TITLE 43.TRANSPORTATION

Part 1. TEXAS DEPARTMENT OF TRANSPORTATION

Chapter 4. EMPLOYMENT PRACTICES

Subchapter F. EMPLOYEE TRAINING AND EDUCATION

The Texas Department of Transportation proposes the repeal of §§4.60-4.64 and simultaneously proposes new §§4.60-4.63, concerning employee training and education.

EXPLANATION OF PROPOSED REPEALS AND AMENDMENTS

Government Code, §656.048, requires a state agency to adopt rules relating to the eligibility of the state agency's administrators and employees for training and education supported by the state agency and the obligations assumed by the administrators and employees on receiving the training and education.

The repeals and new sections are proposed for several reasons. First, the rules are thoroughly revised to simplify the structure, clarify the meaning, and shorten the length by eliminating unnecessary duplication. The result is a set of rules that are both shorter and easier to use. Second, the revision strengthens the training and education program to ensure that the department's expenditures yield an appropriate return. Third, the degree program is divided into two programs, a job-related degree program and a non-job-related degree program, to facilitate administration.

Section 4.60 is based on former §4.60. There are no substantive changes.

Section 4.61 is based on former §4.61. Some definitions have been added, and others have been deleted. The definitions of district, district engineer, division director, employee, office director, part-time position, professional development requirement, prospective duty assignment, regular employee, and training have been eliminated. In each case, either the meaning is clear from the context in which the term is used, or the term has been eliminated from the rules.

Several new definitions have been added. Director is defined as the director of the Human Resources Division. Employee's executive officer is defined as an employee's district engineer, division director, or office director (or that person's designee). Executive director has been defined to include a designee. In each case, the reason for the new definition is for ease of reference. In addition, institution has been defined to establish the kinds of schools that an employee may attend. This establishes that employees may receive assistance for attending only accredited colleges and universities and ensures that employees will participate in programs of high quality. For the same reason, trade schools will no longer be eligible.

Former §4.62 is eliminated because it provided no substantive guidance.

Section 4.62(a) is added to provide context and to clarify that in the event of conflict, the program-specific rules in §4.63 will govern.

Section 4.62(b)(1) is based on former §4.63(b)(1)(A), (2)(A) and (3)(A). Section 4.62(b)(2) is based on former §4.63(b)(1)(B), (2)(B) and (3)(B). Section 4.63(b)(3) is based on former §4.63(b)(1)(D), (2)(F) and (3)(D). There are no substantive changes.

Section 4.62(c)(1) is based on former §4.63(d). Employees are given greater latitude in taking correspondence and internet courses if they are offered by, in order of preference, Texas public institutions, Texas private institutions, and other institutions. This will increase the availability of eligible courses while providing opportunities for cost reductions.

Section 4.62(c)(2) is based on former §4.63(e). There are no substantive changes.

Section 4.62(c)(3) is based on former §4.63(f)(2). Current policy is clarified by adding that employees may use department equipment only during non-duty hours and when use would not interfere with ordinary department business.

Section 4.62(c)(4) is based on former §4.62(d)(5)(B). There are no substantive changes.

Section 4.62(d)(1) is based on former §4.64(a)(5). Section 4.62(d)(2) is based on former §4.64(b). Section 4.62(d)(3) is based on former §4.63(c)(1)(C) and (2)(B), and §4.64(c)(2). The new language clarifies that an employee's executive officer is the person responsible for deciding to suspend an employee's participation in an assistance program.

Section 4.62(e) is based on former §4.64(a)(2), (3) and (4). Section 4.62(f) is based on former §4.64(a)(2), (3) and (4); (c)(1)(D); and (d). There are no substantive changes.

Section 4.62(g) is based on §4.64(c)(1) and (d)(9). The waiting period required to reenter an assistance program after cancellation, in the absence of hardship, is reduced from three years to two. This change is made because the repayment provisions adequately protect the department from abuse of a program by an employee.

Section 4.63(a) is based on former §4.63(a). It contains particular standards applicable to degree programs and splits the degree programs into two categories, the job-related degree program and the non-job-related degree program. This division will facilitate administration of the degree programs.

Section 4.63(a)(1) contains standards that are applicable to both degree programs. Section 4.63(a)(1)(a) is based on former §4.63(b)(1)(C), (E) and (G). There are no substantive changes.

Section 4.63(a)(1)(B) is based on former §4.63(g). It now provides that an employee's chosen elective may not be rejected if rejection would extend the employee's time in the program.

Section 4.63(a)(1)(C) is based on former §4.63(c)(1). Section 4.63(a)(1)(D) is based on former §4.63(c)(1)(B) and (f)(1). Section 4.63(a)(1)(E) is based on former §4.64(d)(7) and (8). There are no substantive changes.

Section 4.63(a)(2) contains standards that are applicable only to the job-related degree program. Section 4.63(a)(2)(A) is based on former §4.63(b)(1)(F)(i) and (ii). Section 4.63(a)(2)(B) is based on former §4.64(a)(3). There are no substantive changes.

Section 4.63(a)(3) contains standards that are applicable only to the non-job-related degree program. Section 4.63(a)(3)(A) is based on former §4.63(b)(1)(F)(iii). Section 4.63(a)(3)(B) is based on former §4.64(a)(3). There are no substantive changes.

Section 4.63(b) is based on former §4.63(a). It contains particular standards applicable to the full-time master's program.

Section 4.63(b)(1) is based on former §4.63(b)(2)(C), (D), (E), (G), (H) and (I). Section 4.63(b)(2) is based on former §4.63(g). Section 4.63(b)(3) is based on former §4.63(c)(2). Section 4.63(b)(4) is based on former §4.63(b)(2), (e)(5) and (f). Section 4.63(b)(5) is based on former §4.64(1)(2). There are no substantive changes.

Section 4.63(b)(6) is based on former §4.64(d)(2), (7) and (8). Reduction or elimination of repayment obligations will no longer be authorized for an employee who leaves the department to work for another state agency. This change is necessary to ensure that the department is not, in effect, using its resources to train employees for the benefit of other agencies and not the department.

Section 4.63(b)(7) is based on former §4.64(a)(1)(B). There are no substantive changes.

Section 4.63(c) is based on former §4.63(a). It contains particular standards applicable to the full-time degree completion program.

Section 4.63(c)(1) is based on former §4.63(b)(3)(C), (E), (F) and (G). There are no substantive changes.

Section 4.63(c)(2) is based on former §4.63(g). It now provides that an employee's chosen elective may not be rejected if rejection would extend the employee's time in the program.

Section 4.63(c)(3) is based on former §4.63(c)(3). Previously, an employee might be granted the ability to skip the summer semester if the employee returned to work for the summer. This provision is generalized to apply to any semester and to permit a combination of part-time work and part-time school, as long as the combination is approved by the director of the Human Resources Division.

Section 4.63(c)(4) is based on former §4.63(c)(3) and (f)(1). Section 4.63(c)(5) is based on former §4.64(a)(4). Section 4.63(c)(6) is based on former §4.64(d)(2), (7) and (8). Section 4.63(c)(7) is based on former §4.64(c)(1)(C)(iii). There are no substantive changes.

Section 4.63(d) is based on former §4.63(a). It contains particular standards applicable to the non-degree program.

Section 4.63(d)(1) is based on former §4.63(b)(4). There are no substantive changes. Section 4.63(d)(2) is added to state explicitly that there is no service requirement under the non-degree program; this conforms to current practice and was implicit in the former rules. Section 4.63(d)(3) is based on former §4.64(d)(7) and (8). It now permits the executive director to defer or extend repayment in the best interest of the department.

FISCAL NOTE

James Bass, Director, Finance Division, has determined that for each of the first five-years the repeals and new sections are in effect, there will be no fiscal implications for state or local governments as a result of enforcing or administering the repeals and new sections. There are no anticipated economic costs for persons required to comply with the sections as proposed.

Diana L. Isabel, Director, Human Resources Division, has certified that there will be no significant impact on local economies or overall employment as a result of enforcing or administering the repeals and new sections.

PUBLIC BENEFIT

Ms. Isabel has also determined that for each year of the first five years the sections are in effect, the public benefit anticipated as a result of enforcing or administering the repeals and new sections will be will be better educated and trained state employees. There will be no adverse economic effect on small businesses.

SUBMITTAL OF COMMENTS

Written comments on the proposed repeals and new sections may be submitted to Diana L. Isabel, Director, Human Resources Division, 125 East 11th Street, Austin, Texas 78701-2483. The deadline for receipt of comments is 5:00 p.m. on January 28, 2002.

43 TAC §§4.60 - 4.64

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Department of Transportation or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

STATUTORY AUTHORITY

The repeals are proposed under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and more specifically, Government Code, §656.048 which requires state agencies to adopt rules relating to the eligibility of the department's administrators and employees for training and education supported by the state agencies and the obligations assumed by the administrators and employees on receiving the training and education.

No statutes, articles, or codes are affected by the proposed repeals.

§4.60.Purpose and Scope

§4.61.Definitions

§4.62.Employee Training

§4.63.Education Programs

§4.64.Employee Obligations

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on December 14, 2001.

TRD-200107884

Richard D. Monroe

General Counsel

Texas Department of Transportation

Earliest possible date of adoption: January 27, 2002

For further information, please call: (512) 463-8630


43 TAC §§4.60 - 4.63

STATUTORY AUTHORITY

The new sections are proposed under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and more specifically, Government Code, §656.048 which requires state agencies to adopt rules relating to the eligibility of the department's administrators and employees for training and education supported by the state agencies and the obligations assumed by the administrators and employees on receiving the training and education.

No statutes, articles, or codes are affected by the proposed new sections.

§4.60.Purpose.

It is the policy of the Texas Department of Transportation 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.

§4.61.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Assistance - Financial aid provided by the department to its employees for education expenses.

(2) Department - The Texas Department of Transportation.

(3) Director - The director of the Human Resources Division or the director's designee not below the level of section director.

(4) Employee's executive officer - An employee's district engineer, division director, or office director, or that person's designee.

(5) Executive director - The executive director of the department or the executive director's designee not below the level of assistant executive director.

(6) Good standing - Meeting of all performance standards in an employee's most recent performance evaluation and not being on probation.

(7) Hardship - A serious illness, family emergency, or extenuating circumstance that is beyond the control of the employee and that reasonably precludes the employee from complying with an assistance agreement.

(8) Institution - A college or university accredited by a major regional academic accrediting agency for institutions of higher learning, such as the Southern Association of Colleges and Schools.

(9) Program Selection Committee - A committee that is appointed by the executive director and that selects employees who will participate in the full-time master's program.

§4.62.General Standards.

(a) Applicability. This section establishes standards applicable to all assistance unless different standards are established for a particular program as described in §4.63 of this subchapter.

(b) Eligibility. An employee must meet the following requirements to be eligible for an assistance program.

(1) The employee must be a full-time employee. Summer employees and temporary recruitment program employees are ineligible, except for the non-degree program.

(2) The employee must be in good standing with the department.

(3) The employee must complete an assistance agreement setting forth the conditions of assistance, including the amount of the assistance, the requirements of continued eligibility, and the employee's repayment responsibilities.

(c) Scope of assistance.

(1) Type of institution.

(A) Assistance will be authorized only for courses and degrees earned through an institution.

(B) All courses, whether offered in person, through correspondence, or over the internet, must be taken if possible from a public institution in Texas.

(C) If an employee is enrolled in a degree program in a private institution in Texas, the employee must earn as many credits as possible at a Texas public institution if that will reduce the amount of required assistance. Courses, whether offered in person, through correspondence, or over the internet, may be taken from a Texas private institution only if:

(i) no public institution offers a comparable course that can reasonably be attended by the employee during non-duty hours;

(ii) no public institution offers the approved courses or degree;

(iii) the employee cannot meet the admission requirements of a public institution;

(iv) the completion of the degree or course at a private institution would cost less than at a public institution; or

(v) the employee agrees the department will only provide the amount of assistance that would have been required if the employee had attended a public institution.

(D) An employee may take a correspondence course or an internet course offered by an out-of-state institution only if the course is not available from any private or public institution in Texas, whether in person, as a correspondence course, or over the internet.

(2) Eligible expenses. The following expenses are eligible for financial assistance:

(A) tuition;

(B) College Level Equivalency Program exams or similar exams if they relate to a course that is part of the employee's approved degree plan and if the employee scores high enough to receive college credit or a waiver of course requirements;

(C) life experience assessments for which the employee obtains a credit if the credit is part of the employee's approved degree plan; and

(D) required fees and books.

(3) Use of state property. An employee participating in a program may use the department's self-service copy machines, typewriters, calculators, copy paper, and microcomputers to complete course assignments during non-duty hours and when use does not interfere with the department's business.

(4) Retaken courses. The department will not pay expenses incurred to retake a course or to take a substitute for a failed course unless the department has been reimbursed for the cost of the failed course.

(d) Conditions of participation.

(1) Grade verification. Each semester an employee shall provide grade reports to the employee's executive officer to verify that the employee received full credit for all courses.

(2) Outside aid. An employee shall provide receipts for all fees and shall promptly report any outside funds received. The department will deduct any amounts received by the employee through grants, scholarships, or other financial aid from the assistance provided to the employee.

(3) Suspension.

(A) The employee's executive officer may suspend an employee for any of the following reasons.

(i) Participation may be suspended indefinitely if an employee is placed on disciplinary probation.

(ii) Participation may be suspended indefinitely if the employee does not meet any obligation or does not maintain eligibility or if the employee's executive officer determines that the employee's participation in an assistance program adversely affects the employee's job performance.

(iii) An employee's participation may be suspended based on extraordinary work requirements as determined by the employee's executive officer.

(B) Suspension will not be considered a failure to remain active in the program.

(e) Service requirement. An employee shall agree to work for the department in return for assistance. This service requirement shall begin 30 days after the date the employee receives the degree if the employee meets all conditions of employment and eligibility at that time.

(f) Repayment.

(1) Circumstances requiring repayment.

(A) An employee who voluntarily withdraws from an assistance program or who separates from department employment shall repay all assistance provided by the department for courses taken under the assistance agreement.

(B) An employee who does not meet all conditions of employment and eligibility during a service requirement or who does not complete a service requirement in its entirety shall repay all assistance provided by the department. Repayment shall not be prorated or reduced because a portion of a service requirement has been fulfilled.

(2) Failure to pass course. An employee who does not pass a course must repay funds provided by the department for that course. If the employee repays the department for the course, the employee may continue in the program. If the employee does not repay the department for the course, no additional assistance will be provided. An employee in a continuing program must repay the debt before the next semester to continue participation in the assistance program.

(3) Repayment schedule. The executive officer will establish a repayment schedule and send a copy to the director and to the Finance Division. Employees shall follow the repayment schedule set by the department. The repayment schedule will consist of:

(A) up to 60 equal monthly installments beginning 90 days after employment or participation ceases; and

(B) minimum installments of no less than $20 based on the employee's ability to repay and the amount owed.

(4) Costs of collection. An employee is liable to the department for any reasonable expense incurred in obtaining payment, including reasonable attorney's fees.

(5) Credit agencies. The department may notify credit agencies if an employee does not repay the department.

(g) Cancellation.

(1) Grounds. The department will cancel an employee's participation if the employee:

(A) withdraws from the approved institution;

(B) is removed or prohibited from attending the approved institution;

(C) does not comply with any term of the assistance agreement; or

(D) is terminated from the department while participating in a program or before completion of a service requirement.

(2) Resumption of eligibility. If the department cancels an employee's participation, the employee will no longer be eligible for assistance unless the employee has fully repaid the department and:

(A) the employee demonstrates that the cancellation resulted from hardship; or

(B) two years have elapsed since the employee's participation was canceled.

§4.63.Particular Programs.

(a) Degree programs. The department offers two degree programs, the job-related degree program and the non-job-related degree program. These programs provide assistance to employees who continue to work while earning their degrees.

(1) In general.

(A) Eligibility. An employee must meet the following additional requirements to be eligible for a degree program.

(i) The employee must have at least 12 months of service time with the department for an undergraduate degree and at least 24 months for a graduate degree.

(ii) The employee must have written acceptance from an institution and a degree plan signed by the institution's representative.

(iii) The employee's executive officer must approve the employee's participation. If the employee is seeking a doctoral degree, the executive director must also approve the employee's participation.

(B) Elective courses. An employee's executive officer may reject an elective course if it is not related to the employee's duties unless rejection of the elective will extend the employee's time in the program. Substitutions will not be made for any courses required for a degree.

(C) Conditions of participation. An employee's executive officer will reconsider the employee's participation in the program each semester. An employee must meet the following additional standards to maintain eligibility.

(i) The employee must be enrolled at an approved institution and in a course of instruction leading toward an approved degree.

(ii) The employee must be enrolled at least two semesters per school year. The employee's executive officer may waive this requirement in writing if a copy of the written waiver is sent to the director.

(D) Use of state time. Department duty hours may not be used for attending classes, studying, or other activities associated with a degree program. An employee may use annual leave, flextime, or compensatory time with prior written approval from the employee's supervisor. With the approval of the employee's executive officer, an employee may change the employee's work status from full-time to part-time to accommodate class scheduling.

(E) Repayment. The executive director may approve a deferral or an extension of the repayment period or the reduction or cancellation of debt or service requirements in the best interest of the department or if an employee demonstrates hardship. Deferral or extension of repayment does not relieve the employee of the responsibility to repay the funds owed.

(2) Job-related degree program.

(A) Eligibility. To participate in the job-related degree program, an employee must seek enrollment and participation in a field of study that:

(i) relates to the employee's current assigned work and position;

(ii) enables the employee to meet increased demands of the employee's job assignment; or

(iii) is required for the employee to progress in the employee's career ladder.

(B) Service requirement. An employee shall work for the department for one year after completing the program.

(3) Non-job-related degree program.

(A) Eligibility. To participate in the non-job-related degree program, an employee must seek enrollment and participation in a field of study that meets minimum requirements for an occupation in which the department anticipates staffing needs. The employee must have demonstrated an aptitude through job performance and receive the approval of the employee's executive officer and the concurrence of the director.

(B) Service requirement. An employee shall work for the department for two years after receiving an undergraduate degree and for three years after receiving a graduate degree.

(b) Full-time master's program. The department offers a full-time master's program, under which an employee may attend school full-time while receiving full salary.

(1) Eligibility. An employee must meet the following additional requirements to be eligible for the program.

(A) The employee must have at least 5 years of service time with the department, or for engineering disciplines, at least 4 years and a Texas professional engineering license.

(B) The employee must submit a statement of career goals and research interests.

(C) The employee must have written acceptance from an institution and a degree plan signed by the institution's representative.

(D) The employee's executive officer must nominate the employee and the Program Selection Committee must select the employee based on academic qualifications and work experience.

(E) The employee must have an undergraduate degree that is approved as an appropriate base for the desired graduate field of study by the Program Selection Committee.

(2) Elective courses. The director may reject an elective course if it is not related to the employee's duties. Substitutions will not be made for any courses required for a degree.

(3) Conditions of participation. The employee must be enrolled continuously for no more than four semesters, including the summer semester if one is offered, in an institution in a course of instruction leading to a master's degree in the approved major field of study. The director may approve an extension if the employee's approved course of study requires additional time to complete.

(4) Scope of assistance.

(A) Eligible expenses.

(i) The employee will continue to receive a full salary.

(ii) The executive director may approve reimbursement for relocation costs.

(B) Use of state time. Department duty hours may be used for attending classes, studying, or other activities associated with the program.

(5) Service requirement. An employee shall work for the department for three years after completing the program.

(6) Repayment.

(A) For employees not performing their duties for three or more months while participating in the program, the repayment obligation shall include salary not attributable to paid vacation or compensatory leave.

(B) By minute order the Texas Transportation Commission may approve the reduction or cancellation of debt or service requirements if an employee demonstrates hardship.

(C) The executive director may approve a deferral or an extension of the repayment period if an employee demonstrates hardship. Deferral or extension of repayment does not relieve the employee of the responsibility to repay the funds owed.

(7) Cancellation. The department will cancel an employee's participation if the employee does not complete the program in the required time, including any extensions.

(c) Full-time degree completion program. The department offers a full-time degree completion program, under which an employee who has already earned substantial credits toward a bachelor's degree may attend school full-time to complete those requirements.

(1) Eligibility. An employee must meet the following additional requirements to be eligible for the program.

(A) The employee must have at least 12 months of service time with the department.

(B) The employee must have written acceptance from an institution and a degree plan signed by the institution's representative for the number of credit hours required for the approved degree.

(C) The employee's executive officer must approve the employee's participation.

(D) The employee must be able to complete the degree in 42 credit hours or less.

(E) The executive director must designate the field of study as a critical field due to a shortage of employees in jobs related to that field of study.

(2) Elective courses. An employee's executive officer may reject an elective course if it is not related to the employee's duties unless rejection of the elective will extend the employee's time in the program. Substitutions will not be made for any courses required for a degree.

(3) Conditions of participation.

(A) An employee's executive officer will reconsider the employee's participation in the program each semester. As part of this reconsideration, the employee's executive officer will review the employee's degree plan and course schedule to ensure that appropriate electives are selected.

(B) The employee must be enrolled continuously for no more than three semesters in an institution in a course of instruction leading to a bachelor's degree in the approved major field of study. The director may approve an extension if the employee's approved course of study requires additional time to complete.

(C) During each semester in which an employee is receiving a full salary, the employee shall work full-time, attend school full-time, or work and attend school in a combination approved by the director.

(4) Scope of assistance.

(A) Eligible expenses. The employee will continue to receive a full salary.

(B) Use of state time. Department duty hours may be used for attending classes, studying, or other activities associated with the program.

(5) Service requirement. An employee shall work for the department for three years after completing the program.

(6) Repayment.

(A) For employees not performing their duties for three or more months while participating in the program, the repayment obligation shall include salary not attributable to paid vacation or compensatory leave.

(B) By minute order the Texas Transportation Commission may approve the reduction or cancellation of debt or service requirements if an employee demonstrates hardship.

(C) The executive director may approve a deferral or an extension of the repayment period if an employee demonstrates hardship. Deferral or extension of repayment does not relieve the employee of the responsibility to repay the funds owed.

(7) Cancellation. The department will cancel an employee's participation if the employee does not complete the program in the required time, including any extensions.

(d) Non-degree program. The department offers a non-degree program, under which an employee may, as part of the employee's developmental plan, take courses to improve the employee's knowledge and skills to meet current job requirements while continuing to work.

(1) Eligibility. Any full-time department employee, including a summer employee or a temporary recruitment program employee, is eligible for the non-degree program with the approval of the employee's executive officer.

(2) Service requirement. There is no service requirement for a course taken under the non-degree program.

(3) Repayment. The executive director may approve a deferral or an extension of the repayment period or the reduction or cancellation of debt or service requirements in the best interest of the department or if an employee demonstrates hardship. Deferral or extension of repayment does not relieve the employee of the responsibility to repay the funds owed.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on December 14, 2001.

TRD-200107885

Richard D. Monroe

General Counsel

Texas Department of Transportation

Earliest possible date of adoption: January 27, 2002

For further information, please call: (512) 463-8630


Chapter 15. TRANSPORTATION PLANNING AND PROGRAMMING

Subchapter E. FEDERAL, STATE, AND LOCAL PARTICIPATION

43 TAC §15.54

The Texas Department of Transportation proposes amendments to §15.54, Construction, concerning federal, state, and local participation in highway improvement projects.

Transportation Code, Chapter 203, provides that the Texas Transportation Commission (commission) may layout, construct, maintain, and operate a modern state highway system, with emphasis on the construction of controlled access highways. To promote public safety, facilitate the movement of traffic, preserve the public's financial investment in highways, and promote national defense, the commission may convert where necessary an existing street, road, or highway into a controlled access highway in accordance with modern standards of speed and safety.

This chapter also authorizes the commission to designate a state highway as a controlled access highway, deny access to or from a controlled access highway, designate the location, type and extent of access to be permitted to a controlled access highway, and to close a public or private way at or near its intersection with a controlled access highway.

Due to the significant cost associated with the construction and maintenance of controlled access highways, it is imperative that they provide maximum traffic handling capacity for as long as practical. Adjacent development and access points along controlled access highways contribute to congestion and early deterioration of the operation of the main travel lanes, thereby reducing the ability of the state highway system to safely and efficiently move higher volumes of traffic. By limiting construction of new frontage roads, it is anticipated that the capacity of the main travel lanes will be preserved by promoting future development along parallel or perpendicular facilities. In addition, limiting the construction of new frontage roads will allow scarce state highway funding to be used to address other needed highway improvement projects across the state.

The amendments remove the consideration of funding for a frontage road in §15.54(d)(3) through (5) from the decision of whether to build a frontage road. Elimination of these paragraphs will ensure administrative authorization of all new frontage road construction in the state and provide more concise requirements for inclusion of frontage road construction and provisions for added access to new and existing controlled access facilities.

The amendments state that it is the intent of the department to not construct frontage roads on new or existing controlled access facilities unless approved by the executive director or designee. Frontage road construction may be approved when needed to improve the safety and efficient operations of the state highway corridor, there is a need to resolve a landlock condition on the remainder of a parcel of land that has a value that exceeds the cost of the frontage road, or if the cost to purchase the right of access control would exceed the cost of the frontage road. Frontage roads may also be constructed when needed to restore local circulation due to roads or streets being severed. The commission may approve additional frontage roads when construction is determined to be in the best interest of the state.

Where the department owns the right of access control, public or private access will not be allowed to controlled access highways, including frontage roads, from abutting property except in certain circumstances. Access to a specific property will be allowed when a frontage road is constructed to resolve a landlock condition for that property or because the cost to purchase the access rights to that property was too great. Otherwise, the commission may approve a site specific exception to allow access after considering the safety and operation of the state highway corridor, prior commitments or development based on the previous frontage road policy, and whether such access is determined to be in the best interest of the state. Such site specific exceptions must be approved by the commission prior to the department accepting any funds or consideration for engineering, development, or construction of frontage roads where it is anticipated that additional access will be requested. All cost associated with preparing the request shall be at the sole expense of the requestor.

James Bass, Director, Finance Division, has determined that for the first five-year period the amendments are in effect, there will be no direct fiscal implications for state or local governments as a result of enforcing or administering the amendments. There are no anticipated economic costs for persons required to comply with the amendments as proposed.

Kenneth Bohuslav, Director, Design Division, has certified that there will be no significant impact on local economies or overall employment as a result of enforcing or administering the amendments as future development may occur along parallel or perpendicular facilities. By not encouraging development fronting the state highway corridor, freeway capacity will be maintained for longer periods of time and system expansion can be accomplished with fewer impacts to developed property.

Mr. Bohuslav has also determined that for each year of the first five years the amendments are in effect, the public benefits anticipated as a result of enforcing or administering the amendments will be to provide savings to the state by not constructing frontage roads along controlled access facilities and that mainlane capacity will be further preserved by this effort. There will be no adverse effect on small businesses.

Pursuant to the Administrative Procedure Act, Government Code, Chapter 2001, the Texas Department of Transportation will conduct six public hearings to receive comments concerning the proposed amendments. Each public hearing will begin at 4:00 p.m. local time and last at least until 6:00 p.m. on the following dates and at the following locations:

January 8, 2002: City of San Antonio Council Chambers; Municipal Plaza Building, 103 Main Plaza; San Antonio, Texas 78205.

January 15, 2002: Irving Arts Center; 3333 North MacArthur Boulevard; Irving, Texas 75062.

January 18, 2002: Houston-Galveston Area Council (HGAC); 3555 Timmons Lane; Houston, Texas 77027.

January 22, 2002: Lubbock Chamber of Commerce; 1301 Broadway; Lubbock, Texas 79401.

January 23, 2002: McAllen Tourist Center; 1300 South 10th Street; McAllen, Texas 78501.

January 24, 2002: Ysleta Independent School District (YISD); Administrative Office; 9600 Sims Drive; El Paso, Texas 79925.

These public hearings will be conducted in accordance with the procedures specified in 43 TAC §1.5. Prior to each hearing, department employees will be available beginning at 2:00 p.m. to conduct an open house where informal discussion can occur to further clarify the proposed amendments. Comments made to department staff during the open house will not be considered part of the public comment made regarding these proposed amendments. Those desiring to make official comments or presentations may register starting at 2:00 p.m. Any interested persons may appear and offer comments, either orally or in writing; however, questioning of those making presentations will be reserved exclusively to the presiding officer as may be necessary to ensure a complete record. While any person with pertinent comments will be granted an opportunity to present them during the course of the hearing, the presiding officer reserves the right to restrict testimony in terms of time and repetitive content. Organizations, associations, or groups are encouraged to present their commonly held views and identical or similar comments through a representative member when possible. Comments on the proposed text should include appropriate citations to sections, subsections, paragraphs, etc. for proper reference. Any suggestions or requests for alternative language or other revisions to the proposed text should be submitted in written form. Presentations must remain pertinent to the issues being discussed. A person may not assign a portion of his or her time to another speaker. Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services such as interpreters for persons who are deaf or hearing impaired, readers, large print or Braille, are requested to contact Randall Dillard, Director, Public Information Office, 125 East 11th Street, Austin, Texas 78701-2483, 512/463-8588 at least two working days prior to the hearing so that appropriate services can be provided.

Written comments on the proposed amendments may be submitted to Kenneth Bohuslav, Director, Design Division, 125 East 11th Street, Austin, Texas 78701-2483. The deadline for receipt of comments is 5:00 p.m. on February 4, 2002.

The amendments are proposed for adoption under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation.

No statutes, articles, or codes are affected by the proposed amendments.

§15.54.Construction.

(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) Designation. All facilities to be developed as freeways or relief routes shall be designated by the commission as controlled access highways pursuant to Transportation Code, Chapter 203. The department may also designate discrete areas of control of access on non-controlled access state highway facilities as necessary to facilitate the flow of traffic and promote the public safety and welfare.

(2) Access to controlled access highways.

(A) Existing access. It is the intent of the department when developing expanded controlled access facilities that if a property owner has access to the system prior to the expansion, that property owner would have access to a frontage road on the system after development. Exceptions under this provision would be for unusual safety or circuity situations.

(B) New access. Public or private access will not be allowed to controlled access highways or frontage roads, except where a frontage road is provided under paragraph (3)(A)(i)(III) or (3)(B)(i)(III) of this subsection or the commission approves a site specific exception.

(i) Request for exception. Approval for a site specific exception to allow access rights to a facility must be approved by the commission prior to accepting any funds or consideration for engineering, development, or construction of frontage roads for which there is an anticipation of allowing access rights. Any cost of traffic studies of access appraisals required under this section shall be at the sole expense and risk of those making the request.

(ii) Approval. The commission may approve an exception after considering:

(I) impacts on the safety and operation of the state highway corridor as justified by an engineering study approved by the department;

(II) significant prior commitments or development work based on the previous frontage road policy; and

(III) whether access is judged to be in the best interest of the state.

(C) Disposal of access rights. When the commission approves a release of access control to property adjoining the facility, the sale or disposal of access rights shall be accomplished in accordance with §§21.101-21.104 of this title (relating to Disposal of Real Estate Interests).

(3) Frontage road provision.

(A) New location freeways and relief routes. For new location freeways and relief routes, it is the intent of the department not to construct frontage roads.

(i) The department may approve frontage road construction when the executive director or designee determines that:

(I) short sections of frontage road are needed to improve the safety and operations of the main travel lanes;

(II) the geometric design of an interchange requires the provision of a short section of frontage road for operational purposes;

(III) there is no other feasible means to resolve a landlock condition on the remainder of a parcel of land that has a value that exceeds the cost of the frontage road;

(IV) there is no other feasible means to restore circulation of local traffic due to state or local roads or streets being severed; or

(V) frontage roads would be beneficial to the safety and operation of the state highway corridor or the local road system as justified by an engineering study approved by the department.

(ii) The commission may approve frontage road construction when they determine that such construction is in the best interest of the state.

(B) Existing facilities designated as controlled access. For existing freeways and other facilities designated as controlled access, it is the intent of the department not to construct new or additional frontage roads.

(i) The department may approve frontage road construction when the executive director or designee determines that:

(I) short sections of frontage road are needed to improve the safety and operations of the main travel lanes;

(II) the geometric design of an interchange requires the provision of a short section of frontage road for operational purposes;

(III) the anticipated cost to purchase the right of access control would exceed the cost of the frontage road;

(IV) there is no other feasible means to restore circulation of local traffic due to state or local roads or streets being severed; or

(V) frontage roads would be beneficial to the safety and operation of the state highway corridor or the local road system as justified by an engineering study approved by the department.

(ii) The commission may approve frontage road construction when they determine that such construction is in the best interest of the state.

(4) Backage roads.

(A) For purposes of this paragraph, "backage road" means a local street or road that is generally parallel to an arterial highway but that does not abut the highway right of way. Direct access for businesses or properties located between the highway and the backage road is provided to the backage road rather than the highway. Backage roads also provide access to properties located on the opposite side of the backage road from the highway.

(B) In those instances where backage roads are necessary to restore circulation or can be utilized as a means to resolve a landlock condition on a remaining parcel of land, backage roads may be included in the freeway construction project on a standard participation basis as established in Appendix A of §15.55(c) of this subchapter. Commission approval shall be obtained prior to the department entering into any agreements to provide backage roads in conjunction with a department project. Backage roads will not be considered service projects as defined in §15.56 of this subchapter.

[ (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 §§21.101-21.104 of this title (relating to Disposal of Real Estate Interests).]

[ (5) Access driveway facilities shall be for securing access to abutting property. Costs and provision thereof shall be in accordance with the criteria and responsibilities established in §§11.50-11.53 of this title (relating to Access Driveways 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 title (relating to Construction Cost Participation).

(3) 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, and after the state establishes that the drainage plan is logical and beneficial to the state highway system, and 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 after construction on the drainage channel has begun or there is sufficient evidence to insure that the drainage plan will be implemented, 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.

(4) Where a state highway is in existence, and there is a desire of others to cross the existing highway at a place where there is not an existing crossing for drainage, then those desiring to cross the highway must provide for the entire cost of the construction and maintenance of the facility which will serve their purpose while at the same time adequately serving the highway traffic. The design, construction, operation, and maintenance procedures for the facility within state highway right of way must be acceptable to the department.

(5) In the event the local government involved expresses a desire to join the department in the drainage system in order to divert drainage into the system, the local government shall pay for the entire cost of collecting and carrying the diverted water to the state's system and shall contribute its proportional share of the cost of the system and outfall based on the cubic feet per second of additional water diverted to it when compared to the total cubic feet per second of water to be 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, it will be expected that 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 purpose 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 consideration.

(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) Where a highway is in existence, and there is a desire of others to cross the existing highway with an irrigation facility at a highway point where there is not an existing crossing facility, then those desiring to cross the highway must provide for the entire cost of the construction and maintenance of the irrigation facility which will serve their purpose while at the same time adequately serve the highway traffic. The design, construction, operation, and maintenance procedures for the facility within highway right of way must be acceptable to the department.

(h) Continuous and safety lighting systems and traffic signals. For the installation, maintenance, and operation of continuous and safety lighting systems and traffic signals, the local government shall be responsible for providing matching funds as shown in Appendix A of §15.55 of this title (relating to Construction Cost Participation), except as adjusted under that section. Such installation, maintenance, and operation 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).

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on December 14, 2001.

TRD-200107886

Richard D. Monroe

General Counsel

Texas Department of Transportation

Earliest possible date of adoption: January 27, 2002

For further information, please call: (512) 463-8630


Chapter 17. VEHICLE TITLES AND REGISTRATION

The Texas Department of Transportation proposes amendments to §§17.1-17.3, concerning motor vehicle certificates of title, and §§17.21, 17.22, and 17.52, concerning motor vehicle registration.

EXPLANATION OF PROPOSED AMENDMENTS

House Bill 642, 77th Legislature, 2001, amended Transportation Code, Chapter 501, to eliminate the requirement that a "Duplicate Original" certificate of title be issued and mailed to the recorded owner of a motor vehicle when a lien is recorded on a certificate of title. Transportation Code, Chapter 501, was also amended by eliminating the term "Original" when referring to the negotiable certificate of title; to allow use of a registration receipt or title receipt to evidence title; and to allow the department to provide, by rule, for issuance of a receipt for registration purposes only.

House Bill 2134, 77th Legislature, 2001, added Transportation Code §501.0276, amended Transportation Code §502.009, and added Transportation Code §502.1535, relating to vehicle emissions tests on resale in affected counties.

House Bill 2217, 77th Legislature, 2001, added Transportation Code, §501.036, to allow the issuance of a certificate of title for farm semitrailers with a gross weight of more than 4,000 pounds that are registered in accordance with Transportation Code, §502.276. Previously, farm semitrailers were exempt from the Certificate of Title Act.

House Bill 2204, 77th Legislature, 2001, exempts electric bicycles from the need to be registered.

House Bill 1378, 77th Legislature, 2001, exempts motorized mobility devices from the need to be registered.

House Bill 2409, 76th Legislature, 1999, amended Transportation Code, §548.256, to eliminate the requirement of an identification certificate before a vehicle is titled and to create exceptions to the need for an identification certificate before a vehicle is registered.

Senate Bill 432, 76th Legislature, 1999, permitted owners to specify registration periods under some circumstances.

Throughout the affected sections, terms and cross-references have been updated, grammar has been improved, and language has been simplified and clarified.

Section 17.1 is amended to update the citation to the Certificate of Title Act and to remove unnecessary verbiage.

Existing §17.2(5) is amended to clarify that the bond release letter requirements apply only to motor vehicles that are imported into the United States.

Existing §17.2(22) is amended to delete the definition of importer. This definition is not currently used in the rules.

Existing §17.2(32) is amended to clarify that motor vehicle importation forms refer only to vehicles that are imported into the United States.

Existing §17.2(33) and (37) is amended to delete the definitions of negotiable and non-negotiable titles. This distinction was eliminated by HB 642.

Section §17.3(a)(2)(D) is added and §17.3(a)(3)(B) and §17.3(a)(4) are amended to conform the rules to HB 2217, which allowed certificates of title to be issued to farm semitrailers with a gross weight of more than 4,000 pounds if they are registered in accordance with Transportation Code, §502.276.

Section 17.3(b)(4)(C) is amended by clarifying that applicants for a certificate of title must provide proof of financial responsibility.

Existing §17.3(b)(4)(D) is amended to conform the rules to HB 2409, 76th Legislature, 1999.

Section 17.3(c)(3) is amended to clarify that it refers only to vehicles imported into the United States.

Section 17.3(d) is amended throughout to conform the rules to HB 642, which abolished non-negotiable or duplicate certificates of title.

Section 17.3(d)(1) is amended to eliminate the reference to an original certificate of title.

Section 17.3(d)(2) is amended to permit a title application receipt to be used as evidence of title, except for purposes of transferring an ownership interest or establishing a lien. Because title and registration receipts are always issued on receipt of an application, the explanations in §17.3(d)(2)(A) and (B) are no longer necessary.

Existing §17.3(e)(4) is deleted because the information is clearly set forth in Transportation Code, §501.134.

Existing §17.21(8) and (9) is deleted and is replaced by new §17.21(31) and (47) to place the definitions in alphabetical order without inverting the normal word order. The definitions are altered to conform more closely to those contained in Transportation Code, §502.001.

New §17.21(17) is added to conform the rules to HB 2204 and to define electric bicycle.

Existing §17.21(24) is revised to include former military vehicles in the definition of exhibition vehicles, as specified in Transportation Code, §502.275.

New §17.21(32) is added to conform the rules to HB 1378 and to define motorized mobility device.

Existing §17.21(34) is amended to delete the definition of official. This definition is not currently used in the rules.

Section 17.21(35) is amended to conform the definition of owner more closely to the definition contained in Transportation Code, §502.001.

Section 17.21(38) is amended to conform the rules to SB 432, 76th Legislature, 1999, by allowing registration periods of variable length.

Existing §17.21(49) is amended to conform the definition of tow truck more closely to the definition contained in Transportation Code, §502.281.

Existing §17.21(52) is amended to conform the definition of vehicle more closely to the definition contained in Transportation Code, §502.001.

New §17.22(b)(4) is added to conform the rules to HB 642 and to provide criteria for initial registration when the applicant is not simultaneously applying for a certificate of title. The necessary information is consistent with the information ordinarily submitted in connection with a combined application for title and registration. The new paragraph makes clear that a registration receipt cannot be used to transfer ownership or create a lien.

Section 17.22(f)(2) is amended to conform the rules to HB 2409, 76th Legislature, 1999.

Existing §17.52(b)(3) and (4) is deleted and is replaced by new §17.52(1) and (7) to conform more closely to the terminology used in HB 2134 and elsewhere in the section.

Section 17.52(d) is added to conform the rules to HB 2134. It provides that a vehicle is not eligible for a title receipt, a certificate of title, or registration in an affected county unless proof is presented to the county assessor-collector that the vehicle has passed the emissions test. An exemption is provided for vehicles used fewer than 60 days in an affected county.

FISCAL NOTE

James Bass, Director, Finance Division, has determined that for each of the first five-years the amendments are in effect, there will be fiscal implications for state or local governments as a result of enforcing or administering the amendments. The effect on state government for Fiscal Years 2002-2006 will be an estimated annual reduction in cost to the state of $882,000. There will be no fiscal implications for local governments. There are no anticipated economic costs for persons required to comply with the sections as proposed.

Jerry L. Dike, Director, Vehicle Titles and Registration Division, has certified that there will be no significant impact on local economies or overall employment as a result of enforcing or administering the amendments.

PUBLIC BENEFIT

Mr. Dike has also determined that for each year of the first five years the sections are in effect, the public benefit anticipated as a result of enforcing or administering the amendments will be to provide the public with current and accurate information regarding vehicle emission tests on resale, issuance of certificates of title, and for filing of applications for registration purposes only. The amendments will also provide a permissive issuance of a certificate of title for those farm semitrailers with a gross weight of more than 4,000 pounds that are registered in compliance with Transportation Code, §501.036. Another benefit will be to provide for the use of electric bicycles and motorized mobility devices without registration. There will be no adverse economic effect on small businesses.

SUBMITTAL OF COMMENTS

Written comments on the proposed amendments may be submitted to Jerry L. Dike, Director, Vehicle Titles and Registration Division, 125 East 11th Street, Austin, Texas 78701-2483. The deadline for receipt of comments is 5:00 p.m. on January 28, 2002.

Subchapter A. MOTOR VEHICLE CERTIFICATES OF TITLE

43 TAC §§17.1 - 17.3

STATUTORY AUTHORITY

The amendments are proposed under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and more specifically, Transportation Code, Chapter 501, which authorizes the department to carry out the provisions of those laws governing issuance of motor vehicle certificates of title, and Transportation Code, Chapter 502 which authorizes the department to carry out the provisions of those laws governing issuance of motor vehicle registration.

No statutes, articles, or codes are affected by the proposed amendments.

§17.1.Purpose and Scope.

The Certificate of Title Act, Transportation Code, Chapter 501 [ Texas Civil Statutes, Article 6687-1 ], charges the department with the responsibility of issuing certificates of title for motor vehicles, unless they [ such motor vehicles ] are otherwise exempted by law. For [ In order for ] the department to efficiently and effectively issue motor vehicle certificates of titles, maintain records, and collect the applicable fees [ consistent with the Certificate of Title Act ], and to ensure proper application by motor vehicle owners [ in accordance with statutory provisions ], the sections under this subchapter prescribe the policies and procedures for the application for and issuance of motor vehicle certificates of titles.

§17.2.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Actual cash value - The market value of a motor vehicle as determined:

(A) from publications commonly used by the automotive and insurance industries to establish the value 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 by the company in a uniform manner.

(2) Automobile recycler - A person in the business of dealing in salvage motor vehicles for the purpose of dismantling the vehicles to sell used parts, or a person otherwise engaged in the business of acquiring, selling, or dealing in salvage parts for reuse or resale as parts. The term includes a dealer in used motor vehicle parts.

(3) Alias - The name of a vehicle owner reflected on a [ the ] certificate of title, when the name on the certificate of title is different from [ than ] the name of the legal owner of the vehicle.

(4) Alias certificate of title - A title document issued by the department for a vehicle that is used by an exempt law enforcement agency in covert criminal investigations.

(5) Bond release letter - Written notification from the United States Department of Transportation authorizing United States Customs to release the bond posted for a [ an imported ] motor vehicle imported into the United States to ensure compliance with federal motor vehicle safety standards.

(6) Casual sale - The sale at auction of not more than one nonrepairable motor vehicle or new or late model salvage motor vehicle to the same person during a calendar year.

(7) Certificate of title - A written instrument that may be issued solely by and under the authority of the department and that reflects the transferor, transferee, vehicle description, license plate and lien information, and rights of survivorship agreement as specified in this subchapter or as required by the department.

(8) Certificate of title application - A form prescribed by the division director that reflects the information required by the department to create a motor vehicle title record.

(9) Date of sale - The date of the transfer of possession of a specific vehicle from a seller to a purchaser.

(10) Department - The Texas Department of Transportation.

(11) Distributor - A person engaged in the business of selling to a dealer motor vehicles bought from a manufacturer.

(12) Division director - The director of the department's Vehicle Titles and Registration Division.

(13) 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.

(14) Exempt agency - A governmental body exempt by law from paying registration fees for motor vehicles.

(15) 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.

(16) First sale - A bargain, sale, transfer, or delivery with intent to pass an interest, other than a lien, and accompanied by registration, of a motor vehicle that has not been previously registered in this state or elsewhere.

(17) Flood damage - A remark that is initially indicated on a salvage or nonrepairable motor vehicle certificate of title to denote that the damage to the vehicle was caused exclusively by flood and that is carried forward on [ upon ] subsequent title issuance.

(18) House moving dolly - An apparatus consisting of metal beams and axles used to move houses. House moving dollies, by nature of their construction and use, actually form [ a ] large semitrailers [ semi-trailer ].

(19) House trailer - A vehicle without automotive power designed for human habitation , [ and ] for carrying persons and property on [ upon ] its own structure , and for being drawn by a motor vehicle, not including [ to include ] manufactured housing.

(20) Identification certificate - A form issued by an inspector of an authorized safety inspection station [ on a vehicle previously registered or titled in another state or country ] in accordance with Transportation Code, §548.256.

(21) Implements of husbandry - Farm implements, machinery, and tools used in tilling the soil, including self-propelled machinery specifically designed or especially adapted for applying plant food materials or agricultural chemicals. This term does not include an implement unless it is designed or adapted for the sole purpose of transporting farm materials or chemicals . This term does not include [ , or ] any passenger car or truck.

[ (22) Importer - A person, except a manufacturer, who brings any used motor vehicle into this state for the purpose of sale within this state.]

(22) [ (23) ] Insurance company - A person authorized to write automobile insurance in Texas or an out-of-state insurance company that pays a loss claim for a motor vehicle in Texas.

(23) [ (24) ] Late model motor vehicle - A motor vehicle with a model year equal to the then current calendar year or one of the five preceding calendar years.

(24) [ (25) ] Late model salvage motor vehicle - A late model motor vehicle, other than a late model vehicle that is a nonrepairable motor vehicle, that is damaged to the extent that the total estimated cost of repairs, other than repairs related to hail damage but including parts and labor, is equal to or greater than an amount equal to 75% of the actual cash value of the vehicle in its predamaged condition.

(25) [ (26) ] Lien - A security interest, as defined in Business and Commerce Code, §1.201(37), of whatsoever kind or character whereby an interest, other than an absolute title, is sought to be held or given in a motor vehicle . This term includes [ , and ] a lien created or given by constitution or statute in a motor vehicle.

(26) [ (27) ] Major component part - One of the following parts of a motor vehicle:

(A) the engine;

(B) the transmission;

(C) the frame;

(D) the right or left front fender;

(E) the hood;

(F) a door allowing entrance to or egress from the passenger compartment of the vehicle;

(G) the front or rear bumper;

(H) the right or left quarter panel;

(I) the deck lid, tailgate, or hatchback;

(J) the cargo box of a pickup truck;

(K) the cab of a truck; or

(L) the body of a passenger vehicle.

(27) [ (28) ] Manufacturer - A person regularly engaged in the business of manufacturing or assembling new motor vehicles, either within this state or elsewhere.

(28) [ (29) ] 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 certificate of title, showing, on appropriate forms prescribed by the department, each subsequent transfer between distributor and dealer, dealer and dealer, and dealer and owner.

(29) [ (30) ] Moped - A motor driven cycle whose attainable speed is not more than 30 miles per hour and that is equipped with a motor that produces not more than two-brake horsepower. If an internal combustion engine is used, the piston displacement may not exceed 50 cubic centimeters and the power drive system may not require the operator to shift gears.

(30) [ (31) ] Motor vehicle - Any motor driven or propelled vehicle required to be registered under the laws of this state; a trailer or semitrailer, other than manufactured housing, that has a gross vehicle weight that exceeds 4,000 pounds; a house trailer; a four-wheel all-terrain vehicle designed by the manufacturer for off-highway use that is not required to be registered under the laws of this state; or a motorcycle, motor-driven cycle, or moped that is not required to be registered under the laws of this state, other than a motorcycle, motor-driven cycle, or moped designed for and used exclusively on a golf course.

(31) [ (32) ] Motor vehicle importation form - A [ An importer's ] 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 [ an imported ] motor vehicle's compliance with federal motor vehicle safety standards.

[ (33) Negotiable title - A title that may be used to transfer an interest or ownership in a motor vehicle, or to establish a new lien.]

(32) [ (34) ] New model motor vehicle - A motor vehicle with a model year that is newer than the current calendar year.

(33) [ (35) ] New model salvage motor vehicle - A new model motor vehicle, other than a new model vehicle that is a nonrepairable motor vehicle, that is damaged to the extent that the total estimated cost of repairs, other than repairs related to hail damage but including parts and labor, is equal to or greater than an amount equal to 75% of the actual cash value of the vehicle in its predamaged condition.

(34) [ (36) ] New motor vehicle - A motor vehicle that has never been the subject of a first sale either within this state or elsewhere.

[ (37) Non-negotiable title - A title that 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.]

(35) [ (38) ] Nonrepairable motor vehicle - A new or late model motor vehicle that is damaged or missing a major component part to the extent that the total estimated cost of repairs to rebuild or reconstruct the vehicle, including parts and labor other than the costs of materials and labor for repainting the vehicle and excluding sales taxes on the total cost of the repairs, and excluding the cost of repairs to repair hail damage, is equal to or greater than an amount equal to 95% of the actual cash value of the vehicle in its predamaged condition.

(36) [ (39) ] Nonrepairable motor vehicle certificate of title - A document issued by the department that evidences ownership of a nonrepairable motor vehicle.

(37) [ (40) ] Non United States standard motor vehicle - A motor vehicle not manufactured in compliance with federal motor vehicle safety standards.

(38) [ (41) ] Obligor - An individual who is required to make payments under the terms of a support order for a child.

(39) [ (42) ] Older model motor vehicle - A motor vehicle that was manufactured in a model year before the sixth preceding model year, including the current model year.

(40) [ (43) ] Other negotiable evidence of ownership - A document, other than a Texas certificate of title or a salvage certificate of title, that relates to a motor vehicle and that the department considers sufficient to support issuance of a Texas certificate of title for the vehicle.

(41) [ (44) ] Out-of-state buyer - A person licensed by another state or jurisdiction in an automotive business if the department has listed the holders of the license as permitted purchasers of salvage motor vehicles or nonrepairable motor vehicles based on substantially similar licensing requirements and on whether salvage vehicle dealers licensed in Texas are permitted to purchase salvage motor vehicles or nonrepairable motor vehicles in the other state or jurisdiction.

(42) [ (45) ] Owner - A person, firm, association, or corporation, other than a manufacturer, importer, distributor, or dealer, claiming title to a motor vehicle, or having a right to operate a motor vehicle pursuant to a lien after the motor vehicle has been the subject of a first sale, except the Federal Government and its agencies, and except the State of Texas and a governmental subdivision or agency not required by law to register motor vehicles owned or used in this State.

(43) [ (46) ] Person - An individual, firm, corporation, company, partnership, or other entity.

(44) [ (47) ] Rebuilder - A person that acquires and repairs, for operation on public highways, five or more new or late model salvage motor vehicles in any 12-month period.

(45) [ (48) ] Rebuilt salvage - A remark indicated on the face of a certificate of title issued by the department that evidences ownership of a rebuilt salvage motor vehicle.

(46) [ (49) ] 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.

(47) [ (50) ] Salvage motor vehicle - A new or late model motor vehicle, other than a new or late model vehicle that is a nonrepairable motor vehicle, that is damaged to the extent that the total estimated cost of repairs, other than repairs related to hail damage but including parts and labor, is equal to or greater than an amount equal to 75% of the actual cash value of the vehicle in its predamaged condition.

(48) [ (51) ] Salvage motor vehicle certificate of title - A document issued by the department that evidences ownership of a salvage motor vehicle.

(49) [ (52) ] Salvage vehicle - A term that refers to both salvage and nonrepairable vehicles.

(50) [ (53) ] Salvage vehicle dealer - A person who is engaged in this state in the business of acquiring, selling, or otherwise dealing in salvage vehicles or vehicle parts of a type required to be covered by a salvage vehicle certificate of title or nonrepairable vehicle certificate of title under a license issued by the department that allows the holder of the license to acquire, sell, dismantle, repair, or otherwise deal in salvage vehicles.

(51) Semitrailer [ (54) Semi-Trailer ] - A vehicle of the trailer type having a gross weight in excess of four thousand (4,000) pounds so designed or used in conjunction with a motor vehicle that some part of its own weight and that of its load rests on [ upon ] or is carried by another vehicle.

(52) [ (55) ] Statement of fact - A written declaration that supports an application for a certificate of title, that is executed by the seller of a motor vehicle or another involved party to a transaction involving [ of ] a motor vehicle, and that clarifies an error made on a certificate of title or other negotiable evidence of ownership. When a written declaration is necessary to correct an odometer disclosure error, the signatures of both the seller and buyer are required.

(53) [ (56) ] Subsequent sale - The bargain, sale, transfer, or delivery of a motor vehicle that has been previously registered or licensed in this state or elsewhere, with intent to pass an interest in the vehicle, other than a lien, regardless of where the bargain, sale, transfer, or delivery occurs, and the registration of the vehicle if registration is required under the laws of this state.

(54) [ (57) ] Token trailer fee - A registration fee paid for certain semitrailers, meeting the qualifications delineated in Transportation Code, §502.167, and used in combination with truck tractors or commercial motor vehicles whose registration is based on [ upon ] a combined gross weight.

(55) [ (58) ] Trailer - Every vehicle having a gross unloaded weight in excess of four thousand (4,000) pounds and designed or used to carry its load wholly on its own structure and to be drawn by a motor vehicle.

(56) [ (59) ] Used motor vehicle - A motor vehicle that has been the subject of a first sale, whether within this state or elsewhere.

(57) [ (60) ] 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.

(58) [ (61) ] Verifiable proof - Additional documentation required of a vehicle owner, lienholder, or agent executing an application for a certified copy of a certificate of title.

(A) Individual applicant. If the applicant is an individual, verifiable proof consists of a copy of a current photo identification issued by this state or by the United States.

(B) Business applicant. If the applicant is a business, verifiable proof consists of a letter of signature authority on original letterhead, a business card, or a copy of employee identification and a copy of current photo identification issued by this state or by the United States.

(C) Power of attorney. If the applicant is a person in whose favor a power of attorney has been executed by the owner or lienholder, verifiable proof consists of the documentation required under subparagraphs (A) or (B) of this subsection both for the owner or lienholder and for the person in whose favor the power of attorney is executed.

§17.3.Motor Vehicle Certificates of Title.

(a) Certificates of title. Unless otherwise exempted by law or this chapter, the owner of any vehicle that is required to be registered in accordance with Transportation Code, Chapter 502, shall apply for a Texas certificate of title in accordance with Transportation Code, Chapter 501.

(1) Motorcycles, motor-driven cycles, and mopeds.

(A) The title requirements of a motorcycle are the same requirements prescribed for any motor vehicle.

(B) A motorcycle, motor-driven cycle, or moped designed for or used exclusively on golf courses is not classified as a motor vehicle and, therefore, title cannot be issued until the unit is registered.

(C) A vehicle that meets the criteria for a moped and has been certified as a moped by the Department of Public Safety will be registered and titled as a moped. If the vehicle does not appear on the list of certified mopeds published by that agency, the vehicle will be treated as a motorcycle for title and registration purposes.

(D) A motor installed on a bicycle must be certified by the Department of Public Safety before the vehicle may be classified as a moped.

(2) Farm vehicles.

(A) The term motor vehicle does not apply to implements of husbandry, which may not be titled.

(B) Farm tractors owned by agencies exempt from registration fees in accordance with Transportation Code, §502.202, are required to be titled and registered with "Exempt" license plates issued in accordance with Transportation Code, §502.201.

(C) Farm 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.

(D) Farm semitrailers with a gross weight of more than 4,000 pounds that are registered in accordance with Transportation Code, §502.276, may be issued Texas certificates of title.

(3) Exemptions from title. Vehicles registered with the following distinguishing license plates may not be titled under Transportation Code, Chapter 501:

(A) vehicles eligible for machinery license plates and permit license plates in accordance with Transportation Code, §502.276[ , and §502.278 ]; and

(B) vehicles eligible for farm trailer license plates in accordance with Transportation Code, §502.163 , with the exception of farm semitrailers with a gross weight of more than 4,000 pounds as referenced in subsection (a)(2)(D) of this section. [ ; and ]

[ (C) vehicles eligible for permit license plates in accordance with Transportation Code, §§502.351-502.353.]

(4) Trailers, semitrailers, and house trailers. Owners of trailers and semitrailers shall apply for and receive a Texas certificate of title for any stand alone (full) trailer, including homemade full trailers, having an empty weight in excess of 4,000 pounds or any semitrailer having a gross weight in excess of 4,000 pounds. Farm semitrailers with a gross weight of more than 4,000 pounds that are registered in accordance with Transportation Code, §502.276, may be issued Texas certificates of title. House trailer-type vehicles must meet the criteria outlined in subparagraph (C) of this paragraph [ in order ] to be titled.

(A) In the absence of a manufacturer's rated carrying capacity for a trailer or semitrailer, 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 [ upon ] 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 designed for living quarters and that is eight body feet or more in width or forty body feet or more in length (not including the hitch), is classified as a mobile home and is titled under the Texas Manufactured Housing Standards Act, Texas Civil Statutes, Article 5221f, administered by the Department of Housing and Community Affairs.

(ii) A house trailer-type vehicle that is less than eight feet in width and less than forty feet in length is classified as a travel trailer and shall be registered and titled.

(iii) A camper trailer shall be titled as a house trailer and shall be registered with travel trailer license plates.

(b) Initial application for certificate of title.

(1) Place of application. When motor vehicle ownership is transferred, except as provided by Transportation Code, Chapters 501 and 502 and by §17.8(a)(1) of this subchapter, a certificate of title application must be filed with 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, within 20 working days of the date of sale.

(2) Information to be included on application. An applicant for an initial certificate of title must file an application on a form prescribed by the department. The form will at a minimum require the:

(A) motor vehicle description including, but not limited to, the motor vehicle's:

(i) year;

(ii) make;

(iii) model;

(iv) identification number;

(v) body style;

(vi) manufacturer's rated carrying capacity in tons for commercial motor vehicles; and

(vii) empty weight;

(B) license plate number, if the motor vehicle is subject to registration under Transportation Code, Chapter 502;

(C) [ the ] odometer reading and brand, or the word "exempt" if the motor vehicle is exempt from federal and state odometer disclosure requirements;

(D) previous owner's name and city and state of residence;

(E) name and complete address of the applicant;

(F) name and mailing address of any lienholder and the date of lien, if applicable;

(G) signature of the seller of the motor vehicle or the seller's authorized agent and the date the certificate of title application was signed;

(H) signature of the applicant or the applicant's authorized agent and the date the certificate of title application was signed; and

(I) applicant's social security number, if the application is filed in a county in which the department's automated registration and title system has been implemented, with the following exceptions:

(i) an application filed in the name of an entity that does not have a social security number, or

(ii) an individual applicant who does not have a social security number, in which case the applicant must execute a statement to that effect on a form prescribed by the department.

(3) Serial number. If no serial number is die-stamped by the manufacturer on a motor vehicle, house trailer, trailer, semitrailer [ semi-trailer ], or item of equipment required to be titled, or if the serial number assigned and die-stamped by the manufacturer has been lost, removed, or obliterated, the department will on [ upon ] proper application, presentation of evidence of ownership, and presentation of evidence of a law enforcement physical inspection, assign a serial number to the motor vehicle, trailer, or equipment. The manufacturer's serial number or the assigned serial number will be used by the department as the major identification of the motor vehicle or trailer in the issuance of a certificate of title.

(4) Accompanying documentation. The certificate of title application must be supported by, at a minimum, the following documents:

(A) evidence of vehicle ownership, as described in subsection (c) of this section;

(B) an odometer disclosure statement properly executed by the seller of the motor vehicle and acknowledged by the purchaser, if applicable;

(C) proof of financial responsibility in the applicant's name, as required by Transportation Code, §502.153, unless otherwise exempted by law; and

(D) an [ (C) the ] identification certificate if required by Transportation Code, §548.256, and Transportation Code, §501.030, and if the vehicle [ was last registered in another state or country ] is being titled and registered, or registered only ; and

(E) [ (D) ] a release of any liens, provided that if any liens are not released, they will be carried forward on the new certificate of title application with the following limitations.

(i) A [ An out-of-state ] lien recorded on out-of-state evidence as described in subsection (c) of this section cannot be carried forward to a Texas title when there is a transfer of ownership, unless a release of lien or authorization from the lienholder is attached.

(ii) A lien recorded on out-of-state evidence as described in subsection (c) of this section is not required to be released when there is no transfer of ownership from an out-of-state title and the same lienholder is being recorded on the Texas application as is recorded on the out-of-state title.

(c) Evidence of motor vehicle ownership. Evidence of motor vehicle ownership properly assigned to the applicant must accompany the certificate of 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 division director and must contain, at a minimum, the following information:

(i) motor vehicle description including, but not limited to, the motor vehicle's year, make, model, identification number, body style and empty weight;

(ii) the manufacturer's rated carrying capacity in tons 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; and

(iii) a statement identifying a motor vehicle designed by the manufacturer for off-highway use only.

(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 [ importer ].

(2) Used motor vehicles. A certificate of title issued by the department, a certificate of title issued by another state if the motor vehicle was last registered and titled in another state, or other evidence of ownership must be relinquished in support of the certificate of title application for any used motor vehicle. A letter of Title and Registration verification is required from a vehicle owner coming from a state that no longer titles vehicles after a certain period of time.

(3) Motor [ Imported motor ] vehicles brought into the United States . An application for certificate of 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; and

(B) 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 an original United States Customs stamp, date, and 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 stationary.

(4) Alterations to documentation. An alteration to a registration receipt, certificate of title, manufacturer's certificate, or other evidence of ownership constitutes valid reason for the rejection of any transaction to which altered evidence is attached.

(A) 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.

(B) A strikeover that leaves any doubt about the legibility of any digit in any document will not be accepted.

(C) A corrected manufacturer's certificate of origin will be required if the manufacturer's certificate of origin contains an:

(i) incomplete or altered vehicle identification number;

(ii) alteration or strikeover of the vehicle's [ year ] model year ;

(iii) alteration or strikeover to the body style, or omitted body style on the manufacturer's certificate of origin; or

(iv) alteration or strikeover to the manufacturer's rated carrying capacity.

(D) 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:

(i) in which [ where ] the date of sale on an assignment has been erased or altered in any manner; or

(ii) of alteration or erasure on a Dealer's Reassignment of Title.

(5) 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) Certificate of title issuance. On [ upon ] receiving a completed application for certificate of title, along with the statutory [ title application ] fee for a title application [ of $13 ] and any other applicable fees, the department or its designated agent will issue a receipt and process the application for [ and issue a ] certificate of title.

(1) Titles [ Negotiable titles ]. The department will issue and mail or deliver a certificate of title [ negotiable title, marked "Original," ] to the applicant or, in the event that there is a lien disclosed in the application, to the first lienholder.

(2) Receipt. The receipt issued at the time of application for title [ Non-negotiable titles. The department will issue non-negotiable titles, which ] 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 [ , in the following circumstances ].

[ (A) In the event that there is a lien disclosed in the application, a duplicate certificate of title marked "Duplicate Original" will be mailed or delivered to the address of the applicant as disclosed upon the application.]

[ (B) In the event that the owner of a vehicle last registered or titled in another state (and subject to registration in this state) cannot or does not wish to relinquish the negotiable out-of-state evidence of ownership to obtain a negotiable Texas title, a duplicate certificate of title marked "Registration Purposes Only" will be mailed or delivered to the address of the applicant as disclosed upon the application. In instances in which the title or registration receipt is assigned to the applicant, an application for "Registration Purposes Only" will not be processed.]

(e) Replacement of certificate of title. If a certificate of 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 [ upon ] proper application and payment of the appropriate fee to the department.

(1) Certified copy.

(A) Issuance. An application for a certified copy must be properly executed and supported by appropriate verifiable proof for the vehicle owner, lienholder, or agent regardless of whether the application is submitted in person or by mail.

(i) If the applicant requests that a certified copy be issued before the fourth business day following application, the application must be made in person.

(ii) An applicant other than the vehicle owner, lienholder, or verified agent must apply for a certified copy of a certificate of title by mail.

(B) 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 subsection (g)(2)(A) and (B) of this section.

(2) Certified copy designation. A certified copy of an existing certificate of title will be marked "Certified Copy" until ownership of the vehicle is transferred, when the words "Certified Copy" will be eliminated from the new certificate of title.

(3) Fees. The fee for obtaining a certified copy of a certificate of title is $2.00 if the application is processed at the department's headquarters office and $5.45 if the application is processed at one of the department's regional offices.

[ (4) Recovery of lost title. In the event that the "Duplicate Original" or "Original" certificate of title is recovered, the owner shall relinquish the "Duplicate Original" or "Original" certificate of title to the department for cancellation. Thereafter, if a subsequent application for certificate of title is filed in the current owner's name, the department will issue an "Original" certificate of title.]

(f) Department notification of second hand vehicle transfers. A transferor of a motor vehicle may voluntarily make written notification to the department of the sale of the vehicle, in accordance with Transportation Code, Chapter 520, Subchapter C, and this subsection.

(1) Notification form. The department will provide a form for written notice of transfer. The form will include the:

(A) vehicle identification number of the vehicle;

(B) license plate number issued to the vehicle, if any;

(C) full name and address of the transferor;

(D) full name and address of the transferee;

(E) date the transferor delivered possession of the vehicle to the transferee;

(F) signature of the transferor; and

(G) date the transferor signed the form.

(2) Records. On [ upon ] receipt of written notice of transfer and a $5.00 fee from the transferor of a motor vehicle, the department will mark its records to indicate the date of transfer and the full name and address of the transferee.

(3) Ownership of transferred vehicle. After the date of the transfer of the vehicle as shown in the department records, the transferee of the vehicle is rebuttably presumed to be:

(A) the owner of the vehicle; and

(B) subject to civil and criminal liability arising out of the use, operation, or abandonment of the vehicle, to the extent that ownership of the vehicle subjects the owner of the vehicle to criminal or civil liability under another provision of the law.

(4) Certificate of title issuance. A certificate of title will not be issued in the name of a transferee until the transferee files an application for the certificate of title as described in this section.

(g) Suspension, revocation, or refusal to issue Certificates of Title.

(1) Grounds for title suspension, revocation, or refusal to issue. The department will refuse issuance of a certificate of title, or having issued a certificate of title, will suspend or revoke the certificate of title if the:

(A) application contains any false or fraudulent statement;

(B) applicant has failed to furnish required information requested by the department;

(C) applicant is not entitled to the issuance of a certificate of title under Transportation Code, Chapter 501;

(D) department has reasonable grounds to believe that the vehicle is a stolen or converted vehicle or that the issuance of a certificate of title would constitute a fraud against the rightful owner or a lienholder [ mortgagee ];

(E) registration of the vehicle stands suspended or revoked; or

(F) required fee has not been paid.

(2) Contested case procedure. Any person who has an interest in a motor vehicle to which the department has refused to issue a certificate of title or has suspended or revoked the certificate of title may contest the department's decision in accordance with Transportation Code, §501.052 and §501.053, in the following manner.

(A) Hearing. Any person who has an interest in a motor vehicle to which the department has refused to issue a certificate of title or has suspended or revoked the certificate of title may apply for a hearing to the designated agent of the county in which the applicant resides. At the hearing the applicant and the department may submit evidence, and a ruling of the designated agent will bind both parties. An applicant wishing to appeal the ruling of the designated agent may do so to the County Court of the county in which the applicant resides.

(B) Alternative to hearing. In lieu of a hearing, any person who has an interest in a motor vehicle to which the department has refused to issue a certificate of title or has suspended or revoked a certificate of title may file a bond with the department, in an amount equal to one and one-half times the value of the vehicle as determined by the department, and in a form prescribed by the department. On [ upon ] the filing of the bond, the department may issue a certificate of title. The bond shall expire three years after the date it becomes effective and will be returned to the person posting bond, on [ upon ] expiration, unless the department has been notified of the pendency of an action to recover on the bond.

(h) Discharge of lien. 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, Chapter 501. The lienholder shall submit one of the following documents:

(1) the certificate of 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) certificate of title or document number, or a description of the motor vehicle including, but not limited to, the motor vehicle's:

(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 certificate of 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.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on December 14, 2001.

TRD-200107887

Richard D. Monroe

General Counsel

Texas Department of Transportation

Earliest possible date of adoption: January 27, 2002

For further information, please call: (512) 463-8630


Subchapter B. MOTOR VEHICLE REGISTRATION

43 TAC §§17.21, 17.22, 17.52

STATUTORY AUTHORITY

The amendments are proposed under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and more specifically, Transportation Code, Chapter 501, which authorizes the department to carry out the provisions of those laws governing issuance of motor vehicle certificates of title, and Transportation Code, Chapter 502 which authorizes the department to carry out the provisions of those laws governing issuance of motor vehicle registration.

No statutes, articles, or codes are affected by the proposed amendments.

§17.21.Definitions.

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) Apportioned license plate - A license plate issued in lieu of a truck license plate or combination license plate to a motor carrier in this state who proportionally registers a vehicle owned by the carrier in one or more other states.

(6) 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.

(7) Border commercial zone - A commercial zone established under Title 49, C.F.R., Part 372 that [ which ] is contiguous to the border with Mexico.

[ (8) Bus (motor) - A motor propelled vehicle used in transporting persons upon the public highways of this State for compensation or hire exclusively within the limits of incorporated cities and/or towns or suburban additions to such cities and/or towns.]

[ (9) Bus (street or suburban) - A vehicle, except a motor bus or passenger car, used in transporting persons for compensation (or hire) exclusively within the limits of cities and towns or suburban additions to such cities or towns.]

(8) [ (10) ] Carrying capacity - The maximum safe load that a commercial vehicle may carry, in tons, as determined by the manufacturer.

(9) [ (11) ] Character - A numeric or alpha symbol displayed on a license plate.

(10) [ (12) ] Combination license plate - A license plate issued for a truck or truck tractor that has a manufacturer's rated carrying capacity of more than one ton and is used or intended to be used in combination with a semitrailer that has a gross weight of more than 6,000 pounds.

(11) [ (13) ] Commercial vehicle - Any vehicle (other than a motorcycle or passenger car) designed or used primarily for the transportation of property, including any passenger car that [ which ] has been reconstructed so as to be used, and that [ which ] is being used, primarily for delivery purposes, with the exception of passenger cars used in the delivery of the United States mail.

(12) [ (14) ] Conventional vehicle - A regular truck or regular trailer that is eligible only for regular registration[ , ] and that is [ which are ] primarily designed to transport divisible loads, regardless of the vehicle's present use . Vehicles that [ (vehicles which ] have been altered or reconstructed, or on [ upon ] which machinery has been mounted or attached, permanently or otherwise, retain their conventional status[ ) ].

(13) [ (15) ] 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.

(14) [ (16) ] Department - The Texas Department of Transportation.

(15) [ (17) ] Director - The director of the Vehicle Titles and Registration Division, Texas Department of Transportation.

(16) [ (18) ] Disabled person - A person who has mobility problems that substantially impair the person's ability to ambulate or who is legally blind.

(17) Electric bicycle - A device that has two tandem wheels and is designed to be propelled by an electric motor. An electric bicycle cannot attain a speed of more than 20 miles per hour without the application of human power and weighs 100 pounds or less.

(18) [ (19) ] Escrow account - A deposit of a specific amount of money held by the department for security.

(19) [ (20) ] Evidence of financial responsibility - The original document or photocopy of any one of the following items:

(A) a liability insurance policy or liability self-insurance or pool coverage document issued in at least the minimum amount required by law;

(B) a personal automobile insurance policy used as evidence of financial responsibility, written for at least the term required by the Insurance Code, Article 5.06;

(C) a standard proof of liability form issued by a liability insurer;

(D) an insurance binder that confirms that the owner is in compliance with the law;

(E) a certificate issued by the Texas Department of Public Safety that shows the vehicle is covered by self-insurance;

(F) a certificate issued by the state treasurer that shows that the owner has money or securities in an amount not less than $55,000 on deposit with the state treasurer;

(G) a certificate issued by the Texas Department of Public Safety that shows that the vehicle has a bond on file with that department , that the bond is in the form and amount required by law, and that the [ on file with that department, such ] bond is guaranteed by [ shall include ] at least two individual sureties each owning real estate within this state;

(H) a certificate issued by the county judge in the county where the owner resides showing that the owner has cash or a cashier's check in an amount not less than $55,000 on deposit with the county judge.

(20) [ (21) ] 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.

(21) [ (22) ] Exempt agency - A governmental body exempted by statute from paying registration fees when registering motor vehicles.

(22) [ (23) ] Exempt license plates - Specially designated license plates issued to certain vehicles owned or controlled by exempt agencies.

(23) [ (24) ] Exhibition vehicle -

(A) An assembled complete passenger car, truck, or motorcycle that [ which ]:

[ (A) is at least 25 years old;]

(1) [ (B) ] is a collector's item;

(2) [ (C) ] is used exclusively for exhibitions, club activities, parades, and other functions of public interest;

(3) [ (D) ] does not carry advertising; and

(4) [ (E) ] has a frame, body, and motor that is at least 25 years old ; or

(B) A Former Military Vehicle as defined in Transportation Code, §502.275.

(24) [ (25) ] Fire fighting equipment - Equipment mounted on fire fighting vehicles used in the process of fighting fires, including, but not limited to, ladders and hoses.

(25) [ (26) ] Gross weight - The sum of the empty weight of a commercial vehicle (or vehicles, if operated in combination), combined with its maximum carrying capacity, rounded up to the next 100 pounds.

(26) [ (27) ] Highway construction project - That section of the highway between the warning signs giving notice of a construction area.

(27) [ (28) ] International symbol of access - The symbol adopted by Rehabilitation International in 1969 at its Eleventh World Congress of Rehabilitation of the Disabled.

(28) [ (29) ] Legally blind - Having not more than 20/200 [ of ] visual acuity in the better eye with correcting lenses, or visual acuity greater than 20/200 but with a limitation in the field of vision such that the widest diameter of the visual field subtends an angle no greater than 20 degrees.

(29) [ (30) ] Light truck - As defined in Transportation Code, §541.201, any truck with a manufacturer's rated carrying capacity not to exceed two thousand pounds, including those trucks commonly known as pickup trucks, panel delivery trucks, and carryall trucks.

(30) [ (31) ] Make - The trade name of the vehicle manufacturer.

(31) Motor bus - A motor-propelled vehicle used to transport persons on public highways for compensation, other than a street or suburban bus.

(32) Motorized mobility device - A device designed for transportation of persons with physical disabilities that:

(A) has three or more wheels;

(B) is propelled by a battery-powered motor;

(C) has not more than one forward gear; and

(D) is not capable of speeds exceeding eight miles per hour.

(33) [ (32) ] Net carrying capacity - 150 pounds multiplied by the seating capacity as determined by the manufacturer's rated seating capacity, exclusive of the driver's or operator's seat , or in the case of a vehicle that is not rated by the manufacturer, as determined by an allowance of one passenger for each sixteen inches, exclusive of the driver's or operator's seat.

(34) [ (33) ] Nonprofit organization - An unincorporated association or society or a corporation that is incorporated or holds a certificate of authority under the Texas Non-Profit Corporation Act, as amended (Texas Civil Statutes, Article 1396-1.01 et seq.).

[ (34) Official - A representative of a taxing entity who is authorized to secure vehicle registration information for the purposes of taxation.]

(35) Owner - A person who holds the legal title to a vehicle, has the legal right to possess a vehicle, or has the legal right to control a vehicle. [ In accordance with Transportation Code, §502.001, any person who holds the legal title of a vehicle or who has the legal right of possession thereof, or the legal right of control of said vehicle. ]

(36) Passenger car - In accordance with Transportation Code, §502.001, any motor vehicle other than a motorcycle, golf cart, or a bus, designed or used primarily for the transportation of persons.

(37) Political subdivision - A county, municipality, local board, or other body of this state having authority to provide a public service.

(38) Registration period - A designated period during which registration is valid. A registration period always begins on the first day of a calendar month and ends on the last day of a calendar month. [ A 12-month period beginning on the first day of a calendar month and expiring on the last day of the last calendar month in that 12-month period. ]

(39) Rental fleet - A fleet of five or more vehicles that are owned by the same owner, offered for rent or rented without drivers, and designated by the owner in the manner prescribed by the department as a rental fleet.

(40) Rental trailer - A utility trailer that has a gross weight of 4,000 pounds or less and is part of a rental fleet.

(41) Road tractor - A vehicle designed for the purpose of mowing the right of way of a public highway or a motor vehicle designed or used for drawing another vehicle or a load and not constructed to carry:

(A) an independent load; or

(B) a part of the weight of the vehicle and load to be drawn.

(42) Service agreement - A contractual agreement that [ which ] allows individuals or businesses to access the department's vehicle registration records.

(43) Special category license plate - A special design license plate issued by the department under statutory authority.

(44) Special category license plate fee - Statutorily or department required fee payable on [ upon ] submission of an application for a special category license plate, symbol, [ or ] tab, or other device, and collected in addition to statutory motor vehicle registration fees.

(45) Special district - A political subdivision of the state established to provide a single public service within a specific geographical area.

(46) Sponsoring entity - An institution, college, university, sports team, or any other individual or group that desires to support a particular special category license plate by coordinating the collection and submission of the prescribed applications and associated license plate fees or deposits for that particular license plate.

(47) 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.

(48) [ (47) ] 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.

(49) [ (48) ] Token trailer -[ A ]:

(A) A semitrailer that has a gross weight of more than 6,000 pounds and is operated in combination with a truck; or

(B) a truck tractor that has been issued an apportioned license plate, a combination license plate, or a forestry vehicle license plate.

(50) [ (49) ] Tow truck - A motor vehicle equipped with a [ or ] mechanical device adapted or used to tow, winch, or otherwise move another motor vehicle [ disabled motor vehicles ].

(51) [ (50) ] Travel trailer - A house trailer-type vehicle or a camper trailer that is less than eight feet in width or 40 feet in length, exclusive of any hitch installed on the vehicle , and is designed primarily for use as temporary living quarters in connection with recreational, camping, travel, or seasonal use and not as a permanent dwelling.

(52) [ (51) ] 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.

(53) [ (52) ] Vehicle - A [ Every ] device in[ , ] or by which a [ , any ] person or property is or may be transported or drawn on [ upon ] a public highway, other than a device [ except devices ] used exclusively on [ upon ] stationary rails or tracks.

(54) [ (53) ] Vehicle classification - The grouping of vehicles in categories for the purpose of registration, based on [ upon ] design, carrying capacity, or use.

(55) [ (54) ] Vehicle description - Information regarding a specific vehicle, including, but not limited to, the vehicle make, [ year ] model year , body style, and vehicle identification number.

(56) [ (55) ] 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.

(57) [ (56) ] Vehicle inspection sticker - A sticker issued by the Texas Department of Public Safety signifying that a vehicle has passed all applicable safety and emissions tests.

(58) [ (57) ] 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 [ which allows ] the vehicle to be operated on [ upon ] the public highways.

(59) [ (58) ] Vehicle registration record - Information contained in the department's files that [ which ] reflects, but is not limited to, the make, vehicle identification number, [ year ] model year , body style, license number, and the name of the registered owner.

(60) [ (59) ] Volunteer fire department - An association that is organized for the purpose of answering fire alarms, extinguishing fires, and providing emergency medical services.

§17.22.Motor Vehicle Registration.

(a) Registration. Unless otherwise exempted by law or this chapter, a vehicle to be used on [ upon ] the public highways of this state must be registered in accordance with Transportation Code, Chapter 502 and the provisions of this section. Transportation Code, Chapter 501, Subchapter E and §17.8 of this title (relating to Certificates of Title for Salvage Vehicles) prohibit registration of a vehicle whose owner has been issued a salvage or nonrepairable motor vehicle certificate of title. These vehicles may not be operated on [ upon ] a public roadway.

(b) Initial application for vehicle registration.

(1) An applicant for initial vehicle registration must file an application on a form prescribed by the department. The form will at a minimum require:

(A) the signature of the owner;

(B) the motor vehicle description, including, but not limited to, the motor vehicle's year, make, model, vehicle identification number, body style, manufacturer's rated carrying capacity in tons for commercial motor vehicles, and empty weight;

(C) the license plate number;

(D) the odometer reading, or the word "exempt" if the motor vehicle is exempt from federal and state odometer disclosure requirements;

(E) the name and complete address of the applicant; and

(F) the name, mailing address, and date of any liens.

(2) The application must be accompanied by the following documents:

(A) evidence of vehicle ownership as specified in Transportation Code, §501.030, unless the vehicle has been issued a salvage or nonrepairable motor vehicle certificate of title in accordance with Transportation Code, Chapter 501, Subchapter E;

(B) registration fees prescribed by law;

(C) any local fees or other fees prescribed by law and collected in conjunction with registering a vehicle;

(D) evidence of financial responsibility required by Transportation Code, §502.153, unless otherwise exempted by law; and

(E) any other documents or fees required by law.

(3) An initial application for registration must be filed with the tax assessor-collector of the county in which the owner resides, except that an application for registration as a prerequisite to filing an application for certificate of title may also be filed with the county tax assessor-collector in the county in which the motor vehicle is purchased or encumbered.

(4) 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 certificate of 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.

(A) Registration receipt. 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.

(B) Information to be included on the form. The form will include the:

(i) out-of-state title number, if applicable;

(ii) out-of-state license plate number, if applicable;

(iii) state or country that issued the out-of-state title or license plate;

(iv) lienholder name and address as shown on the out-of-state evidence, if applicable;

(v) statement that negotiable evidence of ownership is not being surrendered; and

(vi) signature of the applicant or authorized agent of the applicant.

(C) Accompanying Documentation. An application for registration under this paragraph must be supported, at a minimum, by:

(i) a completed application for registration, as specified in paragraph (1) of this subsection;

(ii) 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 or registration verification from the other jurisdiction, a registration receipt, a non-negotiable title, or written verification from the other jurisdiction; and

(iii) any other documents or fees required by law.

(D) 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 certificate of title under Transportation Code, Chapter 501.

(c) Vehicle registration insignia.

(1) On [ upon ] 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 the vehicle for which the registration was issued for the current registration period.

(A) If the vehicle has a windshield, the symbol, tab, or other device prescribed by and issued by the department shall [ must ] be attached to the inside lower left corner of the vehicle's front windshield within six inches of the vehicle inspection sticker in a manner that will not obstruct the vision of the driver.

(B) If the vehicle has no windshield, the symbol, tab, or other device prescribed by and issued by the department shall be attached to the rear license plate.

(C) If the vehicle is registered as a Former Military Vehicle as prescribed by Transportation Code, §502.275, the vehicle's registration number shall be displayed instead [ in lieu ] of displaying a symbol, tab, or license plate.

(i) 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.

(ii) 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.

(2) Unless otherwise prescribed by law, each vehicle registered under this subchapter must display two license plates, one at the front and one at the rear of the vehicle.

(3) In accordance with Transportation Code, §502.052 and §502.180(e), the department will cancel or not issue any license plate with a number that:

(A) conflicts with the department's current or proposed regular license plate numbering system;

(B) is determined to be obscene or objectionable by the director; or

(C) is currently issued to another owner.

(4) The provisions of paragraph (1) of this subsection do not apply to vehicles registered with annual license plates issued by the department.

(d) Vehicle registration renewal.

(1) To renew vehicle registration, a vehicle owner must apply, prior to the expiration of the vehicle's registration, to the tax assessor-collector of the county in which the owner resides.

(2) The department will mail a license plate 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) The license plate renewal notice must be returned by the vehicle owner to the appropriate county tax assessor- collector or to the tax assessor-collector's deputy, either in person or by mail, and must be accompanied by the following documents and fees:

(A) registration renewal fees prescribed by law;

(B) any local fees or other fees prescribed by law and collected in conjunction with registration renewal; and

(C) evidence of financial responsibility required by Transportation Code, §502.153, unless otherwise exempted by law.

(4) If a 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 tax assessor-collector. Failure to receive the notice does not relieve the owner of the responsibility to renew the vehicle's registration.

(5) Renewal of expired vehicle registrations.

(A) In accordance with Transportation Code, §502.407, a vehicle with an expired registration may not be operated on [ upon ] the highways of the state after the fifth working day after the date a vehicle registration expires.

(B) A 20% delinquency penalty is due when registration is renewed if the owner has been arrested or cited for operating the vehicle without valid registration.

(C) If the county tax assessor-collector determines that a registrant has a valid reason for being delinquent in registration, the vehicle owner will be required to pay for twelve 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.

(D) If the county tax assessor-collector 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.

(E) If a vehicle is registered in accordance with Transportation Code, §502.164, §502.167, §502.203, §502.255, §502.267, §502.277, §502.278, §502.295, or §502.2951, and if the vehicle's registration is renewed more than one month after expiration of the previous registration, the registration fee will be prorated.

(F) Any delinquent registration submitted directly to the department for processing will be evaluated to verify the reason for delinquency. If 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 11th month following the month of registration. If 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. Valid reasons for delinquency include those reasons set forth in Transportation Code, §502.176(e).

(6) License plate reissuance and recall program.

(A) The county tax assessor-collectors are authorized to issue new multi-year license plates at no additional charge on [ upon ] request by the owner at the time of registration renewal, provided the current plates are over five years old.

(B) The county tax assessor-collectors shall issue new multi-year license plates at no additional charge at the time of registration renewal provided the current plates are over eight years old.

(e) Replacement of license plates, symbols, tabs, and other devices.

(1) When a license plate, symbol, tab, or other registration device is lost, stolen, or mutilated, a replacement may be obtained from any county tax assessor-collector as prescribed by law.

(2) To obtain a replacement, the owner must properly execute an affidavit containing the vehicle description, the original license plate number, and a sworn statement that the license plate, symbol, tab, or other registration device furnished for the described vehicle has been lost, stolen, or mutilated, and will not be used on any other vehicle.

(3) If the owner remains in possession of any part of the lost, stolen, or mutilated license plate, symbol, tab, or other registration device, that remaining part must be removed and surrendered to the department on [ upon ] issuance of the replacement and on [ upon ] request by the county tax assessor-collector.

(f) Out-of-state vehicles. 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, §502.0025. Accompanying a completed application, an applicant must provide:

(1) an application for certificate of 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 [ an identification certificate required by Transportation Code, §548.256 and §501.030 ].

(g) Enforcement of traffic warrant. The department or a county tax assessor-collector may, pursuant to the provisions of a contract entered into under Transportation Code, §702.003, refuse to register a vehicle owned by a person for whom a warrant of arrest is outstanding for failure to appear or pay a fine on a complaint involving a violation of a traffic law.

(h) Refusal to register vehicle in certain counties. The department or a county tax assessor-collector may, pursuant to the provisions of a contract entered into in accordance with Government Code, Chapter 791, and Transportation Code, §502.185, refuse to register a vehicle owned by a person who owes the county money for a fine, fee, or tax that is past due.

(1) To place or remove a registration denial flag on a vehicle record, the county must submit a magnetic tape or other acceptable submission medium as determined by the department in a format prescribed by the department.

(2) The information submitted by the county will include, at a minimum, the vehicle identification number [ (VIN) ] and the license [ registration ] plate number of the affected vehicle.

(3) If a county data submission contains bad or corrupted data, the submission medium will be returned to the county with no further action by the department.

(4) The magnetic tape or other submission medium must be submitted to the department from a single source within the county, as approved by the county commissioner's court.

(5) County submission of a magnetic tape or other submission medium to the department constitutes a certification that the county has notified owners of vehicles whose records appear on the tapes that past due fines, fees, or taxes are owed to the county.

§17.52.Vehicle Emissions Enforcement System.

(a) Purpose. Transportation Code, §502.009 , requires the department to implement a system requiring verification that a vehicle complies with vehicle emissions inspection and maintenance [ (I/M) ] programs as required by the Health and Safety Code, §382.037 and §382.0372, and Transportation Code, Chapter 548, Subchapter F. Transportation Code, §501.0276 and §502.1535, requires a vehicle to pass an emissions test on resale in an affected county before it is titled or registered. This section prescribes the department's policies and procedures [ for a denial of registration enforcement system ] 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 - Any portion of an air quality control region where any pollutant exceeds the national ambient air quality standards for the pollutant as designated under the Federal Clean Air Act.

(2) [ (1) ] Department - The Texas Department of Transportation.

(3) [ (2) ] DPS - The Texas Department of Public Safety.

[ (3) Nonattainment area - Any portion of an air quality control region where any pollutant exceeds the national ambient air quality standards for the pollutant as designated pursuant to the Federal Clean Air Act.]

[ (4) State Implementation Plan (SIP) - A document required by the United States Environmental Protection Agency that commits to the adoption and implementation of a vehicle emissions I/M program which meets all the requirements of the Environmental Protection Agency.]

(4) [ (5) ] TNRCC - The Texas Natural Resource Conservation Commission.

(5) [ (6) ] Vehicle - A self-propelled [ motor-driven or propelled ] vehicle required to be registered in the state , except those vehicles exempted by [ the ] TNRCC.

(6) [ (7) ] Vehicle inspection report - A vehicle inspection form prescribed by [ the ] DPS that is printed by the vehicle exhaust gas analyzer immediately following an emissions test.

(7) Vehicle emissions I/M program - A vehicle emissions inspection and maintenance program meeting all the requirements of the Environmental Protection Agency.

(8) 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 TNRCC. [ Conditions to vehicle registration denial. ]

(1) [ The ] 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) [ The ] TNRCC, 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, §382.037 and §382.0372 , and Transportation Code, Chapter 548, Subchapter F.

(3) The notice will include the vehicle identification number [ (VIN) ] and the license [ registration ] plate number of the affected vehicle.

(4) If the department receives a notice of emissions noncompliance from [ the ] DPS or TNRCC, 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 emissions compliance from [ the ] DPS or TNRCC, 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 [ the ] DPS that includes the vehicle identification number [ (VIN) ] and the license [ registration ] plate number.

(7) [ The ] DPS and TNRCC will provide the department with the notifications in a format approved by the department.

(8) [ The ] DPS and TNRCC will enter into an agreement with TxDOT regarding the remittance to the department for costs associated with implementation of the emissions program.

(d) Vehicles moved into affected counties. If a vehicle was last titled in an unaffected county and is to be titled or registered in an affected county, it is not eligible for a title receipt, a certificate of 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 county for fewer than 60 days during the registration period for which registration is sought.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on December 14, 2001.

TRD-200107888

Richard D. Monroe

General Counsel

Texas Department of Transportation

Earliest possible date of adoption: January 27, 2002

For further information, please call: (512) 463-8630


Chapter 21. RIGHT OF WAY

Subchapter G. RELOCATION ASSISTANCE AND BENEFITS

The Texas Department of Transportation proposes the repeal of §§21.111-21.117 and simultaneously proposes new §§21.111-21.118, concerning relocation assistance and benefits.

EXPLANATION OF PROPOSED REPEALS AND NEW SECTIONS

The Texas Department of Transportation's relocation rules set forth the eligibility requirements and procedures for providing relocation assistance to individuals and businesses displaced by highway improvement projects.

The repeals and new sections are required due to changes in state and federal law and regulations and recommendations for revised appeal procedures following a joint process review conducted by the department and the Federal Highway Administration (FHWA). Additional nonsubstantive changes are made to enhance clarity and to improve grammar. The repeals and new sections will bring the relocation assistance and benefits regulations up to date and into compliance with current law and federal regulations, including the position designation change of the former "state engineer-director" to that of "executive director".

FISCAL NOTE

James Bass, Director, Finance Division, has determined that for each of the first five-years the repeals and new sections are in effect, there will be no fiscal implications for state or local governments as a result of enforcing or administering the repeals and new sections. There are no anticipated economic costs for persons required to comply with the sections as proposed.

John Campbell, Director, Right of Way Division, has certified that there will be no significant impact on local economies or overall employment as a result of enforcing or administering the repeals and new sections.

PUBLIC BENEFIT

Mr. Campbell has also determined that for each year of the first five years the sections are in effect, the public benefit anticipated as a result of enforcing or administering the repeals and new sections will be to further the department's mission to provide an efficient and fair process of administering the relocation assistance and benefit program in accordance with state and federal law and regulations. There will be no adverse economic effect on small businesses.

SUBMITTAL OF COMMENTS

Written comments on the proposed repeals and new sections may be submitted to John Campbell, Director, Right of Way Division, 125 East 11th Street, Austin, Texas 78701-2483. The deadline for receipt of comments is 5:00 p.m. on January 28, 2002.

43 TAC §§21.111 - 21.117

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Department of Transportation or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

STATUTORY AUTHORITY

The repeals are proposed under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation.

No statutes, articles, or codes are affected by the proposed repeals.

§21.111.Relocation Assistance Advisory Service.

§21.112.Public Information.

§21.113.Written Notices to Displacees.

§21.114.Applicability of Relocation Payments and Services.

§21.115.Moving and Related Expense Payments.

§21.116.Replacement Housing Payment.

§21.117.Relocation Review Committee.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on December 14, 2001.

TRD-200107889

Richard D. Monroe

General Counsel

Texas Department of Transportation

Earliest possible date of adoption: January 27, 2002

For further information, please call: (512) 463-8630


43 TAC §§21.111 - 21.118

STATUTORY AUTHORITY

The new sections are proposed under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation.

No statutes, articles, or codes are affected by the proposed new sections.

§21.111.Definitions.

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 - An administrative committee whose members are appointed by the executive director and include the deputy executive director (chair) and at least two other department employees who are not directly involved with the relocation assistance program.

§21.112.Relocation Assistance Advisory Service.

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.

§21.113.Public Information.

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.

§21.114.Written Notices to Displacees.

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.

§21.115.Applicability of Relocation Payments and Services.

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.

§21.116.Moving and Related Expense Payments.

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.

§21.117.Replacement Housing Payment.

(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.

§21.118.Relocation Review Committee.

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.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on December 14, 2001.

TRD-200107890

Richard D. Monroe

General Counsel

Texas Department of Transportation

Earliest possible date of adoption: January 27, 2002

For further information, please call: (512) 463-8630


Chapter 23. TRAVEL INFORMATION

Subchapter C. TEXAS HIGHWAYS MAGAZINE

43 TAC §23.29

The Texas Department of Transportation proposes new §23.29, concerning magazine advertising.

EXPLANATION OF NEW SECTION

Texas Civil Statutes, Article 6144e authorizes the department to publish Texas Highways , the state's official travel magazine, and other travel literature for the purpose of assisting and encouraging travel in Texas. In furtherance of that purpose, the department may include certain paid advertising in travel literature, provided that the quality and quantity of the primary information content is not impaired. New §23.29 prescribes department policies and procedures relating to the advertising content of Texas Highways .

Subsection (a) describes the purpose of new §23.29.

Subsection (b) prescribes subjects acceptable for advertising in Texas Highways . Texas Highways is the official travel magazine of the State of Texas, encouraging recreational travel within the state and telling the Texas story to readers around the world. Accordingly, the content of the magazine is focused on Texas vacation, recreational, travel, or tourism related subjects, shopping opportunities in Texas and for Texas related products, various outdoor events, sites, facilities, and services in the state, transportation modes and facilities in the state, and other sites, products, facilities, and services that are travel related or Texas based, and that are determined by the department to be of cultural, educational, historical, or recreational interest to Texas Highways readers. Acceptable advertising subjects in the magazine must be related to the scope of the magazine's content.

Subsection (c) specifies those subjects that are not acceptable for advertising in Texas Highways . The purpose of the magazine is to encourage travel in Texas. Unacceptable advertising subjects include out-of-state travel or tourism locations, destinations, facilities, and services that do not augment Texas travel or tourism or that are not located on border locations with ties to Texas. The magazine tells the Texas story and encourages travel to Texas by promoting the positive attributes of the state. Accordingly, subjects that may be perceived as negative by readers, such as alcoholic beverages, tobacco products, and sexually oriented products and services are not acceptable advertising subjects.

Subsection (d) prescribes policies and procedures for soliciting advertising sales and accepting orders for advertising in Texas Highways . The department will annually publish in the Texas Register an invitation to be included in a mailing list containing those entities and individuals interested in advertising in Texas Highways and receiving advertising rate information. Subsection (d) requires the department to calculate advertising rates and develop a rate card for the magazine. The department will publish the advertising rate information in various publications, including the Texas Register . The rate card will include information about advertising space and positions, advertising rates, publication issue and closing dates, circulation data, publisher's editorial profile, and other related information.

The department and/or its designated agent will mail an announcement of advertising opportunities and the rate card to those on the mailing list 30 days after the publication of that information in the Texas Register . Subsequent to that date, a rate card will also be sent upon request to an entity or individual not on the mailing list. In order to fairly allocate advertising space and positions, the department or its designated agent will accept all insertion orders (orders for paid advertising) received prior to the closing date on a first-come, first-served basis until all advertising space for a particular publication is filled. However, in order to make the most efficient use of advertising space, insertion orders for an inside front cover spread and inside back cover spread will take precedence over an inside front cover and inside back cover insertion order, notwithstanding the date of receipt of the insertion order.

Subsection (e) prescribes conditions under which the department will not accept advertising or will remove an advertiser. Texas Highways tells the Texas story to its readers around the world and encourages travel to Texas by promoting the positive attributes of the state. Accordingly, advertising that may be perceived as negative by readers, such as that from an entity that discriminates against customers on the basis of race, color, creed, religion, sex, or national origin, will not be accepted. The department will also not accept advertising that is misleading or that misrepresents the facts. The department may remove an advertiser based on three or more valid consumer complaints concerning service or merchandise, and will no longer accept orders from advertisers that have been removed.

FISCAL NOTE

James Bass, Director, Finance Division, has determined that for each of the first five years the new section is in effect, there will be fiscal implications for state and local governments as a result of enforcing or administering the new section. The department will receive increased revenue as a result of implementing a program to accept advertising in Texas Highways . The department has estimated that it will receive $16,037 in increased revenue in FY 2002, $400,022 in FY 2003, $607,136 in FY 2004, $740,724 in FY 2005, and $897,197 in FY 2006. The department anticipates that there will be fiscal implications for local governments desiring to advertise in Texas Highways . Those costs cannot be quantified with any specificity, as the amount will depend on the number and type of insertion orders made. There are anticipated economic costs for persons required to comply with the new section as proposed. Persons desiring to advertise in Texas Highways will incur those costs. Those costs cannot be quantified with any specificity, as the amount will depend on the number and type of insertion orders made.

Doris Howdeshell, Director, Travel Division, has certified that there will be no significant impact on local economies or overall employment as a result of enforcing or administering the new section.

PUBLIC BENEFIT

Ms. Howdeshell has also determined that for each year of the first five years the new section is in effect, the public benefit anticipated as a result of enforcing or administering the new section will be to offset the cost of producing Texas Highways , adding to the information provided to readers on services and merchandise available in Texas, and maintaining the magazine's subscription price at a competitive level, thereby reaching more potential readers and facilitating the department's mission of encouraging travel in Texas. There will be no adverse economic effect on small businesses.

SUBMITTAL OF COMMENTS

Written comments on the proposed new section may be submitted to Doris Howdeshell, Director, Travel Division, 125 East 11th Street, Austin, Texas 78701-2483. The deadline for receipt of comments is 5:00 p.m. on January 28, 2002.

STATUTORY AUTHORITY

The new section is proposed under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and Texas Civil Statutes, Article 6144e, which authorizes the department to publish Texas Highways and other travel literature for the purpose of assisting and encouraging travel in Texas, and to include certain paid advertising in travel literature.

No statutes, articles, or codes are affected by the proposed new section.

§23.29.Magazine Advertising.

(a) Purpose. Texas Civil Statutes, Article 6144e authorizes the department to publish Texas Highways, the state's official travel magazine, and other travel literature for the purpose of assisting and encouraging travel in Texas. In furtherance of that purpose, the department may include certain paid advertising in travel literature, provided that the quality and quantity of the primary information content is not impaired. This section prescribes department policies and procedures relating to the advertising content of Texas Highways magazine.

(b) Acceptable subjects. Subjects acceptable for advertising in Texas Highways include:

(1) Texas vacation, recreational, travel, or tourism-related sites, facilities, destinations, accommodations, restaurants, events, equipment, and services;

(2) Texas shopping opportunities related to destinations, food products, and Texas-related products;

(3) pleasure-driving equipment, facilities, destinations, and services;

(4) camping, hiking, fishing, birding, boating, bicycling, gardening, photography, wildlife viewing, astronomy, geology, and other outdoor events, sites, equipment, facilities, and services;

(5) public transportation modes, products, facilities, and services; and

(6) other sites, products, equipment, facilities, and services that are travel related or Texas based, and that are determined by the department to be of cultural, educational, historical, or recreational interest to Texas Highways readers.

(c) Unacceptable subjects. Advertising subjects not acceptable in Texas Highways include:

(1) out-of-state travel-tourism locations, destinations, facilities, and services that do not augment Texas travel or tourism or that are not located on border locations with ties to Texas;

(2) alcoholic beverages;

(3) tobacco products; and

(4) sexually-oriented products and services.

(d) Advertising sales and solicitations.

(1) Mailing list. Any entity or individual interested in advertising in Texas Highways magazine will be included in the department's mailing list upon request. The department will annually publish in the Texas Register an invitation to be added to the mailing list and to receive advertising rate information.

(2) Publication of advertiser information. The department will calculate advertising rates and develop a rate card for Texas Highways magazine. The department will publish the information on a continuous basis in the Standard Rate and Data Service, Consumer Magazine and Agri-Media Source. The department will also publish the advertising rate information annually in the Texas Register.

(3) Contents of the rate card. The rate card will include information about:

(A) advertising space and positions;

(B) advertising rates;

(C) publication issue and closing dates;

(D) circulation data;

(E) publisher's editorial profile; and

(F) other related information.

(4) Procedure for selling advertising.

(A) The department and/or its designated agent will mail an announcement of advertising opportunities and the rate card to those on the mailing list 30 days after publication in the Texas Register.

(B) The department or its designated agent will subsequently mail a rate card upon request to an entity or individual not on the mailing list.

(C) The department or its designated agent will accept all insertion orders (orders for paid advertising) received prior to the closing date on a first-come, first-served basis until all advertising space for a particular publication is filled. All insertion orders will be stamped with the date as they are received. Insertion orders for an inside front cover spread and inside back cover spread will take precedence over an inside front cover and inside back cover insertion order, notwithstanding the date of receipt of the insertion order.

(D) Reminders of advertising space deadlines and rates may be mailed to those on the mailing list at the discretion of the department if advertising space remains available prior to space closing deadline.

(e) Restrictions.

(1) The department will not accept advertising it considers to be misleading or a misrepresentation of facts.

(2) The department will not accept advertising from an entity that discriminates against customers on the basis of race, color, creed, religion, sex, or national origin.

(3) The director may remove an advertiser based on the department's receipt of three or more consumer complaints concerning service or merchandise. The department will send a written notice of noncompliance to the advertiser. If the director determines the complaints are valid and they remain unresolved after 180 days, the director will remove the advertiser from Texas Highways magazine, and will no longer accept insertion orders from that advertiser. An advertiser may appeal the removal to the department's executive director, whose decision will be final.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on December 14, 2001.

TRD-200107891

Richard D. Monroe

General Counsel

Texas Department of Transportation

Earliest possible date of adoption: January 27, 2002

For further information, please call: (512) 463-8630


Part 2. TEXAS TURNPIKE AUTHORITY DIVISION OF THE TEXAS DEPARTMENT OF TRANSPORTATION

Chapter 50. MANAGEMENT

The Texas Department of Transportation proposes the repeal of Chapter 50, concerning management of the Texas Turnpike Authority Division of the Texas Department of Transportation. This proposed repeal includes §50.1 and §50.2, General Provisions; §§50.3-50.30, Governance of the Authority; §50.32 and §50.33, Public Meetings and Public Access; §§50.41-50.45, Employment Practices; §§50.50-50.54, Indemnification; and §50.60-§50.62, Public Records, Complaint Procedures, and Debt Collection.

EXPLANATION OF PROPOSED REPEALS

Senate Bill 342, 77th Legislature, 2001, abolished the Board of Directors (board) of the Texas Turnpike Authority Division (TTA) of the Texas Department of Transportation (department), subject to the approval by the voters of Senate Joint Resolution 16. The voters approved SJR 16 on November 6, 2001. Senate Bill 342 further provided that rules of the board continue in effect as rules of the Texas Transportation Commission (commission)

The commission promulgates rules governing the operations of the department, codified in Title 43, Part 1 (Chapters 1-31). The board was responsible for promulgating rules governing the operations of TTA, codified in Title 43, Part 2 (Chapters 50-54). With the abolishment of the board, TTA will be more completely consolidated with the department, and the commission will be responsible for promulgating rules governing the operations of TTA.

The rules contained in Chapter 50 are no longer necessary due to the abolishment of the board and, more specifically, the following reasons.

Subchapter A, General Provisions, will not be necessary due to the repeal of the entire chapter.

The provisions of §§50.3-50.26, 50.28-50.30, and 50.32 all govern the operations of the now abolished board.

The provisions of §§50.27 and 50.28 govern the staff of the TTA. This subject will now be governed by §1.2 and other department policies and procedures.

Section 50.33 concerns public access to information and auxiliary aids. This subject will now be governed by §1.5, concerning department public hearings, and other applicable department policies.

Subchapter D concerns employment practices. TTA employees will be governed by Chapter 4, Employment Practices, and the department's Human Resources Manual.

The provisions of Subchapter E, Indemnification, are not necessary due to provisions of state law and department policy.

Subchapter F concerns public records, complaint procedures, and debt collection. These subjects will be governed by: Chapter 3, Subchapter A, Access to Official Records; Chapter 3, Subchapter B, Complaint Resolution; and §5.10, Collection of Debts.

FISCAL NOTE

James Bass, Director, Finance Division, has determined that for each of the first five-years the repeals are in effect, there will be no fiscal implications for state or local governments as a result of enforcing or administering the repeals. There are no anticipated economic costs for persons required to comply with the repeals as proposed.

Phillip E. Russell, Director, Turnpike Authority Division, has certified that there will be no significant impact on local economies or overall employment as a result of enforcing or administering the repeals.

PUBLIC BENEFIT

Mr. Russell has also determined that for each year of the first five years the repeals are in effect, the public benefit anticipated as a result of enforcing or administering the repeals will be the repeal of unnecessary and duplicative rules. There will be no adverse economic effect on small businesses.

SUBMITTAL OF COMMENTS

Written comments on the proposed repeals may be submitted to Phillip E. Russell, Director, Turnpike Authority Division, 125 East 11th Street, Austin, Texas 78701-2483. The deadline for receipt of comments is 5:00 p.m. on January 28, 2002.

Subchapter A. GENERAL PROVISIONS

43 TAC §50.1, §50.2

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Turnpike Authority Division of the Texas Department of Transportation or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

STATUTORY AUTHORITY

The repeal is proposed under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and Transportation Code, §361.042, which requires the commission to adopt rules for the regulation of its affairs and the conduct of its business under Transportation Code, Chapter 361.

No statutes, articles, or codes are affected by the proposed repeals.

§50.1.The Authority

§50.2.Definitions

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on December 13, 2001.

TRD-200107862

Richard D. Monroe

General Counsel

Texas Turnpike Authority Division of the Texas Department of Transportation

Earliest possible date of adoption: January 27, 2002

For further information, please call: (512) 463-8630


Subchapter B. GOVERNANCE OF THE AUTHORITY

43 TAC §§50.3 - 50.30

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Turnpike Authority Division of the Texas Department of Transportation or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

STATUTORY AUTHORITY

The repeal is proposed under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and Transportation Code, §361.042, which requires the commission to adopt rules for the regulation of its affairs and the conduct of its business under Transportation Code, Chapter 361.

No statutes, articles, or codes are affected by the proposed repeals.

§50.3.Principal Office.

§50.4.General Powers.

§50.5.Number.

§50.6.Appointment.

§50.7.Qualifications.

§50.8.Term.

§50.9.Vacancies.

§50.10.Resignation and Removal.

§50.11.Compensation of Directors.

§50.12.Meetings.

§50.13.Quorum.

§50.14.Meetings by Telephone.

§50.15.Procedure.

§50.16.Committees.

§50.17.Notice.

§50.18.Waiver of Notice.

§50.19.Attendance as Waiver.

§50.20.Officers.

§50.21.Election and Term of Office.

§50.22.Removal and Vacancies.

§50.23.Chair.

§50.24.Vice Chair.

§50.25.Secretary.

§50.26.Treasurer.

§50.27.Administrators.

§50.28.Director.

§50.29.Assistant Secretary.

§50.30.Assistant Treasurer

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on December 13, 2001.

TRD-200107863

Richard D. Monroe

General Counsel

Texas Turnpike Authority Division of the Texas Department of Transportation

Earliest possible date of adoption: January 27, 2002

For further information, please call: (512) 463-8630


Subchapter C. PUBLIC MEETINGS AND PUBLIC ACCESS

43 TAC §50.32, §50.33

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Turnpike Authority Division of the Texas Department of Transportation or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

STATUTORY AUTHORITY

The repeal is proposed under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and Transportation Code, §361.042, which requires the commission to adopt rules for the regulation of its affairs and the conduct of its business under Transportation Code, Chapter 361.

No statutes, articles, or codes are affected by the proposed repeals.

§50.32.Public Access to Board Meetings

§50.33.Public Access to Information and Auxiliary Aids

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on December 13, 2001.

TRD-200107864

Richard D. Monroe

General Counsel

Texas Turnpike Authority Division of the Texas Department of Transportation

Earliest possible date of adoption: January 27, 2002

For further information, please call: (512) 463-8630


Subchapter D. EMPLOYMENT PRACTICES

43 TAC §§50.41 - 50.45

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Turnpike Authority Division of the Texas Department of Transportation or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

STATUTORY AUTHORITY

The repeal is proposed under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and Transportation Code, §361.042, which requires the commission to adopt rules for the regulation of its affairs and the conduct of its business under Transportation Code, Chapter 361.

No statutes, articles, or codes are affected by the proposed repeals.

§50.41.General Policy

§50.42.Sick Leave Pool Program

§50.43.Employee Training and Education

§50.44.Termination of Employees

§50.45.Standards of Conduct

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on December 13, 2001.

TRD-200107865

Richard D. Monroe

General Counsel

Texas Turnpike Authority Division of the Texas Department of Transportation

Earliest possible date of adoption: January 27, 2002

For further information, please call: (512) 463-8630


Subchapter E. INDEMNIFICATION

43 TAC §§50.50 - 50.54

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Turnpike Authority Division of the Texas Department of Transportation or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

STATUTORY AUTHORITY

The repeal is proposed under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and Transportation Code, §361.042, which requires the commission to adopt rules for the regulation of its affairs and the conduct of its business under Transportation Code, Chapter 361.

No statutes, articles, or codes are affected by the proposed repeals.

§50.50.Indemnification by the Authority.

§50.51.Expenses

§50.52.Procedure

§50.53.Additional Indemnification

§50.54.Definitions

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on December 13, 2001.

TRD-200107866

Richard D. Monroe

General Counsel

Texas Turnpike Authority Division of the Texas Department of Transportation

Earliest possible date of adoption: January 27, 2002

For further information, please call: (512) 463-8630


Subchapter F. PUBLIC RECORDS, COMPLAINT PROCEDURES AND DEBT COLLECTION

43 TAC §§50.60 - 50.62

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Turnpike Authority Division of the Texas Department of Transportation or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

STATUTORY AUTHORITY

The repeal is proposed under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and Transportation Code, §361.042, which requires the commission to adopt rules for the regulation of its affairs and the conduct of its business under Transportation Code, Chapter 361.

No statutes, articles, or codes are affected by the proposed repeals.

§50.60.Public Records

§50.61.Complaints Procedure

§50.62.Debt Collection

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on December 13, 2001.

TRD-200107867

Richard D. Monroe

General Counsel

Texas Turnpike Authority Division of the Texas Department of Transportation

Earliest possible date of adoption: January 27, 2002

For further information, please call: (512) 463-8630


Chapter 53. CONTRACTING AND PROCUREMENT PROCEDURES

The Texas Department of Transportation proposes the repeal of §§53.60-53.71, concerning disadvantaged business enterprise/historically underutilized business procedures, and §§53.90-53.94, concerning contract workforce.

EXPLANATION OF PROPOSED REPEALS

Senate Bill 342, 77th Legislature, 2001, abolished the Board of Directors (board) of the Texas Turnpike Authority Division (TTA) of the Texas Department of Transportation (department), subject to approval by the voters of Senate Joint Resolution 16. The voters approved SJR 16 on November 6, 2001. Senate Bill 342 further provided that rules of the board continue in effect as rules of the Texas Transportation Commission (commission).

The commission promulgates rules governing the operations of the department, codified in Title 43, Part 1 (Chapters 1-31). The TTA board of directors was responsible for promulgating rules governing the operations of TTA, codified in Title 43, Part 2 (Chapters 50-54). With the abolishment of the board, TTA will be more completely consolidated with the department, and the commission will be responsible for promulgating rules governing the operations of TTA.

Sections 53.60-53.71 establish policies and procedures to implement TTA's Disadvantaged Business Enterprise (DBE) and Historically Underutilized Business (HUB) programs. With the abolishment of the board, these rules are no longer needed since the department has comprehensive DBE and HUB program rules found in §§9.50-9.57.

Sections 53.90-53.94 describe the analyses required prior to TTA procuring and utilizing contract workforce. These rules will no longer be necessary since existing department contract workforce policies will be applicable to all department divisions using contract workforce.

FISCAL NOTE

James Bass, Director, Finance Division, has determined that for each of the first five-years the repeals are in effect, there will be no fiscal implications for state or local governments as a result of enforcing or administering the repeals. There are no anticipated economic costs for persons required to comply with the repeals as proposed.

Phillip E. Russell, Director, Turnpike Authority Division, has certified that there will be no significant impact on local economies or overall employment as a result of enforcing or administering the repeals.

PUBLIC BENEFIT

Mr. Russell has also determined that for each year of the first five years the repeals are in effect, the public benefit anticipated as a result of enforcing or administering the repeals will be the removal of duplicative and unnecessary rules. There will be no adverse economic effect on small businesses.

SUBMITTAL OF COMMENTS

Written comments on the proposed repeals may be submitted to Phillip E. Russell, Director, Turnpike Authority Division, 125 East 11th Street, Austin, Texas 78701-2483. The deadline for receipt of comments is 5:00 p.m. on January 28, 2002.

Subchapter D. DBE/HUB PROGRAM

43 TAC §§53.60 - 53.71

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Turnpike Authority Division of the Texas Department of Transportation or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

STATUTORY AUTHORITY

The repeal is proposed under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and Transportation Code, Section 361.042, which requires the commission to adopt rules for the regulation of its affairs and the conduct of its business under Transportation Code, Chapter 361.

No statutes, articles, or codes are affected by the proposed repeals.

§53.60.Purpose

§53.61.Definitions

§53.62.Policy

§53.63.Applicability

§53.64.DBE/HUB Goals

§53.65.Good Faith Effort

§53.66.DBE Certification

§53.67.HUB Certification

§53.68.Contract Compliance

§53.69.Business Complaints

§53.70.Investigation

§53.71.Appeals

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on December 13, 2001.

TRD-200107868

Richard D. Monroe

General Counsel

Texas Turnpike Authority Division of the Texas Department of Transportation

Earliest possible date of adoption: January 27, 2002

For further information, please call: (512) 463-8630


Subchapter E. CONTRACT WORKFORCE

43 TAC §§53.90 - 53.94

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Turnpike Authority Division of the Texas Department of Transportation or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

STATUTORY AUTHORITY

The repeal is proposed under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and Transportation Code, Section 361.042, which requires the commission to adopt rules for the regulation of its affairs and the conduct of its business under Transportation Code, Chapter 361.

No statutes, articles, or codes are affected by the proposed repeals.

§53.90.Purpose

§53.91.Definitions

§53.92.Prerequisites to Utilizing Contract Workforce

§53.93.Cost-Benefit Analyses

§53.94.Guidance

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on December 13, 2001.

TRD-200107869

Richard D. Monroe

General Counsel

Texas Turnpike Authority Division of the Texas Department of Transportation

Earliest possible date of adoption: January 27, 2002

For further information, please call: (512) 463-8630