paragraph (1) of this subsection, passes an inspection required by Transportation Code Chapter 548, as applicable; and(3) following receipt of a fully completed application and all required forms and fees, as identified in §217.404 of this subchapter (relating to Initial Application for Title).</content><note type="source"><p>Source Note: The provisions of this §217.403 adopted to be effective June 22, 2020, 45 TexReg 4058.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scL/s217.404"><num value="217.404">§217.404</num><heading>Initial Application for Title</heading><content>(a) An applicant must submit to the department a complete application for title. The application may be submitted in person, by mail, or electronically, to the department. The application must include:(1) photographs of the front, rear, and side of the assembled vehicle, and if a replica, a photograph of what the vehicle is a replica of;(2) evidence of ownership of the basic component parts of the assembled vehicle as described in §217.405 of this subchapter (relating to Evidence of Ownership), as applicable to the type of assembled vehicle;(3) if applicable, proof, on a form prescribed by the department, of a safety inspection required under §217.143 of this chapter (relating to Assembled Vehicle Inspection Requirements), and Transportation Code §731.101;(4) if applicable, a copy of the Automobile and Light Truck certification, or a successor certification, for the master technician who completed the inspection described in paragraph (3) of this subsection;(5) a copy of the inspection that may be required under Transportation Code Chapter 548 if the assembled vehicle is to be registered for operation on the roadway;(6) a Rebuilt Vehicle Statement;(7) a weight certificate;(8) identification as required in §217.5(d) of this chapter (relating to Evidence of Motor Vehicle Ownership); and(9) any of the following means to establish the vehicle identification number:(A) an Application for Assigned or Reassigned Number, and Notice of Assigned Number or Installation of Reassigned Vehicle Identification Number, on forms prescribed by the department;(B) an Application for Assigned or Reassigned Number, establishing the vehicle identification number assigned by the manufacturer of the component part by which the assembled vehicle will be identified;(C) acceptable proof, as established by the department, of a vehicle identification number assigned by the maker of the kit used to construct the assembled vehicle; or(D) acceptable proof, as established by the department, of a vehicle identification number assigned by the manufacturer of the replica, custom vehicle, street rod, or glider kit.(b) Following receipt of all information required under subsection (a) of this section, the department will review the application for completeness and to determine if the vehicle meets assembled vehicle qualifications under Transportation Code, Chapter 731.(c) If the department determines that the application is complete and the vehicle meets assembled vehicle qualifications, the department will issue a letter to the applicant on department letterhead, stating that the application is complete and that the vehicle qualifies as an assembled vehicle. The letter shall include a list of the supporting documents and information identified in subsection (d)(2) of this section.(d) Following receipt of the department's letter described in subsection (c) of this section, the applicant may then submit the letter and the completed application to the county tax assessor-collector for processing. The application must include:(1) the department-issued letter described in subsection (c) of this section;(2) copies of all items required to be submitted to the department in subsection (a)(1) - (9) of this section; and(3) the requirements as identified in §217.23 of this chapter (relating to Initial Application for Vehicle Registration) if obtaining registration.</content><note type="source"><p>Source Note: The provisions of this §217.404 adopted to be effective June 22, 2020, 45 TexReg 4058; amended to be effective November 14, 2024, 49 TexReg 8980.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scL/s217.405"><num value="217.405">§217.405</num><heading>Evidence of Ownership</heading><content>(a) Evidence of ownership in the name of or properly assigned to the applicant must accompany the title application submitted to the department.(b) The evidence of ownership for a replica, custom vehicle, street rod, or glider kit built by a manufacturer must be a manufacturer's certificate of origin, indicating:(1) the vehicle identification number assigned to the vehicle by the manufacturer;(2) the make as ASVE, unless a glider kit;(3) a notation the vehicle is a replica and what the vehicle is a replica of if a replica, custom vehicle, or street rod; and(4) the municipality and state in which the vehicle was completed.(c) The evidence of ownership for an assembled vehicle not previously titled as an assembled vehicle by the owner, or built by a hobbyist, must contain the identifying number(s) of the corresponding basic component part(s). Evidence of ownership is required for basic component parts used from a vehicle titled in the name of the applicant, depending on the year and manufacturer of the vehicle. The following evidence of ownership is required if the assembled vehicle is constructed with basic component parts from a vehicle not titled in the name of the applicant:(1) Motor. A bill of sale is required.(2) Frame. A bill of sale, certificate of origin, or title depending on the year and manufacturer of the frame.(3) Body. A bill of sale, certificate of origin, or title depending on the year and manufacturer of the body.(4) Kit. A bill of sale or certificate of origin for the kit.(5) New fabrication. A bill of sale, invoice, or receipts covering the material used to construct the basic component part.(d) An owner who is unable to obtain the evidence of ownership required under subsection (a) of this section may:(1) file a bond with the department in accordance with Transportation Code §501.053, and §217.9 of this chapter (relating to Bonded Titles); and(2) submit an application for title in the same manner as an applicant in accordance with Transportation Code Chapter 731, and this subchapter.(e) The department will assign a number or reassign the manufacturer's vehicle identification number to an assembled vehicle based on the result of the vehicle inspection under §217.404(a)(9)(A) or (B) of this subchapter (relating to Initial Application for Title). The owner under subsection (d) of this section establishing the vehicle identification number of an assembled vehicle under §217.404(a)(9)(A) or (B) of this subchapter, may use the vehicle identification number to satisfy the vehicle identification number requirement under §217.9 of this chapter and obtain a bond under §217.9 of this chapter to be filed with the department. The bond will be evidence of ownership under subsection (a) of this section.</content><note type="source"><p>Source Note: The provisions of this §217.405 adopted to be effective June 22, 2020, 45 TexReg 4058.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scL/s217.406"><num value="217.406">§217.406</num><heading>Title Issuance</heading><content>(a) Issuance. The county tax assessor-collector shall process the application for title and issue a receipt upon receiving:(1) a completed application for title;(2) required documents identified in §217.404(d) of this subchapter (relating to Initial Application for Title);(3) the statutory fee for a title application, unless exempt under:(A) Transportation Code §501.138; or(B) Government Code §437.217, and copies of official military orders are presented as evidence of the person's active duty status and deployment orders to a hostile fire zone; and(4) any other applicable fees.(b) Form of Title. In addition to the requirements under Transportation Code §731.053, an assembled vehicle, other than an assembled trailer, will be titled using the year it was assembled as the model year and "ASVE" for assembled as the make of the vehicle unless it is established to the department's satisfaction to be constructed from original parts that reflect an established year and make of a manufactured vehicle. An assembled vehicle constructed from original parts that reflect an established year and make of a manufactured vehicle will be titled by that year and make, but must reflect a "RECONSTRUCTED" remark if the component parts, excluding the motor, used to construct the vehicle are not original to that vehicle. An assembled vehicle not utilizing an original body may obtain a title with a "REPLICA" remark featuring the year and make of the replica if the vehicle resembles a prior model year vehicle. This subsection applies regardless of how the vehicle's model year or make was previously identified in this or any other jurisdiction. An assembled trailer will be titled using the year it was assembled as the model year and "HMDE" for homemade as the make. A vehicle that is titled under Transportation Code Chapter 731 and this subchapter that cannot be transferred to or by a dealer under Transportation Code §503.013 shall have a "NOT FOR DEALER RESALE" remark included on the title.(c) Distribution. The department will issue and mail or deliver a title to the applicant, or if a lien is disclosed in the application, to the first lienholder unless the title is an electronic record of title.(d) Receipt. The receipt issued at the time of application for title may be used only as evidence of title and may not be used to transfer any interest or ownership in a motor vehicle or to establish a new lien.</content><note type="source"><p>Source Note: The provisions of this §217.406 adopted to be effective June 22, 2020, 45 TexReg 4058.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c217/scL/s217.407"><num value="217.407">§217.407</num><heading>Title and Registration of a Titled Assembled Vehicle</heading><content>(a) After an assembled vehicle is titled under Transportation Code Chapter 731, and this subchapter, the assembled vehicle is subject to Transportation Code Chapters 501 and 502, and this subchapter, except as provided in subsection (c) of this section.(b) An assembled vehicle that is titled or registered in another jurisdiction, may be titled and registered in this jurisdiction subject to Transportation Code Chapters 501 and 502, and this subchapter, except as provided in subsection (c) of this section.(c) An assembled vehicle may not be:(1) transferred to or by a dealer licensed under Transportation Code Chapter 503, unless the assembled vehicle title contains a "REPLICA" remark; or(2) rebuilt by a salvage dealer licensed under Occupations Code Chapter 2302, as part of engaging in a business or activity regulated under Chapter 2302.(d) An assembled vehicle previously titled that has been disassembled and reassembled is subject to Transportation Code Chapter 731, and this subchapter.</content><note type="source"><p>Source Note: The provisions of this §217.407 adopted to be effective June 22, 2020, 45 TexReg 4058.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p10/c218"><num value="218">CHAPTER 218</num><heading>MOTOR CARRIERS</heading><subchapter identifier="/us/state/tx/tac/t43/p10/c218/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t43/p10/c218/scA/s218.1"><num value="218.1">§218.1</num><heading>Purpose</heading><content>Transportation Code, Chapters 643, 645, 646, and 648 require the department to regulate motor carriers, leasing businesses, and motor transportation brokers in order to protect the welfare of the public and ensure fair treatment of consumers by household goods carriers. The sections under this chapter prescribe the policies and procedures for the regulation of motor carriers, leasing businesses, and transportation brokers by providing for insurance limits, the issuance of motor carrier credentials, the filing of performance bonds for transportation brokers, audit and record keeping functions, and enforcement.</content><note type="source"><p>Source Note: The provisions of this §218.1 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective March 12, 2015, 40 TexReg 1104.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c218/scA/s218.2"><num value="218.2">§218.2</num><heading>Definitions</heading><content>(a) The definitions contained in Transportation Code, Chapter 643 apply to this chapter. In the event of a conflict with this chapter, the definitions contained in Transportation Code, Chapter 643 control; however, the definition of the word "director" in this section controls over the definition in Transportation Code, Chapter 643.(b) The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Advertisement--An oral, written, graphic, or pictorial statement or representation made in the course of soliciting intrastate household goods transportation services, including, without limitation, a statement or representation made in a newspaper, magazine, or other publication, or contained in a notice, sign, poster, display, circular, pamphlet, or letter, or on radio, the Internet, or via an online service, or on television. The term does not include direct communication between a household goods carrier or carrier's representative and a prospective shipper, and does not include the following:(A) promotional items of nominal value such as ball caps, tee shirts, and pens;(B) business cards;(C) listings not paid for by the household goods carrier or its household goods carrier's agent; and(D) listings of a household goods carrier's business name or assumed name as it appears on the motor carrier certificate of registration, and the household goods carrier's address, and contact information in a directory or similar publication.(2) Approved association--A group of household goods carriers, its agents, or both, that has an approved collective ratemaking agreement on file with the department under §218.64 of this title (relating to Rates).(3) Binding proposal--A written offer stating the exact price for the transportation of specified household goods and any related services.(4) Board--Board of the Texas Department of Motor Vehicles.(5) Certificate of insurance--A certificate prescribed by and filed with the department in which an insurance carrier or surety company warrants that a motor carrier for whom the certificate is filed has the minimum coverage as required by §218.16 of this title (relating to Insurance Requirements).(6) Certificate of registration--A certificate issued by the department to a motor carrier and containing a unique number.(7) Certified scale--Any scale designed for weighing motor vehicles, including trailers or semitrailers not attached to a tractor, and certified by an authorized scale inspection and licensing authority. A certified scale may also be a platform-type or warehouse-type scale properly inspected and certified.(8) Commercial motor vehicle--As defined in Transportation Code, §548.001. The definition for commercial motor vehicle does not include:(A) a farm vehicle with a gross weight, registered weight, or gross weight rating of less than 48,000 pounds;(B) a cotton vehicle registered under Transportation Code, §504.505;(C) a vehicle registered with the Railroad Commission under Natural Resources Code, §113.131 and §116.072;(D) a vehicle operated by a governmental entity;(E) a motor vehicle exempt from registration by the Unified Carrier Registration Act of 2005; and(F) a tow truck, as defined by Occupations Code, §2308.002.(9) Conspicuous--Written in a size, color, and contrast so as to be readily noticed and understood.(10) Conversion--A change in an entity's organization that is implemented with a Certificate of Conversion issued by the Texas Secretary of State under Business Organizations Code, §10.154.(11) Director--The director of the department's Motor Carrier Division, whom the executive director of the department designated as the director under Transportation Code, §643.001(2).(12) Estimate--An informal oral calculation of the approximate price of transporting household goods.(13) Farmer--A person who operates a farm or is directly involved in cultivating land, crops, or livestock that are owned by or are under the direct control of that person.(14) Farm vehicle--A commercial motor vehicle that is:(A) controlled and operated by a farmer to transport either:(i) agricultural products; or(ii) farm machinery, farm supplies, or both, to and from a farm;(B) not being used in the operation of a for-hire motor carrier;(C) not carrying hazardous materials of a type or quantity that requires the commercial motor vehicle to be placarded in accordance with 49 C.F.R. §177.823; and(D) being used within 150 air-miles of the farmer's farm.(15) FMCSA--Federal Motor Carrier Safety Administration.(16) Foreign commercial motor vehicle--As defined in Transportation Code, §648.001.(17) Gross weight rating--The maximum loaded weight of any combination of truck, tractor, and trailer equipment as specified by the manufacturer of the equipment. If the manufacturer's rating is unknown, the gross weight rating is the greater of:(A) the actual weight of the equipment and its lading; or(B) the maximum lawful weight of the equipment and its lading.(18) Household goods agent--A motor carrier who transports household goods on behalf of another motor carrier.(19) Household goods carrier--A motor carrier who transports household goods for compensation, regardless of the size of the vehicle.(20) Inventory--A list of the items in a household goods shipment and the condition of the items.(21) Leasing business--A person that leases vehicles requiring registration under Subchapter B of this chapter to a motor carrier that must be registered.(22) Mediation--A non-adversarial form of alternative dispute resolution in which an impartial person, the mediator, facilitates communication between two parties to promote reconciliation, settlement, or understanding.(23) Motor Carrier or carrier--As defined in Transportation Code, §643.001(6).(24) Motor transportation broker--As defined in Transportation Code, §646.001.(25) Moving services contract--A contract between a household goods carrier and shipper, such as a bill of lading, receipt, order for service, or work order, that sets out the terms of the services to be provided.(26) Multiple user--An individual or business who has a contract with a household goods carrier and who used the carrier's services more than 50 times within the preceding 12 months.(27) Not-to-exceed proposal--A formal written offer stating the maximum price a shipper can be required to pay for the transportation of specified household goods and any related services. The offer may also state the non-binding approximate price. Any offer based on hourly rates must state the maximum number of hours required for the transportation and related services unless there is an acknowledgment from the shipper that the number of hours is not necessary.(28) Principal business address--A single location that serves as a motor carrier's headquarters and where it maintains its operational records or can make them available.(29) Print advertisement--A written, graphic, or pictorial statement or representation made in the course of soliciting intrastate household goods transportation services, including, without limitation, a statement or representation made in or contained in a newspaper, magazine, circular, or other publication. The term does not include direct communication between a household goods carrier or carrier's representative and a prospective shipper, and does not include the following:(A) promotional items of nominal value such as ball caps, tee shirts, and pens;(B) business cards;(C) Internet websites;(D) listings not paid for by the household goods carrier or its household goods carrier's agent; and(E) listings of a household goods carrier's business name or assumed name as it appears on the motor carrier certificate of registration, and the household goods carrier's address, and contact information in a directory or similar publication.(30) Public highway--Any publicly owned and maintained street, road, or highway in this state.(31) Replacement vehicle--A vehicle that takes the place of another vehicle that has been removed from service.(32) Revocation--The withdrawal of registration and privileges by the department or a registration state.(33) Shipper--The owner of household goods or the owner's representative.(34) Short-term lease--A lease of 30 days or less.(35) Substitute vehicle--A vehicle that is leased from a leasing business and that is used as a temporary replacement for a vehicle that has been taken out of service for maintenance, repair, or any other reason causing the temporary unavailability of the permanent vehicle.(36) Suspension--Temporary removal of privileges granted to a registrant by the department or a registration state.(37) Unified Carrier Registration System or UCR--A motor vehicle registration system established under 49 U.S.C. §14504a or a successor federal registration program.(38) USDOT--United States Department of Transportation.(39) USDOT number--An identification number issued by or under the authority of the FMCSA or its successor.</content><note type="source"><p>Source Note: The provisions of this §218.2 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective August 4, 2011, 36 TexReg 4813; amended to be effective March 12, 2015, 40 TexReg 1104; amended to be effective February 1, 2017, 42 TexReg 323; amended to be effective January 2, 2025, 49 TexReg 10668.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c218/scB"><num value="B">SUBCHAPTER B</num><heading>MOTOR CARRIER REGISTRATION</heading><section identifier="/us/state/tx/tac/t43/p10/c218/scB/s218.10"><num value="218.10">§218.10</num><heading>Purpose</heading><content>This subchapter prescribes the procedures by which a motor carrier, leasing business, or household goods carrier may register with the department, and sets out minimum insurance requirements and minimum accidental insurance requirements.</content><note type="source"><p>Source Note: The provisions of this §218.10 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective June 1, 2024, 49 TexReg 2753; amended to be effective January 2, 2025, 49 TexReg 10668.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c218/scB/s218.11"><num value="218.11">§218.11</num><heading>Motor Carrier Registration</heading><content>(a) A motor carrier may not operate a commercial motor vehicle upon a public highway of this state without first obtaining a certificate of registration issued by the department as prescribed in this subchapter and a valid USDOT number.(b) A household goods carrier may not operate a vehicle upon a public highway of this state without first obtaining a certificate of registration issued by the department as prescribed in this subchapter and a valid USDOT number.(c) For the purposes of this subchapter, a valid USDOT number is an active USDOT number.</content><note type="source"><p>Source Note: The provisions of this §218.11 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective August 4, 2011, 36 TexReg 4813; amended to be effective March 12, 2015, 40 TexReg 1104; amended to be effective January 2, 2025, 49 TexReg 10668.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c218/scB/s218.12"><num value="218.12">§218.12</num><heading>Issuance of United States Department of Transportation Numbers</heading><content>USDOT numbers for intrastate and interstate operations can be obtained by filing a FMCSA MCS-150 form available from the FMCSA or by registering online at www.fmcsa.dot.gov.</content><note type="source"><p>Source Note: The provisions of this §218.12 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective March 12, 2015, 40 TexReg 1104.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c218/scB/s218.13"><num value="218.13">§218.13</num><heading>Application for Motor Carrier Registration</heading><content>(a) Form of original application. An original application for motor carrier registration must be filed electronically in the department's designated motor carrier registration system, must be in the form prescribed by the director and must contain, at a minimum, the following information and documents.(1) USDOT number. A valid USDOT number issued to the applicant.(2) Applicant information and documents. All applications must include the following information and documents:(A) The applicant's name, business type (e.g., sole proprietor, corporation, or limited liability company), telephone number, email address, and Secretary of State file number, as applicable. The applicant's name and email address must match the information the applicant provided to FMCSA to obtain the USDOT number that the applicant provided in its application to the department.(B) An application submitted by an entity, such as a corporation, general partnership, limited liability company, limited liability corporation, limited partnership, or partnership, must include the entity's Texas Comptroller's Taxpayer Number or the entity's Federal Employer Identification Number.(C) A legible and accurate electronic image of each applicable required document:(i) The certificate of filing, certificate of incorporation, or certificate of registration on file with the Texas Secretary of State; and(ii) each assumed name certificate on file with the Secretary of State or county clerk.(3) Information and documents regarding applicant's owners, representatives, and affiliates. All applications must include the following information and documents on the applicant's owners, representatives, and affiliates, as applicable:(A) The contact name, email address, and telephone number of the person submitting the application. An authorized representative of the applicant who files an application with the department on behalf of an applicant may be required to provide written proof of authority to act on behalf of the applicant.(B) The name, social security number or Individual Taxpayer Identification Number (to the extent the natural person is authorized by law to obtain one of these numbers), date of birth, business address, and ownership percentage for each owner, partner, member, or principal if the applicant is not a publicly traded company.(C) The name, social security number or Individual Taxpayer Identification Number (to the extent the natural person is authorized by law to obtain one of these numbers), date of birth, and business address for the following if the applicant is owned in full or in part by a legal entity:(i) each officer, director, or trustee authorized to act on behalf of the applicant; and(ii) each manager or representative who has or exercises authority to direct some or all of the applicant's operational policy regarding compliance with applicable laws regarding a motor carrier, excluding sales functions, on behalf of the applicant.(D) The name, employer identification number, ownership percentage, and non-profit or publicly traded status for each legal entity that owns the applicant in full or in part.(E) The name, social security number or Individual Taxpayer Identification Number (to the extent the natural person is authorized by law to obtain one of these numbers), date of birth, and business address for each person who serves or will serve as the applicant's manager, operator, or representative who has or exercises authority to direct some or all of the applicant's operational policy regarding compliance with applicable laws regarding a motor carrier, excluding sales functions.(F) A legible and accurate electronic image of at least one of the following unexpired identity documents for each natural person identified in the application:(i) a driver license issued by a state or territory of the United States. If the driver license was issued by the Texas Department of Public Safety, the image must also include the audit number listed on the Texas driver license;(ii) Texas identification card issued by the Texas Department of Public Safety under Transportation Code, Chapter 521, Subchapter E, or an identification certificate issued by a state or territory of the United States;(iii) license to carry a handgun issued by the Texas Department of Public Safety under Government Code, Chapter 411, Subchapter H;(iv) United States passport; or(v) United States military identification.(4) Principal business address and mailing address. The applicant must provide the applicant's principal business address, which must be a physical address. If the mailing address is different from the principal business address, the applicant must also provide the applicant's mailing address.(5) Legal agent.(A) A Texas-domiciled motor carrier must provide the name, telephone number, and address of a legal agent for service of process if the agent is different from the motor carrier.(B) A motor carrier domiciled outside Texas must provide the name, telephone number, and Texas address of the legal agent for service of process.(C) A legal agent for service of process shall be a Texas resident, a domestic corporation, or a foreign corporation authorized to transact business in Texas with a Texas physical address, rather than a post office box, for service of process.(6) Description of vehicles. An application must include a motor carrier equipment report identifying each motor vehicle that requires registration and that the carrier proposes to operate. Each motor vehicle must be identified by its vehicle identification number, make, model year, and type of cargo and by the unit number assigned to the motor vehicle by the motor carrier. Any subsequent registration of vehicles must be made under subsection (e) of this section.(7) Type of motor carrier operations. An applicant must state if the applicant proposes to transport passengers, household goods, or hazardous materials.(8) Insurance coverage. An applicant must indicate insurance coverage as required by §218.16 of this title (relating to Insurance Requirements).(9) Safety certification. Each motor carrier must complete, as part of the application, a certification stating that the motor carrier knows and will conduct operations in accordance with all federal and state safety regulations.(10) Drug-testing certification. Each motor carrier must certify, as part of the application, that the motor carrier is in compliance with the drug-testing requirements of 49 C.F.R. Part 382. If the motor carrier belongs to a consortium, as defined by 49 C.F.R. Part 382, the applicant must provide the names of the persons operating the consortium.(11) Duration of registration.(A) An applicant must indicate the duration of the desired registration. Except as provided otherwise in this section, registration may be for seven calendar days, 90 calendar days, one year, or two years. The duration of registration chosen by the applicant will be applied to all vehicles.(i) Household goods carriers may not obtain seven-day or 90-day certificates of registration.(ii) Motor carriers that transport passengers in a commercial motor vehicle as defined by Transportation Code, §548.001(1)(B) may not obtain seven-day or 90-day certificates of registration, unless approved by the director.(B) Interstate motor carriers that operate in intrastate commerce and meet the requirements under §218.14(c) of this title (relating to Expiration and Renewal of Commercial Motor Vehicles Registration) are not required to renew a certificate of registration issued under this section.(12) Additional requirements. The following fees, documents, and information must be submitted with the application.(A) An application must be accompanied by an application fee of:(i) $100 for annual and biennial registrations;(ii) $25 for 90-day registrations; or(iii) $5 for seven-day registrations.(B) An application must be accompanied by a vehicle registration fee of:(i) $10 for each vehicle that the motor carrier proposes to operate under a seven-day, 90-day, or annual registration; or(ii) $20 for each vehicle that the motor carrier proposes to operate under a biennial registration.(C) An application must be accompanied by proof of insurance or financial responsibility and the insurance filing fee as required by §218.16.(D) An application must include the completed New Applicant Questionnaire (Applicant Questionnaire), which consists of questions and requirements, such as the following:(i) Have you ever had another motor carrier certificate of registration number issued by the department in the three years prior to the date of this application? If your answer is yes, provide the certificate of registration number for the motor carrier(s). In the Applicant Questionnaire, the word "you" means the applicant or any business that is operated, managed, or otherwise controlled by or affiliated with the applicant or a family member, corporate officer, manager, operator, or owner (if the business is not a publicly traded company) of the applicant. In the Applicant Questionnaire, the word "manager" means a person who has or exercises authority to direct some or all of the applicant's operational policy regarding compliance with applicable laws regarding a motor carrier, excluding sales functions.(ii) Have you had a Compliance Review or a New Entrant Audit by the Texas Department of Public Safety that resulted in an Unsatisfactory Safety Rating in the three years prior to the date of your application? If your answer is yes, provide the USDOT number(s) and the certificate of registration number(s) issued by the department.(iii) Are you currently under an Order to Cease from the Texas Department of Public Safety? If your answer is yes, provide the motor carrier's USDOT number(s) and the Carrier Profile Number(s). The Texas Department of Public Safety assigns a Carrier Profile Number (CP#) when they perform a compliance review on a motor carrier's operations to determine whether the motor carrier meets the safety fitness standards.(iv) Are you related to another motor carrier, or have you been related to another motor carrier within the three years prior to the date of your application? The relationship may be through a person (including a family member), corporate officer, or partner who also operates or has operated as a motor carrier in Texas. If your answer is yes, state how you are related and provide the motor carrier's name and the motor carrier's USDOT number, or the certificate of registration number issued by the department for each related motor carrier.(v) Do you currently owe any administrative penalties to the department, regardless of when the final order was issued to assess the administrative penalties? If your answer is yes, provide the following information under which the administrative penalties were assessed:(I) department's notice number(s); and(II) the motor carrier's USDOT number and certificate of registration number issued by the department;(vi) Name and title of person completing the Applicant Questionnaire; and(vii) Is the person completing the Applicant Questionnaire an authorized representative of the applicant? If your answer is yes, please add the person's name, job title, phone number, and address.(E) An applicant must state if the applicant is domiciled in a foreign country.(F) An application must include a certification that the information and documents provided in the application are true and correct and that the applicant complied with the application requirements under Chapter 218 of this title (relating to Motor Carriers) and Transportation Code, Chapter 643.(G) An application must be accompanied by any other information and documents required by the department to evaluate the application under current law, including board rules.(13) Additional requirements for household goods carriers. The following information, documents, and certification must be submitted with all applications by household goods carriers:(A) A copy of the tariff that sets out the maximum charges for transportation of household goods, or a copy of the tariff governing interstate transportation services. If an applicant is governed by a tariff that its association has already filed with the department under §218.65 of this title (relating to Tariff Registration), the applicant complies with the requirement in this subparagraph by checking the applicable box on the application to identify the association's tariff.(B) If the motor vehicle is not titled in the name of the household goods carrier, the following lease information and documentation, notwithstanding §218.18(a) of this title (relating to Short-term Lease and Substitute Vehicles):(i) a copy of a valid lease agreement for each motor vehicle that the household goods carrier will operate; and(ii) the name of the lessor and their USDOT number for each motor vehicle leased to the household goods carrier under a short-term lease.(C) A certification that the household goods carrier has procedures that comply with Code of Criminal Procedure, Article 62.063(b)(3), which prohibits certain people who are required to register as a sex offender from providing moving services in the residence of another person without supervision.(14) Additional requirements for passenger carriers. The following information and documents must be submitted with all applications for motor carriers that transport passengers in a commercial motor vehicle as defined by Transportation Code, §548.001(1)(B):(A) If the commercial motor vehicle is titled in the name of the motor carrier, a copy of the International Registration Plan registration receipt or a copy of the front and back of the title for each commercial motor vehicle; or(B) If the commercial motor vehicle is not titled in the name of the motor carrier, the following lease information and documentation, notwithstanding §218.18(a) of this title:(i) A copy of a valid lease agreement for each commercial motor vehicle; and(ii) The name of the lessor and their USDOT number for each commercial motor vehicle leased to the motor carrier under a short-term lease.(b) Conditional acceptance of application. If an application has been conditionally accepted by the director pursuant to Transportation Code, §643.055, the applicant may not operate the following until the department has issued a certificate under Transportation Code, §643.054:(1) a commercial motor vehicle or any other motor vehicle to transport household goods for compensation, or(2) a commercial motor vehicle to transport persons or cargo.(c) Approved application. An applicant meeting the requirements of this section and whose registration is approved shall be issued the following documents:(1) Certificate of registration. The department shall issue a certificate of registration. The certificate of registration must contain the name and address of the motor carrier and a single registration number, regardless of the number of vehicles requiring registration that the carrier operates.(2) Insurance cab card. The department shall issue an insurance cab card listing all vehicles to be operated under the carrier's certificate of registration. The insurance cab card shall be continuously maintained at the motor carrier's principal business address. The insurance cab card must be valid for the same period as the motor carrier's certificate of registration and shall contain information regarding each vehicle registered by the motor carrier.(A) A current copy of the page of the insurance cab card on which the vehicle is shown shall be maintained in each vehicle listed, unless the motor carrier chooses to maintain a legible and accurate image of the insurance cab card on a wireless communication device in the vehicle or chooses to display such information on a wireless communication device by accessing the department's online system from the vehicle. The appropriate information concerning that vehicle shall be highlighted if the motor carrier chooses to maintain a hard copy of the insurance cab card or chooses to display an image of the insurance cab card on a wireless communication device in the vehicle. The insurance cab card or the display of such information on a wireless communications device shall serve as proof of insurance as long as the motor carrier has continuous insurance or financial responsibility on file with the department.(B) On demand by a department investigator or any other authorized government personnel, the driver shall present the highlighted page of the insurance cab card that is maintained in the vehicle or that is displayed on a wireless communication device in the vehicle. If the motor carrier chooses to display the information on a wireless communication device by accessing the department's online system, the driver shall locate the vehicle in the department's online system upon request by the department-certified inspector or other authorized government personnel.(C) The motor carrier shall notify the department in writing if it discontinues use of a registered motor vehicle before the expiration of its insurance cab card.(D) Any erasure or alteration of an insurance cab card that the department printed out for the motor carrier renders it void.(E) If an insurance cab card is lost, stolen, destroyed, or mutilated; if it becomes illegible; or if it otherwise needs to be replaced, the department shall print out a new insurance cab card at the request of the motor carrier. Motor carriers are authorized to print out a copy of a new insurance cab card using the department's online system.(F) The department is not responsible for a motor carrier's inability to access the insurance cab card using the department's online system.(d) Additional and replacement vehicles. A motor carrier required to obtain a certificate of registration under this section shall not operate additional vehicles unless the carrier identifies the vehicles on a form prescribed by the director and pays applicable fees as described in this subsection.(1) Additional vehicles. To add a vehicle, a motor carrier must pay a fee of $10 for each additional vehicle that the motor carrier proposes to operate under a seven-day, 90-day, or annual registration. To add a vehicle during the first year of a biennial registration, a motor carrier must pay a fee of $20 for each vehicle. To add a vehicle during the second year of a biennial registration, a motor carrier must pay a fee of $10 for each vehicle.(2) Replacement vehicles. No fee is required for a vehicle that is replacing a vehicle for which the fee was previously paid. Before the replacement vehicle is put into operation, the motor carrier must notify the department, identify the vehicle being taken out of service, and identify the replacement vehicle on a form prescribed by the department. A motor carrier registered under seven-day registration may not replace vehicles.(e) Supplement to original application. A motor carrier required to register under this section shall electronically file in the department's designated motor carrier registration system a supplemental application under the following circumstances.(1) Change of cargo. A registered motor carrier may not begin transporting household goods or hazardous materials unless the carrier submits a supplemental application to the department and shows the department evidence of insurance or financial responsibility in the amounts specified by §218.16.(2) Change of name. A motor carrier that changes its name shall file a supplemental application for registration no later than the effective date of the change. The motor carrier shall include evidence of insurance or financial responsibility in the new name and in the amounts specified by §218.16. A motor carrier that is a corporation must have its name change approved by the Texas Secretary of State before filing a supplemental application. A motor carrier incorporated outside the state of Texas must complete the name change under the law of its state of incorporation before filing a supplemental application.(3) Change of address or legal agent for service of process. A motor carrier shall file a supplemental application for any change of address or any change of its legal agent for service of process no later than the effective date of the change. The address most recently filed will be presumed conclusively to be the current address.(4) Change in principal officers and titles. A motor carrier that is a corporation shall file a supplemental application for any change in the principal officers and titles no later than the effective date of the change.(5) Conversion of corporate structure. A motor carrier that has successfully completed a corporate conversion involving a change in the name of the corporation shall file a supplemental application for registration and evidence of insurance or financial responsibility reflecting the new company name. The conversion must be approved by the Office of the Secretary of State before the supplemental application is filed.(6) Change in drug-testing consortium status. A motor carrier that changes consortium status shall file a supplemental application that includes the names of the persons operating the consortium.(7) Retaining a revoked or suspended certificate of registration number. A motor carrier may retain a prior certificate of registration number by:(A) filing a supplemental application to reregister instead of filing an original application; and(B) providing adequate evidence that the carrier has satisfactorily resolved the issue that gave rise to the suspension or revocation.(f) Change of ownership. A motor carrier must file an original application for registration when there is a corporate merger or a change in the ownership of a sole proprietorship or of a partnership.(g) Alternative vehicle registration for household goods agents. To avoid multiple registrations of a motor vehicle, a household goods agent's vehicles may be registered under the motor carrier's certificate of registration under this subsection.(1) The carrier must notify the department on a form approved by the director of its intent to register its agent's vehicles under this subsection.(2) When a carrier registers vehicles under this subsection, the carrier's certificate shall include all vehicles registered under its agent's certificates of registration. The carrier must register under its certificate of registration all vehicles operated on its behalf that do not appear on its agent's certificate of registration.(3) The department may send the carrier a copy of any notification sent to the agent concerning circumstances that could lead to denial, suspension, or revocation of the agent's certificate.(h) Substitute vehicles leased from leasing businesses. A registered motor carrier is not required to comply with the provisions of subsection (e) of this section for a substitute vehicle leased from a business registered under §218.18 of this title (relating to Short-term Lease and Substitute Vehicles). A motor carrier is not required to carry proof of registration as described in subsection (d) of this section if a copy of the lease agreement for the originally leased vehicle is carried in the cab of the temporary replacement vehicle.(i) Once the motor carrier obtains a certificate of registration, the motor carrier shall update its principal business address, mailing address, and email address in the department's online system within 30 days of a change to the information.</content><note type="source"><p>Source Note: The provisions of this §218.13 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective March 12, 2015, 40 TexReg 1104; amended to be effective February 1, 2017, 42 TexReg 323; amended to be effective July 2, 2017, 42 TexReg 3275; amended to be effective July 15, 2018, 43 TexReg 4560; amended to be effective January 2, 2025, 49 TexReg 10668.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c218/scB/s218.14"><num value="218.14">§218.14</num><heading>Expiration and Renewal of Motor Vehicle Registration</heading><content>(a) Expiration and renewal dates. (1) A motor carrier with annual or biennial registration shall be assigned a date for the expiration and renewal of its motor carrier registration according to the last digit of the carrier's certificate of registration number, as outlined in the following chart: Attached Graphic(2) 90-day certificates of registration are valid for 90 calendar days from the effective date. (3) Seven-day certificates of registration are valid for seven calendar days from the effective date. (b) Registration renewal. (1) At least 30 days before the expiration of registration, the department shall mail or send electronically a renewal notice to each registered motor carrier with annual or biennial registration. The notice shall be sent to the carrier's last known address according to the Motor Carrier Division's records. Failure to receive the notice does not relieve the registrant of the responsibility to renew. A supplement to an application for motor carrier registration renewal must be filed electronically in the department's designated motor carrier registration system and must: (A) supply any new information and documents required under §218.13(e) of this title (relating to Application for Motor Carrier Registration) if the information or documents have not previously been provided to the department; and (B) include a $10 fee for each vehicle that the carrier operates under an annual certificate of registration and a $20 fee for each vehicle that the carrier operates under a biennial certificate of registration. (2) Seven-day and 90-day registrations may not be renewed. (3) A motor carrier shall maintain continuous insurance or evidence of financial responsibility in an amount at least equal to the amount prescribed under §218.16 of this title (relating to Insurance Requirements). (4) The insurance cab card issued to a motor carrier is valid for the same period as the motor carrier's certificate of registration. (5) To renew registration after it has expired, a motor carrier must file a supplemental application electronically in the department's designated motor carrier registration system within 180 days after the registration expiration and must include the following information, documents, and fees:(A) identify its vehicles on a form prescribed by the director; (B) pay all vehicle fees; and (C) if current proof of insurance or evidence of financial responsibility is not on file with the department, comply with all insurance requirements. (c) Interstate motor carrier operating in intrastate commerce. (1) An interstate motor carrier registered under §218.17 of this title (relating to Unified Carrier Registration System) is not required to renew a certificate of registration issued under §218.11 of this title (relating to Motor Carrier Registration) except when the motor carrier is operating as a (A) non-charter bus carrier; (B) household goods carrier; or (C) recyclable materials or waste carrier. (2) If a motor carrier that registered under §218.17 does not maintain continuous motor carrier registration under §218.11, the motor carrier must file a supplemental application to reregister under §218.13 to operate on a public highway in this state. (3) The motor carrier must notify the department if the motor carrier is registered under UCR. The notification must be filed with the department on a form prescribed by the department. Once the department receives the notification, the department shall convert the motor carrier's certificate of registration to a non-expiring certificate of registration if the motor carrier qualifies for a non-expiring certificate of registration. (4) If the department issues the motor carrier a non-expiring certificate of registration, the motor carrier shall notify the department if the motor carrier is no longer registered under UCR or if the motor carrier operates as a non-charter bus carrier, household goods carrier, or recyclable materials or waste carrier. The notification shall be filed with the department on a form prescribed by the department.</content><note type="source"><p>Source Note: The provisions of this §218.14 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective March 12, 2015, 40 TexReg 1104; amended to be effective January 2, 2025, 49 TexReg 10668.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c218/scB/s218.15"><num value="218.15">§218.15</num><heading>Payment of Fees</heading><content>All fees provided for in this subchapter shall be paid to the department as provided by §209.23 of this title (relating to Methods of Payment).</content><note type="source"><p>Source Note: The provisions of this §218.15 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective March 12, 2014, 39 TexReg 1733.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c218/scB/s218.16"><num value="218.16">§218.16</num><heading>Insurance Requirements</heading><content>(a) Automobile liability insurance requirements. A motor carrier must file proof of automobile liability insurance with the department on a form acceptable to the director for each vehicle required to be registered under this subchapter. The motor carrier shall carry and maintain automobile liability insurance that is combined single limit liability for bodily injury to or death of an individual per occurrence, and loss or damage to property (excluding cargo) per occurrence. Extraneous information will not be considered acceptable, and the department may reject proof of automobile liability insurance if it is provided in a format that includes information beyond what is required. Minimum insurance levels are indicated in the following table. However, a motor carrier that is required to register with the department under Transportation Code, Chapter 643 and operates a foreign commercial motor vehicle must comply with the minimum level of financial responsibility in 49 C.F.R. Part 387 for such vehicle. The department adopts by reference 49 C.F.R. Part 387 regarding the required level of financial responsibility, including any amendments that became effective through July 1, 2024.Attached Graphic(b) Cargo insurance. Household goods carriers shall file and maintain with the department proof of financial responsibility.(1) The minimum limits of financial responsibility for a household goods carrier is $5,000 for loss or damage to a single shipper's cargo carried on any one motor vehicle.(2) The minimum limits of financial responsibility for a household goods carrier is $10,000 for aggregate loss or damage to multiple shippers' cargo carried on any one motor vehicle. In cases in which multiple shippers sustain damage and the aggregate amount of cargo damage is greater than the cargo insurance in force, the insurance company shall prorate the benefits among the shippers in relationship to the damage incurred by each shipper.(c) Workers' compensation or accidental insurance coverage. (1) A motor carrier that is required to register under this subchapter and whose primary business is transportation for compensation or hire between two or more municipalities shall provide workers' compensation for all its employees or accidental insurance coverage in the amounts prescribed in paragraph (2) of this subsection.(2) Accidental insurance coverage required by paragraph (1) of this subsection shall be at least in the following amounts:(A) $300,000 for medical expenses for at least 104 weeks; (B) $100,000 for accidental death and dismemberment;(C) 70 percent of the employee's pre-injury income for not less than 104 weeks when compensating for loss of income; and (D) $500 for the maximum weekly benefit. (d) Qualification of motor carrier as self-insured motor carrier. (1) General qualifications. A motor carrier may meet the insurance requirements of subsections (a) and (b) of this section by filing an application, in a form prescribed by the department, to qualify as a self-insured motor carrier. The application must include a true and accurate statement of the motor carrier's financial condition and other evidence that establishes its ability to satisfy obligations for bodily injury and property damage liability, or cargo liability, if applicable, without affecting the stability or permanency of its business. The department may accept USDOT evidence of the motor carrier's qualifications as a self-insured motor carrier.(2) Applicant guidelines. In addition to filing an application as prescribed by the department, an applicant for self-insured status must submit information and documents that will enable the department to determine the following information.(A) Applicant's net worth. An applicant's net worth must be adequate in relation to the size of its operations and the extent of its request for self-insurance authority. The applicant must demonstrate that it can and will maintain an adequate net worth. (B) Self-insurance program. An applicant must demonstrate that it has established and shall maintain a sound insurance program that will protect the public against all claims involving motor vehicles to the same extent as the minimum insurance levels applicable under this section. In determining whether an applicant is maintaining a sound insurance program, the department shall consider:(i) reserves; (ii) sinking funds; (iii) third-party financial guarantees; (iv) parent company or affiliate sureties; (v) excess insurance coverage; and (vi) other appropriate aspects of the applicant's program. (C) Safety program. An applicant must submit evidence of a current "satisfactory" safety rating from the Texas Department of Public Safety under Transportation Code, Chapter 644 and administrative rules adopted under Transportation Code, Chapter 644 or a "satisfactory" safety rating from FMCSA under federal law. An application by a motor carrier with less than a current "satisfactory" safety rating or no safety rating will be summarily denied.(3) Other securities or agreements. The department may accept an application for approval of a security or agreement if satisfied that the security or agreement offered will adequately protect the public. (4) Periodic reports. An approved self-insured motor carrier shall file with the department annual statements and any reports required by the department reflecting the motor carrier's financial condition and the status of its self-insurance program while the motor carrier is self-insured.(5) Duration and coverage of self-insured status. The department may approve an applicant as a self-insured motor carrier for any specific time or for an indefinite time. An approved self-insured status only applies to the type of cargo that the motor carrier reported to the department in the application for self-insured status, and is subject to any limitations, restrictions, or requirements that the department includes in any letter approving self-insured status.(6) Revocation of self-insured status. On receiving evidence that a self-insured motor carrier's financial condition has changed, that its safety program or record is inadequate, or that it is otherwise not in compliance with this subchapter, the department may at any time require the self-insured motor carrier to provide additional information and documents. On 10 days' notice from the department, the self-insured motor carrier shall provide the department with information and documents, as applicable, that demonstrate that it remains in compliance with the requirements of this section and of any active self-insurance requirements included in the department's approval letter. If a motor carrier fails to comply with the applicable requirements under this section, its self-insured status may be revoked. The revocation of self-insured status will be governed by Chapter 224 of this title (relating to Adjudicative Practice and Procedure) and Transportation Code, Chapter 643.(7) Appeal of denial of application for self-insured status. An applicant may appeal a denial of self-insured status by filing an appeal in accordance with §224.126 of this title (relating to Appeal of a Denial of Self-Insured Status).(e) Filing proof of insurance with the department. (1) Forms. (A) A motor carrier shall file and maintain proof of automobile liability insurance for all vehicles required to be registered under this subchapter at all times. This proof shall be filed on a form acceptable to the director. (B) A household goods carrier shall also file and maintain proof of cargo insurance for its cargo at all times. This proof shall be on a form acceptable to the director.(2) Filing proof of insurance. A motor carrier's insurer shall file and maintain proof of insurance on a form acceptable to the director: (A) at the time of the original application for a motor carrier certificate of registration; (B) on or before the cancellation date of the insurance coverage as described in subsection (f) of this section; (C) when the motor carrier changes insurers; (D) when the motor carrier asks to retain the certificate number of a revoked certificate of registration; (E) when the motor carrier changes its name under §218.13(e)(2) of this title (relating to Application for Motor Carrier Registration); (F) when the motor carrier, under subsection (a) of this section, changes the classification of the cargo being transported; and (G) when replacing another active insurance filing. (3) Filing fee. Each certificate of insurance or proof of financial responsibility filed with the department for the coverage required under this section must be accompanied by a nonrefundable filing fee of $100 when the carrier submits an original application and when the carrier submits a supplemental application when retaining a revoked certificate of registration number.(4) Acceptable filings. The motor carrier's insurer must file proof of insurance with the department in a form prescribed by the department and approved by an authorized agent of the insurer. (f) Cancellation of insurance coverage. Except when replaced by another acceptable form of insurance coverage or proof of financial responsibility approved by the department, insurance coverage may not be canceled or withdrawn until 30 days after notice has been given to the department by the insurer in a form approved by the department. Nonetheless, proof of insurance coverage for a seven-day or 90-day certificate of registration may be canceled by the insurer without 30 days' notice if the certificate of registration is expired, suspended, or revoked, and the insurer provides a cancellation date on the proof of insurance coverage.(g) Replacement insurance filing. The department shall consider a new insurance filing as the current record of financial responsibility required by this section if:(1) the new insurance filing is received by the department; and (2) a cancellation notice has not been received for previous insurance filings. (h) Insolvency of insurance carrier. An affidavit required by Transportation Code, §643.105 must be executed by an owner, partner, or officer of the motor carrier.</content><note type="source"><p>Source Note: The provisions of this §218.16 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective March 12, 2015, 40 TexReg 1104; amended to be effective June 1, 2024, 49 TexReg 2753; amended to be effective January 2, 2025, 49 TexReg 10668.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c218/scB/s218.17"><num value="218.17">§218.17</num><heading>Unified Carrier Registration System</heading><content>(a) The State of Texas, through the department, shall participate in the federal motor carrier registration program under the Unified Carrier Registration System plan and agreement.(b) An interstate motor carrier operating in Texas, as well as a broker, freight forwarder, motor private carrier of property, and leasing company, must register and comply with the provisions of the Unified Carrier Registration System as required by 49 U.S.C. §14504a and the UCR plan and agreement.(c) The department adopts by reference the July 14, 2016, version of the Unified Carrier Registration Agreement. A copy of the agreement is available for review in the Motor Carrier Division, Texas Department of Motor Vehicles.(d) An application for UCR must be filed online as prescribed by the department, or an application must be filed with the department on a form prescribed by the department.</content><note type="source"><p>Source Note: The provisions of this §218.17 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective March 12, 2015, 40 TexReg 1104; amended to be effective July 2, 2017, 42 TexReg 3275.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c218/scB/s218.18"><num value="218.18">§218.18</num><heading>Short-term Lease and Substitute Vehicles</heading><content>(a) Registration. A short-term lease vehicle registered under this section is exempt from the registration requirements described in §218.13 of this title (relating to Application for Motor Carrier Registration) while leased to a registered motor carrier.(1) Application. A leasing business registering vehicles under this section shall file an application on a form prescribed by the director.(2) Annual report. The operation of a short-term lease vehicle shall be reported to the department on a form prescribed by the director not later than April 1 of each calendar year for the previous calendar year's operations. The report must identify the number of short-term lease vehicles that would otherwise be subject to the registration requirements of this subchapter.(3) Fees. An annual registration fee of $10 per vehicle operated must be paid at the time the report is filed under paragraph (2) of this subsection.(4) Cancellation, expiration, and revocation.(A) A leasing business must make a written request for cancellation of registration.(B) A leasing business registration expires on April 30 of each year unless the leasing business reports by April 1 the actual number of vehicles requiring registration operated in the previous calendar year.(C) The department may suspend or revoke a leasing business registration under §218.72 of this title (relating to Administrative Sanctions).(b) Proof of contingency liability insurance. A leasing business registering a vehicle under this section must file and maintain proof of liability insurance on a form prescribed by the director as required by §218.16 of this title (relating to Insurance Requirements).(1) Filings. A leasing business shall file proof of insurance at the time of its initial registration and whenever it changes insurance carriers in accordance with §218.16.(2) Filing fee. Each proof of insurance filing under this section shall be accompanied by a nonrefundable $100 filing fee.(3) Cancellation of insurance coverage. Any cancellation of insurance filed under this section must comply with the requirements set out in §218.16.(c) Substitute vehicles. A registered motor carrier is not required to comply with the provisions of §218.13(d) for a vehicle that is leased from a leasing business and that is used as a temporary replacement for a vehicle that has been taken out of service for maintenance, repair, or any other reason causing the temporary unavailability of the permanent vehicle.(d) Identification. A registered motor carrier is not required to carry proof of registration, as required by §218.13(c)(2), in a vehicle leased from a registered leasing business under a short-term lease. A copy of the lease agreement or of the lease for the originally leased vehicle, in the case of a temporary replacement vehicle, must be carried in the cab of the vehicle.</content><note type="source"><p>Source Note: The provisions of this §218.18 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective March 12, 2015, 40 TexReg 1104; amended to be effective January 2, 2025, 49 TexReg 10668.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c218/scC"><num value="C">SUBCHAPTER C</num><heading>RECORDS AND INSPECTIONS</heading><section identifier="/us/state/tx/tac/t43/p10/c218/scC/s218.30"><num value="218.30">§218.30</num><heading>Purpose</heading><content>The purpose of this subchapter is to advise motor carriers registered under Subchapter B of this chapter (relating to Motor Carrier Registration) of the information and records they are required to maintain, where the records must be maintained, how long the records must be maintained, and department procedures for examining records and inspecting a motor carrier's premises.</content><note type="source"><p>Source Note: The provisions of this §218.30 adopted to be effective February 4, 2010, 35 TexReg 663.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c218/scC/s218.31"><num value="218.31">§218.31</num><heading>Investigations and Inspections of Motor Carrier Records</heading><content>(a) Certification of department investigators. In accordance with Transportation Code, Chapter 643, the executive director or designee will designate department employees as certified for the purpose of entering the premises of a motor carrier to copy or verify documents the motor carrier is required to maintain according to this chapter. The executive director or designee shall provide credentials to department investigators identifying them as department employees and as certified to conduct investigations and inspect records on behalf of the department.(b) Investigations and Inspections.(1) A motor carrier shall grant a department investigator certified under this section access to the carrier's premises to conduct inspections or investigations of alleged violations of this chapter and of Transportation Code, Chapters 643 and 645. The motor carrier shall provide adequate work space with reasonable working conditions and allow the department investigators to copy and verify records and documents the motor carrier is required to maintain according to this chapter.(2) The department investigator may conduct inspections and investigations during normal business hours unless mutual arrangements have been made otherwise.(3) The department investigator shall present his or her credentials to the motor carrier prior to conducting an investigation or inspection.(c) Access. A motor carrier shall provide access to requested records and documents at:(1) the motor carrier's principal business address; or(2) a location agreed to by the department and the motor carrier.(d) Designation of meeting time. If the motor carrier's normal business hours do not provide the access necessary for the investigator to conduct the investigation and the parties cannot reach an agreement as to a time to meet to access the records, the department shall designate the time of the meeting and provide written notice via the business address, facsimile number, or email address on file with the department.</content><note type="source"><p>Source Note: The provisions of this §218.31 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective March 12, 2015, 40 TexReg 1104; amended to be effective February 1, 2017, 42 TexReg 323; amended to be effective January 2, 2025, 49 TexReg 10668.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c218/scC/s218.32"><num value="218.32">§218.32</num><heading>Motor Carrier Records</heading><content>(a) General records to be maintained. Every motor carrier shall prepare and maintain in a complete and accurate manner:(1) operational logs, insurance certificates, documents to verify the carrier's operations, and proof of registration fee payments;(2) records of services performed;(3) all certificate of title documents, weight tickets, permits for oversize or overweight vehicles and loads, dispatch records, or any other document that would verify the operations of the vehicle to determine the actual weight, insurance coverage, size, and/or capacity of the vehicle; and(4) the original certificate of registration and registration listing, if applicable.(b) Proof of motor carrier registration.(1) Except as provided in paragraph (2) of this subsection and in §218.13(c)(2) of this title (relating to Application for Motor Carrier Registration), every motor carrier shall maintain a copy of its current registration listing in the cab of each registered vehicle at all times. A motor carrier shall make available to a department investigator or any law enforcement officer a copy of the current registration listing upon request.(2) A registered motor carrier is not required to carry proof of registration in a vehicle leased from a leasing business that is registered under §218.18 of this title (relating to Short-term Lease and Substitute Vehicles), when leased as a temporary replacement due to maintenance, repair, or other unavailability of the originally leased vehicle. A copy of the lease agreement, or the lease for the originally leased vehicle, in the case of a substitute vehicle, must be carried in the cab of the vehicle.(3) A motor carrier is not required to carry proof of compliance with UCR or the UCR plan or agreement in its vehicle.(c) Location of files. Except as provided in this subsection, every motor carrier shall maintain at a principal business address in Texas all records and information required by the department.(1) Texas motor carriers. If a motor carrier wishes to maintain records at a specific location other than its principal business address in Texas, the motor carrier shall make a written request to the director. A motor carrier may not begin maintaining records at an alternate location until the request is approved by the director.(2) Out-of-state motor carriers. A motor carrier whose principal business address is located outside the state of Texas shall maintain records required under this section at its business location in Texas. Alternatively, a motor carrier may maintain such records at a specific out-of-state facility if the carrier reimburses the department for necessary travel expenses and per diem for any inspections or investigations conducted in accordance with §218.31 of this title (relating to Investigations and Inspections of Motor Carrier Records).(3) Regional office or driver work-reporting location. All records and documents required by this subchapter which are maintained at a regional office or driver work-reporting location, whether or not maintained in compliance with paragraphs (1) and (2) of this subsection, shall be made available for inspection upon request at the motor carrier's principal business address or other location specified by the department within 48 hours after a request is made. Saturdays, Sundays, and federal and state holidays are excluded from the computation of the 48-hour period of time.(d) Preservation and destruction of records. All books and records generated by a motor carrier, except driver's time cards and logs, must be maintained for not less than two years at the motor carrier's principal business address. A motor carrier must maintain driver's time cards and logs for not less than six months at the carrier's principal business address.</content><note type="source"><p>Source Note: The provisions of this §218.32 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective March 12, 2015, 40 TexReg 1104; amended to be effective February 1, 2017, 42 TexReg 323; amended to be effective January 2, 2025, 49 TexReg 10668.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c218/scC/s218.33"><num value="218.33">§218.33</num><heading>Enforcement</heading><content>A motor carrier who fails or refuses to permit an inspection, fails to maintain and make available the requisite records, or otherwise fails to comply with the requirements of this subchapter commits a violation subject to enforcement under Chapter 224 of this title (relating to Adjudicative Practice and Procedure).</content><note type="source"><p>Source Note: The provisions of this §218.33 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective March 12, 2015, 40 TexReg 1104; amended to be effective June 1, 2024, 49 TexReg 2753.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c218/scD"><num value="D">SUBCHAPTER D</num><heading>MOTOR TRANSPORTATION BROKERS</heading><section identifier="/us/state/tx/tac/t43/p10/c218/scD/s218.41"><num value="218.41">§218.41</num><heading>Bond</heading><content>(a) Filing. A motor transportation broker shall file a bond with the department before it may act as a motor transportation broker.(b) Conditions of bond.(1) The bond shall be:(A) in an amount of at least $10,000;(B) executed by a bonding company authorized to do business in the state of Texas; and(C) payable to the State of Texas or a person to whom the motor transportation broker provides services.(2) The bond shall be conditioned upon:(A) the faithful performance of the contracts or agreements of transportation by the motor carrier or motor carriers for whom the motor transportation broker is acting, and which were negotiated by the broker; and(B) the honest and faithful performance by the motor transportation broker in that capacity.(3) The bond shall provide that all defenses available to the motor carrier shall be available to the principal and surety, but no condition or provision of the bond shall otherwise affect the right of the person to whom the motor transportation broker provides services to collect all damages to which the person may be entitled at law.(c) Expiration or cancellation of bond. The bond shall not expire or be subject to cancellation until the 30th day after written notice of expiration or cancellation has been served on the principal and the department, either personally or by certified mail. Unless the principal files a new bond in compliance with the requirements of this section on or before the expiration of the 30-day period, the person may not act as a motor transportation broker.</content><note type="source"><p>Source Note: The provisions of this §218.41 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective March 12, 2015, 40 TexReg 1104; amended to be effective January 2, 2025, 49 TexReg 10668.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c218/scD/s218.42"><num value="218.42">§218.42</num><heading>Fees</heading><content>(a) Bond review fee. Upon submission of a bond to the department, the motor transportation broker shall include a bond review fee of $5, payable as described in subsection (b) of this section.(b) Payment of fees.(1) Non-refundable. All fees paid to the department as provided for in this section are non-refundable.(2) Payment methods. All fees shall be paid to the department as provided by §209.23 of this title (relating to Methods of Payment).</content><note type="source"><p>Source Note: The provisions of this §218.42 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective March 12, 2014, 39 TexReg 1733; amended to be effective March 12, 2015, 40 TexReg 1104.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c218/scE"><num value="E">SUBCHAPTER E</num><heading>CONSUMER PROTECTION</heading><section identifier="/us/state/tx/tac/t43/p10/c218/scE/s218.50"><num value="218.50">§218.50</num><heading>Purpose and Scope</heading><content>This subchapter sets forth the department's policies and procedures to protect shippers of household goods against deceptive or unfair practices and unreasonably hazardous activities on the part of a household goods carrier. This subchapter also provides a mediation process administered by the department for claims on household goods shipments. Shipments of household goods transported subject to a United States Government Bill of Lading or to a written agreement with the United States Department of Defense are exempt from §§218.53 - 218.62 of this subchapter.</content><note type="source"><p>Source Note: The provisions of this §218.50 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective April 14, 2013, 38 TexReg 2241.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c218/scE/s218.51"><num value="218.51">§218.51</num><heading>Household Goods Agents</heading><content>(a) Appointment of household goods agent. A household goods carrier may appoint a household goods agent to represent the household goods carrier's business interests in Texas.(b) Liability. A household goods carrier is responsible for the acts, delinquencies, omissions, and conduct of each of its household goods agents while acting on behalf of the household goods carrier.(c) Agent filing. A household goods carrier shall file with the department, on a form approved by the director, a current, accurate list of its household goods agents and their addresses.(1) A household goods carrier using alternative vehicle registration under §218.13(g) of this title (relating to Application for Motor Carrier Registration) shall notify the department 30 days prior to the creation or termination of an agency agreement.(2) A household goods carrier not using the alternative vehicle registration shall notify the department on or before January 1, April 1, July 1, and October 1, of each year of the creation or termination of an agency agreement.(d) Use of household goods carrier's name. When representing a household goods carrier, the agent:(1) shall operate under the name of the represented household goods carrier, as shown on the certificate of registration issued by the department;(2) shall use only the moving services contract of the represented household goods carrier; and(3) may include its name, as listed on the household goods carrier's agent filing, on the carrier's advertisements.(e) Availability of tariff records. A household goods carrier shall require each of its household goods agents to keep copies of the applicable tariff in the household goods agent's office and open to public inspection.(f) Shipping records maintained. A household goods agent shall keep a record of every shipment that it sells or handles for at least two years after the date of shipment.(g) Agency agreements. An agreement between a household goods carrier and its household goods agent shall be in writing and signed by the household goods carrier and the household goods agent, and copies of any agreement must be kept in the files of the household goods carrier for a period of not less than two years following the date of termination of each agreement.</content><note type="source"><p>Source Note: The provisions of this §218.51 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective March 12, 2015, 40 TexReg 1104.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c218/scE/s218.52"><num value="218.52">§218.52</num><heading>Advertising</heading><content>(a) False, misleading, or deceptive advertisements. A household goods carrier and its household goods agents may not use any false, misleading, or deceptive advertisements.(b) Print advertisements. A household goods carrier shall include the following information on all print advertisements primarily addressing a local market within this state:(1) the full business name or assumed name of the household goods carrier as shown on the certificate of registration;(2) the street address of the household goods carrier's or its agent's place of business in this state; and(3) the household goods carrier's certificate of registration number in the following form, "TxDMV No. ________".(c) Use of household goods agent's name. A household goods carrier may include the name of its household goods agent as filed with the department in its print advertisements.(d) Websites. A household goods carrier shall provide the following information on the home page or, in the case of a national household goods carrier, the page specific to Texas intrastate household goods operations, on any website operated by or for the household goods carrier:(1) the household goods carrier's name;(2) department's toll-free consumer help line as listed on the department's website; and(3) the household goods carrier's certificate of registration number in the following form, "TxDMV No. ______".(e) Identifying markings on household goods carrier's vehicles.(1) A household goods carrier or its agent shall display the following information on both sides of the power unit, including power units operated under a short-term lease:(A) the business name or assumed name of the household goods carrier as it appears on the motor carrier certificate of registration; and(B) the household goods carrier's registration number as it appears on the motor carrier certificate of registration in the following form, "TxDMV No. _______".(2) The markings required by this subsection shall have clearly legible letters and numbers at least two inches in height.(3) This subsection does not apply to vehicles required to comply with Transportation Code, Chapter 642.</content><note type="source"><p>Source Note: The provisions of this §218.52 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective March 12, 2015, 40 TexReg 1104; amended to be effective February 1, 2017, 42 TexReg 323.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c218/scE/s218.53"><num value="218.53">§218.53</num><heading>Household Goods Carrier Cargo Liability</heading><content>Pursuant to Transportation Code, §643.152, the voluntary standard for uniform cargo liability for a household goods carrier can be found in 49 C.F.R. §375.201, which the department adopts by reference, including any amendments that became effective through July 1, 2024.</content><note type="source"><p>Source Note: The provisions of this §218.53 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective February 1, 2017, 42 TexReg 323; amended to be effective January 2, 2025, 49 TexReg 10668.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c218/scE/s218.54"><num value="218.54">§218.54</num><heading>Selling Insurance to Shippers</heading><content>(a) Type of insurance. A household goods carrier and its representatives may sell, or offer to sell, or procure insurance for a shipper for transported or stored property. The insurance policy must cover loss or damage in excess of the household goods carrier's liability, if any, to which the parties agree in the moving services contract, including a pre-existing transportation contract described by §218.57(d) of this title (Relating to Moving Services Contract).(b) Policy issuance. A copy of the policy or other appropriate evidence of purchased insurance must be issued to the shipper before the shipment is loaded.(c) Policy language. Policies or other appropriate evidence of purchased insurance must be written in a clear and concise manner, specifying the nature and extent of coverage including any deductibles. The policies or other appropriate evidence of purchased insurance must also clearly indicate:(1) the name, address, and telephone number of the insurance company;(2) the policy number; and(3) a statement of whether claims are to be filed with the insurance company or with the household goods carrier.(d) Subject to Full Liability. If the shipper purchased insurance from the household goods carrier and the household goods carrier does not obtain the insurance policy or other appropriate evidence of purchased insurance for the shipper, the household goods carrier shall be subject to full liability for all of the loss or damage caused by the household goods carrier.</content><note type="source"><p>Source Note: The provisions of this §218.54 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective March 12, 2015, 40 TexReg 1104; amended to be effective January 2, 2025, 49 TexReg 10668.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c218/scE/s218.55"><num value="218.55">§218.55</num><heading>Information for Shippers</heading><content>(a) When the household goods carrier provides the shipper with an original written proposal, as required in §218.56 of this title (relating to Proposals and Estimates for Moving Services), the household goods carrier shall also provide a copy of the information sheet entitled, Your Rights and Responsibilities When You Move in Texas as prescribed by the director.(b) The household goods carrier may duplicate the department's form provided the exact text is reproduced in a legible manner in at least 10 point type font. No additional information that interferes with or alters the text may be added to the form.</content><note type="source"><p>Source Note: The provisions of this §218.55 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective March 12, 2015, 40 TexReg 1104.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c218/scE/s218.56"><num value="218.56">§218.56</num><heading>Proposals and Estimates for Moving Services</heading><content>(a) Written proposals. Prior to loading, a household goods carrier shall provide a written proposal, such as a bid or quote, to the shipper. A proposal shall state the maximum amount the shipper could be required to pay for the listed transportation and listed related services. This section does not apply if a pre-existing transportation contract sets out the maximum amount the shipper could be required to pay for the transportation services. Pre-existing transportation contracts include, but are not limited to, corporate contracts for the relocation of multiple employees.(1) A proposal must contain the name and registration number of the household goods carrier as they appear on the motor carrier certificate of registration. If a proposal is prepared by the household goods carrier's agent, it shall include the name of the agent as listed on the carrier's agent filing with the department. A proposal shall also include the street address of the household goods carrier or its agent.(2) A proposal must clearly and conspicuously state whether it is a binding or not-to-exceed proposal.(3) A proposal must completely describe the shipment and all services to be provided. A proposal must state, "This proposal is for listed items and services only. Additional items and services may result in additional costs."(4) A proposal must specifically state when the shipper will be required to pay the transportation charges, such as if payment must be made before unloading at the final destination. A proposal must also state what form of payment is acceptable, such as a cashier's check.(5) A proposal must conspicuously state the household goods carrier's liability, if any, for loss or damage to cargo.(b) Hourly rates. If a proposal is based on an hourly rate, then it is not required to provide the number of hours necessary to perform the transportation and related services. However, if the number of hours is not included in a proposal, then the carrier must secure a written acknowledgment from the shipper indicating the proposal is complete without the number of hours. Also, the proposal shall state the maximum amount the shipper could be required to pay for the listed transportation and listed related services.(c) Proposal as addendum. If a proposal is accepted by the shipper and the carrier transports the shipment, then the proposal is considered an addendum to the moving services contract.(d) Additional items and services. If the household goods carrier determines additional items are to be transported and/or additional services are required to load, transport, or deliver the shipment, then before the carrier transports the additional items or performs the additional services the carrier and shipper must agree, in writing, to:(1) allow the original proposal to remain in effect;(2) amend the original proposal or moving services contract; or(3) substitute a new proposal for the original.(e) Amendments and storage.(1) An amendment to an original proposal or moving services contract, as allowed in subsection (d) of this section, must:(A) be signed and dated by the household goods carrier and shipper; and(B) clearly and specifically state the amended maximum price for the transportation of the household goods.(2) If the household goods carrier fails to amend or substitute an original proposal as required by this subsection and subsection (d) of this section, only the charges stated on the original proposal for moving services may be assessed on the moving services contract. The carrier shall not attempt to amend or substitute the proposal to add items or services after the items or services have been provided or performed.(3) If through no fault of the carrier, the shipment cannot be delivered during the agreed delivery period, then the household goods carrier may place the shipment in storage and assess fees relating to storage to the extent authorized in the moving services contract, without a written agreement with the shipper to amend or substitute the original proposal.(f) Combination document. A proposal required by subsection (a) of this section may be combined with other shipping documents, such as the moving services contract, into a single document. If a proposal is combined with other shipping documents, the purpose of each signature line on the combination document must be clearly indicated. Each signature is independent and shall not be construed as an agreement to all portions and terms of the combination document.(g) Telephone estimates. A household goods carrier may provide an estimate for the transportation services by telephone. If the household goods carrier provides the estimate by telephone, then the carrier must also furnish a written proposal for the transportation services to the shipper prior to loading the shipment.(h) Written document. To the extent this section requires a document or communication to be in writing, the document or communication may be in a printed or electronic format.(i) Signatures. The signatures of the shipper and household goods carrier, as required by this section, may be transmitted by facsimile or other electronic means.</content><note type="source"><p>Source Note: The provisions of this §218.56 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective March 12, 2015, 40 TexReg 1104; amended to be effective February 1, 2017, 42 TexReg 323; amended to be effective July 2, 2017, 42 TexReg 3275; amended to be effective January 2, 2025, 49 TexReg 10668.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c218/scE/s218.57"><num value="218.57">§218.57</num><heading>Moving Services Contract</heading><content>(a) Requirements. A household goods carrier must give a copy of the moving services contract to the shipper prior to the loading of the shipment. This copy must include:(1) the name and motor carrier registration number of the household goods carrier as they appear on the motor carrier certificate of registration, and the address and telephone number of the household goods carrier or the household goods agent that prepared the moving services contract;(2) the date the shipment is loaded and a description of the shipment as household goods;(3) the name and address of the shipper;(4) the addresses of the:(A) origin;(B) destination, if known; and(C) any stops in transit, if known;(5) the moving services to be performed;(6) a clear and concise disclosure of the limits of the household goods carrier's liability for loss or damage to a shipper's household goods; however, the moving services contract must expressly state if the household goods carrier's liability is $0.00 for loss or damage to a shipper's household goods;(7) a clear and concise disclosure of any costs associated with an agreement regarding the liability of the household goods carrier for loss or damage to a shipper's household goods, and a statement that any agreement regarding the household goods carrier's liability is something different than an insurance policy;(8) a clear notice of the amount of any insurance for property that is transported or stored, the amount of insurance premiums, and the insurance policy number, if insurance for the shipment was purchased from or through the household goods carrier;(9) a clear and conspicuous statement that this document is a contract for moving services and is subject to the terms and conditions throughout the document, including any attachments;(10) a description of whether the proposal is a binding or not-to-exceed proposal, and the maximum price the shipper could be required to pay for the services listed;(11) a statement authorizing performance of the listed services, signed and dated by the household goods carrier and the shipper;(12) a statement signed and dated by the shipper authorizing delivery of household goods at a destination where the shipper is not present if the shipper intends for the household goods carrier to deliver to a site where the shipper will not be present; and(13) the following language regarding claims: "The process for filing a claim against a household goods carrier and the claims procedures are provided on the website of the Texas Department of Motor Vehicles (department), as well as in the department's administrative rule, 43 Texas Administrative Code §218.61 (relating to Claims). A shipper must file any claims against a household goods carrier within 90 days of the delivery of the shipment to the final destination, or after a reasonable time for delivery has elapsed in the case of failure to make delivery."(b) Delivery. A household goods carrier must give a completed copy of the moving services contract to the shipper upon delivery of the shipment. The household goods carrier must release the household goods to the shipper at destination if the shipper pays the maximum price listed on the moving services contract. Except as provided by subsection (c) of this section, the moving services contract shall be signed and dated by the household goods carrier and the shipper confirming the shipment has been delivered. This signature only confirms delivery of the shipment. Except as provided in subsection (e) of this section, this copy must include the information listed in subsection (a) of this section and:(1) the total charges for the shipment and the specific nature of each charge, including the method used to calculate the minimum and total charges if the shipment was not transported based on a binding proposal;(2) an explanation of all additional moving services provided in accordance with §218.56(d) of this title (relating to Proposals and Estimates for Moving Services); and(3) the addresses of the origin, destination, and any stops in transit if not previously provided on the moving services contract at the origin.(c) Delivery to a destination where the shipper is not present. If a shipper authorizes the household goods carrier to deliver household goods to a destination where the shipper is not present, as allowed in subsection (a)(12) of this section, the moving services contract need not be signed and dated by the shipper at the time of delivery.(d) Pre-existing transportation contracts. A household goods carrier is not required to comply with subsection (b)(1) and (2) of this section if a pre-existing transportation contract sets out the maximum amount the shipper could be required to pay for the transportation services. Pre-existing transportation contracts include, but are not limited to, corporate contracts for the relocation of multiple employees.(e) Copies. To the extent this section requires a copy of a document or a written document, the document may be in a printed or electronic format.(f) Signatures. The signatures of the shipper and the household goods carrier, as required by this section, may be transmitted by facsimile or other electronic means. These signatures must be separate from any signatures required by the household goods carrier such as the acknowledgment of the statement of value of the shipment.</content><note type="source"><p>Source Note: The provisions of this §218.57 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective March 12, 2015, 40 TexReg 1104; amended to be effective July 2, 2017, 42 TexReg 3275; amended to be effective January 2, 2025, 49 TexReg 10668.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c218/scE/s218.59"><num value="218.59">§218.59</num><heading>Inventories</heading><content>(a) Applicability. A household goods carrier has the option of preparing an inventory of the shipment.(b) Inventories prepared by the carrier. A household goods carrier may prepare a complete or partial inventory for its own use without an agreement between the carrier and shipper. The household goods carrier may not charge a fee for preparing an inventory for its own use.(c) Inventories prepared by agreement between the carrier and shipper. If the household goods carrier and shipper agree to the preparation of an inventory by the carrier, the carrier may assess a fee for this service.(1) Information contained in the inventory.(A) The inventory must contain the shipper's name. The inventory may include the name of the household goods carrier's agent as it is listed on the carrier's agent filing with the department.(B) The inventory must describe each item in the shipment, unless the parties agree to a partial inventory. The shipper and the carrier may agree regarding the amount of detail that must be included in the inventory.(C) If any charges are based on the size of the containers, the inventory must list the quantity and size of each container.(D) The inventory must describe and use the symbol "CP" for all containers packed or crated by the carrier. Additionally, the inventory must describe and use the symbol "PBO" for all containers packed or crated by the shipper.(E) The inventory must include a key for any abbreviation used to describe the condition of the items.(2) Inventory at origin. The inventory shall be signed by the household goods carrier and the shipper or shipper's agent at origin. The inventory must include a conspicuous statement that the shipper's signature is affirming the contents and condition of the items in the shipment.(3) Inventory at destination. The carrier and the shipper or shipper's agent shall sign the inventory at destination. A legible copy of the inventory shall be given to the shipper. Signing the inventory does not waive a claimant's right to file a claim.(4) Combination document. The inventory may be combined with other shipping documents, such as the moving services contract, into a single document. If the inventory is combined with other shipping documents, the purpose of each signature line on the combination document must be clearly indicated. Each signature is independent and shall not be construed as an agreement to all portions and terms of the combination document.(d) Electronic format. An inventory may be prepared in an electronic format.</content><note type="source"><p>Source Note: The provisions of this §218.59 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective February 1, 2017, 42 TexReg 323.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c218/scE/s218.60"><num value="218.60">§218.60</num><heading>Determination of Weights</heading><content>(a) Shipment weights. A carrier transporting household goods on a not-to-exceed proposal using shipment weight as a factor in determining transportation charges shall determine the weight of each shipment transported prior to the assessment of any charges. Except as provided in this section, the weight shall be obtained on a certified scale.(b) Weighing procedures.(1) The weight of each shipment shall be obtained by determining the difference between the:(A) tare weight of the vehicle on which the shipment is to be loaded prior to the loading and the gross weight of the same vehicle after the shipment is loaded; or(B) gross weight of the vehicle with the shipment loaded and the tare weight of the same vehicle after the shipment is unloaded.(2) At the time of both weighings, all pads, dollies, handtrucks, ramps, and other equipment required in the transportation of a shipment shall be on the vehicle. Neither the driver nor any other person shall be on the vehicle at the time of the weighings.(3) The fuel tanks on the vehicle shall be full at the time of each weighing or, in the alternative, no fuel may be added between the two weighings when the tare weighing is the first weighing performed.(4) The trailer of a tractor-trailer vehicle combination may be detached from the tractor and weighed separately at each weighing providing the length of the scale platform is adequate to only accommodate and support the entire trailer at one time.(5) Shipments weighing 1,000 pounds or less may be weighed on a certified platform or warehouse scale prior to loading for transportation or subsequent to unloading.(6) The net weight of shipments transported in containers shall be the difference between the tare weight of the container, including all pads, blocking and bracing used or to be used in the transportation of the shipment, and the gross weight of the container with the shipment loaded.(7) The shipper or any other person responsible for the payment of the freight charges shall have the right to observe all weighings of the shipment. The household goods carrier must advise the shipper or any other person entitled to observe the weighings of the time and specific location where each weighing will be performed and must give that person a reasonable opportunity to be present to observe the weighings. Waiver by a shipper of the right to observe any weighing or reweighing is permitted and does not affect any rights of the shipper under this subchapter.(c) Weight tickets.(1) The carrier shall obtain a separate weight ticket for each weighing required under this subsection and the ticket shall be carried on the vehicle. However, if both weighings are performed on the same scale, one weight ticket may be used to record both weighings. Every weight ticket shall be signed by the person performing the weighing. Weight tickets or copies of weight tickets in an electronic format shall be maintained with the carrier's copy of moving services contract covering the shipment. Weight tickets shall contain:(A) the complete name and location of the scale;(B) the date of each weighing;(C) identification of the weight entries as being tare, gross, or net weights;(D) the company or carrier identification of the vehicle; and(E) the last name of the shipper as it appears on the moving services contract.(2) This ticket must be retained by the carrier as part of the records for the shipment. A bill presented to collect any shipment charges dependent on the weight transported must be accompanied by true copies of all weight tickets in either a printed or electronic format obtained in the determination of the shipment weight.(d) Reweighing of shipments. Before unloading a shipment weighed at origin and after the shipper is informed of the billing weight and total charges, the shipper may request a reweigh. The charges shall be based on the reweigh weight.(e) Stored shipments. If a shipment is weighed and placed in storage in transit or delivered out of storage to destination by another vehicle, then no additional weighing shall be required unless the shipment has been decreased or increased in weight subsequent to the original weighing of the shipment.(f) Constructive weight. Where no certified scale is available at origin, at a point en route, or at destination, a constructive weight, based on seven pounds per cubic foot of properly loaded space may be used to determine the weight of the household goods shipment.</content><note type="source"><p>Source Note: The provisions of this §218.60 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective February 1, 2017, 42 TexReg 323.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c218/scE/s218.61"><num value="218.61">§218.61</num><heading>Claims</heading><content>(a) Filing of claims. A household goods carrier must act on all claims filed by a shipper on shipments of household goods according to this section.(1) A claim must be filed in writing or by electronic format with the household goods carrier or the household goods carrier's agent whose name appears on the moving services contract. A claim is considered filed on the date the claim is received by the household goods carrier or its agent. A shipper must file a claim either in writing or by electronic format within 90 days:(A) of delivery of the shipment to the final destination; or(B) after a reasonable time for delivery has elapsed in the case of failure to make delivery.(2) The claim must include enough facts to identify the shipment. The claim must also describe the type of claim and request a specific type of remedy.(3) Shipping documents may be used as evidence to support a claim, but cannot be substituted for a written claim.(4) A claim submitted by someone other than the owner of the household goods must be accompanied by a written explanation of the claimant's interest in the claim.(b) Acknowledgment and disposition of filed claims.(1) A household goods carrier shall send an acknowledgment of the claim either in writing or by electronic format to the claimant within 23 days after receipt of the claim by the carrier or its agent.(A) The claim acknowledgment shall include the statement, "Household goods carriers have 90 days from receipt of a claim to pay, decline to pay, or make a firm settlement offer, in writing, to a claimant. Questions or complaints concerning the household goods carrier's claims handling should be directed to the Texas Department of Motor Vehicles (TxDMV), Enforcement Division, via the toll-free consumer helpline as listed on the department's website. Additionally, a claimant has the right to request mediation from TxDMV within 35 days after any portion of the claim is denied by the carrier, the carrier makes a firm settlement offer that is not acceptable to the claimant, or 90 days has elapsed since the carrier received the claim and the claim has not been resolved."(B) The household goods carrier is not required to issue the acknowledgment letter prescribed in this subsection if the claim has been resolved within 23 days after receipt of the claim. However, the household goods carrier has the burden of proof regarding the resolution of the claim.(2) After a thorough investigation of the facts, the household goods carrier shall pay, decline to pay, or make a firm settlement offer in writing to the claimant within 90 days after receipt of the claim by the household goods carrier or its household goods agent. The settlement offer or denial shall state, "A claimant has the right to seek mediation through the Texas Department of Motor Vehicles (TxDMV) within 35 days after any portion of the claim is denied by the carrier, the carrier makes a firm settlement offer that is not acceptable to the claimant, or 90 days has elapsed since the carrier received the claim and the claim has not been resolved."(3) A household goods carrier must provide a copy of the shipping documents to the shipper's insurance company upon request. The carrier may assess a reasonable fee for this service.(c) Documenting loss or damage to household goods.(1) Inspection. If a loss or damage claim is filed and the household goods carrier wishes to inspect the items, the carrier must complete any inspection as soon as possible, but no later than 30 calendar days, after receipt of the claim.(2) Payment of shipping charges. Payment of shipping charges and payment of claims shall be handled separately, and one shall not be used to offset the other unless otherwise agreed upon by both the household goods carrier and claimant.(d) Claim records. A household goods carrier shall maintain a record of every claim filed. Claim records shall be retained for two years as required by §218.32 of this title (relating to Motor Carrier Records). At a minimum, the following information on each claim shall be maintained in a systematic, orderly and easily retrievable manner:(1) claim number (if assigned), date received, and amount of money or the requested remedy;(2) number (if assigned) and date of the moving services contract;(3) name of the claimant;(4) date the carrier issued its claim acknowledgment letter;(5) date and total amount paid on the claim or date and reasons for disallowing the claim; and(6) dates, time, and results of any mediation coordinated by the department.</content><note type="source"><p>Source Note: The provisions of this §218.61 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective March 12, 2015, 40 TexReg 1104; amended to be effective February 1, 2017, 42 TexReg 323; amended to be effective November 14, 2017, 42 TexReg 6386; amended to be effective January 2, 2025, 49 TexReg 10668.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c218/scE/s218.62"><num value="218.62">§218.62</num><heading>Mediation by the Department</heading><content>(a) The claimant may make a written request to the department for mediation regarding a dispute over a fee, or damage to the shipper's household goods.(b) The claimant must attempt to resolve the claim with the household goods carrier by making a reasonable effort to follow the household goods carrier's claim process before requesting mediation by the department.(c) Requests for mediation must be made within 35 days after the earliest of the following events:(1) any portion of the claim is denied by the carrier;(2) the carrier makes a firm settlement offer that is not acceptable to the claimant; or(3) 90 days have elapsed since the carrier received the claim and the carrier has not responded to the claimant as prescribed in §218.61(b)(2) of this title (relating to Claims).(d) Except as provided in subsection (e) of this section, the department shall deny a request for mediation made more than 125 days after the carrier received the claim. Additionally, the department shall deny a request for mediation if the carrier did not receive the claim within 90 days after the delivery of the shipment to the final destination or within 90 days after a reasonable time for delivery has elapsed in the case of failure to make delivery.(e) The department may grant a mediation request if the claimant and the carrier agree to participate in the mediation process and:(1) the claimant was not advised in writing at least one time of the right to mediation as required by §218.61(b)(1)(A) or (2); or(2) the claimant does not receive the written denial or settlement offer letter required by §218.61(b)(2).(f) For purposes of subsection (c)(1) and (2) of this section, the 35-day deadline for requesting mediation is calculated from the latter of:(1) the date of the claim denial or settlement offer letter; or(2) the date the claim denial or settlement offer letter is mailed, emailed, or faxed to the claimant.(g) The department will not grant more than one mediation request to a claimant for one shipment of household goods.(h) The department will coordinate the selection of a mediator. The mediation will be conducted by written submissions, telephone conferences, or mediation sessions held at the department's facilities in Austin. The department will establish the time, date, and form of the mediation session.(i) Participation in this mediation process by a household goods carrier.(1) A household goods carrier shall participate in this mediation process if the department grants a mediation request under this section regarding the following:(A) a fee under the moving services contract; or(B) the household goods carrier's liability for loss or damage to the shipper's household goods to the extent the following occurs:(i) the shipper and household goods carrier agreed in the moving services contract that the household goods carrier's cargo liability exceeds $0.00;(ii) a pre-existing transportation contract described by §218.57(d) of this title (Relating to Moving Services Contract) states that the household goods carrier's cargo liability exceeds $0.00; or(iii) if the shipper purchases insurance from the household goods carrier and the household goods carrier does not obtain the insurance policy or other appropriate evidence of purchased insurance for the shipper under §218.54 of this title (Relating to Selling Insurance to Shippers).(2) The department may impose administrative penalties, under §218.71 of this title (relating to Administrative Penalties), on a household goods carrier who refuses to participate in the mediation process or otherwise fails to comply with the requirements of this section.(j) If the claimant fails to appear at the mediation after due notice or, if the mediator determines the claimant has not cooperated in the mediation process, the department's mediation process shall be considered concluded. The claimant may consider pursuing the claim through an appropriate court of law.(k) The mediator shall preside and have discretion over the mediation procedures, including the ability to require the claimant and the household goods carrier to provide information and documents in a timely fashion.(l) If the household goods carrier makes a written report of the results of the inspection documenting the lost or damaged household goods and uses the report during the department's mediation, then the carrier shall provide the original or a legible copy of the report to the claimant.</content><note type="source"><p>Source Note: The provisions of this §218.62 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective March 12, 2015, 40 TexReg 1104; amended to be effective January 2, 2025, 49 TexReg 10668.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c218/scE/s218.64"><num value="218.64">§218.64</num><heading>Rates</heading><content>(a) Ratemaking. A household goods carrier and/or its household goods agent shall set maximum rates and charges for services in its applicable tariff. The household goods carrier and/or its household goods agent shall disclose the maximum rates and charges to prospective shippers before transporting a shipment.(b) Prohibited charges and allowances. A household goods carrier and/or its household goods agent shall not charge more than the maximum charges published in its tariff on file with the department for services associated with transportation.(c) Collective ratemaking agreements.(1) Eligibility. In accordance with Transportation Code, §643.154, a household goods carrier and/or its household goods agent may enter into collective ratemaking agreements between one or more other household goods carriers or household goods agents concerning the establishment and filing of maximum rates and charges, classifications, rules, or procedures.(2) Designation of collective ratemaking associations. An approved association may be designated by a member household goods carrier as its collective ratemaking association for the purpose of filing a tariff containing maximum rates and charges required by §218.65 of this title (relating to Tariff Registration).(3) Submission. In accordance with Transportation Code, §643.154, a collective ratemaking agreement shall be filed with the department for approval. The agreement shall include the following information:(A) full and correct name, business address (street and number, city, state and zip code), and phone number of the association;(B) whether the association is a corporation or partnership; and(i) if a corporation, the government, state, or territory under the laws of which the association was organized and received its present charter; and(ii) if an association or a partnership, the names of the officers or partners and date of formation;(C) full and correct name and business address (city and state) of each household goods carrier on whose behalf the agreement is filed and whether it is an association, a corporation, an individual, or a partnership;(D) the name, title, and mailing address of counsel, officer, or other person to whom correspondence in regard to the agreement should be addressed; and(E) a copy of the constitution, bylaws, or other documents or writings, specifying the organization's powers, duties, and procedures.(4) Signature. The collective ratemaking agreement shall be signed by all parties subject to the agreement or the association's executive officer.(5) Incomplete agreement. If the department receives an agreement which does not comply with this subsection, the department shall send a letter to the individual submitting the agreement. The letter shall identify the information that is missing and advise the association that the agreement shall not be processed until the information is received.(6) Approval. In accordance with Transportation Code, §643.154, the director or designee shall approve a collective ratemaking agreement if the agreement provides that:(A) all meetings are open to the public; and(B) notice of meetings shall be sent to shippers who are multiple users of the services of a household good carrier that is a party to the agreement.(7) Noncompliance. If the director or the director's designee determines that an agreement does not comply with paragraph (6) of this subsection, the matter will be governed by Chapter 224 of this title (relating to Adjudicative Practice and Procedure) and Transportation Code, Chapter 643.(8) New parties to an agreement. An updated agreement shall be filed with the department as new parties are added.(9) Amendments to approved agreements. Amendments to approved agreements (other than as to new parties) may become effective only after approval by the department.(d) Pursuant to Transportation Code, §643.154(c), a household goods carrier required to register under Transportation Code, Chapter 643 is exempt from Chapter 15, Business and Commerce Code, for an activity relating to the establishment of a joint line rate, route, classification, or mileage guide under Transportation Code, §643.154(a) and (d).</content><note type="source"><p>Source Note: The provisions of this §218.64 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective March 12, 2015, 40 TexReg 1104; amended to be effective June 1, 2024, 49 TexReg 2753; amended to be effective January 2, 2025, 49 TexReg 10668.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c218/scE/s218.65"><num value="218.65">§218.65</num><heading>Tariff Registration</heading><content>(a) Submission. In accordance with Transportation Code, §643.153, a household goods carrier and/or its household goods agent shall file a tariff with the department. A household goods carrier who is not a member of an approved association under §218.64 of this title (relating to Rates) shall file a tariff individually. In lieu of filing individually, a household goods carrier or its household goods agent, that is a member of an approved association in accordance with §218.64, may designate a collective association as its ratemaking association. The association may file a tariff, as required by this subsection, for member carriers.(1) Contents. The tariff:(A) shall set out all rates, charges, rules, regulations, or other provisions, in clear and concise terms, used to determine total transportation charges;(B) may provide for the offering, selling, or procuring of insurance as provided in §218.54 of this title (relating to Selling Insurance to Shippers);(C) may provide for the base transportation charge to include assumption by the household goods carrier for the full value of the shipment in the event a policy or other appropriate evidence of the insurance purchased by the shipper from the household goods carrier is not issued to the shipper at the time of purchase;(D) shall describe the procedure for determining charges that are below the maximum rate for each service performed; and(E) shall reference a specific mileage guide or source, if information on rates and charges based on mileage is included in the tariff.(2) Interstate tariff. In accordance with Transportation Code, §643.153, a household goods carrier may satisfy the requirements of this subsection by filing a copy of its tariff governing interstate household goods transportation services.(3) Transmittal letter. A transmittal letter shall accompany a tariff being filed. The transmittal letter shall provide:(A) the name of the household goods carrier;(B) the Texas mailing address and street address of the household goods carrier's principal business address;(C) the household goods carrier's certificate of registration number, if any;(D) the name and title of the household goods carrier's representative authorizing the tariff filing; and(E) whether the tariff is being filed on behalf of a member carrier.(4) Format. Tariffs shall be filed:(A) on 8 1/2" x 11" paper;(B) with a cover sheet showing:(i) the name of the issuing household goods carrier or collective ratemaking association;(ii) the Texas mailing and street address;(iii) the issuance date of the tariff;(iv) the effective date of the tariff; and(v) the tariff number; and(C) separated into the following sections:(i) general rules;(ii) accessorial services; and(iii) rates; and(D) if the tariff references a mileage guide, the mileage guide shall be filed with the department as an addendum to the tariff, unless the household goods carrier utilizes a computer database as a mileage guide.(5) Item numbers. Individual items shall be titled and designated by item number.(6) Amendments. Any amendment to a tariff shall be filed with the department not less than 10 days prior to the effective date of the amendment. The household goods carrier or collective ratemaking association filing on behalf of its member may either file an amended tariff in total or an amendment referencing the specific sections and items which are being amended. The amendment format shall be the same as required by paragraph (4) of this subsection. A transmittal letter providing the same information as required by paragraph (3) of this subsection shall accompany the amendment filing.(7) Rejection. The department shall reject a tariff or amendment filing if it is determined the tariff:(A) fails to meet the requirements of this section; or(B) fails to fully disclose, in clear and concise terms, all rates, charges, and rules.(8) Electronic filings. A household goods carrier may file an electronic copy of its tariff provided that the document is consistent with the provision of this subsection and is formatted in Microsoft Word or other format approved by the director.(b) Department access to computer database used as mileage guide. If the household goods carrier utilizes a computer database as a mileage guide in its tariff, the household goods carrier shall allow department personnel free access to the system when conducting an inquiry regarding a specific movement performed by the household goods carrier.(c) Access. In accordance with Transportation Code, §643.153, tariffs filed in accordance with this section shall be made available for public inspection at the TxDMV Enforcement Division or by calling the department's toll-free consumer helpline as listed on the department's website.(d) Conflicts. All provisions of household goods carriers' tariffs are superseded to the extent they may conflict with the provisions of this chapter.</content><note type="source"><p>Source Note: The provisions of this §218.65 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective March 12, 2015, 40 TexReg 1104; amended to be effective July 2, 2017, 42 TexReg 3275; amended to be effective January 2, 2025, 49 TexReg 10668.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c218/scF"><num value="F">SUBCHAPTER F</num><heading>ADMINISTRATIVE PENALTIES AND SANCTIONS</heading><section identifier="/us/state/tx/tac/t43/p10/c218/scF/s218.70"><num value="218.70">§218.70</num><heading>Purpose</heading><content>The purpose of this subchapter is to provide for administrative penalties and sanctions under Transportation Code, Chapters 643 and 645, as well as the probation of the suspension of a motor carrier's certificate of registration. This subchapter also provides for the assessment of civil penalties in certain cases under federal law regarding the interstate movement of household goods. The enforcement actions under this chapter are governed by Chapter 224 of this title (relating to Adjudicative Practice and Procedure) and Transportation Code, Chapters 643 and 645, as applicable.</content><note type="source"><p>Source Note: The provisions of this §218.70 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective March 12, 2015, 40 TexReg 1104; amended to be effective June 1, 2024, 49 TexReg 2753.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c218/scF/s218.71"><num value="218.71">§218.71</num><heading>Administrative Penalties</heading><content>(a) Authority. The department, after notice and opportunity for hearing, may impose an administrative penalty against the following:(1) a motor carrier that violates a provision of Transportation Code, Chapter 643 or Chapter 645 or violates a rule or order adopted under Transportation Code, Chapter 643 or Chapter 645; or(2) a motor carrier or broker that violates a federal law or regulation, the enforcement of which has been delegated to the department.(b) Memorandum of Agreement. Pursuant to a Memorandum of Agreement between the department and the Federal Motor Carrier Safety Administration, United States Department of Transportation, the department is authorized to initiate an enforcement action and assess civil penalties against a motor carrier or broker, as applicable, under the authority of the following:(1) 49 U.S.C. §§13702, 13704, 13707(b), 13901, 14104(b), 14706(f), 14708, 14710, 14901(d)(2) and (3), 14901(e), and 14915, as amended;(2) 49 C.F.R. §§366.4, 370.3-370.9, 371.3(c), 371.7, 371.105, 371.107, 371.109, 371.111, 371.113, 371.115, 371.117, 371.121, 373.201, Part 375, §§378.3 - 378.9, 387.301(b), 387.307, 387.403, and Part 386 Appendix B(g)(22) - (23), as amended; and(3) any future delegations pursuant to 49 U.S.C. §14710.</content><note type="source"><p>Source Note: The provisions of this §218.71 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective December 30, 2010, 35 TexReg 11713; amended to be effective June 4, 2014, 39 TexReg 4272; amended to be effective March 12, 2015, 40 TexReg 1104; amended to be effective June 1, 2024, 49 TexReg 2753.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c218/scF/s218.72"><num value="218.72">§218.72</num><heading>Administrative Sanctions</heading><content>(a) Grounds for suspension, revocation, denial, and probation. Transportation Code, §643.252 provides the grounds on which the department can suspend, revoke, or deny a certificate of registration issued under Transportation Code, Chapter 643. Transportation Code, §643.252 also provides the grounds on which the department can place on probation a motor carrier whose registration is suspended.(b) Texas Department of Public Safety enforcement recommendations.(1) The department may suspend or revoke a certificate of registration of a motor carrier upon a written request by the Texas Department of Public Safety, if a motor carrier:(A) has an unsatisfactory safety rating under 49 C.F.R., Part 385; or(B) has multiple violations of Transportation Code, Chapter 644, a rule adopted under that chapter, or Transportation Code, Title 7, Subtitle C.(2) A request under paragraph (1) of this subsection must include documentation showing the violation.(c) Refund.(1) The department may order a household goods carrier that violates Transportation Code Chapter 643, department rules, or a department order adopted under Transportation Code Chapter 643 to issue a refund to a customer who paid the household goods carrier to transport household goods.(2) Under this subsection, a refund is the return of any percentage of funds paid, or contracted to be paid, to a household goods carrier transporting household goods, whether those funds are documented as a separate line item or included in the overall amount paid by a customer.(A) A refund includes overpayments, fees paid for services not rendered, and fees paid for charges not listed on the household goods carrier's tariff after the household goods carrier takes possession of the customer's property.(B) A refund does not include any consideration of damages or harm over the amount paid by the customer.</content><note type="source"><p>Source Note: The provisions of this §218.72 adopted to be effective February 4, 2010, 35 TexReg 663; amended to be effective December 7, 2014, 39 TexReg 9373; amended to be effective December 30, 2020, 45 TexReg 9581; amended to be effective June 1, 2024, 49 TexReg 2753; amended to be effective January 2, 2025, 49 TexReg 10668.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c218/scG"><num value="G">SUBCHAPTER G</num><heading>FINANCIAL RESPONSIBILITY FOR FOREIGN COMMERCIAL MOTOR VEHICLES</heading><section identifier="/us/state/tx/tac/t43/p10/c218/scG/s218.80"><num value="218.80">§218.80</num><heading>Purpose and Scope</heading><content>(a) The purpose of this subchapter is to comply with Transportation Code, §648.102. For the purposes of this subchapter, the term "motor carrier" is defined by Transportation Code, §648.001, and does not include the following, except as provided by subsection (b) of this section:(1) a motor carrier that is required to register with the department under Transportation Code, Chapter 643; or(2) a motor carrier that is required to register with FMCSA for interstate transportation, and is not operating in intrastate transportation within this state.(b) If a motor carrier is required to register with the department under Transportation Code, Chapter 643, the motor carrier must comply with the financial responsibility requirements in §218.16 of this title (relating to Insurance Requirements).</content><note type="source"><p>Source Note: The provisions of this §218.80 adopted to be effective March 12, 2015, 40 TexReg 1104; amended to be effective January 2, 2025, 49 TexReg 10668.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c218/scG/s218.81"><num value="218.81">§218.81</num><heading>Definitions</heading><content>The words and terms used in this subchapter are defined in Transportation Code, Chapter 648, unless the context clearly indicates otherwise.</content><note type="source"><p>Source Note: The provisions of this §218.81 adopted to be effective March 12, 2015, 40 TexReg 1104.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c218/scG/s218.82"><num value="218.82">§218.82</num><heading>Financial Responsibility</heading><content>(a) Intrastate transportation. No motor carrier shall operate a foreign commercial motor vehicle in intrastate transportation in Texas, unless the motor carrier obtains and has in effect an insurance policy which covers at least the minimum level required by 49 C.F.R. Part 387. For the purposes of this subsection, intrastate transportation is any transportation on a public highway in Texas that is not described in 49 U.S.C. §13501.(b) The department adopts by reference 49 C.F.R. Part 387 regarding the required level of financial responsibility, including any amendments that became effective through July 1, 2024.</content><note type="source"><p>Source Note: The provisions of this §218.82 adopted to be effective March 12, 2015, 40 TexReg 1104; amended to be effective January 2, 2025, 49 TexReg 10668.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p10/c219"><num value="219">CHAPTER 219</num><heading>OVERSIZE AND OVERWEIGHT VEHICLES AND LOADS</heading><subchapter identifier="/us/state/tx/tac/t43/p10/c219/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t43/p10/c219/scA/s219.1"><num value="219.1">§219.1</num><heading>Purpose and Scope</heading><content>The department is responsible for regulating the movement of oversize and overweight vehicles and loads on certain public roadways in this state, in order to ensure the safety of the traveling public, and to protect the integrity of the public roadways and the bridges. This responsibility is accomplished through the issuance of permits for the movement of oversize and overweight vehicles and loads. The sections under this chapter prescribe the policies and procedures for the issuance of permits and the filing of surety bonds. All applications for permits and all questions regarding the permits should be directed to the department, even though TxDOT is responsible for certain issues regarding permits.</content><note type="source"><p>Source Note: The provisions of this §219.1 adopted to be effective October 13, 1994, 19 TexReg 7809; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359; amended to be effective June 28, 2015, 40 TexReg 4003; amended to be effective December 14, 2015, 40 TexReg 8900; amended to be effective July 18, 2024, 49 TexReg 5161.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scA/s219.2"><num value="219.2">§219.2</num><heading>Definitions</heading><content>(a) The definitions contained in Transportation Code, Chapters 621, 622, and 623 apply to this chapter. In the event of a conflict with this chapter, the definitions contained in Transportation Code, Chapters 621, 622, and 623 control.(b) The following words and terms, when used in this chapter, will have the following meanings, unless the context clearly indicates otherwise.(1) Annual permit--A permit that authorizes movement of an oversize and/or overweight load for one year commencing with the effective date.(2) Applicant--Any person, firm, or corporation requesting a permit.(3) Axle--The common axis of rotation of one or more wheels whether power-driven or freely rotating, and whether in one or more segments.(4) Axle group--An assemblage of two or more consecutive axles, with two or more wheels per axle, spaced at least 40 inches from center of axle to center of axle, equipped with a weight-equalizing suspension system that will not allow more than a 10% weight difference between any two axles in the group.(5) Closeout--The procedure used by the department to terminate a permit, issued under Transportation Code, §623.142 or §623.192 that will not be renewed by the applicant.(6) Complete identification number--A unique and distinguishing number assigned to equipment or a commodity for purposes of identification.(7) Concrete pump truck--A self-propelled vehicle designed to pump the concrete product from a ready mix truck to the point of construction.(8) Crane--Any unladen lift equipment motor vehicle designed for the sole purpose of raising, shifting, or lowering heavy weights by means of a projecting, swinging mast with an engine for power on a chassis permanently constructed or assembled for such purpose.(9) Day-A calendar day.(10) Daytime--As defined in Transportation Code, §541.401.(11) Digital signature--An electronic identifier intended by the person using it to have the same force and effect as a manual signature. The digital signature shall be unique to the person using it.(12) Electronic identifier--A unique identifier which is distinctive to the person using it, is independently verifiable, is under the sole control of the person using it, and is transmitted in a manner that makes it infeasible to change the data in the communication or digital signature without invalidating the digital signature.(13) Escort flag vehicle--A vehicle that precedes or follows an oversize or overweight vehicle to facilitate the safe movement of the oversize or overweight vehicle over roads.(14) Four-axle group--Any four consecutive axles, having at least 40 inches from center of axle to center of axle, whose extreme centers are not more than 192 inches apart and are individually attached to or articulated from, or both, to the vehicle by a weight equalizing suspension system.(15) Gauge--The transverse spacing distance between tires on an axle, expressed in feet and measured to the nearest inch, from center-of-tire to center-of-tire on an axle equipped with only two tires, or measured to the nearest inch from the center of the dual wheels on one side of the axle to the center of the dual wheels on the opposite side of the axle.(16) Gross weight--The unladen weight of a vehicle or combination of vehicles plus the weight of the load being transported.(17) Height pole--A device made of a non-conductive material, used to measure the height of overhead obstructions.(18) Highway maintenance fee--A fee established by Transportation Code, §623.077, based on gross weight, and paid by the permittee when the permit is issued.(19) Highway use factor--A mileage reduction figure used in the calculation of a permit fee for a permit issued under Transportation Code, §623.142 and §623.192.(20) Hubometer--A mechanical device attached to an axle on a unit or an unladen lift equipment motor vehicle for recording mileage traveled.(21) HUD label number--A unique number assigned to a manufactured home by the U.S. Department of Housing and Urban Development.(22) Indirect cost share--A prorated share of administering department activities, other than the direct cost of the activities, including the cost of providing statewide support services.(23) Load-restricted bridge--A bridge that is restricted by the Texas Department of Transportation, under the provisions of Transportation Code, §621.102, to a weight limit less than the maximum amount allowed by Transportation Code, §621.101.(24) Load-restricted road--A road that is restricted by the Texas Department of Transportation, under the provisions of Transportation Code, §621.102, to a weight limit less than the maximum amount allowed by Transportation Code, §621.101.(25) Manufactured home--Manufactured housing, as defined in Occupations Code, Chapter 1201, and industrialized housing and buildings, as defined in Occupations Code, §1202.002, and temporary chassis systems, and returnable undercarriages used for the transportation of manufactured housing and industrialized housing and buildings, and a transportable section which is transported on a chassis system or returnable undercarriage that is constructed so that it cannot, without dismantling or destruction, be transported within legal size limits for motor vehicles.(26) Motor carrier--A person that controls, operates, or directs the operation of one or more vehicles that transport persons or cargo over a public highway in this state, as defined by Transportation Code, §643.001.(27) Nighttime-As defined in Transportation Code, §541.401.(28) Nondivisible load or vehicle--(A) A nondivisible load or vehicle is defined as follows:(i) Any load or vehicle exceeding applicable length or weight limits which, if separated into smaller loads or vehicles, would:(I) compromise the intended use of the vehicle, i.e., make it unable to perform the function for which it was intended;(II) destroy the value of the load or vehicle, i.e., make it unusable for its intended purpose; or(III) require more than eight workhours to dismantle using appropriate equipment. The applicant for a nondivisible load permit has the burden of proof as to the number of workhours required to dismantle the load.(ii) Emergency response vehicles, including those loaded with salt, sand, chemicals or a combination thereof, with or without a plow or blade attached in front, and being used for the purpose of spreading the material on highways that are or may become slick or icy.(iii) Casks designed for the transport of spent nuclear materials.(iv) Military vehicles transporting marked military equipment or materiel.(B) A vehicle or load that exceeds legal weight (without the properly secured components) and for which an appropriate permit is obtained from the department under this chapter may travel as a mobile vehicle or as a load, as applicable, with properly secured components in accordance with the manufacturer's specifications to the extent the components are necessary for the vehicle or load to perform its intended function or purpose, provided the axle weights, axle group weights, and gross weight do not exceed the maximum applicable permit weights listed in this chapter. For example, a crane permitted under Subchapter E of this chapter that exceeds legal weight without the properly secured components may travel with properly secured components, such as outriggers, booms, counterweights, jibs, blocks, balls, cribbing, outrigger pads, and outrigger mats, in accordance with the manufacturer's specifications to the extent the components are necessary for the crane to perform its intended function, provided the axle weights, axle group weights, and gross weight do not exceed the maximum permit weights listed in Subchapter E of this chapter. An example of a load being transported is a dozer with the blade detached that is permitted under §219.12 of this title (relating to Single-Trip Permits Issued under Transportation Code, Chapter 623, Subchapter D) when both are being transported on a trailer or semitrailer if the dozer without the blade is overweight, provided the axle weights, axle group weights, and gross weight do not exceed the maximum permit weights listed in §219.12.(29) Oil field rig-up truck--An unladen vehicle with an overweight single steering axle, equipped with a winch and set of gin poles used for lifting, erecting, and moving oil well equipment and machinery.(30) Oil well servicing unit--An oil well clean-out unit, oil well drilling unit, or oil well swabbing unit, which is mobile equipment, either self-propelled or trailer-mounted, constructed as a machine used solely for cleaning-out, drilling, servicing, or swabbing oil wells, and consisting in general of, but not limited to, a mast, an engine for power, a draw works, and a chassis permanently constructed or assembled for this purpose.(31) Overdimension load--A vehicle, combination of vehicles, or vehicle and its load that exceeds maximum legal width, height, length, overhang, or weight as set forth by Transportation Code, Chapter 621, Subchapters B and C.(32) Overhang--The portion of a load extending beyond the front or rear of a vehicle or combination of vehicles.(33) Overheight--A vehicle or load that exceeds the maximum height specified in Transportation Code, §621.207.(34) Overlength--A vehicle, combination of vehicles, or a vehicle or vehicle combination and its load that exceed(s) the maximum length specified in Transportation Code, §§621.203, 621.204, 621.205, and 621.206.(35) Oversize load--A vehicle, combination of vehicles, or a vehicle or vehicle combination and its load that exceed(s) maximum legal width, height, length, or overhang, as set forth by Transportation Code, Chapter 621, Subchapter C.(36) Overweight--A vehicle, combination of vehicles, or a vehicle or vehicle combination and its load that exceed(s) the maximum weight specified in Transportation Code, §621.101.(37) Overwidth--A vehicle or load that exceeds the maximum width specified in Transportation Code, §621.201.(38) Permit--Authority for the movement of an oversize and/or overweight vehicle, combination of vehicles, or a vehicle or vehicle combination and its load, issued by the department under Transportation Code, Chapter 623.(39) Permit officer--An employee of the department who is authorized to issue an oversize/overweight permit.(40) Permit plate--A license plate issued under Transportation Code, §502.146, to oil well servicing, cleanout, or drilling machinery as defined in Transportation Code, §502.001(29).(41) Permitted vehicle--A vehicle, combination of vehicles, or vehicle and its load operating under the provisions of a permit.(42) Permittee--Any person, firm, or corporation that is issued an oversize/overweight permit by the department.(43) Pipe box--A container specifically constructed to safely transport and handle oil field drill pipe and drill collars.(44) Portable building compatible cargo--Cargo, other than a portable building unit, that is manufactured, assembled, or distributed by a portable building unit manufacturer and is transported in combination with a portable building unit.(45) Portable building unit--The pre-fabricated structural and other components incorporated and delivered by the manufacturer as a complete inspected unit with a distinct serial number whether in fully assembled, partially assembled, or kit (unassembled) configuration when loaded for transport.(46) Principal--The person, firm, or corporation that is insured by a surety bond company.(47) Roll stability support safety system--An electronic system that monitors vehicle dynamics and estimates the stability of a vehicle based on its mass and velocity, and actively adjusts vehicle systems including the throttle and/or brake(s) to maintain stability when a rollover risk is detected.(48) Shipper's certificate of weight--A form approved by the department in which the shipper certifies to the maximum weight of the shipment being transported.(49) Single axle--An assembly of two or more wheels whose centers are in one transverse vertical plane or may be included between two parallel transverse planes 40 inches apart extending across the full width of the vehicle.(50) Single-trip permit--A permit issued for an overdimension load for a single continuous movement over a specific route for an amount of time necessary to make the movement.(51) State highway--A highway or road under the jurisdiction of the Texas Department of Transportation.(52) State highway system--A network of roads and highways as defined by Transportation Code, §221.001.(53) Surety bond--An agreement issued by a surety bond company to a principal that pledges to compensate the obligee as required under Transportation Code, Chapters 622 and 623.(54) Tare weight--The empty weight of any vehicle transporting an overdimension load.(55) Three-axle group--Any three consecutive axles, having at least 40 inches from center of axle to center of axle, whose extreme centers are not more than 144 inches apart, and are individually attached to or articulated from, or both, to the vehicle by a weight equalizing suspension system.(56) Time permit--A permit issued for a specified period of time under §219.13 of this title (relating to Time Permits).(57) Tire size--The inches of lateral tread width.(58) Trailer-mounted unit--An oil well clean-out, drilling, servicing, or swabbing unit mounted on a trailer, constructed as a machine used for cleaning out, drilling, servicing, or swabbing oil wells, and consisting in general of, but not limited to, a mast, an engine for power, a draw works, and a chassis permanently constructed or assembled for this purpose.(59) Truck--A motor vehicle designed, used, or maintained primarily for the transportation of property.(60) Truck blind spot systems--Vehicle-based sensor devices that detect other vehicles or objects located in the vehicle's adjacent lanes. Warnings can be visual, audible, vibrating, or tactile.(61) Trunnion axle--Two individual axles mounted in the same transverse plane, with four tires on each axle, that are connected to a pivoting wrist pin that allows each individual axle to oscillate in a vertical plane to provide for constant and equal weight distribution on each individual axle at all times during movement.(62) Two-axle group--Any two consecutive axles whose centers are at least 40 inches but not more than 96 inches apart and are individually attached to or articulated from, or both, to the vehicle by a weight equalizing suspension system.(63) TxDOT--Texas Department of Transportation.(64) Unit--Oil well clean-out unit, oil well drilling unit, oil well servicing unit, and/or oil well swabbing unit.(65) Unladen lift equipment motor vehicle--A motor vehicle, such as a crane or a concrete pump truck, designed for use as lift equipment used solely to raise, shift, or lower heavy weights by means of a projecting, swinging mast with an engine for power on a chassis permanently constructed or assembled for such purpose.(66) USDOT Number--The United States Department of Transportation number.(67) Vehicle identification number--A unique and distinguishing number assigned to a vehicle by the manufacturer or by the department in accordance with Transportation Code, §501.032 and §501.033.(68) Water Well Drilling Machinery--Machinery used exclusively for the purpose of drilling water wells, including machinery that is a unit or a unit mounted on a conventional vehicle or chassis.(69) Weight-equalizing suspension system--An arrangement of parts designed to attach two or more consecutive axles to the frame of a vehicle in a manner that will equalize the load between the axles.(70) Windshield sticker--Identifying insignia indicating that a permit has been issued in accordance with Subchapter C of this chapter.(71) Year--A time period consisting of 12 consecutive months that commences with the effective date stated in the permit.</content><note type="source"><p>Source Note: The provisions of this §219.2 adopted to be effective October 13, 1994, 19 TexReg 7809; amended to be effective December 26, 1995, 20 TexReg 10655; amended to be effective July 9, 1996, 21 TexReg 5982; amended to be effective January 8, 1998, 23 TexReg 155; amended to be effective February 21, 1999, 24 TexReg 1221; amended to be effective January 9, 2005, 29 TexReg 12246; amended to be effective June 1, 2008, 33 TexReg 3776; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359; amended to be effective June 28, 2015, 40 TexReg 4003; amended to be effective December 14, 2015, 40 TexReg 8900;amendedto be effective July 2, 2017, 42 TexReg 3280; amended to be effective July 15, 2018, 43 TexReg 4769; amended to be effective December 30, 2020, 45 TexReg 9582; amended to be effective July 18, 2024, 49 TexReg 5161.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scA/s219.3"><num value="219.3">§219.3</num><heading>Surety Bonds for Vehicles Transporting Recyclable Materials or Solid Waste</heading><content>(a) Surety bond required. A surety bond is required for:(1) vehicles used exclusively to transport recyclable materials operated under the provisions of Transportation Code, §622.134; and(2) vehicles used exclusively to transport solid waste under the provisions of Transportation Code, §623.163.(b) Surety bonds.(1) Surety bonds filed under this section must:(A) be in the amount of $1,000 per vehicle;(B) indicate the total amount of coverage; and(C) be filed on a form and in a manner prescribed by the department.(2) A surety bond is effective the day it is issued and expires at the end of the state fiscal year.(3) The original bond certificate form must be carried in the cab of the bonded vehicle.(c) Bond certification.(1) For each vehicle, a bond certificate must:(A) be on a form prescribed by the department; and(B) be completed in duplicate and submitted to the department in a manner prescribed by the department for certification.(2) The department will certify and return one copy of the bond certificate form to the principal.(d) Bond amendment.(1) A bond amendment form must be submitted to the department to add or delete a vehicle covered by a certified surety bond. A bond amendment must be completed in duplicate on a form and in a manner prescribed by the department.(2) The department will certify and return to the principal one copy of the bond amendment form when a new vehicle is added to the surety bond.(3) When a vehicle is removed from the surety bond, the department will make the necessary revision to the principal's file.(4) The certified bond amendment form must be carried in the cab of the bonded vehicle.(e) Acceptable bond documents. An electronic copy or facsimile copy of a surety bond form, bond certification form, or bond amendment form is not acceptable in lieu of the original surety bond.</content><note type="source"><p>Source Note: The provisions of this §219.3 adopted to be effective February 21, 1999, 24 TexReg 1221; amended to be effective January 9, 2005, 29 TexReg 12246; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359; amended to be effective August 19, 2014, 39 TexReg 6235; amended to be effective June 28, 2015, 40 TexReg 4003; amended to be effective July 2, 2017, 42 TexReg 3280.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scA/s219.5"><num value="219.5">§219.5</num><heading>Application Requirements</heading><content>(a) An application for a permit under this chapter must be filed with the department and must be:(1) made in a form and filed by the method prescribed by the department on its website;(2) completed by the applicant or an authorized representative of the applicant; and(3) accompanied by the required fee, which shall be payable as provided by §209.23 of this title (relating to Methods of Payment).(b) An authorized representative of the applicant who files an application with the department on behalf of the applicant may be required to provide written proof of authority to act on behalf of the applicant.(c) The department will not approve an application for a permit unless the applicant:(1) provides all information and documents required by the department; and(2) complies with all application requirements under this chapter; Transportation Code, Chapters 621, 622, and 623; and other applicable law.(d) An applicant must register for an account in the department's designated permitting system prior to using the system to apply for or amend a permit. Once the applicant registers for an account in the department's designated permitting system, the system will generate a customer identification number for the applicant to use when applying for a permit. To register for an account, the applicant must provide the following information via the department's designated permitting system, which is accessible on the department's website:(1) the applicant's company name, phone number, email address, permit delivery method, physical address, and mailing address;(2) first name, last name, and phone number for an emergency contact for the applicant; and(3) the requested login information, including a unique username and password.(e) If the department authorizes an application for a permit to be submitted by mail and the applicant does not have a customer identification number, the applicant must authorize the department to set up an account for the applicant in the department's designated permitting system for the purposes of obtaining a customer identification number for the applicant based on information the department obtains from the applicant's permit application and information the department obtains from the Federal Motor Carrier Safety Administration's system.</content><note type="source"><p>Source Note: The provisions of this §219.5 adopted to be effective July 18, 2024, 49 TexReg 5161.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scA/s219.7"><num value="219.7">§219.7</num><heading>Amendments to Permits</heading><content>(a) General amendment guidelines. Except as provided by subsection (b) of this section, any part of a permit may be amended under the guidelines in this subsection, notwithstanding any other sections in this chapter regarding limitations on amending a permit.(1) Any amendment that is necessary to correct an error made by department staff or the department's designated permitting system may be made provided the price of the permit or the permit type does not change.(2) An expired permit may only be amended if it expired on a day on which the department was closed or the department's designated permitting system was not operational.(b) Specific amendment authority and restrictions. Notwithstanding any other section in this chapter regarding limitations on amending a permit, a permit issued under this chapter may be amended as authorized by this subsection.(1) The permittee's name can be amended on any permit type to correct a spelling error.(2) The permittee's contact information may be amended on any permit type.</content><note type="source"><p>Source Note: The provisions of this §219.7 adopted to be effective July 18, 2024, 49 TexReg 5161.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scA/s219.9"><num value="219.9">§219.9</num><heading>Federal Highway Administration Interpretation of Federal Law</heading><content>Notwithstanding any provisions in this chapter, this chapter does not authorize the operation of a vehicle or vehicle combination on the following roadways in this state to the extent the Federal Highway Administration determines the vehicle or vehicle combination exceeds the applicable weight or size for such roadway under 23 U.S.C. §127, 49 U.S.C. §§31111 through 31114, or federal regulations prescribed under 23 U.S.C. §127 or 49 U.S.C. §§31111 through 31114: the federal-aid primary system, the federal-aid urban system, and the federal-aid secondary system, including the national system of interstate and defense highways. To the extent the department learns that the Federal Highway Administration generally determines a vehicle or vehicle combination exceeds the applicable weight or size for such roadway under 23 U.S.C. §127, 49 U.S.C. §§31111 through 31114, or federal regulations prescribed under 23 U.S.C. §127 or 49 U.S.C. §§31111 through 31114 in a way that may conflict with a provision in this chapter, the department will post a notice on its website and may provide notice to permittees through the applicable email addresses on file with the department.</content><note type="source"><p>Source Note: The provisions of this §219.9 adopted to be effective July 18, 2024, 49 TexReg 5161.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c219/scB"><num value="B">SUBCHAPTER B</num><heading>GENERAL PERMITS</heading><section identifier="/us/state/tx/tac/t43/p10/c219/scB/s219.10"><num value="219.10">§219.10</num><heading>Purpose and Scope</heading><content>(a) In accordance with Transportation Code, Chapters 621, 622, and 623, the department may issue permits for the operation of oversize and/or overweight vehicles for:(1) the transportation of a nondivisible load or vehicle when the size or gross weight exceeds the limits allowed by law;(2) the transportation of oversize portable building units and portable building compatible cargo;(3) the movement of oversize manufactured housing and industrialized buildings;(4) the movement of cylindrically shaped bales of hay; and(5) the movement of water well drilling machinery and equipment.(b) The issuance of a permit for an oversize and/or overweight unit is not a guarantee by the department that the highways can safely accommodate such movement. The transporter of a unit is responsible for any damage caused to the state highway system or any of its structures or appurtenances by movement of the unit, whether or not the unit is permitted.(c) The following sections in this subchapter set forth the requirements and procedures applicable to those permits.</content><note type="source"><p>Source Note: The provisions of this §219.10 adopted to be effective October 13, 1994, 19 TexReg 7810; amended to be effective December 26, 1995, 20 TexReg 10656; amended to be effective January 8, 1998, 23 TexReg 155; amended to be effective February 21, 1999, 24 TexReg 1221; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359; amended to be effective December 14, 2015, 40 TexReg 8900.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scB/s219.11"><num value="219.11">§219.11</num><heading>General Oversize/Overweight Permit Requirements and Procedures</heading><content>(a) Purpose and scope. This section contains general requirements relating to oversize/overweight permits, including single-trip permits. Specific requirements for each type of specialty permit are provided for in this chapter.(b) Motor carrier registration or surety bond. Unless exempted by law, prior to obtaining an oversize/overweight permit, an applicant permitted under the provisions of Transportation Code, Chapter 623, Subchapter D, must be registered as a motor carrier under Chapter 218 of this title (relating to Motor Carriers) or, if not required to obtain a motor carrier registration, file a surety bond with the department as described in subsection (n) of this section.(c) Permit application.(1) An application for a permit shall be made in a form and by the method prescribed by the department, and at a minimum shall include the following, unless stated otherwise in this subchapter:(A) name, customer identification number, and address of the applicant;(B) name, telephone number, and email address of contact person;(C) applicant's USDOT Number if applicant is required by law to have a USDOT Number;(D) complete load description, including maximum width, height, length, overhang, and gross weight;(E) complete description of vehicle, including truck year, make, license plate number and state of issuance, and vehicle identification number, if required;(F) vehicle axle and tire information including number of axles, distance between axles, axle weights, number of tires, and tire size for overweight permit applications; and(G) any other information required by law.(2) Applications transmitted electronically are considered signed if a digital signature is transmitted with the application and intended by the applicant to authenticate the application.(A) The department may only accept a digital signature used to authenticate an application under procedures that comply with any applicable rules adopted by the Department of Information Resources regarding department use or acceptance of a digital signature.(B) The department may only accept a digital signature to authenticate an application if the digital signature is:(i) unique to the person using it;(ii) capable of independent verification;(iii) under the sole control of the person using it; and(iv) transmitted in a manner that will make it infeasible to change the data in the communication or digital signature without invalidating the digital signature.(d) Maximum permit weight limits.(1) General. An overweight permitted vehicle will not be routed over a load-restricted bridge when exceeding the posted capacity of the bridge, unless a special exception is granted by TxDOT, based on an analysis of the bridge performed by a TxDOT approved licensed professional engineer or by TxDOT. Any analysis by a non-TxDOT licensed professional engineer must have final approval from TxDOT.(A) An axle group must have a minimum spacing of four feet, measured from center of axle to center of axle, between each axle in the group to achieve the maximum permit weight for the group.(B) The maximum permit weight for an axle group with spacing of five or more feet between each axle will be based on an engineering study of the equipment conducted by TxDOT.(C) A permitted vehicle will be allowed to have air suspension, hydraulic suspension, and mechanical suspension axles in a common weight equalizing suspension system for any axle group.(D) The department may permit axle weights greater than those specified in this section, for a specific individual permit request, based on an engineering study of the route and hauling equipment performed by a TxDOT approved licensed professional engineer or by TxDOT. Any analysis by a non-TxDOT licensed professional engineer must have final approval from TxDOT.(E) A permitted vehicle or combination of vehicles may not exceed the manufacturer's rated tire carrying capacity, unless expressly authorized in the language on the permit based on an analysis performed by a TxDOT approved licensed professional engineer or by TxDOT. Any analysis by a non-TxDOT licensed professional engineer must have final approval from TxDOT.(F) If two or more consecutive axle groups have an axle spacing of less than 12 feet, measured from the center of the last axle of the preceding group to the center of the first axle of the following group, the maximum permit weight on the axle groups will be reduced by 2.5% for each foot less than 12 feet.(2) Maximum axle weight limits. Maximum permit weight for an axle or axle group is based on 650 pounds per inch of tire width or the following axle or axle group weights, whichever is the lesser amount:(A) single axle--25,000 pounds;(B) two-axle group--46,000 pounds;(C) three-axle group--60,000 pounds;(D) four-axle group--70,000 pounds;(E) five-axle group--81,400 pounds;(F) axle group with six or more axles--determined by TxDOT based on an engineering study of the equipment, which will include the type of steering system used, the type of axle suspension, the spacing distance between each axle, the number of tires per axle, and the tire size on each axle; or(G) trunnion axles--30,000 pounds per axle if the trunnion configuration has:(i) two axles;(ii) eight tires per axle;(iii) axles a minimum of 10 feet in width; and(iv) at least five feet of spacing between the axles, not to exceed six feet.(3) Weight limits for load restricted roads. Maximum permit weight for an axle or axle group, when traveling on a load restricted road, will be based on 650 pounds per inch of tire width or the following axle or axle group weights, whichever is the lesser amount:(A) single axle--22,500 pounds;(B) two-axle group--41,400 pounds;(C) three-axle group--54,000 pounds;(D) four-axle group--63,000 pounds;(E) five-axle group--73,260 pounds;(F) axle group with six or more axles--determined by TxDOT based on an engineering study of the equipment, which will include the type of steering system used, the type of axle suspension, the spacing distance between each axle, the number of tires per axle, and the tire size on each axle;(G) trunnion axles--54,000 pounds; and(H) if two or more consecutive axle groups have an axle spacing of less than 12 feet, measured from the center of the last axle of the preceding group to the center of the first axle of the following group, the maximum permit weight on the axle groups will be reduced by 2.5% for each foot less than 12 feet.(e) Permit issuance.(1) General. Upon receiving an application in the form prescribed by the department, the department will review the permit application for the appropriate information and will then determine the most practical route based on information provided by TxDOT.(2) Routing.(A) A permitted vehicle will be routed over the most practical route available taking into consideration:(i) the size and weight of the overdimension load in relation to vertical clearances, width restrictions, steep grades, and reduced capacity or load restricted bridges;(ii) the geometrics of the roadway in comparison to the overdimension load;(iii) sections of highways restricted to specific load sizes and weights due to construction, maintenance, and hazardous conditions;(iv) traffic conditions, including traffic volume;(v) route designations by municipalities in accordance with Transportation Code, §623.072;(vi) load restricted roads; and(vii) other considerations for the safe transportation of the load.(B) When a permit applicant desires a route other than the most practical, more than one permit will be required for the trip unless an exception is granted by the department.(3) Movement to and from point of origin or place of business. A permitted vehicle will be allowed to:(A) move empty oversize and overweight hauling equipment to and from the job site; and(B) move oversize and overweight hauling equipment with a load from the permitted vehicle's point of origin to pick up a permitted load, and to the permitted vehicle's point of origin or the permittee's place of business after dropping off a permitted load, as long as:(i) the load does not exceed legal size and weight limits under Transportation Code, Chapters 621 and 622; and(ii) the transport complies with the permit, including the time period stated on the permit.(f) Refund of permit fees. A permit fee will not be refunded after the permit number has been issued unless such refund is necessary to correct an error made by the permit officer.(g) Amendments. A permit may be amended for the following reasons:(1) vehicle breakdown;(2) changing the intermediate points in an approved permit route;(3) extending the expiration date due to conditions which would cause the move to be delayed;(4) changing route origin or route destination prior to the start date as listed on the permit;(5) changing vehicle size limits prior to the permit start date as listed on the permit, provided that changing the vehicle size limit does not necessitate a change in the approved route; and(6) correcting any mistake that is made due to permit officer error.(h) Requirements for overwidth loads.(1) Unless stated otherwise on the permit, an overwidth load must travel in the outside traffic lane on multi-lane highways, when the width of the load exceeds 12 feet.(2) Overwidth loads are subject to the escort requirements of subsection (k) of this section.(3) A permitted vehicle exceeding 16 feet in width will not be routed on the main lanes of a controlled access highway, unless an exception is granted by TxDOT, based on a route and traffic study. The load may be permitted on the frontage roads when available, if the movement will not pose a safety hazard to other highway users.(4) An applicant requesting a permit to move a load exceeding 20 feet wide will be furnished with a proposed route. The applicant must physically inspect the proposed route to determine if the vehicle and load can safely negotiate it, unless an exception is granted based on a route and traffic study conducted by TxDOT. A permit application and the appropriate fee are required for every route inspection.(A) The applicant must notify the department in writing whether the vehicle and load can or cannot safely negotiate the proposed route.(B) If any section of the proposed route is unacceptable, the applicant shall provide the department with an alternate route around the unacceptable section.(C) Once a route is decided upon and a permit issued, the permit may not be amended unless an exception is granted by the department.(i) Requirements for overlength loads.(1) Overlength loads are subject to the escort requirements stated in subsection (k) of this section.(2) A single vehicle, such as a motor crane, that has a permanently mounted boom is not considered as having either front or rear overhang as a result of the boom because the boom is an integral part of the vehicle.(3) When a single vehicle with a permanently attached boom exceeds the maximum legal length of 45 feet, a permit will not be issued if the boom projects more than 25 feet beyond the front bumper of the vehicle, or when the boom projects more than 30 feet beyond the rear bumper of the vehicle, unless an exception is granted by TxDOT, based on a route and traffic study.(4) Maximum permit length for a single vehicle is 75 feet.(5) A load extending more than 20 feet beyond the front or rearmost portion of the load carrying surface of the permitted vehicle must have a rear escort flag vehicle, unless an exception is granted by TxDOT, based on a route and traffic study.(6) A permit will not be issued for an oversize vehicle and load with:(A) more than 25 feet front overhang; or(B) more than 30 feet rear overhang, unless an exception is granted by TxDOT, based on a route and traffic study.(7) An applicant requesting a permit to move an oversize vehicle and load exceeding 125 feet overall length will be furnished with a proposed route. The applicant must physically inspect the proposed route to determine if the oversize vehicle and load can safely negotiate it, unless an exception is granted based on a route and traffic study conducted by TxDOT. A permit application and the appropriate fee are required for every route inspection.(A) The applicant must notify the department in writing whether the oversize vehicle and load can or cannot safely negotiate the proposed route.(B) If any section of the proposed route is unacceptable, the applicant shall provide the department with an alternate route around the unacceptable section.(C) Once a route is decided upon and a permit issued, the permit may not be amended unless an exception is granted by the department.(8) A permitted vehicle that is not overwidth or overheight, and does not exceed 150 feet overall length, may be moved in a convoy consisting of not more than four overlength permitted vehicles. A permitted vehicle that is not overwidth or overheight that exceeds 150 feet, but does not exceed 180 feet overall length, may be moved in a convoy consisting of not more than two overlength permitted vehicles. Convoys are subject to the requirements of subsection (k) of this section. Each permitted vehicle in the convoy must:(A) be spaced at least 1,000 feet, but not more than 2,000 feet, from any other permitted vehicle in the convoy; and(B) have a rotating amber beacon or an amber pulsating light, not less than eight inches in diameter, mounted at the rear top of the load being transported.(j) Requirements for overheight loads.(1) Overheight loads are subject to the escort requirements stated in subsection (k) of this section.(2) An applicant requesting a permit to move an oversize vehicle and load with an overall height of 19 feet or greater will be furnished with a proposed route. The applicant must physically inspect the proposed route to determine if the oversize vehicle and load can safely negotiate it, unless an exception is granted based on a route and traffic study conducted by TxDOT. A permit application and the appropriate fee are required for every route inspection.(A) The applicant must notify the department in writing whether the oversize vehicle and load can or cannot safely negotiate the proposed route.(B) If any section of the proposed route is unacceptable, the applicant shall provide the department with an alternate route around the unacceptable section.(C) Once a route is decided upon and a permit issued, the permit may not be amended unless an exception is granted by the department.(k) Escort flag vehicle requirements. Escort flag vehicle requirements are provided to facilitate the safe movement of permitted vehicles and to protect the traveling public during the movement of permitted vehicles. A permittee must provide for escort flag vehicles and law enforcement assistance when required by TxDOT. The requirements in this subsection do not apply to the movement of manufactured housing, portable building units, or portable building compatible cargo, unless stated otherwise in this chapter.(1) General.(A) Applicability. The operator of an escort flag vehicle shall, consistent with applicable law, warn the traveling public when:(i) a permitted vehicle must travel over the center line of a narrow bridge or roadway;(ii) a permitted vehicle makes any turning movement that will require the permitted vehicle to travel in the opposing traffic lanes;(iii) a permitted vehicle reduces speed to cross under a low overhead obstruction or over a bridge;(iv) a permitted vehicle creates an abnormal and unusual traffic flow pattern; or(v) in the opinion of TxDOT, warning is required to ensure the safety of the traveling public or safe movement of the permitted vehicle.(B) Law enforcement assistance. Law enforcement assistance may be required by TxDOT to control traffic when a permitted vehicle is being moved within the corporate limits of a city, or at such times when law enforcement assistance would provide for the safe movement of the permitted vehicle and the traveling public.(C) Obstructions. It is the responsibility of the permittee to contact utility companies, telephone companies, television cable companies, or other entities as they may require, when it is necessary to raise or lower any overhead wire, traffic signal, street light, television cable, sign, or other overhead obstruction. The permittee is responsible for providing the appropriate advance notice as required by each entity.(2) Escort requirements for overwidth loads. Unless an exception is granted based on a route and traffic study conducted by TxDOT, an overwidth load must:(A) have a front escort flag vehicle if the width of the load exceeds 14 feet, but does not exceed 16 feet, when traveling on a two lane roadway;(B) have a rear escort flag vehicle if the width of the load exceeds 14 feet, but does not exceed 16 feet, when traveling on a roadway of four or more lanes; and(C) have a front and a rear escort flag vehicle for all roads, when the width of the load exceeds 16 feet.(3) Escort requirements for overlength loads. Unless an exception is granted by TxDOT, based on a route and traffic study, overlength loads must have:(A) a front escort flag vehicle when traveling on a two lane roadway if the vehicle exceeds 110 feet overall length, but does not exceed 125 feet overall length;(B) a rear escort flag vehicle when traveling on a multi-lane highway if the vehicle exceeds 110 feet overall length, but does not exceed 125 feet overall length; and(C) a front and rear escort flag vehicle at all times if the permitted vehicle exceeds 125 feet overall length.(4) Escort requirements for overheight loads. Unless an exception is granted by TxDOT, based on a route and traffic study, overheight loads must have:(A) a front escort flag vehicle equipped with a height pole to ensure the vehicle and load can clear all overhead obstructions for any permitted vehicle that exceeds 17 feet in height; and(B) a front and rear escort flag vehicle for any permitted vehicle exceeding 18 feet in height.(5) Escort requirements for permitted vehicles exceeding legal limits in more than one dimension. When a load exceeds more than one dimension that requires an escort under this subsection, front and rear escort flag vehicles will be required unless an exception is granted by TxDOT.(6) Escort requirements for convoys. Convoys must have a front escort flag vehicle and a rear escort flag vehicle on all highways at all times.(7) General equipment requirements. The following special equipment requirements apply to permitted vehicles and escort flag vehicles that are not motorcycles.(A) An escort flag vehicle must be a single unit with a gross vehicle weight (GVW) of not less than 1,000 pounds nor more than 10,000 pounds.(B) An escort flag vehicle must be equipped with two flashing amber lights; one rotating amber beacon of not less than eight inches in diameter; or alternating or flashing blue and amber lights, each of which must be visible from all directions while actively engaged in escort duties for the permitted vehicle.(C) An escort flag vehicle must display a sign, on either the roof of the vehicle, or the front and rear of the vehicle, with the words "OVERSIZE LOAD" or "WIDE LOAD." The sign must be visible from the front and rear of the vehicle while escorting the permitted load. The sign must meet the following specifications:(i) at least five feet, but not more than seven feet in length, and at least 12 inches, but not more than 18 inches in height;(ii) the sign must have a yellow background with black lettering;(iii) letters must be at least eight inches, but not more than 10 inches high with a brush stroke at least 1.41 inches wide; and(iv) the sign must be visible from the front or rear of the vehicle while escorting the permitted vehicle, and the signs must not be used at any other time.(D) An escort flag vehicle must maintain two-way communications with the permitted vehicle and other escort flag vehicles involved with the movement of the permitted vehicle.(8) Equipment requirements for motorcycles.(A) An official law enforcement motorcycle may be used as a primary escort flag vehicle for a permitted vehicle traveling within the limits of an incorporated city, if the motorcycle is operated by a highway patrol officer, sheriff, or duly authorized deputy, or municipal police officer.(B) An escort flag vehicle must maintain two-way communications with the permitted vehicle and other escort flag vehicles involved with the movement of the permitted vehicle.(l) Restrictions.(1) Daytime and nighttime movement restrictions.(A) A permitted vehicle may be moved only during the daytime unless:(i) the permitted vehicle is overweight only;(ii) the permitted vehicle is traveling on an interstate highway and does not exceed 10 feet wide and 100 feet long, with front and rear overhang that complies with legal standards; or(iii) the permitted vehicle meets the criteria of clause (ii) of this subparagraph and is overweight.(B) An exception may be granted allowing nighttime movement, based on a route and traffic study conducted by TxDOT. Escort flag vehicles may be required when an exception allowing nighttime movement is granted.(2) Holiday restrictions.(A) Effective through January 10, 2025, the maximum size limits for a permit issued under Transportation Code, Chapter 623, Subchapter D, for holiday movement is 14 feet wide, 16 feet high, and 110 feet long, unless an exception is granted based on a route and traffic study conducted by TxDOT.(B) The department may restrict holiday movement of specific loads based on TxDOT's determination that the load could pose a hazard for the traveling public due to local road or traffic conditions.(3) Curfew restrictions. The operator of a permitted vehicle must observe the curfew movement restrictions published by the department.(m) General provisions.(1) Multiple commodities.(A) When a permitted commodity creates a single overdimension, two or more commodities may be hauled as one permit load, provided legal axle weight and gross weight are not exceeded, and provided an overdimension of width, length or height is not created or made greater by the additional commodities. For example, a permit issued for the movement of a 12 foot wide storage tank may also include a 10 foot wide storage tank loaded behind the 12 foot wide tank provided that legal axle weight and gross weight are not exceeded, and provided an overdimension of width, length or height is not created.(B) Subject to the restrictions in subparagraph (A) of this paragraph and the definition of a "nondivisible load or vehicle" in §219.2 of this title (relating to Definitions), an applicant requesting a permit to haul a dozer and its detached blade may be issued a permit, as a nondivisible load, if removal of the blade will decrease the overall width of the load, thereby reducing the hazard to the traveling public.(2) Oversize hauling equipment. A vehicle that exceeds the legal size limits, as set forth by Transportation Code, Chapter 621, Subchapter C, may only haul a load that exceeds legal size limits unless otherwise noted in this subchapter, but such vehicle may haul an overweight load that does not exceed legal size limits, except for the special exception granted in §219.13(c)(3) of this title (relating to Time Permits).(n) Surety bonds under Transportation Code, §623.075.(1) General requirements. The surety bond must comply with the following requirements:(A) be in the amount of $10,000;(B) be filed on a form and in a manner prescribed by the department;(C) be effective the day it is issued and expire at the end of the state fiscal year;(D) include the primary mailing address and zip code of the principal;(E) be signed by the principal; and(F) have a single entity as principal with no other principal names listed.(2) Non-resident agent. A non-resident agent with a valid Texas insurance license may issue a surety bond on behalf of an authorized insurance company when in compliance with Insurance Code, Chapter 4056.(3) Certificate of continuation. A certificate of continuation will not be accepted.(4) Electronic copy of surety bond. The department will accept an electronic copy of the surety bond in lieu of the original surety bond.</content><note type="source"><p>Source Note: The provisions of this §219.11 adopted to be effective February 21, 1999, 24 TexReg 1221; amended to be effective December 5, 2001, 26 TexReg 9920; amended to be effective January 9, 2005, 29 TexReg 12246; amended to be effective February 16, 2006, 31 TexReg 888; amended to be effective June 1, 2008, 33 TexReg 3776; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359; amended to be effective March 12, 2014, 39 TexReg 1734; amended to be effective June 28, 2015, 40 TexReg 4003; amended to be effective December 14, 2015, 40 TexReg 8900; amended tobe effective March 6, 2018, 43 TexReg 1283; amended to be effective December 30, 2020, 45 TexReg 9582; amended to be effective January 4, 2024, 48 TexReg 8383; amended to be effective July 18, 2024, 49 TexReg 5161.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scB/s219.12"><num value="219.12">§219.12</num><heading>Single-Trip Permits Issued Under Transportation Code, Chapter 623, Subchapter D</heading><content>(a) General. The information in this section applies to single-trip permits issued under Transportation Code, Chapter 623, Subchapter D. The department will issue permits under this section in accordance with the requirements of §219.11 of this title (relating to General Oversize/Overweight Permit Requirements and Procedures).(b) Overweight loads.(1) The maximum weight limits for an overweight permit are specified in §219.11(d).(2) The applicant shall pay, in addition to the single-trip permit fee of $60, the applicable highway maintenance fee.(3) The applicant must also pay the vehicle supervision fee (VSF) for a permit issued for an overweight vehicle and load exceeding 200,000 pounds gross weight.(A) The VSF is $35 if:(i) the vehicle and load do not exceed 254,300 pounds gross weight;(ii) there is at least 95 feet of overall axle spacing; and(iii) the vehicle and load do not exceed maximum permit weight on any axle or axle group, as described in §219.11(d).(B) The VSF is $500 if:(i) there is less than 95 feet of overall axle spacing;(ii) the vehicle and load exceed maximum permit weight on any axle or axle group, as described in §219.11(d); or(iii) the vehicle and load exceed 254,300 pounds gross weight. However, for a vehicle and load described in this subparagraph, the VSF is reduced from $500 to $100 if no bridges are crossed, and the VSF is reduced from $500 to $35 for an additional identical load that is to be moved over the same route within 30 days of the movement date of the original permit.(C) An applicant must pay the VSF at the time of permit application in order to offset TxDOT's costs for analyses performed in advance of issuing the permit. A request for cancellation must be in writing and received by the department prior to collection of the structural information associated with the permit application. If the application is canceled, the department will return the vehicle supervision fee.(4) An applicant applying for a permit to move a load that is required for the fulfillment of a fixed price public works contract that was entered into prior to the effective date of this section, and administered by federal, state, or local governmental entities, will not be required to pay the vehicle supervision fee, provided the applicant presents proof of the contract to the department prior to permit issuance.(5) When the department has determined that a permit can be issued for an overdimension load exceeding 200,000 pounds gross weight, all remaining fees are due at the time the permit is issued.(6) Unless the permit is issued for a load under subsection (c) of this section, this permit may not be used for a container, including a trailer, loaded with divisible cargo.(7) The following provisions apply to an application for a superheavy permit to move an overdimension load that is over 254,300 pounds gross weight, between 200,001 and 254,300 pounds gross weight with less than 95 feet overall axle spacing, or over the maximum permitted weight on any axle or axle group described in §219.11(d) of this title.(A) In consultation with TxDOT and the applicant as necessary, the department will determine a tentative route based on the physical size of the overdimension load excluding the weight. After the department provides the tentative route to the applicant, the applicant must investigate the tentative route and acknowledge in writing to the department that the tentative route is capable of accommodating the overdimension load. If the applicant tells the department that the tentative route is not capable of accommodating the overdimension load, the department will consult with TxDOT and the applicant as necessary to attempt to create a tentative route that the applicant can acknowledge is capable of accommodating the overdimension load.(B) The applicant must provide the department with the name and email address of the applicant's TxDOT-certified, licensed professional engineering firm, which TxDOT certifies under Chapter 28, Subchapter G of this title (relating to Oversize and Overweight Vehicles and Loads). Once the applicant provides the department with the name and email address of the applicant's TxDOT-certified, licensed professional engineering firm and acknowledges to the department that the tentative route is capable of accommodating the overdimension load, the department will provide the tentative route and the applicant's application information to the applicant's TxDOT-certified, licensed professional engineering firm.(C) The applicant must provide information and documents, as requested, to the applicant's TxDOT-certified, licensed professional engineering firm to enable the engineering firm to provide TxDOT with a written report under §28.86 of this title (relating to Bridge Report).(D) Before the superheavy permit may be issued, the applicant's TxDOT-certified, licensed professional engineering firm must provide TxDOT with a written report that includes a detailed structural analysis of the bridges on the tentative route, demonstrating that the bridges and culverts on the tentative route are capable of sustaining the load. The department will not issue a superheavy permit unless TxDOT provides the department with approval for the tentative route proposed by the department and acknowledged by the applicant as capable of accommodating the overdimension load.(c) Drill pipe and drill collars hauled in a pipe box.(1) A vehicle or combination of vehicles may be issued a permit under Transportation Code, §623.071, to haul drill pipe and drill collars in a pipe box.(2) The maximum width must not exceed 10 feet.(3) The axle weight limits must not exceed the maximum weight limits as specified in §219.11(d)(3).(4) The height and length must not exceed the legal limits specified in Transportation Code, Chapter 621, Subchapter C.(5) The permit will be issued for a single-trip only. For loads over 80,000 pounds, the applicant must pay the single-trip permit fee, in addition to the highway maintenance fee specified in Transportation Code, §623.077.(6) The permit is valid only for travel on any farm-to-market and ranch-to-market road, and such road will be specified on the permit; however, the permitted vehicle will not be allowed to cross any load restricted bridge when exceeding the posted capacity of the bridge.(7) Movement will be restricted to daytime only.(d) Houses.(1) The issuance of a permit for a house exceeding 20 feet in width will be based on:(A) the amount of inconvenience and hazard to the traveling public, based on traffic volume;(B) highway geometrics and time of movement; and(C) the overall width, measured to the nearest inch, of the house, including the eaves or porches.(2) The proposed route must include the beginning and ending points on a state highway.(3) A permit may be issued for the movement of an overweight house provided:(A) the applicant provides the department with the requested information regarding weights;(B) each support beam, parallel to the centerline of the highway, is equipped with an identical number of two-axle groups which may be placed directly in line and across from the other corresponding two-axle group or may be placed in a staggered offset arrangement to provide for proper weight distribution;(C) that, when a support beam is equipped with two or more two-axle groups, each two-axle group is connected to a common mechanical or hydraulic system to ensure that each two-axle group shares equally in the weight distribution at all times during the movement; and when the spacing between the two-axle groups, measured from the center of the last axle of the front group to the center of the first axle of the following group, is eight feet or more, the front two-axle group is equipped for self-steering in a manner that will guide or direct the axle group in turning movements without tire scrubbing or pavement scuffing; and(D) the department conducts a detailed analysis of each structure on the proposed route and determines the load can be moved without damaging the roads and bridges.(e) Self-propelled off-road equipment. A permit may be issued for the movement of oversize and overweight self-propelled off-road equipment under the following conditions.(1) The weight per inch of tire width must not exceed 650 pounds.(2) The rim diameter of each wheel must be a minimum of 25 inches.(3) The maximum weight per axle must not exceed 45,000 pounds.(4) The minimum spacing between axles, measured from center of axle to center of axle, must not be less than 12 feet.(5) The equipment must be moved empty.(6) The route will not include any controlled access highway, unless an exception is granted based on a route and traffic study conducted by TxDOT.</content><note type="source"><p>Source Note: The provisions of this §219.12 adopted to be effective February 21, 1999, 24 TexReg 1221; amended to be effective July 18, 1999, 24 TexReg 5218; amended to be effective January 9, 2005, 29 TexReg 12246; amended to be effective June 1, 2008, 33 TexReg 3776; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359; amended to be effective June 28, 2015, 40 TexReg 4003; amended to be effective December 14, 2015, 40 TexReg 8900; amended to be effective July 18, 2024, 49 TexReg 5161.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scB/s219.13"><num value="219.13">§219.13</num><heading>Time Permits</heading><content>(a) General information. Applications for time permits issued under Transportation Code, Chapter 622 and Chapter 623, and this section shall be made in accordance with §219.11(b) and (c) of this title (relating to General Oversize/Overweight Permit Requirements and Procedures). Permits issued under this section are governed by the requirements of §219.11(e)(1) of this title.(b) 30, 60, and 90 day permits. The following conditions apply to time permits issued for overwidth or overlength loads, or overlength vehicles, under this section.(1) Validity of Permit. Time permits are valid for a period of 30, 60, or 90 calendar days, based on the request of the applicant, and will begin on the effective date stated on the permit.(2) Weight/height limits. The permitted vehicle may not exceed the weight or height limits set forth by Transportation Code, Chapter 621, Subchapters B and C.(3) Vehicle indicated on permit. The permit will indicate only the truck or truck-tractor transporting the load; however, any properly registered trailer or semi-trailer is covered by the permit.(4) Permit routes. The permit will allow travel on a statewide basis.(5) Restrictions.(A) The permitted vehicle must not cross a load restricted bridge or load restricted road when exceeding the posted capacity of the road or bridge.(B) The permitted vehicle may travel through highway construction or maintenance areas if the dimensions do not exceed the construction restrictions as published by the department.(C) The permitted vehicle is subject to the restrictions specified in §219.11(l) of this title, and the permittee is responsible for obtaining from the department information concerning current restrictions.(6) Escort requirements. Permitted vehicles are subject to the escort requirements specified in §219.11(k) of this title.(7) Transfer of time permits. Time permits issued under this subsection are non-transferable between permittees or vehicles.(8) Amendments. With the exception of time permits issued under subsection (e)(4) of this section, time permits issued under this subsection will not be amended except in the case of permit officer error.(c) Overwidth loads. An overwidth time permit may be issued for the movement of any load or overwidth trailer, subject to subsection (a) of this section and the following conditions:(1) Width requirements.(A) A time permit will not be issued for a vehicle with a width exceeding 13 feet.(B) When multiple items are hauled at the same time, the items may not be loaded in a manner that creates a width greater than the width of the widest item being hauled.(2) Weight, height, and length requirements.(A) The permitted vehicle shall not exceed legal weight, height, or length according to Transportation Code, Chapter 621, Subchapters B and C.(B) When multiple items are hauled at the same time, the items may not be loaded in a manner that creates:(i) a height greater than 14 feet;(ii) an overlength load; or(iii) a gross weight exceeding the legal gross or axle weight of the vehicle hauling the load.(3) Movement of overwidth trailers. When the permitted vehicle is an overwidth trailer, it will be allowed to:(A) move empty to and from the job site; and(B) haul a load from the permitted vehicle's point of origin to pick up a permitted load, and to the permitted vehicle's point of origin or the permittee's place of business after dropping off a permitted load, as long as:(i) the load does not exceed legal size and weight limits under Transportation Code, Chapters 621 and 622; and(ii) the transport complies with the permit, including the time period stated on the permit.(4) Use in conjunction with other permits. An overwidth time permit may be used in conjunction with an overlength time permit.(d) Overlength loads. An overlength time permit may be issued for the transportation of overlength loads or the movement of an overlength self-propelled vehicle, subject to subsection (a) of this section and the following conditions:(1) Length requirements.(A) The maximum overall length for the permitted vehicle may not exceed 110 feet.(B) The department may issue a permit under Transportation Code, §623.071(a) for an overlength load or an overlength self-propelled vehicle that falls within the definition of a nondivisible load or vehicle.(2) Weight, height and width requirements.(A) The permitted vehicle may not exceed legal weight, height, or width according to Transportation Code, Chapter 621, Subchapters B and C.(B) A permit will not be issued when the load has more than 25 feet front overhang, or more than 30 feet rear overhang.(3) Use in conjunction with other permits. An overlength time permit may be used in conjunction with an overwidth time permit.(4) Emergency movement. A permitted vehicle transporting utility poles will be allowed emergency nighttime movement for restoring electrical utility service, provided the permitted vehicle is accompanied by a rear escort flag vehicle.(e) Annual permits.(1) General information. All permits issued under this subsection are subject to the following conditions.(A) Permits issued under this subsection are not transferable.(B) Vehicles permitted under this subsection shall be operated according to the restrictions described in §219.11(l) of this title. The permittee is responsible for obtaining information concerning current restrictions from the department.(C) Vehicles permitted under this subsection may not travel over a load restricted bridge or load restricted road when exceeding the posted capacity of the road or bridge.(D) Vehicles permitted under this subsection may travel through any highway construction or maintenance area provided the dimensions do not exceed the construction restrictions as published by the department.(E) With the exception of permits issued under paragraph (5) of this subsection, vehicles permitted under this subsection shall be operated according to the escort requirements described in §219.11(k) of this title.(2) Implements of husbandry. An annual permit may be issued for an implement of husbandry being moved by a dealer in those implements, and for harvesting equipment being moved as part of an agricultural operation. Permits issued under this paragraph are subject to the conditions described in paragraph (1) of this subsection.(A) The fee for a permit issued under this paragraph is $270, plus the highway maintenance fee specified in Transportation Code, §623.077.(B) The time period will be for one year and will start on the effective date stated on the permit.(C) The maximum width may not exceed 16 feet; maximum height may not exceed 16 feet; maximum length may not exceed 110 feet; and maximum weight may not exceed the limits stated in §219.11(d) of this title.(D) Unless stated otherwise on the permit, the permitted vehicle must travel in the outside traffic lane on multi-lane highways, when the width of the load exceeds 12 feet.(E) The permitted vehicle must be registered in accordance with Transportation Code, Chapter 502, for maximum weight for the vehicle or vehicle combination, as set forth by Transportation Code, Chapter 621.(3) Water well drilling machinery. The department may issue annual permits under Transportation Code, §623.071, for water well drilling machinery and equipment that fall within the definition of a nondivisible load or vehicle. Permits issued under this paragraph are subject to the conditions described in paragraph (1) of this subsection.(A) The fee for a permit issued under this paragraph is $270, plus the highway maintenance fee specified in Transportation Code, §623.077 for an overweight load.(B) A water well drilling machinery permit is valid for one year from the effective date stated on the permit.(C) The maximum dimensions may not exceed 16 feet wide, 14 feet 6 inches high, 110 feet long, and maximum weight may not exceed the limits stated in §219.11(d) of this title.(D) The permitted vehicle must be registered in accordance with Transportation Code, Chapter 502, for the maximum weight of the vehicle, as set forth by Transportation Code, Chapter 621.(E) A permit issued under this section authorizes a permitted vehicle to operate only on the state highway system.(4) Envelope vehicle permits.(A) The department may issue an annual permit under Transportation Code, §623.071(c), to a specific vehicle, for the movement of superheavy or oversize equipment that falls within the definition of a nondivisible load. This permit may not be used for a container, including a trailer, loaded with divisible cargo. Unless otherwise noted, permits issued under this paragraph are subject to the conditions described in paragraph (1) of this subsection.(i) Superheavy or oversize equipment operating under an annual envelope vehicle permit may not exceed:(I) 12 feet in width;(II) 14 feet in height;(III) 110 feet in length; or(IV) 120,000 pounds gross weight.(ii) Superheavy or oversize equipment operating under an annual envelope vehicle permit may not transport a load that has more than 25 feet front overhang, or more than 30 feet rear overhang.(iii) The fee for an annual envelope vehicle permit is $4,000, and is non-refundable.(iv) The time period will be for one year and will start on the effective date stated on the permit.(v) This permit authorizes operation of the permitted vehicle only on the state highway system.(vi) The permitted vehicle must comply with §219.11(d)(2) and (3) of this title.(vii) The permitted vehicle or vehicle combination must be registered in accordance with Transportation Code, Chapter 502, for maximum weight as set forth by Transportation Code, Chapter 621.(viii) A permit issued under this paragraph is non-transferable between permittees.(ix) A permit issued under this paragraph may be transferred from one vehicle to another vehicle in the permittee's fleet provided:(I) the permitted vehicle is destroyed or otherwise becomes permanently inoperable, to an extent that it will no longer be utilized, and the permittee presents proof that the negotiable certificate of title or other qualifying documentation has been surrendered to the department; or(II) the certificate of title to the permitted vehicle is transferred to someone other than the permittee, and the permittee presents proof that the negotiable certificate of title or other qualifying documentation has been transferred from the permittee.(x) A single-trip permit, as described in §219.12 of this title (relating to Single-Trip Permits Issued Under Transportation Code, Chapter 623, Subchapter D), may be used in conjunction with an annual permit issued under this paragraph for the movement of vehicles or loads exceeding the height or width limits established in subparagraph (A) of this paragraph. The department will indicate the annual permit number on any single-trip permit to be used in conjunction with a permit issued under this paragraph, and permittees will be assessed a fee of $60 for the single-trip permit.(B) The department may issue an annual permit under Transportation Code, §623.071(d), to a specific motor carrier, for the movement of superheavy or oversize equipment that falls within the definition of a nondivisible load. This permit may not be used for a container, including a trailer, loaded with divisible cargo. Unless otherwise noted, permits issued under this paragraph are subject to the conditions described in paragraph (1) of this subsection and subparagraphs (A)(i)-(viii) of this paragraph. A permit issued under this paragraph may be transferred from one vehicle to another vehicle in the permittee's fleet provided:(i) that no more than one vehicle is operated at a time; and(ii) the original certified permit is carried in the vehicle that is being operated under the terms of the permit.(C) An annual envelope permit issued under subparagraph (B) of this paragraph will be sent to the permittee via registered mail, or at the permittee's request and expense overnight delivery service. This permit may not be duplicated. This permit will be replaced only if:(i) the permittee did not receive the original permit within seven business days after its date of issuance;(ii) a request for replacement is submitted to the department within 10 business days after the original permit's date of issuance; and(iii) the request for replacement is accompanied by a notarized statement signed by a principal or officer of the permittee acknowledging that the permittee understands the permit may not be duplicated and that if the original permit is located, the permittee must return either the original or replacement permit to the department.(D) A request for replacement of a permit issued under subparagraph (B) of this paragraph will be denied if the department can verify that the permittee received the original.(E) Lost, misplaced, damaged, destroyed, or otherwise unusable permits will not be replaced. A new permit will be required.(5) Annual manufactured housing permit. The department may issue an annual permit for the transportation of new manufactured homes from a manufacturing facility to a temporary storage location, not to exceed 20 miles from the point of manufacture, in accordance with Transportation Code, §623.094. Permits issued under this paragraph are subject to the requirements of paragraph (1), subparagraphs (A), (B), (C), and (D) of this subsection.(A) A permit shall contain the name of the company or person authorized to be issued permits by Transportation Code, Chapter 623, Subchapter E.(B) The fee for a permit issued under this paragraph is $1,500. Fees are non-refundable.(C) The time period will be for one year from the effective date stated on the permit.(D) The permitted vehicle must travel in the outside traffic lane on multi-lane highways when the width of the load exceeds 12 feet.(E) Authorized movement for a vehicle permitted under this section shall be valid during daytime only.(F) Permits issued under this section are non-transferable between permittees.(6) Power line poles. An annual permit will be issued under Transportation Code, Chapter 622, Subchapter E, for the movement of poles required for the maintenance of electric power transmission and distribution lines. Permits issued under this paragraph are subject to the conditions described in paragraph (1) of this subsection.(A) The fee for the permit is $120.(B) The time period will be for one year and will start on the effective date stated on the permit.(C) The maximum length of the permitted vehicle may not exceed 75 feet.(D) The width, height and gross weight of the permitted vehicle may not exceed the limits set forth by Transportation Code, Chapter 621.(E) Vehicles permitted under this paragraph may not travel over a load restricted bridge or load zoned road when exceeding posted limits.(F) Movement will be between the hours of sunrise and sunset; however, the limitation on hours of operation does not apply to a vehicle being operated to prevent interruption or impairment of electric service, or to restore electric service that has been interrupted. When operated at nighttime, a vehicle permitted under this subsection must be accompanied by a rear escort flag vehicle.(G) The speed of the permitted vehicle may not exceed 50 miles per hour.(H) The permitted vehicle must display on the extreme end of the load:(i) two red lamps visible at a distance of at least 500 feet from the rear;(ii) two red reflectors that indicate the maximum width and are visible, when light is insufficient or atmospheric conditions are unfavorable, at all distances from 100 to 600 feet from the rear when directly in front of lawful lower beams of headlamps; and(iii) two red lamps, one on each side, that indicate the maximum overhang, and are visible at a distance of at least 500 feet from the side of the vehicle.(7) Cylindrically shaped bales of hay. An annual permit may be issued under Transportation Code, §623.017, for the movement of vehicles transporting cylindrically shaped bales of hay. Permits issued under this paragraph are subject to the conditions described in paragraph (1) of this subsection.(A) The permit fee is $10.(B) The time period will be for one year, and will start on the effective date stated on the permit.(C) The maximum width of the permitted vehicle may not exceed 12 feet.(D) The length, height, and gross weight of the permitted vehicle may not exceed the limits set forth by Transportation Code, Chapter 621.(E) Movement is restricted to daytime only.(8) Overlength load or vehicles. An annual overlength permit may be issued for the transportation of a nondivisible overlength load or the movement of a nondivisible overlength vehicle or combination of vehicles under Transportation Code, §623.071(c-1). This permit is subject to the portions of subsections (a), (b), and (d) of this section that are not limited to the duration for the 30, 60, and 90 day permits.</content><note type="source"><p>Source Note: The provisions of this §219.13 adopted to be effective February 21, 1999, 24 TexReg 1221; amended to be effective November 21, 1999, 24 TexReg 10142; amended to be effective December 5, 2001, 26 TexReg 9920; amended to be effective June 1, 2008, 33 TexReg 3776; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359; amended to be effective June 28, 2015, 40 TexReg 4003; amended to be effective December 14, 2015, 40 TexReg 8900; amended to be effective December 30, 2020, 45 TexReg 9582; amended to be effective January 4, 2024, 48 TexReg 8383; amended to be effective July 18, 2024, 49 TexReg 5161.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scB/s219.14"><num value="219.14">§219.14</num><heading>Manufactured Housing, and Industrialized Housing and Building Permits</heading><content>(a) General Information.(1) A manufactured home that exceeds size limits for motor vehicles as defined by Transportation Code, Chapter 621, Subchapters B and C, must obtain a permit from the department.(2) Pursuant to Transportation Code, Chapter 623, Subchapter E, a permit may be issued to persons registered as manufacturers, installers, or retailers with the Texas Department of Housing and Community Affairs or motor carriers registered with the department under Transportation Code, Chapter 643.(3) The department may issue a permit to the owner of a manufactured home provided that:(A) the same owner is named on the title of the manufactured home and towing vehicle;(B) or the owner presents a lease showing that the owner of the manufactured home is the lessee of the towing vehicle.(b) Permit application.(1) To qualify for a permit under this section, a person must submit an application to the department.(2) All applications shall be made in a form and by the method prescribed by the department, and at a minimum shall include the following:(A) name, customer identification number, and address of the applicant;(B) name, telephone number, and email address of contact person;(C) applicant's USDOT Number if applicant is required by law to have a USDOT Number;(D) complete description of the manufactured home, including the year, make and one of the following:(i) manufactured home's HUD label number;(ii) Texas seal number; or(iii) the complete identification number or serial number;(E) the maximum width, height and length of the vehicle and manufactured home; and(F) any other information required by law, including the information listed in Transportation Code §623.093(a).(c) Amendments to permit. Amendments can only be made to change intermediate points between the origination and destination points listed on the permit.(d) Permit provisions and conditions.(1) The overall combined length of the manufactured home and the towing vehicle includes the length of the hitch or towing device.(2) The height is measured from the roadbed to the highest elevation of the manufactured home.(3) The width of a manufactured home includes any roof or eaves extension or overhang on either side.(4) A permit will be issued for a single continuous movement not to exceed five days.(5) The department may limit the hours for travel on certain routes because of heavy traffic conditions.(6) The department will publish any limitations on movements during the national holidays, or any limitations during certain hours of heavy traffic conditions, and will make such publications available to the public prior to the limitations becoming effective.(7) The permit will contain the route for the transportation of the manufactured home from the point of origin to the point of destination.(8) The route for the transportation must be the most practical route as described in §219.11(e) of this title (relating to General Oversize/Overweight Permit Requirements and Procedures), except where construction is in progress and the permitted vehicle's dimensions exceed the construction restrictions as published by the department, or where bridge or overpass width or height would create a safety hazard.(9) A permittee may not transport a manufactured home with a void permit; a new permit must be obtained.</content><note type="source"><p>Source Note: The provisions of this §219.14 adopted to be effective October 13, 1994, 19 TexReg 7810; amended to be effective December 26, 1995, 20 TexReg 10656; amended to be effective January 8, 1998, 23 TexReg 155; amended to be effective February 21, 1999, 24 TexReg 1221; amended to be effective December 5, 2001, 26 TexReg 9920; amended to be effective February 16, 2006, 31 TexReg 888; amended to be effective January 4, 2007, 31 TexReg 10831; amended to be effective June 1, 2008, 33 TexReg 3776; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg359;amended to be effective June 28, 2015, 40 TexReg 4003; amended to be effective December 14, 2015, 40 TexReg 8900; amended to be effective December 30, 2020, 45 TexReg 9582; amended to be effective January 4, 2024, 48 TexReg 8383; amended to be effective July 18, 2024, 49 TexReg 5161.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scB/s219.15"><num value="219.15">§219.15</num><heading>Portable Building Unit Permits</heading><content>(a) General information.(1) A vehicle or vehicle combination transporting one or more portable building units and portable building compatible cargo that exceed legal length or width limits set forth by Transportation Code, Chapter 621, Subchapters B and C, may obtain a permit under Transportation Code, Chapter 623, Subchapter F.(2) In addition to the fee required by statute, the department shall collect an amount equal to any fee that would apply to the movement of cargo exceeding any applicable width limits, if such cargo were moved in a manner not governed by this section.(b) Application for permit. Applications shall be made in accordance with §219.11(c) of this title (relating to General Oversize/Overweight Permit Requirements and Procedures).(c) Permit issuance. Permit issuance is subject to the requirements of §219.11(e) and (g) of this title.(d) Non-refundable permit fee. All fees are non-refundable.(e) Permit provisions and conditions.(1) A portable building unit may only be issued a single-trip permit.(2) Portable building units may be loaded end-to-end to create an overlength permit load, provided the overall length does not exceed 80 feet.(3) Portable building units must not be loaded side-by-side to create an overwidth load, or loaded one on top of another to create an overheight load.(4) Portable building units must be loaded in a manner that will create the narrowest width for permit purposes and provide for greater safety to the traveling public.(5) The permit will be issued for a single continuous movement from the origin to the destination for an amount of time necessary to make the move, not to exceed 10 consecutive days.(6) Movement of the permitted vehicle must be made during daytime only.(7) A permittee may not transport portable building units or portable building compatible cargo with a void permit; a new permit must be obtained.</content><note type="source"><p>Source Note: The provisions of this §219.15 adopted to be effective October 13, 1994, 19 TexReg 7810; amended to be effective January 8, 1998, 23 TexReg 155; amended to be effective February 21, 1999, 24 TexReg 1221; amended to be effective February 16, 2006, 31 TexReg 888; amended to be effective June 1, 2008, 33 TexReg 3776; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359; amended to be effective June 28, 2015, 40 TexReg 4003; amended to be effective December 30, 2020, 45 TexReg 9582; amended to be effective July 18, 2024, 49 TexReg 5161.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scB/s219.16"><num value="219.16">§219.16</num><heading>Permits for Military and Governmental Agencies</heading><content>(a) The movement of an overdimension load on vehicles registered to the military or governmental agencies must obtain a permit from the department. Military or government applicants may apply for any applicable permit type issued by the department and shall follow all permit restrictions and requirements for the permit issued.(b) The overdimension load must be moved on military or governmental vehicles that are licensed with either federal or state exempt license plates.(c) The size and weight measurements of the overdimension load must not exceed the permit size and weight limits stated in §219.11(d) of this title (relating to General Oversize/Overweight Permit Requirements and Procedures), and 219.12(b)of this title (relating to Single-Trip Permits Issued Under Transportation Code, Chapter 623, Subchapter D), unless specific permission is granted by the department upon request of an authorized representative of the military or a governmental agency.(d) A surety bond is not required for an overdimension governmental or military load hauled on governmental and military vehicles.(e) The movement of an overdimension military or governmental load transported on vehicles not licensed with federal or state exempt license plates must obtain a permit, and must comply with §219.11 and §219.12.(f) A military or government entity is not required to pay the fee for a permit issued under this chapter if the load is transported only on vehicles that display federal or state exempt license plates.</content><note type="source"><p>Source Note: The provisions of this §219.16 adopted to be effective October 13, 1994, 19 TexReg 7810; amended to be effective January 8, 1998, 23 TexReg 155; amended to be effective June 1, 2008, 33 TexReg 3776; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359; amended to be effective June 28, 2015, 40 TexReg 4003.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scB/s219.17"><num value="219.17">§219.17</num><heading>Multi-state Permitting Agreements</heading><content>(a) Agreements with other jurisdictions. In accordance with Texas Transportation Code, §621.003, the director may enter into an agreement with the proper authority of another state that authorizes that authority to issue a permit on behalf of the department and authorizes the department to issue a permit on behalf of the proper authority of the other state.(b) Permit fees.(1) Permit fees collected by the department for another state under an agreement with another state shall be remitted to the state treasurer for deposit to the credit of an account in the general revenue fund to be known as the permit distributive account.(2) Fees for a permit issued by the department under authority of an agreement on behalf of another state will be assessed as outlined by the agreement.(3) Another state issuing a permit on behalf of this state shall collect fees for this state based on Texas laws and administrative rules.(c) Validity of permit issued by proper authority in another state.(1) A permit issued by the proper authority in another state under an agreement entered into by the director and that authority has the same validity in this state as a permit issued by the department.(2) The holder of a permit issued by the proper authority in another state is subject to all applicable laws of this state and all applicable rules of the department.</content><note type="source"><p>Source Note: The provisions of this §219.17 adopted to be effective December 26, 1995, 20 TexReg 10656; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359; amended to be effective June 28, 2015, 40 TexReg 4003.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c219/scC"><num value="C">SUBCHAPTER C</num><heading>PERMITS FOR OVER AXLE AND OVER GROSS WEIGHT TOLERANCES</heading><section identifier="/us/state/tx/tac/t43/p10/c219/scC/s219.30"><num value="219.30">§219.30</num><heading>Permits for Over Axle and Over Gross Weight Tolerances</heading><content>(a) Purpose. In accordance with Transportation Code, §623.011, the department is authorized under certain conditions to issue an annual permit for the operation of a vehicle within certain tolerances above legal axle and gross weight limits, as provided in Transportation Code, Chapter 621.(b) Scope. A permit may be issued to an applicant under this section to operate a vehicle that exceeds the legal axle weight by a tolerance of 10% and the legal gross weight by a tolerance of 5.0% on any county road and on any road in the state highway system provided the vehicle:(1) is not operated on the national system of interstate and defense highways at a weight greater than authorized by federal law; and(2) is not operated on a bridge for which the maximum weight and load limit has been established and posted under Transportation Code, §621.102 or §621.301, if the gross weight of the vehicle and load or the axles and wheel loads are greater than the established and posted limits, unless the bridge provides the only public vehicular access to or from the permittee's origin or destination.(c) Application for permit.(1) To qualify for a permit under this section, a person must submit an application to the department.(2) The application shall be in a form prescribed by the department and at a minimum will require the following:(A) name, customer identification number, and address of the applicant;(B) name, telephone number, and email address of contact person;(C) vehicle information, including truck year, make, license plate number and state of issuance, and vehicle identification number;(D) an indication as to whether the commodities to be transported will be agricultural or non-agricultural;(E) a list of counties in which the vehicle will operate; and(F) applicant's USDOT Number if applicant is required by law to have a USDOT Number.(3) The application shall be accompanied by:(A) the total permit fee, which includes an administrative fee of $5, the base fee, and the applicable annual fee based on the number of counties designated for travel; and(B) an original bond or irrevocable letter of credit as required in Transportation Code §623.012.(d) Issuance of permit and windshield sticker.(1) A permit and a windshield sticker will be issued on the approval of the application and each will be mailed to the applicant at the address contained in the application.(2) The permit shall be carried in the vehicle for which the permit is issued at all times.(3) The windshield sticker shall be affixed to the inside of the windshield of the vehicle in accordance with the diagram printed on the back of the sticker in a manner that will not obstruct the vision of the driver. Any attempt to remove the sticker from the windshield will render the sticker void, and will require a new permit and sticker. The windshield sticker must be removed from the vehicle upon expiration of the permit.(4) A replacement sticker for a lost, stolen, or mutilated windshield sticker may be issued, provided that the permittee submits a request on a form approved by the department which shall include a statement, signed by the permittee, affirming that the sticker was lost, stolen, or mutilated. The replacement sticker shall only be valid for the permitted vehicle. The cost for a replacement sticker is $3.00.(e) Issuance of a credit. Upon written application on a form prescribed by the department, a prorated credit for the remaining time on the permit may be issued for a vehicle that is destroyed or otherwise becomes permanently inoperable to an extent that it will no longer be utilized. The date for computing a credit will be based on the date of receipt of the credit request. The fee for a credit will be $25, and will be issued on condition that the applicant provides to the department:(1) the original permit; or(2) if the original permit no longer exists, written evidence of the destruction or permanent incapacity from the insurance carrier of the vehicle.(f) Use of credit. A credit issued under subsection (e) of this section may be used only towards the payment of permit fees under this section.(g) Lapse or termination of permit. A permit shall lapse or terminate and the windshield sticker must be removed from the vehicle:(1) when the lease of the vehicle expires;(2) on the sale of the vehicle for which the permit was issued;(3) on the sale, takeover, or dissolution of the firm, partnership, or corporation to which a permit was issued; or(4) if the permittee does not replace or replenish the letter of credit or bond as required by Transportation Code, §623.012.</content><note type="source"><p>Source Note: The provisions of this §219.30 adopted to be effective October 13, 1994, 19 TexReg 7820; amended to be effective December 26, 1995, 20 TexReg 10656; amended to be effective February 21, 1999, 24 TexReg 1221; amended to be effective November 21, 1999, 24 TexReg 10143; amended to be effective December 5, 2001, 26 TexReg 9929; amended to be effective June 1, 2008, 33 TexReg 3776; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359; amended to be effective June 28, 2015, 40 TexReg 4003; amended to be effective January4,2024, 48 TexReg 8383; amended to be effective July 18, 2024, 49 TexReg 5161.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scC/s219.31"><num value="219.31">§219.31</num><heading>Timber Permits</heading><content>(a) Purpose. This section prescribes the requirements and procedures regarding the annual permit for the operation of a vehicle or combination of vehicles that will be used to transport unrefined timber, wood chips, woody biomass, or equipment used to load timber on a vehicle under the provisions of Transportation Code, Chapter 623, Subchapter Q.(b) Application for permit.(1) To qualify for a timber permit, a person must submit an application to the department.(2) The application shall be in a form prescribed by the department and at a minimum, will require the following:(A) name, customer identification number, and address of the applicant;(B) name, telephone number, and email address of contact person;(C) vehicle information, including vehicle year, make, license plate number and state of issuance, and vehicle identification number;(D) a list of timber producing counties described in Transportation Code, §623.321(a), in which the vehicle or combination of vehicles will be operated; and(E) applicant's USDOT Number if applicant is required by law to have a USDOT Number.(3) The application shall be accompanied by:(A) the total annual permit fee required by statute; and(B) a blanket bond or irrevocable letter of credit as required by Transportation Code, §623.012, unless the applicant has a current blanket bond or irrevocable letter of credit on file with the department that complies with Transportation Code, §623.012.(c) Issuance and placement of permit and windshield sticker; restrictions.(1) A permit and a windshield sticker will be issued once the application is approved, and each will be mailed to the applicant at the address contained in the application.(2) The windshield sticker shall be affixed to the inside of the windshield of the vehicle in accordance with the diagram printed on the back of the sticker and in a manner that will not obstruct the vision of the driver. Any attempt to remove the sticker from the windshield will render the sticker void and will require a new permit and sticker.(3) A replacement sticker for a lost, stolen, or mutilated windshield sticker may be issued, provided that the permittee submits a request on a form approved by the department which shall include a statement, signed by the permittee, affirming that the sticker was lost, stolen, or mutilated. The replacement sticker shall only be valid for the permitted vehicle.(d) Notification. The financially responsible party as defined in Transportation Code, §623.323(a), shall electronically file the notification document described by §623.323(b) with the department via the form on the department's website.(e) Transfer of permit. An annual permit issued under this section is not transferable between vehicles.(f) Amendments. An annual permit issued under this section will not be amended except in the case of department error.(g) Termination of permit. An annual permit issued under this section will automatically terminate, and the windshield sticker must be removed from the vehicle:(1) on the expiration of the permit;(2) when the lease of the vehicle expires;(3) on the sale or other transfer of ownership of the vehicle for which the permit was issued;(4) on the dissolution or termination of the partnership, corporation, or other legal entity to which the permit was issued; or(5) if the permittee fails to timely replenish the bond or letter of credit as required by Transportation Code, §623.012.(h) Restrictions. Permits issued under this section are subject to the restrictions in §219.11(l) of this title.</content><note type="source"><p>Source Note: The provisions of this §219.31 adopted to be effective February 6, 2014, 39 TexReg 504; amended to be effective December 14, 2015, 40 TexReg 8900; amended to be effective December 30, 2020, 45 TexReg 9594; amended to be effective January 4, 2024, 48 TexReg 8383; amended to be effective July 18, 2024, 49 TexReg 5161.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scC/s219.32"><num value="219.32">§219.32</num><heading>Ready-Mixed Concrete Truck Permits</heading><content>(a) Purpose. This section prescribes the requirements, restrictions, and procedures regarding the annual permit for a ready-mixed concrete truck, operating on three axles, under the provisions of Transportation Code, §623.0171 and Chapter 622, Subchapter B.(b) Axles. To qualify for movement with a ready-mixed concrete truck permit, the truck may only operate on three axles, regardless of whether the truck actually has more than three axles.(c) Application for permit.(1) To qualify for a ready-mixed concrete truck permit, a person must submit an application to the department.(2) The application shall be in a form prescribed by the department and at a minimum, will require the following:(A) name, customer identification number, and address of the applicant;(B) name, telephone number, and email address of contact person;(C) vehicle information, including vehicle year, make, license plate number and state of issuance, and vehicle identification number;(D) a list of counties in which the vehicle will be operated; and(E) applicant's USDOT Number if applicant is required by law to have a USDOT Number.(3) The application shall be accompanied by the total annual permit fee of $1,000.(d) Issuance and placement of permit and windshield sticker; restrictions.(1) A permit and a windshield sticker will be issued once the application is approved, and each will be mailed to the applicant at the address contained in the application.(2) The windshield sticker shall be affixed to the inside of the windshield of the vehicle in accordance with the diagram printed on the back of the sticker and in a manner that will not obstruct the vision of the driver. Any attempt to remove the sticker from the windshield will render the sticker void and will require a new permit and sticker.(3) A replacement sticker for a lost, stolen, or mutilated windshield sticker may be issued, provided that the permittee submits a request on a form approved by the department. The request shall include a statement, signed by the permittee, affirming that the sticker was lost, stolen, or mutilated. The replacement sticker shall only be valid for the permitted vehicle.(e) Transfer of permit. An annual permit issued under this section is not transferable between vehicles.(f) Amendments. An annual permit issued under this section will not be amended except in the case of department error.(g) Termination of permit. An annual permit issued under this section will automatically terminate, and the windshield sticker must be removed from the vehicle:(1) on the expiration of the permit;(2) when the lease of the vehicle expires;(3) on the sale or other transfer of ownership of the vehicle for which the permit was issued; or(4) on the dissolution or termination of the partnership, corporation, or other legal entity to which the permit was issued.(h) Curfew restrictions. The operator of a permitted vehicle must observe the curfew movement restrictions published by the department.(i) Construction or maintenance areas.(1) Permits issued under this section authorize the operator of the permitted vehicle to travel through any state highway construction or maintenance area, provided the size and weight of the vehicle do not exceed the construction restrictions that are available on the department's website. If a permitted vehicle is delivering concrete to a state highway construction or maintenance jobsite within a construction or maintenance area, the following may provide the permittee a written exception to operate the permitted vehicle in the construction or maintenance area at a size or weight that exceeds the size and weight listed on the department's website: the Texas Department of Transportation or a Texas Department of Transportation contractor that is authorized by the Texas Department of Transportation to issue permit exceptions. The written exception must be carried in the permitted vehicle when the vehicle is on a state highway and must be provided to the department or law enforcement upon request.(2) The permittee is responsible for contacting the appropriate local jurisdiction for construction or maintenance restrictions on non-state maintained roadways.(j) Manufacturer's tire load rating. Permits issued under this section do not authorize the vehicle to exceed the manufacturer's tire load rating.(k) Distribution of fees. Fifty percent of the fees collected for permits under Transportation Code, §623.0171 shall be divided equally among all counties designated in the permit application.</content><note type="source"><p>Source Note: The provisions of this §219.32 adopted to be effective August 19, 2014, 39 TexReg 6235; amended to be effective January 4, 2024, 48 TexReg 8383; amended to be effective July 18, 2024, 49 TexReg 5161.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scC/s219.33"><num value="219.33">§219.33</num><heading>Federal Disaster Relief Permit</heading><content>(a) Purpose. In accordance with Transportation Code, Chapter 623, Subchapter R, and 23 U.S.C. §127(i), the department may issue a special permit that authorizes additional weight allowances for the transportation of certain divisible loads on state highways in Texas during a major disaster declared by the president of the United States under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. §5121 et seq.). This section prescribes the requirements, restrictions, and procedures regarding this permit.(b) Application for permit.(1) To obtain a Federal Disaster Relief Permit, a person must submit an application to the department.(2) The application shall be in a form prescribed by the department and at a minimum, will require the following:(A) name, customer identification number, and address of the applicant;(B) name, telephone number, and email address of contact person;(C) vehicle information, including vehicle year, make, license plate number and state of issuance, and vehicle identification number;(D) the applicable attestation(s); and(E) applicant's USDOT Number if applicant is required by law to have a USDOT Number.(c) Conditions and restrictions. This permit is subject to the following conditions and restrictions:(1) The vehicle and load must not exceed the following weight limits:(A) single axle--21,500 pounds;(B) two-axle group--43,000 pounds;(C) three-axle group--53,000 pounds. For the purposes of this section, a three-axle group is three consecutive axles more than 8 feet apart but less than 13 feet apart, measured from the center of the first axle to the center of the last axle in the group; and(D) gross weight--160,000 pounds.(2) The permitted vehicle must not cross a load-restricted bridge or travel on a load-restricted state highway when exceeding the posted capacity of the bridge or state highway.(3) Nighttime movement is allowed under this permit, unless prohibited by the curfew movement restrictions published by the department(4) The operator of a permitted vehicle must observe the curfew movement restrictions published by the department.(5) The permit does not authorize the vehicle to exceed the manufacturer's tire load rating.(6) The permit is not transferable from the applicant to another person or entity. Also, the permit is not transferable between vehicles.(7) The permit will expire 120 days after the date of the major disaster declaration.(8) The permit may not be used in conjunction with any other oversize or overweight permits.(9) If the vehicle is being used to deliver relief supplies, the entire load must consist of relief supplies, which may include, but are not limited to:(A) medicine and medical equipment;(B) food supplies (including feed for livestock);(C) water;(D) materials used to provide or construct temporary housing;(E) other supplies directly supporting the type of relief needed following a presidential declaration of a major disaster; and(F) other materials as authorized by federal law or regulation; the United States Department of Transportation, Federal Highway Administration; or the president of the United States.(10) If the vehicle is being used to deliver relief supplies, the permit only authorizes delivery to a destination that is part of the geographical area covered by the president's major disaster declaration.(11) If the vehicle is being used to transport materials from a geographical area covered by the president's major disaster declaration, the permit only authorizes loads which are necessary to facilitate the delivery of relief supplies to the geographical area covered by the president's major disaster declaration. An example of an authorized load is debris, as long as the removal of the debris expedites the clearing of roadways, staging areas, or locations for temporary structures in order to facilitate the delivery of relief supplies. However, the permit will only authorize such divisible overweight load if the permit expressly authorizes it.(d) Copy of permit and notice of current disaster declaration. A copy of the permit and notice of the president's current major disaster declaration, including any amendments, must be kept in the permitted vehicle until the day after the date the permit expires.</content><note type="source"><p>Source Note: The provisions of this §219.33 adopted to be effective August 19, 2014, 39 TexReg 6235; amended to be effective January 4, 2024, 48 TexReg 8383.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scC/s219.34"><num value="219.34">§219.34</num><heading>North Texas Intermodal Permit</heading><content>(a) Purpose. This section prescribes the requirements, restrictions, and procedures regarding the annual permit for transporting an intermodal shipping container under the provisions of Transportation Code, §623.0172.(b) Application for permit.(1) To qualify for a North Texas intermodal permit, a person must submit an application to the department.(2) The application shall be in a form prescribed by the department and at a minimum, will require the following:(A) name, customer identification number, and address of the applicant;(B) name, telephone number, and email address of contact person;(C) vehicle information, including vehicle year, make, license plate number and state of issuance, and vehicle identification number; and(D) applicant's USDOT Number if applicant is required by law to have a USDOT Number.(3) The application shall be accompanied by the total annual permit fee of $1,000.(c) Amendments. An annual permit issued under this section will not be amended except in the case of department error.(d) Transfer of permit. A permit issued under this section may only be transferred once during the term of the permit from one vehicle to another vehicle in the permittee's fleet provided:(1) the permitted vehicle is destroyed or otherwise becomes permanently inoperable, to an extent that it will no longer be utilized, and the permittee presents proof that the negotiable title or other qualifying documentation, as determined by the department, has been surrendered to the department; or(2) the title to the permitted vehicle is transferred to someone other than the permittee, and the permittee presents proof that the negotiable title or other qualifying documentation, as determined by the department, has been transferred from the permittee.(e) Curfew restrictions. The operator of a permitted vehicle must observe the curfew movement restrictions published by the department.(f) Construction or maintenance areas. The permitted vehicle may not travel through any state highway construction or maintenance area if prohibited by the construction restrictions published by the department.(g) Nighttime movement. Nighttime movement is allowed under this permit, unless prohibited by the curfew movement restrictions published by the department.(h) Manufacturer's tire load rating. Permits issued under this section do not authorize the vehicle to exceed the manufacturer's tire load rating.(i) A truck-tractor and semitrailer combination is only eligible for a permit issued under this section if the truck-tractor is equipped with truck blind spot systems, and each vehicle in the combination is equipped with a roll stability support safety system.(j) A truck-tractor and semitrailer combination is only eligible for a permit issued under this section if the distance between the front axle of the truck-tractor and the last axle of the semitrailer, measured longitudinally, is approximately 647 inches. For the purposes of this subsection, "approximately 647 inches" means the distance can be up to 15 percent above 647 inches for a total distance of 744.05 inches.</content><note type="source"><p>Source Note: The provisions of this §219.34 adopted to be effective January 1, 2018, 42 TexReg 7730; amended to be effective July 15, 2018, 43 TexReg 4769; amended to be effective January 4, 2024, 48 TexReg 8383; amended to be effective July 18, 2024, 49 TexReg 5161.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scC/s219.35"><num value="219.35">§219.35</num><heading>Fluid Milk Transport Permit</heading><content>(a) Purpose. This section prescribes the requirements, restrictions, and procedures regarding the annual permit for transporting fluid milk under the provisions of Transportation Code, Chapter 623, Subchapter V.(b) Application for permit.(1) To qualify for a fluid milk transport permit, a person must submit an application to the department.(2) The application shall be in a form prescribed by the department and at a minimum, will require the following:(A) name, customer identification number, and address of the applicant;(B) name, telephone number, and email address of contact person;(C) vehicle information, including vehicle year, make, license plate number and state of issuance, and vehicle identification number;(D) a list of counties in which the vehicle will be operated; and(E) applicant's USDOT Number if applicant is required by law to have a USDOT Number.(3) The application shall be accompanied by the total annual permit fee of $1,200.(c) Issuance and placement of permit and windshield sticker; restrictions.(1) A permit and a windshield sticker will be issued once the application is approved, and each will be mailed to the applicant at the address contained in the application.(2) The windshield sticker shall be affixed to the inside of the windshield of the vehicle in accordance with the diagram printed on the back of the sticker and in a manner that will not obstruct the vision of the driver. Any attempt to remove the sticker from the windshield will render the sticker void and will require a new permit and sticker.(3) A replacement sticker for a lost, stolen, or mutilated windshield sticker may be issued, provided that the permittee submits a request on a form approved by the department which shall include a statement, signed by the permittee, affirming that the sticker was lost, stolen, or mutilated. The replacement sticker shall only be valid for the permitted vehicle.(d) Amendments. An annual permit issued under this section will not be amended except in the case of department error.(e) Transfer of permit. A permit issued under this section may only be transferred once during the term of the permit from one vehicle to another vehicle in the permittee's fleet provided:(1) the permitted vehicle is destroyed or otherwise becomes permanently inoperable, to an extent that it will no longer be utilized, and the permittee presents proof that the negotiable title or other qualifying documentation, as determined by the department, has been surrendered to the department; or(2) the title to the permitted vehicle is transferred to someone other than the permittee, and the permittee presents proof that the negotiable title or other qualifying documentation, as determined by the department, has been transferred from the permittee.(f) Termination of permit. An annual permit issued under this section will automatically terminate, and the windshield sticker must be removed from the vehicle:(1) on the expiration of the permit;(2) when the lease of the vehicle expires;(3) on the sale or other transfer of ownership of the vehicle for which the permit was issued; or(4) on the dissolution or termination of the partnership, corporation, or other legal entity to which the permit was issued.(g) Curfew restrictions. The operator of a permitted vehicle must observe the curfew movement restrictions published by the department.(h) Construction or maintenance areas.(1) The permitted vehicle may not travel through any state highway construction or maintenance area if prohibited by the construction restrictions published by the department.(2) The permittee is responsible for contacting the appropriate local jurisdiction for construction or maintenance restrictions on non-state maintained roadways.(i) Nighttime movement. Nighttime movement is allowed under this permit, unless prohibited by the curfew movement restrictions published by the department.(j) Manufacturer's tire load rating. Permits issued under this section do not authorize the vehicle to exceed the manufacturer's tire load rating.(k) A truck-tractor and semitrailer combination is only eligible for a permit issued under this section if the truck-tractor is equipped with truck blind spot systems, and each vehicle in the combination is equipped with a roll stability support safety system.</content><note type="source"><p>Source Note: The provisions of this §219.35 adopted to be effective January 1, 2018, 42 TexReg 7730; amended to be effective July 15, 2018, 43 TexReg 4769; amended to be effective January 4, 2024, 48 TexReg 8383; amended to be effective July 18, 2024, 49 TexReg 5161.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scC/s219.36"><num value="219.36">§219.36</num><heading>Intermodal Shipping Container Port Permit</heading><content>(a) Purpose. This section prescribes the requirements, restrictions, and procedures regarding the annual permit for transporting an intermodal shipping container under the provisions of Transportation Code, Chapter 623, Subchapter U.(b) Application for permit.(1) To qualify for an intermodal shipping container port permit, a person must submit an application to the department.(2) The application shall be in a form prescribed by the department and at a minimum, will require the following:(A) name, customer identification number, and address of the applicant;(B) name, telephone number, and email address of contact person;(C) vehicle information, including vehicle year, make, license plate number and state of issuance, and vehicle identification number;(D) a list of counties in which the vehicle will be operated;(E) a list of municipalities in which the vehicle will be operated; and(F) applicant's USDOT Number if applicant is required by law to have a USDOT Number.(3) The application shall be accompanied by the total annual permit fee of $6,000.(c) Issuance and placement of permit and windshield sticker; restrictions.(1) A permit and a windshield sticker will be issued once the application is approved, and each will be mailed to the applicant at the address contained in the application.(2) The windshield sticker shall be affixed to the inside of the windshield of the vehicle in accordance with the diagram printed on the back of the sticker and in a manner that will not obstruct the vision of the driver. Any attempt to remove the sticker from the windshield will render the sticker void and will require a new permit and sticker.(3) A replacement sticker for a lost, stolen, or mutilated windshield sticker may be issued, provided that the permittee submits a request on a form approved by the department which shall include a statement, signed by the permittee, affirming that the sticker was lost, stolen, or mutilated. The replacement sticker shall only be valid for the permitted vehicle.(d) Amendments. An annual permit issued under this section will not be amended except in the case of department error.(e) Transfer of permit. A permit issued under this section may only be transferred once during the term of the permit from one vehicle to another vehicle in the permittee's fleet provided:(1) the permitted vehicle is destroyed or otherwise becomes permanently inoperable, to an extent that it will no longer be utilized, and the permittee presents proof that the negotiable title or other qualifying documentation, as determined by the department, has been surrendered to the department; or(2) the title to the permitted vehicle is transferred to someone other than the permittee, and the permittee presents proof that the negotiable title or other qualifying documentation, as determined by the department, has been transferred from the permittee.(f) Termination of permit. An annual permit issued under this section will automatically terminate, and the windshield sticker must be removed from the vehicle:(1) on the expiration of the permit;(2) when the lease of the vehicle expires;(3) on the sale or other transfer of ownership of the vehicle for which the permit was issued; or(4) on the dissolution or termination of the partnership, corporation, or other legal entity to which the permit was issued.(g) Curfew restrictions. The operator of a permitted vehicle must observe the curfew movement restrictions published by the department.(h) Construction or maintenance areas.(1) The permitted vehicle may not travel through any state highway construction or maintenance area if prohibited by the construction restrictions published by the department.(2) The permittee is responsible for contacting the appropriate local jurisdiction for construction or maintenance restrictions on non-state maintained roadways.(i) Nighttime movement. Nighttime movement is allowed under this permit, unless prohibited by the curfew movement restrictions published by the department.(j) Manufacturer's tire load rating. Permits issued under this section do not authorize the vehicle to exceed the manufacturer's tire load rating.(k) A truck-tractor and semitrailer combination is only eligible for a permit issued under this section if the truck-tractor is equipped with truck blind spot systems, and each vehicle in the combination is equipped with a roll stability support safety system.(l) A truck-tractor and semitrailer combination is only eligible for a permit issued under Transportation Code, §623.402(a) if the distance between the front axle of the truck-tractor and the last axle of the semitrailer, measured longitudinally, is approximately 647 inches. For the purposes of this subsection, "approximately 647 inches" means the distance can be up to 15 percent above 647 inches for a total distance of 744.05 inches.(m) A truck-tractor and semitrailer combination is only eligible for a permit issued under Transportation Code, §623.402(b) if the distance between the front axle of the truck-tractor and the last axle of the semitrailer, measured longitudinally, is approximately 612 inches. For the purposes of this subsection, "approximately 612 inches" means the distance can be up to 15 percent above 612 inches for a total distance of 703.8 inches.</content><note type="source"><p>Source Note: The provisions of this §219.36 adopted to be effective January 1, 2018, 42 TexReg 7730; amended to be effective July 15, 2018, 43 TexReg 4769; amended to be effective January 4, 2024, 48 TexReg 8383; amended to be effective July 18, 2024, 49 TexReg 5161.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c219/scD"><num value="D">SUBCHAPTER D</num><heading>PERMITS FOR OVERSIZE AND OVERWEIGHT OIL WELL RELATED VEHICLES</heading><section identifier="/us/state/tx/tac/t43/p10/c219/scD/s219.40"><num value="219.40">§219.40</num><heading>Purpose and Scope</heading><content>In accordance with Transportation Code, Chapter 623, Subchapter G, the department may issue a permit for the operation of an oil well clean-out, drilling, servicing, or swabbing unit, which is a piece of fixed-load mobile machinery or equipment used for the purpose of cleaning out, drilling, servicing or swabbing oil wells, when the unit cannot comply with one or more of the restrictions set out in Transportation Code, §621.101. The sections in this subchapter set forth the requirements and procedures applicable to those permits.</content><note type="source"><p>Source Note: The provisions of this §219.40 adopted to be effective February 21, 1999, 24 TexReg 1221; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scD/s219.41"><num value="219.41">§219.41</num><heading>General Requirements</heading><content>(a) General information.(1) Permits issued under this subchapter, with the exception of permits issued under §219.45 of this title (relating to Permits for Vehicles Transporting Liquid Products Related to Oil Well Production), are subject to the requirements of this section.(2) Oil well related vehicles are eligible for:(A) single-trip mileage permits;(B) quarterly hubometer permits; and(C) annual permits.(b) Permit application. All applications shall be made on a form and in a manner prescribed by the department. An applicant shall provide all applicable information, including:(1) name, customer identification number, and address of the applicant;(2) name, telephone number, and email address of contact person;(3) year, make, and vehicle identification number of the unit;(4) width, height, and length of the unit;(5) unit axle and tire information, including number of axles, distance between axles, gauge per axle, axle weights, number of tires, and tire size;(6) applicant's USDOT Number if applicant is required by law to have a USDOT Number; and(7) any other information required by law.(c) Restrictions.(1) A vehicle permitted under this subchapter is subject to the restrictions specified in §219.11(l)(2) and (3), and the permittee is responsible for obtaining information concerning current restrictions from the department.(2) Vehicles permitted under this subchapter may not cross a load restricted bridge when exceeding the posted capacity of such. Vehicles permitted under this subchapter may travel on a load restricted road unless otherwise noted.(3) A vehicle permitted under this subchapter may travel through highway construction or maintenance areas provided the dimensions do not exceed the construction restrictions as published by the department.(4) A unit exceeding nine feet in width, 14 feet in height, or 65 feet in length is restricted to daytime movement only.(d) Transferability. Unless otherwise noted, a permit issued under this subchapter may not be transferred between units or permittees.(e) Escort requirements. In addition to any other escort requirements specified in this subchapter, vehicles permitted under this subchapter are subject to the escort requirements specified in §219.11(k).</content><note type="source"><p>Source Note: The provisions of this §219.41 adopted to be effective February 21, 1999, 24 TexReg 1221; amended to be effective November 21, 1999, 24 TexReg 10143; amended to be effective January 4, 2007, 31 TexReg 10831; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359; amended to be effective June 28, 2015, 40 TexReg 4003; amended to be effective December 14, 2015, 40 TexReg 8900; amended to be effective January 4, 2024, 48 TexReg 8383; amended to be effective July 18, 2024, 49 TexReg 5161.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scD/s219.42"><num value="219.42">§219.42</num><heading>Single-Trip Mileage Permits</heading><content>(a) General information.(1) Permits issued under this section are subject to the requirements of §219.41 of this title (relating to General Requirements).(2) A single-trip mileage permit:(A) is limited to a maximum of seven consecutive days;(B) routes the vehicle from the point of origin to the point of destination and has the route listed on the permit; and(C) allows the unit to be returned to the point of origin on the same permit, provided the return trip is made within the time period stated in the permit.(3) A unit exceeding 175,000 pounds gross weight must:(A) have front and rear escort flag vehicles to prevent traffic from traveling beside the unit as it crosses a bridge;(B) cross all multi-lane bridges by centering the unit on a lane line;(C) cross all two-lane bridges in the center of the bridge; and(D) cross each bridge at a speed not greater than 20 miles per hour.(4) A unit exceeding 12 feet in width must be centered in the outside traffic lane of any highway that has paved shoulders.(b) Maximum permit weight limits.(1) The maximum permit weight for any single axle must not exceed 30,000 pounds or 850 pounds per inch of tire width, whichever is less.(2) The maximum permit weight for any group of axles on a unit will be determined by calculating the "W" weight for the group, using the formulas shown in Figure 2: 43 TAC §219.42(f), titled "Maximum Permit Weight Formulas," and comparing the calculated "W" weight with the corresponding "W" weight that is established in Figure 1: 43 TAC §219.42(f), titled "Maximum Permit Weight Table."(3) The maximum permit weight per inch of tire width for axles that are steerable must not exceed 950 pounds, and the maximum permit weight per inch of tire width for axles that are not steerable must not exceed 850 pounds.(4) A unit that does not have any group of axles that exceeds the limits established in Figure 1: 43 TAC §219.42(f), "Maximum Permit Weight Table," and Figure 2: 43 TAC §219.42(f), "Maximum Permit Weight Formulas" will be permitted with a single-trip mileage or quarterly hubometer permit for travel on any route that does not include a load restricted bridge.(5) A unit that has any group of axles that exceeds the limits established by Figure 1: 43 TAC §219.42(f), "Maximum Permit Weight Table," and Figure 2: 43 TAC §219.42(f), "Maximum Permit Weight Formulas" will be eligible, on an individual case-by-case basis, for a single-trip mileage permit only; permit approval or denial will be based on a detailed route study and an analysis conducted by TxDOT of each bridge on the proposed travel route to determine if the road(s) and bridge(s) are capable of sustaining the movement.(6) A road or bridge that has been analyzed and determined to be incapable of sustaining the unit will be excluded from the permit route.(c) Permit application and issuance.(1) An application for a single-trip mileage permit under this section must be made in accordance with §219.41(b) of this title and shall also include the origin and destination points of the unit.(2) Upon receipt of the application, the department will review and verify unit size and weight information, check route and mileage to be traveled, compute the permit fee, and advise the applicant of the permit fee.(3) Upon receipt of the permit fee, the department will advise the applicant of the permit number, and will provide a copy of the permit to the applicant.(d) Permit fees and refunds.(1) Minimum fee. The minimum fee for a single-trip mileage permit is either the calculated permit fee or $31, whichever is the greater amount.(2) Permit fee calculation. The fee for a single-trip mileage permit is calculated by multiplying the number of miles traveled, the highway use factor, and the total rate per mile, and then adding the indirect cost share to the product.(A) Highway use factor. The highway use factor for a single trip mileage permit is 0.6.(B) Total rate per mile. The total rate per mile is the combined mileage rates for width, height, and weight for the unit. For a trailer-mounted unit, the total rate per mile is based on the overall width, overall height, and all axle weights, including the truck-tractor axles.(i) The mileage rate for width is $.06 per mile for each foot (or fraction thereof) above legal width.(ii) The mileage rate for height is $.04 per mile for each foot (or fraction thereof) above legal height.(iii) The mileage rate for a single axle or any axle within a group that exceeds 20,000 pounds, but is less than or equal to 25,000 pounds, is calculated by multiplying $.045 times the amount by which the axle or axle group weight exceeds the legal weight for the axle or axle group and dividing the resultant figure by 1,000 pounds.(iv) The mileage rate for a single axle or any axle within a group that exceeds 25,000 pounds, but is less than or equal to 30,000 pounds, is calculated by multiplying $.055 times the amount by which the axle or axle group weight exceeds the legal weight for the axle or axle group and dividing the resultant figure by 1,000 pounds.(3) Permit fees for trailer-mounted units. The permit fee for a trailer-mounted unit is based on the overall width, overall height, and all axle weights, including the truck-tractor axles.(4) Refunds. Fees for permits issued under this section are non-refundable.(e) Amendments. A single-trip mileage permit may not be amended unless an exception is granted by the department.(f) Weight table and formulas. The following table entitled "Maximum Permit Weight Table" is Figure 1: 43 TAC §219.42(f), and the list of formulas entitled, "Maximum Permit Weight Formulas," is Figure 2: 43 TAC §219.42(f).Attached GraphicAttached Graphic</content><note type="source"><p>Source Note: The provisions of this §219.42 adopted to be effective February 21, 1999, 24 TexReg 1221; amended to be effective November 21, 1999, 24 TexReg 10143; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359; amended to be effective June 28, 2015, 40 TexReg 4003; amended to be effective December 14, 2015, 40 TexReg 8900; amended to be effective March 6, 2018, 43 TexReg 1283; amended to be effective December 30, 2020, 45 TexReg 9582; amended to be effective July 18, 2024, 49 TexReg 5161.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scD/s219.43"><num value="219.43">§219.43</num><heading>Quarterly Hubometer Permits</heading><content>(a) General information.(1) Permits issued under this section are subject to the requirements of §219.41 of this title (relating to General Requirements).(2) A quarterly hubometer permit:(A) is effective for three consecutive months;(B) allows the unit to travel on all state-maintained highways; and(C) allows the unit to travel on a state-wide basis.(3) A unit permitted under this subsection must not exceed any of the following dimensions:(A) 12 feet in width;(B) 14 feet, 6 inches in height; and(C) 95 feet in length.(4) With the exception of units that are overlength only, a unit operated with a permit issued under this section must be equipped with a hubometer. The permittee must maintain the hubometer in good working condition.(5) A unit exceeding 175,000 pounds gross weight must:(A) have front and rear escort flag vehicles to prevent traffic from traveling beside the unit as it crosses a bridge;(B) cross all multi-lane bridges by centering the unit on a lane line;(C) cross all two-lane bridges in the center of the bridge; and(D) cross each bridge at a speed not greater than 20 miles per hour.(b) Maximum permit weight limits.(1) The maximum permit weight for any single axle must not exceed 30,000 pounds or 850 pounds per inch of tire width, whichever is less.(2) The maximum permit weight for any group of axles on a unit will be determined by calculating the "W" weight for the group, using the formulas in Figure 2: 43 TAC §219.42(f), "Maximum Permit Weight Formulas," and comparing the calculated "W" weight with the corresponding "W" weight that is established in Figure 1: 43 TAC §219.42(f), "Maximum Permit Weight Table."(3) The maximum permit weight per inch of tire width for axles that are steerable must not exceed 950 pounds, and the maximum permit weight per inch of tire width for axles that are not steerable must not exceed 850 pounds.(4) A unit that does not have any group of axles that exceeds the limits established in Figure 1: 43 TAC §219.42(f), "Maximum Permit Weight Table," and Figure 2: 43 TAC §219.42(f), "Maximum Permit Weight Formulas" will be permitted with a single-trip mileage or quarterly hubometer permit for travel on any route that does not include a load restricted bridge.(5) A unit that has any group of axles that exceeds the limits established by Figure 1: 43 TAC §219.42(f), "Maximum Permit Weight Table," and Figure 2: 43 TAC §219.42(f), "Maximum Permit Weight Formulas" will be eligible, on an individual case-by-case basis, for a single-trip mileage permit only; permit approval or denial will be based on a detailed route study and an analysis conducted by TxDOT of each bridge on the proposed travel route to determine if the road(s) and bridge(s) are capable of sustaining the movement.(6) A bridge that has been analyzed and determined to be incapable of sustaining the unit will be excluded from the permit route.(c) Initial permit application and issuance.(1) An application for an initial quarterly hubometer permit under this section must be made in accordance with §219.41(b) of this title. In addition, the applicant must provide the current hubometer mileage reading and an initial $31 processing fee.(2) Upon verification of the unit information and receipt of the permit fee, the department will provide a copy of the permit to the applicant, as well as a renewal application.(d) Permit renewals and closeouts.(1) An application for a permit renewal or closeout must be made on a form and in the manner prescribed by the department.(2) Upon receipt of the renewal application, the department will verify unit information, check mileage traveled on the last permit, calculate the new permit fee, and advise the applicant of the permit fee.(e) Permit fees.(1) Minimum fee. The minimum fee for a quarterly hubometer permit is either the calculated permit fee or $31, whichever is the greater amount.(2) Fees for overlength units. A unit that is overlength only must obtain a quarterly hubometer permit with a fee of $31, but is not required to have a hubometer.(3) Quarterly hubometer permit fee calculation. The permit fee for a quarterly hubometer permit is calculated by multiplying the hubometer mileage, the highway use factor, and the total rate per mile, and then adding the indirect cost share to the product.(A) Hubometer mileage. Mileage for a quarterly hubometer permit is determined by the unit's current hubometer mileage reading minus the unit's hubometer mileage reading from the previous quarterly hubometer permit.(B) Highway use factor. The highway use factor for a quarterly hubometer permit is 0.3.(C) Total rate per mile. The total rate per mile is the combined mileage rates for width, height, and weight for the unit. The rate per mile for a trailer-mounted unit is based on the overall width, overall height, and all axle weights, including the truck-tractor axles.(i) The mileage rate for width is $.06 per mile for each foot (or fraction thereof) above legal width.(ii) The mileage rate for height is $.04 per mile for each foot (or fraction thereof) above legal height.(iii) The mileage rate for a single axle or any axle within a group that exceeds 20,000 pounds, but is less than or equal to 25,000 pounds, is calculated by multiplying $.045 times the amount by which the axle or axle group weight exceeds the legal weight for the axle or axle group and dividing the resultant figure by 1,000 pounds.(iv) The mileage rate for a single axle or any axle within a group that exceeds 25,000 pounds, but is less than or equal to 30,000 pounds, is calculated by multiplying $.055 times the amount by which the axle or axle group weight exceeds the legal weight for the axle or axle group and dividing the resultant figure by 1,000 pounds.(4) Permit fees for trailer-mounted units. The permit fee for a trailer-mounted unit is based on the overall width, overall height, and all axle weights, including the truck-tractor axles.(f) Amendments. A quarterly hubometer permit may be amended only to change the following:(1) if listed on the permit, the hubometer serial number; or(2) the license plate number.</content><note type="source"><p>Source Note: The provisions of this §219.43 adopted to be effective February 21, 1999, 24 TexReg 1221; amended to be effective November 21, 1999, 24 TexReg 10143; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359; amended to be effective June 28, 2015, 40 TexReg 4003; amended to be effective December 14, 2015, 40 TexReg 8900; amended to be effective March 6, 2018, 43 TexReg 1283; amended to be effective December 30, 2020, 45 TexReg 9582; amended to be effective January 4, 2024, 48 TexReg 8383; amended to be effective July 18, 2024, 49 TexReg 5161.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scD/s219.44"><num value="219.44">§219.44</num><heading>Annual Permits</heading><content>(a) General information. Permits issued under this section are subject to the requirements of §219.41 of this title (relating to General Requirements).(1) Annual self-propelled oil well servicing unit permits. The fee for an annual self-propelled oil well servicing unit permit is $52 per axle. The indirect cost share is included in this fee.(2) Annual oil field rig-up truck permits.(A) An oil field rig-up truck permitted under this section must not exceed:(i) legal height or length limits, as provided in Transportation Code, Chapter 621, Subchapter C;(ii) 850 pounds per inch of tire width on the front axle;(iii) 25,000 pounds on the front axle; or(iv) legal weight on all other axles.(B) An oil field rig-up truck, operating under an annual permit, must be registered in accordance with Transportation Code, Chapter 502.(C) The annual permit fee for an oil field rig-up truck is $52. The indirect cost share is included in this fee.(D) An annual permit for an oil field rig-up truck allows the unit to travel at nighttime, provided the unit does not exceed nine feet in width.(3) A permit issued under this section may not be amended.(4) A permit issued under this section allows travel on a statewide basis and on all state maintained highways.(b) Permit application and issuance.(1) An application for an annual permit under this section must be made in accordance with §219.41(b) of this title.(2) Upon receipt of the application and the appropriate fees, the department will provide a copy of the permit to the applicant.</content><note type="source"><p>Source Note: The provisions of this §219.44 adopted to be effective February 21, 1999, 24 TexReg 1221; amended to be effective November 21, 1999, 24 TexReg 10143; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359; amended to be effective June 28, 2015, 40 TexReg 4003; amended to be effective March 6, 2018, 43 TexReg 1283; amended to be effective July 18, 2024, 49 TexReg 5161.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scD/s219.45"><num value="219.45">§219.45</num><heading>Permits for Vehicles Transporting Liquid Products Related to Oil Well Production</heading><content>(a) General provisions. This section applies to the following vehicles which may secure an annual permit issued under provisions of Transportation Code, Chapter 623, Subchapter G, to haul liquid loads over all state-maintained highways.(1) A vehicle combination consisting of a truck-tractor and semi-trailer specifically designed with a tank and pump unit for transporting:(A) liquid fracking products, liquid oil well waste products, or unrefined liquid petroleum products to an oil well; or(B) unrefined liquid petroleum products or liquid oil well waste products from an oil well not connected to a pipeline.(2) A permit issued under this section is effective for one year beginning on the effective date.(b) Application for permit.(1) An application for an annual permit under this section must be made in accordance with §219.41(b) of this title (relating to General Requirements).(2) The permit request must be received by the department not more than 14 days prior to the date that the permit is to begin.(c) Permit qualifications and requirements.(1) The semi-trailer must be of legal size and weight.(2) Only one semi-trailer will be listed on a permit.(3) The permit may be transferred from an existing trailer being removed from service and placed on a new trailer being added to the permittee's fleet, if the permittee supplies the department with:(A) the existing valid permit number;(B) the make and model of the new trailer;(C) the license plate number of the new trailer; and(D) a transfer fee of $31 per permit to cover administrative costs.(d) Fees.(1) The permit fee is based on the axles of the semi-trailer and the drive axles of the truck-tractor. The fee for the permit, which includes the indirect cost share, is determined as follows:(A) $52 per axle--to haul liquid oil well waste products or unrefined liquid petroleum products from oil wells not connected by a pipeline and return empty;(B) $52 per axle--to haul liquid products related to oil well production to an oil well and return empty; and(C) $104 per axle--to haul liquid products related to oil well production to an oil well and return with liquid oil well waste products or unrefined liquid petroleum products from an oil well not connected to a pipeline.(2) Each permittee will be charged a $20 issuance fee in addition to the permit fee.(e) Permit movement conditions. The permit load must not cross any load-restricted bridge when exceeding the posted capacity of such.</content><note type="source"><p>Source Note: The provisions of this §219.45 adopted to be effective February 21, 1999, 24 TexReg 1221; amended to be effective November 21, 1999, 24 TexReg 10143; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359; amended to be effective June 28, 2015, 40 TexReg 4003; amended to be effective December 14, 2015, 40 TexReg 8900; amended to be effective March 6, 2018, 43 TexReg 1283; amended to be effective July 18, 2024, 49 TexReg 5161.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c219/scE"><num value="E">SUBCHAPTER E</num><heading>PERMITS FOR OVERSIZE AND OVERWEIGHT UNLADEN LIFT EQUIPMENT MOTOR VEHICLES</heading><section identifier="/us/state/tx/tac/t43/p10/c219/scE/s219.60"><num value="219.60">§219.60</num><heading>Purpose</heading><content>The sections in this subchapter set forth the requirements and procedures applicable to permits issued for unladen lift equipment motor vehicles under the provisions of Transportation Code, Chapter 623, Subchapters I and J.</content><note type="source"><p>Source Note: The provisions of this §219.60 adopted to be effective February 21, 1999, 24 TexReg 1221; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359; amended to be effective September 18, 2018, 43 TexReg 6003; amended to be effective July 18, 2024, 49 TexReg 5161.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scE/s219.61"><num value="219.61">§219.61</num><heading>General Requirements for Permits for Oversize and Overweight Unladen Lift Equipment Motor Vehicles</heading><content>(a) General information.(1) Unless otherwise noted, permits issued under this subchapter are subject to the requirements of this section.(2) Unladen lift equipment motor vehicles are eligible for an annual permit under this subchapter.(3) Unladen lift equipment motor vehicles are also eligible for the following permits under this subchapter at weights above those established by §219.11(d)(2) of this title (relating to General Oversize/Overweight Permit Requirements and Procedures):(A) single-trip mileage permits; and(B) quarterly hubometer permits.(b) Permit application. An application shall be made on a form and in a manner prescribed by the department. The applicant shall provide all applicable information, including:(1) name, customer identification number, and address of the applicant;(2) name, telephone number, and email address of contact person;(3) year, make and vehicle identification number of the unladen lift equipment motor vehicle;(4) width, height, and length of the unladen lift equipment motor vehicle;(5) unladen lift equipment motor vehicle axle and tire information, including the number of axles, distance between axles, gauge per axle, axle weights, number of tires, and tire size;(6) applicant's USDOT Number if applicant is required by law to have a USDOT Number; and(7) any other information required by law.(c) Restrictions.(1) An unladen lift equipment motor vehicle permitted under this subchapter is subject to the restrictions specified in §219.11(l)(2) and (3) of this title, and the permittee is responsible for obtaining information concerning current restrictions from the department.(2) An unladen lift equipment motor vehicle permitted under this subchapter may travel through highway construction or maintenance areas provided the dimensions do not exceed the construction restrictions as published by the department.(3) An unladen lift equipment motor vehicle permitted under this subchapter may only be operated during daytime, unless:(A) the unladen lift equipment motor vehicle is overweight only; or(B) the unladen lift equipment motor vehicle complies with one of the following, regardless of whether the unladen lift equipment motor vehicle is overweight:(i) the unladen lift equipment motor vehicle does not exceed nine feet in width, 14 feet in height, or 65 feet in length; or(ii) the unladen lift equipment motor vehicle is accompanied by a front and rear escort flag vehicle and does not exceed:(I) 10 feet, 6 inches in width;(II) 14 feet in height; or(III) 95 feet in length.(d) Transferability. Unless otherwise noted, a permit issued under this subchapter may not be transferred between unladen lift equipment motor vehicles or between permittees.(e) Escort requirements. In addition to any other escort requirements specified in this subchapter, unladen lift equipment motor vehicles permitted under this subchapter are subject to the escort requirements specified in §219.11(k) of this title.</content><note type="source"><p>Source Note: The provisions of this §219.61 adopted to be effective February 21, 1999, 24 TexReg 1221; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359; amended to be effective June 28, 2015, 40 TexReg 4003; amended to be effective December 14, 2015, 40 TexReg 8900; amended to be effective September 18, 2018, 43 TexReg 6003; amended to be effective December 30, 2020, 45 TexReg 9582; amended to be effective January 4, 2024, 48 TexReg 8383; amended to be effectiveJuly 18, 2024, 49 TexReg 5161.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scE/s219.62"><num value="219.62">§219.62</num><heading>Single-Trip Mileage Permits</heading><content>(a) General information.(1) Permits issued under this section are subject to the requirements of §219.61 of this title (relating to General Requirements for Permits for Oversize and Overweight Unladen Lift Equipment Motor Vehicles).(2) A single-trip mileage permit:(A) is limited to a maximum of seven consecutive days;(B) is routed from the point of origin to the point of destination and has the route listed on the permit; and(C) allows the unladen lift equipment motor vehicle to be returned to the point of origin on the same permit, provided the return trip is made within the time period stated in the permit.(3) An unladen lift equipment motor vehicle exceeding 175,000 pounds gross weight must:(A) have front and rear escort flag vehicles to prevent traffic from traveling beside the unladen lift equipment motor vehicle as it crosses a bridge;(B) cross all multi-lane bridges by centering the unladen lift equipment motor vehicle on a lane line;(C) cross all two-lane bridges in the center of the bridge; and(D) cross each bridge at a speed not greater than 20 miles per hour.(4) An unladen lift equipment motor vehicle exceeding 12 feet in width must be centered in the outside traffic lane of any highway that has paved shoulders.(5) Except as otherwise provided in this section, the permitted unladen lift equipment motor vehicle must not cross a load-restricted bridge when exceeding the posted capacity of the bridge.(b) Maximum permit weight limits.(1) The maximum permit weight for any single axle must not exceed 30,000 pounds or 850 pounds per inch of tire width, whichever is less.(2) The maximum permit weight for any group of axles on an unladen lift equipment motor vehicle is determined by calculating the "W" weight for the group, using the formulas shown in Figure 2: 43 TAC §219.62(f), "Maximum Permit Weight Formulas," and comparing the calculated "W" weight with the corresponding "W" weight that is established in Figure 1: 43 TAC §219.62(f), "Maximum Permit Weight Table."(3) The maximum permit weight per inch of tire width for axles that are steerable must not exceed 950 pounds, and the maximum permit weight per inch of tire width for axles that are not steerable must not exceed 850 pounds.(4) An applicant with an unladen lift equipment motor vehicle that has any group of axles that exceeds the limits established by Figure 1: 43 TAC §219.62(f),"Maximum Permit Weight Table," and Figure 2: 43 TAC §219.62(f), "Maximum Permit Weight Formulas," must comply with the following process and requirements:(A) submit the following to the department to determine if a permit can be issued:(i) a detailed diagram, on a form prescribed by the department, which illustrates the required information listed in §219.61(b)(5) of this title;(ii) the exact beginning and ending points relative to a state highway; and(iii) the name and contact information of the applicant's TxDOT-approved licensed professional engineer.(B) The department will select and provide the applicant with a tentative route based on the size of the unladen lift equipment motor vehicle, excluding the weight. The applicant must inspect the tentative route and advise the department, in writing, that the route is capable of accommodating the unladen lift equipment motor vehicle.(C) Before the department will issue a permit, the applicant's TxDOT-approved licensed professional engineer must submit to TxDOT a written certification that includes a detailed structural analysis of the bridges on the proposed route demonstrating that the bridges and culverts on the travel route are capable of sustaining the unladen lift equipment motor vehicle. The certification must be approved by TxDOT and submitted to the department before the department will issue the permit.(c) Permit application and issuance.(1) An application for a single-trip mileage permit under this section must be made in accordance with §219.61(b) of this title and must also include the origin and destination points of the unladen lift equipment motor vehicle.(2) Upon receipt of the application, the department will review and verify size and weight information, check the route and mileage to be traveled, compute the permit fee, and advise the applicant of the permit fee.(3) Upon receipt of the permit fee, the department will advise the applicant of the permit number and will provide a copy of the permit to the applicant.(d) Permit fees and refunds.(1) Minimum fee. The minimum fee for a single-trip mileage permit is either the calculated permit fee or $31, whichever is the greater amount.(2) Permit fee calculation. The permit fee for a single-trip mileage permit is calculated by multiplying the number of miles traveled, the highway use factor, and the total rate per mile, and then adding the indirect cost share to the product.(A) Highway use factor. The highway use factor for a single-trip mileage permit is 0.6.(B) Total rate per mile. The total rate per mile is the combined mileage rates for width, height, and weight for the unladen lift equipment motor vehicle.(i) The mileage rate for width is $.06 per mile for each foot (or fraction thereof) above legal width.(ii) The mileage rate for height is $.04 per mile for each foot (or fraction thereof) above legal height.(iii) The mileage rate for a single axle or any axle within a group that exceeds 20,000 pounds, but is less than or equal to 25,000 pounds, is calculated by multiplying $.045 times the amount by which the axle or axle group weight exceeds the legal weight for the axle or axle group and dividing the resultant figure by 1,000 pounds.(iv) The mileage rate for a single axle or any axle within a group that exceeds 25,000 pounds, but is less than or equal to 30,000 pounds, is calculated by multiplying $.055 times the amount by which the axle or axle group weight exceeds the legal weight for the axle or axle group and dividing the resultant figure by 1,000 pounds.(3) Refunds. Fees for permits issued under this section are non-refundable.(e) Amendments. A single-trip mileage permit issued under this section may not be amended unless an exception is granted by the department.(f) Weight table and formulas. The following table entitled "Maximum Permit Weight Table" is Figure 1: 43 TAC §219.62(f), and the list of formulas entitled "Maximum Permit Weight Formulas," is Figure 2: 43 TAC §219.62(f).Attached GraphicAttached Graphic</content><note type="source"><p>Source Note: The provisions of this §219.62 adopted to be effective February 21, 1999, 24 TexReg 1221; amended to be effective November 21, 1999, 24 TexReg 10144; amended to be effective January 4, 2007, 31 TexReg 10831; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359; amended to be effective June 28, 2015, 40 TexReg 4003; amended to be effective December 14, 2015, 40 TexReg 8900; amended to be effective March 6, 2018, 43 TexReg 1283; amended to be effective September 18, 2018, 43 TexReg 6003; amended to be effective December30,2020, 45 TexReg 9582; amended to be effective July 18, 2024, 49 TexReg 5161.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scE/s219.63"><num value="219.63">§219.63</num><heading>Quarterly Hubometer Permits</heading><content>(a) General information.(1) Permits issued under this section are subject to the requirements of §219.61 of this title (relating to General Requirements for Permits for Oversize and Overweight Unladen Lift Equipment Motor Vehicles).(2) A quarterly hubometer permit:(A) is effective for three consecutive months;(B) allows the unladen lift equipment motor vehicle to travel on all state-maintained highways; and(C) allows the unladen lift equipment motor vehicle to travel on a state-wide basis.(3) An unladen lift equipment motor vehicle permitted under this section must not exceed any of the following dimensions:(A) 12 feet in width;(B) 14 feet, 6 inches in height; or(C) 95 feet in length.(4) With the exception of unladen lift equipment motor vehicles that are overlength only, unladen lift equipment motor vehicles operated with a quarterly hubometer permit must be equipped with a hubometer. The permittee must maintain the hubometer in good working condition.(5) An unladen lift equipment motor vehicle exceeding 175,000 pounds gross weight must:(A) have front and rear escort flag vehicles to prevent traffic from traveling beside the unladen lift equipment motor vehicle as it crosses a bridge;(B) cross all multi-lane bridges by centering the unladen lift equipment motor vehicle on a lane line;(C) cross all two-lane bridges in the center of the bridge; and(D) cross each bridge at a speed not greater than 20 miles per hour.(6) The permitted unladen lift equipment motor vehicle must not cross a load-restricted bridge when exceeding the posted capacity of the bridge.(7) The permit may be amended only to change the following:(A) if listed on the permit, the hubometer serial number; or(B) the license plate number.(b) Maximum permit weight limits.(1) The maximum permit weight for any single axle must not exceed 30,000 pounds or 850 pounds per inch of tire width, whichever is less.(2) The maximum permit weight for any group of axles on an unladen lift equipment motor vehicle will be determined by calculating the "W" weight for the group, using the formulas in Figure 2: 43 TAC §219.62(f), "Maximum Permit Weight Formulas," and comparing the calculated "W" weight with the corresponding "W" weight that is established in Figure 1: 43 TAC §219.62(f), "Maximum Permit Weight Table."(3) The maximum permit weight per inch of tire width for axles that are steerable must not exceed 950 pounds, and the maximum permit weight per inch of tire width for axles that are not steerable must not exceed 850 pounds.(4) An unladen lift equipment motor vehicle that has any group of axles that exceeds the limits established by Figure 1: 43 TAC §219.62(f), "Maximum Permit Weight Table," and Figure 2: 43 TAC §219.62(f), "Maximum Permit Weight Formulas," is not eligible for a permit under this section; however, it is eligible for a permit under §219.62 of this title (relating to Single-Trip Mileage Permits).(c) Initial permit application and issuance.(1) An application for an initial quarterly hubometer permit must be made in accordance with §219.61(b) of this title. In addition, the applicant must provide the current hubometer mileage reading and an initial $31 processing fee.(2) Upon verification of the unladen lift equipment motor vehicle information and receipt of the permit fee, the department will provide a copy of the permit to the applicant, and will also provide a renewal application form to the applicant.(d) Permit renewals and closeouts.(1) An application for a permit renewal or closeout must be made on a form and in a manner prescribed by the department.(2) Upon receipt of the renewal application, the department will verify the unladen lift equipment motor vehicle information, check mileage traveled on the last permit, calculate the new permit fee, and advise the applicant of the permit fee.(e) Permit fees.(1) Minimum fee. The minimum fee for a quarterly hubometer permit is either the calculated permit fee or $31, whichever is the greater amount.(2) Fees for overlength unladen lift equipment motor vehicles. An unladen lift equipment motor vehicle that is overlength only is not required to have a hubometer. The fee for this permit is $31.(3) Quarterly hubometer permit fee calculation. The permit fee for a quarterly hubometer permit is calculated by multiplying the hubometer mileage, the highway use factor, and the total rate per mile, and then adding the indirect cost share to the product.(A) Hubometer mileage. Mileage for a quarterly hubometer permit is determined by the unladen lift equipment motor vehicle's current hubometer mileage reading minus the unladen lift equipment motor vehicle's hubometer mileage reading from the previous quarterly hubometer permit.(B) Highway use factor. The highway use factor for a quarterly hubometer permit is 0.3.(C) Total rate per mile. The total rate per mile is the combined mileage rates for width, height, and weight for the unladen lift equipment motor vehicle.(i) The mileage rate for width is $.06 per mile for each foot (or fraction thereof) above legal width.(ii) The mileage rate for height is $.04 per mile for each foot (or fraction thereof) above legal height.(iii) The mileage rate for a single axle or any axle within a group that exceeds 20,000 pounds, but is less than or equal to 25,000 pounds, is calculated by multiplying $.045 times the amount by which the axle or axle group weight exceeds the legal weight for the axle or axle group and dividing the resultant figure by 1,000 pounds.(iv) The mileage rate for a single axle or any axle within a group that exceeds 25,000 pounds, but is less than or equal to 30,000 pounds, is calculated by multiplying $.055 times the amount by which the axle or axle group weight exceeds the legal weight for the axle or axle group and dividing the resultant figure by 1,000 pounds.</content><note type="source"><p>Source Note: The provisions of this §219.63 adopted to be effective February 21, 1999, 24 TexReg 1221; amended to be effective November 21, 1999, 24 TexReg 10144; amended to be effective January 4, 2007, 31 TexReg 10831; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359; amended to be effective June 28, 2015, 40 TexReg 4003; amended to be effective December 14, 2015, 40 TexReg 8900; amended to be effective March 6, 2018, 43 TexReg 1283; amended to be effective September 18, 2018, 43 TexReg 6003; amended to be effective December 30,2020, 45 TexReg 9582; amended to be effective January 4, 2024, 48 TexReg 8383; amended to be effective July 18, 2024, 49 TexReg 5161.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scE/s219.64"><num value="219.64">§219.64</num><heading>Annual Permits</heading><content>(a) General information. Permits issued under this section are subject to the requirements of §219.61 of this title (relating to General Requirements for Permits for Oversize and Overweight Unladen Lift Equipment Motor Vehicles).(1) An unladen lift equipment motor vehicle permitted under this section must not exceed:(A) the weight limits established in §219.11(d)(1), (2), and (3) of this title (relating to General Oversize/Overweight Permit Requirements and Procedures);(B) a gross weight of 120,000 pounds;(C) legal length and height limits as specified in Transportation Code, Chapter 621, Subchapter C; and(D) 10 feet in width.(2) A permit issued under this section may not be amended.(3) An unladen lift equipment motor vehicle permitted under this section must not cross a load-restricted bridge or a load-restricted road when exceeding the posted capacity of such.(b) Permit application and issuance.(1) Initial permit application. An application for an annual permit under this section must be made in accordance with §219.61(b) of this title.(2) Permit issuance. Upon receipt of the application and the appropriate permit fee, the department will verify the application information and provide the permit to the applicant.</content><note type="source"><p>Source Note: The provisions of this §219.64 adopted to be effective February 21, 1999, 24 TexReg 1221; amended to be effective November 21, 1999, 24 TexReg 10144; amended to be effective June 1, 2008, 33 TexReg 3776; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359; amended to be effective June 28, 2015, 40 TexReg 4003; amended to be effective March 6, 2018, 43 TexReg 1283; amended to be effective September 18, 2018, 43 TexReg 6003; amended to be effective July 18, 2024, 49 TexReg 5161.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c219/scF"><num value="F">SUBCHAPTER F</num><heading>COMPLIANCE</heading><section identifier="/us/state/tx/tac/t43/p10/c219/scF/s219.80"><num value="219.80">§219.80</num><heading>Purpose</heading><content>The purpose of this subchapter is to provide for an efficient and effective system of enforcement of Transportation Code, Chapters 621, 622, and 623 by setting out procedures for citing violations related to the operation, with or without oversize or overweight permits, of vehicles or combination of vehicles on a public road or highway in the state in excess of the applicable maximum weight, height, length, or width.</content><note type="source"><p>Source Note: The provisions of this §219.80 adopted to be effective June 1, 2008, 33 TexReg 3776; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scF/s219.81"><num value="219.81">§219.81</num><heading>Applicability</heading><content>(a) A person operating or loading a vehicle for which a permit under this chapter is required shall comply with all applicable terms, conditions, and requirements of the permit, and with this chapter and Transportation Code, Chapters 621, 622, or 623 as applicable.(b) A person loading a vehicle or operating on a public road or highway a vehicle for which a permit under this chapter is not required shall comply with the weight and size provisions of Transportation Code, Chapters 621, 622, or 623.</content><note type="source"><p>Source Note: The provisions of this §219.81 adopted to be effective June 1, 2008, 33 TexReg 3776; amended to be effective July 15, 2010, 35 TexReg 6095; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359; amended to be effective July 18, 2024, 49 TexReg 5161.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scF/s219.82"><num value="219.82">§219.82</num><heading>Falsification of Information on Application and Permit</heading><content>(a) A person who provides false information on the permit application or another form required by the department for the issuance of an oversize or overweight permit commits a violation of this chapter and is subject to revocation of an oversize or overweight permit and the provisions of Subchapter H of this chapter and Chapter 224 of this title (relating to Adjudicative Practice and Procedure).(b) A person violates this chapter if the person produces a counterfeit permit or alters a permit issued by the department.</content><note type="source"><p>Source Note: The provisions of this §219.82 adopted to be effective June 1, 2008, 33 TexReg 3776; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359; amended to be effective June 28, 2015, 40 TexReg 4003; amended to be effective June 1, 2024, 49 TexReg 2758.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scF/s219.85"><num value="219.85">§219.85</num><heading>Permits Issued by Another State</heading><content>A permit issued by another state under an authorized reciprocal agreement is subject to this chapter and Transportation Code, Chapters 621, 622, or 623 as applicable, as if the permit were issued by the department.</content><note type="source"><p>Source Note: The provisions of this §219.85 adopted to be effective June 1, 2008, 33 TexReg 3776; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c219/scG"><num value="G">SUBCHAPTER G</num><heading>RECORDS AND INSPECTIONS</heading><section identifier="/us/state/tx/tac/t43/p10/c219/scG/s219.100"><num value="219.100">§219.100</num><heading>Purpose</heading><content>The purpose of this subchapter is to advise persons who are subject to Transportation Code, Chapters 621, 622, or 623 of the information and records that they are required to maintain, where and how long the records must be maintained, and department procedures for examining and inspecting these records.</content><note type="source"><p>Source Note: The provisions of this §219.100 adopted to be effective June 1, 2008, 33 TexReg 3776; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scG/s219.101"><num value="219.101">§219.101</num><heading>Investigations and Inspections of Records</heading><content>(a) Inspections.(1) A person shall give an inspector access to the person's premises to conduct inspections or investigations of an alleged violation of this chapter or Transportation Code, Chapters 621, 622, or 623. The person shall provide adequate workspace with reasonable working conditions and shall allow the inspector to copy and verify records.(2) The inspector will conduct inspections and investigations during normal business hours unless mutual arrangements have been made otherwise.(3) The inspector will present to the person the inspector's credentials and a written statement from the department indicating the inspector's authority to conduct the investigation.(b) Access.(1) Except as provided by paragraph (2) of this subsection, a person shall provide access to requested records at:(A) the person's principal place of business; or(B) a location in this state agreed to by the department and the person.(2) If the person's principal place of business is located outside of this state, the person may choose to make the records available at an out-of-state location agreed to by the department and the person but only if the person agrees to reimburse the department for necessary travel expenses and for a per diem as set by legislative appropriation for each day that an inspection or investigation related to the records or information is conducted.(3) If the requested records are maintained at the person's principal place of business in this state, the person shall make those records available to the inspector immediately after the department requests the records. If the records are maintained at a regional office or driver work-reporting location or if the person's principal place of business is located outside of this state, the person shall make the records available at the person's principal place of business or the agreed location at a time agreed to by the department and the person within 48 hours after the time that the department makes the request. Saturdays, Sundays, and federal and state holidays are excluded from the computation of the 48-hour period.(c) If a time or location cannot be agreed upon under subsection (b) of this section, the department shall designate the time and location by certified mail, email, or facsimile, using an address or facsimile number provided by the person or verified by the department.</content><note type="source"><p>Source Note: The provisions of this §219.101 adopted to be effective June 1, 2008, 33 TexReg 3776; amended to be effective July 15, 2010, 35 TexReg 6095; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359; amended to be effective March 6, 2019, 44 TexReg 1162.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scG/s219.102"><num value="219.102">§219.102</num><heading>Records</heading><content>(a) General records to be maintained. Each person who is subject to this chapter shall maintain the following records if information in such a record is necessary to verify the person's operation:(1) operational logs, insurance certificates, and documents to verify the person's operations;(2) complete and accurate records of services performed; and(3) all certificate of title documents, shipper's certificate of weight, including information used to support the shipper's certificate of weight, weight tickets, permits for oversize or overweight vehicles and loads, dispatch records, load tickets, waybill or any other document that verify the operations of the vehicle to determine the actual weight, insurance coverage, size or capacity of the vehicle, and the size or weight of the commodity being transported.(b) Evidence of permits.(1) Except as stated otherwise in §219.13(e)(4)(B)(ii) of this title (relating to Time Permits), the original permit, a print copy of the permit, or an electronic copy of the permit must be kept in the permitted vehicle until the permit terminates or expires.(2) Except as stated otherwise in §219.13(e)(4)(B)(ii), an operator of a vehicle operating under a permit issued under Transportation Code, Subtitle E, shall, on request, provide the original permit, a print copy of the permit, or an electronic copy of the permit to a department inspector or to a peace officer, as defined by Code of Criminal Procedure, Article 2.12.(A) If the department provides a permit electronically, the vehicle operator may provide a legible and accurate image of the permit displayed on a wireless communication device.(B) The authorization of the use of a wireless communication device to display permit information under this paragraph does not prevent the State Office of Administrative Hearings or a court of competent jurisdiction from requiring a person to provide a paper copy of the person's evidence of permit in a hearing or trial or in connection with discovery proceedings.(c) Preservation and destruction of records. Records required under this section shall be maintained for not less than two years, except that drivers' time cards and logs shall be maintained for not less than six months.</content><note type="source"><p>Source Note: The provisions of this §219.102 adopted to be effective June 1, 2008, 33 TexReg 3776; amended to be effective July 15, 2010, 35 TexReg 6095; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359; amended to be effective December 14, 2015, 40 TexReg 8900; amended to be effective July 18, 2024, 49 TexReg 5161.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c219/scH"><num value="H">SUBCHAPTER H</num><heading>ADMINISTRATIVE PENALTIES AND SANCTIONS</heading><section identifier="/us/state/tx/tac/t43/p10/c219/scH/s219.120"><num value="219.120">§219.120</num><heading>Purpose</heading><content>The purpose of this subchapter is to provide for administrative penalties and sanctions under Transportation Code, Chapters 621 through 623. The enforcement actions under this chapter are governed by Chapter 224 of this title (relating to Adjudicative Practice and Procedure) and Transportation Code, Chapters 621 through 623.</content><note type="source"><p>Source Note: The provisions of this §219.120 adopted to be effective June 1, 2008, 33 TexReg 3776; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359; amended to be effective June 1, 2024, 49 TexReg 2758.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scH/s219.121"><num value="219.121">§219.121</num><heading>Administrative Penalties and Sanctions under Transportation Code, §623.271</heading><content>Transportation Code, §623.271 authorizes the department to investigate and impose an administrative penalty or revoke an oversize or overweight permit issued under Transportation Code, Chapter 623.</content><note type="source"><p>Source Note: The provisions of this §219.121 adopted to be effective June 1, 2008, 33 TexReg 3776; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359; amended to be effective May 3, 2012, 37 TexReg 3195; amended to be effective December 14, 2015, 40 TexReg 8900; amended to be effective June 1, 2024, 49 TexReg 2758.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c219/scH/s219.126"><num value="219.126">§219.126</num><heading>Administrative Penalty for False Information on Certificate by a Shipper</heading><content>Transportation Code, §623.272 authorizes the department to investigate and impose an administrative penalty on a shipper who does not provide a shipper's certificate of weight as required under Transportation Code, §623.274(b) or provides false information on a shipper's certificate of weight that the shipper delivers to a person transporting a shipment.</content><note type="source"><p>Source Note: The provisions of this §219.126 adopted to be effective June 1, 2008, 33 TexReg 3776; transferred effective January 1, 2012, as published in the Texas Register January 27, 2012, 37 TexReg 359; amended to be effective June 28, 2015, 40 TexReg 4003; amended to be effective December 30, 2020, 45 TexReg 9594; amended to be effective June 1, 2024, 49 TexReg 2758.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p10/c220"><num value="220">CHAPTER 220</num><heading>AUTOMATED MOTOR VEHICLES</heading><subchapter identifier="/us/state/tx/tac/t43/p10/c220/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t43/p10/c220/scA/s220.1"><num value="220.1">§220.1</num><heading>Purpose and Scope</heading><content>This chapter prescribes the form and manner by which a person may apply to the department for authorization to operate one or more automated motor vehicles to transport property or passengers in furtherance of a commercial enterprise on highways and streets in this state without a human driver, as well as the requirements for an authorization holder to provide the department with certain updated documents, under Transportation Code, §545.456. This chapter also references the department's authority to impose administrative sanctions against an authorization holder under Transportation Code, §545.456 and §545.459.</content><note type="source"><p>Source Note: The provisions of this §220.1 adopted to be effective February 27, 2026, 50 TexReg 6520.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c220/scA/s220.3"><num value="220.3">§220.3</num><heading>Definitions</heading><content>The definitions contained in Transportation Code, Chapter 545, Subchapter J govern this chapter. In the event of a conflict, the definitions referenced in Transportation Code, Chapter 545, Subchapter J control.</content><note type="source"><p>Source Note: The provisions of this §220.3 adopted to be effective February 27, 2026, 50 TexReg 6520.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c220/scB"><num value="B">SUBCHAPTER B</num><heading>AUTHORIZATION TO OPERATE AN AUTOMATED MOTOR VEHICLE</heading><section identifier="/us/state/tx/tac/t43/p10/c220/scB/s220.21"><num value="220.21">§220.21</num><heading>Purpose and Scope</heading><content>This subchapter prescribes the form and manner by which an applicant may apply for authorization to operate one or more automated motor vehicles, and the requirements to update certain documents provided to the department, under Transportation Code, §545.456.</content><note type="source"><p>Source Note: The provisions of this §220.21 adopted to be effective February 27, 2026, 50 TexReg 6520.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c220/scB/s220.23"><num value="220.23">§220.23</num><heading>Application Requirements</heading><content>(a) An application for authorization to operate one or more automated motor vehicles under Transportation Code, §545.456 must be:(1) submitted electronically in the department's designated system; and(2) completed by the applicant or an authorized representative of the applicant.(b) An application for authorization to operate one or more automated motor vehicles under Transportation Code, §545.456 must contain the following:(1) a written statement by the person that includes the following information:(A) the applicant's name, business entity type (such as sole proprietor, corporation, or limited liability company), telephone number, email address, mailing address, and Texas Secretary of State file number, as applicable; and(B) the following information for each automated motor vehicle the applicant intends to operate under its authorization:(i) the vehicle identification number;(ii) year;(iii) make; and (iv) model; and(2) the written statement and certification required by Transportation Code, §545.456(b)(2) and (3).(c) An authorized representative of the applicant who submits an application to the department on behalf of an applicant may be required to provide written proof to the department of authority to act on behalf of the applicant.</content><note type="source"><p>Source Note: The provisions of this §220.23 adopted to be effective February 27, 2026, 50 TexReg 6520.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c220/scB/s220.26"><num value="220.26">§220.26</num><heading>Updates under Transportation Code, §545.456(e) and §545.456(f)(2).</heading><content>(a) Under Transportation Code, §545.456(e), an authorization holder shall provide the department with an update to a document described by §220.23(b) of this title (relating to Application Requirements) not later than the 30th day after the date material information changes, including, but not limited to, the addition of another vehicle. The authorization holder shall electronically submit the update in the form and manner, and subject to the requirements specified in §220.23 of this title.(b) Under Transportation Code, §545.456(f)(2), the department may request the authorization holder to provide the department with an updated or current document described by §220.23(b) of this title. Such requests are subject to the following requirements:(1) The department shall make such request by email, using the authorization holder's email address on file in the department's electronic system referenced in §220.23 of this title; (2) The authorization holder shall electronically submit the updated or current document in the form and manner, and subject to the requirements specified in §220.23 of this title; and(3) The deadline for the authorization holder to electronically submit the updated or current document is five days from the date of the department's request, unless the department grants an extension on the five-day deadline in response to a written request from the authorization holder for an extension that the department determines is reasonable and unlikely to result in harm to the public health, safety, or welfare.(4) Any request for an extension must be submitted:(A) prior to the department's deadline for the updated or current document; and(B) to the designated address listed in the department's request to the authorization holder for an updated or current document.(5) Any request for an extension must contain an explanation regarding the following:(A) why five days is not reasonable; (B) why the authorization holder needs more time and the specific deadline the authorization holder is requesting; and(C) whether the authorization holder's requested deadline is likely to result in harm to the public health, safety, or welfare.</content><note type="source"><p>Source Note: The provisions of this §220.26 adopted to be effective February 27, 2026, 50 TexReg 6520.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c220/scB/s220.28"><num value="220.28">§220.28</num><heading>Computation of Time</heading><content>(a) Any time period prescribed or allowed by this chapter or Transportation Code, §545.456 and §545.459 shall be computed in accordance with Government Code, §311.014.(b) Time shall be computed using calendar days rather than business days, unless otherwise specified in statute.</content><note type="source"><p>Source Note: The provisions of this §220.28 adopted to be effective February 27, 2026, 50 TexReg 6520.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c220/scB/s220.30"><num value="220.30">§220.30</num><heading>Signature Requirement on Written Statement and Certification</heading><content>A written statement and certification required by Transportation Code, §545.456 must be signed by the applicant or authorization holder or its authorized representative.</content><note type="source"><p>Source Note: The provisions of this §220.30 adopted to be effective February 27, 2026, 50 TexReg 6520.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c220/scC"><num value="C">SUBCHAPTER C</num><heading>ADMINISTRATIVE SANCTIONS</heading><section identifier="/us/state/tx/tac/t43/p10/c220/scC/s220.50"><num value="220.50">§220.50</num><heading>Administrative Sanctions</heading><content>The department may take action against the authorization holder in accordance with Chapter 224 of this title (relating to Adjudicative Practice and Procedure) and Transportation Code, §545.456 and §545.459.</content><note type="source"><p>Source Note: The provisions of this §220.50 adopted to be effective February 27, 2026, 50 TexReg 6520.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p10/c221"><num value="221">CHAPTER 221</num><heading>SALVAGE VEHICLE DEALERS</heading><subchapter identifier="/us/state/tx/tac/t43/p10/c221/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t43/p10/c221/scA/s221.1"><num value="221.1">§221.1</num><heading>Purpose and Scope</heading><content>Transportation Code, §1001.002, provides that the department shall administer and enforce Occupations Code, Chapter 2302. Chapter 2302 provides that a person may not act as a salvage vehicle dealer, unless the department issues that person a salvage vehicle dealer license, or an independent motor vehicle dealer's general distinguishing number issued under Chapter 503, Transportation Code, or a person is exempt from licensure under Occupations Code, Chapter 2302. This chapter describes the procedures by which a person obtains a salvage vehicle dealer license and the rules governing how a license holder or an independent motor vehicle dealer with authority to operate as a salvage vehicle dealer, must operate, and the procedures by which the department will administer and enforce Occupations Code, Chapter 2302, and this chapter.</content><note type="source"><p>Source Note: The provisions of this §221.1 adopted to be effective December 9, 2015, 40 TexReg 8802; amended to be effective January 2, 2020, 44 TexReg 8339; amended to be effective June 1, 2024, 49 TexReg 2760.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c221/scA/s221.2"><num value="221.2">§221.2</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Board--The Board of the Texas Department of Motor Vehicles.(2) Casual sale--A sale as defined by Transportation Code, §501.091.(3) Component part--As defined by Occupations Code, §2302.251.(4) Day--Means a calendar day unless otherwise stated.(5) Department--The Texas Department of Motor Vehicles.(6) Director--Means the division director that regulates the distribution and sales of motor vehicles, including any department staff to whom the director delegates any duty assigned under this chapter.(7) General Distinguishing Number (GDN)--As defined by Occupations Code, §2301.002.(8) License holder--A person that holds a salvage vehicle dealer license or an independent motor vehicle dealer GDN that authorizes the dealer to operate as a salvage vehicle dealer.(9) Metal recycler--As defined by Transportation Code, §501.091.(10) Nonrepairable motor vehicle--As defined by Transportation Code, §501.091.(11) Nonrepairable record of title--As defined by Transportation Code, §501.091.(12) Nonrepairable vehicle title--As defined by Transportation Code, §501.091.(13) Out-of-state buyer--As defined by Transportation Code, §501.091.(14) Out-of-state ownership document--As defined by Transportation Code, §501.091.(15) Person--As defined by Occupations Code, §2301.002.(16) Public highway--As defined by Transportation Code, §502.001.(17) Retail sale--As defined by Occupations Code, §2301.002.(18) Salvage motor vehicle--As defined by Transportation Code, §501.091.(19) Salvage record of title--As defined by Transportation Code, §501.091.(20) Salvage vehicle dealer--As defined by Transportation Code, §501.091.(21) Salvage vehicle title--As defined by Transportation Code, §501.091.(22) Used part--As defined by Transportation Code, §501.091.</content><note type="source"><p>Source Note: The provisions of this §221.2 adopted to be effective December 9, 2015, 40 TexReg 8802; amended to be effective January 2, 2020, 44 TexReg 8339; amended to be effective June 1, 2024, 49 TexReg 2760.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c221/scB"><num value="B">SUBCHAPTER B</num><heading>LICENSING</heading><section identifier="/us/state/tx/tac/t43/p10/c221/scB/s221.11"><num value="221.11">§221.11</num><heading>License Required</heading><content>(a) A person must hold a salvage vehicle dealer license, or an independent motor vehicle dealer's general distinguishing number issued under Chapter 503; Transportation Code to:(1) act as a salvage vehicle dealer or rebuilder; or(2) store or display a motor vehicle as an agent or escrow agent of an insurance company.(b) A person may not engage in the business of buying, selling or exchanging motor vehicles that can be titled or registered to operate on public highways, including selling a salvage motor vehicle that has been rebuilt, repaired or reconstructed, unless the person holds a general distinguishing number issued by the department under Transportation Code, Chapter 503.(c) The provisions of this subchapter do not apply to a person exempt from licensure under Occupations Code, Chapter 2302.</content><note type="source"><p>Source Note: The provisions of this §221.11 adopted to be effective December 9, 2015, 40 TexReg 8802; amended to be effective January 2, 2020, 44 TexReg 8339; amended to be effective June 1, 2024, 49 TexReg 2760.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c221/scB/s221.13"><num value="221.13">§221.13</num><heading>License Term and Fees</heading><content>(a) The term of a salvage vehicle dealer license issued by the department under Occupations Code, Chapter 2302, and this chapter, is two years. The fee for a salvage vehicle dealer license is $190. The entire amount of the fee is due at the time of application for the license.(b) The department may prorate the fee for a salvage vehicle dealer license to allow the salvage vehicle dealer license to expire on the same day as another license issued by the department under Occupations Code, Chapter 2301; Chapter 2302; or Transportation Code, Chapter 503.(c) The fee for a license amendment is $25 and applies to a license amendment changing a license holder's name, changing ownership or management, or when adding a new business address and assumed name.</content><note type="source"><p>Source Note: The provisions of this §221.13 adopted to be effective December 9, 2015, 40 TexReg 8802; amended to be effective January 2, 2020, 44 TexReg 8339; amended to be effective June 1, 2024, 49 TexReg 2760.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c221/scB/s221.14"><num value="221.14">§221.14</num><heading>License Applications Generally</heading><content>(a) A salvage vehicle dealer license may be issued for multiple locations within a single county. A separate license and fee is required for a business location in another county.(b) An application for a new license, license amendment, or license renewal filed with the department must be:(1) on a form prescribed by the department;(2) completed by the applicant, license holder, or authorized representative who is an employee, a licensed attorney, or a certified public accountant; and(3) accompanied by the required fee from an account held by the applicant or license holder, or from a trust account of the applicant's or license holder's attorney or certified public accountant.(c) License applications and fees must be submitted to the department electronically in a system designated by the department for licensing. Fees may be paid by credit card or electronic funds transfer.(d) In evaluating a new or renewal salvage vehicle dealer license application or an application for a new location, the department may require a site visit to determine if the business location meets the requirements in this chapter.(e) An applicant for a salvage vehicle dealer license must also comply with fingerprint requirements in §211.6 of this title (relating to Fingerprint Requirements for Designated License Applicants and License Holders).(f) The department will not provide information regarding the status of an application, application deficiencies, or pending new license numbers to a person other than a person listed in subsection (b)(2) of this section unless the person files a written request under Government Code, Chapter 552.</content><note type="source"><p>Source Note: The provisions of this §221.14 adopted to be effective December 9, 2015, 40 TexReg 8802; amended to be effective June 1, 2024, 49 TexReg 2760.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c221/scB/s221.15"><num value="221.15">§221.15</num><heading>Required License Application Information</heading><content>(a) An applicant for a new salvage dealer license must register for an account in the department-designated licensing system by selecting the licensing system icon on the dealer page of the department website. An applicant must designate the account administrator and provide the name and email address for that person, and provide the business telephone number, name, business type, and social security number or employer identification number, as applicable. The applicant's licensing account administrator must be an owner, officer, manager, or bona fide employee.(b) Once registered, an applicant for a new salvage dealer license may apply for a license and must provide the following:(1) the application reason;(2) business information including:(A) the name, provided that the applicant may not use a name or assumed name under which the applicant is authorized to do business that may be confused with or is similar to that of a governmental entity or that is otherwise deceptive or misleading to the public;(B) mailing address;(C) the full business physical address, including number, street, municipality, county, and zip code for each location where the applicant will conduct business in the same county;(D) business email;(E) telephone number;(F) Texas Sales Tax Identification Number;(G) National Motor Vehicle Title Information System (NMVTIS) Identification Number;(H) Secretary of State file number, if applicable; and(I) website address, if applicable.(3) application contact name, email address, and telephone number;(4) the name, social security number, date of birth, identity document information, and ownership percentage for each owner, partner, member, beneficiary, or principal if the applicant is not a publicly traded company;(5) the name, social security number, date of birth, and identity document information for each officer, director, manager, trustee, or other representative authorized to act on behalf of the applicant if the applicant is owned in full or in part by a legal entity;(6) the name, employer identification number, ownership percentage, and non-profit or publicly-traded status for each legal entity that owns the applicant in full or in part;(7) the name, social security number, date of birth, and identity document information of at least one manager or other bona fide employee who will be present at the business location if the license holder is out of state or will not be present during business hours at the business location in Texas;(8) criminal history record information under the laws of Texas, another state of the United States, the United States, and any foreign jurisdiction for each person listed in the application, including offense description, date, and location;(9) military service status;(10) licensing history required to evaluate business reputation, character, and fitness for licensure including a statement indicating whether the applicant or any person described in §211.2 of this title (relating to Application of Subchapter) has previously applied for a license under this chapter or the salvage vehicle dealer licensing laws of another jurisdiction, the result of the previous application, and whether the applicant, including a person described in §211.2 of this title, has ever been the holder of a license issued by the department or another jurisdiction that was revoked, suspended, or subject of an order issued by the board or by another jurisdiction to pay an administrative penalty that remains unpaid;(11) information about each business location and business premises to demonstrate compliance with related rules in this chapter;(12) signed Certification of Responsibility, which is a form provided by the department; and(13) any other information required by the department to evaluate the application under current law and board rules.(c) A salvage vehicle dealer renewing or amending its license must verify current license information and provide related information for any new requirements or changes to the license.</content><note type="source"><p>Source Note: The provisions of this §221.15 adopted to be effective December 9, 2015, 40 TexReg 8802; amended to be effective October 31, 2020, 45 TexReg 7444; amended to be effective June 1, 2024, 49 TexReg 2760.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c221/scB/s221.16"><num value="221.16">§221.16</num><heading>Required Attachments to the License Application</heading><content>A legible and accurate electronic image of each applicable required document must be attached to the license application:(1) the certificate of filing, certificate of incorporation, or certificate of registration on file with the Secretary of State, if applicable;(2) each assumed name certificate on file with the Secretary of State or county clerk;(3) at least one of the following valid and current identity documents for each natural person listed in the application:(A) driver's license;(B) Texas Identification Card issued by the Texas Department of Public Safety under Transportation Code, Chapter 521, Subchapter E;(C) license to carry a handgun issued by the Texas Department of Public Safety under Government Code, Chapter 411, Subchapter H;(D) United States or foreign passport; or(E) United States military identification card;(4) documents proving business premises ownership, or a fully executed lease or sublease agreement for the license period;(5) business premises photos and a notarized affidavit certifying that all premises requirements in Subchapter C of the chapter are met and will be maintained during the license period;(6) Texas Use and Sales Tax Permit;(7) Franchise Tax Account Status issued by the Comptroller's Office; and(8) any other documents required by the department to evaluate the application under current law and board rules.</content><note type="source"><p>Source Note: The provisions of this §221.16 adopted to be effective December 9, 2015, 40 TexReg 8802; amended to be effective July 2, 2017, 42 TexReg 3281; amended to be effective June 1, 2024, 49 TexReg 2760.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c221/scB/s221.17"><num value="221.17">§221.17</num><heading>License Processing for Military Service Members, Spouses, and Veterans.</heading><content>(a) The department will process a license, amendment, or renewal application submitted for licensing of a military service member, military spouse, or military veteran in accordance with Occupations Code, Chapter 55. A license holder who fails to timely file a sufficient renewal application because the license holder was on active duty is exempt from any increased fee or penalty imposed by the department.(b) A military service member or military spouse may engage in a business or occupation for which a department issued license is required if the military service member or military spouse meets the requirements of Occupations Code, §55.0041 and this section.(1) A military service member or military spouse must submit to the department:(A) a complete application;(B) proof of the military service member being stationed in Texas and a copy of the military service member or military spouse's military identification card;(C) if the applicant is a military spouse, a copy of the military spouse's marriage license; and(D) a notarized affidavit as required by Occupations Code, § 55.0041(b)(3).(2) Upon receipt of the application and documentation required by paragraph (1) of this subsection, the department shall:(A) confirm with the other licensing state that the military service member or military spouse is currently licensed and in good standing for the relevant business or occupation; and(B) conduct a comparison of the other state's license requirements, statutes, and rules with the department's licensing requirements to determine if the requirements are similar in scope of practice; and(C) issue a provisional license.(3) If the department confirms that a military service member or military spouse is currently licensed in good standing in another state with licensing requirements that are similar in scope and practice, or was licensed in good standing in Texas in the last five years, the department shall issue a license to the military service member or military spouse for the relevant business or occupation, or notify the applicant why the department is currently unable to issue a license pursuant to Occupations Code, §55.0041(b-1), within 10 days. The license is subject to the requirements of this chapter and Occupations Code, Chapter 2302 in the same manner as a license issued under the standard application process, unless exempted or modified under Occupations Code, Chapter 55.(c) This section establishes requirements and procedures authorized or required by Occupations Code, Chapter 55, and does not modify or alter rights that may be provided under federal law.</content><note type="source"><p>Source Note: The provisions of this §221.17 adopted to be effective December 9, 2015, 40 TexReg 8802; amended to be effective December 29, 2019, 44 TexReg 8037; amended to be effective June 1, 2024, 49 TexReg 2760; amended to be effective October 9, 2025, 50 TexReg 6526.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c221/scB/s221.18"><num value="221.18">§221.18</num><heading>Additional, New, or Closed Location</heading><content>(a) If the license holder intends to conduct business at more than one location within the same county, the applicant must:(1) notify the department no later than 10 days before opening the additional location by electronically submitting a license amendment application in the department-designated licensing system;(2) acknowledge that the additional location is and will remain in compliance with all ordinances and rules of the municipality or county for the additional location and board rules; and(3) obtain approval from the department before conducting business at the additional location.(b) If the license holder intends to relocate its business to a new location within the same county, the license holder must:(1) notify the department no later than 10 days before opening the new location by electronically submitting a license amendment application in the department-designated licensing system to add a new location and remove the existing location from the department's records;(2) acknowledge that the new location is and will remain in compliance with all ordinances and rules of the municipality or county for the new location and board rules; and(3) obtain approval from the department before conducting business at the new location.(c) A license holder must notify the department in writing within 10 days of closing a business location by electronically submitting a license amendment application in the department-designated licensing system to delete the location if more than one location is listed on the license, or closing the license if a single location is listed on the license.(d) If a license holder is opening a new location not located in the same county, the license holder must apply for a new license.</content><note type="source"><p>Source Note: The provisions of this §221.18 adopted to be effective December 9, 2015, 40 TexReg 8802; amended to be effective June 1, 2024, 49 TexReg 2760.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c221/scB/s221.19"><num value="221.19">§221.19</num><heading>Notice of Change in License Holder Information</heading><content>(a) A license holder shall notify the department by electronically submitting a license amendment application in the department-designated licensing system to amend its license within 30 days of a change in the license holder's business name or assumed name. Upon submission of an amendment to change the business name or assumed name, the department shall reflect the new business name in the department's records. The dealer shall retain the same salvage vehicle dealer license number except if the business name change is the result of a change in the type of entity being licensed, such as a sole proprietorship becoming a corporation, or if the ownership of the business changes as discussed in subsection (b) of this section.(b) A salvage vehicle dealer shall notify the department by electronically submitting a license amendment application in the department-designated licensing system within 30 days of a change to:(1) the entity type of the applicant or license holder;(2) the departure or addition of any person reported to the department in the original license application or most recent renewal application, including any person described in §211.2 of this title (relating to Application of Subchapter);(3) an ownership, organizational, managerial, or other business arrangement that would allow the power to direct or cause the direction of the management and policies and activities of an applicant or license holder, whether directly or indirectly, to be established in or with a person not described in paragraph (1) or (2) of this subsection; or(4) a business email address, telephone number, mailing address, or change in license contact.(c) The license holder must submit to the department all information required by the department to evaluate the license amendment application under current law and rules.</content><note type="source"><p>Source Note: The provisions of this §221.19 adopted to be effective December 9, 2015, 40 TexReg 8802; amended to be effective October 31, 2020, 45 TexReg 7444; amended to be effective June 1, 2024, 49 TexReg 2760.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c221/scB/s221.20"><num value="221.20">§221.20</num><heading>License Renewal</heading><content>(a) A salvage vehicle dealer license expires on the second anniversary of the date the license was issued.(b) A salvage vehicle dealer license may be renewed for an additional period of two years upon timely submission of a renewal application on a form prescribed by the department with all required information, attachments, and fees. A renewal application is considered "timely" submitted if the renewal application with all required information, attachments, and required fees is received by the department on or before the expiration date of the existing license.(c) The department will send a written notice of expiration to a license holder's email address at least 31 days before expiration of a license.(d) Failure by the department to send written notice of expiration under this section does not relieve a license holder from timely renewing a license.(e) The renewal fee for a salvage vehicle dealer license is $170.(f) A license holder may renew an expired license by submitting a renewal application and paying a late renewal fee of $85 in addition to the renewal fee, if 90 or fewer days have elapsed since the license expired.(g) A license holder may renew an expired license by submitting a renewal application and paying a late renewal fee of $170 in addition to the renewal fee, if more than 90 days but less than one year has elapsed since the license expired.(h) If a license has been expired for one year or longer and the department has not received a renewal application, the department will close the license, and the license holder must apply for a new license.(i) In accordance with Government Code, §2001.054, a license holder that timely submits a renewal application under subsection (b) of this section may continue to operate under the expired license until the status of the renewal application is determined by the department.(j) If the department does not receive a timely renewal application with all required information and attachments and the applicable renewal fee on or before the license expiration date, a salvage vehicle dealer may not engage in the activities that require the license until the license has been renewed by the department.</content><note type="source"><p>Source Note: The provisions of this §221.20 adopted to be effective December 9, 2015, 40 TexReg 8802; amended to be effective January 2, 2020, 44 TexReg 8339; amended to be effective June 1, 2024, 49 TexReg 2760.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c221/scC"><num value="C">SUBCHAPTER C</num><heading>LICENSED OPERATIONS</heading><section identifier="/us/state/tx/tac/t43/p10/c221/scC/s221.41"><num value="221.41">§221.41</num><heading>Location Requirements</heading><content>A salvage vehicle dealer must meet and maintain the following requirements at each licensed business location during the term of the license.(1) If the licensed business location is not owned by the license holder, the license holder must maintain a lease that is continuous during the period of time for which the license will be issued. The lease agreement must be on a properly executed form containing at a minimum:(A) the name of the property owner as the lessor of the premises and the name of the dealer as the tenant or lessee of the premises;(B) the period of time for which the lease is valid;(C) the street address or legal description of the property, provided that if only a legal description of the property is provided, the license holder must attach a statement verifying that the property description in the lease agreement is the physical street address identified on the application;(D) the signature of the property owner as the lessor and the signature of the dealer as the tenant or lessee; and(E) if the lease agreement is a sublease in which the property owner is not the lessor, the dealer must also obtain a signed and notarized statement from the property owner including the following information:(i) property owner's full name, email address, mailing address, and phone number; and(ii) property owner's statement confirming that the dealer is authorized to sublease the location and may operate a salvage vehicle dealer business from the location.(2) Any business location requirements in this subchapter are in addition to any requirements under municipal ordinance, county rule, or state law.</content><note type="source"><p>Source Note: The provisions of this §221.41 adopted to be effective December 9, 2015, 40 TexReg 8802; amended to be effective January 2, 2020, 44 TexReg 8339; amended to be effective June 1, 2024, 49 TexReg 2760.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c221/scC/s221.42"><num value="221.42">§221.42</num><heading>Operations Only at Licensed Business Location</heading><content>A salvage vehicle dealer may not sell or offer to sell a salvage motor vehicle or nonrepairable motor vehicle from any location other than a licensed business location.</content><note type="source"><p>Source Note: The provisions of this §221.42 adopted to be effective December 9, 2015, 40 TexReg 8802; amended to be effective June 1, 2024, 49 TexReg 2760.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c221/scC/s221.43"><num value="221.43">§221.43</num><heading>Business Hours</heading><content>(a) The office of a salvage vehicle dealer who sells to a retail customer shall be open at least four days per week for at least four consecutive hours per day and may not be open solely by appointment. The office of a salvage pool operator selling only to a wholesale dealer must be open at least two weekdays per week for at least two consecutive hours per day and may not be open solely by appointment. The business hours must be posted at the main entrance of the business's office that is accessible to the public.(b) The license holder or a bona fide employee of the license holder shall be at the licensed business location during the posted business hours for the purpose of operating the salvage business and allowing the inspection of the business location and records.(c) If the license holder or a bona fide employee of the license holder is not available to conduct business during the posted business hours due to special circumstances or emergencies, a separate sign must be posted indicating the date and time the license holder or bona fide employee of the license holder will resume operations at the licensed business location.(d) Regardless of the license holder's business hours, the license holder's telephone must be answered from 8:00 a.m. to 5:00 p.m. weekdays by a bona fide employee, owner, answering service, voicemail service, or answering machine.</content><note type="source"><p>Source Note: The provisions of this §221.43 adopted to be effective December 9, 2015, 40 TexReg 8802; amended to be effective June 1, 2024, 49 TexReg 2760.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c221/scC/s221.44"><num value="221.44">§221.44</num><heading>Business Sign Requirements</heading><content>(a) The license holder must display a permanent business sign with letters at least six inches in height showing the license holder's business name or assumed name as reflected on the license issued by the department. A business sign is considered permanent only if it is made of durable, weather-resistant material.(b) A business sign must be permanently mounted at each physical business address listed on the license. A business sign is considered permanently mounted if bolted to an exterior building wall or bolted or welded to a dedicated sign pole or sign support permanently installed in the ground.(c) A license holder may use a temporary sign or banner if that license holder can show proof that a business sign that meets the requirements of this paragraph has been ordered and provides a written statement that the business sign will be promptly and permanently mounted upon delivery.(d) A license holder is responsible for ensuring that the business sign complies with municipal ordinances, and that any lease signage requirements are consistent with the signage requirements in this section.</content><note type="source"><p>Source Note: The provisions of this §221.44 adopted to be effective December 9, 2015, 40 TexReg 8802; amended to be effective June 1, 2024, 49 TexReg 2760.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c221/scC/s221.45"><num value="221.45">§221.45</num><heading>Business Office</heading><content>(a) The license holder's office must be located at the licensed business location in a building with a permanent roof and connecting exterior walls on all sides.(b) A license holder's office structure must comply with all applicable local zoning ordinances and deed restrictions.(c) A license holder's office may not be located within a residence, apartment house or building, hotel, motel, rooming house, or any room or building not open to the public.(d) A portable-type office structure may qualify as a business office only if the structure meets the requirements of this section and is not a readily moveable trailer or other vehicle.(e) A license holder's office may not be virtual or provided by a subscription for office space or office services.(f) The physical address of the salvage vehicle dealer's office must be in Texas, recognized by the U.S. Postal Service, and have an assigned emergency services property address.(g) A license holder's office must be equipped with internet access.</content><note type="source"><p>Source Note: The provisions of this §221.45 adopted to be effective December 9, 2015, 40 TexReg 8802; amended to be effective June 1, 2024, 49 TexReg 2760.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c221/scC/s221.46"><num value="221.46">§221.46</num><heading>Display of License</heading><content>At each licensed business location, a license holder must continuously display the license issued by the department in a conspicuous manner that makes the license easily readable by the public.</content><note type="source"><p>Source Note: The provisions of this §221.46 adopted to be effective December 9, 2015, 40 TexReg 8802; amended to be effective June 1, 2024, 49 TexReg 2760.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c221/scC/s221.47"><num value="221.47">§221.47</num><heading>Evidence of Ownership</heading><content>A salvage vehicle dealer must receive a properly assigned salvage vehicle title, salvage record of title, nonrepairable vehicle title, nonrepairable record of title, or out-of-state ownership document, as applicable, when acquiring a nonrepairable motor vehicle or salvage motor vehicle in accordance with §217.86 of this title (relating to Dismantling, Scrapping, or Destruction of Motor Vehicles).</content><note type="source"><p>Source Note: The provisions of this §221.47 adopted to be effective December 9, 2015, 40 TexReg 8802; amended to be effective June 1, 2024, 49 TexReg 2760.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c221/scC/s221.49"><num value="221.49">§221.49</num><heading>Unique Inventory Number</heading><content>Occupations Code, §2302.255, sets out the requirements for a salvage vehicle dealer in assigning a unique inventory number when the salvage vehicle dealer purchases or takes delivery of a component part.</content><note type="source"><p>Source Note: The provisions of this §221.49 adopted to be effective December 9, 2015, 40 TexReg 8802; amended to be effective June 1, 2024, 49 TexReg 2760.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c221/scC/s221.50"><num value="221.50">§221.50</num><heading>Restrictions on Sales of Flood Damaged Vehicles</heading><content>(a) A motor vehicle that is a nonrepairable motor vehicle or salvage motor vehicle based solely on flood damage may be sold or transferred only as provided by this section and §217.88 of this title (relating to Sale, Transfer, or Release of Ownership of a Nonrepairable or Salvage Motor Vehicle).(b) A salvage vehicle dealer may sell, transfer, or release a nonrepairable motor vehicle or salvage motor vehicle if the salvage vehicle dealer provides a written disclosure that the vehicle has been classified as a nonrepairable motor vehicle or salvage motor vehicle based solely on flood damage.</content><note type="source"><p>Source Note: The provisions of this §221.50 adopted to be effective December 9, 2015, 40 TexReg 8802; amended to be effective June 1, 2024, 49 TexReg 2760.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c221/scC/s221.51"><num value="221.51">§221.51</num><heading>Duty to Identify Motor Vehicles Offered for Sale</heading><content>(a) A salvage vehicle dealer shall place a notice on each salvage motor vehicle it displays or offers for sale that:(1) is visible from outside of the salvage motor vehicle;(2) contains lettering that is two inches or more in height identifying the vehicle is a salvage motor vehicle; and(3) states as follows: "This is a salvage titled vehicle that cannot be operated on a public highway. If the salvaged vehicle is to be registered in Texas, the purchaser must apply to a county tax assessor-collector's office, surrender the salvage title, submit the required information on repairs that have been made to the vehicle and pay the applicable fees before the vehicle may be titled and/or registered to operate on the public highway." (b) Upon the sale of a salvage motor vehicle, a salvage vehicle dealer shall obtain the purchaser's signature to a disclosure statement written in eleven point or larger font that states as follows: "I, (name of purchaser), acknowledge that at the time of purchase, I am aware that: the vehicle is titled on a salvage title; if I intend to operate the vehicle on a public highway in Texas, I am responsible for applying for a title for this salvage vehicle through a Texas county tax assessor-collector's office accompanied by the required forms showing that repairs have been made to the vehicle; I am responsible for paying the applicable fees; and, I may not drive this salvage vehicle on a public highway until after a titled branded rebuilt salvage and registration have been issued." (c) A salvage vehicle dealer shall place a sign on each nonrepairable motor vehicle it displays or offers for sale that:(1) is visible from outside of the nonrepairable motor vehicle;(2) contains lettering that is two inches or more in height; and(3) states as follows: "This is a nonrepairable titled motor vehicle that can never be operated on a public highway of this state." (d) Upon the sale of a nonrepairable motor vehicle, a salvage vehicle dealer shall obtain the purchaser's signature to a disclosure statement written in eleven point or larger font that states as follows: "I, (name of purchaser), acknowledge that at the time of purchase, I am aware that the vehicle is a nonrepairable vehicle; this vehicle will never be able to operate on a public highway of this state and will never be registered to operate on a public highway of this state; and, before selling this nonrepairable vehicle I must have the nonrepairable vehicle titled in my name." (e) A salvage vehicle dealer shall maintain a copy of the written disclosures required by this section as part of its records of sales in accordance with §221.73 of this title (relating to Content of Records).(f) The notice requirements of subsections (a) and (c) can be met if the salvage vehicle dealer conspicuously displays a permanent sign that all of the vehicles being offered for sale by the salvage vehicle dealer are salvage motor vehicles or non-repairable motor vehicles.(g) If the salvage vehicle dealer conducts a sale of a salvage motor vehicle or a nonrepairable motor vehicle in Spanish or other foreign language, the notices and disclosures required by this section shall be in that language.(h) This section does not apply to a vehicle that is displayed or offered for sale by a salvage vehicle dealer who operates solely as a salvage pool operator and only sells vehicles at wholesale.</content><note type="source"><p>Source Note: The provisions of this §221.51 adopted to be effective December 9, 2015, 40 TexReg 8802; amended to be effective June 1, 2024, 49 TexReg 2760.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c221/scC/s221.52"><num value="221.52">§221.52</num><heading>Export-only Sales</heading><content>(a) A license holder may sell a nonrepairable motor vehicle or a salvage motor vehicle to a person who resides in a jurisdiction outside the United States only as provided by Transportation Code, §501.099 and §217.88 of this title (relating to Sale, Transfer, or Release of Ownership of a Nonrepairable or Salvage Motor Vehicle).(b) A legible copy of the purchaser's photo identification document must be maintained in the records of the license holder for a period of 36 months after the sale of a salvage motor vehicle or a nonrepairable motor vehicle for "export-only."(c) The limitation on the number of casual sales that may be made to a person under §221.53 of this title (relating to Casual Sales) does not apply to sales to a person who resides in a jurisdiction outside the United States and who purchases salvage motor vehicles and nonrepairable motor vehicles for "export-only."</content><note type="source"><p>Source Note: The provisions of this §221.52 adopted to be effective December 9, 2015, 40 TexReg 8802; amended to be effective June 1, 2024, 49 TexReg 2760.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c221/scC/s221.53"><num value="221.53">§221.53</num><heading>Casual Sales</heading><content>(a) A license holder may not make more than five (5) casual sales of salvage motor vehicles or nonrepairable motor vehicles during a calendar year to the same person.(b) A license holder must maintain records of each casual sale made in accordance with §217.88 of this title (relating to Sale, Transfer, or Release of Ownership of a Nonrepairable or Salvage Motor Vehicle).(c) A person who purchases a salvage motor vehicle or a nonrepairable motor vehicle through a casual sale may not sell that salvage motor vehicle or nonrepairable motor vehicle until the salvage vehicle title, salvage record or title, nonrepairable vehicle title or nonrepairable record of title, as applicable, is in the person's name.</content><note type="source"><p>Source Note: The provisions of this §221.53 adopted to be effective December 9, 2015, 40 TexReg 8802; amended to be effective July 2, 2017, 42 TexReg 3281; amended to be effective June 1, 2024, 49 TexReg 2760.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c221/scC/s221.54"><num value="221.54">§221.54</num><heading>Criteria for Site Visits</heading><content>In determining whether to conduct a site visit at an active salvage vehicle dealer's location, the department will consider whether the dealer has:(1) failed to respond to a records request;(2) failed to operate from the license location;(3) an enforcement history that reveals failed compliance inspections or multiple complaints with administrative sanctions being taken by the department;(4) a business location that fails to meet premises or operating requirements under this chapter;(5) records that require further investigation by the department;(6) failed to remove a license plate or registration insignia from a scrapped or destroyed vehicle;(7) failed to timely or accurately report to the department or enter in the system designated by the department, a void license plate from a scrapped or destroyed vehicle; or(8) failed to scrap, recycle, or destroy license plates and registration insignia from a scrapped or destroyed vehicle.</content><note type="source"><p>Source Note: The provisions of this §221.54 adopted to be effective January 2, 2020, 44 TexReg 8339; amended to be effective June 1, 2024, 49 TexReg 2760; amended to be effective July 1, 2025, 49 TexReg 9017.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c221/scD"><num value="D">SUBCHAPTER D</num><heading>RECORDS</heading><section identifier="/us/state/tx/tac/t43/p10/c221/scD/s221.71"><num value="221.71">§221.71</num><heading>Records; Generally</heading><content>(a) A salvage vehicle dealer shall maintain a record of each salvage motor vehicle and nonrepairable motor vehicle purchased, sold, or exchanged by the salvage vehicle dealer.(b) A salvage vehicle dealer's records must be maintained at the licensed business location.(c) Any records required to be maintained by a license holder may be maintained in an electronic format if the record can be reviewed and printed at the licensed business location or provided electronically upon request of the department.(d) A salvage vehicle dealer must make records available for review and copying upon request by the department. The department may request records in person, by mail, or electronically from a department email or a department-designated system.(e) A salvage vehicle dealer must provide copies of requested records to the department within 15 days of receipt of the request.(f) Occupations Code, §2302.254, establishes the requirements that a salvage vehicle dealer maintain a record of an inventory of component parts purchased by or delivered to the salvage vehicle dealer.</content><note type="source"><p>Source Note: The provisions of this §221.71 adopted to be effective December 9, 2015, 40 TexReg 8802; amended to be effective June 1, 2024, 49 TexReg 2760.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c221/scD/s221.72"><num value="221.72">§221.72</num><heading>Record Retention</heading><content>(a) A salvage vehicle dealer must retain at the licensed business location, or have electronic access at the licensed business location of records stored electronically, a complete record of all purchases and sales of salvage motor vehicles and nonrepairable motor vehicles for a minimum period of 36 months from the date of the transaction.(b) A salvage vehicle dealer shall maintain at the licensed business location a record of each vehicle that is dismantled, scrapped or destroyed, and a photocopy of the front and back of all salvage vehicle titles and nonrepairable vehicle titles, or a photocopy or electronic copy of all salvage records of title, and nonrepairable records of title, and, if applicable, a photocopy of any out-of-state evidence of ownership surrendered to the department, until the third anniversary of the date the report was acknowledged as received by the department.(c) A salvage vehicle dealer utilizing the department's web-based title application known as webDEALER, as defined in §217.71 of this title (relating to Automated and Web-Based Vehicle Registration and Title Systems), must comply with §217.74 of this title (relating to Access to and Use of webDEALER). Original hard copy titles are not required to be kept at the licensed business location but must be made available to the department upon request.</content><note type="source"><p>Source Note: The provisions of this §221.72 adopted to be effective December 9, 2015, 40 TexReg 8802; amended to be effective March 1, 2018, 43 TexReg 1147; amended to be effective June 1, 2024, 49 TexReg 2760.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c221/scD/s221.73"><num value="221.73">§221.73</num><heading>Content of Records</heading><content>(a) The records of a salvage vehicle dealer for purchases and sales shall include:(1) the date the license holder purchased the salvage motor vehicle, or nonrepairable motor vehicle;(2) the name and address of the person who sold the salvage motor vehicle or nonrepairable motor vehicle to the salvage vehicle dealer;(3) if the person is not an insurance company or a license holder, a photocopy of the photo identification document of the person who purchased the salvage motor vehicle or nonrepairable motor vehicle from the salvage vehicle dealer or sold the salvage motor vehicle or nonrepairable motor vehicle to the salvage vehicle dealer;(4) a description of the salvage motor vehicle or nonrepairable motor vehicle, including the model, year, make, and vehicle identification number, if applicable;(5) the ownership document number and state of issuance of the salvage motor vehicle or nonrepairable motor vehicle ownership document, if applicable;(6) a copy of the salvage record of title or nonrepairable record of title, if applicable, or a copy of the front and back of the ownership document for the salvage motor vehicle or nonrepairable motor vehicle;(7) a copy of the form if the ownership document has been surrendered to the department;(8) any evidence indicating that the motor vehicle was dismantled, scrapped, or destroyed;(9) the sales contract or buyer's order;(10) the salvage disclosure notice required under §221.51 of this title (relating to Duty to Identify a Motor Vehicle Offered for Sale);(11) a copy of the photo identification document required for export sales under §221.52 (relating to Export-Only Sales);(12) records for a casual sale as required under §221.53 (relating to Casual Sales); and(13) any other records required under current rules in this title.(b) If the salvage motor vehicle has been rebuilt, repaired, or reconstructed by the salvage vehicle dealer the salvage vehicle dealer's records must also include a form prescribed by the department in accordance with §217.89 of this title (relating to Rebuilt Salvage Motor Vehicles).</content><note type="source"><p>Source Note: The provisions of this §221.73 adopted to be effective December 9, 2015, 40 TexReg 8802; amended to be effective July 2, 2017, 42 TexReg 3281; amended to be effective June 1, 2024, 49 TexReg 2760.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c221/scE"><num value="E">SUBCHAPTER E</num><heading>ADMINISTRATIVE SANCTIONS</heading><section identifier="/us/state/tx/tac/t43/p10/c221/scE/s221.111"><num value="221.111">§221.111</num><heading>Denial of License</heading><content>(a) The department may deny an application for a new license or an application for a license renewal under Occupations Code Chapter 53 or Chapter 2302, and §211.3 of this title (relating to Criminal Offense Guidelines) or this chapter, if:(1) all the information required on the application is not complete;(2) the applicant or any owner, officer, director, or other person described in §211.2 of this title (relating to Application of Subchapter) made a false statement, material misrepresentation, or a material omission, on the application to issue, renew, or amend a license;(3) the applicant, or any owner, officer, director, or other person described in §211.2 of this title, has been convicted, or considered convicted under Occupations Code §53.021(d), by any local, state, federal, or foreign authority, of an offense that directly relates to the duties or responsibilities of the licensed occupation as described in §211.3 of this title or is convicted of an offense that is independently disqualifying under Occupations Code §53.021;(4) the applicant's or any owner's, officer's, director's, or other person described in §211.2 of this title, previous license was revoked;(5) the applicant has an ownership, organizational, managerial, or other business arrangement that would allow a person the power to direct, management, policies, or activities, of the applicant or license holder, whether directly or indirectly, who has been subject to disciplinary action, including suspension, revocation, denial, corrective action, cease and desist order, or assessment of a civil penalty, administrative fine, or similar assessment for a current or previous license, permit, or other authorization issued by any local, state, or federal regulatory authority; or(6) the applicant, or any owner, officer, or director, or other person described in §211.2 of this title whose current or previous license, permit, or other authorization issued by any local, state, or federal regulatory authority has been subject to disciplinary action, including suspension, revocation, denial, corrective action, cease and desist order, or assessment of a civil penalty, administrative fine, fee, or similar assessment.(b) If the department denies an application for a license to be issued under the authority of Occupations Code Chapter 2302, the applicant may request an administrative hearing in the manner specified in §224.54 of this title (relating to Notice of Department Decision).(c) In accordance with Occupations Code §2302.108, the department shall reject any application for issuance of a new license under Occupations Code Chapter 2302 filed by a person whose license is revoked before the first anniversary of the date of revocation.</content><note type="source"><p>Source Note: The provisions of this §221.111 adopted to be effective December 9, 2015, 40 TexReg 8802; amended to be effective October 31, 2020, 45 TexReg 7444; amended to be effective June 1, 2024, 49 TexReg 2760.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c221/scE/s221.112"><num value="221.112">§221.112</num><heading>Suspension, Revocation and Administrative Penalties</heading><content>The department may suspend or revoke a license or impose an administrative penalty if the license holder:(1) fails to meet or maintain the qualifications and requirements for a license;(2) violates any law relating to the purchase, sale, exchange, storage, or distribution of motor vehicles, including salvage motor vehicles and nonrepairable motor vehicles;(3) willfully defrauds a purchaser;(4) fails to maintain purchase, sales, and inventory records as required by Occupations Code, Chapter 2302, Transportation Code, Chapter 501, Chapter 217, Subchapter D of this title, or this chapter;(5) refuses or fails to comply with a request by the department to examine, during normal business hours, the license holder's records as required by Occupations Code, Chapter 2302, or this chapter;(6) engages in motor vehicle or salvage business without the required license;(7) engages in business as a salvage vehicle dealer at a location for which a license has not been issued by the department;(8) fails to notify the department of a change of the salvage vehicle dealer's license holder information as required under §221.19 of this title (relating to Notice of Change in License Holder Information);(9) fails to notify the department of a change in location prior to operating in a new location or closing a location in accordance with §221.18 of this title (relating to Additional, New, or Closed Location);(10) fails to remain regularly and actively engaged in the business for which the salvage vehicle dealer license is issued;(11) sells more than five (5) nonrepairable motor vehicles or salvage motor vehicles to the same person in a casual sale during a calendar year;(12) violates any provision of Occupations Code Chapters 2301 or 2302, Transportation Code Chapters 501, 502, or 503, or any board rule or order promulgated under those statutes;(13) uses or allows use of the salvage vehicle dealer's license or business location for the purpose of avoiding the requirements of Occupations Code Chapters 2301 or 2302, Transportation Code, Chapters 501, 502 or 503, or any board rule or order promulgated under those statutes;(14) violates any law, ordinance, rule or regulation governing the purchase, sale, exchange, or storage, of salvage motor vehicles or nonrepairable motor vehicles;(15) sells or offers for sale a nonrepairable motor vehicle or a salvage motor vehicle from any location other than the salvage vehicle dealer's licensed business location;(16) is, or any owner, officer, director, or other person described in §211.2 of this title (relating to Application of Subchapter), is convicted, or considered convicted under Occupations Code §53.021(d), by any local, state, federal, or foreign authority, of an offense that directly relates to the duties or responsibilities of the licensed occupation as described in §211.3 of this title (relating to Criminal Offense Guidelines) or an offense that is independently disqualifying under Occupations Code §53.021 after initial issuance or renewal of the salvage vehicle dealer license, or that has not been reported to the department as required;(17) makes a false statement, material misrepresentation, or material omission in any application or other information filed with the department;(18) fails to timely remit payment for administrative penalties imposed by the department;(19) engages in business without a license required under Occupations Code Chapters 2301 or 2302, or Transportation Code Chapter 503;(20) operates a salvage motor vehicle or a nonrepairable motor vehicle on public highways or allows another person to operate a salvage motor vehicle or a nonrepairable motor vehicle on public highways; or(21) deals in used automotive parts as more than an incidental part of the salvage vehicle dealer's primary business.</content><note type="source"><p>Source Note: The provisions of this §221.112 adopted to be effective December 9, 2015, 40 TexReg 8802; amended to be effective October 31, 2020, 45 TexReg 7444; amended to be effective June 1, 2024, 49 TexReg 2760.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c221/scE/s221.115"><num value="221.115">§221.115</num><heading>Refund of Fees</heading><content>In the absence of director approval, the department will not refund a fee paid by a license applicant or a license holder if:(1) the application or license is withdrawn, denied, suspended, or revoked; or(2) the license applicant or license holder is subject to an unpaid civil penalty imposed against the license applicant or license holder by a final order.</content><note type="source"><p>Source Note: The provisions of this §221.115 adopted to be effective December 9, 2015, 40 TexReg 8802; amended to be effective June 1, 2024, 49 TexReg 2760.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p10/c223"><num value="223">CHAPTER 223</num><heading>COMPLIANCE AND INVESTIGATIONS</heading><subchapter identifier="/us/state/tx/tac/t43/p10/c223/scA"><num value="A">SUBCHAPTER A</num><heading>FRAUD, WASTE, OR ABUSE</heading><section identifier="/us/state/tx/tac/t43/p10/c223/scA/s223.1"><num value="223.1">§223.1</num><heading>Purpose and Scope</heading><content>The purpose of this subchapter is to establish the following:(1) procedures for county tax assessor-collectors and deputies to report suspected fraud, waste, or abuse to the department relating to vehicle registration or titling; and(2) a risk-based monitoring system for the department to monitor county tax assessor-collectors and their deputies who use RTS.</content><note type="source"><p>Source Note: The provisions of this §223.1 adopted to be effective March 1, 2020, 45 TexReg 1234; amended to be effective August 29, 2024, 49 TexReg 6466.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c223/scA/s223.2"><num value="223.2">§223.2</num><heading>Definitions</heading><content>(a) The words and terms defined in Transportation Code, Chapter 501, have the same meaning when used in this chapter, except as otherwise provided by this chapter, unless the context clearly indicates otherwise.(b) The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise:(1) County tax assessor-collector--the person who serves as the assessor-collector of taxes for a Texas county under Article VIII, §14, of the Texas Constitution, as well as an employee of a county tax assessor-collector.(2) Deputy--a full service deputy under Chapter 217, Subchapter H of this title (relating to Vehicle Titles and Registration).(3) RTS--the department's registration and title system.</content><note type="source"><p>Source Note: The provisions of this §223.2 adopted to be effective March 1, 2020, 45 TexReg 1234; amended to be effective August 29, 2024, 49 TexReg 6466.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c223/scA/s223.3"><num value="223.3">§223.3</num><heading>Submission of Request</heading><content>(a) A county tax assessor-collector who suspects possible fraud, waste, or abuse by an employee, dealer, deputy, or any person transacting motor vehicle-related business for or with the county may submit a request to the department for review. The department may forward a submission to an appropriate law enforcement entity.(b) To submit a request to the department for review, the county tax assessor-collector must:(1) request a rejection of the suspected transaction through a department regional service center; and(2) mail or e-mail the following documents and information, as applicable, to the department in an envelope or e-mail message marked "Red Flag":(A) the original transaction;(B) a detailed narrative, including:(i) the name of a contact person with the county tax assessor-collector, including email address and phone number;(ii) the name of the employee submitting the request;(iii) a statement as to why the transaction is suspect;(iv) information about the employee or deputy suspected of committing fraud, waste, or abuse; and(v) any statements made by the customer submitting the suspect transaction;(C) any available video surveillance footage; and(D) any other relevant evidence or information pertaining to the transaction.(c) If a deputy suspects possible fraud, waste, or abuse by an employee, dealer, or any person transacting motor vehicle-related business for or with the deputy, the deputy must report the suspected fraud, waste, or abuse to the county tax assessor-collector. The county tax assessor-collector may then submit a request to the department for review in accordance with subsection (b) of this section.(d) If the department determines it will not open an investigation after reviewing a submitted request, the department will notify the submitting county tax assessor-collector.</content><note type="source"><p>Source Note: The provisions of this §223.3 adopted to be effective March 1, 2020, 45 TexReg 1234; amended to be effective August 29, 2024, 49 TexReg 6466.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c223/scA/s223.5"><num value="223.5">§223.5</num><heading>External Risk-Based Monitoring System</heading><content>(a) All county tax assessor-collectors, their contractors' staff, and the deputies who use RTS are subject to periodic examination by the department. As a result of the examination, the department will classify each county tax assessor-collector, each of their contractors' staff, and each deputy as priority or non-priority for the purposes of prioritizing reviews to determine whether there is evidence of fraud by the county tax assessor-collector, their contractors' staff, or a deputy. In classifying a county tax assessor-collector, their contractors' staff, or a deputy, the department may consider factors, including, but not limited to:(1) referrals or complaints received from partner state agencies;(2) referrals or complaints received from public safety agencies;(3) the retirement, resignation, or impeachment of the county tax assessor-collector;(4) a contingency that disrupted county motor vehicle title and registration operations, such as a natural disaster or the theft or the burglary of a county tax assessor-collector's premises;(5) previous compliance review designations;(6) previous instances of non-compliance; and(7) a complaint filed through an internal reporting mechanism, such as a Red Flag referral, telephone call, or an email received by the department's Consumer Relations Division (CRD), or any other means of communication with the department.(b) It is the department's goal to review each county tax assessor-collector, each of their contractors' staff, and each deputy as follows:(1) if the county tax assessor-collector, their contractors' staff person, or deputy is classified as a priority, they will be reviewed at least once per year; or(2) if the county tax assessor-collector, their contractors' staff person, or deputy is classified as a non-priority, they will be reviewed at least once every two years.(c) Examinations under this section may be virtual; on premises at the county tax assessor-collector's, their contractors' staff person's, or deputy's location; or some combination of these options.(d) The department may notify the county tax assessor-collector of possible fraudulent activity in the county tax assessor-collector's office when the department is authorized by law enforcement.</content><note type="source"><p>Source Note: The provisions of this §223.5 adopted to be effective August 29, 2024, 49 TexReg 6466.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t43/p10/c224"><num value="224">CHAPTER 224</num><heading>ADJUDICATIVE PRACTICE AND PROCEDURE</heading><subchapter identifier="/us/state/tx/tac/t43/p10/c224/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t43/p10/c224/scA/s224.1"><num value="224.1">§224.1</num><heading>Purpose and Scope</heading><content>This subchapter describes the procedures by which the department will adjudicate a contested case arising under Occupations Code, Chapters 2301 or 2302; Transportation Code, Chapters 502, 503, 621-623, 643, 645, or 1001-1005; or Transportation Code, §545.459(k), consistent with the requirements of Government Code, Chapter 2001. Unless expressly excluded or limited, this subchapter applies to every contested case in which the department has jurisdiction.</content><note type="source"><p>Source Note: The provisions of this §224.1 adopted to be effective June 1, 2024, 49 TexReg 2771; amended to be effective February 27, 2026, 50 TexReg 6258.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scA/s224.3"><num value="224.3">§224.3</num><heading>Definitions</heading><content>(a) The statutory definitions govern this chapter. In the event of a conflict, the definition or procedure referenced in statute controls.(b) When used in this chapter, the following words and terms shall have the following meanings unless the context clearly indicates otherwise.(1) Administrative Law Judge or ALJ--An individual appointed to serve as a presiding officer by the State Office of Administrative Hearings Chief Judge under Government Code, Chapter 2003, to conduct a hearing on matters within the department's jurisdiction.(2) APA--The Administrative Procedure Act, Government Code, Chapter 2001.(3) Authorized representative--An attorney authorized to practice law or, if authorized by the applicable subchapter, a non-attorney designated by a party to represent the party.(4) Board--The board of the Texas Department of Motor Vehicles, including department staff personnel to whom the board delegates an assigned duty.(5) Complaint--A matter filed under Occupations Code, §2301.460 or under Subchapters E or M, or under Transportation Code, Chapter 503.(6) Confidential Information--Information considered to be confidential under constitutional or statutory law or by judicial decision.(7) Contested Case--A proceeding in which the legal rights, duties, or privileges of a party are determined by the department after the opportunity for an adjudicative hearing.(8) Day--A calendar day.(9) Department--The Texas Department of Motor Vehicles.(10) Director--The division director of the department authorized by the board or by statute to act, including any department personnel to whom the division director delegates a duty assigned under this chapter.(11) Electronic filing or filed electronically--The electronic transmission of documents filed in a contested case by uploading the documents to a case docket using a department-designated system or department-designated email.(12) Electronic service or served electronically--The electronic transmission of documents filed in a contested case and sent to a party or a party's authorized representative by email or a department-designated system.(13) Electronic signature or signed electronically--An electronic version of a person's signature that is the legal equivalent of the person's handwritten signature, unless the document is required to be notarized or sworn. Electronic signature formats include:(A) an "/s/" and the person's name typed in the space where the signature would otherwise appear;(B) an electronic graphical image or scanned image of the signature; or(C) a "digital signature" based on accepted public key infrastructure technology that guarantees the signer's identity and data integrity.(14) Evidence--Testimony and exhibits admitted into the hearing record by an ALJ or hearings examiner to prove or disprove the existence of an alleged fact.(15) Ex Parte Communication--Direct or indirect communication between a state agency, party, person, or representative of those entities and an ALJ, board member, or hearings examiner in connection with an issue of law or fact in a contested case where the other known parties to the contested case do not have notice of the communication and an opportunity to participate. Ex parte communication does not include:(A) communication where all parties to the contested case have notice of the communication and an opportunity to participate;(B) communication concerning uncontested administrative or uncontested procedural matters;(C) consultation between a board member or hearings examiner and the department's general counsel or hearings personnel;(D) communication required for the disposition of an ex parte matter or otherwise expressly authorized by law; and(E) communication between a state agency, party, person, or representative of those entities and a mediator made in an effort to evaluate a contested matter for mediation or to mediate or settle a contested matter.(16) Exhibit--A document, record, photograph, video, or other form of data compilation, regardless of media, or other tangible object offered by a party as evidence.(17) Filed--The receipt by the department of a document and required payment, if applicable.(18) Final order authority--The person with authority under statute or a board rule to issue a final order.(19) GDN--General distinguishing number as defined in Transportation Code, Chapter 503.(20) Hearings Examiner--An individual appointed by the Chief Hearings Examiner to serve as a presiding officer to hear contested cases under Occupations Code, §2301.204 or Subchapter M.(21) License holder--A person holding a license under Occupations Code, Chapters 2301 or 2302, or a GDN or other license issued under Transportation Code, Chapter 503.(22) Mediation--A confidential, informal dispute resolution process in which a qualified impartial person facilitates communication between the contested case parties to promote settlement, reconciliation, or understanding, as defined by Occupations Code, §2301.521.(23) Party--A person, including the department, named or allowed to participate in a contested case.(24) Person--As defined in Occupations Code, §2301.002.(25) Personal information--As defined by Transportation Code, §730.003(6).(26) Personal identifying information--As defined by Business and Commerce Code, §521.002(1).(27) Pleading--A filed document that requests procedural or substantive relief, makes a claim, alleges a fact, denies an allegation, makes or responds to a legal argument, or otherwise addresses a matter involved in a contested case.(28) Protest--To challenge a person's licensing application or a decision by a license holder, as provided under Occupations Code, Chapter 2301.(29) Redact--To remove a reference from a document.(30) Sensitive personal information--As defined by Business and Commerce Code, §521.002(2).(31) SOAH--The State Office of Administrative Hearings.(32) Stipulation--A binding agreement among opposing parties concerning a relevant issue or fact.(33) TAC--The Texas Administrative Code.(34) TRCP--The Texas Rules of Civil Procedure, which may be found on the website of the Supreme Court of Texas.(35) TRE--The Texas Rules of Evidence, which may be found on the website of the Supreme Court of Texas.</content><note type="source"><p>Source Note: The provisions of this §224.3 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scA/s224.5"><num value="224.5">§224.5</num><heading>Prohibited Communication</heading><content>(a) No person, party, attorney of record, or authorized representative in any contested case shall violate Government Code, §2001.061 by directly or indirectly engaging in ex parte communication concerning a contested case with an ALJ, board member, board delegate, final order authority, or a hearings examiner assigned to render a decision or make findings of fact and conclusions of law in a contested case.(b) Unless prohibited by Government Code, §2001.061, department staff who did not participate in the hearing may advise a board member, a board delegate, a final order authority, or a hearings examiner, regarding a contested case and any procedural matters.(c) Department staff shall not recommend a final decision to the board unless the department is a party to the contested case.(d) A violation of this section shall be promptly reported to the board chair or chief hearings examiner, as applicable, and the general counsel of the department.(e) The general counsel shall ensure that a copy or summary of the ex parte communication is included with the record of the contested case and that a copy is forwarded to all parties or their authorized representatives.(f) The general counsel may take any other appropriate action otherwise provided by law.</content><note type="source"><p>Source Note: The provisions of this §224.5 adopted to be effective June 1, 2024, 49 TexReg 2771; amended to be effective February 27, 2026, 50 TexReg 6258.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scA/s224.7"><num value="224.7">§224.7</num><heading>Appearance</heading><content>(a) General. Any party to a contested case may appear in person or by an authorized representative. An authorized representative may be required to show authority to represent a party.(b) Appearance by authorized representative. An authorized representative who has not entered an appearance as a matter of record in a contested case shall enter an appearance by filing with the department appropriate documentation that contains the representative's mailing address, email address, and telephone number. If the authorized representative's authority is challenged, the representative must show authority to appear as the party's representative.(c) Attorney in charge. When more than one attorney makes an appearance in a contested case on behalf of a party, the attorney whose signature appears first on the initial document filed in the contested case shall be the attorney in charge for that party unless another attorney is specifically designated in writing. All communication sent by the department or other party regarding the contested case shall be sent to the attorney in charge unless otherwise requested by a party.(d) Intervention. Any public official or other person having an interest in a contested case may, upon request to the ALJ or hearings examiner, be allowed to intervene. A person requesting to intervene in a contested case may be required to disclose that person's interest in the contested case before permission to intervene will be granted.(e) A person may be invited to participate in a contested case mediation if all parties and the mediator agree that the person's participation will facilitate understanding and resolution of the contested case. However, an invited person who is not a party is not required to participate in a mediation.(f) This rule does not allow a person to engage in the unauthorized practice of law.</content><note type="source"><p>Source Note: The provisions of this §224.7 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scA/s224.9"><num value="224.9">§224.9</num><heading>Computing Time</heading><content>(a) General. Any time period prescribed or allowed by this chapter, by order of the board, or by any applicable statute shall be computed in accordance with Government Code, §311.014.(b) Application of this section. This section applies, unless another method is required by statute, another rule in this chapter, or order.(c) Computing time periods. When computing a time period under this chapter:(1) the day of the act, event, or default from which the designated time period begins to run is not counted; and(2) the last day of the time period is counted, unless it is a Saturday, Sunday, or legal holiday, in which case the period is extended to include the next day that is not a Saturday, Sunday, or legal holiday.(d) Calendar days. Time shall be computed using calendar days rather than business days, unless otherwise specified in statute or rule.</content><note type="source"><p>Source Note: The provisions of this §224.9 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scA/s224.11"><num value="224.11">§224.11</num><heading>Filing and Service of Documents</heading><content>(a) Each document required or allowed to be filed with the department under this chapter must be filed as required under this section and the relevant subchapter for the applicable type of contested case.(b) A copy of each document filed in a contested case shall be filed or served on the same date upon:(1) the department, and(2) each party or the party's authorized representative or attorney in charge.(c) A certificate of service shall accompany each document. A certificate of service by the party or party's authorized representative showing timely service in a manner described in the relevant subchapter shall be prima facie evidence of timely service. This section does not preclude the department or any party from offering proof that the document was not timely filed or served.(d) To be timely filed, a document must be received by the department within the time specified by statute, rule, or department order. A document received after the specified time, notwithstanding the means of delivery, shall be deemed untimely. Electronic filing is considered timely if the document is received by 5:00 p.m. Central Standard Time or Daylight Savings Time when in effect. Electronic filing after 5:00 p.m. shall be deemed received on the following day or the next business day if filed on a Saturday, Sunday, or legal holiday.(e) A document filed electronically must:(1) be legible and in a portable document format (PDF), unless the department requests a different format;(2) be directly converted to PDF rather than scanned, to the extent possible;(3) not be locked;(4) include the email address of the party or authorized representative who electronically filed the document;(5) include the docket number and the name of the contested case in which the document is filed;(6) be titled or described in a manner that allows the department and the parties to reasonably ascertain the contents of the document; and(7) include an electronic signature.(f) The department is not responsible for a filing party's user, system, transmission, or service error.(g) If a document is not filed or served timely due to a system outage of a department-designated system, the filing party may send the document to a department-designated email address or seek appropriate relief from the final order authority.(h) A party must redact information in a document before filing if the document contains personal identifying information, sensitive identifying information, or other confidential information that is not necessary to the resolution of the case. If the information is necessary to the resolution of the case, each page of the document must be conspicuously marked as "CONFIDENTIAL - NOT FOR PUBLIC RELEASE" in bold 12-point or larger type in the document header or footer. A party may request a document be filed under seal if allowed by other law, order, or rule.</content><note type="source"><p>Source Note: The provisions of this §224.11 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scA/s224.13"><num value="224.13">§224.13</num><heading>Discovery</heading><content>(a) Party Cooperation. The parties and their authorized representatives shall cooperate in discovery and shall endeavor to make any agreement reasonably necessary for the efficient disposition of the contested case.(b) Discovery Request. A party may request that the department issue a commission or a subpoena if the parties cannot agree, or a contested case requires testimony, documents, or information from a person who is not a party. A party must submit a commission or subpoena request to the department's Office of General Counsel for review.(c) Commission to take a deposition. Upon the written request of a party, the executive director may issue a written commission directed to an officer, authorized by statute, to take a deposition of a witness.(d) Subpoena to produce documents. Upon the written request of a party, the executive director may issue a subpoena for the production of documents. The written request must identify the documents with as much detail as possible and must include a statement of their relevance to the issues in the contested case.(e) Subpoena for attendance at a hearing or a deposition. Upon the written request of a party, the executive director may issue a subpoena for the attendance of a witness at a hearing or a deposition in a contested case. The subpoena may be directed to any person without regard to the distance between the location of the witness and the location of the hearing.(f) The executive director is authorized to delegate the authority to department staff to issue a subpoena and a commission.(g) Limits on discovery. A commission or subpoena will only be issued on a showing of good cause and receipt of a deposit sufficient to ensure payment of expenses and fees related to the subpoena, including statutory witness fees. A commission or subpoena will not be issued if it appears to be duplicative, dilatory, sought for the purpose of harassment, or if it would unduly inconvenience the person to whom it is directed. Issuance of a commission or subpoena will be subject to the provisions of Government Code, Chapter 2001, and SOAH rules.</content><note type="source"><p>Source Note: The provisions of this §224.13 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scA/s224.15"><num value="224.15">§224.15</num><heading>Hearing Recording and Transcription Cost</heading><content>(a) Except as provided by Subchapter G of this chapter (relating to Lemon Law and Warranty Performance Claims), a hearing in a contested case will be transcribed by a court reporter if anticipated to last longer than one day.(b) The costs of transcribing the hearing and for the preparation of an original transcript of the record for the department shall be:(1) assessed to a party requesting the transcript in a contested case;(2) shared by the parties in a contested case under Subchapter C of this chapter (relating to Contested Cases Between Motor Vehicle Industry License Holders or Applicants); or(3) assessed as directed by the ALJ or hearings examiner.(c) Copies of recordings or transcriptions of a contested case hearing will be provided to any party upon written request and upon payment for any duplication costs incurred by the department.</content><note type="source"><p>Source Note: The provisions of this §224.15 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scA/s224.17"><num value="224.17">§224.17</num><heading>Consolidation of Proceedings</heading><content>No contested case proceedings including two or more related cases or claims shall be jointly heard without the consent of all parties, unless the ALJ or hearings examiner finds that justice and efficiency are better served by the consolidation.</content><note type="source"><p>Source Note: The provisions of this §224.17 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scA/s224.19"><num value="224.19">§224.19</num><heading>Informal Disposition</heading><content>(a) Notwithstanding any other provision in this chapter, at any time during the contested case, the final order authority may informally dispose of a contested case in whole or in part by stipulation, agreement, dismissal, or consent order.(b) If the parties have settled or otherwise determined that a contested case proceeding is not required, the party who initiated the contested case shall file a motion to dismiss the contested case from the docket and present a proposed agreed order or dismissal order to the final order authority. If the party who initiated the contested case fails to file a motion to dismiss as required under this subsection, the final order authority may issue a dismissal order after providing the parties with a 30-day notice.(c) A proposed agreed order submitted to the final order authority by the parties must contain proposed findings of fact and conclusions of law.(d) Upon receipt of the proposed agreed order, the final order authority may:(1) adopt the settlement agreement and issue a final order;(2) reject the settlement agreement and remand the contested case for a hearing; or(3) take other action that the final order authority finds just.</content><note type="source"><p>Source Note: The provisions of this §224.19 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scA/s224.21"><num value="224.21">§224.21</num><heading>Waiver of Hearing</heading><content>After the department issues a notice of hearing in a contested case, a party may waive a hearing and consent to an agreed order. An agreed order proposed by the parties is subject to the approval of the final order authority.</content><note type="source"><p>Source Note: The provisions of this §224.21 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scA/s224.23"><num value="224.23">§224.23</num><heading>Hearings to be Public</heading><content>A hearing in a contested case shall be open to the public.</content><note type="source"><p>Source Note: The provisions of this §224.23 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scA/s224.25"><num value="224.25">§224.25</num><heading>Extension of Time</heading><content>(a) The final order authority may not extend the time for filing a document when a statute or rule specifies the time period by which a document must be filed with the department.(b) When an act is discretionary or allowed to be done at or within a specified time in accordance with this chapter and Government Code, Chapter 2001, the final order authority, with good cause shown, may:(1) order the specific period extended if the extension is requested before the expiration of the period previously specified; or(2) allow the act to be done after the expiration of the specified period, provided good cause is shown for the failure to act.</content><note type="source"><p>Source Note: The provisions of this §224.25 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scA/s224.27"><num value="224.27">§224.27</num><heading>Final Order; Motion for Rehearing</heading><content>(a) The provisions of Government Code, Chapter 2001, Subchapter F, govern the issuance of a final order issued under this subchapter and a motion for rehearing filed in response to a final order. (b) Except as provided by subsection (c) of this section and §224.29 of this title (relating to Delegation of Final Order Authority), the board has final order authority in a contested case filed under Occupations Code, Chapters 2301 or 2302; Transportation Code, Chapters 502, 503, 621-623, 643, 645, and 1001-1005; or Transportation Code, §545.459(k). (c) The hearings examiner has final order authority in a contested case filed under Occupations Code, §2301.204 or Occupations Code Chapter 2301, Subchapter M. (d) A department determination and action denying access to the license plate system becomes final within 26 days of the date of the notice denying access to a database, unless the dealer: (1) requests a hearing regarding the denial of access, or (2) enters into a settlement agreement with the department. (e) Unless a timely motion for rehearing is filed with the appropriate final order authority as provided by law, an order shall be deemed final and binding on all parties. All administrative remedies are deemed to be exhausted as of the effective date of the final order. (f) If a timely motion for rehearing is not filed, the final order shall be deemed final and binding in accordance with the provisions of Government Code, §2001.144. (g) If a final and binding order includes an action on a license, the department may act on the license on the date the final order is deemed final and binding, unless the action is stayed by a court order.</content><note type="source"><p>Source Note: The provisions of this §224.27 adopted to be effective June 1, 2024, 49 TexReg 2771; amended to be effective July 1, 2025, 49 TexReg 9017; amended to be effective February 27, 2026, 50 TexReg 6258.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scA/s224.29"><num value="224.29">§224.29</num><heading>Delegation of Final Order Authority</heading><content>(a) In accordance with Occupations Code, §2301.154(c) and Transportation Code, §1003.005(b), except as provided by subsection (b) of this section, the director of the division that regulates the distribution and sale of motor vehicles is authorized to issue, where there has not been a decision on the merits, a final order in a contested case under Subchapters B and C, including, but not limited to a contested case resolved:(1) by settlement;(2) by agreed order;(3) by withdrawal of the complaint;(4) by withdrawal of a protest;(5) by dismissal for want of prosecution including:(A) failure of a complaining or protesting party to participate in scheduling mediation or to appear at mediation as required under Subchapter C of this chapter (relating to Contested Cases Between Motor Vehicle Industry License Holders or Applicants);(B) failure of a complaining or protesting party to respond to department requests for information or scheduling matters;(C) failure of a complaining or protesting party to dismiss a contested case that has been resolved by the parties;(6) by dismissal for want of jurisdiction;(7) by summary judgment or summary disposition;(8) by default judgment; or(9) when a party waives opportunity for a contested case hearing.(b) In accordance with Occupations Code, §2301.704 and §2301.711, a hearings examiner is authorized to issue a final order in a contested case brought under Occupations Code, §2301.204 or §§2301.601-2301.613.(c) In accordance with Transportation Code, §1003.005, the director of the department's Motor Carrier Division is delegated the authority to issue a final order in contested cases under Subchapter D of this chapter excluding contested cases for which the department's director, as defined by Transportation Code, §643.001, is expressly authorized to issue the final order under Transportation Code, Chapter 643.(d) In accordance with Transportation Code, §1003.005, the director of the department's Motor Carrier Division is authorized to issue a final order in a contested case under §224.294 of this title (relating to Suspension, Revocation, or Cancellation of Automated Motor Vehicle Authorization under Transportation Code, §545.459) when:(1) a SOAH ALJ has not submitted a proposal for decision to the department for consideration by the final order authority; or(2) a SOAH ALJ submits a proposal for decision regarding a default proceeding to the department for consideration by the final order authority.(e) In a contested case in which the board has delegated final order authority under subsection (a), (c) or (d) of this section, a motion for rehearing shall be filed with and decided by the final order authority delegate.</content><note type="source"><p>Source Note: The provisions of this §224.29 adopted to be effective June 1, 2024, 49 TexReg 2771; amended to be effective February 27, 2026, 50 TexReg 6258.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scA/s224.31"><num value="224.31">§224.31</num><heading>Cost of Record on Appeal</heading><content>(a) If a final decision in a contested case is appealed and the department is required to transmit to the court the original or a certified copy of the administrative record, or any part thereof, the appealing party shall pay the costs of preparation of the record, unless waived by the department in whole or in part.(b) A charge imposed as provided by this section is a court cost and may be assessed by the court in accordance with the TRCP.</content><note type="source"><p>Source Note: The provisions of this §224.31 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c224/scB"><num value="B">SUBCHAPTER B</num><heading>MOTOR VEHICLE, SALVAGE VEHICLE, AND TRAILER INDUSTRY ENFORCEMENT</heading><section identifier="/us/state/tx/tac/t43/p10/c224/scB/s224.50"><num value="224.50">§224.50</num><heading>Purpose and Scope</heading><content>This subchapter, and Subchapters A, E, and F, describe the procedures by which the department will adjudicate alleged violations of Occupations Code, Chapter 2301 and 2302, and Transportation Code, Chapter 503 brought by the department against a license applicant, license holder, or unlicensed person engaging in an activity or business that requires a license under these statutes.</content><note type="source"><p>Source Note: The provisions of this §224.50 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scB/s224.52"><num value="224.52">§224.52</num><heading>Cease and Desist Order; Delegation of Authority</heading><content>(a) When a person is alleged to be violating a provision of Occupations Code, Chapter 2301, or a board rule or order, the department may enter an interlocutory order requiring the person to cease and desist from the violation under the following procedures.(1) In accordance with Occupations Code, §2301.154(c) and Transportation Code, §1003.005(b), the department's Enforcement Division director is delegated the authority to issue an interlocutory cease-and-desist order under the procedures established in this subsection.(2) A person requesting an interlocutory cease-and-desist order must present a petition or complaint, verified by affidavit, containing a plain statement of the grounds for seeking the cease-and-desist order to the department's Enforcement Division director in accordance with the procedures set forth in §224.84 of this section (regarding Filing and Service of a Protest, Complaint, or Other Document). The department shall not issue an interlocutory cease-and-desist order without a verified petition or complaint that meets the requirements of this subsection.(3) At least three days prior to entering an interlocutory order requiring a person to cease and desist, the department must send a letter notifying the person of the allegations against them to all current addresses for the person in the department's records by both electronic service and certified mail, return receipt requested.(4) The notice letter must include a statement of the alleged conduct that forms the basis for the interlocutory cease-and-desist order and must provide the person the opportunity to show cause in writing within three days why the department should not issue a cease-and-desist order.(5) In considering whether to issue an interlocutory cease-and-desist order, the department must determine if the conditions set forth in Occupations Code, §2301.802(b) are present and consider the person's written response, if any, to the letter notifying the person of the alleged violations. The department shall email a copy of the department's decision to the person in addition to sending a copy by certified mail, return receipt requested.(6) Each interlocutory cease-and-desist order must include:(A) the date and hour of issuance;(B) a statement of which of the conditions in Occupations Code, §2301.802(b) the department determined were present to necessitate the cease-and-desist order;(C) a notice of hearing at SOAH to determine the validity of the order;(D) the reasons for its issuance; and(E) a description in reasonable detail of the act or acts to be restrained.(7) If the ALJ determines after a hearing that the cease-and-desist order should remain in place during the pendency of the contested case, the ALJ shall issue an interlocutory cease-and-desist order.(8) An interlocutory cease-and-desist order remains in effect until vacated or incorporated in a final order.(9) A party may immediately appeal an interlocutory cease-and-desist order issued by an ALJ to the board under §224.192 of this title (relating to Appeal of an Interlocutory Order) while the contested case is at SOAH.(b) The department may issue a final cease-and-desist order if a person who is not licensed under Occupations Code, Chapter 2302 is found, after notice and opportunity for a hearing, to have violated that chapter or a rule or order adopted under that chapter. The department may also issue a final cease-and-desist order under Occupations Code, Chapter 2301 to a person found, after notice and opportunity for a hearing, to have violated that chapter, a board rule, or an order.(1) If the department decides to seek a cease-and-desist order under subsection (b) of this section, the department will send a letter notifying the person of the allegations against them to all current addresses for the person in the department's records by both electronic service and certified mail, return receipt requested. The notice letter will contain:(A) a summary of the factual allegations;(B) a description of the statutory provision, rule or order the person is alleged to have violated;(C) a description in reasonable detail of the act or acts to be restrained by the cease-and-desist order;(D) a statement regarding the person's right to request a hearing;(E) the procedure to request a hearing, including the deadline for filing; and(F) notice to the person that the department will issue a cease-and-desist order that will become final on the date specified if the person fails to timely request a hearing.(2) A person to whom a cease-and-desist notice letter under subsection (b) is sent may file a written request for a hearing before a SOAH ALJ. The person must submit, in writing, a request for a hearing under this section to the department's contact listed in the notice letter provided under subsection (b)(1) of this section. The department must receive the request for a hearing within 26 days of the date the notice letter is mailed.(3) If the person does not make a timely written request for a hearing within 26 days of the date the cease-and-desist letter is mailed, the allegations are deemed admitted on the 27th day and a final cease-and-desist order including sanctions may be issued by the final order authority.(c) Once jurisdiction for the conduct of a contested case hearing transfers to SOAH, an ALJ may act on a party's motion regarding an existing cease-and-desist order issued by the department or consider a new motion for a cease-and-desist order by a party.</content><note type="source"><p>Source Note: The provisions of this §224.52 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scB/s224.54"><num value="224.54">§224.54</num><heading>Civil Penalty and Revocation Assessment</heading><content>(a) Occupations Code, §2301.801 and §2302.354, and Transportation Code, §503.095 govern the amount of a civil penalty that may be assessed by the department against a license holder.(b) In determining the amount of civil penalty to assess the department will consider the following aggravating factors:(1) the seriousness of the violation, including the nature, circumstances, extent, and gravity of any prohibited act, and the harm or potential harm to the safety of the public;(2) the economic damage to the public caused by the violation;(3) any history of previous violations including whether the license holder previously entered into an agreed order with the department or otherwise received a warning or reduced penalty;(4) the amount necessary to deter a future violation; and(5) any other matter that justice may require, including:(A) the number of violations or number of consumers harmed by violation(s);(B) whether the consumer received a title;(C) whether the license holder misused license plates;(D) whether the license holder attempted to conceal a violation;(E) whether the act constituting the violation was intentional, premeditated, knowing, or grossly negligent; and(F) whether an order issued by the department was violated.(c) In determining whether license revocation is appropriate, the department will consider the following factors:(1) whether the license holder is unfit under standards governing the occupation, including qualifications for a license;(2) whether the license holder made a material misrepresentation in any written communication or information provided to the department;(3) whether the license holder willfully defrauded a purchaser;(4) whether the license holder misused license plates, including whether the license holder attempted to avoid inspection requirements;(5) whether the license holder failed to fulfill a written agreement with a retail purchaser of a vehicle or motor vehicle; and(6) whether the license holder failed to attend an approved dealer training seminar as ordered in an agreed final order.(d) The department will consider the following mitigating factors in determining the amount of civil penalty to assess or whether license revocation is appropriate:(1) acknowledgment by the licensee of any wrongdoing;(2) willingness to cooperate with the department; and(3) efforts to correct a violation.(e) The department will publish a disciplinary matrix on the department website to provide guidance to license holders on the administrative penalties and other sanctions that may be assessed for the most common violations. The department will consider the disciplinary matrix published at the time of the violation; however, the disciplinary matrix does not prevent the department from seeking administrative penalties and other sanctions above or below the recommended ranges listed in the disciplinary matrix. Also, the disciplinary matrix does not prevent the board or the board's delegate from ordering administrative penalties and other sanctions above or below the recommended ranges listed in the disciplinary matrix.</content><note type="source"><p>Source Note: The provisions of this §224.54 adopted to be effective June 1, 2024, 49 TexReg 2771; amended to be effective July 1, 2025, 49 TexReg 9017.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scB/s224.56"><num value="224.56">§224.56</num><heading>Notice of Department Decision</heading><content>(a) The department shall issue a Notice of Department Decision to a license applicant, license holder, or other person by certified mail, return receipt requested, to the last known address and email address upon a determination under Occupations Code, Chapters 2301 and 2302 or Transportation Code, Chapter 503 that:(1) an application for a license should be denied; or(2) an administrative sanction should be imposed.(b) The last known address is the mailing address provided by the person in the department-designated licensing system.(c) A Notice of Department Decision shall include:(1) a statement describing the department decision and the effective date;(2) a description of each alleged violation;(3) a description of each administrative sanction being proposed;(4) a statement which sets out the legal basis for each administrative sanction;(5) a statement informing the license applicant, license holder, or other person of the right to request a hearing;(6) the procedure to request a hearing, including the deadline for filing a request with the department and the acceptable electronic methods to request a hearing; and(7) notice to the license applicant, license holder, or other person that the proposed decision and administrative sanctions in the Notice of Department Decision will become final on the date specified if the license applicant, license holder, or other person fails to timely request a hearing in accordance with subsection (d) of this section.(d) To receive a hearing, the license applicant, license holder, or other person must submit a written request for a hearing under this section to the department. The department must receive a hearing request within 26 days of the date of the Notice of Department Decision for the request to be considered timely.(e) If the department receives a timely request for a hearing, the department will contact the license holder and attempt to informally resolve the contested case. If the license holder and the department cannot informally resolve the contested case, the department will refer the contested case to SOAH to set a hearing date and will give notice to the license applicant, license holder, or other person of the date, time, and location of the hearing.(f) If the license applicant, license holder, or other person does not make a timely request for a hearing or agree to settle the contested case within 26 days of the date of the Notice of Department Decision, the allegations are deemed admitted on the 27th day and a final order including sanctions may be issued by the final order authority.</content><note type="source"><p>Source Note: The provisions of this §224.56 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scB/s224.58"><num value="224.58">§224.58</num><heading>Denial of Dealer Access to License Plate System</heading><content>(a) In this section "fraudulently obtained license plates from the license plate system" means misuse by a dealer account user of the license plate system authorized under Transportation Code, §503.063, §503.0631, or §503.065 to obtain or issue:(1) an excessive number of license plates relative to dealer sales;(2) a license plate for a vehicle or vehicles not in the dealer's inventory (a vehicle is presumed not to be in the dealer's inventory if the vehicle is not listed in the relevant monthly Vehicle Inventory Tax Statement); (3) access to the license plate system for a fictitious user or person using a false identity;(4) a license plate for a vehicle or a motor vehicle when a dealer is no longer operating at a licensed location;(5) a license plate for a vehicle or a motor vehicle not located at the dealer's licensed location or storage lot; or(6) a license plate for a vehicle or motor vehicle that is not titled or permitted by law to be operated on a public highway. (b) The department shall deny a dealer access to the license plate system effective on the date the department sends notice electronically and by certified mail to the dealer that the department has determined, directly or through an account user, that the dealer has fraudulently obtained or issued a license plate in the license plate system or has been denied access to the temporary tag database. A dealer may seek a negotiated resolution with the department by demonstrating the dealer took corrective action or that the department's determination was incorrect.(c) Notice shall be sent to the dealer's last known mailing address and last known email address in the department-designated licensing system.(d) A dealer may request a hearing on the denial of access to the license plate system, as provided by Subchapter O, Chapter 2301, Occupations Code. The request must be in writing and the dealer must request a hearing under this section. The department must receive the written request for a hearing within 26 days of the date of the notice denying access to the license plate system. The request for a hearing does not stay the denial of access under subsection (b) of this section. A dealer may continue to seek a negotiated resolution with the department after a request for hearing has been submitted under this subsection by demonstrating the dealer took corrective action or that the department's determination was incorrect.(e) The department may also issue a Notice of Department Decision stating administrative violations as provided in §224.56 of this title (relating to Notice of Department Decision) concurrently with the notice of denial of access under this section. A Notice of Department Decision may include notice of any violation, including a violation listed under subsection (a) of this section.(f) A department determination and action denying access to the license plate system becomes final if the dealer does not request a hearing or enter into a settlement agreement with the department within 26 days of the date of the notice denying access to the license plate system.</content><note type="source"><p>Source Note: The provisions of this §224.58 adopted to be effective June 1, 2024, 49 TexReg 2771; amended to be effective July 1, 2025, 49 TexReg 9017; amended to be effective October 9, 2025, 50 TexReg 6542.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scB/s224.60"><num value="224.60">§224.60</num><heading>Filing and Service of Documents</heading><content>Each document required or allowed to be filed with the department under this subchapter must be filed electronically in a department-designated system or according to written instructions provided by the department.</content><note type="source"><p>Source Note: The provisions of this §224.60 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scB/s224.62"><num value="224.62">§224.62</num><heading>Referral to SOAH</heading><content>(a) If the department receives a timely request for a hearing and the parties are unable to informally resolve or dispose of the contested case, the department will refer the contested case to SOAH by filing a Request to Docket form and related documents as required under SOAH rules.(b) When SOAH accepts the department's request to docket a contested case, jurisdiction transfers to SOAH.</content><note type="source"><p>Source Note: The provisions of this §224.62 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scB/s224.64"><num value="224.64">§224.64</num><heading>Notice of Hearing</heading><content>Once SOAH provides the department with the initial hearing date, time, and place, the department shall notify the parties. The contested case proceeds according to Subchapter E of this chapter (relating to Contested Cases Referred to SOAH).</content><note type="source"><p>Source Note: The provisions of this §224.64 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c224/scC"><num value="C">SUBCHAPTER C</num><heading>CONTESTED CASES BETWEEN MOTOR VEHICLE INDUSTRY LICENSE HOLDERS OR APPLICANTS</heading><section identifier="/us/state/tx/tac/t43/p10/c224/scC/s224.80"><num value="224.80">§224.80</num><heading>Purpose and Scope</heading><content>This subchapter, and Subchapters A, E, and F of this chapter describe the procedures by which the department will adjudicate a protest or complaint filed by a license holder against another license holder or license applicant under Occupations Code, Chapter 2301, Subchapters H, I, or J.</content><note type="source"><p>Source Note: The provisions of this §224.80 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scC/s224.82"><num value="224.82">§224.82</num><heading>Form of a Protest or Complaint</heading><content>(a) Protest. A franchised dealer that wishes to protest an application shall give notice in accordance with Occupations Code, Chapter 2301. The notice of protest shall:(1) be in writing and signed by an owner or officer authorized to sign on behalf of the protesting dealer filing the notice;(2) state the statutory basis upon which the protest is made;(3) assert how the protesting dealer meets the standing requirements under §215.119 of this title (relating to Standing to Protest) to protest the application;(4) include the notice of opportunity to protest sent to the dealer; and(5) state that the protest is not made for purposes of delay or for any other purpose except for justifiable cause.(b) Complaint. If a license holder wishes to file a complaint against another license holder under Occupations Code, Chapter 2301, Subchapters H, I, or J, the complaint must:(1) be in writing and signed by an owner or officer authorized to sign on behalf of the complainant;(2) state sufficient facts to enable the department and the party complained against to know the nature of the complaint and the specific problems or circumstances forming the basis of the claim for relief under the statute; and(3) state the statutory provision under which the complaint is made.</content><note type="source"><p>Source Note: The provisions of this §224.82 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scC/s224.84"><num value="224.84">§224.84</num><heading>Filing and Service of a Protest, Complaint, or Other Document</heading><content>(a) A party must file and serve a complaint, protest, or other document required or allowed to be filed with the department under this subchapter electronically in the department-designated licensing system, and include a Certification of Responsibility, a form provided by the department.(b) Once a docket number has been assigned to a contested case by either the department or SOAH, a party must include all assigned docket numbers on a pleading, motion, correspondence, or other document filed in the contested case.</content><note type="source"><p>Source Note: The provisions of this §224.84 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scC/s224.86"><num value="224.86">§224.86</num><heading>Review of a Protest or Complaint</heading><content>(a) The department will review a protest or complaint to determine whether:(1) a hearing is appropriate under Occupations Code, Chapter 2301; Transportation Code, Chapter 503; or Board rule; and(2) the protest or hearing document meets minimum requirements.(b) If the department cannot determine whether a complaint meets minimum requirements, the department may contact the protestant, complainant, or other person for additional information.(c) If the department determines that a protest or complaint meets minimum requirements, a protest or complaint will be processed in accordance with this subchapter.</content><note type="source"><p>Source Note: The provisions of this §224.86 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scC/s224.88"><num value="224.88">§224.88</num><heading>Docketing and Notice of a Protest or Complaint</heading><content>(a) If a protest or complaint meets minimum requirements, the department will docket the contested case and assign a docket number.(b) The department will notify the contested case parties that a statutory stay under Occupations Code, §2301.803 is in effect.(c) The department will assign a department mediator and notify the contested case parties. Within seven days of the department notice date, each party must either:(1) accept the assigned department mediator; or(2) decline the assigned department mediator and retain a private mediator and comply with the requirements of §224.90 of this title (relating to Mediation).</content><note type="source"><p>Source Note: The provisions of this §224.88 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scC/s224.90"><num value="224.90">§224.90</num><heading>Mediation</heading><content>(a) Except as provided by subsection (b), parties to a contested case filed under this subchapter are required to participate in mediation before the department will refer a contested case to SOAH for a hearing.(b) This section does not limit the parties' ability to settle a case without mediation.(c) The department will provide mediation services by a staff member qualified to serve as an impartial third party in accordance with Civil Practice and Remedies Code, Chapter 154.(d) The mediation will conclude within 60 days of the date a contested case is assigned to a department mediator, unless the mediation deadline is extended. The department mediator may extend the mediation deadline based on a written request by a party or at the department mediator's discretion.(e) If the parties do not agree on a mediation date within 30 days, the department mediator may set a date for mediation by notifying the parties in writing at least 10 days before the mediation date.(f) At the discretion of the department mediator, a party may participate in scheduled mediation either in person or remotely using telephonic or videoconferencing technology.(g) A party that declines to use the assigned department mediator shall:(1) confer with each contested case party; and(2) within 30 days of receiving notice from the department under §224.88 of this title (relating to Docketing and Notice of a Protest or Complaint), file with the department a joint notice of intent to retain a private mediator.(h) The joint notice of intent to retain a private mediator must include:(1) the name, address, email address, and telephone number of the private mediator agreed upon by the parties;(2) a statement that the parties have entered into an agreement with the private mediator regarding the mediator's rate, method of compensation, and party responsibility for fee payment;(3) an affirmation that the private mediator qualifies for appointment as an impartial third party in accordance with Civil Practice and Remedies Code, Chapter 154;(4) a statement that the mediation will conclude within 60 days of the department's notice under §224.88 of this title, unless the mediation deadline is extended at the department's discretion; and(5) the signature of each party or authorized representative.(i) All communication and documents provided by a contested case party or invited person in a mediation are confidential and subject to the Governmental Dispute Resolution Act, Government Code, §2009.054.(j) An agreement reached by the contested case parties in mediation shall be reduced to writing and signed by the parties.(k) Within 10 days of the conclusion of a mediation, a mediator shall provide to the department and to the parties a written report stating:(1) whether the parties attended and participated in the mediation;(2) whether the matter settled in part or in whole;(3) any unresolved issues remaining in the contested case; and(4) any other stipulations or matters the parties agree to report.(l) Upon receipt of the mediator's report required under this section, the department shall:(1) enter an order disposing of resolved issues;(2) refer unresolved issues to SOAH for a hearing on the merits; and(3) inform SOAH whether a party refused to attend or participate in a mediation.(m) If a party refused to attend or participate in a mediation, an ALJ may recommend a sanction in the proposal for decision.</content><note type="source"><p>Source Note: The provisions of this §224.90 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scC/s224.92"><num value="224.92">§224.92</num><heading>Referral to SOAH</heading><content>(a) The department will refer to SOAH unresolved contested case issues by filing all forms and documents that are required under SOAH rules to docket a case.(b) When SOAH accepts the department's request to docket, jurisdiction of the contested case transfers to SOAH.</content><note type="source"><p>Source Note: The provisions of this §224.92 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scC/s224.94"><num value="224.94">§224.94</num><heading>Notice of Hearing</heading><content>(a) Once SOAH provides the department with the initial hearing date, time, and place, the department will issue to the contested case parties a notice of hearing that complies with Occupations Code, §2301.705, Government Code, Chapter 2001, and 1 TAC §155.401.(b) The contested case proceeds according to Subchapter E of this chapter (relating to Contested Cases Referred to SOAH).</content><note type="source"><p>Source Note: The provisions of this §224.94 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c224/scD"><num value="D">SUBCHAPTER D</num><heading>MOTOR CARRIER AND OVERSIZE OR OVERWEIGHT VEHICLE OR LOAD ENFORCEMENT</heading><section identifier="/us/state/tx/tac/t43/p10/c224/scD/s224.110"><num value="224.110">§224.110</num><heading>Purpose and Scope</heading><content>This subchapter and Subchapters A, E, and I of this chapter describe the procedures by which the department will adjudicate alleged violations and claims under Transportation Code, Chapters 502, 621-623, 643, and 645. These contested cases involve registrants under the International Registration Plan, motor carriers, motor carrier leasing businesses, motor transportation brokers, and household goods carriers. Contested cases involving persons operating oversize or overweight vehicles or moving oversize or overweight loads are also included.</content><note type="source"><p>Source Note: The provisions of this §224.110 adopted to be effective June 1, 2024, 49 TexReg 2771; amended to be effective February 27, 2026, 50 TexReg 6528.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scD/s224.112"><num value="224.112">§224.112</num><heading>Definitions</heading><content>(a) The definitions contained in the relevant Transportation Code chapter apply to the contested cases under this subchapter.(b) The definitions contained in Chapter 217 of this title (relating to Vehicle Titles and Registration), Chapter 218 of this title (relating to Motor Carriers), and Chapter 219 of this title (relating to Oversize and Overweight Vehicles and Loads) apply to the relevant contested cases under this subchapter.</content><note type="source"><p>Source Note: The provisions of this §224.112 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scD/s224.114"><num value="224.114">§224.114</num><heading>Cease and Desist Order</heading><content>(a) The department may issue a cease-and-desist order to a respondent:(1) who engages or represents itself to be engaged in a motor carrier operation that is in violation of this chapter;(2) to prevent a violation of Chapter 218 of this title (relating to Motor Carriers); or(3) to protect public health and safety.(b) The order shall:(1) be delivered by personal delivery or registered or certified mail, return receipt requested, to the person's or entity's last known address;(2) include:(A) a summary of the factual allegations;(B) a description of the statutory provision, rule or order the person is alleged to have violated;(C) a description in reasonable detail of the act or acts to be restrained by the cease-and-desist; and(3) state the effective date of the order.(c) The department's cease and desist order is final, unless within ten days of the service of the order, the respondent files with the department a written request for hearing.(d) If a request for hearing is filed, the department shall initiate a contested case with SOAH in accordance with Chapter 224, Subchapter E of this title (relating to Contested Cases Referred to SOAH).(e) The cease-and-desist order shall remain in effect until the respondent comes into complete compliance with department directives and decisions, or unless otherwise provided by an order issued after final review by the department.(f) If a respondent violates a cease-and-desist order, the department may:(1) impose an administrative penalty against the respondent; or(2) refer the matter to the appropriate authority to institute actions for:(A) an injunction against violation of the cease-and-desist order;(B) collection of any administrative penalty assessed by the department; or(C) any other remedy provided by law.(g) Nothing in this section precludes the department from imposing other administrative sanctions against the respondent while a cease-and-desist order is in effect.</content><note type="source"><p>Source Note: The provisions of this §224.114 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scD/s224.115"><num value="224.115">§224.115</num><heading>Administrative Penalty and Sanction Assessment; Probation of Suspension</heading><content>(a) Amount of administrative penalty under Transportation Code, §623.271.(1) Transportation Code, §623.271 governs the amount of an administrative penalty that the department may assess against a person or the holder of an oversize or overweight permit, as applicable.(2) In an action brought by the department, the aggregate amount of administrative penalty shall not exceed $5,000 unless it is found that the person or the holder of the permit knowingly committed a violation.(3) In an action brought by the department, if it is found that the person or the holder of the permit knowingly committed a violation, the aggregate amount of administrative penalty shall not exceed $15,000. "Knowingly" means actual awareness of the act or practice that is the alleged violation, or acting with deliberate ignorance of or reckless disregard for the violation involved. Actual awareness may be inferred from the conduct of the alleged violator or from the history of previous violations by the alleged violator.(4) In an action brought by the department, if it is found that the person or the holder of the permit knowingly committed multiple violations, the aggregate amount of administrative penalty for the multiple violations shall not exceed $30,000.(5) Each day a violation continues or occurs is a separate violation for purposes of imposing an administrative penalty.(b) Amount of administrative penalty under Transportation Code, §623.272.(1) Transportation Code, §623.272 governs the amount of an administrative penalty that the department may assess against a shipper.(2) The amount of an administrative penalty imposed under this subsection is calculated in the same manner as the amount of an administrative penalty imposed under subsection (a) of this section.(c) Amount of administrative penalty under Transportation Code, §643.251.(1) Transportation Code, §643.251 governs the amount of an administrative penalty that the department may assess against a motor carrier that is required to register under Subchapter B of Chapter 643 of the Transportation Code and violates Transportation Code, Chapter 643 or a rule or order adopted under Chapter 643.(2) In an action brought by the department, the aggregate amount of administrative penalty shall not exceed $5,000 unless it is found that the motor carrier knowingly committed a violation.(3) In an action brought by the department, if it is found that the motor carrier knowingly committed a violation, the aggregate amount of administrative penalty shall not exceed $15,000. "Knowingly" means actual awareness of the act or practice that is the alleged violation, or acting with deliberate ignorance of or reckless disregard for the violation involved. Actual awareness may be inferred from the conduct of the alleged violator or from the history of previous violations by the alleged violator.(4) In an action brought by the department, if it is found that the motor carrier knowingly committed multiple violations, the aggregate amount of administrative penalty for the multiple violations shall not exceed $30,000.(5) Each day a violation continues or occurs is a separate violation for purposes of imposing an administrative penalty.(d) Probation of suspension under Transportation Code, §643.252.(1) Transportation Code, §643.252 authorizes the department to place on probation a motor carrier whose registration is suspended.(2) In determining whether to probate a suspension of a motor carrier's registration, the department will consider the factors listed in Transportation Code, §643.251 regarding the amount of an administrative penalty.(3) The department shall set the length of the probation based on the seriousness of the violation and previous violations by the motor carrier.(4) The department will require that the motor carrier report monthly to the department any information necessary to determine compliance with the terms of the probation.(e) The department will publish a disciplinary matrix on the department website to provide guidance to motor carriers on the penalties and sanctions that may be assessed for the most common violations. The department will consider the disciplinary matrix published at the time of the violation; however, the disciplinary matrix does not prevent the department from seeking administrative penalties and sanctions above or below the recommended ranges listed in the disciplinary matrix. Also, the disciplinary matrix does not prevent the director from ordering administrative penalties and sanctions above or below the recommended ranges listed in the disciplinary matrix.</content><note type="source"><p>Source Note: The provisions of this §224.115 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scD/s224.116"><num value="224.116">§224.116</num><heading>Administrative Proceedings, Excluding Proceedings Under Transportation Code, §643.2526</heading><content>(a) If the department decides to take an enforcement action under §218.16 of this title (relating to Insurance Requirements) for the revocation of self-insured status, §218.64 of this title (relating to Rates), §218.71 of this title (relating to Administrative Penalties), §219.121 of this title (relating to Administrative Penalties and Sanctions under Transportation Code, §623.271), §218.72 of this title (relating to Administrative Sanctions), or §219.126 of this title (relating to Administrative Penalty for False Information on Certificate by a Shipper), the department shall mail a Notice of Department Decision to the person by first-class mail to the last known address as shown in department records. If the enforcement action falls under the Memorandum of Agreement with the Federal Motor Carrier Safety Administration (FMCSA) under §218.71, the department shall mail the Notice of Department Decision to the person by first-class mail to the last known address as shown in FMCSA's records.(b) The Notice of Department Decision shall include:(1) a brief summary of the alleged violation or enforcement action being proposed;(2) a statement describing each sanction, penalty, or enforcement action proposed;(3) a statement informing the person of the right to request a hearing;(4) a statement of the procedure a person must use to request a hearing, including the deadline for filing a request with the department and the acceptable methods to request a hearing; and(5) a statement that a proposed penalty, sanction, or enforcement action will become final and take effect on a specific date if the person fails to request a hearing.(c) A person must submit to the department a written request for a hearing to the address provided in the Notice of Department Decision not later than the 26th day after the date the notice is mailed by the department; however, this requirement does not apply to a contested case that falls under §218.64 and Transportation Code, §643.154.(d) If a person submits a timely written request for a hearing or the contested case that falls under §218.64 and Transportation Code, §643.154, the department will contact the person and attempt to informally resolve the contested case. If the person and the department cannot informally resolve the contested case, the department will refer the contested case to SOAH to set a hearing date and will give notice of the time and place of the hearing to the person.(e) Except as provided by Transportation Code, §643.154, if the person does not make a timely request for a hearing or agree to settle a contested case within 26 days of the date the Notice of Department Decision was mailed, the allegations are deemed admitted on the 27th day and a final order including sanctions and penalties may be issued by the final order authority.(f) Except as provided by statute and the applicable provisions of this chapter, any SOAH proceeding is governed by Government Code, Chapter 2001 and 1 TAC Chapter 155, including the authority of the department to informally dispose of the contested case by stipulation, agreed settlement, consent order, or default. The department will follow the process set forth in Transportation Code, §643.2525 and the applicable provisions of this chapter when enforcing the federal laws and regulations cited in §218.71 to the extent authorized by applicable federal laws and regulations.(g) The department and the person may informally resolve the contested case by entering into a settlement agreement or agreeing to stipulations at any time before the director issues a final order. However, the person must pay any penalty in full prior to the execution of a settlement agreement.(h) This section does not apply to a department action under Transportation Code, §643.2526.</content><note type="source"><p>Source Note: The provisions of this §224.116 adopted to be effective June 1, 2024, 49 TexReg 2771; amended to be effective October 9, 2025, 50 TexReg 6528.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scD/s224.118"><num value="224.118">§224.118</num><heading>Filing of Documents</heading><content>Each document required or allowed to be filed with the department under this subchapter must be filed according to written instructions provided by the department in the applicable notice under this subchapter.</content><note type="source"><p>Source Note: The provisions of this §224.118 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scD/s224.120"><num value="224.120">§224.120</num><heading>Registration Suspension Ordered Under Family Code</heading><content>(a) On receipt of a final order issued under Family Code, §§232.003, 232.008, or 232.009, regarding child support enforcement, the department will suspend:(1) a certificate of registration issued under Chapter 218, Subchapter B (relating to Motor Carrier Registration); or(2) the registration of an interstate motor carrier issued under §218.17 of this title (relating to Unified Carrier Registration System).(b) The department will charge an administrative fee of $10 to a person whose registration is suspended under this section.(c) A suspension under this section does not require the department to give notice or otherwise follow the administrative process provided under §224.116 of this title (relating to Administrative Proceedings).(d) A registration suspended under this section may only be reinstated on receipt of an order issued under Family Code, §232.013.</content><note type="source"><p>Source Note: The provisions of this §224.120 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scD/s224.121"><num value="224.121">§224.121</num><heading>Administrative Proceedings under Transportation Code, §643.2526</heading><content>(a) The department will only revoke the registration of a motor carrier under Transportation Code, §643.2526 pursuant to a request from the Texas Department of Public Safety under Transportation Code, §643.252(b) after the issuance of an order by the following, as applicable:(1) the Federal Motor Carrier Safety Administration regarding an unsatisfactory safety rating under 49 C.F.R. Part 385; or(2) the Texas Department of Public Safety regarding multiple violations of the following:(A) Transportation Code, Chapter 644;(B) a rule adopted under Transportation Code, Chapter 644; or(C) Subtitle C of Title 7 of the Transportation Code. (b) The department will issue notice of the department's action under Transportation Code, §643.2526 to the person by email and first-class mail using the person's last known address in the department's records.</content><note type="source"><p>Source Note: The provisions of this §224.121 adopted to be effective October 9, 2025, 50 TexReg 6528.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scD/s224.122"><num value="224.122">§224.122</num><heading>Appeal of Decision Regarding Assessment, Cancellation, or Revocation Under §217.56</heading><content>(a) Pursuant to §217.56(c)(2)(J)(iii) of this title (relating to Registration Reciprocity Agreements), a registrant may appeal the department's decision regarding an assessment, cancellation, or revocation.(b) The appeal will be governed by Chapter 224, Subchapter E of this title (relating to Contested Cases Referred to SOAH).(c) The registrant's appeal will be considered untimely if it is not received by the director of the department's Motor Carrier Division by the 26th day after the date of the department's decision. The department will not consider an untimely appeal.(d) A timely appeal will abate the assessment pending a final order.</content><note type="source"><p>Source Note: The provisions of this §224.122 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scD/s224.124"><num value="224.124">§224.124</num><heading>Appeal of Department Action Under Transportation Code, §643.2526.</heading><content>(a) An appeal to the department under Transportation Code, §643.2526 will be governed by Chapter 224 of this title (relating to Adjudicative Practice and Procedure).(b) An appeal will be considered untimely if it is not filed with the department by the 26th day after the date of the department's issuance of notice of the department's action. The department will not consider an untimely appeal.(c) An application that is withdrawn under Transportation Code, §643.055 is not a denial of an application for the purposes of an appeal under Transportation Code, §643.2526.(d) On appeal, the department will not rescind a revocation under Transportation Code, §643.252(b) based on the motor carrier taking corrective action that results in an upgrade to its unsatisfactory safety rating after the department has issued notice to the motor carrier that the department revoked the motor carrier's registration. (e) An appeal under Transportation Code, §643.2526 must state why the person claims the department's action is erroneous, as well as the legal and factual basis for the claimed error.</content><note type="source"><p>Source Note: The provisions of this §224.124 adopted to be effective June 1, 2024, 49 TexReg 2771; amended to be effective October 9, 2025, 50 TexReg 6528.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scD/s224.126"><num value="224.126">§224.126</num><heading>Appeal of a Denial of Self-Insured Status</heading><content>(a) Pursuant to §218.16(d) of this title (relating to Insurance Requirements), an applicant may appeal the denial of an application for self-insured status.(b) The appeal will be governed by Chapter 224, Subchapter E of this title (relating to Contested Cases Referred to SOAH).(c) The applicant's appeal will be considered untimely if it is not filed with the department by the 26th day after the date of the department's denial of the application. The department will not consider an untimely appeal.</content><note type="source"><p>Source Note: The provisions of this §224.126 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scD/s224.128"><num value="224.128">§224.128</num><heading>Referral to SOAH</heading><content>(a) The department will refer a contested case to SOAH by filing a Request to Docket form and related documents as required under SOAH rules as follows:(1) if the department receives a timely request for a hearing and the parties are unable to informally resolve or dispose of the case;(2) if the department receives a timely appeal under §§224.122, 224.124, or 224.126; or(3) the contested case falls under §218.64 of this title (relating to Rates) and Transportation Code, §643.154.(b) When SOAH accepts the department's Request to Docket, jurisdiction of the contested case transfers to SOAH.</content><note type="source"><p>Source Note: The provisions of this §224.128 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scD/s224.130"><num value="224.130">§224.130</num><heading>Notice of Hearing</heading><content>(a) Once SOAH provides the department with the initial hearing date, time, and place, the department will issue to the contested case parties a notice of hearing that complies with Government Code, Chapter 2001 and SOAH rules.(b) The contested case proceeds according to Subchapter E of this chapter (relating to Contested Cases Referred to SOAH).</content><note type="source"><p>Source Note: The provisions of this §224.130 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c224/scE"><num value="E">SUBCHAPTER E</num><heading>CONTESTED CASES REFERRED TO SOAH</heading><section identifier="/us/state/tx/tac/t43/p10/c224/scE/s224.150"><num value="224.150">§224.150</num><heading>Purpose and Scope</heading><content>(a) This subchapter describes department practice and procedures for referring a contested case to SOAH for a hearing, including a contested case under Subchapter B (relating to Motor Vehicle, Salvage Vehicle, and Trailer Industry Enforcement), Subchapter C (relating to Contested Cases Between Motor Vehicle Industry License Holders or Applicants), and Subchapter D (Motor Carrier and Oversize or Overweight Vehicle or Load Enforcement) of this chapter, as well as §224.294 of this title (relating to Suspension, Revocation, or Cancellation of Automated Motor Vehicle Authorization under Transportation Code, §545.459). (b) When SOAH accepts a referral from the department, jurisdiction of the contested case transfers to SOAH, and practice and procedure in contested cases heard by SOAH are addressed in:(1) 1 TAC Chapter 155, and(2) subchapter A and this subchapter, where not in conflict with SOAH rules.(c) When SOAH disposes of a contested case, jurisdiction transfers from SOAH back to the department. The department will issue a final order under §224.29 of this title (relating to Delegation of Final Order Authority), under Subchapter F of this chapter (relating to Board Procedures in Contested Cases), or under Subchapter I of this chapter (relating to Motor Carrier Division Director Procedures in Contested Cases).</content><note type="source"><p>Source Note: The provisions of this §224.150 adopted to be effective June 1, 2024, 49 TexReg 2771; amended to be effective February 27, 2026, 50 TexReg 6528.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scE/s224.152"><num value="224.152">§224.152</num><heading>Referral to SOAH</heading><content>(a) The department shall refer contested cases to SOAH upon determination that a hearing is appropriate under Occupations Code, Chapter 2301 or 2302; Transportation Code, Chapters 502, 503, 621-623, 643, 645, or 1001-1005; or Transportation Code, §545.459(k), including contested cases relating to:(1) an enforcement complaint on the department's own initiative;(2) a notice of protest that has been timely filed in accordance with §215.106 of this title (relating to Time for Filing Protest);(3) a protest filed under Occupations Code, §2301.360 or a protest or complaint filed under Occupations Code, Chapter 2301, Subchapters I or J;(4) a department-issued cease and desist order; or(5) any other contested matter that meets the requirements for a hearing at SOAH.(b) The department will follow SOAH procedures to file a Request to Docket Case and related documents and request a setting of a hearing.(c) SOAH will provide the department with the date, time, and place of the initial hearing.</content><note type="source"><p>Source Note: The provisions of this §224.152 adopted to be effective June 1, 2024, 49 TexReg 2771; amended to be effective February 27, 2026, 50 TexReg 6528.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scE/s224.154"><num value="224.154">§224.154</num><heading>Notice of Hearing</heading><content>(a) In a contested case, each party is entitled to an opportunity for a hearing, in accordance with Government Code, §2001.051.(b) The requirements for a notice of hearing in a contested case are provided by Government Code, §2001.052; Occupations Code, §2301.705; the SOAH rules; and Transportation Code, Chapter 623 or 643, as applicable.(c) For service of parties outside of the United States, in addition to service under Occupations Code, §2301.265, the department may serve a notice of hearing by any method allowed under TRCP or that provides for confirmation of delivery to the party to the extent authorized by applicable law.(d) The last known address of a license applicant, license holder, or other person is the last mailing address in department records or Federal Motor Carrier Safety Administration (FMCSA) records, as applicable.(e) A notice of hearing issued by the department in a contested case shall comply with the requirements of Government Code, §2001.052(a).(f) The department will serve a notice of hearing upon a license holder by certified mail return receipt requested to the last known address of the license holder or authorized representative, in accordance with Occupations Code, §2301.705.(g) The department may serve a notice of hearing upon a person who is not a license holder by first class mail to the person's last known address as shown in department records or Federal Motor Carrier Safety Administration (FMCSA) records, as applicable.(h) A notice of hearing in a contested case may be amended in accordance with Government Code, §2001.052(b).</content><note type="source"><p>Source Note: The provisions of this §224.154 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scE/s224.156"><num value="224.156">§224.156</num><heading>Reply to Notice of Hearing and Default Proceedings</heading><content>(a) A party may file a written reply or pleading to respond to all allegations. The written reply or responsive pleading must be filed with SOAH in accordance with SOAH rules and must identify the SOAH and department docket numbers, as reflected in the notice of hearing.(b) Any party filing a reply or responsive pleading shall serve a copy of the reply or responsive pleading on each party or party's authorized representative in compliance with SOAH rules.(c) A party may file an amended or supplemental reply or responsive pleading in accordance with SOAH rules.(d) If a party properly noticed under this chapter does not appear at the hearing, a party appearing at the hearing may request that the ALJ dismiss the contested case from the SOAH docket. If the contested case is dismissed from the SOAH docket, the case may be presented to the final order authority for disposition pursuant to SOAH rules and §224.29 of this title (relating to Delegation of Final Order Authority).</content><note type="source"><p>Source Note: The provisions of this §224.156 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scE/s224.158"><num value="224.158">§224.158</num><heading>Amicus Briefs</heading><content>(a) An interested person may submit an amicus brief for consideration by the ALJ in a contested case by the deadline for filing exceptions in accordance with SOAH rules. A party may submit one written reply to the amicus brief no later than the deadline for filing replies to exceptions under SOAH rules.(b) An amicus brief and a party's reply to amicus brief must be submitted to the ALJ and be served on all parties.(c) The ALJ may amend the proposal for decision after considering an amicus brief or a party's reply to an amicus brief.</content><note type="source"><p>Source Note: The provisions of this §224.158 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scE/s224.162"><num value="224.162">§224.162</num><heading>Statutory Stay</heading><content>(a) A person affected by a statutory stay imposed by Occupations Code, Chapter 2301 may request a hearing before a SOAH ALJ to modify, vacate, or clarify the extent and application of the statutory stay.(b) The ALJ shall hold a hearing on a motion to modify, vacate, or clarify a statutory stay, and prepare a written order, including a justification explaining why the statutory stay should or should not be modified, vacated, or clarified.(c) A person affected by a statutory stay imposed by Occupations Code, Chapter 2301 may request a hearing before the board to modify, vacate, or clarify the extent and application of the statutory stay under §224.192 of this chapter (relating to Appeal of an Interlocutory Order) while the contested case is at SOAH.</content><note type="source"><p>Source Note: The provisions of this §224.162 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scE/s224.164"><num value="224.164">§224.164</num><heading>Issuance of a Proposal for Decision</heading><content>(a) After a hearing on the merits, the ALJ shall submit a proposal for decision in a contested case to the department and all parties.(b) The parties may submit to the ALJ exceptions to the proposal for decision and replies to exceptions to the proposal for decision in accordance with the SOAH rules.(c) The ALJ will review all exceptions and replies and notify the department and parties whether the ALJ recommends any changes to the proposal for decision.(d) The parties are not entitled to file exceptions or briefs in response to a final proposal for decision but may raise an issue regarding the final proposal for decision before the following:(1) the board as allowed at the time of oral presentation under Subchapter F of this chapter; or(2) the Motor Carrier Division Director as allowed at the time of an oral presentation at a special public meeting, if any, under Subchapter I of this chapter (relating to Motor Carrier Division Director Procedures in Contested Cases).</content><note type="source"><p>Source Note: The provisions of this §224.164 adopted to be effective June 1, 2024, 49 TexReg 2771; amended to be effective February 27, 2026, 50 TexReg 6528.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scE/s224.166"><num value="224.166">§224.166</num><heading>Transfer of Jurisdiction for Final Decision</heading><content>(a) A party may appeal an interlocutory order issued under Occupations Code, Chapter 2301 to the board under §224.192 of this title (relating to Appeal of an Interlocutory Order). SOAH retains jurisdiction on all other pending matters in the contested case, except as provided otherwise in this chapter.(b) If a contested case includes a hearing on the merits, SOAH's jurisdiction transfers to the board or other final order authority when the ALJ confirms that the proposal for decision is final.(c) Once jurisdiction transfers, no new testimony, witnesses, or information may be considered by the board or other final order authority.(d) After SOAH transfers the SOAH administrative record to the department, the board or the Motor Carrier Division Director will consider the contested case under the provisions of Subchapter F of this chapter (relating to Board Procedures in Contested Cases) or Subchapter I of this chapter (relating to Motor Carrier Division Director Procedures in Contested Cases).</content><note type="source"><p>Source Note: The provisions of this §224.166 adopted to be effective June 1, 2024, 49 TexReg 2771; amended to be effective February 27, 2026, 50 TexReg 6528.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c224/scF"><num value="F">SUBCHAPTER F</num><heading>BOARD PROCEDURES IN CONTESTED CASES</heading><section identifier="/us/state/tx/tac/t43/p10/c224/scF/s224.190"><num value="224.190">§224.190</num><heading>Purpose and Scope</heading><content>This subchapter describes procedures for the board to review and issue a final order in a contested case in which:(1) a SOAH ALJ has submitted a final proposal for decision for consideration by the board or board delegate with final order authority, except as stated otherwise in §224.310 of this title (relating to Purpose and Scope),(2) a party has appealed an interlocutory cease-and-desist order issued by an ALJ, or(3) a party affected by a statutory stay order issued by an ALJ requested a hearing to modify, vacate, or clarify the extent and application of the statutory stay order.</content><note type="source"><p>Source Note: The provisions of this §224.190 adopted to be effective June 1, 2024, 49 TexReg 2771; amended to be effective February 27, 2026, 50 TexReg 6528.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scF/s224.192"><num value="224.192">§224.192</num><heading>Appeal of an Interlocutory Order</heading><content>(a) A party affected by an interlocutory cease-and-desist order or a statutory stay order under Occupations Code, Chapter 2301 may appeal the order to the board by submitting to the department's general counsel a motion requesting that the board modify, vacate, or clarify the order.(b) The party requesting that the board modify, vacate, or clarify an order must also simultaneously serve the request on the other parties and the ALJ in accordance with §224.11 of this title (relating to Filing and Service of Documents).(c) The board will consider the interlocutory appeal and issue a final order at a public meeting as soon as practicable. Notwithstanding the deadline listed in §224.196 of this title (relating to Request for Oral Presentation), the department shall give the parties written notice at least seven days prior to the board meeting at which the board is scheduled to consider the appeal. The notice shall notify the parties regarding the opportunity to attend and provide an oral presentation concerning an order before the board, and the opportunity to provide written materials to the board.(1) Notwithstanding the deadline listed in §224.196, if a party seeks to provide an oral presentation at the board meeting, the party must submit a written request for an oral presentation to the department's contact listed in the notice provided under this subsection and copy all other parties in accordance with §224.11 at least three days prior to the date of the board meeting at which the board is scheduled to consider the party's contested case.(2) Notwithstanding the deadline listed in §224.198 of this title (relating to Written Materials and Evidence), if a party wants to provide written materials at the board meeting, the party must provide the written materials to the department and all other parties in accordance with §224.11 at least three days prior to the date of the board meeting at which the board is scheduled to consider the party's contested case.(d) An appeal to the board of an interlocutory cease-and-desist order or a statutory stay order is governed by Government Code, §2001.058(e).</content><note type="source"><p>Source Note: The provisions of this §224.192 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scF/s224.194"><num value="224.194">§224.194</num><heading>Contested Case Review</heading><content>After SOAH submits a final proposal for decision and transfers SOAH's administrative record to the department, the board has jurisdiction and the record required to issue a final order and will review the contested case during the public session of a board meeting, in accordance with the APA.</content><note type="source"><p>Source Note: The provisions of this §224.194 adopted to be effective June 1, 2024, 49 TexReg 2771; amended to be effective February 27, 2026, 50 TexReg 6528.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scF/s224.196"><num value="224.196">§224.196</num><heading>Request for Oral Presentation</heading><content>(a) At least 30 days prior to the scheduled date of a board meeting, the department shall notify the parties regarding the opportunity to attend and provide an oral presentation concerning a proposal for decision before the board. The department will deliver notice electronically to the last known email address provided to the department by the party or party's authorized representative in accordance with §224.11 of this title (relating to Filing and Service of Documents).(b) If a party wants to make an oral presentation at the board meeting, a party must submit a written request for an oral presentation to the department's contact listed in the notice provided under subsection (a) of this section and copy all other parties in accordance with §224.11 at least 14 days prior to the date of the board meeting at which the party's contested case will be reviewed.(c) If more than one party was not adversely affected by the proposal for decision, such parties may agree on the order of their presentations in lieu of the order prescribed under §224.202 of this title (relating to Order of Oral Presentations to the Board). The order of presentations will be determined under §224.202 of this title if the parties who were not adversely affected by the proposal for decision do not timely provide the department and the other parties with notice under subsection (b) of this section regarding their agreed order of presentation.(d) If a party timely submits a written request for an oral presentation, that party may make an oral presentation at the board meeting. If a party fails to timely submit a written request for an oral presentation, that party shall not make an oral presentation at the board meeting.(e) Section 206.22 of this title (relating to Public Access to Board Meetings) authorizes a party to speak as a public commenter regarding the party's contested case during the posted agenda item for the contested case; however, a party is not authorized to make a public comment regarding the party's contested case under §206.22 in addition to making an oral presentation regarding the party's contested case under this subchapter.</content><note type="source"><p>Source Note: The provisions of this §224.196 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scF/s224.198"><num value="224.198">§224.198</num><heading>Written Materials and Evidence</heading><content>(a) If a party wants to provide written materials at the board meeting, the party must provide the written materials to the department and all other parties in accordance with §224.11 of this title (relating to Filing and Service of Documents) at least 21 days prior to the date of the board meeting. If a party fails to timely provide written materials to the department or any other party, the department shall not provide the written materials to the board and the party shall not provide the written materials to the board at the board meeting. Non-parties are not authorized to provide written materials to the board.(b) For the purposes of this section, written materials are defined as language or images including photographs or diagrams, that are contained in the SOAH administrative record and recorded in paper form except as stated otherwise in this subsection. The language or images in the written materials must be taken without changes from the SOAH administrative record; however, proposed final orders and draft motions for possible board action are allowed to be included in a party's written materials even if they contain arguments or requests that are not contained in the SOAH administrative record. Written materials shall be limited to evidence contained in the SOAH administrative record and consistent with the scope of the board's authority to act under Government Code, §2001.058(e); Occupations Code, Chapters 2301 and 2302; Transportation Code, Chapters 503 or 1001-1005; and Transportation Code, §545.459(k), as applicable.(c) All information in the written materials shall include a citation to the SOAH administrative record on all points to specifically identify where the information is located. The citations may be provided in an addendum to the written materials that is not counted against the 15-page limit under subsection (d) of this section; however, the addendum must not include any information other than a heading that lists the name of the party, the caption for the contested case, and text that lists the citations and page numbers.(d) Written materials shall be 8.5 inches by 11 inches and single-sided. Written materials must be double-spaced and at least 12-point type if in text form. Written materials are limited to 15 pages per party. If a party provides the department with written materials that contain more pages than the maximum allowed, the department shall not provide the written materials to the board and a party shall not provide the written materials to the board at the board meeting.</content><note type="source"><p>Source Note: The provisions of this §224.198 adopted to be effective June 1, 2024, 49 TexReg 2771; amended to be effective February 27, 2026, 50 TexReg 6528.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scF/s224.200"><num value="224.200">§224.200</num><heading>Oral Presentation Limitations and Responsibilities</heading><content>(a) A party to a contested case under review by the board shall limit oral presentation and discussion to evidence in the SOAH administrative record. Also, oral presentation and discussion shall be consistent with the scope of the board's authority to act under Government Code, §2001.058(e); Occupations Code, Chapters 2301 and 2302; Transportation Code Chapters 503 or 1001-1005; and Transportation Code, §545.459(k), as applicable.(b) A party may argue that the board should remand the contested case to SOAH.(c) Each party is responsible for objecting when another party attempts to make arguments or engage in discussion regarding evidence that is not contained in the SOAH administrative record.(d) A party's presentation to the board is subject to the following limitations and conditions:(1) Each party shall be allowed a maximum of 15 minutes for their oral presentation. The board chair may increase this time.(2) No party is allowed to provide a rebuttal or a closing statement.(3) An intervenor of record from the SOAH proceeding supporting another party shall share that party's time.(4) Time spent by a party responding to a board question is not counted against their presentation time.(5) During an oral presentation, a party to the contested case before the board may object that a party presented material or argument that is not in the SOAH administrative record. Time spent discussing such objections is not counted against the objecting party's time.</content><note type="source"><p>Source Note: The provisions of this §224.200 adopted to be effective June 1, 2024, 49 TexReg 2771; amended to be effective February 27, 2026, 50 TexReg 6528.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scF/s224.202"><num value="224.202">§224.202</num><heading>Order of Oral Presentations to the Board</heading><content>(a) The department will present the procedural history and summary of the contested case.(b) The party that is adversely affected may present first. However, the board chair is authorized to determine the order of each party's presentation if:(1) it is not clear which party is adversely affected;(2) it appears that more than one party is adversely affected; or(3) different parties are adversely affected by different portions of the contested case under review.(c) The other party or parties not adversely affected will then have an opportunity to make a presentation. If more than one party is not adversely affected, each party will have an opportunity to respond in alphabetical order based on the name of the party in the pleadings in the SOAH administrative record, except as stated otherwise in §224.196 of this title (relating to Request for Oral Presentation).</content><note type="source"><p>Source Note: The provisions of this §224.202 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scF/s224.204"><num value="224.204">§224.204</num><heading>Board Conduct and Discussion When Reviewing a Contested Case or Interlocutory Order</heading><content>(a) The board shall conduct its contested case review in compliance with Government Code, Chapter 2001; Occupations Code, Chapters 2301 and 2302; Transportation Code Chapters 503 or 1001-1005; and Transportation Code, §545.459(k), as applicable, including the limitations on changing a finding of fact or conclusion of law made by a SOAH ALJ, and the prohibition on considering evidence outside of the SOAH administrative record.(b) A board member may question a party or the department on any matter that is relevant to the proposal for decision; however, a question shall be consistent with the scope of the board's authority to take action under Government Code, §2001.058(e); Occupations Code, Chapters 2301 and 2302; Transportation Code, Chapters 503 or 1001-1005; and Transportation Code, §545.459(k), as applicable; a question must be limited to evidence contained in the SOAH administrative record; and the communication must comply with §224.5 of this title (relating to Prohibited Communication). In considering a contested case, a board member is authorized to ask a question regarding a request to remand the case to SOAH, including a remand to SOAH for further consideration of the evidence.(c) A board member may use personal expertise in the industry to understand a contested case and make effective decisions, consistent with the scope of the board's authority to act under Government Code, §2001.058(e); Occupations Code, Chapters 2301 and 2302; Transportation Code Chapters 503 or 1001-1005; and Transportation Code, §545.459(k), as applicable. However, a board member is not an advocate for a particular industry. A board member is an impartial public servant who takes an oath to preserve, protect, and defend the Constitution and laws of the United States and Texas.</content><note type="source"><p>Source Note: The provisions of this §224.204 adopted to be effective June 1, 2024, 49 TexReg 2771; amended to be effective February 27, 2026, 50 TexReg 6528.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scF/s224.206"><num value="224.206">§224.206</num><heading>Final Orders</heading><content>(a) A final decision or order in a contested case reviewed by the board or board delegate with final order authority shall be in writing and shall be signed by the board chair or board delegate, as applicable.(b) The department shall email a copy of the final order to the parties in the contested case in addition to sending a copy of the final order certified mail, return receipt requested.(c) The provisions of Government Code, Chapter 2001, Subchapter F govern:(1) the issuance of a final order issued under this subchapter; and(2) motions for rehearing filed in response to a final order.(d) A decision or order in a contested case is final in accordance with Government Code, §2001.144.</content><note type="source"><p>Source Note: The provisions of this §224.206 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c224/scG"><num value="G">SUBCHAPTER G</num><heading>LEMON LAW AND WARRANTY PERFORMANCE CLAIMS</heading><section identifier="/us/state/tx/tac/t43/p10/c224/scG/s224.230"><num value="224.230">§224.230</num><heading>Purpose, Scope, and Definitions</heading><content>(a) Subchapter A and this subchapter apply to contested cases filed under Occupations Code, §2301.204 or Subchapter M, to the extent they do not conflict with state law, rule, or court order.(b) The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Case advisor--A department staff member responsible for evaluating, investigating, and mediating lemon law and warranty performance complaints prior to a hearing.(2) Comparable motor vehicle--A new motor vehicle, with comparable mileage, from the same manufacturer, distributor, or converter's product line and the same model year or newer as the motor vehicle to be replaced or as reasonably equivalent to the motor vehicle to be replaced.(3) Lemon law--Refers to Occupations Code, Chapter 2301, Subchapter M (§§2301.601-2301.613).(4) Warranty performance--Refers to Occupations Code, §2301.204.</content><note type="source"><p>Source Note: The provisions of this §224.230 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scG/s224.232"><num value="224.232">§224.232</num><heading>Filing a Complaint</heading><content>(a) The department will provide information concerning the complaint procedure and a complaint form to a person requesting assistance. A person may call the department or visit the department website for information or to file a complaint electronically.(b) A complaint alleging a violation of Occupations Code, §2301.204 or Subchapter M, must be in writing and signed by the complainant, and:(1) state sufficient facts to enable the department and the party complained against to know the nature of the complaint and the specific problems or circumstances forming the basis of the claim for relief under the lemon law or warranty performance statute;(2) provide the following information:(A) the name, address, and telephone number of the motor vehicle owner;(B) the make, model, year, and Vehicle Identification Number or VIN of the motor vehicle;(C) the type of warranty coverage;(D) the name and address of the dealer or other person from whom the motor vehicle was purchased or leased, including the name and address of the vehicle lessor, if applicable;(E) the original date of delivery of the motor vehicle to the owner and in the case of a demonstrator, the date the motor vehicle was placed into demonstrator service;(F) the motor vehicle mileage at the time when:(i) the motor vehicle was purchased or leased;(ii) problems with the motor vehicle were first reported; and(iii) the complaint was filed;(G) the name of the dealer or the name of the manufacturer's, converter's, or distributor's agent to whom the problems were first reported;(H) identification of the motor vehicle's existing problems and a brief description of the history of problems and repairs on the motor vehicle, including:(i) the date and mileage of each repair; and(ii) a copy of each repair order where possible;(I) the date the motor vehicle manufacturer, distributor, or converter first received written notice of the alleged defect or nonconformity;(J) the date and results of the motor vehicle inspection, if the motor vehicle was inspected by the manufacturer, distributor, or converter; and(K) any other information the complainant deems relevant to the complaint.(c) A person may file a complaint with the department:(1) by mail sent to the mailing address listed on the department website at TxDMV.gov, or(2) electronically in the Motor Vehicle Dealer Online Complaint System which may be accessed on the department website.(d) Before investigating a claim, the department may require the complainant to provide additional information necessary to evaluate whether the department has jurisdiction to pursue the complaint.(e) The following provisions apply to lemon law complaints.(1) The filing fee required under the lemon law should be paid when the complaint is submitted to the department and may be paid online by credit card if filing a claim electronically or by check if mailing a complaint to the department. The filing fee is nonrefundable, but a complainant that prevails in a case is entitled to reimbursement of the filing fee from the nonprevailing party. Failure to pay the filing fee when submitting a complaint will delay the start of the 150-day period in paragraph (3) of this subsection and may result in dismissal of the complaint.(2) A lemon law proceeding commences on the date the filing fee is received by the department.(3) If the hearings examiner has not issued an order within 150 days after the commencement of the lemon law proceeding in accordance with paragraph (2) of this subsection, the department shall notify the parties by certified mail that the complainant may file a civil action in state district court to seek relief under the lemon law. The notice will inform the complainant of the complainant's right to continue the lemon law complaint with the department. The department shall extend the 150-day period upon request of the complainant or if a delay in the proceedings is caused by the complainant.(f) The following provisions apply to warranty performance complaints (repair-only relief).(1) A filing fee is not required for a complaint that is subject to a warranty performance claim.(2) A complaint may be filed with the department in accordance with this section if the defect in the motor vehicle subject to the warranty performance complaint was reported to the manufacturer, distributor, or converter prior to the expiration of the warranty period.(3) If the defect is not resolved pursuant to §224.238 of this title (relating to Mediation; Settlement or Referral for Hearing), the department will schedule a hearing to be conducted in accordance with Government Code, Chapter 2001, subject to Occupations Code, Chapter 2301, Subchapter O and this subchapter.(4) A hearings examiner will issue a final order on a warranty performance complaint. A party who disagrees with the order may oppose the order in accordance with §224.264 of this title (relating to Final Orders).</content><note type="source"><p>Source Note: The provisions of this §224.232 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scG/s224.234"><num value="224.234">§224.234</num><heading>Complaint Review</heading><content>(a) A case advisor will review a complaint to determine if the department has jurisdiction to consider the complaint and whether the complaint meets the minimum statutory requirements for a lemon law or a warranty performance complaint.(b) If a case advisor cannot determine if the department has jurisdiction or whether a complaint meets the lemon law or warranty performance minimum statutory requirements, the case advisor will contact the complainant for additional information.(c) The case advisor will notify the complainant if the department does not have jurisdiction over the complaint.(d) If a case advisor determines that the department has jurisdiction and the complaint meets the minimum lemon law or warranty performance requirements, the complaint will be processed in accordance with this subchapter.</content><note type="source"><p>Source Note: The provisions of this §224.234 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scG/s224.236"><num value="224.236">§224.236</num><heading>Notification to Manufacturer, Distributor, or Convertor</heading><content>(a) Once a case advisor determines that a complaint meets the minimum statutory requirements the case advisor will:(1) notify the appropriate manufacturer, distributor, or converter of the complaint and request a response; and(2) provide a copy of the complaint to the selling dealer and any other dealer involved with the complaint and may request a response.(b) Upon request by the department, the manufacturer shall provide a copy of the warranty for the motor vehicle subject to the lemon law or warranty performance complaint.(c) The case advisor will provide a copy of any responses or documents received from the manufacturer, distributor, or converter to the complainant.</content><note type="source"><p>Source Note: The provisions of this §224.236 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scG/s224.238"><num value="224.238">§224.238</num><heading>Mediation; Settlement or Referral for Hearing</heading><content>(a) A case advisor will attempt to settle or resolve a lemon law or warranty performance complaint through nonbinding mediation before a hearing on the complaint is scheduled.(b) The parties must participate in the nonbinding mediation process in good faith.(c) In a case filed under Occupations Code, §2301.204 or §§2301.601-2301.613, a case advisor shall qualify for appointment as an impartial third party in accordance with Civil Practice and Remedies Code, Chapter 154.(d) If the parties cannot resolve the complaint, a case advisor will refer the complaint for a hearing with a hearings examiner.</content><note type="source"><p>Source Note: The provisions of this §224.238 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scG/s224.240"><num value="224.240">§224.240</num><heading>Notice of Hearing</heading><content>(a) Each party is entitled to an opportunity for a hearing, in accordance with Government Code, §2001.051.(b) A notice of hearing in a contested case shall comply with the requirements of Government Code, §2001.052(a) and the department shall serve the notice upon the parties by certified mail, return receipt requested to the last known address of a party or the party's authorized representative in accordance with Occupations Code, §2301.705.(c) The last known address of a party is the last mailing address provided to the department.(d) A notice of hearing in a contested case may be amended in accordance with Government Code, §2001.052(b).</content><note type="source"><p>Source Note: The provisions of this §224.240 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scG/s224.242"><num value="224.242">§224.242</num><heading>Motions</heading><content>(a) Unless made during a contested case hearing, each motion in a contested case shall be in writing and shall state:(1) the relief sought; and(2) the specific reasons and grounds for the relief requested.(b) A motion not made during a contested case hearing shall be filed with the hearings examiner and a copy shall be served on all parties or their authorized representatives at least five days prior to the hearing absent a showing of good cause.(c) A motion is not granted until it has been ruled on by the hearings examiner, even if the motion is uncontested or agreed.</content><note type="source"><p>Source Note: The provisions of this §224.242 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scG/s224.244"><num value="224.244">§224.244</num><heading>Service of Documents</heading><content>(a) A copy of each document filed in a contested case shall be served upon all parties or their authorized representatives by sending a copy properly addressed to each party by:(1) first-class mail; or(2) email.(b) A copy of each document must also be filed with the department by:(1) email;(2) fax; or(3) first-class mail.(c) A certificate of service shall accompany each document.</content><note type="source"><p>Source Note: The provisions of this §224.244 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scG/s224.246"><num value="224.246">§224.246</num><heading>Presiding Official</heading><content>(a) Hearings examiner. A hearings examiner will preside over a hearing for a lemon law or warranty performance complaint.(b) Powers and duties. A hearings examiner shall conduct fair hearings and shall take all necessary action to administer the disposition of contested cases. A hearings examiner's powers include, but are not limited to the authority to:(1) administer oaths;(2) examine witnesses;(3) rule upon the admissibility of evidence;(4) rule upon motions; and(5) regulate the course of the contested case hearing and the conduct of the parties and their authorized representative.(c) Expert Inspection. If a hearings examiner determines that an expert opinion may assist in arriving at a decision, a hearings examiner may have the motor vehicle in question inspected by an expert prior to the hearing. An inspection under this subsection shall be made only upon prior notice to all parties, who shall have the right to be present at the inspection. A copy of any findings or report from the expert inspection will be provided to all parties before or at the hearing.(d) Recusal.(1) If a hearings examiner determines that the hearings examiner should be recused from a particular contested case hearing, the hearings examiner shall withdraw from the contested case by giving notice on the record and by notifying the chief hearings examiner.(2) A party may file a motion to recuse the hearings examiner. The motion to recuse shall be supported by an affidavit setting forth the alleged grounds for disqualification. A copy of the motion shall be served on the hearings examiner who shall have 10 days to reply, and a copy shall be served on all parties or their authorized representatives.(3) If the hearings examiner contests the alleged grounds for disqualification, the chief hearings examiner shall promptly determine the validity of the grounds alleged and render a decision.(e) Substitution of hearings examiner. If the hearings examiner is disqualified, dies, becomes disabled, or withdraws during any contested case proceeding, the chief hearings examiner may appoint another hearings examiner to preside over the remainder of the contested case proceeding.</content><note type="source"><p>Source Note: The provisions of this §224.246 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scG/s224.248"><num value="224.248">§224.248</num><heading>Hearing Continuance</heading><content>(a) A continuance of the contested case hearing will be granted by the hearings examiner only upon a showing of good cause.(b) A motion for continuance of a contested case hearing shall be filed and served on all parties at least five days before the hearing date, except when good cause is shown to consider a motion for continuance filed after the deadline.</content><note type="source"><p>Source Note: The provisions of this §224.248 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scG/s224.250"><num value="224.250">§224.250</num><heading>Conduct of Hearing</heading><content>(a) Each party in a contested case shall have the right to notice, cross examination, present evidence, object, make a motion or argument, and all other rights essential to a fair contested case hearing. Except as provided by this chapter or in the notice of hearing, the TCRP as applied to non-jury civil cases shall be applicable to hearings in contested cases as far as reasonably practical.(b) Parties, representatives, and other participants in a contested case shall:(1) conduct themselves with dignity;(2) show courtesy and respect for one another and the hearings examiner;(3) follow any additional guidelines of decorum prescribed by the hearings examiner; and(4) adhere to the time schedule.(c) If a participant violates this section, the hearing examiner may:(1) issue a warning;(2) recess the hearing; or(3) exclude a person from the contested case hearing for such period and upon such conditions as are just.</content><note type="source"><p>Source Note: The provisions of this §224.250 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scG/s224.252"><num value="224.252">§224.252</num><heading>Hearings</heading><content>(a) Depositions, interrogatories, and requests for admission shall not be allowed.(b) When possible, an in-person hearing will be held in the city in which the complainant resides. A hearing may also be conducted by telephone or videoconference.(c) A hearing will be scheduled at the earliest date possible, provided that a 10-day notice or other notice required by law is given to all parties.(d) A hearing will be conducted expeditiously by a hearings examiner in accordance with Government Code, Chapter 2001, subject to Occupations Code, Chapter 2301, and this subchapter.(e) If a party fails to appear for the hearing, relief may be granted to the party that appears.(f) Absent a showing of good cause, a complaint may be dismissed if the complainant repeatedly fails to respond or communicate with the department.(g) The complainant shall have the burden of proof by a preponderance of the evidence.(h) Hearings will be conducted informally. A party has a right to be represented by an attorney at a hearing, although an attorney is not required. A party who intends to be represented at a hearing by an attorney or other authorized representative must notify the hearings examiner and any other party in writing at least five business days prior to the hearing. Failure to provide notice will result in postponement of the hearing if requested by another party.(i) Subject to a hearings examiner ruling, a party may present that party's case in full, including testimony from witnesses and documentary evidence such as repair orders, warranty documents, and the motor vehicle sales contract.(j) With written approval of the hearings examiner, a hearing may be conducted by written submission only or by telephone or videoconference.(k) Upon notice to the parties, a hearings examiner may conduct a hearing or prehearing conference by telephone or videoconference.(l) Except for a hearing conducted by written submission, a party may be questioned by another party at the discretion of the hearings examiner.(m) Except for a hearing conducted by written submission, telephone, or videoconference, the complainant may bring the motor vehicle in question to the hearing so that the motor vehicle may be inspected and test driven by Respondent.(n) Except for a hearing conducted by written submission, a hearing will be recorded by the hearings examiner. A copy of the recording will be provided to any party upon request and upon payment of the cost of the copy as provided by statute or rules.</content><note type="source"><p>Source Note: The provisions of this §224.252 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scG/s224.254"><num value="224.254">§224.254</num><heading>Evidence</heading><content>(a) General. The TRE shall apply in all contested cases, in accordance with Government Code, Chapter 2001.(b) Documents in department files. The hearings examiner may take official notice of documents or information in the department's files, in accordance with Government Code, Chapter 2001.(c) Exhibits. Exhibits shall be limited to the relevant and material issues involved in a particular contested case. If an offered exhibit has been excluded after objection and the party offering the exhibit withdraws the offer, the hearings examiner shall return the exhibit. If the excluded exhibit is not withdrawn, it shall be given an exhibit number for identification and be included in the record only for the purpose of preserving the exception together with the hearings examiner's ruling.(d) Evidence may be stipulated by agreement of all parties.</content><note type="source"><p>Source Note: The provisions of this §224.254 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scG/s224.256"><num value="224.256">§224.256</num><heading>Objections and Exceptions</heading><content>A party is not required to make a formal exception to a ruling of the hearings examiner.</content><note type="source"><p>Source Note: The provisions of this §224.256 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scG/s224.258"><num value="224.258">§224.258</num><heading>Final Order Authority</heading><content>(a) The hearings examiner has final order authority in a contested case filed under Occupations Code, §2301.204 or Occupations Code, Chapter 2301, Subchapter M.(b) This authority includes a contested case in which a case is resolved:(1) by settlement;(2) by agreed order;(3) by withdrawal of the complaint;(4) by dismissal for want of prosecution or continued failure to communicate with the department;(5) by dismissal for want of jurisdiction;(6) by summary judgment or summary disposition;(7) by a default judgment; or(8) when a party waives the opportunity for a contested case hearing.</content><note type="source"><p>Source Note: The provisions of this §224.258 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scG/s224.260"><num value="224.260">§224.260</num><heading>Lemon Law Relief Decisions</heading><content>(a) Unless otherwise indicated, this section applies to decisions that relate to lemon law complaints. Decisions shall give effect to the presumptions provided in Occupations Code, §2301.605, where applicable.(1) If a hearings examiner finds that the manufacturer, distributor, or converter is not able to conform the motor vehicle to an applicable express warranty by repairing or correcting a defect in the complainant's motor vehicle, creating a serious safety hazard or substantially impairing the use or market value of the motor vehicle after a reasonable number of attempts, and that the affirmative defenses provided under Occupations Code, §2301.606 are not applicable, the hearings examiner shall issue a final order to the manufacturer, distributor, or converter to:(A) replace the motor vehicle with a comparable motor vehicle; or(B) accept the return of the motor vehicle from the owner and refund the full purchase price of the motor vehicle to the owner, less a reasonable allowance for the owner's use of the motor vehicle and any other allowances or refunds payable to the owner.(2) In a decision in favor of the complainant, the hearings examiner will, to the extent possible, accommodate the complainant's request with respect to replacement or repurchase of the motor vehicle.(b) This subsection applies only to the repurchase of motor vehicles.(1) When a refund is ordered, the purchase price shall be the total purchase price of the motor vehicle, excluding the amount of any interest, finance charge, or insurance premiums. The refund amount to the motor vehicle owner shall include reimbursement of the amount of the lemon law complaint filing fee paid by, or on behalf of, the motor vehicle owner. The refund shall be made payable to the motor vehicle owner and to any lienholder, respective to each person's ownership interest in the motor vehicle.(2) There is a rebuttable presumption that the expected useful life of a motor vehicle is 120,000 miles. Except in cases where the preponderance of the evidence shows the motor vehicle has a longer or shorter expected useful life than 120,000 miles, the reasonable allowance for the owner's use of the motor vehicle shall be the sums of the amounts obtained by adding subparagraphs (A) and (B) of this paragraph.(A) The product obtained by multiplying the total purchase price, as defined in paragraph (1) of this subsection, of the motor vehicle by a fraction having as its denominator 120,000 and having as its numerator the number of miles that the motor vehicle traveled from the time of delivery to the owner to the date of the date of the first report of the defect or condition forming the basis of the repurchase order; and(B) 50% of the product obtained by multiplying the total purchase price by a fraction having as its denominator 120,000 and having as its numerator the number of miles that the motor vehicle traveled after the first report of the defect or condition forming the basis of the repurchase order through the date of the hearing.(3) There is a rebuttable presumption the expected useful life of a towable recreational vehicle is 5,475 days or 15 years. Except in cases where a preponderance of the evidence shows that the vehicle has a longer or shorter expected useful life than 5,475 days or 15 years, the reasonable allowance for the owner's use of the towable recreational vehicle shall be the sum of the amount obtained by adding subparagraphs (A) and (B) of this paragraph.(A) The product obtained by multiplying the total purchase price, as defined in paragraph (1) of this subsection, of the towable recreational vehicle by a fraction having as its denominator 5,475 days or 15 years and having as its numerator the number of days from the time of delivery to the owner to the first report of the defect or condition forming the basis of the repurchase order.(B) 50% of the product obtained by multiplying the purchase price by a fraction having as its denominator 5,475 days or 15 years and having as its numerator the number of days of ownership after the date of the first report of the defect or condition forming the basis of the repurchase order through the date of the hearing.(C) Any day or part of a day that the vehicle is out of service for repair will be deducted from the numerator in determining the reasonable allowance for use of a towable recreational vehicle in this paragraph.(c) This subsection applies only to the repurchase of a leased motor vehicle.(1) Except in cases involving unusual and extenuating circumstances supported by a preponderance of the evidence, when a refund of the total purchase price of a leased motor vehicle is ordered, the refund shall be allocated and paid to the lessee and the vehicle lessor, respectively, in accordance with subparagraphs (A) and (B) of this paragraph.(A) The lessee shall receive the total of:(i) all lease payments previously paid by the lessee to the vehicle lessor under the terms of the lease; and(ii) all sums previously paid by the lessee to the vehicle lessor in connection with entering into the lease agreement, including, but not limited to any capitalized cost reduction, down payment, trade-in, or similar cost, plus sales tax, license, registration fees, and other documentary fees, if applicable.(B) The vehicle lessor shall receive the total of:(i) the actual price paid by the vehicle lessor for the motor vehicle, including tax, title, license, and documentary fees, if paid by the vehicle lessor and evidenced in a bill of sale, bank draft demand, tax collector's receipt, or similar instrument; and(ii) an additional 5.0% of the purchase price plus any amount or fee paid by the vehicle lessor to secure the lease or interest in the lease.(C) A credit reflecting all of the payments made by the lessee shall be deducted from the actual purchase price that the manufacturer, distributor, or converter is required to pay the vehicle lessor, as specified in subparagraph (B)(i) and (ii) of this paragraph.(2) When the hearings examiner orders a manufacturer, distributor, or converter to refund the purchase price in a leased vehicle transaction, the motor vehicle shall be returned to the manufacturer, distributor, or converter with clear title upon payment of the sums indicated in paragraph (1)(A) and (B) of this subsection. The vehicle lessor shall transfer title of the motor vehicle to the manufacturer, distributor, or converter, as necessary to effectuate the lessee's rights. The lease shall be terminated without penalty to the lessee.(3) Refunds shall be made to the lessee, vehicle lessor, and to any lienholder, respective to their ownership interest in the motor vehicle. The refund to the lessee under paragraph (1)(A) of this subsection shall be reduced by a reasonable allowance for the lessee's use of the motor vehicle. A reasonable allowance for use shall be computed in accordance with subsection (b)(2) or (3) of this section, using the amount in paragraph (1)(B)(i) of this subsection as the applicable total purchase price.(d) This subsection applies only to replacement of motor vehicles.(1) Upon a hearing examiner's issuance of a final order to a manufacturer, distributor, or converter to replace a motor vehicle, the manufacturer, distributor, or converter shall:(A) promptly authorize the exchange of the complainant's motor vehicle with the complainant's choice of any comparable motor vehicle; and(B) instruct the dealer to contract the sale of the selected comparable motor vehicle with the complainant under the following terms.(i) The sales price of the comparable motor vehicle shall be the vehicle's Manufacturer's Suggested Retail Price or Distributor's Suggested Retail Price (MSRP/DSRP), as applicable;(ii) The trade-in value of the complainant's motor vehicle shall be the MSRP/DRSP, as applicable, at the time of the original transaction, less a reasonable allowance for the complainant's use of the complainant's motor vehicle.(iii) The reasonable allowance for replacement relief shall be calculated in accordance with subsection (b)(2) and (3) of this section.(2) Upon a replacement of a complainant's motor vehicle, the complainant shall be responsible for payment or financing of the reasonable allowance for use of the complainant's vehicle, any outstanding liens on the complainant's vehicle, and applicable taxes and fees associated with the new sale of a comparable motor vehicle, excluding documentary fees.(A) If the comparable motor vehicle has a higher MSRP/DSRP, as applicable, than the complainant's vehicle, the complainant shall be responsible at the time of sale to pay or finance the difference in the two vehicles' MSRPs/DSRPs, as applicable, to the manufacturer, converter or distributor.(B) If the comparable motor vehicle has a lower MSRP/DSRP, as applicable, than the complainant's vehicle, the complainant will be credited the difference in the MSRP/DSRP, as applicable, between the two motor vehicles. The difference credited shall not exceed the amount of the calculated reasonable allowance for use for the complainant's vehicle.(3) The complainant is responsible for obtaining financing, if necessary, to complete the transaction.(4) The replacement transaction, as described in paragraphs (2) and (3) of this subsection, shall be completed as specified in the final order. If the replacement transaction cannot be completed within the ordered time period, the manufacturer shall repurchase the complainant's motor vehicle in accordance with the repurchase provisions of this section. If repurchase relief occurs, a party may request calculation of the refund price by the hearings examiner.(e) If the hearings examiner finds that a complainant's motor vehicle does not qualify for replacement or repurchase, the hearings examiner may enter an order requiring repair work to be performed or other action taken to obtain compliance with the manufacturer's, converter's, or distributor's warranty obligations.(f) If the motor vehicle is substantially damaged or if there is an adverse change in the motor vehicle's condition beyond ordinary wear and tear, from the date of the hearing to the date of repurchase, and the parties are unable to agree on an amount allowed for such damage or condition, either party may request reconsideration by the hearings examiner of the refund amount contained in the final order.(g) In any award in favor of a complainant, the hearings examiner may require the dealer involved to reimburse the complainant, manufacturer, distributor, or converter for the cost of any items or options added to the motor vehicle by the dealer if one or more of those items or options contributed to the defect that is the basis for the final order. This subsection shall not be interpreted to require a manufacturer, distributor, or converter to repurchase a motor vehicle due to a defect or condition that was solely caused by an item or option added by the dealer.</content><note type="source"><p>Source Note: The provisions of this §224.260 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scG/s224.262"><num value="224.262">§224.262</num><heading>Incidental Costs</heading><content>(a) When a refund of the purchase price or replacement of a motor vehicle is ordered, the complainant shall be reimbursed for certain incidental costs incurred by the complainant from loss of use of the motor vehicle because of the defect or nonconformity which is the basis of the complaint. The costs must be reasonable and verifiable. Reimbursable incidental costs include, but are not limited to the following costs:(1) alternate transportation;(2) towing;(3) telephone calls or mail charges directly attributable to contacting the manufacturer, distributor, converter, or dealer regarding the motor vehicle;(4) meals and lodging necessitated by the motor vehicle's failure during out-of-town trips;(5) loss or damage to personal property;(6) attorney fees if the complainant retains counsel after notification that the respondent is represented by counsel; and(7) items or accessories added to the motor vehicle at or after purchase, less a reasonable allowance for use.(b) Incidental costs shall be included in the final refund amount required to be paid by a manufacturer, distributor, or converter to a prevailing complainant, or in the case of a motor vehicle replacement, shall be tendered to the complainant at the time of replacement.(c) When awarding reimbursement for the cost of items or accessories presented under subsection (a)(7) of this section, the hearings examiner shall consider the permanent nature, functionality, and value added by the items or accessories and whether the items or accessories are original equipment manufacturer (OEM) parts or non-OEM parts.</content><note type="source"><p>Source Note: The provisions of this §224.262 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scG/s224.264"><num value="224.264">§224.264</num><heading>Final Orders</heading><content>(a) A hearings examiner shall prepare a final order as soon as possible, but not later than 60 days after the hearing is closed, or as otherwise provided by law. The final order shall include the hearings examiner's findings of fact and conclusions of law. The final order shall be sent by the department to all parties by certified mail.(b) A party who disagrees with the final order may file a motion for rehearing in accordance with Government Code, Chapter 2001, subject to Occupations Code, Chapter 2301, Subchapter O. A motion for rehearing of a final order must:(1) be filed with the chief hearings examiner;(2) include the specific reasons, exceptions, or grounds asserted by a party as the basis of the request for a rehearing; and(3) recite, if applicable, the specific findings of fact, conclusions of law, or any other portions of the final order to which the party objects.(c) Replies to a motion for rehearing must be filed with the chief hearings examiner in accordance with Government Code, Chapter 2001, subject to Occupations Code, §2301.713.(d) If the chief hearings examiner or designee grants a motion for rehearing, the parties will be notified by mail and a rehearing will be scheduled promptly. After rehearing, a final order shall be issued with any additional findings of fact or conclusions of law, if necessary to support the final order.(e) A hearings examiner may issue a final order granting the relief requested in a motion for rehearing or requested in a reply to a motion for rehearing without the need for a rehearing.(f) If a motion for rehearing is denied, the chief hearings examiner or designee will issue a final order and notify the parties.</content><note type="source"><p>Source Note: The provisions of this §224.264 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scG/s224.266"><num value="224.266">§224.266</num><heading>Compliance with Order Granting Relief</heading><content>(a) Compliance with a final order will be monitored by the department.(b) A complainant is not bound by a final order.(c) If a complainant does not accept the final order, the proceeding before the hearings examiner will be deemed concluded and the complaint file closed.(d) If the complainant accepts the final decision, then the manufacturer, distributor, or converter, and the dealer to the extent of the dealer's responsibility, if any, shall immediately take such action as is necessary to implement the final order.(e) If a manufacturer, distributor, or converter replaces or repurchases a motor vehicle pursuant to a final order, then the manufacturer, distributor, or converter shall, prior to the resale of such motor vehicle, retitle the vehicle in Texas and shall:(1) issue a disclosure statement on a form provided by or approved by the department; and(2) affix a department-approved disclosure label in a conspicuous location in or on the motor vehicle.(f) The disclosure statement and disclosure label required under subsection (e) of this section shall accompany the motor vehicle through the first retail purchase. No person holding a license or GDN issued by the department under Occupations Code, Chapter 2301 or Transportation Code, Chapter 503 shall remove or cause the removal of the disclosure label until delivery of the motor vehicle to the first retail purchaser.(g) A manufacturer, distributor, or converter shall provide to the department the name, address, and telephone number of the transferee to whom the manufacturer, distributor, or converter transfers the motor vehicle on the disclosure statement within 60 days of a transfer. A dealer that sells the vehicle to the first retail purchaser shall return the completed disclosure statement to the department within 60 days of the sale.(h) The manufacturer, distributor, or converter must repair the defect or condition in the motor vehicle that resulted in the vehicle being reacquired and issue a basic warranty excluding non-original equipment manufacturer items or accessories, for a minimum of 12 months or 12,000 miles, whichever comes first. The warranty shall be provided to the first retail purchaser of the motor vehicle.(i) In the event this section conflicts with the terms contained in a cease and desist order, the terms of the cease and desist order shall prevail.(j) The failure of any manufacturer, distributor, converter, or dealer to comply with a final order within the time period prescribed in the order may subject the manufacturer, converter, distributor, or dealer to formal action by the department, including the assessment of civil penalties of up to $10,000 per day per violation or other sanctions prescribed by Occupations Code, Chapter 2301.</content><note type="source"><p>Source Note: The provisions of this §224.266 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scG/s224.268"><num value="224.268">§224.268</num><heading>Judicial Appeal of a Final Order</heading><content>(a) A party who has exhausted all administrative remedies may appeal a final order in a Travis County district court under Government Code, Chapter 2001, and subject to Occupations Code, §2301.609.(b) A party appealing a final order must serve a copy of the petition for judicial review on the department and all parties of record. After service of the petition and within the time allowed for filing an answer, the department shall transmit to the reviewing court the original or a certified copy of the entire record of the proceeding. If the court orders that new evidence be presented to a hearings examiner, the hearings examiner may modify the findings and decision or order by reason of the new evidence and shall transmit the additional record to the court.</content><note type="source"><p>Source Note: The provisions of this §224.268 adopted to be effective June 1, 2024, 49 TexReg 2771.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c224/scH"><num value="H">SUBCHAPTER H</num><heading>AUTOMATED MOTOR VEHICLE AUTHORIZATIONS</heading><section identifier="/us/state/tx/tac/t43/p10/c224/scH/s224.290"><num value="224.290">§224.290</num><heading>Purpose and Scope</heading><content>This subchapter prescribes the procedures for:(1) the suspension, revocation, or cancellation of an automated motor vehicle authorization issued under Transportation Code, §545.456; (2) the imposition of a restriction on the operation of the automated motor vehicle under Transportation Code, §545.459; (3) the rescission of a suspension, revocation, or cancellation of an automated motor vehicle authorization under Transportation Code, §545.456 or §545.459; and (4) the removal of a restriction on the operation of the automated motor vehicle under Transportation Code, §545.459.</content><note type="source"><p>Source Note: The provisions of this §224.290 adopted to be effective February 27, 2026, 50 TexReg 6528.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scH/s224.292"><num value="224.292">§224.292</num><heading>Immediate Suspension, Revocation, or Cancellation of an Automated Motor Vehicle Authorization under Transportation Code, §545.456(f)</heading><content>(a) No other section in this chapter applies to a suspension, revocation, or cancellation of an automated motor vehicle authorization under Transportation Code, §545.456(f), except for §224.290 of this title (relating to Purpose and Scope).(b) The department may immediately suspend, revoke, or cancel an automated motor vehicle authorization under Transportation Code, §545.456(f) by sending notice to the authorization holder's email address on file in the department's designated system referenced in §220.23 of this title (relating to Application Requirements). The action described in the notice is effective when the notice is emailed by the department. (c) The department shall promptly notify the authorization holder of a rescission of a suspension, revocation, or cancellation of an automated motor vehicle authorization under Transportation Code, §545.456(g) by sending notice to the authorization holder's email address on file in the department's designated system referenced in §220.23 of this title. The recission described in the notice is effective when the notice is emailed by the department.(d) In addition to emailing a notice to the authorization holder under this section, the department shall also mail a notice to an authorization holder by first-class mail using the authorization holder's mailing address on file in the department's designated system referenced in §220.23 of this title. (e) The director of the department's Motor Carrier Division is authorized to make the decisions under this section regarding a suspension, revocation, cancellation, or rescission.(f) A reference in a department rule or communication to an "authorization holder" whose authorization is currently suspended, revoked, or cancelled does not rescind or invalidate the suspension, revocation or cancellation of the authorization.</content><note type="source"><p>Source Note: The provisions of this §224.292 adopted to be effective February 27, 2026, 50 TexReg 6528.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scH/s224.294"><num value="224.294">§224.294</num><heading>Suspension, Revocation, or Cancellation of Automated Motor Vehicle Authorization under Transportation Code, §545.459</heading><content>(a) Subchapters A, E, F, and I of this chapter apply to a suspension, revocation, or cancellation of an authorization under Transportation Code, §545.459, and the imposition of one or more restrictions on the operation of the automated motor vehicle under Transportation Code, §545.459.(b) The department shall send the notice of intent required under Transportation Code, §545.459 to the authorization holder by certified mail, return receipt requested consistent with Government Code, §2001.054. The department shall also send the notice of intent to the authorization holder's email address on file in the department's designated system referenced in §220.23 of this title (relating to Application Requirements). (c) Any request for an extension on the department's deadline for corrective action and certification under Transportation Code, §545.459(c)(2) and (e) must be submitted prior to the department's deadline listed in the department's notice of intent and must contain an explanation regarding the following:(1) why the department's deadline is not reasonable; (2) why the authorization holder needs more time, and the specific deadline the authorization holder is requesting; and(3) whether the authorization holder's requested deadline is likely to result in harm to the public health, safety, or welfare.(d) The department shall promptly provide notice to the authorization holder of the department's action under this section and Transportation Code, §545.459, using the authorization holder's email address on file in the department's designated system referenced in §220.23 of this title, except as otherwise provided by statute or rule, including §224.154 of this title (relating to Notice of Hearing) and §224.206 of this title (relating to Final Orders). The department shall also promptly mail such notice by first-class mail to an authorization holder using the authorization holder's mailing address on file in the department's designated system referenced in §220.23. The date the department emails a decision or final determination is the date the department issues a decision or final determination for the purposes of Transportation Code, §545.459(g), (h), and (i), as applicable.(e) The authorization holder shall submit any requests to the department under Transportation Code, §545.459 to the designated address listed in the department's notice to the authorization holder. (f) A representative of an authorization holder may be required to provide written proof to the department of authority to act on behalf of the authorization holder.(g) An authorization holder shall electronically file any certification under Transportation Code, §545.459(d) in the department's designated system and include an authorized signature on the certification, in accordance with §224.11 of this title (relating to Filing and Service of Documents). (h) The director of the department's Motor Carrier Division is authorized to issue a decision under Transportation Code, §545.459(g). (i) The director of the department's Motor Carrier Division shall review the decision and issue a final determination under Transportation Code, §545.459(h) if the authorization holder timely submits a written request to the department for review. (j) Except as otherwise provided under §224.29 of this title (relating to Delegation of Final Order Authority), the board has final order authority in a contested case under Transportation Code, §545.459(k). However, the director of the department's Motor Carrier Division shall take the actions required under Transportation Code, §545.459(j) regarding the rescission of a suspension, revocation, or cancellation, or the removal of a restriction, regardless of whether the board issued the final order.(k) If a hearing is not timely held as required by Transportation Code, §545.459(k), the department shall take the following actions:(1) request the State Office of Administrative Hearings to dismiss the contested case; and(2) promptly notify the authorization holder that the authorization is automatically reinstated and that any restriction is automatically removed, using the authorization holder's email address on file in the department's designated system referenced in §220.23 of this title.(l) A reference in a department rule or communication to an "authorization holder" whose authorization is currently suspended, revoked, or cancelled does not rescind or invalidate the suspension, revocation, or cancellation of the authorization.(m) Unless otherwise requested by the department in writing, §224.11(a) through (g) of this title do not apply to a certification or communication from the authorization holder to the department regarding the following under Transportation Code, §545.459(j): (1) a potential rescission of a suspension, revocation, or cancellation; or(2) a potential removal of a restriction.</content><note type="source"><p>Source Note: The provisions of this §224.294 adopted to be effective February 27, 2026, 50 TexReg 6528.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t43/p10/c224/scI"><num value="I">SUBCHAPTER I</num><heading>MOTOR CARRIER DIVISION DIRECTOR PROCEDURES IN CONTESTED CASES</heading><section identifier="/us/state/tx/tac/t43/p10/c224/scI/s224.310"><num value="224.310">§224.310</num><heading>Purpose and Scope</heading><content>This subchapter describes the procedures for the department's director of the Motor Carrier Division (Motor Carrier Division Director) to review and issue a final order in a contested case in which the following conditions are met: (1) the Motor Carrier Division Director is the final order authority pursuant to a delegation under this chapter or as designated under Transportation Code, §643.001(2); and (2) a SOAH ALJ has submitted a final proposal for decision for consideration by a person with such final order authority.</content><note type="source"><p>Source Note: The provisions of this §224.310 adopted to be effective February 27, 2026, 50 TexReg 6528.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scI/s224.312"><num value="224.312">§224.312</num><heading>Contested Case Review</heading><content>(a) After SOAH submits a final proposal for decision and transfers SOAH's administrative record to the department, the Motor Carrier Division Director has jurisdiction and the record required to issue a final order and will review the contested case in accordance with the APA.(b) The Motor Carrier Division Director may schedule a special public meeting to review the contested case, as specified under this subchapter; however, the Motor Carrier Division Director may also review SOAH's administrative record in a contested case and issue a final order without holding a special public meeting. The provisions in this subchapter regarding a special public meeting only apply if the Motor Carrier Division Director schedules a special public meeting.</content><note type="source"><p>Source Note: The provisions of this §224.312 adopted to be effective February 27, 2026, 50 TexReg 6528.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scI/s224.314"><num value="224.314">§224.314</num><heading>Request for Oral Presentation</heading><content>(a) At least 20 days prior to the scheduled date of a special public meeting, the department shall notify the parties regarding the opportunity to attend and provide an oral presentation concerning a proposal for decision before the Motor Carrier Division Director. The department will deliver notice electronically to the last known email address provided to the department by the party or party's authorized representative in accordance with §224.11 of this title (relating to Filing and Service of Documents).(b) If a party intends to make an oral presentation at the special public meeting, a party must submit a written request for an oral presentation to the department's contact listed in the notice provided under subsection (a) of this section and copy all other parties in accordance with §224.11 of this title at least seven days prior to the date of the special public meeting at which the party's contested case will be reviewed.(c) If more than one party was not adversely affected by the proposal for decision, such parties may agree on the order of their presentations in lieu of the order prescribed under §224.320 of this title (relating to Order of Oral Presentations to the Motor Carrier Division Director). These parties must submit the agreed order of their presentations along with their requests to make an oral presentation under subsection (b) of this section. The order of presentations will be determined under §224.320 of this title if the parties who were not adversely affected by the proposal for decision do not timely provide the department and the other parties with notice regarding their agreed order of presentation.(d) If a party timely submits a written request for an oral presentation, that party may make an oral presentation before the Motor Carrier Division Director at the special public meeting. If a party fails to submit a written request for an oral presentation timely, that party shall not make an oral presentation at the special public meeting. (e) Non-parties are not authorized to provide an oral presentation or public comment to the Motor Carrier Division Director at a special public meeting.</content><note type="source"><p>Source Note: The provisions of this §224.314 adopted to be effective February 27, 2026, 50 TexReg 6528.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scI/s224.316"><num value="224.316">§224.316</num><heading>Written Materials and Evidence.</heading><content>(a) If a party wants to provide written materials at the special public meeting, the party must provide the written materials to the department and all other parties in accordance with §224.11 of this title (relating to Filing and Service of Documents) at least 14 days prior to the date of the special public meeting. If a party fails to timely provide written materials to the department or any other party, the department shall not provide the written materials to the Motor Carrier Division Director and the party shall not provide the written materials to the Motor Carrier Division Director at the special public meeting. (b) For the purposes of this section, written materials are defined as language or images including photographs or diagrams, that are contained in the SOAH administrative record and recorded in paper form except as stated otherwise in this subsection. The language or images in the written materials must be taken without changes from the SOAH administrative record; however, proposed final orders are allowed to be included in a party's written materials even if they contain arguments or requests that are not contained in the SOAH administrative record. Written materials shall be limited to evidence contained in the SOAH administrative record and consistent with the scope of the Motor Carrier Division Director's authority to act under Government Code, §2001.058(e) and the applicable law that governs the subject matter of the contested case, such as Transportation Code, Chapters 621-623, 643, or 645.(c) All information in the written materials shall include a citation to the SOAH administrative record on all points to specifically identify where the information is located. The citations may be provided in an addendum to the written materials that is not counted against the 15-page limit under subsection (d) of this section; however, the addendum must not include any information other than a heading that lists the name of the party, the caption for the contested case, and text that lists the citations and page numbers.(d) Written materials shall be 8.5 inches by 11 inches and single-sided. Written materials must be double-spaced and at least 12-point type if in text form. Written materials are limited to 15 pages per party. If a party provides the department with written materials that contain more pages than the maximum allowed, the department shall not provide the written materials to the Motor Carrier Division Director and a party shall not provide the written materials to the Motor Carrier Division Director at the special public meeting.(e) Non-parties are not authorized to provide written materials to the Motor Carrier Division Director at a special public meeting.</content><note type="source"><p>Source Note: The provisions of this §224.316 adopted to be effective February 27, 2026, 50 TexReg 6528.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scI/s224.318"><num value="224.318">§224.318</num><heading>Oral Presentation Limitations and Responsibilities</heading><content>(a) A party to a contested case under review by the Motor Carrier Division Director shall limit oral presentation and discussion to evidence in the SOAH administrative record. Also, oral presentation and discussion shall be consistent with the scope of the Motor Carrier Division Director's authority to act under Government Code, §2001.058(e) and the applicable law that governs the subject matter of the contested case, such as Transportation Code, Chapters 621-623, 643, or 645.(b) A party may argue that the Motor Carrier Division Director should remand the contested case to SOAH.(c) Each party is responsible for objecting when another party attempts to make arguments or engage in discussion regarding evidence that is not contained in the SOAH administrative record.(d) A party's presentation to the Motor Carrier Division Director is subject to the following limitations and conditions: (1) Each party shall be allowed a maximum of 15 minutes for their oral presentation. The Motor Carrier Division Director may increase this time.(2) No party is allowed to provide a rebuttal or a closing statement.(3) An intervenor of record from the SOAH proceeding supporting another party shall share that party's time.(4) Time spent by a party responding to a question from the Motor Carrier Division Director is not counted against such party's presentation time.(5) During an oral presentation, a party to the contested case before the Motor Carrier Division Director may object that a party presented material or argument that is not in the SOAH administrative record. Time spent discussing such objections is not counted against the objecting party's time.</content><note type="source"><p>Source Note: The provisions of this §224.318 adopted to be effective February 27, 2026, 50 TexReg 6528.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scI/s224.320"><num value="224.320">§224.320</num><heading>Order of Oral Presentation to the Motor Carrier Division Director</heading><content>(a) The department will present the procedural history and summary of the contested case.(b) The party that is adversely affected may present first. However, the Motor Carrier Division Director is authorized to determine the order of each party's presentation if:(1) it is not clear which party is adversely affected;(2) it appears that more than one party is adversely affected; or(3) different parties are adversely affected by different portions of the contested case under review.(c) The other party or parties not adversely affected will then have an opportunity to make a presentation. If more than one party is not adversely affected, each party will have an opportunity to respond in alphabetical order based on the name of the party in the pleadings in the SOAH administrative record, except as stated otherwise in §224.314 of this title (relating to Request for Oral Presentation).</content><note type="source"><p>Source Note: The provisions of this §224.320 adopted to be effective February 27, 2026, 50 TexReg 6528.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scI/s224.322"><num value="224.322">§224.322</num><heading>Motor Carrier Division Director Conduct and Discussion When Reviewing a Contested Case</heading><content>(a) The Motor Carrier Division Director shall conduct the contested case review in compliance with Government Code, Chapter 2001; and the applicable law that governs the subject matter of the contested case, such as Transportation Code, Chapters 621-623, 643, or 645, including the limitations on changing a finding of fact or conclusion of law made by a SOAH ALJ, and the prohibition on considering evidence outside of the SOAH administrative record.(b) The Motor Carrier Division Director may question a party or the department on any matter that is relevant to the proposal for decision; however, a question shall be consistent with the scope of the Motor Carrier Division Director's authority to take action under Government Code, §2001.058(e) and the applicable law that governs the subject matter of the contested case, such as Transportation Code, Chapters 621-623, 643, or 645; a question must be limited to evidence contained in the SOAH administrative record; and the communication must comply with §224.5 of this title (relating to Prohibited Communication). In considering a contested case, the Motor Carrier Division Director is authorized to ask a question regarding a request to remand the case to SOAH, including a remand to SOAH for further consideration of the evidence.</content><note type="source"><p>Source Note: The provisions of this §224.322 adopted to be effective February 27, 2026, 50 TexReg 6528.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scI/s224.324"><num value="224.324">§224.324</num><heading>Final Orders</heading><content>(a) The Motor Carrier Division Director shall sign a written final order in a contested case under this subchapter.(b) The department shall email a copy of the final order to the parties in the contested case and send a copy of the final order by certified mail, return receipt requested.(c) The provisions of Government Code, Chapter 2001, Subchapter F govern:(1) the issuance of a final order issued under this subchapter; and(2) motions for rehearing filed in response to a final order.(d) An order in a contested case is final in accordance with Government Code, §2001.144.</content><note type="source"><p>Source Note: The provisions of this §224.324 adopted to be effective February 27, 2026, 50 TexReg 6528.</p></note></section><section identifier="/us/state/tx/tac/t43/p10/c224/scI/s224.326"><num value="224.326">§224.326</num><heading>Public Access to Special Public Meetings</heading><content>(a) Persons who have special communication or accommodation needs and who plan to attend a special public meeting may contact the department's contact listed in the posted meeting agenda for the purpose of requesting auxiliary aids or services. Requests shall be made at least two days before a special public meeting. The department shall make every reasonable effort to accommodate these needs.(b) Members of the public are not authorized to question the parties to the contested case or the Motor Carrier Division Director regarding the contested case. (c) A person who disrupts a special public meeting shall leave the meeting room and the premises if ordered to do so by the Motor Carrier Division Director.</content><note type="source"><p>Source Note: The provisions of this §224.326 adopted to be effective February 27, 2026, 50 TexReg 6528.</p></note></section></subchapter></chapter></part><part identifier="/us/state/tx/tac/t43/p11"><num value="11">PART 11</num><heading>FORT BEND COUNTY TAX ASSESSOR-COLLECTOR</heading><chapter identifier="/us/state/tx/tac/t43/p11/c301"><num value="301">CHAPTER 301</num><heading>REGULATION OF MOTOR VEHICLE TITLE SERVICES</heading><subchapter identifier="/us/state/tx/tac/t43/p11/c301/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t43/p11/c301/sc/s301.1"><num value="301.1">§301.1</num><heading>Motor Vehicle Title Service Licensing</heading><content>(a) Definitions.(1) "Motor vehicle" has the meaning assigned by Texas Transportation Code §501.002.(2) "Motor vehicle title service" means any person that for compensation directly or indirectly assists other persons in obtaining title documents by submitting, transmitting, or sending applications for title documents to the appropriate government agencies.(3) "Title documents" means motor vehicle title applications, motor vehicle registration renewal applications, motor vehicle mechanic's lien title applications, motor vehicle storage lien title applications, motor vehicle temporary registration permits, motor vehicle title application transfers occasioned by the death of the title holder, or notifications under Chapter 683, Texas Transportation Code or Chapter 70, Texas Property Code.(4) "Title service license holder" means a person who holds a motor vehicle title service license or a title service runner's license.(5) "Title service record" means the written record for each transaction in which a motor vehicle title service receives compensation.(6) "Title service runner" means any person employed by a licensed motor vehicle title service to submit or present title documents to the county tax assessor-collector.(b) License Required.(1) A person may not act as a motor vehicle title service or act as an agent for that business (which includes a title service runner) in Fort Bend County unless that person holds a license issued by the Fort Bend County Tax Assessor-Collector.(2) A person commits an offense if the person violates a motor vehicle title service license rule adopted by the Fort Bend County Tax Assessor-Collector. Such an offense is a Class A misdemeanor.(3) Any unlicensed individual observed conducting motor vehicle transactions on behalf of others in Fort Bend County and who claims to be doing so without compensation shall complete an affidavit stating that they are not receiving compensation for the transaction. This affidavit shall be notarized and will be forwarded to the appropriate law-enforcement agencies by a deputy of the Fort Bend County Tax Assessor-Collector.(c) License Fees.(1) License fees must be remitted when the application is submitted and are non-refundable.(2) The fee for a vehicle title service company license shall for $200.00 for the initial application and $100.00 for each annual renewal.(3) The fee for a title service runner license shall be $50.00 for the initial application and $50.00 for each annual renewal.(d) General License Application Requirements.(1) Applications may only be made at the Fort Bend County Tax Office, 1317 Eugene Heimann Circle, Richmond, Texas.(2) An applicant for a motor vehicle title service license must complete all forms required by Fort Bend County Tax Assessor-Collector. The applicant must sign the application form and pay the license fee.(3) All applicants must present picture identification at the time of application. Lack of valid, picture identification shall disqualify an applicant from being licensed in Fort Bend County.(4) An applicant must be at least 16 years of age on the date the application is submitted to apply for a license in Fort Bend County.(5) The motor vehicle service company shall assume the responsibility for the accuracy and validity of all documents presented to the Fort Bend County Tax Assessor-Collector under its name.(6) An application must include:(A) the applicant's name, business address, and business telephone number;(B) the name under which the applicant will do business;(C) the physical address of each office from which the applicant will conduct business (a P.O. Box will not be accepted) and a corresponding photo of each building where business is being conducted;(D) the name of all individuals who have an ownership interest in the applicant motor vehicle title service company; and(E) if applicable, motor vehicle license information for each individual who has an ownership interest in the applicant motor vehicle title service company.(7) Runners must be identified and sponsored by the motor vehicle title service company in order to conduct business on its behalf. The required documents for any runner must be on file with each service company for which the runner is an authorized agent. Individuals whose names are not on file of a title company will not be allowed to conduct business in Fort Bend County on behalf of that title service company.(8) Applicants will be notified of the outcome of an application within 15 business days of the application being submitted to the Fort Bend County Tax Assessor-Collector. This notification will be mailed to the business address listed on the application.(9) All licenses are issued for a one year period and must be renewed each year after. A renewal application has the same requirements as a new application.(10) A license may not be issued under a fictitious name that is similar to or may be confused with the name of a governmental entity or that is deceptive or misleading to the public.(e) Application Requirements: Corporation. In addition to the General License Application Requirements, an applicant for a motor vehicle title service license that intends to engage in business as a corporation shall submit the following information:(1) a "doing business as" (DBA) certificate or articles of incorporation;(2) the name, address, date of birth, and social security number of each of the principal owners and directors of the corporation;(3) information about each officer and director as requested by the Fort Bend County Tax Assessor-Collector to establish the business reputation and character of the applicant; and(4) a statement indicating whether an employee, officer, or director has been refused a motor vehicle title service license or a title service runner's license or has been the holder of a license that was revoked or suspended in any Texas County.(f) Application Requirements: Partnership. In addition to the information required in General License Application Requirements, a motor vehicle title service license applicant that intends to engage in business as a partnership shall submit an application that includes the following information:(1) the name, address, date of birth, and social security number of each partner;(2) information about each partner as requested by the Fort Bend County Tax Assessor-Collector to establish the business reputation and character of the applicant; and(3) a statement indicating whether a partner or employee has been refused a motor vehicle title service license or a title service runner's license or has been the holder of a license that was revoked or suspended in any Texas County.(g) Denial, Suspension, or Revocation of License.(1) Grounds for the denial, suspension, revocation, or reinstatement of a license in Fort Bend County:(A) submitting false information on the application form or any supporting documents;(B) having been convicted of a felony or a crime of moral turpitude for which the completion date of the applicant's sentence is less than five years from the date of applying for a motor vehicle title service license;(C) having been found in violation of the administrative procedures required by the Texas Department of Transportation; or(D) having been found to have submitted a vehicle packet to the Fort Bend County Tax Assessor-Collector's office which contains false information and the Fort Bend County Tax Assessor-Collector determines that the false information was intentionally submitted by the motor vehicle title service company.(E) A runner license may be cancelled or suspended if the runner has presented a title packet to the Fort Bend County Tax Assessor-Collector that was not authorized by a licensed motor vehicle title service company or if the runner altered or forged the original paperwork prepared for and signed by the motor vehicle title service.(2) If the Fort Bend County Tax Assessor-Collector makes a determination that a person's license hereunder should be denied, cancelled, suspended or revoked, then the County Tax Assessor-Collector shall send notice of the action to the person, by registered or certified mail, stating the facts or conduct alleged to warrant the action.(3) Upon a determination of misrepresentation, fraud, or other cause, the Fort Bend County Tax Assessor-Collector may order a 90-day suspension of license for the first offense and a 180-day suspension of license for the second offense. A license may be revoked upon a third offense.(4) The Fort Bend County Tax Assessor-Collector may revoke any license upon conviction of license holder for a felony or crime of moral turpitude.(5) A person whose license is revoked may not apply for a new license before the first anniversary of the date of the revocation.(h) Appeals.(1) The Fort Bend County Tax Assessor-Collector shall appoint a five member Review Board to review any appeal of action for refusal, cancellation, suspension, revocation, or reinstatement of license. The Review Board shall consist of two deputies from the Fort Bend County Tax Assessor-Collector's office, two law enforcement officers and one representative from the motor vehicle industry.(2) Memberships will last for two years and replacements will be selected on a staggered basis. For the first year that the Board is established, two of the memberships shall be for one year to accommodate staggering. A member may be reappointed for additional terms as deemed appropriate by the Fort Bend County Tax Assessor-Collector.(3) A person that receives notice of adverse action taken on their own license by the Fort Bend County Tax Assessor-Collector may submit a written request for appeal or protest, and submit evidence, in the form of documents or testimony, to demonstrate that person's compliance with all requirements for the issuance, retention, or reinstatement of their license. The person must submit evidence and/or file a written request for an appeal of action taken on their own license with the County Tax Assessor-Collector within 20 calendar days from the date of the notice of action on their license.(4) Submitting evidence and/or filing a written request for an appeal must be sent to Fort Bend County Tax Office, 1317 Eugene Heimann Circle, Richmond, Texas by certified mail.(5) Upon timely filing of a request for an appeal, the County Tax Assessor-Collector shall request review by the Review Board. The adverse action shall be stayed until a final decision is made on the license.(6) The Review Board shall meet as needed, on a date determined by the Fort Bend County Tax Assessor-Collector. The Board will review any appeals and make a recommendation to the County Tax Assessor-Collector stating whether the Board agrees or disagrees with the action taken.(7) The Fort Bend County Tax Assessor-Collector shall appoint a member of the Review Board to chair meetings of the Review Board.(8) A quorum of three members of the Review Board must be present to render a decision. No proxy votes will be allowed.(9) A simple majority vote of Review Board members shall determine the recommendation on matters under consideration.(10) All decisions related to license appeals or protests shall be subject to final review and determination by the Fort Bend County Tax Assessor-Collector. The Fort Bend County Tax Assessor-Collector shall send disposition of the Appeal to the person, by registered or certified mail. If the Fort Bend Tax Assessor-Collector does not reinstate the license, any adverse action stayed by the appeal will be reinstated.(i) License Renewal.(1) A license pursuant to this section expires on the first anniversary of the date of issuance and may be renewed annually on or before the expiration date on payment of the required renewal fee.(2) A person who is otherwise eligible to renew a license may renew an unexpired license by paying to the Fort Bend County Tax Assessor-Collector before the expiration date of the license the required renewal fee. A person whose license has expired may not engage in activities that require a license until the license has been renewed under this section.(3) If a person's license has been expired for 90 days or less, the person may renew the license by paying to the Fort Bend County Tax Assessor-Collector 1-1/2 times the required renewal fee.(4) If a person's license has been expired for longer than 90 days but less than one year, the person may renew the license by paying to the Fort Bend County Tax Assessor-Collector two times the required renewal fee.(5) If a person's license has been expired for one year or longer, the person may not renew the license. The person may obtain a new license by complying with the requirements and procedures for obtaining an original license.(6) Notwithstanding Section 5, if a person was licensed in this state, moved to another state, and has been doing business in the other state for the two years preceding application, the person may renew an expired license. The person must pay to the Fort Bend County Tax Assessor-Collector a fee that is equal to two times the required renewal fee for the license.(7) Before the 30th day preceding the date on which a person's license expires, the Fort Bend County Tax Assessor-Collector shall notify the person of the impending expiration. The notice must be in writing and sent to the person's last known address according to the records of the Fort Bend County Tax Assessor-Collector.(j) Requirements for Conducting Motor Vehicle License Transactions.(1) All vehicle transactions for Fort Bend County will be processed at Fort Bend County Tax Office, 1317 Eugene Heimann Circle, Richmond, Texas.(2) A Fort Bend County Tax Assessor-Collector vehicle transaction form must accompany all motor vehicle service transactions. The motor vehicle title service company is responsible for the accuracy and validity of the information for each vehicle listed. Only vehicles authorized and listed by the licenses motor vehicle title service company will be processed.(3) All vehicles for which the title service company wants to complete a transaction on must be listed and identified as transfer or ownership, renewal or replacement of license plates or registration sticker on the transaction form.(4) After the final vehicle transaction on each transaction sheet is completed, a copy of the transaction sheet will remain on file at the office of the Fort Bend County Tax Assessor-Collector.(5) A holder of a motor vehicle title service license shall maintain records as required by the Fort Bend County Tax Assessor-Collector for each transaction in which the license holder receives compensation. The records shall include:(A) the date of the transaction;(B) the name, age, address, sex, driver's license number, and a legible photocopy of the driver's license for each customer; and(C) the vehicle make, model, year, license plate number, vehicle identification number, and a legible photocopy of proof of financial responsibility for the motor vehicle involved.(6) A motor vehicle title service shall keep:(A) two copies of all records required under this section for at least two years after the date of the transaction;(B) legible photocopies of any documents submitted by a customer; and(C) legible photocopies of any documents submitted to the Fort Bend County Tax Assessor-Collector.(7) A motor vehicle title service license holder or any of its employees shall allow an inspection of the required records by a peace officer on the premises of the motor vehicle title service at any reasonable time to verify, check, or audit the records.(k) Exemptions. The following persons and their agents are exempt from the licensing and other requirements described herein:(1) a franchised motor vehicle dealer or independent motor vehicle dealer who holds a general distinguishing number issued by the department under Texas Transportation Code Chapter 503;(2) a vehicle lessor holding a license issued by the Motor Vehicle Board under Chapter 2301, Texas Occupations Code, or a trust or other entity that is specifically not required to obtain a lessor license under §2301.254(a), Texas Occupations Code; and(3) a vehicle lease facilitator holding a license issued by the Motor Vehicle Board under Chapter 2301, Texas Occupations Code.</content><note type="source"><p>Source Note: The provisions of this §301.1 adopted to be effective January 16, 2011, 36 TexReg 58.</p></note></section></subchapter></chapter></part><part identifier="/us/state/tx/tac/t43/p12"><num value="12">PART 12</num><heading>EL PASO COUNTY TAX ASSESSOR-COLLECTOR</heading><chapter identifier="/us/state/tx/tac/t43/p12/c325"><num value="325">CHAPTER 325</num><heading>REGULATION OF MOTOR VEHICLE TITLE SERVICES</heading><subchapter identifier="/us/state/tx/tac/t43/p12/c325/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t43/p12/c325/sc/s325.1"><num value="325.1">§325.1</num><heading>Motor Vehicle Title Service Licensing</heading><content>(a) Definitions.(1) "Motor vehicle" has the meaning assigned by Texas Transportation Code §501.002(14).(2) "Motor vehicle title service" means any person or entity that for compensation directly or indirectly assists other persons in obtaining title documents by submitting, transmitting, or sending applications for title documents to the appropriate government agencies.(3) "Title documents" means motor vehicle title applications, motor vehicle registration renewal applications, motor vehicle mechanic's lien title applications, motor vehicle storage lien title applications, motor vehicle temporary registration permits, motor vehicle title application transfers occasioned by the death of the title holder, or notifications under Chapter 683, Texas Transportation Code or Chapter 70, Texas Property Code.(4) "Title service license holder" means a person who holds a motor vehicle title service license or a title service runner's license. A title service license holder is legally responsible for each title service runner it employs or contracts.(5) "Title service record" means the written record for each transaction in which a motor vehicle title service receives compensation.(6) "Title service runner" means any person employed by a licensed motor vehicle title service license holder to submit or present title documents to the county tax assessor-collector.(b) License Required.(1) A person may not act as a motor vehicle title service or act as an agent for that business (which includes a title service runner) in El Paso County unless that person holds a license issued by the El Paso County Tax Assessor-Collector.(2) A person commits an offense if the person violates a provision of Title 7, Subtitle A, Chapter 520, Subchapter C of the Texas Transportation Code or a rule adopted by the El Paso County Tax Assessor-Collector under Subchapter E, §§520.051 - 520.063 of the Texas Transportation Code. Such an offense is a Class A misdemeanor.(3) Any unlicensed individual observed conducting motor vehicle transactions on behalf of others in El Paso County and who claims to be doing so without compensation shall complete an affidavit stating that the individual is not receiving compensation for the transaction. This affidavit shall be notarized and will be forwarded to the Enforcement Division of the El Paso County Tax Assessor-Collector.(c) License Fees.(1) License fees must be remitted when the application is submitted and are non-refundable. License fees are payable only by certified bank check or money order unless the Tax Assessor-Collector agrees, in writing, to accept cash.(2) The fee for a motor vehicle title service license shall be $200 for the initial application and $200 for each annual renewal.(3) The fee for a title service runner license shall be $50 for the initial application and $50 for each annual renewal.(4) The fee for replacement of a lost title service license or title runner license shall be $10 for the first occurrence; $20 for the second occurrence; and $50 for each occurrence thereafter.(d) General License Application Requirements.(1) Applications may only be made at the El Paso County Tax Office, Tax Office Enforcement Division, at the address published on the El Paso County Tax Assessor-Collector's website at: http://www.epcounty.com/taxoffice/.(2) Applicants must submit to a criminal background check in conformance with reasonable policies adopted by the Tax Assessor-Collector.(3) An applicant for a motor vehicle title service license must complete all forms required by the El Paso County Tax Assessor-Collector. The applicant must sign the application form and pay the license fee.(4) All applicants must present government issued picture identification at the time of application. Lack of valid, government issued picture identification shall disqualify an applicant from being licensed in El Paso County.(5) An applicant must be at least 18 years of age on the date the application is submitted to apply for a license in El Paso County.(6) A motor vehicle title service shall assume the responsibility for the accuracy and validity of all documents presented to the El Paso County Tax Assessor-Collector under its name.(7) An application must include:(A) the applicant's name, business address, and business telephone number;(B) the name under which the applicant will do business;(C) the physical address of each office from which the applicant will conduct business (a P.O. Box will not be accepted) and a corresponding photo of each building where business is being conducted;(D) the name of all individuals who have an ownership interest in the applicant motor vehicle title service company;(E) a statement indicating whether the applicant has previously applied for a license under this section, the result of the previous application, and whether the applicant has ever been the holder of a license under this section that was revoked or suspended;(F) the applicant's federal tax identification number;(G) the applicant's state sales tax number; and(H) if applicable, motor vehicle license information for each individual who has an ownership interest in the applicant's motor vehicle title service company.(8) Title service runners must be identified and sponsored by a motor vehicle title service company in order to conduct business on the motor vehicle title service's behalf. The required documents for any runner must be on file with each service company for which the runner is an authorized agent. Individuals whose names are not on file with the Tax Assessor-Collector as a title service runner acting on behalf of a motor vehicle title service will not be allowed to conduct business in El Paso County on behalf of that motor vehicle title service.(9) Applicants will be notified of the outcome of an application within 30 days of the application being submitted to the El Paso County Tax Assessor-Collector. This notification will be mailed to the business address listed on the application.(10) All licenses are issued for a one year period and must be renewed each year thereafter. A renewal application has the same requirements as a new application.(11) A license may not be issued under a name that is fictitious; a name that is similar to or may be confused with the name of a governmental entity; or a name that is deceptive or misleading to the public.(e) Application Requirements: Corporation. In addition to the information required in subsection (d) of this section concerning General License Application Requirements, an applicant for a motor vehicle title service license that intends to engage in business as a corporation shall submit the following information:(1) the state of incorporation (if any);(2) a "doing business as" (DBA) certificate or articles of incorporation;(3) the name, address, date of birth, and social security number of each of the principal owners and directors of the corporation;(4) information about each officer and director as requested by the El Paso County Tax Assessor-Collector to establish the business reputation and character of the applicant; and(5) a statement indicating whether an employee, officer, or director has been refused a motor vehicle title service license or a title service runner's license or has been the holder of a license that was revoked or suspended in any Texas county.(f) Application Requirements: Partnership. In addition to the information required in subsection (d) of this section concerning General License Application Requirements, a motor vehicle title service license applicant that intends to engage in business as a partnership shall submit an application that includes the following information:(1) the name, address, date of birth, and social security number of each partner;(2) information about each partner as requested by the El Paso County Tax Assessor-Collector to establish the business reputation and character of the applicant; and(3) a statement indicating whether a partner or employee has been refused a motor vehicle title service license or a title service runner's license or has been the holder of a license that was revoked or suspended in any Texas county.(g) Denial, Suspension, or Revocation of License.(1) Grounds for the denial, suspension, revocation, or denial of reinstatement of a title service license or title service runner license in El Paso County include:(A) having been found to have submitted a vehicle packet, or other document, to the El Paso County Tax Assessor-Collector's office which contains false information, and the El Paso County Tax Assessor-Collector determines that the false information was intentionally submitted by the motor vehicle title service license holder or title service runner;(B) having been convicted of any felony, any crime of moral turpitude, or deceptive business practice for which the completion date of the applicant's sentence is fewer than five years from the date of applying for a motor vehicle title service license;(C) having been criminally or civilly sanctioned for the unauthorized practice of law by any government or quasi-government body with jurisdiction to do so;(D) having been found in violation of the administrative procedures required by the Texas Department of Transportation;(E) in the event the Tax Assessor-Collector determines a title service license holder has delinquent Class C misdemeanor fines, the licensee shall have thirty calendar (30) days from the date of deposit of written notice into the U.S. Postal Service to pay or otherwise resolve the fines. If the fines remain unresolved after thirty calendar (30) days, the Tax Assessor-Collector may, in his discretion, deny, suspend, refuse to renew, or revoke, as provided in this section, the license of that title service license holder;(F) a title service runner license may be revoked or suspended if the title service runner has presented a title packet to the El Paso County Tax Assessor-Collector that was not authorized by a licensed motor vehicle title service or if the title service runner altered or forged the original paperwork prepared for and signed by the motor vehicle title service;(G) failure to maintain records required by §520.057 of the Texas Transportation Code or this section;(H) behavior that causes disruption or creates a security concern to any tax office location or contracted office location, as determined by the Tax Assessor-Collector or designee, in his discretion;(I) involvement in the issuance of fraudulent liability insurance while holding an El Paso County title service license, as determined by the Tax Assessor-Collector or designee, in his discretion; and(J) all factual determinations under this section shall be made by the Tax Assessor-Collector, in his discretion, by a preponderance of the evidence standard.(2) If the El Paso County Tax Assessor-Collector makes a determination that a person's license hereunder should be denied, cancelled, suspended, or revoked, then the Tax Assessor-Collector shall send notice of the action to the person, by first class mail, stating the facts or conduct alleged to warrant the action.(3) Upon a determination of violation of this section, the El Paso County Tax Assessor-Collector may order the violator's license suspended for up to one (1) year for the first offense. The Tax Assessor-Collector, in his discretion, may order an additional suspension for up to one year or the revocation of the holder's license for the second offense. A license may be revoked upon a third offense.(4) A person whose license is revoked may not apply for a new license before the first anniversary of the date of the revocation. A person whose license has been revoked must apply for a new license under this section.(5) The Tax Assessor-Collector may discipline a title service license holder for acts in violation of these regulations or other law committed by a title service runner employed or contracted by the title service license holder. Such discipline may include suspension or revocation of the title service license holder's license if the Tax Assessor-Collector also suspends or revokes the license of the at-fault title service runner.(h) Appeals.(1) The El Paso County Tax Assessor-Collector shall appoint a five member Review Board to review any appeal of an action to refuse, cancel, suspend, revoke, or reinstate a license under this section. The Review Board shall consist of one member of the County Attorney's office, one member of the District Attorney's office, the Tax Assessor-Collector's Motor Vehicle Director, and two law enforcement officers.(2) Memberships will last for two years and replacements will be selected on a staggered basis. For the first year that the Board is established, two of the memberships shall be for one year to accommodate staggering. The Tax Assessor-Collector, in his discretion, shall determine which initial board memberships to stagger. A member may be reappointed for additional terms as deemed appropriate by the El Paso County Tax Assessor-Collector.(3) If a member is absent for three consecutive meetings, the Tax Assessor-Collector, in his discretion, may remove the member and appoint a new member to serve the remainder of the term.(4) If a review board member is removed or resigns, the Tax Assessor-Collector may appoint a new review board member to fill that member's position. The new member will serve for the remainder of the former member's term.(5) A person who receives notice of adverse action taken on his own license by the El Paso County Tax Assessor-Collector may submit a written request for appeal or protest and submit evidence, in the form of documents or testimony, to demonstrate that person's compliance with all requirements for the issuance, retention, or reinstatement of the person's license. The person must submit evidence and file a written request for the appeal of an action taken on the person's license with the County Tax Assessor-Collector within 10 calendar days from the date of receipt of the notice of action on the person's license. Proof of receipt of a notice of action, or any other document that triggers a deadline under this section, includes, but is not limited to, a certified mail return receipt. The Tax Assessor-Collector or the Review Board may grant additional time to comply with this section upon written request.(6) Evidence and/or a written request for an appeal must be sent to El Paso County Tax Office, Enforcement Division, via certified mail at the address published at: http://www.epcounty.com/taxoffice/.(7) Upon timely filing of a request for an appeal, the County Tax Assessor-Collector shall request review by the Review Board. The adverse action shall be stayed until a final decision is made on the license.(8) The Review Board shall meet as needed, on a date determined by the El Paso County Tax Assessor-Collector. The Board will review any appeals and make a recommendation to the County Tax Assessor-Collector stating whether the Board agrees or disagrees with the action taken.(9) The El Paso County Tax Assessor-Collector shall appoint a member of the Review Board to chair meetings of the Review Board.(10) A quorum of three members of the Review Board must be present to render a decision. No proxy votes will be allowed.(11) Review Board decisions are administrative in nature. As such courtroom rules of evidence shall not apply. However, the Review Board Chair may limit or discard evidence that is not material and relevant.(12) The parties to a Review Board proceeding shall file and exchange documentary evidence at least seven (7) days before a Review Board proceeding. The Chair may, at the Chair's discretion, exclude evidence that is not timely filed and served on the other party(ies).(13) A simple majority vote of a quorum of Review Board members shall determine the recommendation on matters under consideration. The Tax Assessor-Collector's Enforcement Division Director, or his or her designee, shall present the case to the Review Board and carry the burden of proof. The standard of proof shall be by a preponderance of the evidence.(14) A quorum of the Review Board may draft and approve other procedural rules that are not inconsistent with this section or other law. Any such rules must be published on the El Paso County website and made available to the public in print form upon request.(15) All decisions related to license appeals or protests shall be subject to final review and determination by the El Paso County Tax Assessor-Collector. The El Paso County Tax Assessor-Collector shall send disposition of the appeal to the person by registered or certified mail. If the Tax Assessor-Collector does not reinstate the license, any adverse action stayed by the appeal will be reinstated.(i) License Renewal.(1) A license pursuant to this section expires on the first anniversary of the date of issuance and may be renewed annually on or before the expiration date on payment of the required renewal fee. All renewals will be subject to an additional criminal background check and confirmation of the applicant's current address and contact information.(2) A person who is otherwise eligible to renew a license may renew an unexpired license by paying to the El Paso County Tax Assessor-Collector before the expiration date of the license the required renewal fee. A person whose license has expired may not engage in activities that require a license until the license has been renewed under this section.(3) If a person's license has been expired for 90 days or less, the person may renew the license by paying to the El Paso County Tax Assessor-Collector one and one-half times the required renewal fee.(4) If a person's license has been expired for longer than 90 days but less than one year, the person may renew the license by paying to the El Paso County Tax Assessor-Collector two times the required renewal fee.(5) If a person's license has been expired for one year or longer, the person may not renew the license. The person may obtain a new license by complying with the requirements and procedures for obtaining an original license.(6) Notwithstanding paragraph (5) of this subsection, if a person was licensed in this state, moved to another state, and has been doing business in the other state for the two years preceding application, the person may renew an expired license. The person must pay to the El Paso County Tax Assessor-Collector a fee that is equal to two times the required renewal fee for the license.(7) Before the 30th day preceding the date on which a person's license expires, the El Paso County Tax Assessor-Collector shall notify the person of the impending expiration. The notice must be in writing and sent to the person's last known address according to the records of the El Paso County Tax Assessor-Collector. Failure to send notice under this provision does not provide any right or remedy to license holders.(j) Requirements for Conducting Motor Vehicle License Transactions.(1) All vehicle transactions for El Paso County will be processed at an official El Paso County Tax Office, including 500 E. Overland Ave., Suite 101, El Paso, Texas 79901; 4641 Cohen Ave., Suite B, El Paso, Texas 79924; and Ysleta Annex, 9521 Socorro Rd., Suite B-4, El Paso, Texas 79927 or any other location specified by the Tax Assessor-Collector in writing at: http://www.epcounty.com/taxoffice/.(2) Title service license holders and title service runners may not conduct business at privately run, contracted offices. A list of these offices is available upon request.(3) An El Paso County Tax Assessor-Collector letter of authorization form must accompany all motor vehicle title service transactions. Title service providers may obtain a blank letter of authorization from the El Paso County Tax Assessor-Collector. The motor vehicle title service company is responsible for the accuracy and validity of the information for each vehicle listed. Only vehicles authorized and listed by the licensed motor vehicle title service will be processed.(4) Motor vehicle title services and runners may only process the following documents: motor vehicle title applications; motor vehicle registration renewal applications; requests for replacement windshield stickers; and requests for new or replacement vehicle license plates. The El Paso County Tax Assessor-Collector does not currently accept applications for a motor vehicle mechanic's lien title or motor vehicle storage lien title from motor vehicle title services or runners.(5) After the final vehicle transaction on each transaction sheet is completed, a copy of the transaction sheet will remain on file at the office of the El Paso County Tax Assessor-Collector.(6) A holder of a motor vehicle title service license shall maintain records as required by Texas law for each transaction in which the license holder receives compensation. The records shall include:(A) the date of the transaction;(B) the name, age, address, sex, driver license number, and a legible photocopy of the driver's license for each customer; and(C) the vehicle make, model, year, license plate number, vehicle identification number, and a legible photocopy of proof of financial responsibility for the motor vehicle involved.(7) A motor vehicle title service shall keep, for at least two (2) years after the date of the transaction:(A) two copies of all records required under this section;(B) legible photocopies of any documents submitted by a customer; and(C) legible photocopies of any documents submitted to the El Paso County Tax Assessor-Collector.(8) A motor vehicle title service license holder or any of its employees shall allow an inspection of the required records by a peace officer on the premises of the motor vehicle title service at any reasonable time to verify, check, or audit the records. Failure to do so, or to maintain required records, may result in discipline under this section.(k) Exemptions. The following persons and their agents are exempt from the licensing and other requirements described in this section:(1) a franchised motor vehicle dealer or independent motor vehicle dealer who holds a general distinguishing number issued by the department under Texas Transportation Code Chapter 503;(2) a vehicle lessor holding a license issued by the Motor Vehicle Board under Chapter 2301, Texas Occupations Code, or a trust or other entity that is specifically not required to obtain a lessor license under §2301.254(a), Texas Occupations Code; and(3) a vehicle lease facilitator holding a license issued by the Motor Vehicle Board under Chapter 2301, Texas Occupations Code.(l) The Tax Assessor-Collector may require title service license holders and title service runners to attend an annual training to orient such licensees to this section, Texas law, and the Tax Assessor-Collector's policies under this section. Failure to attend the training may result in discipline under this section.(m) The Tax Assessor-Collector may authorize other policies and procedures that are not inconsistent with this section or other law and to the extent authorized by law.</content><note type="source"><p>Source Note: The provisions of this §325.1 adopted to be effective September 23, 2013, 38 TexReg 6231.</p></note></section></subchapter></chapter></part><part identifier="/us/state/tx/tac/t43/p13"><num value="13">PART 13</num><heading>HIDALGO COUNTY TAX ASSESSOR-COLLECTOR</heading><chapter identifier="/us/state/tx/tac/t43/p13/c401"><num value="401">CHAPTER 401</num><heading>MOTOR VEHICLE TITLE SERVICES</heading><subchapter identifier="/us/state/tx/tac/t43/p13/c401/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t43/p13/c401/sc/s401.1"><num value="401.1">§401.1</num><heading>Definitions</heading><content>(a) "Motor vehicle" has the meaning assigned by Texas Transportation Code §501.002(17).(b) "Motor vehicle title service" means any person or entity that for compensation directly or indirectly assists other persons in obtaining title documents by submitting, transmitting, or sending applications for title documents to the appropriate government agencies.(c) "Title documents" means motor vehicle title applications, motor vehicle registration renewal applications, motor vehicle mechanic's lien title applications, motor vehicle storage lien title applications, motor vehicle temporary registration permits, motor vehicle title application transfers occasioned by the death of the title holder, or notifications under Chapter 683 of the Texas Transportation Code or Chapter 70 of the Texas Property Code.(d) "Title service license holder" means a person who holds a motor vehicle title service license or a title service runner's license. A title service license holder is legally responsible for each title service runner it employs or contracts.(e) "Title service record" means the written record for each transaction in which a motor vehicle title service receives compensation.(f) "Title service runner" means any person employed by a licensed motor vehicle title service license holder to submit or present title documents to the county tax assessor-collector.</content><note type="source"><p>Source Note: The provisions of this §401.1 adopted to be effective June 29, 2016, 41 TexReg 4650.</p></note></section><section identifier="/us/state/tx/tac/t43/p13/c401/sc/s401.2"><num value="401.2">§401.2</num><heading>License Requirement</heading><content>(a) A person may not act as a motor vehicle title service or act as an agent for such a business (which includes a title service runner) in Hidalgo County unless that person holds a license issued by the Hidalgo County Tax Assessor-Collector to conduct such transactions.(b) A person commits an offense if the person violates a provision of Title 7, Subtitle A, Chapter 520, Subchapter C of the Texas Transportation Code or a rule adopted by the Hidalgo County Tax Assessor-Collector under Subchapter E, §§520.051 - 520.063 of the Texas Transportation Code. Such an offense is a Class A misdemeanor.(c) Any unlicensed individual observed conducting motor vehicle transactions on behalf of others in Hidalgo County and who claims to be doing so without compensation shall complete an affidavit stating that the individual is not receiving compensation for the transaction. This affidavit shall be notarized and will be forwarded to the Fraud Investigations Department of the Hidalgo County Tax Assessor-Collector.</content><note type="source"><p>Source Note: The provisions of this §401.2 adopted to be effective June 29, 2016, 41 TexReg 4650.</p></note></section><section identifier="/us/state/tx/tac/t43/p13/c401/sc/s401.3"><num value="401.3">§401.3</num><heading>License Fees</heading><content>(a) License fees must be remitted at the time a license application is submitted and are non-refundable. License fees are payable only by certified bank check or money order unless the Hidalgo County Tax Assessor-Collector agrees, in writing, to accept cash.(b) The fee for a motor vehicle title service license shall be $500 for the initial application and $200 for each annual renewal.(c) The fee for a title service runner license shall be $100 for the initial application and $100 for each annual renewal.(d) The fee for replacement of a lost title service license or title runner license shall be $20 for the first occurrence; $20 for the second occurrence; and $20 for each occurrence thereafter.</content><note type="source"><p>Source Note: The provisions of this §401.3 adopted to be effective June 29, 2016, 41 TexReg 4650.</p></note></section><section identifier="/us/state/tx/tac/t43/p13/c401/sc/s401.4"><num value="401.4">§401.4</num><heading>General License Application Requirements</heading><content>(a) Applications for a title service license may be submitted Monday through Friday, from 9:00 a.m. to 4:00 p.m., at the Hidalgo County Tax Office located at 2804 S. US HWY 281, Edinburg, Texas 78539 or online at the Hidalgo County Tax Assessor-Collector's website at: http://www.hidalgocountytax.org.(b) An applicant for a motor vehicle title service license must complete all forms required by the Hidalgo County Tax Assessor-Collector. The applicant must sign the application form and pay the license fee. An application must include:(1) the applicant's name, business address, and business telephone number;(2) the name under which the applicant will do business;(3) the physical address of each office from which the applicant will conduct business (a P.O. Box will not be accepted) and a corresponding photo of each building where business is being conducted;(4) a statement indicating whether the applicant has previously applied for a license under this section, the result of the previous application, and whether the applicant has ever been the holder of a license under this section that was revoked or suspended in any Texas county;(5) the applicant's federal tax identification number;(6) the applicant's state sales tax number; and(7) the name of all individuals who have an ownership interest in the applicant motor vehicle title service company;(8) if applicable, motor vehicle license information for each individual who has an ownership interest in the applicant's motor vehicle title service company.(c) Following the submission of an application, an applicant must submit to a criminal background check in conformance with policies adopted by the Hidalgo County Tax Assessor-Collector.(d) An applicant must present a valid, government-issued picture identification at the time of application. Lack of identification shall prevent the Hidalgo County Tax Assessor-Collector from granting a person's application for a title service license.(e) An applicant must be at least 18 years of age on the date the application is submitted to apply for a title service license.(f) Applicants will be notified of the outcome of an application within 30 days of the application being submitted to the Hidalgo County Tax Assessor-Collector. This notification will be mailed to the business address listed on the application.(g) All licenses are issued for a period of one year and must be renewed each year thereafter. A renewal application has the same requirements as a new application.(h) A license may not be issued under a name that is fictitious; a name that is similar to or may be confused with the name of a governmental entity; or a name that is deceptive or misleading to the public.</content><note type="source"><p>Source Note: The provisions of this §401.4 adopted to be effective June 29, 2016, 41 TexReg 4650.</p></note></section><section identifier="/us/state/tx/tac/t43/p13/c401/sc/s401.5"><num value="401.5">§401.5</num><heading>Additional Application Requirements for Certain Businesses</heading><content>(a) Corporation. In addition to the information required above concerning General License Application Requirements, an applicant for a motor vehicle title service license that intends to engage in business as a corporation shall submit the following information:(1) the state of incorporation (if any);(2) a "doing business as" (DBA) certificate or articles of incorporation;(3) the name, address, date of birth, and social security number of each of the principal owners and directors of the corporation;(4) information about each officer and director as requested by the Hidalgo County Tax Assessor-Collector to establish the business reputation and character of the applicant; and(5) a statement indicating whether an employee, officer, or director has been refused a motor vehicle title service license or a title service runner's license or has been the holder of a license that was revoked or suspended in any Texas county.(b) Partnership. In addition to the information required above concerning General License Application Requirements, a motor vehicle title service license applicant that intends to engage in business as a partnership shall submit an application that includes the following information:(1) the names, address, date of birth, and social security number of each partner;(2) information about each partner as requested by the Hidalgo County Tax Assessor-Collector to establish the business reputation and character of the applicant; and(3) a statement indicating whether a partner or employee has been refused a motor vehicle title service license or a title service runner's license or has been the holder of a license that was revoked or suspended in any Texas county.</content><note type="source"><p>Source Note: The provisions of this §401.5 adopted to be effective June 29, 2016, 41 TexReg 4650.</p></note></section><section identifier="/us/state/tx/tac/t43/p13/c401/sc/s401.6"><num value="401.6">§401.6</num><heading>Tax Assessor-Collector Transactions</heading><content>(a) All vehicle transactions for Hidalgo County will be processed at the Hidalgo County Tax Office, 2804 S. US HWY 281, Edinburg, Texas 78539; or any other location specified by the Tax Assessor-Collector in writing at: http://www.hidalgocountytax.org.(b) Title service license holders and title service runners may conduct business at privately run, contracted offices. A list of these offices is available upon request.(c) An Hidalgo County Tax Assessor-Collector title service transaction form must accompany all motor vehicle title service transactions. Title service providers may obtain a blank title service transaction form from the Hidalgo County Tax Assessor-Collector. The motor vehicle title service company is responsible for the accuracy and validity of the information for each vehicle listed. Only vehicles authorized and listed by the licensed motor vehicle title service will be processed.(d) Motor vehicle title services and runners may only process the following documents: motor vehicle title applications; motor vehicle registration renewal applications; requests for replacement windshield stickers; and requests for new or replacement vehicle license plates. The Hidalgo County Tax Assessor-Collector will also accept applications for a motor vehicle mechanic's lien title, a motor vehicle storage lien title and a bond title from a motor vehicle title services or runners.(e) After the final vehicle transaction on each transaction sheet is completed, a copy of the transaction sheet will remain on file at the office of the Hidalgo County Tax Assessor-Collector.(f) A motor vehicle title service shall assume the responsibility for the accuracy and validity of all documents presented to the Hidalgo County Tax Assessor-Collector under its name.(g) Title service runners must be identified and sponsored by a motor vehicle title service company in order to conduct business on the motor vehicle title service's behalf. The required documents for any runner must be on file with each service company for which the runner is an authorized agent. Individuals whose names are not on file with the Hidalgo County Tax Assessor-Collector as a title service runner acting on behalf of a motor vehicle title service will not be allowed to conduct business with the Hidalgo County Tax Assessor-Collector on behalf of that motor vehicle title service.</content><note type="source"><p>Source Note: The provisions of this §401.6 adopted to be effective June 29, 2016, 41 TexReg 4650.</p></note></section><section identifier="/us/state/tx/tac/t43/p13/c401/sc/s401.7"><num value="401.7">§401.7</num><heading>Record Keeping</heading><content>(a) A holder of a motor vehicle title service license shall maintain records as required by Texas law for each transaction in which the license holder receives compensation. The records shall include:(1) the date of the transaction;(2) the name, age, address, sex, driver license number, and a legible photocopy of the driver's license for each customer; and(3) the vehicle make, model, year, license plate number, vehicle identification number, and a legible photocopy of proof of financial responsibility for the motor vehicle involved.(b) A motor vehicle title service shall keep, for at least two (2) years after the date of the transaction:(1) two copies of all records required under this section;(2) legible photocopies of any documents submitted by a customer; and(3) legible photocopies of any documents submitted to the Hidalgo County Tax Assessor-Collector.(c) A motor vehicle title service license holder or any of its employees shall allow an inspection of the required records by a peace officer on the premises of the motor vehicle title service at any reasonable time to verify, check, or audit the records. Failure to do so, or to maintain required records, may result in discipline under these rules.</content><note type="source"><p>Source Note: The provisions of this §401.7 adopted to be effective June 29, 2016, 41 TexReg 4650.</p></note></section><section identifier="/us/state/tx/tac/t43/p13/c401/sc/s401.8"><num value="401.8">§401.8</num><heading>License Renewal</heading><content>(a) A license issued pursuant to these rules expires on the first anniversary of the date of issuance and may be renewed annually on or before the expiration date on payment of the required renewal fee as outlined above. All renewals will be subject to an additional criminal background check and confirmation of the applicant's current address and contact information.(b) A person who is otherwise eligible to renew a license may renew an unexpired license by paying to the Hidalgo County Tax Assessor-Collector before the expiration date of the license the required renewal fee. A person whose license has expired may not engage in activities that require a license until the license has been renewed under this section.(c) If a person's license has been expired for 90 days or less, the person may renew the license by paying to the Hidalgo County Tax Assessor-Collector one and one-half times the required renewal fee.(d) If a person's license has been expired for longer than 90 days but less than one year, the person may renew the license by paying to the Hidalgo County Tax Assessor-Collector two times the required renewal fee.(e) If a person's license has been expired for one year or more, the person may not renew the license. The person may obtain a new license by complying with the requirements and procedures for obtaining an original license. Notwithstanding this, if a person was licensed in this state, moved to another state, and has been doing business in the other state for the two years preceding application, the person may renew an expired license. The person must pay to the Hidalgo County Tax Assessor-Collector a fee that is equal to two times the required renewal fee for the license.(f) Before the 30th day preceding the date on which a person's license expires, the Hidalgo County Tax Assessor-Collector shall notify the person of the impending expiration. The notice must be in writing and sent to the person's last known address according to the records of the Hidalgo County Tax Assessor-Collector. Failure to send notice under this provision, however, does not provide any right or remedy to a license holder.</content><note type="source"><p>Source Note: The provisions of this §401.8 adopted to be effective June 29, 2016, 41 TexReg 4650.</p></note></section><section identifier="/us/state/tx/tac/t43/p13/c401/sc/s401.9"><num value="401.9">§401.9</num><heading>Denial, Suspension, or Revocation of License</heading><content>(a) Grounds for the denial, suspension, revocation, or denial of reinstatement of a title service license or title service runner license in Hidalgo County include, but are not limited to:(1) having been found to have submitted a vehicle packet, or other document, to the Hidalgo County Tax Assessor-Collector's office which contains false information, and the Hidalgo County Tax Assessor-Collector determines that the false information was intentionally submitted by the motor vehicle title service license holder or title service runner;(2) having been convicted of any felony, any crime of moral turpitude, or deceptive business practice for which the completion date of the applicant's sentence is fewer than five years from the date of applying for a motor vehicle title service license;(3) having been criminally or civilly sanctioned for the unauthorized practice of law by any government or quasi-government body with jurisdiction to do so;(4) having been found in violation of the administrative procedures required by the Texas Department of Motor Vehicles;(5) in the event the Tax Assessor-Collector determines a title service license holder has delinquent Class C misdemeanor fines, the licensee shall have thirty calendar (30) days from the date of deposit of written notice into the U.S. Postal Service to pay or otherwise resolve the fines. If the fines remain unresolved after thirty calendar (30) days, the Tax Assessor-Collector may, in his discretion, deny, suspend, refuse to renew, or revoke, as provided in this section, the license of that title service license holder;(6) a title service runner license may be revoked or suspended if the title service runner has presented a title packet to the Hidalgo County Tax Assessor-Collector that was not authorized by a licensed motor vehicle title service or if the title service runner altered or forged the original paperwork prepared for and signed by the motor vehicle title service;(7) failure to maintain records required by §520.057 of the Texas Transportation Code or this section;(8) behavior that causes disruption or creates a security concern to any tax office location or contracted office location, as determined by the Tax Assessor-Collector or designee, in his discretion; or(9) involvement in the issuance of fraudulent liability insurance while holding an Hidalgo County title service license, as determined by the Tax Assessor-Collector or designee, in his discretion.(b) The Hidalgo County Tax Assessor-Collector shall consider any and all substantial evidence available in making factual determinations under this section.(c) If the Hidalgo County Tax Assessor-Collector makes a determination that a person's license hereunder should be denied, cancelled, suspended, or revoked, then the Tax Assessor-Collector shall send notice of the action to the person, by certified mail, stating the facts or conduct alleged to warrant the action.(d) Upon a determination of violation of this section, the Hidalgo County Tax Assessor-Collector may order the violator's license suspended for up to one (1) year for the first offense. The Tax Assessor-Collector, in his discretion, may order an additional suspension for up to one year or the revocation of the holder's license for the second offense. A license may be revoked upon a third offense.(e) A person whose license is revoked may not apply for a new license before the first anniversary of the date of the revocation. A person whose license has been revoked must apply for a new license under this section.(f) A license may not be issued under a fictitious name that is similar to or may be confused with the name of a governmental entity or that is deceptive or misleading to the public.(g) The Tax Assessor-Collector may discipline a title service license holder for acts in violation of these regulations or other law committed by a title service runner employed or contracted by the title service license holder. Such discipline may include suspension or revocation of the title service license holder's license if the Tax Assessor-Collector also suspends or revokes the license of the at-fault title service runner.</content><note type="source"><p>Source Note: The provisions of this §401.9 adopted to be effective June 29, 2016, 41 TexReg 4650.</p></note></section><section identifier="/us/state/tx/tac/t43/p13/c401/sc/s401.10"><num value="401.10">§401.10</num><heading>The Review Board</heading><content>(a) A person who receives notice of adverse action taken on his license by the Hidalgo County Tax Assessor-Collector may submit a written request for appeal or protest and submit evidence, in the form of documents or testimony, to demonstrate that person's compliance with all requirements for the issuance, retention, or reinstatement of the person's license. The person must submit evidence and file a written request for the appeal of an action taken on the person's license with the County Tax Assessor-Collector within 10 calendar days from the date of receipt of the notice of action on the person's license. Proof of receipt of a notice of action, or any other document that triggers a deadline under this section, includes, but is not limited to, a certified mail return receipt. The Tax Assessor-Collector or the Review Board may grant additional time to comply with this section upon written request.(b) Evidence and/or a written request for an appeal must be sent to Hidalgo County Tax Office, via certified mail at 2804 S. US HWY 281, Edinburg, Texas 78539/P.O. Box 2099, Edinburg, Texas 78540 or at the address published at: http://www.hidalgocountytax.org.(c) Upon timely filing of a request for an appeal, the County Tax Assessor-Collector shall request review by the Review Board. The adverse action shall be stayed until a final decision is made on the license.(d) The above-referenced Review Board, designated by the Hidalgo County Tax Assessor-Collector, shall consist of an active member of the licensed Title Service, the Tax Assessor-Collector or his/her representative, and one law enforcement officer from the Fraud Investigations Department.(e) Each member of the Review Board shall serve for a term lasting for one year. A member may be designated for additional terms as deemed appropriate by the Hidalgo County Tax Assessor-Collector.(f) If a member is absent for three consecutive meetings, the Tax Assessor-Collector, may, in his discretion, remove the member and appoint a new member to serve the remainder of the term.(g) If a review board member is removed or resigns, the Tax Assessor-Collector may appoint a new review board member to fill that member's position. The new member will serve for the remainder of the former member's term.(h) The Review Board shall meet as needed, on a date determined by the Hidalgo County Tax Assessor-Collector. The Board will review any appeals and make a recommendation to the County Tax Assessor-Collector stating whether the Board agrees or disagrees with the action taken.(i) The Hidalgo County Tax Assessor-Collector shall be the Chair of the Review Board.(j) A quorum of three members of the Review Board must be present to render a decision. No proxy votes will be allowed.(k) Review Board decisions are administrative in nature. As such courtroom rules of evidence shall not apply. However, the Review Board Chair may limit or discard evidence that he or she finds is not material and relevant.(l) The parties to a Review Board proceeding shall file and exchange documentary evidence at least seven (7) days before a Review Board proceeding. The Chair may, at the Chair's discretion, exclude evidence that is not timely filed and served on the other party(ies).(m) A simple majority vote of a quorum of Review Board members shall determine the recommendation on matters under consideration. The Tax Assessor-Collector's Fraud Investigations Division, or his or her designee, shall present the case to the Review Board and carry the burden of proof. The standard of proof shall be by a preponderance of the evidence.(n) A quorum of the Review Board may draft and approve other procedural rules that are not inconsistent with this section or other law. Any such rules must be published on the Hidalgo County website and made available to the public in print form upon request.(o) All decisions related to license appeals or protests shall be subject to final review and determination by the Hidalgo County Tax Assessor-Collector. The Hidalgo County Tax Assessor-Collector shall send disposition of the appeal to the person by registered or certified mail. If the Tax Assessor-Collector does not reinstate the license, any adverse action stayed by the appeal will be reinstated.</content><note type="source"><p>Source Note: The provisions of this §401.10 adopted to be effective June 29, 2016, 41 TexReg 4650.</p></note></section><section identifier="/us/state/tx/tac/t43/p13/c401/sc/s401.11"><num value="401.11">§401.11</num><heading>Exemptions</heading><content>The following persons and their agents are exempt from the licensing and other requirements described in this section:(1) a franchised motor vehicle dealer or independent motor vehicle dealer who holds a general distinguishing number issued by the department under Texas Transportation Code Chapter 503;(2) a vehicle lessor holding a license issued by the Motor Vehicle Board under Chapter 2301, Texas Occupations Code, or a trust or other entity that is specifically not required to obtain a lessor license under §2301.254(a), Texas Occupations Code; and(3) a vehicle lease facilitator holding a license issued by the Motor Vehicle Board under Chapter 2301, Texas Occupations Code.</content><note type="source"><p>Source Note: The provisions of this §401.11 adopted to be effective June 29, 2016, 41 TexReg 4650.</p></note></section><section identifier="/us/state/tx/tac/t43/p13/c401/sc/s401.12"><num value="401.12">§401.12</num><heading>Training</heading><content>The Tax Assessor-Collector may require title service license holders and title service runners to attend an annual training to orient such licensees to these sections, Texas law, and the Tax Assessor-Collector's policies under these sections. Failure to attend the training may result in discipline under these sections.</content><note type="source"><p>Source Note: The provisions of this §401.12 adopted to be effective June 29, 2016, 41 TexReg 4650.</p></note></section><section identifier="/us/state/tx/tac/t43/p13/c401/sc/s401.13"><num value="401.13">§401.13</num><heading>Policies and Procedures</heading><content>The Tax Assessor-Collector may authorize other policies and procedures that are not inconsistent with these sections or other law and to the extent authorized by law.</content><note type="source"><p>Source Note: The provisions of this §401.13 adopted to be effective June 29, 2016, 41 TexReg 4650.</p></note></section></subchapter></chapter></part><part identifier="/us/state/tx/tac/t43/p14"><num value="14">PART 14</num><heading>TRAVIS COUNTY TAX ASSESSOR-COLLECTOR</heading><chapter identifier="/us/state/tx/tac/t43/p14/c425"><num value="425">CHAPTER 425</num><heading>REGULATION OF MOTOR VEHICLE TITLE SERVICES</heading><subchapter identifier="/us/state/tx/tac/t43/p14/c425/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t43/p14/c425/sc/s425.1"><num value="425.1">§425.1</num><heading>Rules Governing Title Service Licenses</heading><content>(a) All companies and individuals wishing to conduct title service business in Travis County as governed by Chapter 520 of the Transportation Code under subchapter E (the "Act") must be licensed by the County Tax Assessor-Collector. Runners for a full service deputy that has been approved by the Tax Assessor Collector and the Commissioners Court pursuant to Chapter 217 of the Texas Administrative Code are subject to these rules.(b) "Title service business" means processing motor vehicle title applications, motor vehicle registration renewal applications, motor vehicle mechanic's lien title applications, motor vehicle storage lien title applications, motor vehicle temporary registration permits, motor vehicle title application transfers occasioned by the death of the title holder, or notifications under Chapter 683 of the Texas Transportation Code or Chapter 70 of the Texas Property Code.(c) Individuals and companies wishing to complete an application to register as a motor vehicle title service company, or as a runner, must apply at the Travis County Tax Assessor-Collector's Administration location, currently located at 5425 Airport Blvd. Austin, Texas, using the forms provided by the County Tax Assessor-Collector. All applicants must present a valid government-issued photo identification card at the time they apply. Lack of such government-issued identification disqualifies an applicant from being licensed. The minimum age at which a person may apply for a license is 18.(d) Who Must Apply for a License. There are two categories of licenses that are required to do title service business: the Motor Vehicle Title Service License and the Title Service Runner License.(1) An organization that falls into the category of "motor vehicle title service" company must be licensed by the County Tax Assessor-Collector. "Motor vehicle title service" means any person who, for compensation, directly or indirectly assists other persons in obtaining title documents by submitting, transmitting or sending applications for title documents to the appropriate government agencies; and(2) A "motor vehicle title service runner" is an employee or licensed agent of a licensed motor vehicle title service company or a runner for a full service deputy. The motor vehicle title service runner has the authority to present motor vehicle title documents to the County Tax Assessor-Collector's office for processing. Runners must be authorized by a motor vehicle title service company or full service deputy and licensed by the County Tax Assessor-Collector. Runners may represent more than one motor vehicle title service company.(e) General Application Requirements. All individual applicants must provide a current finger-print based criminal history record check from the Texas Department of Public Safety. All applicants must meet the requirements set forth in the Act and any rules and regulations promulgated by the Texas Department of Motor Vehicles.(1) Additional Requirements for Motor Vehicle Title Service License.(A) Applicants shall also provide a "doing business as" (DBA) certificate, or articles of incorporation; and any additional information requested by the County Tax Assessor-Collector's Office to establish the business reputation and character of the applicant. Applicants must provide a physical address. No license will be issued to a company or individual whose address is a Post Office Box.(B) The operator of a motor vehicle title service company will provide the company name, as well as the names of all officers, directors, partners, and individuals who have an ownership interest in that company. The motor vehicle title service company shall assume the responsibility for the accuracy and validity of all documents presented to the County Tax Assessor-Collector under its name.(C) All persons with an ownership interest in a motor vehicle title service company are subject to the requirements of the Act and must be individually licensed under its terms and conditions.(D) A licensed motor vehicle title service company or full service deputy must authorize all individuals who will submit paperwork on its behalf. Individuals whose names are not on file as agents of a title service company or full service deputy will not be allowed to conduct any title service business on behalf of that company or deputy.(2) Additional Requirements for Title Service Runner License.(A) Runners must be identified and sponsored by a motor vehicle title service company, or a full service deputy, in order to conduct business on its behalf. Only full service deputies or persons that have been granted a motor vehicle title service license can authorize a runner. The required documents for any runner who is authorized as an agent of a title company must be on file with each service company for which the runner is an authorized agent.(B) Runners must fulfill all requirements set forth in the Act and any rules and regulation promulgated by the Texas Department of Motor Vehicles, as well as any additional requirements of the County Tax Assessor-Collector's Office to establish the business reputation and character of the applicant.(C) Any unlicensed individual observed conducting frequent motor vehicle title transactions on behalf of others, and who claims not to be receiving any compensation for such activities, shall be required to complete an affidavit stating that he or she is not receiving compensation for conducting motor vehicle title transactions. The affidavit shall be notarized and forwarded to the appropriate enforcement agencies by a deputy of the County Tax Assessor-Collector.(D) Licenses for runners of a full service deputy are only valid so long as the full service deputy is authorized to operate as a deputy in Travis County.(3) Process for License Approval, Renewal and Reinstatement.(A) Applicants for a license shall complete and submit the form(s) approved by the Tax Assessor Collector for the particular license and shall submit the necessary form(s), including all required documentation, to the designated person or location. All information shall be complete and accurate. Knowingly submitting false information in connection with an application may subject the applicant to criminal liability, in addition to suspension or revocation of the applicant's license.(B) Applications will be reviewed for compliance and appropriateness for a license by the Tax Assessor Collector's designee ("Designee").(C) After submission of a fully completed application, applicants will be contacted by mail, email or phone, typically within ten (10) working days of the recommendation of the Designee regarding the approval, renewal or reinstatement of a license. If all of the required information was not included or if the information was otherwise insufficient to make a determination, the Designee may recommend denial of the license or request additional information at his/her discretion.(D) Once an application has been recommended for approval by the Designee, it still must receive final approval by the Tax Assessor Collector to be valid. If approved, the applicant will receive notice and will be instructed to report to the office of the County Tax Assessor-Collector to pick up a Letter of Authorization ("License"). If the application is not approved, the applicant will receive a Notice of Intent to deny the application and may begin the Appeal Process. See Subsection (g) of this section below.(f) The Review Board.(1) The County Tax-Assessor-Collector shall appoint a three-member Review Board to review any appeal of a Notice of Intent to deny, suspend, revoke or reinstate a license. The Review Board shall consist of a deputy or employee from the County Tax Assessor-Collector's office who deals with motor vehicle registration; a member selected from law enforcement, and a community representative who may, but is not required to be active in the motor title service industry. Appointments will last two years and replacements will be selected on a staggered basis.(2) The Review Board shall meet as needed at a time and place determined by the County Tax Assessor-Collector.(3) A quorum of two members of the Review Board must be present to render a decision. No proxy votes will be allowed.(4) The County Tax Assessor-Collector shall appoint a member of the Review Board to chair meetings of the Review Board.(5) A majority vote of members present at a meeting of the Review Board shall determine the outcome of matters under consideration.(6) All decisions of the Review Board shall be subject to final review by the County Tax Assessor-Collector.(7) If a member is absent for three consecutive meetings, the County Tax Assessor-Collector may, in his or her discretion, remove the member and appoint a new member to serve the remainder of the term.(8) If a member resigns, the County Tax Assessor-Collector shall appoint a new member to serve the remainder of the term.(g) The Appeal Process.(1) The County Tax Assessor-Collector's Designee will send a letter by registered or certified mail at the address in the holder's application of any intended action to deny an application or to revoke or suspend a holder's License ("Notice of Intent"), stating the facts or conduct alleged to warrant the action.(2) A person who receives a Notice of Intent may submit a written request for appeal to the County Tax Assessor-Collector within 20 calendar days from the date of such notice, and must include a written response to the Notice of Intent, including any evidence, in the form of documents or sworn affidavit testimony, that would demonstrate that person's compliance with all applicable Texas statutes, agency regulations, and these Rules. If a request for appeal is not made in a timely manner, the holder's License shall be automatically denied, revoked, or suspended without further notice.(3) Upon receipt of a timely request for an appeal, the County Tax Assessor-Collector will request review by the Review Board. All evidence shall be submitted in writing in order to expedite the Appeal Process. The Designee will forward a copy of the application (if applicable), all information received from the applicant or license holder, any other information considered by the Designee and the Tax Assessor-Collector, and a copy of the Notice of Intent to the Review Board as the "Record" to be reviewed.(4) The Review Board will review the Record and make a recommendation to the County Tax Assessor-Collector stating whether the Review Board agrees or disagrees with the action taken.(5) The Chair of the Review Board may limit or discard evidence that he or she finds is not material or relevant or is unduly repetitious. The Review Board shall review the Record in making any factual decisions that support its recommendation and shall not conduct an independent investigation into the underlying facts. However, the Review Board may request additional information from the applicant or the Designee.(6) The Review Board may recommend other disciplinary action than the proposed adverse action.(7) The recommendation of the Review Board will be forwarded to the Tax Assessor- Collector for his/her final review and determination. The proposed adverse action will be stayed until such final determination is made.(8) Notice of the Tax Assessor-Collector's decision and the disposition of the appeal shall be sent to the license holder by certified or registered mail at the address contained in the holder's application or in the holder's request for an appeal.(h) License Reinstatement.(1) The Review Board will, to the extent possible, examine all license suspensions before the end of the suspension period. The Review Board will make a recommendation to the County Tax Assessor-Collector as to whether the individual or company should have the license reinstated.(2) The County Tax Assessor-Collector shall review the Board's recommendation and render a final decision.(3) A person whose license has been revoked may not apply for reinstatement or a new license before the first anniversary of the date of revocation.(i) Factors Considered for Denial, Suspension, or Revocation of Application for License, and for Renewal or Reinstatement of a License.(1) The County Tax Assessor-Collector or his/her Designee has the authority to review any complaints regarding a Motor Vehicle Title Service Company or Motor Vehicle Title Runner licensed by the Tax Assessor-Collector. Complaints should be submitted in writing to the County Tax Assessor-Collector's Office and include supporting factual information and/or documentation.(2) A license is not valid until an application receives final approval by the Tax Assessor-Collector. Under Section 520.059 of the Act, the County Tax Assessor-Collector may deny, suspend, revoke or reinstate a license at his or her discretion. Grounds to disqualify an individual from being licensed under these Rules may include, but are not limited to, the following:(A) Failure to meet all of the license requirements set forth in the Act and any rules and regulations promulgated by the Texas Department of Motor Vehicles and/or Texas Department of Transportation, or failure to provide information requested by the County Tax Assessor-Collector.(B) Submitting incomplete, false or misleading information on the application form or any supporting documents.(C) Conviction or deferred adjudication of a felony;(D) Conviction or deferred adjudication of a crime of moral turpitude for which the completion date of the applicant's sentence is less than five years from the date of the application.(E) Any criminal history or other information that would call into question the business reputation or character of the applicant in the Tax Assessor-Collector's discretion.(F) Any violation of the Act, these Rules, or the administrative procedures promulgated by the County Tax Assessor-Collector, the Texas Department of Motor Vehicles or the Texas Department of Transportation, including, but not limited to:(i) Failure to maintain records under Section 520.057 of the Transportation Code; or(ii) Failure to permit inspection of records as required by Section 520.028 of the Transportation Code.(G) Previous suspensions or revocations of the applicant's Motor Vehicle Title Service License or Title Service Runner License by any County Tax Assessor-Collector's office.(H) Previous offenses under Section 520.061 of the Act, failure to timely pay any fines or penalties for such offenses, or previous injunctions under Section 520.062 of the Act.(I) Submitting vehicle document packets that are found to contain false information and the false information is determined to have been knowingly or intentionally submitted by the license holder.(J) A Title Service Runner is subject to License suspension or revocation if the Runner presented a title packet to the County Tax Assessor-Collector that was not authorized by a full service deputy or licensed Motor Vehicle Title Service company; altered or forged the original paperwork prepared for and signed by the full service deputy or Motor Vehicle Title Service company; or presented documents bearing an unauthorized signature.(K) The County Tax Assessor-Collector has the right to summarily revoke any license upon notification of the license holder's conviction or deferred adjudication of a felony, a crime of moral turpitude, or an offense under Section 520.061 of the Act.(L) The County Tax Assessor-Collector may suspend or revoke a Motor Vehicle Title Service Company's License for acts in violation of these rules or other law committed by a Title Service Runner employed or contracted by such company, if the County Tax Assessor-Collector also suspends or revokes the license of the at-fault Title Service Runner.(M) The County Tax Assessor-Collector may take disciplinary action appropriate to the circumstances. For example and without limitation, a 90-day suspension, a 180-day suspension, or revocation.(j) Annual Renewal; Fees. Licenses must be renewed annually and will automatically expire on the anniversary of the date of issuance. Applicants for renewal or reinstatement must meet all original requirements. Non-refundable annual fees for licenses shall be as follows:(1) The fee for a Motor Vehicle Title Service Company License shall be $350.00 for the first year and $300.00 per year each year thereafter.(2) The annual fee for a Title Service Runner License shall be $170.00 for the first year and $150.00 per year each year thereafter.(3) The fee for replacing a lost license shall be $10.00.(4) If a previously licensed applicant's license has been expired for 90 days or less, the applicant must pay 1.5 times the renewal fee set forth above. If a license has been expired for more than 90 days but less than one year, the applicant must pay 2 times the renewal fee set forth above. If any license has been expired for more than a year, it may not be renewed; the applicant must obtain a new license.(5) If a person was licensed, but moved to another state, and has been doing business in the other state for the two years preceding the application, that person may renew an expired license and must pay 2 times the renewal fee set forth above.(k) Policies for Conducting Transactions.(1) A valid copy of the current License issued by the Tax Assessor-Collector must be presented to the County Tax Assessor-Collector at the time of each transaction. A Tax Assessor-Collector vehicle transaction form must accompany all motor vehicle title service transactions. The motor vehicle title service company officer or operator shall print and sign his or her name in the space provided, and fill in his or her company authorization number in the space provided.(2) The individual preparing the document will print and sign his or her name in the space provided. That person will also fill in the identifier from his or her Texas driver's license number or valid government-issued photo identification. Photo identification must be available for each transaction.(3) All runners processing documents at the office of the County Tax Assessor- Collector shall print and sign their names in the spaces provided. Runners shall also fill in their County Tax Assessor-Collector authorization number in the appropriate block.(4) In the space labeled Description of Vehicles, the title service company must list and identify all transactions as transfer of ownership, renewal or replacement of license plates or registration sticker. Each vehicle make, model, year and vehicle identification number must be printed legibly. Only the vehicles authorized by a licensed motor vehicle title service company can be included on the form. The motor vehicle title service company is responsible for the accuracy and validity of the information for each vehicle listed. Only vehicles authorized and listed by the licensed motor vehicle title service company will be processed.(5) After the final vehicle transaction on each transaction form is completed, a copy of the transaction form will be made and given to the runner.(l) Record Keeping. Under Sections 520.057 & 520.058 of the Act, all Title Companies must adhere to record keeping and record availability standards.(m) Amendment Process. The County Tax Assessor-Collector reserves the right to amend these rules as deemed necessary.</content><note type="source"><p>Source Note: The provisions of this §425.1 adopted to be effective February 14, 2019, 44 TexReg 590.</p></note></section></subchapter></chapter></part><part identifier="/us/state/tx/tac/t43/p15"><num value="15">PART 15</num><heading>DENTON COUNTY TAX-ASSESSOR COLLECTOR</heading><chapter identifier="/us/state/tx/tac/t43/p15/c430"><num value="430">CHAPTER 430</num><heading>MOTOR VEHICLE TITLE SERVICES</heading><subchapter identifier="/us/state/tx/tac/t43/p15/c430/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t43/p15/c430/sc/s430.1"><num value="430.1">§430.1</num><heading>Definitions</heading><content>(a) The term "Applicant Business" means a business entity for which a motor vehicle title service license is sought by application, in accordance with these rules, of its partners, officers, or directors.(b) "Application." Except where otherwise expressly stated herein, the term "application" includes all documentation submitted with a motor vehicle title service application form (TLSA Form) or motor vehicle title service runner application (TSRA Form) .(c) The term "DCTAC" means the Office of the Denton County Tax Assessor-Collector, except that the term "DCTAC Officeholder" means the person who holds the Office of Denton County Tax Assessor-Collector. The term "DCTAC Officeholder" includes a person who holds the Office by election or, in the event of a vacancy, by appointment.(d) The terms "licensed MVTS," "licensed motor vehicle title service" and "licensed title service" each mean a motor vehicle title service that holds a current and valid license, issued by the DCTAC under these Rules, to act as a motor vehicle title service in Denton County.(e) The terms "licensed MVTSR," "licensed runner," and "licensed title service runner" each mean a motor vehicle title service runner that holds a current and valid license, issued by the DCTAC, to act as a title service runner for a licensed MVTS.(f) The term "motor vehicle" has the meaning assigned by Texas Transportation Code §501.002.(g) The term "motor vehicle title application" in §430.13(a)(7), (8) and (10) of this chapter (relating to Denial or Revocation of License) herein includes all documentation submitted with a motor vehicle title application.(h) The term "motor vehicle title service" or "MVTS" means any person or entity that for compensation directly or indirectly assists other persons in obtaining title documents, in either written or electronic form, by submitting, transmitting, or sending applications for title documents to the appropriate government agencies.(i) The term "title documents" means motor vehicle title applications, motor vehicle registration renewal applications, motor vehicle mechanic's lien title applications, motor vehicle storage lien title applications, motor vehicle temporary registration permits, motor vehicle title application transfers occasioned by the death of the title holder, motor vehicle inquiries, license plate and/or sticker replacement or any other motor vehicle related transaction.(j) The terms "title service runner," "runner" and or "MVTSR" each means any person employed by a licensed motor vehicle title service to submit or present title documents to the DCTAC on behalf of that licensed motor vehicle title service.</content><note type="source"><p>Source Note: The provisions of this §430.1 adopted to be effective June 26, 2019, 44 TexReg 3130; amended to be effective July 26, 2023, 48 TexReg 3997.</p></note></section><section identifier="/us/state/tx/tac/t43/p15/c430/sc/s430.2"><num value="430.2">§430.2</num><heading>License Required</heading><content>(a) A person or business entity may not act as a motor vehicle title service in Denton County unless the person or entity holds a motor vehicle title service license issued by the DCTAC under these Rules.(b) A person may not act as a title service runner for a motor vehicle title service unless that person holds a motor vehicle title service license issued by the DCTAC under these Rules. A person may hold only one MVTS runner license at a time.(c) A person commits an offense if the person violates a provision of Title 7, Subtitle A, Chapter 520, Subchapter C of the Texas Transportation Code or a rule adopted by the DCTAC under Subchapter E, §§520.051 - 520.063 of the Texas Transportation Code. Such an offense is a Class A misdemeanor.</content><note type="source"><p>Source Note: The provisions of this §430.2 adopted to be effective June 26, 2019, 44 TexReg 3130; amended to be effective July 26, 2023, 48 TexReg 3997.</p></note></section><section identifier="/us/state/tx/tac/t43/p15/c430/sc/s430.3"><num value="430.3">§430.3</num><heading>Eligible Applicants</heading><content>A person may not apply for a motor vehicle title service license or motor vehicle title service runner license unless the person is:(1) at least 18 years of age on the date the application is submitted; and(2) authorized to handle financial transactions for himself/herself or another; and(3) if the application seeks a motor vehicle title service license for a business entity, authorized to handle financial transactions for that business entity.</content><note type="source"><p>Source Note: The provisions of this §430.3 adopted to be effective June 26, 2019, 44 TexReg 3130; amended to be effective July 26, 2023, 48 TexReg 3997.</p></note></section><section identifier="/us/state/tx/tac/t43/p15/c430/sc/s430.4"><num value="430.4">§430.4</num><heading>Criminal Background Check</heading><content>Each applicant for a license must submit to a criminal background check.</content><note type="source"><p>Source Note: The provisions of this §430.4 adopted to be effective June 26, 2019, 44 TexReg 3130; amended to be effective July 26, 2023, 48 TexReg 3997.</p></note></section><section identifier="/us/state/tx/tac/t43/p15/c430/sc/s430.5"><num value="430.5">§430.5</num><heading>Submission of Application</heading><content>Each license application must be submitted by the applicant, in person, at any DCTAC location during business hours. The application must be complete and include all required documentation. To submit the completed application, applicant must, at the time of the submission:(1) presents a valid Texas driver's license and a valid Social Security Card or, if applicable, a U.S.-issued alien identification card issued by the Department of Homeland Security, and permits a copy of both to be made for DCTAC records; and(2) pays the non-refundable application fee.</content><note type="source"><p>Source Note: The provisions of this §430.5 adopted to be effective June 26, 2019, 44 TexReg 3130; amended to be effective July 26, 2023, 48 TexReg 3997.</p></note></section><section identifier="/us/state/tx/tac/t43/p15/c430/sc/s430.6"><num value="430.6">§430.6</num><heading>Completion of Motor Vehicle Title Service License Application</heading><content>(a) A motor vehicle title service ("MVTS") license application will not be considered complete under §430.5 of this chapter (relating to Submission of Application) unless all applicable information identified on the title service license application form ("TSLA Form") has been provided, all required documentation has been attached, and the applicant identified on the TSLA Form has executed the Applicant Affidavit section of the Form as described in subsection (c) of this section. If Applicant Business is a partnership, each partner must submit a separate application. If Applicant Business is a corporation, each officer and director must submit a separate application and identify the state of incorporation on that application.(b) The following documents must be submitted with and attached to the signed and completed TSLA Form:(1) A copy of applicant's valid Texas driver's license and valid Social Security Card, or if applicable, a U.S.-issued alien identification card by the Department of Homeland Security;(2) an original or certified copy of:(A) if Applicant Business is a DBA, each applicable Assumed Name Certificate.(B) if Applicant Business is a corporation, the applicable Articles of Incorporation.(C) if Applicant Business is a partnership, the applicable Partnership Agreement.(3) all forms required by the DCTAC, signed and completed as required by the DCTAC.(c) Each applicant shall provide all information indicated on the TSLA Form, which information shall include but is not limited to:(1) Applicant name, address, telephone number, social security number, date of birth, Texas Driver's license number, citizenship status, and what position the applicant holds in the Applicant Business (i.e. owner, principal, director, officer, partner);(2) Applicant Business name, physical address, mailing address, and telephone number(s);(3) identification of Applicant Business type (i.e., DBA, Corporation or Partnership);(4) name under which Service will conduct business (if different than Applicant Business name);(5) the physical address(es) (including any applicable suite number(s)) of each location/office from which the service will conduct business (a P.O. Box will not be accepted) , a corresponding photo, with address numbers clearly visible, of each location/building where business is to be conducted, and a copy of the applicant's current lease for each such location/office;(6) the name(s), as applicable, of:(A) each individual with any ownership interest in the Applicant Business; and(B) each principal, officer or director of Applicant Business.(7) whether the applicant or Applicant Business has previously applied for an MVTS license (or permit), the result of the previous application, and whether the applicant or Applicant Business has ever held an MVTS license (or permit) that was revoked or suspended;(8) Applicant Business federal tax identification number; and(9) Applicant Business state sales tax number.(d) Each applicant shall execute the Applicant Affidavit Section of the TSLA Form, attesting to the following:(1) that information provided in and with the application is true and accurate; and(2) that applicant freely grants the DCTAC and local law enforcement agencies permission to conduct a criminal background investigation on applicant and/or Applicant Business.</content><note type="source"><p>Source Note: The provisions of this §430.6 adopted to be effective June 26, 2019, 44 TexReg 3130; amended to be effective July 26, 2023, 48 TexReg 3997.</p></note></section><section identifier="/us/state/tx/tac/t43/p15/c430/sc/s430.7"><num value="430.7">§430.7</num><heading>Completion of Title Service Runner License Application</heading><content>(a) A motor vehicle title service runner application will not be considered complete under §430.5 of this chapter (relating to Submission of Application) unless all applicable information identified on the title service runner application form ("TSRA Form") has been provided, all required documentation has been attached, and the applicant identified on the TSRA Form has executed the Applicant Affidavit section of the TSRA Form as described in subsection (c) of this section. The following documents must be submitted with and attached to the signed and completed TSRA Form:(1) a copy of applicant's valid Texas driver's license and valid Social Security Card, or if applicable, a U.S.-issued alien identification card by the Department of Homeland Security;(2) all forms required by the DCTAC, signed and completed as required by the DCTAC; and(3) sworn affidavits of each owner, partner, officer or director of the licensed title service identified on the TSRA Form, stating that the licensed title service (which must be identified specifically in the statement by name and License No.) employs applicant and authorizes him/her to submit or present title documents to the DCTAC on its behalf.(b) Applicants shall provide all information indicated on the TSRA Form, which information shall include but is not limited to:(1) the name of the licensed motor vehicle title service for which the applicant seeks a license to submit or present title documents, the MVTS License Number, and date of issue;(2) the name, office address and office phone of the title service owner, officer or employee who will supervise applicant;(3) Applicant name, address, telephone number, social security number, date of birth, Texas Driver's license number, and citizenship status;(4) whether the applicant has previously applied for a MVTS or MVTSR license (or permit), the result of the previous application(s), and whether the applicant or applicant business has ever held an MVTS or MVTSR license (or permit) that was revoked or suspended; and(5) a sworn affidavit stating that the applicant is employed by the licensed motor vehicle title service identified on the application and authorized by that motor vehicle title service to submit or present title documents to the DCTAC.(c) Each applicant shall execute the Applicant Affidavit section of the TSRA Form, attesting to the following:(1) that information provided in and with the application is true and accurate;(2) that applicant is employed by the title service identified in Section 1 of the application to submit or present title documents to the DCTAC under Chapter 520 of the Texas Transportation Code; and(3) that applicant freely grants the DCTAC and local law enforcement agencies permission to conduct a criminal background investigation on applicant and/or Applicant's Business.</content><note type="source"><p>Source Note: The provisions of this §430.7 adopted to be effective June 26, 2019, 44 TexReg 3130; amended to be effective July 26, 2023, 48 TexReg 3997.</p></note></section><section identifier="/us/state/tx/tac/t43/p15/c430/sc/s430.8"><num value="430.8">§430.8</num><heading>Application Review/Applicant Background Check/Applicant Interview</heading><content>(a) After submission of a completed application, an initial review of the application will be conducted. If information known to or obtained by the DCTA conflicts or appears to conflict with information supplied in the application, the applicant may be asked to provide additional clarifying or verifying information. An on-site visit to any or all of the business locations listed on an applicant's TSLA Form (§430.6(c)(5) (relating to Completion of Motor Vehicle Title Service License Application)) may be performed at the option of DCTAC. Upon notification by DCTAC, applicant shall, in coordination with the DCTAC, schedule for each location listed in the DCTAC notification an on-site visit at which the applicant will be present. Failure or refusal by applicant to schedule and carry out any such requested on-site visit shall be grounds for dismissal of the application.(b) Following initial application review under subsection (a) of this section, the applicant background check will be conducted. Upon completion of this process, interviews for eligible applicants will be scheduled according to DCTAC office needs/staff availability. Applicants are responsible for reserving open interview slots, which will be assigned on a first-come, first-served basis. No license may issue unless each person required to apply for the requested license has completed the interview process. During the interview process, applicant may be asked to provide additional information and/or request additional documentation for the purpose of establishing applicant's business reputation and character.(c) Applicants will be notified of the outcome of an application within 30 days of the date the interview process is completed. Such notice will be sent by certified mail to runner license applicants at the home address listed on the application and to title service license applicants at the business mailing address listed on the application.</content><note type="source"><p>Source Note: The provisions of this §430.8 adopted to be effective June 26, 2019, 44 TexReg 3130; amended to be effective July 26, 2023, 48 TexReg 3997.</p></note></section><section identifier="/us/state/tx/tac/t43/p15/c430/sc/s430.9"><num value="430.9">§430.9</num><heading>License</heading><content>(a) License No./Effective Date. Each license granted will be assigned a number. The effective date of issuance is the date upon which notice is sent under §430.8(c) of this chapter (relating to Application Review/Applicant Background Check/Applicant Interview).(b) Original. Each licensee shall be issued one original license.(c) A title service shall process all work at the DCTAC Main office for the first forty-five (45) days of the license period, after which the title service may process work at any DCTAC location. A title service whose license is renewed under §430.12(a) - (d) of this chapter (relating to License Renewal) may, upon the commencement of the renewal period, process work at any DCTAC location.</content><note type="source"><p>Source Note: The provisions of this §430.9 adopted to be effective June 26, 2019, 44 TexReg 3130; amended to be effective July 26, 2023, 48 TexReg 3997.</p></note></section><section identifier="/us/state/tx/tac/t43/p15/c430/sc/s430.10"><num value="430.10">§430.10</num><heading>Records/Reporting</heading><content>(a) MVTS(1) Each licensed MVTS must inform DCTAC of a change to its primary physical and/or mailing address by submitting a written address change request form to the DCTAC. DCTAC shall update the address information upon receipt of such request.(2) A licensed MVTS shall report a change to its principals, partners, owners, officers, or directors as provided in §430.14(b)(1) of this chapter (relating to Suspension).(3) Each licensed MVTS must keep on file at its principal place of business:(A) the original MVTS license and application (including all submitted documentation); and(B) a copy of each license issued to a MVTSR runner for that MVTS, and of the application (including all submitted documentation) submitted by each such licensed MVTSR.(b) Runner.(1) In order to submit or present documents on behalf of an MVTS, a valid runner license must be presented. A licensed runner may submit or present title documents to the DCTAC only on behalf of the licensed motor vehicle title service for which he/she is a licensed runner.(2) Each licensed runner must inform DCTAC if his/her home address has changed by submitting a written home address change request to DCTAC. Upon receipt of such request, DCTAC will update the runner's home address information.</content><note type="source"><p>Source Note: The provisions of this §430.10 adopted to be effective June 26, 2019, 44 TexReg 3130; amended to be effective July 26, 2023, 48 TexReg 3997.</p></note></section><section identifier="/us/state/tx/tac/t43/p15/c430/sc/s430.11"><num value="430.11">§430.11</num><heading>License Fees</heading><content>(a) All license fees must be paid by business check on account in the applying (title service license) or employing (title service runner license) title service's name, unless the DCTAC in its sole discretion agrees to accept other forms of payment. Other forms of payment will not be considered accepted except as authorized in writing by the DCTAC.(b) The fee for a motor vehicle title service license shall be $200 for the initial application and $200 for each annual renewal.(c) The fee for a title service runner license shall be $50 for the initial application and $50 for each annual renewal.(d) The fee for replacement of a license issued under §430.9(b) of this chapter (relating to License), lost title service license or title service runner license shall be $10.</content><note type="source"><p>Source Note: The provisions of this §430.11 adopted to be effective June 26, 2019, 44 TexReg 3130; amended to be effective July 26, 2023, 48 TexReg 3997.</p></note></section><section identifier="/us/state/tx/tac/t43/p15/c430/sc/s430.12"><num value="430.12">§430.12</num><heading>License Renewal</heading><content>(a) A license issued under these rules expires on the first anniversary of the date of issuance and may be renewed annually on or before the expiration date on payment of the required renewal fee.(b) A person who is otherwise eligible to renew a license may renew an unexpired license by paying to the DCTAC before the expiration date of the license the required renewal fee. A person whose license has expired may not engage in activities that require a license until the license has been renewed.(c) If a license has been expired for 90 days or less, the person/entity (as applicable), may renew the license by paying to the DCTAC 1-1/2 times the required renewal fee.(d) If a license has been expired for longer than 90 days but less than one year, the person/entity (as applicable), may renew the license by paying to the DCTAC two times the required renewal fee.(e) If a license has been expired for one year or longer, the person/entity (as applicable) may not renew the license. The person/entity may obtain a new license by complying with the requirements and procedures for obtaining an original license.(f) Notwithstanding subsection (e) of this section, if a person/entity (as applicable) was licensed in this state, moved to another state, and has been doing business in the other state for the two years preceding application, the person/entity may renew an expired license. The person must pay to the DCTAC a fee that is equal to two times the required renewal fee for the license.(g) Before the 30th day preceding the date on which a license expires, the DCTAC shall notify the license holder of the impending expiration. The notice must be in writing and sent to the license holder's last known address according to the records of the DCTAC.</content><note type="source"><p>Source Note: The provisions of this §430.12 adopted to be effective June 26, 2019, 44 TexReg 3130; amended to be effective July 26, 2023, 48 TexReg 3997.</p></note></section><section identifier="/us/state/tx/tac/t43/p15/c430/sc/s430.13"><num value="430.13">§430.13</num><heading>Denial or Revocation of License</heading><content>(a) Grounds for the denial (after completed application submission) or revocation of a license include, but are not limited to:(1) past or present submission by licensee or any applicant for the license, of a license application or related document to the DCTAC that contains false information or that by its submission constitutes a misrepresentation of fact;(2) the licensee or any applicant for the license has been convicted of any felony, any crime of moral turpitude, or deceptive business practice for which the sentence completion date is fewer than five years from the application date;(3) licensee or any applicant for the license has been criminally or civilly sanctioned for the unauthorized practice of law by any government or quasi-government body with jurisdiction to do so;(4) One or more than one of the affiants described in §430.7(a)(3) of this chapter (relating to Completion of Title Service Runner License Application) has withdrawn his/her affidavit or otherwise informed DCTAC that applicant is not employed and authorized to submit title documents on behalf of the title service identified in the application;(5) disruptive, coercive, or aggressive behavior by a licensee or any applicant for the license at any DCTAC location that in the opinion of the DCTAC creates a security concern;(6) any dishonest, fraudulent, or criminal activity by a licensee or any applicant for the license;(7) failure to pay fines and/or fees identified in a suspension notice under §430.14(a) of this chapter (relating to Suspension) within 30 days of the suspension's effective date;(8) submission of a motor vehicle title application to the DCTAC that contains false information that the submitting MVTS knew or should have known was false;(9) runner presentation of motor vehicle title application documents that were not prepared and delivered to the runner for submission by a licensed title service;(10) any violation of these Rules, Chapter 520, Subchapter E of the Texas Transportation Code, Title 43 TAC Chapter 217, Subchapter A, or any other applicable law by a licensed MVTS or licensed MVTSR;(11) runner presentation of a motor vehicle title application prepared and delivered to runner for submission by a licensed MVTS, if runner has, removed, added or otherwise altered the contents of the application as delivered by the MVTS to the runner for submission.(b) Upon its determination that a license should be denied or revoked, DCTAC shall send notice of denial/revocation to the applicant(s)/licensee by certified mail. Notice of any license denial shall be sent to each applicant at the home address listed on his/her application form. Notice of a runner license revocation shall be sent to the most recent home address on file. Notice of a title service license revocation shall be sent to the attention of "all" MVTS partners, owners, officers, directors, or principals (as applicable) at the most recent primary physical business address on file for licensee. The notice shall identify the grounds that warrant the determination.(c) Revocation - effective date. Revocation shall be effective upon the date notice described in subsection (b) of this section is sent.(d) A licensee whose license is denied or revoked may not apply for any license before the first anniversary of the date of the revocation. No applicant for a license that has been denied or revoked may apply for any license before the first anniversary of the date of revocation.</content><note type="source"><p>Source Note: The provisions of this §430.13 adopted to be effective June 26, 2019, 44 TexReg 3130; amended to be effective July 26, 2023, 48 TexReg 3997.</p></note></section><section identifier="/us/state/tx/tac/t43/p15/c430/sc/s430.14"><num value="430.14">§430.14</num><heading>Suspension</heading><content>(a) Suspension for unpaid fines/fees. The DCTAC may suspend a license if the licensee or any applicant for the license is delinquent in the payment of property taxes or criminal fines or fees owed to Denton County.(1) Suspension notice. DCTAC shall send notice of suspension, which notice shall include a statement identifying the unpaid fines/fees, by certified mail. Notice of suspension of a Runner license under this section shall be sent to the most recent home address on file for licensee. Notice of a Title Service license suspension under this section shall be sent to the attention of "all" MVTS partners, owners, officers, directors, or principals (as applicable) at the most recent primary physical business address on file for licensee. Suspension shall become effective upon the date notice is sent. Failure to pay the fines/fees identified in the suspension notice within 30 days of the suspension date shall result in revocation of the license.(2) A license suspended under subsection (a) of this section will be reinstated if, within 30 days of the suspension's effective date, licensee provides DCTAC with notice that includes a certified copy of the Denton County invoice showing that the fines/fees identified in the suspension notice have been paid in full. Licensee may deliver such notice in writing by certified mail, return receipt requested, in which case notice will be considered received by DCTAC on the date the return is signed. Licensee may deliver such notice in person by presenting a certified copy of the paid invoice at a DCTAC location, in which case notice shall be considered received when the DCTAC issues licensee a copy of the file-stamped invoice submitted. If DCTAC becomes aware that, within 30 days of suspension, the fee/fines identified in the suspension notice were paid in full, the DCTAC is not required but may elect to reinstate the suspended license without notice from licensee.(b) Automatic Suspension.(1) A title service license shall be automatically suspended upon the addition or replacement of any of the title service's principals, partners, officers, owners or directors. A title service shall immediately deliver written notice of any such addition or replacement and the license issued under §430.12(b) of this chapter (relating to License Renewal) to DCTAC by certified mail, return receipt requested.(2) Within ten (10) days of becoming a new principal, partner, owner, officer or director in a title service described in paragraph (1) of this subsection, a person may submit an MVTS license application that meets the criteria set forth in §430.5 of this chapter (relating to Submission of Application) and §430.6 of this chapter (relating to Completion of Vehicle Title Service License Application). If the application is granted following completion of the process set forth in §430.8 of this chapter (relating to Application Review/Applicant Background Check/Applicant Interview), the license shall become effective again on the date notice is sent under §430.8(c)(2) of this chapter. In this event, the license shall expire on the anniversary or its original effective date.(3) If the completed application of a prospective principal, partner, owner, officer or director in a licensed MVTS is received, reviewed and approved in accordance with §§430.5, 430.6, and 430.8 of this chapter before the prospective position is actually assumed, the license will not become ineffective under paragraph (1) of this subsection when the applicant assumes that position.</content><note type="source"><p>Source Note: The provisions of this §430.14 adopted to be effective June 26, 2019, 44 TexReg 3130; amended to be effective July 26, 2023, 48 TexReg 3997.</p></note></section><section identifier="/us/state/tx/tac/t43/p15/c430/sc/s430.15"><num value="430.15">§430.15</num><heading>Appeals</heading><content>(a) An applicant/licensee may appeal the denial/revocation of a license by filing a written appeal request with the DCTAC within 30 days of the date notice is sent under §430.13(b) of this chapter (relating to Denial or Revocation of License). Any information/documentation in support of such appeal must be submitted with the appeal request.(b) The DCTAC Officeholder shall appoint a Review Board consisting of five members. At least one member of the Review Board shall be a law enforcement officer. The DCTAC Officeholder may appoint one or more DCTAC employees to serve on the Board. Provided at least one law enforcement officer is in attendance, appeals shall be reviewed at a meeting of at least three members of the Board. Such meetings shall be held periodically as determined by the DCTAC.(c) Timely filed appeals will be scheduled for review at the next Review Board meeting, which meeting shall take place no less than sixty (60) days following the filing of the appeal. An applicant/licensee whose appeal is under review may attend the meeting and, at the Board's discretion, provide testimony in support of the appeal. The Board also has discretion to consider documentation not timely provided under subsection (a) of this section.(d) Recommendation. The law enforcement officer in attendance shall preside over the meeting and determine when each appeal has been sufficiently considered, discussed and reviewed by the members in attendance. Following such determination, each member in attendance shall state and briefly describe the reasons for his/her opinion as to whether the action appealed should be sustained. Thereafter, the presiding law enforcement officer shall independently make a written recommendation to the DCTAC Officeholder. The written recommendation shall be signed by the presiding officer and shall identify which, if any, of the other members in attendance did not agree with it.(e) Within (15) days of receiving the presiding officer's written recommendation, the DCTAC Officeholder shall make a final determination on the appeal. The DCTAC Officeholder shall consider the presiding officer's recommendation before making the final determination.(f) The DCTAC shall send notice of its final determination to the applicant(s)/licensee by certified mail as follows:(1) License denial - to each applicant at the home address listed on his/her application form.(2) Runner License revocation - to the most recent home address on file.(3) Title Service License revocation - to the attention of all partners, owners, officers, directors, or principals (as applicable) at the most recent primary physical business address on file.</content><note type="source"><p>Source Note: The provisions of this §430.15 adopted to be effective June 26, 2019, 44 TexReg 3130; amended to be effective July 26, 2023, 48 TexReg 3997.</p></note></section><section identifier="/us/state/tx/tac/t43/p15/c430/sc/s430.16"><num value="430.16">§430.16</num><heading>Amendment of Rules</heading><content>The DCTAC Officeholder may amend these rules in his/her sole discretion and as deemed necessary at any time.</content><note type="source"><p>Source Note: The provisions of this §430.16 adopted to be effective June 26, 2019, 44 TexReg 3130; amended to be effective July 26, 2023, 48 TexReg 3997.</p></note></section></subchapter></chapter></part><part identifier="/us/state/tx/tac/t43/p16"><num value="16">PART 16</num><heading>WILLIAMSON COUNTY TAX ASSESSOR-COLLECTOR</heading><chapter identifier="/us/state/tx/tac/t43/p16/c435"><num value="435">CHAPTER 435</num><heading>MOTOR VEHICLE TITLE SERVICES</heading><subchapter identifier="/us/state/tx/tac/t43/p16/c435/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t43/p16/c435/sc/s435.1"><num value="435.1">§435.1</num><heading>Definitions</heading><content>(a) "Application." Except where otherwise expressly stated, the term "Application" includes all documentation submitted with a Motor Vehicle Title Service Application Form or Motor Vehicle Title Service Runner Application Form.(b) "Motor vehicle" has the meaning assigned by Texas Transportation Code §501.002.(c) "Motor vehicle title service" or "MVTS" means any person or entity that for compensation directly or indirectly assists other persons in obtaining title documents, in either written or electronic form, by submitting, transmitting, or sending applications for title documents to the appropriate government agencies.(d) "Title documents" means motor vehicle title applications, motor vehicle registration renewal applications, motor vehicle mechanic's lien title applications, motor vehicle storage lien title applications, motor vehicle temporary registration permits, motor vehicle title application transfers occasioned by the death of the title holder, motor vehicle inquiries, license plate and/or sticker replacement or any other motor vehicle related transaction.(e) "Title service runner," "Runner" or "MVTSR" means any person employed by a licensed motor vehicle title service to submit or present title documents to the Williamson County Tax Assessor-Collector on behalf of that licensed motor vehicle title service.</content><note type="source"><p>Source Note: The provisions of this §435.1 adopted to be effective May 5, 2020, 45 TexReg 2891.</p></note></section><section identifier="/us/state/tx/tac/t43/p16/c435/sc/s435.2"><num value="435.2">§435.2</num><heading>License Required</heading><content>(a) License No./Effective Date. Each license granted will be assigned a number. The effective date of issuance is the date upon which notice is sent under §435.8(c) of this chapter (relating to Application Review/Applicant Background Check/Applicant Interview).(b) Original. Each licensee shall be issued one original license.(c) A title service shall process all work at the Williamson County Main St. office for the first ninety days of the license period, after which the title service may process work at any Williamson County Tax Assessor-Collector location. A title service whose license is renewed under §435.12(a) - (d) of this chapter (relating to License Renewal) may, upon the commencement of the renewal period, process work at any Williamson County Tax Assessor-Collector location.</content><note type="source"><p>Source Note: The provisions of this §435.2 adopted to be effective May 5, 2020, 45 TexReg 2891.</p></note></section><section identifier="/us/state/tx/tac/t43/p16/c435/sc/s435.3"><num value="435.3">§435.3</num><heading>Eligible Applicants</heading><content>A person may not apply for a Motor Vehicle Title Service License or Motor Vehicle Title Service Runner License unless the person is:(1) at least 18 years of age on the date the application is submitted; and(2) authorized to handle financial transactions whether representing himself/herself or another.</content><note type="source"><p>Source Note: The provisions of this §435.3 adopted to be effective May 5, 2020, 45 TexReg 2891.</p></note></section><section identifier="/us/state/tx/tac/t43/p16/c435/sc/s435.4"><num value="435.4">§435.4</num><heading>Criminal Background Check</heading><content>Each Applicant for a license must submit to a criminal background check.</content><note type="source"><p>Source Note: The provisions of this §435.4 adopted to be effective May 5, 2020, 45 TexReg 2891.</p></note></section><section identifier="/us/state/tx/tac/t43/p16/c435/sc/s435.5"><num value="435.5">§435.5</num><heading>Submission of Application</heading><content>Each Applicant must submit his/her completed application form, including all required documentation, in person to the Tax Assessor-Collector or the Tax Assessor-Collector's designated representative. The Tax Assessor-Collector or the Tax Assessor-Collector's designated representative will accept the completed Application provided Applicant:(1) presents a valid Texas driver's license and a valid Social Security Card or, if applicable, a U.S.-issued alien identification card issued by the Department of Homeland Security, and permits the Tax Assessor-Collector or Tax Assessor-Collector's designated representative to make a copy of both; and(2) pays the Application fee.</content><note type="source"><p>Source Note: The provisions of this §435.5 adopted to be effective May 5, 2020, 45 TexReg 2891.</p></note></section><section identifier="/us/state/tx/tac/t43/p16/c435/sc/s435.6"><num value="435.6">§435.6</num><heading>Completion of Motor Vehicle Title Service Application</heading><content>(a) A Motor Vehicle Title Service ("MVTS") License Application will not be considered complete under §435.5 of this chapter (relating to Submission of Application) unless all applicable information identified on the Title Service License Application form ("TSLA Form") has been provided, all required documentation has been attached, and the Applicant identified on the TSLA Form has executed the Applicant Affidavit section of the Form as described in subsection (c) of this section. If Applicant Business is a partnership, each partner must submit a separate application. If Applicant Business is a corporation, each officer and director must submit a separate application and identify the state of incorporation on that application.(b) The following documents must be submitted with and attached to the signed and completed TSLA Form:(1) a copy of Applicant's valid Texas driver's license and valid Social Security Card, or if applicable, a U.S.-issued alien identification card by the Department of Homeland Security;(2) an original or certified copy of:(A) if Applicant Business is a DBA, each applicable Assumed Name Certificate;(B) if Applicant Business is a corporation, the applicable Articles of Incorporation; or(C) if Applicant Business is a partnership, the applicable Partnership Agreement; and(3) all forms required by the Williamson County Tax Assessor-Collector, signed and completed as required by the Williamson County Tax Assessor-Collector.(c) Each Applicant shall provide all information indicated on the TSLA Form, which information shall include but is not limited to:(1) Applicant name, address, telephone number, social security number, date of birth, Texas Driver's license number, citizenship status, and what position the Applicant holds in the Applicant Business (i.e., owner, principal, director, officer, partner);(2) Applicant Business name, physical address, mailing address, and telephone number(s);(3) identification of Applicant Business type (i.e., DBA, Corporation or Partnership);(4) name under which Service will conduct business (if different than Applicant Business name);(5) the physical address(es) (including any applicable suite number(s)) of each location/office from which the Service will conduct business (a P.O. Box will not be accepted) and a corresponding photo, with address numbers clearly visible, of each location/building where business is to be conducted;(6) the name(s), as applicable, of:(A) each individual with any ownership interest in the Applicant Business; and(B) each principal, officer or director of Applicant Business;(7) whether the Applicant or Applicant Business has previously applied for an MVTS license (or permit), the result of the previous application, and whether the Applicant or Applicant Business has ever held an MVTS license (or permit) that was revoked or suspended;(8) Applicant Business federal tax identification number; and(9) Applicant Business state sales tax number.(d) Each Applicant shall execute the Applicant Affidavit Section of the Form, attesting to the following:(1) that information provided in and with the application is true and accurate; and(2) that Applicant freely grants the Williamson County Tax Assessor-Collector and local law enforcement agencies permission to conduct a criminal background investigation on Applicant and/or Applicant's business.</content><note type="source"><p>Source Note: The provisions of this §435.6 adopted to be effective May 5, 2020, 45 TexReg 2891.</p></note></section><section identifier="/us/state/tx/tac/t43/p16/c435/sc/s435.7"><num value="435.7">§435.7</num><heading>Completion of Title Service License Runner Application</heading><content>(a) A Motor Vehicle Title Service Runner License Application will not be considered complete under §435.5 of this chapter (relating to Submission of Application) unless all applicable information identified on the Title Service Runner License Application form ("TSRA Form") has been provided, all required documentation has been attached, and the Applicant identified on the TSRA Form has executed the Applicant Affidavit section of the Form as described in subsection (c) of this section. The following documents must be submitted with and attached to the signed and completed TSRA Form:(1) a copy of Applicant's valid Texas driver's license and valid Social Security Card, or if applicable, a U.S.-issued alien identification card by the Department of Homeland Security;(2) all forms required by the Williamson County Tax Assessor-Collector, signed and completed as required by the Williamson County Tax Assessor-Collector; and(3) sworn affidavits of each owner, partner, officer or director of the Licensed Title Service identified on the TSRA form, stating that the Licensed Title Service (which must be identified specifically in the statement by name and License No.) employs Applicant and authorizes him/her to submit or present title documents to the Williamson County Tax Assessor-Collector on its behalf.(b) Applicants shall provide all information indicated on the TSRA Form, which information shall include but is not limited to:(1) the name of the licensed motor vehicle title service for which the Applicant seeks a license to submit or present title documents, the MVTS License Number, and date of issue;(2) the name, office address and office phone of the title service owner, officer or employee who will supervise Applicant;(3) Applicant name, address, telephone number, social security number, date of birth, Texas Driver's license number, and citizenship status;(4) whether the Applicant has previously applied for an MVTS or MVTSR license (or permit), the result of the previous application(s), and whether the Applicant or Applicant Business has ever held an MVTS or MVTS Runner license (or permit) that was revoked or suspended; and(5) a sworn affidavit stating that the Applicant is employed by the motor vehicle title service identified on the Application and authorized by that motor vehicle title service to submit or present title documents to the Williamson County Tax Assessor-Collector.(c) Each Applicant shall execute the Applicant Affidavit Section of the Form, attesting to the following:(1) that information provided in and with the application is true and accurate;;(2) that Applicant is employed by the Title Service identified in Section 1 of the Application to submit or present title documents to the Williamson County Tax Assessor-Collector under Chapter 520 of the Texas Transportation Code; and(3) that Applicant freely grants the Williamson County Tax Assessor-Collector and local law enforcement agencies permission to conduct a criminal background investigation on Applicant and/or Applicant's business.</content><note type="source"><p>Source Note: The provisions of this §435.7 adopted to be effective May 5, 2020, 45 TexReg 2891.</p></note></section><section identifier="/us/state/tx/tac/t43/p16/c435/sc/s435.8"><num value="435.8">§435.8</num><heading>Application Review/Applicant Background Check/Applicant Interview</heading><content>(a) After acceptance of a completed application, the Williamson County Tax Assessor-Collector will conduct an initial review of the Application. If information known to or obtained by the Williamson County Tax Assessor-Collector conflicts or appears to conflict with information supplied in the Application, the Williamson County Tax Assessor-Collector may ask the Applicant to provide additional clarifying or verifying information.(b) Following initial application review under subsection (a) of this section, the Williamson County Tax Assessor-Collector will conduct the Applicant Background check. Upon completion of this process, interviews for eligible Applicants may be scheduled according to Williamson County Tax Assessor-Collector office needs/staff availability. Applicants are responsible for reserving open interview slots, which will be assigned by the Williamson County Tax Assessor-Collector on a first-come, first-served basis. No license may issue unless each person required to apply for the requested license has completed the interview process if requested by the Williamson County Tax Assessor-Collector. During the interview process, the Williamson County Tax Assessor-Collector may question Applicant and request additional documentation for the purpose of establishing Applicant's business reputation and character.(c) Applicants will be notified of the outcome of an application within 30 days of receiving the application or the date the interview process is completed should one be required. Such notice will be sent by certified mail:(1) to Runner License Applicants at the home address listed on the Application; and(2) to Title Service License Applicants at the business mailing address listed on the Application.</content><note type="source"><p>Source Note: The provisions of this §435.8 adopted to be effective May 5, 2020, 45 TexReg 2891.</p></note></section><section identifier="/us/state/tx/tac/t43/p16/c435/sc/s435.9"><num value="435.9">§435.9</num><heading>License</heading><content>(a) License No./Effective Date. Each license granted will be assigned a number. The effective date of issuance is the date upon which notice is sent under §435.8(c) of this chapter (relating to Application Review/Applicant Background Check/Applicant Interview).(b) Original. Each licensee shall be issued one original license.(c) A title service and/or runner shall process all work at the Georgetown Main office for the first ninety days of the license period, after which the title service may process work at any Williamson County Tax Assessor-Collector location. A title service whose license is renewed under §435.12(a) - (d) of this chapter (relating to License Renewal) may, upon the commencement of the renewal period, process work at any Williamson County Tax Assessor-Collector location.</content><note type="source"><p>Source Note: The provisions of this §435.9 adopted to be effective May 5, 2020, 45 TexReg 2891.</p></note></section><section identifier="/us/state/tx/tac/t43/p16/c435/sc/s435.10"><num value="435.10">§435.10</num><heading>Records and Reporting</heading><content>(a) MVTS.(1) Each licensed MVTS must inform the Williamson County Tax Assessor-Collector of a change to its primary physical and/or mailing address by submitting a written address change request form to the Williamson County Tax Assessor-Collector. The Williamson County Tax Assessor-Collector shall update the address information upon receipt of such request.(2) A licensed MVTS shall report a change to its principals, partners, owners, officers, or directors as provided in §435.14(b)(l) of this chapter (relating to Suspension).(3) Each licensed MVTS must keep on file at its principal place of business:(A) the original MVTS license and Application (including all submitted documentation); and(B) a copy of each license issued to a Runner for that MVTS, and of the Application (including all submitted documentation) submitted by each such licensed runner.(b) Runner.(1) In order to submit or present documents on behalf of an MVTS, a valid runner license must be presented. A licensed runner may submit or present title documents to the Williamson County Tax Assessor-Collector only on behalf of the licensed motor vehicle title service for which he/she is a licensed runner.(2) Each licensed Runner must inform the Williamson County Tax Assessor-Collector if his/her home address has changed by submitting a written home address change request to the Williamson County Tax Assessor-Collector. Upon receipt of such request, the Williamson County Tax Assessor-Collector will update the Runner's home address information.</content><note type="source"><p>Source Note: The provisions of this §435.10 adopted to be effective May 5, 2020, 45 TexReg 2891.</p></note></section><section identifier="/us/state/tx/tac/t43/p16/c435/sc/s435.11"><num value="435.11">§435.11</num><heading>License Fees</heading><content>(a) All License fees must be paid by business check on account in the applying (Title Service License) or employing (Title Service Runner License) Title Service's name, unless the Williamson County Tax Assessor-Collector in its sole discretion agrees to accept other forms of payment. Other forms of payment will not be accepted except as authorized in writing by the Williamson County Tax Assessor-Collector.(b) The fee for a motor vehicle title service license shall be $300 for the initial application and $300 for each annual renewal.(c) The fee for a title service runner license shall be $100 for the initial application and $100 for each annual renewal.(d) The fee for replacement of a license issued under §435.9(b) of this chapter (relating to License), lost title service license, or title runner license shall be $20.</content><note type="source"><p>Source Note: The provisions of this §435.11 adopted to be effective May 5, 2020, 45 TexReg 2891.</p></note></section><section identifier="/us/state/tx/tac/t43/p16/c435/sc/s435.12"><num value="435.12">§435.12</num><heading>License Renewal</heading><content>(a) A license issued under these rules expires on the first anniversary of the date of issuance and may be renewed annually on or before the expiration date on payment of the required renewal fee.(b) A person who is otherwise eligible to renew a license may renew an unexpired license by paying to the Williamson County Tax Assessor-Collector before the expiration date of the license the required renewal fee. A person whose license has expired may not engage in activities that require a license until the license has been renewed.(c) If a license has been expired for 90 days or less, the person/entity (as applicable), may renew the license by paying to the Williamson County Tax Assessor-Collector 1-1/2 times the required renewal fee.(d) If a license has been expired for longer than 90 days but less than one year, the person/entity (as applicable), may renew the license by paying to the Williamson County Tax Assessor-Collector two times the required renewal fee.(e) If a license has been expired for one year or longer, the person/entity (as applicable) may not renew the license. The person/entity may obtain a new license by complying with the requirements and procedures for obtaining an original license.(f) Notwithstanding subsection (e) of this section, if a person/entity (as applicable) was licensed in this state, moved to another state, and has been doing business in the other state for the two years preceding application, the person/entity may renew an expired license. The person must pay to the Williamson County Tax Assessor-Collector a fee that is equal to two times the required renewal fee for the license.(g) Before the 30th day preceding the date on which a license expires, the Williamson County Tax Assessor-Collector shall notify the license holder of the impending expiration. The notice must be in writing and sent to the license holder's last known address according to the records of the Williamson County Tax Assessor-Collector.</content><note type="source"><p>Source Note: The provisions of this §435.12 adopted to be effective May 5, 2020, 45 TexReg 2891.</p></note></section><section identifier="/us/state/tx/tac/t43/p16/c435/sc/s435.13"><num value="435.13">§435.13</num><heading>Denial or Revocation of License</heading><content>(a) Grounds for the denial (after completed Application submission) or revocation of a license include, but are not limited to:(1) past or present submission by licensee or any applicant for the license, of a license application or related document to the Williamson County Tax Assessor-Collector that contains false information or that by its submission constitutes a misrepresentation of fact;(2) the licensee or any applicant for the license has been convicted of any felony, any crime of moral turpitude, or deceptive business practice for which the sentence completion date is fewer than five years from the application date;(3) the licensee or any applicant for the license has been criminally or civilly sanctioned for the unauthorized practice of law by any government or quasi-government body with jurisdiction to do so;(4) one or more than one of the affiants described in §435.7(a)(3) of this chapter (relating to Completion of Title Service Runner License Application) has withdrawn his/her affidavit or otherwise informed the Williamson County Tax Assessor-Collector that Applicant is not employed and authorized to submit title documents on behalf of the title service identified in the application;(5) disruptive or aggressive behavior by a licensee or any applicant for the license at any Williamson County Tax Assessor-Collector location that in the opinion of the Williamson County Tax Assessor-Collector creates a security concern;(6) any dishonest, fraudulent, or criminal activity by a licensee or any applicant for the license; and/or(7) failure to pay fines and/or fees identified in a suspension notice under §435.14(a) of this chapter (relating to Suspension) within 30 days of the suspension's effective date.(b) Upon its determination that a license should be denied or revoked, the Williamson County Tax Assessor-Collector shall send notice of denial/revocation to the applicant(s)/licensee by certified mail. Notice of any license denial shall be sent to each applicant at the home address listed on his/her application form. Notice of a Runner license revocation shall be sent to the most recent home address on file. Notice of a Title Service License revocation shall be sent to the attention of "all" MVTS partners, owners, officers, directors, or principals (as applicable) at the most recent primary physical business address on file for licensee. The notice shall identify the grounds that warrant the determination.(c) Revocation - effective date. Revocation shall be effective upon the date notice described in subsection (b) of this section is sent.(d) A licensee whose license is denied or revoked may not apply for any license before the first anniversary of the date of the revocation. No applicant for a license that has been denied or revoked may apply for any license before the first anniversary of the date of revocation.</content><note type="source"><p>Source Note: The provisions of this §435.13 adopted to be effective May 5, 2020, 45 TexReg 2891.</p></note></section><section identifier="/us/state/tx/tac/t43/p16/c435/sc/s435.14"><num value="435.14">§435.14</num><heading>Suspension</heading><content>(a) Suspension for unpaid fines/fees. The Williamson County Tax Assessor-Collector may suspend a license if the licensee or any applicant for the license is delinquent in the payment of criminal fines or fees owed to Williamson County.(1) Suspension notice. The Williamson County Tax Assessor-Collector shall send notice of suspension, which shall include a statement identifying the unpaid fines/fees, by certified mail. Notice of suspension of a Runner license under this section shall be sent to the most recent home address on file for the licensee. Notice of a Title Service license suspension under this section shall be sent to the attention of "all" MVTS partners, owners, officers, directors, or principals (as applicable) at the most recent primary physical business address on file for the licensee. Suspension shall become effective upon the date notice is sent. Failure to pay the fines/fees identified in the suspension notice within 30 days of the suspension date shall result in revocation of the license.(2) A license suspended under this subsection will be reinstated if, within 30 days of the suspension's effective date, the licensee provides the Williamson County Tax Assessor-Collector with notice that includes a certified copy of the Williamson County invoice showing that the fines/fees identified in the suspension notice have been paid in full. The licensee may deliver such notice in writing by certified mail, return receipt requested, in which case notice will be considered received by the Williamson County Tax Assessor-Collector on the date the return is signed. The licensee may deliver such notice in person by presenting a certified copy of the paid invoice at a Williamson County Tax Assessor-Collector location, in which case notice shall be considered received when the Williamson County Tax Assessor-Collector issues the licensee a copy of the file-stamped invoice submitted. If the Williamson County Tax Assessor-Collector becomes aware that, within 30 days of suspension, the fines/fees identified in the suspension notice were paid in full, the Williamson County Tax Assessor-Collector is not required but may elect to reinstate the suspended license without notice from the licensee.(b) Automatic Suspension.(1) A Title Service license shall be automatically suspended upon the addition or replacement of any of the Title Service's principals, partners, officers, owners or directors. A Title Service shall immediately deliver written notice of any such addition or replacement and the license issued under §435.12(b) of this chapter (relating to License Renewal) to the Williamson County Tax Assessor-Collector by certified mail, return receipt requested.(2) Within ten (10) days of becoming a new principal, partner, owner, officer or director in a Title Service described in paragraph (1) of this subsection, a person may submit an MVTS application that meets the criteria set forth in §435.5 of this chapter (relating to Submission of Application) and §435.6 of this chapter (relating to Completion of Motor Vehicle Title Service License Application). If the application is granted following completion of the process set forth in §435.8 of this chapter (relating to Application Review/Applicant Background Check/Applicant Interview), the license shall become effective again on the date notice is sent under §435.8(c)(2) of this chapter. In this event, the license shall expire on the anniversary or its original effective date.(3) If the completed application of a prospective principal, partner, owner, officer or director in a licensed MVTS is received, reviewed and approved in accordance with §§435.5, 435.6, and 435.8 of this chapter before the prospective position is actually assumed, the license will not become ineffective under paragraph (1) of this subsection when the applicant assumes that position.</content><note type="source"><p>Source Note: The provisions of this §435.14 adopted to be effective May 5, 2020, 45 TexReg 2891.</p></note></section><section identifier="/us/state/tx/tac/t43/p16/c435/sc/s435.15"><num value="435.15">§435.15</num><heading>Appeals</heading><content>(a) An applicant/licensee may appeal the denial/revocation of a license by filing a written appeal request with the Williamson County Tax Assessor-Collector within 30 days of the date notice is sent under §435.13(b) of this chapter (relating to Denial or Revocation of License). Any information/documentation in support of such appeal must be submitted with the appeal request.(b) The Williamson County Tax Assessor-Collector shall appoint a Review Board consisting of five members. At least one member of the Review Board shall be a law enforcement officer. The Williamson County Tax Assessor-Collector may appoint one or more Williamson County Tax Assessor-Collector employees to serve on the Board. Provided at least one law enforcement officer is in attendance, appeals shall be reviewed at a meeting of at least three members of the Board. Such meetings shall be held periodically as determined by the Williamson County Tax Assessor-Collector.(c) Timely filed appeals will be scheduled for review at the next Review Board meeting, which shall take place no less than sixty (60) days following the filing of the appeal. An applicant/licensee whose appeal is under review may attend the meeting and, at the Board's discretion, provide testimony in support of the appeal. The Board also has discretion to consider documentation not timely provided under subsection (a) of this section.(d) Recommendation. The law enforcement officer in attendance shall preside over the meeting and determine when each appeal has been sufficiently considered, discussed and reviewed by the members in attendance. Following such determination, each member in attendance shall state and briefly describe the reasons for his/her opinion as to whether the action appealed should be sustained. Thereafter, the presiding law enforcement officer shall independently make a written recommendation to the Williamson County Tax Assessor-Collector. The written recommendation shall be signed by the presiding officer and shall identify which, if any, of the other members in attendance did not agree with it.(e) Within fifteen (15) days of receiving the presiding officer's written recommendation, the Williamson County Tax Assessor-Collector shall make a final determination on the appeal. The Williamson County Tax Assessor-Collector shall consider the presiding officer's recommendation before making the final determination.(f) The Williamson County Tax Assessor-Collector shall send notice of its final determination to the applicant/licensee by certified mail as follows:(1) License denial - to each applicant at the home address listed on his/her application form;(2) Runner License revocation - to the most recent home address on file;(3) Title Service License revocation - to the attention of all partners, owners, officers, directors, or principals (as applicable) at the most recent primary physical business address on file.</content><note type="source"><p>Source Note: The provisions of this §435.15 adopted to be effective May 5, 2020, 45 TexReg 2891.</p></note></section><section identifier="/us/state/tx/tac/t43/p16/c435/sc/s435.16"><num value="435.16">§435.16</num><heading>Amendment of Rules</heading><content>The Williamson County Tax Assessor-Collector may amend these rules in his/her sole discretion and as deemed necessary at any time.</content><note type="source"><p>Source Note: The provisions of this §435.16 adopted to be effective May 5, 2020, 45 TexReg 2891.</p></note></section></subchapter></chapter></part><part identifier="/us/state/tx/tac/t43/p18"><num value="18">PART 18</num><heading>MONTGOMERY COUNTY TAX ASSESSOR-COLLECTOR</heading><chapter identifier="/us/state/tx/tac/t43/p18/c445"><num value="445">CHAPTER 445</num><heading>Motor Vehicle Title Services</heading><subchapter identifier="/us/state/tx/tac/t43/p18/c445/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t43/p18/c445/sc/s445.1"><num value="445.1">§445.1</num><heading>Definitions</heading><content>(a) "Application" or "applications." Except where otherwise expressly stated, the term "Application" or "applications" includes all documentation submitted with a Motor Vehicle Title Service Application Form or Motor Vehicle Title Service Runner Application Form.(b) "Motor vehicle" has the meaning assigned by Texas Transportation Code §501.002.(c) "MCTAC" means Montgomery County Tax Assessor-Collector. (d) "Motor vehicle title service" or "MVTS" means any person or entity that for compensation directly or indirectly assists other persons in obtaining title documents, in either written or electronic form, by submitting, transmitting, or sending applications for title documents to the appropriate government agencies.(e) "Person" or "persons" means company or individual. (f) "Sponsored" means that a MVTS has requested a license for a title service runner employed by the MVTS so that the runner may present title documents at the MCTAC's Office on behalf of the MVTS. (g) "Title documents" means motor vehicle title applications, motor vehicle registration renewal applications, motor vehicle mechanic's lien title applications, motor vehicle storage lien title applications, motor vehicle temporary registration permits, motor vehicle title application transfers occasioned by the death of the title holder, motor vehicle inquiries, license plate and/or sticker replacement or any other motor vehicle related transaction.(h) "Title service runner," "Runner" or "MVTSR" means any person employed and sponsored by a licensed motor vehicle title service to submit or present title documents to the Montgomery County Tax Assessor-Collector on behalf of that licensed motor vehicle title service.</content><note type="source"><p>Source Note: The provisions of this §445.1 adopted to be effective December 29, 2025, 50 TexReg 8629.</p></note></section><section identifier="/us/state/tx/tac/t43/p18/c445/sc/s445.2"><num value="445.2">§445.2</num><heading>License Required</heading><content>(a) A company or individual person may not act as a motor vehicle title service or act as runner for that business in Montgomery County, Texas unless that business or person holds a license issued by Montgomery County, Texas. Licenses are required pursuant to Texas Transportation Code § 520.053.(b) There are two categories of licenses that are required to do business:(1) Motor Vehicle Title Service License, obtained by the owner(s) and operator(s) of a motor vehicle title service company; and(2) Title Service Runner License, obtained before a person may act as a registered agent for a motor vehicle title service company to present motor vehicle title documents to the Montgomery County Tax Assessor-Collector's Office for processing.(c) Exemptions. The following persons and their agents are exempt from the licensing and other requirements described herein:(1) a franchised motor vehicle dealer or independent motor vehicle dealer who holds a general distinguishing number issued by the department under Texas Transportation Code Chapter 503;(2) a vehicle lessor holding a license issued by the Motor Vehicle Board under Chapter 2301, Texas Occupations Code, or a trust or other entity that is specifically not required to obtain a lessor license under §2301.254(a), Texas Occupations Code; and(3) a vehicle lease facilitator holding a license issued by the Motor Vehicle Board under Chapter 2301, Texas Occupations Code.</content><note type="source"><p>Source Note: The provisions of this §445.2 adopted to be effective December 29, 2025, 50 TexReg 8629.</p></note></section><section identifier="/us/state/tx/tac/t43/p18/c445/sc/s445.3"><num value="445.3">§445.3</num><heading>Eligible Applicants</heading><content>(a) All individual applicants must meet the following requirements in order to be eligible to hold a MVTS license or a MVTSR license:(1) be at least 18 years of age on the date the Application is submitted;(2) authorized to handle financial transactions whether representing himself/herself or another;(3) a United States citizen or a legal resident; and(4) provide proof that the applicant has filed for renditions for real property and/or business personal property with the Montgomery County Central Appraisal District. (b) If the Application is for a MVTS license for a business entity, the applicant must provide:(1) proof that the applicant is authorized to handle financial transactions for that business entity; and(2) the account number or proof that the business has filed for renditions for real property and/or business Personal property with the Montgomery County Central Appraisal District. (c) A person or business is not eligible to hold a MVTS license or MVTSR license if:(1) the person is delinquent on real and/or business personal property taxes due and owing to Montgomery County, Texas; until they cure the delinquency; (2) the person has been convicted of a felony or a crime of moral turpitude; (3) the person owns or is employed by an automobile insurance company, vehicle emissions inspection service or company, or holds a motor vehicle General Distinguishing Number issued by the Texas Department of Motor Vehicles; (4) the person applying for a Runner's License holds a MVTS Owner's License in any County in the State of Texas;(5) the person previously held a MVTS license or MVTSR license in another county that has been suspended or revoked; or(6) the business entity is not eligible to hold a MVTS license or sponsor a MVTSR license if the business entity is delinquent on property taxes due and owing to Montgomery County. A business entity's failure to provide proof of the items required in subsection (b) of this section will render the applicant ineligible to hold a license in Montgomery County.(d) If a person or business who holds a MVTS license or MVTSR license becomes ineligible to hold that license due to any of the circumstances listed in subsection (c) of this section, they must immediately surrender their license to the MCTAC.</content><note type="source"><p>Source Note: The provisions of this §445.3 adopted to be effective December 29, 2025, 50 TexReg 8629.</p></note></section><section identifier="/us/state/tx/tac/t43/p18/c445/sc/s445.4"><num value="445.4">§445.4</num><heading>Criminal Background Check</heading><content>(a) Each applicant for a MVTS or MVTSR license must submit with their application an FBI background check and a TX DPS background check. (b) Each applicant will obtain their background checks at their own expense. (c) Applications are deemed incomplete if submitted without these background checks.</content><note type="source"><p>Source Note: The provisions of this §445.4 adopted to be effective December 29, 2025, 50 TexReg 8629.</p></note></section><section identifier="/us/state/tx/tac/t43/p18/c445/sc/s445.5"><num value="445.5">§445.5</num><heading>Submission of Application</heading><content>(a) Each applicant for a MVTS license or MVTSR license must submit:(1) the completed application form;(2) supporting documentation required by these rules; and(3) payment of applicable fees. (b) Each application must be submitted in person to the MCTAC or the MCTAC representative at the MCTAC Conroe, Texas office. Applications will not be accepted at any other MCTAC locations. (c) Each applicant must present the following at the time of application submittal:(1) a valid Texas driver's license or Texas DPS issued Identification Card; (2) if applicable, a U.S. issued alien identification card issued by the Department of Homeland Security; and(3) a valid Social Security card. (d) In presenting the identification listed in subsection (c) of this section with their application, the person permits the Montgomery County Tax Assessor-Collector or Montgomery County Tax Assessor-Collector's designated representative to make a copy of both. License applications will not be processed without the required identification being presented.(e) Fees are subject to change upon approval by Montgomery County Commissioners Court.</content><note type="source"><p>Source Note: The provisions of this §445.5 adopted to be effective December 29, 2025, 50 TexReg 8629.</p></note></section><section identifier="/us/state/tx/tac/t43/p18/c445/sc/s445.6"><num value="445.6">§445.6</num><heading>Motor Vehicle Title Service Application Requirements</heading><content>(a) A MVTS License Application will not be considered complete under § 445.5 of this chapter (relating to Submission of Application) unless: (1) all applicable information identified on the Title Service License Application form ("TSLA Form") has been provided;(2) all required documentation has been attached;(3) the applicant identified on the TSLA Form has executed the applicant affidavit section of the TSLA Form as described in subsection (c) of this section; and(4) all applicable fees have been paid.(b) If applicant business is a partnership, each partner must submit a separate application. If applicant business is a corporation, each officer and director must submit a separate application and identify the state of incorporation on that application.(c) Each applicant shall provide all information indicated on the TSLA Form, which information shall include but is not limited to:(1) applicant name, address, telephone number, social security number, date of birth, Texas driver's license number, citizenship status, and what position the applicant holds in the applicant business (i.e., owner, principal, director, office, partner);(2) applicant business name, physical address, mailing address, and telephone number(s);(3) identification of applicant business type (i.e., DBA, Corporation, or Partnership);(4) name under which service will conduct business (if different than applicant business name);(5) The physical address(es) (including any applicable suite number(s) of each location/office from which the service will conduct business (a P.O. box will not be accepted) and a corresponding photo, with address numbers clearly visible, of each location/building where business is to be conducted;(6) the name(s), as applicable, of:(A) each individual with any ownership interest in the applicant business; and(B) each principal, officer or director of applicant business;(7) if the applicant or applicant business has previously applied for a MVTS license (or permit) in a Texas County, including Montgomery County, please provide the following information: (A) when they applied;(B) where they applied;(C) what was the result of the previous application; and(D) whether the applicant or applicant business has ever had a MVTS license (or permit) revoked or suspended (if revoked or suspended, which county revoked or suspended, when the license was revoked or suspended, and why the license was revoked or suspended);(8) applicant business federal tax identification number; and(9) applicant business state sales tax number.(d) The following documents must be submitted with and attached to the signed and completed TSLA Form:(1) to show proof of United States citizenship or legal residency, a copy of a current, valid applicant's valid Texas driver's license or Texas Department of Public Safety Identification Card and valid Social Security card, or if applicable, a U.S. issued alien identification card issued by the Department of Homeland Security; (2) a certified copy of:(A) if applicant business is a DBA, each applicable Assumed Name Certificate;(B) if applicant business is a corporation, the applicable Articles of Incorporation; or(C) if applicant business is a partnership, the applicable Partnership Agreement; (3) all forms required by Montgomery County Tax Assessor-Collector, signed and completed as required by the Montgomery County Tax Assessor-Collector; and(4) all required background checks. (e) Each applicant shall execute the Applicant Affidavit section of the TSLA Form that information provided in and with the application is true and correct.</content><note type="source"><p>Source Note: The provisions of this §445.6 adopted to be effective December 29, 2025, 50 TexReg 8629.</p></note></section><section identifier="/us/state/tx/tac/t43/p18/c445/sc/s445.7"><num value="445.7">§445.7</num><heading>Title Service License Runner Application Requirements</heading><content>(a) A MVTSR Application will not be considered complete under this chapter unless:(1) all applicable information identified on the Title Service Runner License Application form (TSRA Form) has been provided; (2) all required documentation has been attached;(3) the applicant identified on the TSRA Form has executed the Applicant Affidavit section of the TSRA Form as described in subsection (c) of this section; and(4) all applicable fees have been paid.(b) Applicants shall provide all information indicated on the TSRA Form, which information shall include, but is not limited to:(1) the name of the licensed motor vehicle title service for which the applicant seeks a license to submit or present title documents (sponsoring MVTS), the MVTS license number, and date of issuance;(2) the name, office address and office phone number of the title service owner, officer or employee who will supervise applicant;(3) applicant's name, telephone number, social security number, date of birth, Texas driver's license number and citizenship status;(4) if the applicant or applicant business has previously applied for a MVTS or MVTSR license (or permit) in a Texas County, including Montgomery County, provide the following information: when they applied, where they applied, what was the result of the previous application, and whether the applicant or applicant business has ever had a MVTS or MVTSR license (or permit) revoked or suspended (if revoked or suspended, which county revoked or suspended), when the license was revoked or suspended, and why the license was revoked or suspended; and(5) a sworn affidavit stating that the applicant is employed by the motor vehicle title service identified on the Application and authorized by that motor vehicle title service to submit or present title documents to the MCTAC.(c) The following documents must be submitted with and attached to the signed and completed TSRA Form: (1) to show proof of United States citizenship or legal residency, a copy of applicant's valid Texas driver's license and valid Social Security card, or if applicable, a U.S. issued alien identification card by the Department of Homeland Security; (2) all forms required by Montgomery County Tax Assessor-Collector, signed and completed as required by the Montgomery County Tax Assessor-Collector; (3) sworn affidavits of each owner, partner, officer or director of the licensed title service identified on the TSRA Form, stating that the licensed title service (which must be identified specifically in the statement by name and license no.) employs applicant and authorizes him/her to submit or present title documents to the Montgomery County Tax Assessor-Collector on its behalf; and (4) all required background checks. (d) Each Applicant shall execute the Applicant Affidavit Section of the TSRA Form, attesting to the following:(1) that information provided in and with the Application is true and accurate; and (2) the applicant is employed by the title service identified in section 1 of the Application to submit or present title documents to the Montgomery County Tax Assessor-Collector under Chapter 520 of the Texas Transportation Code.</content><note type="source"><p>Source Note: The provisions of this §445.7 adopted to be effective December 29, 2025, 50 TexReg 8629.</p></note></section><section identifier="/us/state/tx/tac/t43/p18/c445/sc/s445.8"><num value="445.8">§445.8</num><heading>Application Review/Applicant Background Check</heading><content>(a) After acceptance of a completed application, the Montgomery County Tax Assessor-Collector will conduct an initial review of the application. The Montgomery County Tax Assessor-Collector may ask the applicant to provide additional clarifying or verifying information. (b) Applicants will be notified of the outcome of an application within thirty (30) days of receiving the application. Such notice will be sent by electronic mail and regular mail:(1) to MVTS license applicants at the business mailing address listed on the application; and (2) to MVTSR applicants at the business mailing address for the MVTS sponsor listed on the application.</content><note type="source"><p>Source Note: The provisions of this §445.8 adopted to be effective December 29, 2025, 50 TexReg 8629.</p></note></section><section identifier="/us/state/tx/tac/t43/p18/c445/sc/s445.9"><num value="445.9">§445.9</num><heading>License/Badge</heading><content>(a) License Number /Effective Date. Each license granted will be assigned a number. The effective date of issuance is the date upon which notice is sent under § 445.8(c) of this chapter (relating to Application Review/Applicant Background Check/Applicant Interview).(b) Original. Each licensee shall be issued one original license.(c) Expiration. All licenses expire on the one year anniversary date of issuance. (d) All licenses must be displayed in office/location of business.(e) Licenses may be renewed pursuant to §445.12 of this chapter (relating to License Renewal).(f) Each MVTS owner and MVTSR will be issued a badge upon issuance of their license.</content><note type="source"><p>Source Note: The provisions of this §445.9 adopted to be effective December 29, 2025, 50 TexReg 8629.</p></note></section><section identifier="/us/state/tx/tac/t43/p18/c445/sc/s445.10"><num value="445.10">§445.10</num><heading>Reporting and Records</heading><content>(a) Each licensed MVTS must inform the Montgomery County Tax Assessor-Collector of a change to its primary physical and/or mailing address by submitting a written notification on MVTS letterhead to the Montgomery County Tax Assessor-Collector. The Montgomery County Tax Assessor-Collector shall update the address information upon receipt of the notification.(b) A licensed MVTS shall report a change to its principals, partners, owners, officers, or directors as provided in §445.14 of this chapter (relating to Suspension).(c) A licensed MVTS shall report a change to a sponsored runner, including separation of employment, name change, ineligibility, or change of business address. (d) Each licensed MVTS must keep a file at its principal place of business:(1) the MVTS license issued to them (displayed), a copy of the application (including all submitted documentation), and the receipt for the application; (2) a copy of each license issued to a Runner for that MVTS, and of the Application (including all submitted documentation) submitted by each licensed runner; and (3) all records required by Transportation Code § 520.057.(e) Each licensed MVTS shall maintain records as required by the Montgomery County Tax Assessor-Collector for each transaction in which the license holder receives compensation. The records shall include:(1) the date of the transaction;(2) the name, age, address, sex, driver's license number, and a legible photocopy of the driver's license for each customer; and(3) the vehicle make, model, year, license plate number, vehicle identification number, and a legible photocopy of proof of financial responsibility for the motor vehicle involved.(f) Each licensed MVTS shall keep:(1) Two (2) copies of all records required under this section for at least two years after the date of the transaction;(2) legible photocopies of any documents submitted by a customer; and(3) legible photocopies of any documents submitted to the Montgomery County Tax Assessor-Collector. (g) A motor vehicle title service license holder or any of its employees shall allow an inspection of the required records by a peace officer on the premises of the motor vehicle title service at any reasonable time to verify, check, or audit the records.</content><note type="source"><p>Source Note: The provisions of this §445.10 adopted to be effective December 29, 2025, 50 TexReg 8629.</p></note></section><section identifier="/us/state/tx/tac/t43/p18/c445/sc/s445.11"><num value="445.11">§445.11</num><heading>License Fees</heading><content>(a) All license fees must be paid by cash or certified funds in the applying (MVTS license) or employing (MVTSR license) title service's name.(b) The fee for a motor vehicle title service license shall be $500 for the initial application and $500 for each annual renewal.(c) The fee for a title service runner license shall be $200 for the initial application and $200 for each annual renewal.(d) The fee for replacement of a badge issued under §445.9 of this chapter (relating to License/Badge) shall be $50.(e) All applications for new licenses and renewals submitted after the date of adoption of these rules are subject to payment of the fees listed in this section. (f) All fees are non-refundable.</content><note type="source"><p>Source Note: The provisions of this §445.11 adopted to be effective December 29, 2025, 50 TexReg 8629.</p></note></section><section identifier="/us/state/tx/tac/t43/p18/c445/sc/s445.12"><num value="445.12">§445.12</num><heading>License Renewal</heading><content>(a) A license issued under this subchapter expires on the first anniversary of the date of issuance and may be renewed annually on or before the expiration date on payment of the required renewal fee.(b) A person who is otherwise eligible to renew a license may renew an unexpired license by paying to the MCTAC before the expiration date of the license the required renewal fee. A person whose license has expired may not engage in activities that require a license until the license has been renewed under this section.(c) If a person's license has been expired for 90 days or less, the person may renew the license by paying to the MCTAC 1-1/2 times the required renewal fee.(d) If a person's license has been expired for longer than ninety (90) days but less than one year, the person may renew the license by paying to the MCTAC two times the required renewal fee.(e) If a person's license has been expired for one year or longer, the person may not renew the license. The person may obtain a new license by complying with the requirements and procedures for obtaining an original license.(f) Notwithstanding subsection (e) of this section, if a person was licensed in this state, moved to another state, and has been doing business in the other state for the two years preceding application, the person may renew an expired license. The person must pay to the MCTAC a fee that is equal to two times the required renewal fee for the license.(g) Before the 30th day preceding the date on which a person's license expires, the MCTAC shall notify the person of the impending expiration. The notice must be in writing and sent to the person's last known address according to the records of the county tax assessor-collector.</content><note type="source"><p>Source Note: The provisions of this §445.12 adopted to be effective December 29, 2025, 50 TexReg 8629.</p></note></section><section identifier="/us/state/tx/tac/t43/p18/c445/sc/s445.13"><num value="445.13">§445.13</num><heading>Denial or Revocation of License</heading><content>(a) Grounds for the denial (after a completed application is submitted) or revocation of a current license, both for MVTS and MVTSR, include, but are not limited to:(1) past or present submission by licensee or any applicant for the license, of a an application or related document to the MCTAC that contains false information or that by its submission constitutes a misrepresentation of fact; (2) the licensee or any applicant for the license has been convicted of any felony, any crime of moral turpitude, or deceptive business practice ;(3) the licensee or any applicant for the license has been criminally or civilly sanctioned for the unauthorized practice of law by any government or quasi-government body with jurisdiction to do so;(4) all of the affiant(s) described in §445.7(a)(3) of this chapter (relating to Completion of MVTSR Application) have withdrawn their affidavit(s) or otherwise informed the MCTAC that the applicants are not employed and authorized to submit title documents on behalf of the title service identified in the application;(5) disruptive or aggressive behavior by a licensee or any applicant for the license at any MCTAC location that in the opinion of the MCTAC creates a security concern;(6) any dishonest, fraudulent, or criminal activity by a licensee or any applicant for the license; (7) failure to pay fines and/or fee identified in a suspension notice under §445.14(a) of this chapter (relating to Suspension) within thirty (30) days of the suspension's effective date;(8) failure to correct reason for suspension within thirty (30) days of the suspension's effective date; and/or(9) the license holder becomes ineligible due to the change in status listed under §445.3(c) of this chapter (relating to Eligible Applicants).(b) Upon its determination that a license should be denied or revoked, the MCTAC shall send notice of denial/revocation to the applicant(s)/licensee by certified mail. Notice of any license denial shall be sent to each applicant at the business address listed on his/her application form. Notice of a Runner license revocation shall be sent to their sponsoring MVTS business. Notice of a title service license revocation shall be sent to the attention of all MVTS partners, owners, officers, directors, or principals (as applicable) at the most recent primary physical business address on file for licensee. The notice shall identify the grounds that warrant the determination.(c) Revocation shall be effective upon the date notice described in subsection (b) of this section is sent.(d) A Person whose license is revoked may not apply for a new license before the first anniversary of the date of the revocation. An applicant who was previously denied may not apply for any license before the first anniversary of the date of the denial or revocation.</content><note type="source"><p>Source Note: The provisions of this §445.13 adopted to be effective December 29, 2025, 50 TexReg 8629.</p></note></section><section identifier="/us/state/tx/tac/t43/p18/c445/sc/s445.14"><num value="445.14">§445.14</num><heading>Suspension</heading><content>(a) Suspension for unpaid taxes. The MCTAC may suspend a license if the licensee or any applicant for the license is delinquent in the payment of real and/or personal property taxes or fines/fees owed to Montgomery County, Texas. (1) Suspension notice. The MCTAC shall send notice of suspension, which shall include a statement identifying the unpaid taxes, by certified mail. Notice of suspension of a MVTSR under this section shall be sent to the most recent primary physical business address on file for the licensee. Notice of a title service license suspension under this section shall be sent to the attention of all MVTS partners, owners, officers, directors, or principals (as applicable) at the most recent primary physical business address on file for the licensee. Suspension shall become effective upon the date notice is sent. Failure to pay the delinquent taxes identified in the suspension notice within thirty (30) days of the suspension date shall result in revocation of the MVTS business license or MVTSR license. (2) A license suspended under this subsection will be reinstated if, within thirty (30) days of the suspension's effective date, the licensee provides the MCTAC with notice that includes a certified copy of the Montgomery County invoice showing that the taxes identified in the suspension notice have been paid in full. The licensee may deliver such notice in writing by certified mail, return receipt requested, in which case notice will be considered received by the MCTAC on the date the return is signed. The licensee may deliver such notice in person by presenting a copy of the paid receipt at the MCTAC main location, in which case notice shall be considered received when the MCTAC issues the licensee a copy of the file-stamped receipt submitted. (b) Suspension for change in MVTS ownership or MVTSR status. If the MVTS fails to notify the MCTAC of any changes in ownership or MVTSR status within ten (10) days of the change, the MVTS or MVTSR license, (whichever is applicable) shall be automatically suspended. Notifications of changes in ownership must be accompanied by the appropriate applications and fees. Once the applications have been approved and the license to the new owner has been issued, the suspension will be lifted. The new license will expire on the first anniversary of its issuance and is subject to the same renewal requirements.</content><note type="source"><p>Source Note: The provisions of this §445.14 adopted to be effective December 29, 2025, 50 TexReg 8629.</p></note></section><section identifier="/us/state/tx/tac/t43/p18/c445/sc/s445.15"><num value="445.15">§445.15</num><heading>Appeals</heading><content>(a) An applicant/licensee may appeal the denial or revocation of a license by filing a written appeal request with the MCTAC within thirty (30) days of the date of notice is sent under §445.13(b) of this chapter (relating to Denial or Revocation of License). Any information/documentation in support of such appal must be submitted with the appeal request.(b) The MCTAC shall appoint a Review Board ("Review Board") consisting of three (3) members. At least one member of the Review Board shall be a law enforcement officer. The MCTAC may appoint one or more MCTAC employees to serve on the Review Board. Provided at least one law enforcement officer is in attendance, appeals shall be reviewed at a meeting of at least three (3) members of the Review Board. (c) Timely filed appeals will be scheduled for review at the next Review Board meeting, which shall take place no less than sixty (60) days following the filing of the appeal. An applicant/licensee whose appeal is under review may attend the meeting and, at the Review Board's discretion, provide testimony in support of the appeal. The Review Board also has discretion to consider documentation not timely provided under subsection (a) of this section.(d) Recommendation. The law enforcement officer in attendance shall preside over the meeting and determine when each appeal has been sufficiently considered, discussed and reviewed by the members in attendance. Following such determination, each member in attendance shall state and briefly describe the reasons for his/her opinion as to whether the action appealed should be sustained. (e) Within fifteen (15) days of receiving the presiding officer's written recommendation, the MCTAC shall make a final determination on the appeal. The MCTAC shall consider the presiding officer's recommendation before making the final determination.(f) The MCTAC shall send notice of its final determination to the applicant/licensee by certified mail as follows:(1) license denial- to each applicant at the business address listed on his/her application form;(2) runner license denial and revocation- to the most recent primary physical business address for the sponsoring MVTS; and(3) title service license revocation- to the attention of all partner, owners, officers, directors, or principals (as applicable) at the most recent primary physical business address on file.</content><note type="source"><p>Source Note: The provisions of this §445.15 adopted to be effective December 29, 2025, 50 TexReg 8629.</p></note></section><section identifier="/us/state/tx/tac/t43/p18/c445/sc/s445.16"><num value="445.16">§445.16</num><heading>Requirements for Conducting Motor Vehicle License Transactions</heading><content>(a) All vehicle transactions for Montgomery County will be processed at the Montgomery County Tax Office, 400 N. San Jacinto St., Conroe, Texas.(b) MCTAC will process motor vehicle transactions solely for purchasers who live in Montgomery County, Texas. The MVTS/MVTSR processing the transaction must provide proof that the purchaser is a Montgomery County resident. (c) A MCTAC vehicle transaction form must accompany all motor vehicle service transactions. The MVTS officer or owner shall print or sign his name in the space provided and fill in the company authorization number in the space provided.(d) The person preparing the vehicle transaction form will print and sign his or her name in the spaces provided.(e) All runners presenting documents at the MCTAC for processing shall print and sign their names in the spaces provided. Runners shall also fill in their MCTAC authorization number in the appropriate block.(f) The MVTS company is responsible for the accuracy and validity of the information for each vehicle listed. Only vehicles for which the MVTS has been authorized to process the title will be processed by the MCTAC. The MVTS/MVTSR must provide proof of authorization from the purchaser of the vehicle to process the title transaction, including the purchaser's driver's license or state issued ID and a signed authorization form showing they have authorized the transaction. (g) All vehicles for which the title service company wishes to complete a transaction must be listed and identified as transfer or ownership, renewal or replacement of license plates or registration sticker on the transaction form. The vehicle make, model, year and vehicle identification number must be printed legibly. Only vehicles for which the MVTS has been authorized to process can be printed on the form.(h) After the final vehicle transaction on each transaction sheet is completed, the original transaction form will be retained by the MCTAC.(i) MCTAC shall refuse to process motor vehicle title transactions for any runner that does not present their current MCTAC issued runner photo ID badge when paperwork is submitted. Persons are prohibited to use another person's MCTAC issued runner photo ID badge when presenting title documents at MCTAC for processing. The photo ID badge may only be used by the person to whom it was issued. (j) Title documents may only be submitted in person at the MCTAC, by mail, or by common carrier. Submission by internet or email is prohibited.(k) Runners may present work for only their sponsoring MVTS and work they are authorized to conduct. Runners may not present work for other runners.</content><note type="source"><p>Source Note: The provisions of this §445.16 adopted to be effective December 29, 2025, 50 TexReg 8629.</p></note></section><section identifier="/us/state/tx/tac/t43/p18/c445/sc/s445.17"><num value="445.17">§445.17</num><heading>Amendment of Rules</heading><content>(a) The MCTAC may amend these rules in his/her sole discretion and as deemed necessary at any time. (b) The MCTAC may authorize other policies and procedures that are not inconsistent with these sections or other law and to the extent authorized by law.(c) All persons and businesses who hold a MCTAC issued license on the effective date of these rules are subject to these rules.(d) All applications for new licenses and for renewal submitted after the effective date of these rules are subject to these rules.</content><note type="source"><p>Source Note: The provisions of this §445.17 adopted to be effective December 29, 2025, 50 TexReg 8629.</p></note></section></subchapter></chapter></part>