TITLE 43.TRANSPORTATION

Part 1. TEXAS DEPARTMENT OF TRANSPORTATION

Chapter 6. STATE INFRASTRUCTURE BANK

The Texas Department of Transportation (department) proposes amendments to §6.23 and §6.32, concerning the State Infrastructure Bank (SIB).

EXPLANATION OF PROPOSED AMENDMENTS

The Texas Transportation Commission (commission) adopted rules to govern the SIB that became effective in early 1998 when the SIB was first being established. Since then, the SIB has provided over $91 million in financial assistance for transportation projects. Experience has shown that some of the requirements initially imposed on applicants are unnecessary. SIB applicants can now be relieved of the burden of complying with these unnecessary requirements.

Additional changes in the rules are made to provide the commission with greater flexibility in considering requests for financial assistance. Throughout the amended rules, non-substantive changes have been made to improve clarity, to conform to current Texas Register standards, and to make the rules consistent with the definitions and standards found in the Code Construction Act, Government Code, Chapter 311. References to loans are generalized to cover all forms of financial assistance.

Section 6.23(a)(5) is amended to give applicants more flexibility in submitting financial information when there is no applicable bond rating.

Section 6.23(a)(6) is amended to eliminate the mandatory requirement that an applicant determine a project's logical termini and independent utility, and that an applicant identify the location of all right of way, facilities, and equipment needed for a project. Experience has shown that it is not practical for applicants to provide this level of detail, and the need to identify logical termini and independent utility is better addressed in connection with the environmental review that occurs at the time of final approval.

Section 6.23(a)(8) and (9) is relocated without substantive change from former §6.23(b)(3)(A) and (B).

Section 6.23(b) is amended to eliminate the requirement that the listed information be submitted with respect to every application. The revised language allows the department to require any or all of this information if it is considered relevant to the project and the financing.

Section 6.23(b)(1)(C) is amended to allow a pro forma analysis to be submitted based on generally accepted accounting principles, instead of mandating that it be prepared on the basis of cash accounting. This will lower the burden on applicants who keep records based on the accrual method.

Section 6.32(a) is amended to broaden and generalize the items that the commission may consider in evaluating a request for financial assistance. This will give the commission more flexibility to consider any information it considers relevant in making any decision regarding financial assistance.

Section 6.32(b)(2) is reworded to enhance clarity. No substantive change is intended.

Section 6.32(c)(1)(G) is added to broaden and generalize the items that the commission may consider in connection with preliminary approval of financial assistance. This will give the commission more flexibility to consider any information it considers relevant in connection with preliminary approval of a request for financial assistance.

Section 6.32(c)(2)(E) is amended to generalize the requirement that the commission consider the ability of the applicant to repay financial assistance. Experience has shown that the detailed requirements formerly listed in this section are unnecessary in connection with many applications for financial assistance, and requiring this additional information from some applicants would impose an unnecessary burden.

Section 6.32(d)(1) is reworded to clarify the precise environmental requirements imposed on an applicant. No substantive change is intended.

Section 6.32(g) is amended to broaden the range of conditions that the commission may impose on preliminary or final approval. This change will give the commission more flexibility in evaluating requests for financial assistance.

Section 6.32(h) is amended to clarify that the rules should not be construed to require the commission to provide financial assistance. This qualification is implicit in the existing rules.

FISCAL NOTE

James Bass, Director, Finance Division, has determined that for each of the first five years the amended sections are in effect, there will be no fiscal implications to 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 sections as proposed.

Mr. Bass has certified that there will be no significant impact on local economies or overall employment as a result of enforcing or administering the proposed amendments.

PUBLIC BENEFIT

Mr. Bass has also determined that for each year of the first five years the proposed amendments are in effect, the public benefit anticipated as a result of enforcing or administering the amendments will be to reduce the burden on SIB applicants and to provide the commission with greater flexibility in evaluating applications. There will be no adverse economic effect on small businesses.

SUBMITTAL OF COMMENTS

Written comments on the proposed amendments may be submitted to James Bass, Director, Finance Division, 125 East 11th Street, Austin, Texas 78701-2483. The deadline for receipt of comments is 5:00 p.m. on July 15, 2002.

Subchapter C. PROCEDURES

43 TAC §6.23

STATUTORY AUTHORITY

The amendments are proposed under Transportation Code, §201.101, which provides the commission with the authority to establish rules for the conduct of the work of the department, and more specifically, Transportation Code, §222.077(d), which authorizes the commission to adopt rules governing the SIB.

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

§6.23.Application Procedure.

(a) Basic application. An eligible entity must [ shall ] submit an application to the executive director in a form prescribed by the department. The application must be accompanied by:

(1) an overview of the project, including [ which shall include ] a description of the project, the total cost of the project , and the proposed use of the requested financial assistance;

(2) the amount [ amounts ] of money required to supply the requested assistance , [ ( ]including [ the needs of ] any reserve funds that [ which ] must be established and held by the bank for the applicant's benefit, but that [ which ] may not be expended from the bank[ ) ];

(3) any proposed pledge of collateral or security and any prior [ priority of ] claim to those items;

(4) a description of the need for the project and its potential effect [ impact ] on traffic congestion and mobility; and

(5) the latest bond rating obtained by the applicant when using the sources of revenue to be pledged, or if not applicable, other evidence of creditworthiness [ similar to that required to obtain a bond rating ];

(6) official written approval of the project by the governing body of each entity that may become liable for repayment of any financial assistance;

(7) a binding commitment that the environmental consequences of the proposed project will be fully considered, and that the proposed project will comply with all applicable local, state, and federal environmental laws, regulations, and requirements;

(8) [ (6) ] for public roadway projects, a preliminary design study , including [ which includes ]:

(A) an initial route and potential alignments; and

[(B) the project's logical termini and independent utility;]

[(C) the location of all right-of-way, facilities and equipment required to make the project functional; and]

(B) [ (D) ] revisions or changes to state highway system facilities necessitated by the project; and

(9) [ (7) ] for transit projects, a preliminary scope study , including [ which shall include ] preliminary layouts, architectural drawings, equipment specifications, and other information necessary to [ fully ] describe the project fully and to comply with all requirements of the Federal Transit Administration.

(b) Supplemental information and data. The applicant may be required to [ shall ] submit any or all of the following supplemental information and data if [ . If the project is in the Unified Transportation Program's Priority 1 or Priority 2 designations, the applicant must submit only that supplemental information and data which ] the executive director finds that information or data to be relevant to the project and the requested financing. In determining the relevance of [ relevant ] supplemental information and data, the executive director will consider the complexity and size of the project, the type of infrastructure or asset involved, the type and complexity of financial assistance requested, the complexity of the project's and the applicant's financial status, and how soon transportation benefits will begin.

(1) Financial feasibility study. The applicant may be required to [ shall ] submit a financial feasibility study , including [ which must include ]:

(A) a project construction or asset acquisition schedule identifying the timing, amount, and source of all cash required;

(B) an analysis of the expected financing period of the project;

(C) a pro forma analysis based on generally accepted accounting principles [ cash basis accounting ] for the expected financing period of the project , including [ showing ]:

(i) anticipated [ cash ] revenues to be used in repayment by source;

(ii) anticipated [ cash ] disbursements by category , including disbursements for operations, maintenance, renewal, and replacement;

(iii) anticipated [ cash ] balances at the close of each calendar or fiscal year; and

(iv) funds [ cash ] used to meet the requirements of any sinking funds, reserve funds, and [ loan ] amortization payments;

(D) a description of the methods used in preparing the financial feasibility study, the assumptions contained in the study, and persons [ and entities ] responsible for the preparation of the study;

(E) the length of time the amounts will be outstanding or obligated;

(F) the anticipated interest rates applicable during the term of the financial assistance;

(G) any interest rate subsidies requested;

(H) the expected savings to the applicant resulting from the assistance; and

(I) a description of how the requested assistance will:

(i) expand the availability of funding for transportation projects;

(ii) reduce direct state costs;

(iii) maximize private and local participation in financing projects;

(iv) improve the efficiency of the state's transportation systems; and

(v) accelerate the project's transportation benefits over conventional financing methods.

(2) Project impacts. The applicant may be required to [ shall ] conduct studies analyzing the impact of the project , including [ . The studies must include ]:

(A) how the project will be consistent with the Statewide Transportation Plan and, if appropriate, with the metropolitan transportation plan (MTP) developed by an MPO [ a metropolitan planning organization ];

(B) if the project is in a Clean Air Act non-attainment area, how the project will be consistent with the Statewide Transportation Improvement Program (STIP) [ Plan ], with the conforming plan and Transportation Improvement Program (TIP) for the MPO [ metropolitan planning organization ] in which the project is located (if necessary), and with the State Implementation Plan (SIP) ; [ and ]

(C) the economic impact based on a study assessing the potential impact of the project on the economy of the region in which the project is to be located, including the economies of each county in which the project is to be located and of the municipalities within those counties ; [ . ]

[ (3) Commitments and approvals. The applicant shall obtain commitments and approvals which must include: ]

[(A) official written approval of the project by the governing body of each entity that which may become liable for repayment of any financial assistance;]

[(B) a binding commitment that the environmental consequences of the proposed project will be fully considered, and that the proposed project will comply with all applicable local, state, and federal environmental laws, regulations, and requirements;]

(D) [ (C) ] a preliminary identification of potential social, economic, and environmental impacts; and

(E) [ (D) ] appropriate documentary evidence of community involvement in the development of the proposed project and of public support for it.

(c) Waiver of required information or data. The executive director may waive submission of any individual item [ items ] of information or data required by this section under either of the following circumstances : [ if ]

(1) the information or data [ required by this section ] is not relevant to the project, applicant, or [ the ] financial assistance requested (in determining the relevance of [ relevant ] supplemental information and data, the executive director will consider the complexity and size of the project, the type of infrastructure or asset involved, the type and complexity of financial assistance requested, the complexity of the project's and the applicant's financial status, and how soon transportation benefits will begin); or

(2) the department already possesses information or data in a format that can [ which may ] be substituted for the required information or data.

(d) Requirement of additional information. The executive director may require the applicant to submit explanations and expansions of information or data required by this section [ which are relevant to the project, applicant, or financial assistance requested ]. In determining when additional relevant explanations and expansions of information or data will be [ are ] required, the executive director will consider the complexity and size of the project, the type of infrastructure or asset involved, the type, complexity, and amount of financial assistance requested, and the complexity of the project's and the applicant's financial status.

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 May 31, 2002.

TRD-200203373

Richard D. Monroe

General Counsel

Texas Department of Transportation

Earliest possible date of adoption: July 14, 2002

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


Subchapter D. DEPARTMENT AND COMMISSION ACTION

43 TAC §6.32

STATUTORY AUTHORITY

The amendments are proposed under Transportation Code, §201.101, which provides the commission with the authority to establish rules for the conduct of the work of the department, and more specifically, Transportation Code, §222.077(d), which authorizes the commission to adopt rules governing the SIB.

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

§6.32.Commission Action.

(a) Commission analysis. The commission will consider all relevant information, including [ determine ] the sufficiency of the information, the probable reliability of the projections, and the anticipated financial condition of the applicant and the project.

(b) Applications for limited financial assistance [ Small loan applications ].

(1) Applications for financial assistance in the amount of $250,000 or less may be approved by the commission without going through both the preliminary and final approval processes prescribed in subsections (c) and (e) of this section. These applications may be approved by the commission using one final approval process.

(2) Applications under this subsection must meet all the requirements and are subject to all the conditions applicable either to preliminary or final approval of financial assistance, except that the negotiation process under subsection (c)(3) of this section may be completed after final approval.

[(2) All considerations, determinations, and project requirements prescribed in subsections (c)-(e) and (h) of this section must be complied with prior to any final approval of applications under this subsection, with the exception of the negotiation process prescribed in subsection (c)(3) of this section, which may be completed after final approval. These applications are also subject to subsections (f) and (g) of this section.]

(3) The commission may require applications under this subsection to receive preliminary and final approval separately [ small loan applications to be subject to both the preliminary and final approval steps of this section ]. In making this determination, the commission will consider the complexity and size of the project, the type of infrastructure or asset involved, and the complexity of the project's and the applicant's financial status.

(c) Preliminary approval.

(1) Considerations. Prior to granting preliminary approval of an eligible project, the commission may [ will ] consider:

(A) whether the project is on the state highway system;

(B) the transportation need for and anticipated public benefit of the project;

(C) the present and projected financial condition of the bank;

(D) potential social, economic [ economical ], and environmental impacts;

(E) conformity with the purposes of the bank; [ and ]

(F) evidence of local public support ; and [ . ]

(G) any other relevant consideration.

(2) Project requirements. The commission may grant preliminary approval to a project for bank financing if it finds that:

(A) the project is consistent with the Statewide Transportation Plan and, if appropriate, with the metropolitan transportation plan (MTP) developed by an MPO [ a metropolitan planning organization ];

(B) if the project is in a Clean Air Act non-attainment area, the project will be consistent with the Statewide Transportation Improvement Program (STIP) [ Plan ], with the conforming plan and Transportation Improvement Program (TIP) for the MPO [ metropolitan planning organization ] in which the project is located (if necessary), and with the State Implementation Plan (SIP) ;

(C) the project will improve the efficiency of the state's transportation systems;

(D) the project will expand the availability of funding for transportation projects or reduce direct state costs; and

(E) the application shows that the project and the applicant are likely to have sufficient revenues to assure repayment of the financial assistance [ according to the terms of the agreement ]. [ In making this finding, the commission will consider: ]

[(i) the probable ability of any pledged revenues to meet all obligations of the project and to repay the financial assistance to the bank;]

[(ii) management of the project;]

[(iii) adequacy of working capital and operating funds;]

[(iv) collateral and other guarantees of repayment;]

[(v) how quickly the financial assistance will be repaid; and]

[(vi) the presence of credit insurance or other guarantees.]

(3) Authorized actions. By granting preliminary approval, the commission authorizes the executive director to negotiate:

(A) the project's limits, scope, definition, design, and any other factors that may effect [ which might impact ] the financing of the project;

(B) the amount, type , and timing of disbursements of financial assistance;

(C) the interest rates , including subsidies;

(D) the fees;

(E) the charges;

(F) the repayment schedules;

(G) the term to maturity of any financial assistance;

(H) the collateral securing the financial assistance;

(I) the appropriate covenants applicable to the financial assistance;

(J) the default provisions; and

(K) all other provisions necessary to complete an agreement under Subchapter E of this chapter [ (relating to Financial Assistance Agreements) ].

(d) Social, economic [ economical ], and environmental impact.

(1) Before final approval is granted [ Prior to receiving final approval ] under subsection (e) of this section, the department or the applicant must [ shall ] complete a study of the social, economic [ economical ], and environmental impact of the project . The study must meet all requirements for a federal or state project as if the project had been undertaken directly by the department. [ , consistent with the spirit and intent of the National Environmental Policy Act, Title 42, United States Code, §§4321 et seq., and Title 23, United States Code, §109(h), and shall provide for public involvement and meet all other requirements of Chapter 2, Subchapter C of this title (relating to Environmental Review and Public Involvement For Transportation Projects). ]

(2) For a project not on the state highway system, the applicant shall be responsible for completing required studies of social, economic [ economical ], and environmental impacts , unless the applicant and the department agree otherwise. If the department agrees to be responsible for these studies, then any costs will be charged according to the department's local participation agreement.

(3) For a project on the state highway system, the department will [ shall ] be responsible for completing required studies of social, economic [ economical ], and environmental impacts with any costs to be charged to the project.

(e) Final approval. After [ Subsequent to ] preliminary approval under subsection (c) of this section, the completion of negotiations under subsection (c)(3) of this section, and the approval of the social, economic [ economical ], and environmental study [ impact ] required by subsection (d) of this section, the commission may grant final approval if it determines that:

(1) providing financial assistance will protect the public's [ public ] safety and prudently provide for the protection of public funds , while furthering the purposes of this chapter; and

(2) the project will provide for all reasonable and feasible measures to avoid, minimize, or mitigate for adverse environmental impacts.

(f) Postponement. The commission may postpone final approval if it finds that the current or projected financial condition of the bank warrants this action.

(g) Contingencies. The commission may make its preliminary or final approval contingent on further actions by the applicant, including [ upon the applicant ] making changes in the application , levying taxes, and [ performing other acts, or ] maintaining specified [ certain ] conditions necessary to assure repayment [ provide for adequacy of repayments ].

(h) Order of approval or disapproval. Approval or disapproval of financial assistance [ the project ], whether preliminary or final, will [ shall ] be by written order of the commission [ , ] and will [ shall ] include the rationale, findings, and conclusions on which approval or disapproval is based. Approval or disapproval will be in the sole discretion of the commission, and nothing in this subchapter is intended to require approval of any financial assistance.

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 May 31, 2002.

TRD-200203372

Richard D. Monroe

General Counsel

Texas Department of Transportation

Earliest possible date of adoption: July 14, 2002

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


Chapter 11. DESIGN

The Texas Department of Transportation (department) proposes the repeal of §§11.50-11.53, concerning access driveways to state highways, and simultaneously proposes new §§11.50-11.55, concerning access management.

EXPLANATION OF PROPOSED REPEALS AND NEW SECTIONS

Transportation Code, Chapter 203, provides that the Texas Transportation Commission (commission) may lay out, 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 highways, it is imperative that they provide maximum traffic handling capacity for as long as practical. Adjacent development and access points along highways contribute to congestion and early deterioration of the operation of the highway, thereby reducing the ability of the state highway system to safely and efficiently move higher volumes of traffic.

In the December 28, 2001 issue of the Texas Register (26 TexReg 10816), the department proposed amendments to §15.54. Those amendments proposed limitations on the construction of frontage roads and prohibition on most new access to controlled access corridors. Those amendments are being withdrawn by separate action. The department received numerous comments to the proposed amendments to §15.54 stating that traffic congestion on the state highway system can be best addressed through the adoption of a comprehensive access management policy. The department agrees and therefore proposes new §§11.50-11.55.

Existing §§11.50-11.53 provide the current regulations for access driveways to state highways. Section 11.50 includes definitions for public, commercial, and private access driveways. Section 11.51 outlines the safety and operational basis for determining access driveways locations and the purpose they serve. Section 11.52 outlines the responsibilities for construction and maintenance of access driveways. Section 11.53 describes the conditions under which these rules apply. These sections are all proposed for repeal and will be replaced by language in new §§11.50-11.55.

New §11.50 defines terms used in this subchapter.

New §11.51 provides that the subchapter applies to new approaches or driveways and those that are reconstructed as part of a department project.

New §11.52 describes the process for determining where access may be permitted on a new location facility. Unless the commission determines otherwise, all new location facilities such as freeways, relief routes, loops, and major urban roadways will be designated as controlled access facilities pursuant to Transportation Code, Chapter 203, as a method of preserving mobility and safety on these new facilities. To maximize mobility and safety both on and off the state highway system, the department will work cooperatively with local governments and property owners to determine the location and type of access to the proposed facility that may be permitted, provided access is in conformance with the department's Access Management Manual. The Access Management Manual is available from the department for reference.

After the department has established a proposed access management plan for the facility, the commission will review the plan and determine whether to approve the location and type of access proposed. To ensure consistency with the Access Management Manual, access points approved by the commission under this section will be specifically described by a metes and bounds property description. To aid the project development process, subsequent to the release to begin right of way acquisition, local governments or individuals desiring access not in conformance with the approved access management plan must request commission approval to acquire the access rights at a specific location in the same manner as required for existing facilities.

New §11.53 describes the process to be followed regarding access to existing facilities. Subsection (a) describes options regarding the right to access a state highway undergoing reconstruction when property owners already possess a right of access. To maximize mobility and safety both on and off the state highway system, the department will work together with local governments and property owners to review existing access points for impacts on mobility, safety, and the efficient operation of the highway facility and reasonable conformance with the Access Management Manual.

Subsection (b) describes the process for obtaining approval of a new access point to an existing facility where the department does not own the access rights. To protect safety and mobility on the state highway system, the department may permit access to the highway based on the impacts on the mobility, safety, and efficient operation of the state highway facility and in accordance with the Access Management Manual and driveway permit procedures adopted by the department.

Subsection (c) describes the process for obtaining approval to purchase a new access point to an existing facility where the department owns the access rights. To maximize mobility and safety both on and off the state highway system, this subsection provides that the department will work cooperatively with the applicable local government and the requestor to determine the location and type of access that may be permitted. To ensure that the proposed access will maximize mobility and safety, the request must include an engineering study, which may include a Traffic Impact Analysis, acceptable to the department that evaluates mobility, safety, and the operational impacts on the state highway facility. Once the department has reached an agreement with the requestor, the commission will determine whether to approve the sale of the department's access rights to the requestor.

New §11.54 describes the construction and maintenance requirements for approved access driveways. Since a commercial or private access driveway benefits primarily the property owner, the permittee is responsible for all costs associated with the construction and maintenance of the driveway. Since public access driveways benefit both the permittee and the traveling public, the department will maintain these facilities within the state highway right of way if they connect to highways that are the maintenance responsibility of the department and provided that the permittee pays for the cost of materials and installation of the driveway.

To ensure the safety of the traveling public and to protect the integrity of the highway facility by providing for proper drainage of storm water in the area, §11.54 provides that access driveways must not alter or impede drainage and that department approval of the drainage structure for the driveway is required.

To minimize impacts on adjacent landowners when access driveways are destroyed or removed as part of highway construction, §11.54 provides that the department, when replacing or reconstructing those impacted driveways, will do so in accordance with the Access Management Manual and to a condition equal to or better than the original driveway.

To ensure the safety of the traveling public and to protect the integrity of the highway facility, §11.54 also requires the holder of a driveway permit to take corrective action when drainage or safety problems occur. Section 11.54 further provides that the department may make the necessary alterations to correct a safety or drainage problem and hold the permittee financially responsible if the permittee fails to correct the problem.

To ensure that the department considers all reasonable alternatives during project development, new §11.55 provides that the department may construct local access roads when necessary to restore circulation, to resolve a landlock condition on a parcel of land, or when the local access roads will otherwise benefit the state highway system. This section provides that commission approval must be obtained prior to the department entering into any agreements to provide local access roads in conjunction with a department project.

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 the repeals or enforcing or administering the new sections. There are no anticipated economic costs for persons required to comply with the sections as proposed.

Ken Bohuslav, P.E., Director, Design Division, has certified that there will be no significant statewide impact on local economies or overall employment as a result of enforcing or administering the repeals or new sections. Any impact on a specific local economy is unknown and would be a matter of conjecture.

PUBLIC BENEFIT

Mr. Bohuslav has also determined that for each year of the first five years the sections are in effect, the public benefits anticipated as a result of enforcing or administering the sections will be to preserve the safety, mobility, and efficient operation of the state highway system. By minimizing the degradation of highway system operations, the department anticipates that fewer additional highways will be needed, thereby saving in future public expenditures for highway construction. In addition, interested parties will find all information related to access to the state highway system conveniently located in Chapter 11. There will be no adverse economic effect statewide on small businesses.

PUBLIC HEARING

Pursuant to the Administrative Procedure Act, Government Code, Chapter 2001, the department will conduct three public hearings to receive comments concerning the proposed rules. Each public hearing will begin at 2:00 p.m. on the following dates and at the following locations:

June 26, 2002: Joe C. Thompson Conference Center Auditorium, Dean Keeton 26th & Red River, Austin, Texas 78705.

July 1, 2002: TxDOT Houston District Office, 7721 Washington Avenue, Houston, Texas 77251.

July 3, 2002: Irving Arts Center, 3333 North MacArthur Boulevard, Irving, Texas 75062.

These public hearings will be conducted in accordance with the procedures specified in 43 TAC §1.5. Those desiring to make official comments or presentations may register starting at 1:30 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.

SUBMITTAL OF COMMENTS

Written comments on the proposed repeals and new sections may be submitted to Ken Bohuslav, P.E., Director, Design Division, 125 East 11th Street, Austin, Texas 78701-2483. The deadline for receipt of comments is 5:00 p.m. on July 15, 2002.

Subchapter C. ACCESS DRIVEWAYS TO STATE HIGHWAYS

43 TAC §§11.50 - 11.53

(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 department.

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

§11.50.Definitions.

§11.51.Access Driveway Facilities.

§11.52.Access Driveway Facilities Outside the Corporate Limits of Municipalities.

§11.53.Applicability.

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 May 31, 2002.

TRD-200203371

Richard D. Monroe

General Counsel

Texas Department of Transportation

Earliest possible date of adoption: July 14, 2002

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


Subchapter C. ACCESS MANAGEMENT

43 TAC §§11.50 - 11.55

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 department.

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

§11.50.Definitions.

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

(1) Access Management Manual--Guidelines adopted by the department to provide for reasonable access to a state highway facility while ensuring mobility, safety, and the efficient operation of the state highway system.

(2) Commercial access driveway--An entrance to, or exit from, any commercial, business, or similar type establishment.

(3) Commission--The Texas Transportation Commission.

(4) Controlled access facility--A facility designated by the commission under Transportation Code, Chapter 203, where the commission controls the location and type of access. Controlled access facilities include freeways where direct access to the mainlanes is not permitted and highways where limited direct access to the mainlanes may be permitted in accordance with the Access Management Manual.

(5) Department--The Texas Department of Transportation.

(6) Engineering study--An appropriate level of analysis, which may include a Traffic Impact Analysis, that determines the expected impact that permitting access will have on mobility, safety, and the efficient operation of the state highway system, and prepared in accordance with the Access Management Manual.

(7) Freeway--A facility intended to safely and efficiently move large volumes of traffic at high speeds where preference is given to through traffic by providing access to selected public roads only, and by prohibiting crossings at grade and direct private driveway connections to the mainlanes.

(8) Local access management guidelines--Guidelines adopted by a local government that meet or exceed the requirements in the Access Management Manual and provide for reasonable access while ensuring the mobility and safety of roadways within its jurisdiction.

(9) Local access road--A local public street or road, generally one that is parallel to a highway on the state highway system, that provides access for businesses or properties located between the highway and the local access road.

(10) Loop--A fully or partially circumferential route on a new location that is constructed primarily to improve mobility and reduce congestion on existing routes.

(11) Permittee--A property owner or his or her authorized representative who receives a driveway permit from the department to construct or modify an access driveway from the property to a highway under the jurisdiction of the department.

(12) Private access driveway--An entrance to, or exit from, a residential dwelling, farm, or ranch for the exclusive use and benefit of the permittee.

(13) Public access driveway--Any approach from a county or city maintained road or street, or an entrance to, or exit from, a public school, a publicly owned cemetery, or other publicly owned place or building of a like character.

(14) Relief route--A new location highway that is constructed primarily to improve mobility and reduce congestion on an existing route.

(15) Traffic Impact Analysis (TIA)--A traffic engineering study, paid for by the person or entity requesting access, conducted in accordance with the Access Management Manual, and signed, sealed, and dated by an engineer licensed to practice in the State of Texas, that determines the potential traffic impacts of a proposed traffic generator. This study must include, but is not limited to, an estimation of future traffic with and without the proposed generator, analysis of the traffic impacts including a capacity and operational analysis of both the main roadways and adjacent intersections impacted by the generator, and the recommended roadway and intersection improvements needed to accommodate the expected traffic within logical limits or boundaries.

§11.51.Applicability.

This subchapter applies to all new access driveway facilities constructed on highways under the jurisdiction of the department. It also applies to existing driveways that may be reconstructed as part of a department project.

§11.52.Access to new location facilities.

(a) Intent. The intent of the department when developing new location facilities is to provide for the mobility and safety of the traveling public. All new location facilities such as freeways, relief routes, loops, and major urban roadways will be designated as controlled access facilities pursuant to Transportation Code, Chapter 203, unless the commission determines otherwise. Access to these facilities may be permitted in accordance with the provisions of this section. Typically, rural low-volume roads will not be designated as controlled access facilities.

(b) Determination. Prior to acquiring right of way for a project, the department will work cooperatively with the local government and property owners to determine the location and type of access to the proposed facility that may be permitted. Access must conform to the Access Management Manual. Access may be provided by the inclusion of frontage roads or by other means. Preference will be given to public access and shared use driveways.

(c) Approval. The commission may approve the provision of access on controlled access facilities after considering:

(1) impacts on mobility, safety, and the efficient operation of the state highway facility as determined by an engineering study, which may include Traffic Impact Analysis, acceptable to the department;

(2) conformance of the proposal to local access management guidelines; and

(3) significant prior commitments such as a local transportation plan adopted prior to January 1, 2002 or department release to begin right of way acquisition.

(d) Documentation. Access points on new location controlled access facilities that are approved by the commission under this section must be specifically described by a metes and bounds property description.

(e) Modification. Subsequent to the release to begin right of way acquisition, local governments or individuals desiring access must request commission approval to acquire the access rights at a specific location under the provisions of §11.53 of this subchapter.

§11.53.Access to existing facilities.

(a) Existing driveways. Property owners with right of access to the state highway system prior to a highway reconstruction project will retain access to the facility by either the retention of their existing driveway, the inclusion of frontage roads, or by other means, unless access rights are purchased by the department to resolve a safety, mobility, or operational concern. During project development, the department will work with the local government and property owners to review existing access points for impacts on mobility, safety, and the efficient operation of the highway facility and reasonable conformance to the Access Management Manual.

(b) New driveways to existing facilities where the department does not own the access rights. Access to the state highway system may be permitted based on the impacts to mobility, safety, and the efficient operation of the state highway facility and in accordance with the Access Management Manual and driveway permit procedures adopted by the department.

(c) New driveways to existing facilities where the department owns the access rights. Requests to purchase the department's access rights will be considered under the provisions of this subsection. Appraisals will be prepared at the sole cost of the requestor.

(1) Determination. When an individual or entity requests access to a controlled access facility, the department will work cooperatively with the applicable local government and the requestor to determine the location and type of access that may be permitted to the facility. The requested access must be in conformance with the Access Management Manual and local access management guidelines. The request must include an engineering study, which may include a Traffic Impact Analysis, acceptable to the department. Access may be provided by the inclusion of frontage roads or by other means.

(2) Approval. Commission approval is required to sell the department's access rights. In determining whether to approve the sale of access rights, the commission will consider the information submitted with the request, including the findings of the engineering study, and significant prior commitments such as a local transportation plan adopted prior to January 1, 2002.

(3) Documentation. When the commission approves a sale of access rights to the owner of property adjoining the facility, the sale will be accomplished under Transportation Code, Chapter 202, Subchapter B. Access points approved by the commission under this paragraph will be specifically described by a metes and bounds property description.

§11.54.Construction and maintenance of approved access driveways.

(a) For commercial and private access driveways, the cost of materials, installation, and maintenance is the responsibility of the permittee.

(b) For public access driveways, the cost of materials and installation is the responsibility of the permittee. The department shall maintain all portions of public access driveways that lie within the state highway right of way and that connect to highways that are the maintenance responsibility of the department.

(c) Access driveways must not alter or impede drainage. When drainage structures are required, size of opening and other design features shall be approved by the department.

(d) Except as provided in §11.53(a) of this subchapter, any existing driveway facility that is destroyed or removed in the construction or reconstruction of a section of highway will be replaced or reconstructed by the department to a design in accordance with the Access Management Manual and to a condition equal to or better than the original driveway.

(e) If drainage or safety problems related to new driveway facilities occur, it is the permittee's responsibility to take corrective action. If drainage or safety problems related to existing commercial or private access driveways occur, it is the permittee's responsibility to take corrective action. If the permittee fails to take corrective action, the department may make the necessary alterations and hold the permittee financially responsible. The department will correct drainage or safety problems related to existing public access driveways.

§11.55.Local access roads.

If local access roads are necessary to restore circulation or to resolve a landlock condition on a parcel of land, or will otherwise benefit the state highway system, local access roads may be included in a department project on a standard participation basis as established in Appendix A of §15.55 of this title (relating to Construction Cost Participation). Commission approval must be obtained prior to the department entering into any agreements to provide local access roads in conjunction with a department project. Local access roads will not be considered service projects as defined in §15.56 of this title (relating to Local Financing of Highway Improvement Projects on the State Highway System).

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 May 31, 2002.

TRD-200203370

Richard D. Monroe

General Counsel

Texas Department of Transportation

Earliest possible date of adoption: July 14, 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 (department) proposes amendments to §15.54, construction, concerning federal, state, and local participation in highway improvement projects.

EXPLANATION OF PROPOSED AMENDMENTS

Transportation Code, Chapter 203, provides that the Texas Transportation Commission (commission) may lay out, 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 highways, it is imperative that they provide maximum traffic handling capacity for as long as practical. Adjacent development and access points along highways may contribute to congestion and early deterioration of the operation of the highway, thereby reducing the ability of the state highway system to safely and efficiently move higher volumes of traffic.

In the December 28, 2001, issue of the Texas Register (26 TexReg 10816), the department proposed amendments to §15.54. These amendments proposed limitations on the construction of frontage roads and prohibition on most new access to controlled access corridors. Those proposed amendments are withdrawn by separate action. The department received numerous comments to the proposed amendments stating that traffic congestion on the state highway system can be best addressed through the adoption of a comprehensive access management policy. The department agrees and under separate action, is proposing adoption of new §§11.50-11.55, concerning access management on the state highway system.

These new proposed amendments to §15.54 delete subsection (d) thereby eliminating confusion that results from an assumption that access will be afforded if a frontage road is constructed. The department intends to construct frontage roads, when appropriate to do so, and will eliminate the consideration of how the frontage road is funded from the decision of whether to build a frontage road. Once frontage road construction has been approved by the department, funding decisions will be negotiated based on the benefit to the state highway system provided by the frontage road. The remaining language in subsection (d) relates to access issues and is no longer appropriate in this section concerning federal, state, and local participation in highway improvement projects. This language has been consolidated into the new sections proposed in Chapter 11.

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 no fiscal implications for state or local governments as a result of enforcing or administering the amended section. There are no anticipated economic costs for persons required to comply with the amendments as proposed.

Ken Bohuslav, P.E., 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 amended section.

PUBLIC BENEFIT

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 that interested parties will find that all information related to access provisions to the state highway system are conveniently located in Chapter 11. There will be no adverse economic effect on small businesses.

PUBLIC HEARING

Pursuant to the Administrative Procedure Act, Government Code, Chapter 2001, the department will conduct three public hearings to receive comments concerning the proposed amendments. Each public hearing will begin at 2:00 p.m. on the following dates and at the following locations:

June 26, 2002: Joe C. Thompson Conference Center Auditorium, Dean Keeton 26th & Red River, Austin, Texas 78705.

July 1, 2002: TxDOT Houston District Office, 7721 Washington Avenue, Houston, Texas 77251.

July 3, 2002: Irving Arts Center, 3333 North MacArthur Boulevard, Irving, Texas 75062.

These public hearings will be conducted in accordance with the procedures specified in 43 TAC §1.5. Those desiring to make official comments or presentations may register starting at 1:30 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.

SUBMITTAL OF COMMENTS

Written comments on the proposed amendments may be submitted to Ken Bohuslav, P.E., Director, Design Division, 125 East 11th Street, Austin, Texas 78701-2483. The deadline for receipt of comments is 5:00 p.m. on July 15, 2002.

STATUTORY AUTHORITY

The amendments are proposed under Transportation Code, §201.101, which provides the commission with the authority to establish rules for the conduct of the work of the department.

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) 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).]

(d) [ (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.

(e) [ (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.

(f) [ (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.

(g) [ (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 May 31, 2002.

TRD-200203368

Richard D. Monroe

General Counsel

Texas Department of Transportation

Earliest possible date of adoption: July 14, 2002

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


Chapter 17. VEHICLE TITLES AND REGISTRATION

Subchapter B. MOTOR VEHICLE REGISTRATION

43 TAC §17.29

The Texas Department of Transportation (department) proposes amendments to §17.29, concerning vehicle registration renewal via the internet.

EXPLANATION OF PROPOSED AMENDMENTS

The Texas Transportation Commission (commission) adopted §17.29 in 2000 to establish a pilot program for vehicle registration renewal over the internet. This program has been successful, and it is now appropriate to revise the rules to incorporate experience gained in administering the pilot program. Moreover, the proposed amendments should facilitate the expansion of the program into more Texas counties.

Amended §17.29 eliminates references to internet registration as a pilot program. It also changes the procedures for allocating credit card fees.

Section 17.29(a) is amended to delete the reference to the development of the internet registration renewal system.

Existing §17.29(b)(1) is deleted because the program is no longer a pilot program.

Section 17.29(c) is amended to remove the requirement that registration must expire no more than 90 days after the date on which the application for registration renewal is submitted. Experience has shown that this qualification is unnecessary.

Section 17.29(d) is amended to alter the allocation of fees collected in connection with internet registration. The total fee of $3.00 remains unchanged, but $2.00 will be charged for credit card processing instead of $1.00 for credit card processing and $1.00 for electronic registration renewal. This reallocation will enable higher payments to a credit card service provider and therefore will facilitate expansion of the program into more counties.

Section 17.29(f)(2) is amended to replace references to "contract" with references to "agreement." In addition, references to a third-party vendor are no longer required.

Section 17.29(f)(4) is deleted because it is no longer necessary. The technical requirements for participation in internet registration are inherent in the department's RTS II software and need not be addressed separately.

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 no 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 section 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 of the first five years the amendments 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 registration renewal via the internet. 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 written comments is 5:00 p.m. on July 15, 2002.

STATUTORY AUTHORITY

The amendments are proposed under Transportation Code, §201.101, which provides the commission with the authority to establish rules for the conduct of the work of the department, and more specifically, Transportation Code, §502.0021, which requires the department to adopt rules governing the issuance of motor vehicle registration.

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

§17.29.Vehicle Registration Renewal via the Internet.

(a) Internet Registration Renewal Program. [ Development of internet registration renewal system. ] The department will [ develop and ] maintain a uniform internet registration renewal process. This process will provide for the renewal of vehicle registrations via the internet and will be in addition to vehicle registration procedures provided for in §17.22(d) of this subchapter. The internet registration renewal program [ system ] will be facilitated by a third-party vendor.

(b) County participation in program. County participation is optional and requires approval from the commissioners court of a county. A county tax assessor-collector must submit an agreement to the director indicating intent to participate in the program.

[ (b) Selection of counties for participation.]

[ (1) Pilot program. Before the system is implemented statewide, the director may begin implementation in a limited number of counties for the purpose of testing and adjusting the system's performance.]

[ (A) After receiving necessary approval from the commissioners court of a county, a county tax assessor-collector who wishes to participate in the pilot program may request approval from the director.]

[ (B) The director will choose no more than 15 counties to participate in the pilot program. Counties will be selected on the basis of:]

[ (i) whether the county is actively developing internet registration renewal processing;]

[ (ii) whether the county is adjacent to a county described in clause (i) of this subparagraph; and]

[ (iii) ability and willingness to work flexibly with the department and the third-party vendor in implementing and adjusting the pilot program on a trial basis.]

[ (2) Statewide program. The director will determine when the program is sufficiently developed for statewide implementation. All counties participating in the pilot program will automatically be a part of the statewide program, provided ongoing program requirements are met.]

[ (A) After receiving necessary approval from the commissioners court of a county, a county tax assessor-collector may request approval from the director to participate in the statewide program.]

[ (B) The director will approve participation in the statewide program on the basis of:]

[ (i) the ability of the program to accommodate an additional county at a particular time; and]

[ (ii) the ability of the county to meet the requirements of the statewide program.]

(c) Eligibility of individuals for participation. To be eligible to renew a vehicle's registration via the internet, a vehicle owner must meet the following criteria.

(1) The vehicle owner must meet all criteria for registration renewal outlined in this section, in §17.22 of this subchapter, and in Transportation Code, Chapter 502.

(2) The vehicle owner must be a resident of a participating county.

(3) The vehicle must have [ current ] registration at the time [ and that registration must expire no more than 90 days after the date on which ] the application for registration renewal is submitted. In calculating the expiration date of the [ current ] registration, the 5-working-day grace period established by Transportation Code, §502.407, will not be considered. The county shall register the vehicle for a 12-month period without changing the initial month of registration.

(d) Fees. A vehicle owner who renews registration via the internet [ Internet ] must pay:

(1) registration fees prescribed by law;

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

(3) a fee of $1.00 for the processing of a registration renewal by mail in accordance with Transportation Code, §502.101(a); and

[ (4) a fee of $1.00 for the processing of an electronic registration renewal in accordance with Transportation Code, §502.101(b); and]

(4) [ (5) ] a convenience fee of $2.00 [ $1.00 ] for the processing of an electronic registration renewal paid by a credit card payment in accordance with [ §5.43 of this title (relating to Methods of Payment), and ] Transportation Code, §201.208.

(e) Information to be submitted by vehicle owner. A vehicle owner who renews registration via the internet must submit or verify the following information:

(1) registrant information, including the vehicle owner's name and county of residence;

(2) vehicle information, including the license plate number of the vehicle to be registered;

(3) insurance information, including the name of the insurance company, the name of the insurance company's agent (if applicable), the telephone number of the insurance company or agent (local or toll free number serviced Monday through Friday 8:00 a.m. to 5:00 p.m.), the insurance policy number, and [ a ] representation that the policy meets all applicable legal standards;

(4) credit card information, including the type of credit card, the name appearing on the credit card, the credit card number, and the expiration date; and

(5) other information prescribed by rule or statute.

(f) Duties of participating counties. A participating county tax assessor-collector shall:

(1) accept electronic payment for vehicle registration renewal via the internet;

(2) execute an agreement [ a contract ] with the department [ and a third-party vendor, ] as provided by the director;

(3) process qualified internet registration renewal transactions as submitted by the third-party vendor;

[ (4) meet all technical requirements established by the department for participation in the internet registration renewal system;]

(4) [ (5) ] communicate with the third-party vendor and applicants via email, regular mail, or other means, as specified by the director;

(5) [ (6) ] promptly mail renewal registration validation stickers and license plates to applicants;

(6) [ (7) ] ensure that all requirements for registration renewal are met, including all requirements set forth in this section, in §17.22 of this subchapter, and in Transportation Code, Chapter 502; and

(7) [ (8) ] reject applications that do not meet all requirements set forth in this section, in §17.22 of this subchapter, and [ or ] in Transportation Code, Chapter 502.

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 May 31, 2002.

TRD-200203366

Richard D. Monroe

General Counsel

Texas Department of Transportation

Earliest possible date of adoption: July 14, 2002

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


Chapter 21. RIGHT OF WAY

Subchapter F. DISPOSAL OF REAL ESTATE INTERESTS

43 TAC §21.104

(Editor's note: The text of the following section proposed for repeal will not be published. The section 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.)

The Texas Department of Transportation (department) proposes the repeal of §21.104, concerning substitute consideration for disposal of access rights.

EXPLANATION OF PROPOSED REPEAL

Transportation Code, Chapter 202, Subchapter B, authorizes the department to sell any interest in real property, including highway right of way, that was acquired for a highway purpose and, as determined by the Texas Transportation Commission (commission), is no longer needed for that purpose.

Since the statute adequately addresses the subject, §21.104 is not necessary and is proposed for repeal to eliminate confusion regarding the circumstances under which a frontage road may be constructed and access provided when a third party contributes to the cost of constructing the frontage road.

FISCAL NOTE

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

Ken Bohuslav, P.E., 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 this repeal.

PUBLIC BENEFIT

Mr. Bohuslav has also determined that for each year of the first five years the repeal is in effect, the public benefit anticipated as a result of the repeal will be to further the department's mission to provide an efficient and fair process of selling surplus property and maximizing the generation of revenue for the department. The public will also benefit from having all information related to access provisions to the state highway system located together in Chapter 11. There will be no adverse economic effect on small businesses.

PUBLIC HEARING

Pursuant to the Administrative Procedure Act, Government Code, Chapter 2001, the department will conduct three public hearings to receive comments concerning the proposed repeal. Each public hearing will begin at 2:00 p.m. on the following dates and at the following locations:

June 26, 2002: Joe C. Thompson Conference Center Auditorium, Dean Keeton 26th & Red River, Austin, Texas 78705.

July 1, 2002: TxDOT Houston District Office, 7721 Washington Avenue, Houston, Texas 77251.

July 3, 2002: Irving Arts Center, 3333 North MacArthur Boulevard, Irving, Texas 75062.

These public hearings will be conducted in accordance with the procedures specified in 43 TAC §1.5. Those desiring to make official comments or presentations may register starting at 1:30 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.

SUBMITTAL OF COMMENTS

Written comments on the proposed repeal of this section may be submitted to Ken Bohuslav, P.E., Director, Design Division, 125 East 11th Street, Austin, Texas 78701-2483. The deadline for receipt of comments is 5:00 p.m. on July 15, 2002.

STATUTORY AUTHORITY

The repeal is proposed under Transportation Code, §201.101, which provides the commission with the authority to establish rules for the conduct of the work of the department.

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

§21.104.Substitute Consideration for Disposal of Access Rights.

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 May 31, 2002.

TRD-200203365

Richard D. Monroe

General Counsel

Texas Department of Transportation

Earliest possible date of adoption: July 14, 2002

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


Chapter 25. TRAFFIC OPERATIONS

Subchapter C. CONGESTION MITIGATION FACILITIES

43 TAC §§25.40 - 25.43

The Texas Department of Transportation (department) proposes new §§25.40-25.43, concerning congestion mitigation facilities, specifically the designation, development, and operation of high occupancy vehicle (HOV) lanes and high occupancy toll (HOT) lanes on the state highway system.

EXPLANATION OF PROPOSED NEW SECTIONS

Transportation Code, §224.153 and §224.154, authorize the Texas Transportation Commission (commission) to designate, and the department or a transportation corporation to design, construct, operate, or maintain, HOV lanes on the state highway system, and to charge a toll for the use of one or more lanes of a state highway facility, including an HOV lane, for the purpose of congestion mitigation. Tolled HOV lanes are commonly called high occupancy toll (HOT) lanes.

Transportation Code, Chapters 451 and 452, authorize metropolitan rapid transit authorities and regional transportation authorities to use a public way for the purpose of operating a transit or public transportation system. Transportation Code, §224.154, authorizes the commission to enter into an agreement with a regional tollway authority described in Transportation Code, Chapter 366, or a transit authority described in Transportation Code, Chapters 451, 452, or 453, to charge a toll for the use of one or more lanes of a congestion mitigation facility on the state highway system. The department currently contracts with metropolitan rapid transit authorities and regional transportation authorities, such as the Metropolitan Transit Authority of Harris County (METRO) and the Dallas Area Rapid Transit (DART), to operate HOV and HOT lanes on state highway right of way.

Pursuant to the foregoing authority, and in order to support the construction of infrastructure and traffic operation strategies designed to decrease traffic congestion, improve air quality, and enhance the use of existing highways, new §§25.40-25.43 prescribe requirements for the designation, funding, and operation of HOV and HOT lanes on the state highway system.

New §25.40 describes the purpose of new Subchapter C, Congestion Mitigation Facilities, including the implementation of Transportation Code, Chapter 224, Subchapter F.

New §25.41 provides definitions for words and terms used in new Subchapter C.

New §25.42 prescribes requirements for the designation and funding of HOV and HOT lanes on the state highway system. This section authorizes the department to expend funds to perform studies and analyses of project alternatives that include the development of HOV or HOT lanes, considering the criteria prescribed in this section. These criteria include whether the HOV or HOT lane will increase the number of persons moved on a roadway, improve transit operating efficiency, enhance the effectiveness of conforming transportation plans and programs and congestion management plans, and provide a more cost- effective alternative to capacity improvements in a corridor.

New §25.42 also requires the department, after completion of all necessary studies and project planning, to submit a proposal to the commission requesting the designation of one or more lanes on a state highway facility as dedicated HOV or HOT lanes, and requesting approval to design and construct an HOV or HOT lane project. New §25.42 finally prescribes criteria the commission will consider in determining whether to make a designation and approve a proposal.

New §25.43 prescribes requirements for the operation of HOV and HOT lanes on the state highway system. This section requires the executive director, in cooperation with an authority with which the department contracts under this section, to establish eligibility requirements for vehicles authorized to use HOV or HOT lanes, including eligible vehicle classes and occupancy requirements. Criteria to be considered by the executive director in establishing those requirements include the level of service on HOV or HOT lanes and on alternative routes, the consistency of those requirements with requirements established for connecting facilities, and the effect of the requirements on transit operating efficiency, roadway safety, and air quality.

New §25.43 requires the commission to establish charges (tolls) for the use of HOT lanes. In order to take advantage of available congestion mitigation techniques, including variable pricing, charges may be established and may vary based on severity of congestion, time of day, classification of vehicle, type and location of facility, and vehicle occupancy. In establishing those charges, the commission will consider the results of traffic and revenue studies and operational plans prepared by an authority with which the department contracts under this section, and the criteria considered by the executive director in establishing eligibility requirements.

In order to provide for the construction of adequate infrastructure designed to decrease traffic congestion, improve air quality, and enhance the use of existing highways, a governmental entity that contributes substantial funding for an HOT lane project may recommend a toll charge. A recommended toll charge will be approved by the commission if the charge is consistent with the criteria considered by the commission in establishing charges and complies with the requirements of any trust agreement, indenture, or other instrument securing debt financing for the project.

New §25.43 also requires the commission to establish an administrative fee charged to owners of vehicles that use HOT lanes without paying the proper toll. In establishing an administrative fee, the commission will consider the estimated cost to the department to collect unpaid tolls and the existing or estimated violation rate on HOT lanes on the state highway system.

New §25.43 finally authorizes the department to enter into an agreement with a regional tollway authority or a transit authority created under Transportation Code, Chapters 451, 452, or 453, to operate one or more HOV or HOT lanes. The agreement is required to contain terms necessary for the safe and efficient operation of the HOV or HOT lane, including an operations plan and responsibilities for maintenance, insurance and indemnification requirements, and provisions for the distribution of revenue between the department and the authority.

FISCAL NOTE

James Bass, Director, Finance Division, has determined that for each of the first five years the new sections are in effect, there will be fiscal implications for state and local governments as a result of enforcing or administering the new sections. The fiscal implications cannot be quantified with any certainty, because it will depend on the number of HOV and HOT lanes approved for development. The department does not anticipate any economic costs for persons required to comply with the new sections as proposed.

Carlos A. Lopez, P.E., Director, Traffic Operations 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 sections.

PUBLIC BENEFIT

Mr. Lopez 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 new sections will be to provide increased efficiency in the use of existing roadways and an increased number of people moved on the roadways. There will be no adverse economic effect on small businesses.

SUBMITTAL OF COMMENTS

Written comments on the proposed new sections may be submitted to Carlos A. Lopez, P.E., Director, Traffic Operations Division, 125 East 11th Street, Austin, Texas 78701-2483. The deadline for receipt of comments is 5:00 p.m. on July 15, 2002.

STATUTORY AUTHORITY

The new sections are proposed under Transportation Code, §201.101, which provides the commission with the authority to establish rules for the conduct of the work of the department, and more specifically, Transportation Code, §224.159, which requires the commission to adopt rules to administer Transportation Code, Chapter 224, Subchapter F.

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

§25.40.Purpose.

Transportation Code, §224.153 and §224.154, authorize the commission to designate, and the department or a transportation corporation to design, construct, operate, or maintain, high occupancy vehicle (HOV) lanes on the state highway system, and to charge a toll for the use of one or more lanes of a state highway facility, including an HOV lane, for the purpose of congestion mitigation. In order to support the construction of infrastructure and traffic operation strategies designed to decrease traffic congestion, improve air quality, and enhance the use of existing highways, this subchapter prescribes requirements for the designation, funding, and operation of HOV lanes and high occupancy toll (HOT) lanes on the state highway system.

§25.41.Definitions.

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

(1) Authority--A regional tollway authority created under Transportation Code, Chapter 366, a metropolitan rapid transit authority created under Transportation Code, Chapter 451, a regional transportation authority created under Transportation Code, Chapter 452, or a municipal transit department created under Transportation Code, Chapter 453.

(2) Commission--The Texas Transportation Commission.

(3) Department--The Texas Department of Transportation.

(4) Executive director--The executive director of the department, or a designee not below the level of district engineer, division director, or office director.

(5) High occupancy vehicle (HOV)--A bus or other motorized passenger vehicle occupied by a specified minimum number of passengers.

(6) High occupancy vehicle (HOV) lane--One or more lanes of a highway or an entire highway where designated high occupancy vehicles are given at all times, or at regularly scheduled times, a priority or preference over some or all other vehicles moving in the general stream of highway traffic.

(7) High occupancy toll (HOT) lane--An HOV lane that may be used by vehicles carrying fewer than the specified minimum number of passengers, or other eligible vehicles, that pay a toll for the right to do so.

(8) Transportation corporation--A corporation created by the commission under §§15.80-15.93 of this title (relating to Transportation Corporations).

§25.42.Development of HOV Lanes and HOT Lanes.

(a) Criteria. The department may expend funds to perform studies and analyses of project alternatives that include the development of an HOV or HOT lane on the state highway system. In performing studies and project planning, the department will consider whether a potential HOV or HOT lane will:

(1) maximize the effectiveness of existing roadways;

(2) increase the number of persons moved on a roadway;

(3) improve transit operating efficiency;

(4) limit any negative effect on general purpose lanes;

(5) provide connectivity to or enhance the effectiveness of existing HOV or HOT lanes;

(6) enhance the effectiveness of a conforming metropolitan transportation plan or transportation improvement program for a metropolitan planning area that includes a geographic area that is classified as nonattainment, near nonattainment, or maintenance for air quality;

(7) enhance the effectiveness of an approved congestion management plan for a geographic area that has been designated as a transportation management area; and

(8) provide a more cost-effective alternative to capacity improvements for a given corridor.

(b) Project development. After completion of all necessary studies and project planning, the department will submit a proposal to the commission requesting the designation of one or more lanes on a state highway facility as dedicated HOV or HOT lanes, and requesting approval to design and construct an HOV or HOT lane project. In determining whether to make a designation and grant approval, the commission will consider the criteria prescribed in subsection (a) of this section. As part of the designation and approval process, the commission will consider the studies and planning documents prepared by the department under subsection (a) of this section.

§25.43.Operation of HOV and HOT Lanes.

(a) Eligibility requirements. The executive director, in cooperation with an authority with which the department contracts under subsection (d) of this section, will establish eligibility requirements for vehicles authorized to use HOV or HOT lanes on the state highway system, including eligible vehicle classes and occupancy requirements. These requirements may be established based on the type and location of the transportation facility and on the time of day. In establishing these requirements, the executive director will consider:

(1) the level of service on the HOV or HOT lanes;

(2) the level of service on general purpose lanes that are part of the highway facility on which HOV or HOT lanes are located or are proposed to be located;

(3) the consistency of the requirements with eligibility requirements established for any connecting facilities;

(4) the availability of alternative routes and the level of service on those routes;

(5) the effect of the requirements on transit operating efficiency; and

(6) the effect of the requirements on roadway safety and air quality.

(b) Toll charges.

(1) The commission by minute order will establish charges for the use of HOT lanes. Variable toll charges may be established based on severity of congestion, time of day, classification of vehicle, type and location of facility, and vehicle occupancy. In establishing toll charges, the commission will consider the results of traffic and revenue studies and operational plans, prepared by an authority with which the department contracts under subsection (d) of this section, and the criteria prescribed in subsection (a) of this section.

(2) A governmental entity that contributes substantial funding for a HOT lane project may recommend a toll charge. The commission will approve the recommended toll charge if the commission determines that the charge:

(A) is consistent with the criteria described in paragraph (1) of this subsection; and

(B) complies with the requirements of any trust agreement, indenture, or other instrument securing debt financing for the project.

(c) Administrative fee. The commission by minute order will establish an administrative fee charged to owners of vehicles that use HOT lanes without paying the proper toll. In establishing an administrative fee, the commission will consider:

(1) the estimated cost to the department to collect unpaid tolls on HOT lanes on the state highway system; and

(2) the existing or estimated violation rate on HOT lanes on the state highway system.

(d) Operating agreements. The department may enter into an agreement with an authority to operate one or more HOV or HOT lanes. The agreement will contain terms necessary for the safe and efficient operation of the HOV or HOT lane, including, but not limited to:

(1) an operations plan that includes occupancy requirements, hours of operation, and provisions for law enforcement and incident management;

(2) responsibilities for maintenance of the facilities;

(3) insurance and audit requirements;

(4) indemnification of the department; and

(5) distribution of revenue between the department and the authority.

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 May 31, 2002.

TRD-200203364

Richard D. Monroe

General Counsel

Texas Department of Transportation

Earliest possible date of adoption: July 14, 2002

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