TITLE 43.TRANSPORTATION

Part 1. TEXAS DEPARTMENT OF TRANSPORTATION

Chapter 15. TRANSPORTATION PLANNING AND PROGRAMMING

Subchapter E. FEDERAL, STATE, AND LOCAL PARTICIPATION

43 TAC §15.52

The Texas Department of Transportation adopts amendments to §15.52, concerning agreements for federal, state, and local participation. The amended section is adopted without changes to the proposed text as published in the June 9, 2000, issue of the Texas Register (25 TexReg 5608) and will not be republished.

EXPLANATION OF ADOPTED AMENDMENTS

Transportation Code, §222.052 authorizes a local government to contribute funds to be spent by the Texas Transportation Commission in the development and construction of the public roads and the state highway system within the local government. Pursuant to this section, the department requires a local government to enter into a cost participation agreement with the department related to a highway improvement project.

Local governments have limited financial resources with which to meet their many financial obligations. Their cost participation in off system bridge program projects is often prohibitive which results in delaying necessary bridge improvements that are critical in nature. Local governments are also reluctant to commit their scarce resources to these projects due to the potential risk of cost escalation resulting in the local government owing the department more than the amount originally estimated.

To ensure the safety of the travelling public and to accelerate these needed bridge improvements, §15.52 is amended to change the required provisions of cost participation agreements that the department and local governments enter into when a local government is responsible for providing cost participation for a highway improvement project included in the off state highway system bridge program.

Due to the critical nature of these safety improvements and to help minimize the risk of cost escalation to the local government, amendments to §15.52(3) provide a new funding arrangement for off state highway system bridge projects. The local participation is based upon the department's estimate of the eligible work at the time of the agreement and would not be adjusted during construction except as needed to include any project cost item or portion of a cost item ineligible for state or federal participation. If it is found that the amount received is in excess of the local government's required funding share, the excess funds paid by the local government shall be returned. To maintain the intent of the federal bridge program, the local government is also responsible for any cost resulting from changes made at the request of the local government, either during preliminary engineering or construction.

To allow the local government time to budget for its cost participation, the amendments retain the provision for an initial payment for its portion of the estimated cost of preliminary engineering for the project upon execution of the agreement, and payment of the remainder due prior to the department's scheduled date for contract letting.

To allow for an efficient transition consistent with state law, the amendments apply to projects for which the construction contract has not been awarded. The department will not return any funds already received by the department under the terms of existing agreements.

COMMENTS

No comments were received on the proposed amendments.

STATUTORY AUTHORITY

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

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on July 31, 2000.

TRD-200005266

Richard Monroe

General Counsel

Texas Department of Transportation

Effective date: August 20, 2000

Proposal publication date: June 9, 2000

For further information, please call: (512) 463-8360


43 TAC §15.55

The Texas Department of Transportation adopts amendments to §15.55, concerning construction cost participation, with changes to the proposed text as published in the June 9, 2000, issue of the Texas Register (25 TexReg 5611).

EXPLANATION OF ADOPTED AMENDMENTS

Transportation Code, §222.053(b), authorizes the Texas Transportation Commission to require, request, or accept from a political subdivision matching or other local funds to make the most efficient use of its highway funding. Pursuant to this authority, the commission has previously adopted §§15.50-15.56, to specify the roles of federal, state, and local entities in the development of highway improvement projects.

Current §15.55 requires a local government to fund 10% of an off-state highway system bridge project. The amendments add a new subsection (d) to §15.55. Subsection (d) authorizes the department to waive the local government's required 10% fund participation in an off state system bridge program project if the local government agrees to perform an equivalent dollar-amount of structural improvement work on another deficient bridge(s) or other mainlane cross-drainage structure(s) within the local government's jurisdiction.

Subsection (d)(1) defines the words and terms used in the new subsection. While a bridge on a participation-waived project typically must be a roadway-bearing structure of at least 20-foot length, a "bridge" on an equivalent-match project(s), as defined in this subsection, includes mainlane cross-drainage structures regardless of length along the roadway. This expansion of definition is needed to provide more assistance to the local governments, and additional flexibility in addressing their roadway structural needs. The term "deficient bridge" is defined as a bridge identified by the department as having a condition or load capacity that is inadequate. The definition is necessary in order to ensure that the equivalent-match program targets structurally inadequate bridges with a resulting increase in bridge safety for the traveling public. The definition of "participation-waived project" is limited to projects that are on the department's Unified Transportation Program and that satisfy minimum standards established by the department. These stipulations are required to remain consistent with the basic purpose of the bridge program, i.e., the remedy of deficient bridges.

Subsection (d)(2) authorizes the department's district engineer to approve a waiver. In order to receive consideration for a waiver, the local governmental body is required to commit by written resolution to spend an equivalent dollar-amount of funds for structural improvement work on another bridge(s) within its jurisdiction. An equivalent amount includes, but is not limited to, expenditures for direct or indirect costs for structural improvement work on bridge(s) in the equivalent-match project(s).

Subsection (d)(3) describes the eligibility requirements for a waiver. First, to assure that the integrity of the state's fund accounting and construction project letting systems is maintained, the construction contract for the participation-waived project may not have been awarded. Second, to ensure that the work is within the intent and the monetary limitations of the rules, work on the equivalent-match project may not have begun prior to approval of the waiver. Third, the local government must be in compliance with load posting and closure regulations as defined in the National Bridge Inspection Standards under 23 C.F.R. §650.303. This compliance is necessary to further support the basic purpose of the bridge program, which is to remedy deficient bridges and enhance bridge safety through bridge replacement and rehabilitation. Fourth, the bridge on the proposed equivalent-match project(s) must be classified as deficient, or a bridge that is weight restricted for school buses and is located on a school bus route. This requirement is necessary to properly discharge the basic purpose of the bridge program and to ensure that a maximum number of bridges are made safe for school bus loading. Finally, the structural improvement work on the equivalent-match project must increase the load capacity of the existing bridge or upgrade the bridge to its original capacity, with a minimum upgrade to safely carry school bus loading if located on a school bus route. This requirement is needed to ensure substantive improvement in the load carrying capacity of the deficient bridge.

Subsection (d)(4) describes the procedures a local government must follow to request a waiver. The local government is required to provide a written request to the department district engineer that includes the location(s), description of structural improvement work proposed, estimated cost for the equivalent-match project(s), and a copy of the resolution of the local governmental body. These requirements are needed to properly determine if the waiver complies with all the requirements of this subsection. The resolution from the local government must acknowledge assumption of all responsibilities for engineering and construction and complying with all applicable state and federal environmental regulation and permitting requirements for the bridge(s) on the equivalent-match project(s). Acknowledgement of these responsibilities is necessary since the bridges on the equivalent-match projects are not a part of the state highway system. Also, structural improvement work is being accomplished outside the department's purview. Therefore, in the interest of public safety and legal compliance, the department desires to inform the local government of its responsibilities.

Subsection (d)(5) specifies the criteria that will be considered by the district engineer when deciding whether to approve a waiver. The department is responsible for the administration of the off system bridge program, and desires to enhance the safety of the traveling public and ensure stewardship of public funds. The criteria described in this paragraph will ensure that a project is not undertaken by a local government without assurance that the public will be best served by the proposal. The district engineer will consider the type of work proposed for the equivalent-match project(s). Consideration of the type of work is needed to ensure that, to the greatest extent possible, the most deficient and unsafe off system bridges are being addressed. "Regional transportation needs" are required to be addressed to ensure that optimum movement and volume of traffic service are considered. The past performance of the local government in the participation-waived program must be considered in order to ensure overall efficiency and equitable administration of this program.

Subsection (d)(6) describes the procedures to be used by the district engineer when notifying a local government of the approval or disapproval of a waiver. After review of the request for waiver by the district engineer, a letter will be submitted to the requesting local government indicating approval or disapproval. If disapproved, the letter will state the reasons for disapproval. If the waiver is approved, the letter will state that the local government, for the equivalent-match project(s), will assume: all costs of the work; responsibility for complying with all applicable state and federal environmental regulations and permitting requirements; and responsibility for the engineering and construction necessary for completion of the work.

Subsection (d)(7) describes additional provisions and conditions related to the administration of this subsection. The local government will be allowed three years after the contract award of the participation-waived project to complete structural improvements on the equivalent-match project(s). The department believes this requirement will allow the local government time to marshal forces, accumulate materials, and otherwise carry out the agreed-to work. Within the specified three-year period for accomplishing the equivalent-match project(s), and no later than 30 days after completion of the equivalent-match project(s), documentation of completion of the equivalent-match project(s) requirement will be provided by letter to the district engineer. This notification is necessary in order for the department to verify compliance. If the local government fails to adequately complete the equivalent-match project(s), the local government will be excluded from future waivers under this subsection for a minimum of five years. This requirement is necessary to ensure program efficiency and equitable administration for all participating local governments.

The local government is responsible for all of the direct cost of any participation-waived project cost item or portion of a cost item that is not eligible for federal participation under the Federal Highway Bridge Replacement and Rehabilitation Program (HBRRP) under 23 U.S.C. §144 and 23 C.F.R. §650 Subpart D. The local government is also responsible for any costs resulting from changes made at the request of the local government. Since participation-waived projects are HBRRP projects, all work involved is required to meet specified eligibility requirements.

A local government located in an economically disadvantaged county that receives an adjustment under subsection (b) of this section may participate in the provisions of subsection (d) in the amount of its reduced matching funds requirement. This requirement is needed for equitable administration of the equivalent-match program to all local governments. To ensure compliance with state law, the department will not reimburse funds already received by the department under the terms of existing agreements.

COMMENTS

No comments were received on the proposed amendments; however, to clarify the intent of subsection (d)(3)(D) the department is adopting with a non-substantive change.

Subsection (d)(3)(D) is revised by deleting the phrase "on a school bus route that is weight restricted for school buses;" and replacing it with the phrase "that is weight restricted for school buses and is located on a school bus route;". This change in wording is made to clarify intent.

STATUTORY AUTHORITY

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

§15.55.Construction Cost Participation.

(a)

Required cost participation. The commission may require, request, or accept from a local government matching or other funds, rights-of-way, utility adjustments, additional participation, planning, documents, or any other local incentives.

(b)

Economically Disadvantaged Counties. In evaluating a proposal for a highway improvement project in a local government that consists of all or a portion of an economically disadvantaged county, the commission shall, for those projects in which the commission is authorized by law to provide state cost participation, adjust the minimum local matching funds requirement after evaluating a local government's effort and ability to meet the requirement.

(1)

Request for adjustment. The city council, county commissioners court, district board, or similar governing body of a local government that consists of all or a portion of an economically disadvantaged county shall submit a request for adjustment to the local district office of the department. The request will include, at a minimum:

(A)

the proposed project scope;

(B)

the estimated total project cost;

(C)

a breakdown of the anticipated total cost by category (e.g., right-of-way, utility adjustment, plan preparation, construction);

(D)

the proposed participation rate;

(E)

the nature of any in-kind resources to be provided by the local government;

(F)

the rationale for adjusting the minimum local matching funds requirement; and

(G)

any other information considered necessary to support a request.

(2)

Evaluation. In evaluating a request for an adjustment to the local matching funds requirement, and a local government's effort and ability to meet the requirement, the commission will consider a local government's:

(A)

population level;

(B)

bonded indebtedness;

(C)

tax base;

(D)

tax rate;

(E)

extent of in-kind resources available; and

(F)

economic development sales tax.

(c)

Participation ratios. The following Appendix A to this section establishes federal, state, and local cost participation ratios for highway improvement projects, subject to the availability of funds to the department.

Figure: 43 TAC §15.55(c) (No change.)

(d)

Off state highway system bridge program.

(1)

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

(A)

Bridge--For an equivalent-match project, a bridge or other mainlane cross-drainage structure.

(B)

Deficient bridge--A bridge having a condition or load capacity that is inadequate.

(C)

District engineer--The chief executive officer in each designated district office of the department.

(D)

Equivalent-match project--A project in which the local government will structurally improve off state system bridges utilizing 100% local funds.

(E)

Participation-waived project--An off-state system bridge project in which the state agrees to pay for local participation for eligible preliminary engineering, construction, and construction engineering costs as shown in subsection (c) of this section. This project must be on the department's approved Unified Transportation Program, satisfy minimum standards established by the department for off state system bridges, and meet the additional requirements of this subsection.

(2)

Waiver. The district engineer may waive the requirement for a local government to provide the original 10% estimate of direct costs for preliminary engineering, construction engineering, and construction funds on the participation-waived project(s) if the local governmental body commits by written resolution, as described in paragraph (4) of this subsection, to spend an equivalent amount of funds for structural improvement work on another bridge or bridges on the equivalent-match project(s) within its jurisdiction. An equivalent amount includes, but is not limited to, expenditures for direct or indirect costs for structural improvement work on bridge(s) in the equivalent-match project(s).

(3)

Eligibility. A local government is eligible for a waiver if:

(A)

the construction contract for the participation-waived project has not been awarded;

(B)

work on the equivalent-match project has not begun prior to approval of the waiver;

(C)

the local government is in compliance with load posting and closure regulations as defined in the National Bridge Inspection Standards under 23 C.F.R. §650.303;

(D)

the bridge on the proposed equivalent-match project(s) is a deficient bridge, or a bridge that is weight restricted for school buses and is located on a school bus route; and

(E)

the equivalent-match project increases the load capacity of the existing bridge or upgrades the bridge to its original capacity, with a minimum upgrade to safely carry school bus loading if located on a school bus route.

(4)

Request for waiver. To request a waiver, a local government must provide a written request to the district engineer that includes the location(s), description of structural improvement work proposed, estimated cost for the equivalent-match project(s), and a copy of the local governmental body's resolution. The resolution must acknowledge assumption of all responsibilities for engineering and construction and complying with all applicable state and federal environmental regulations and permitting requirements for the bridge(s) on the equivalent-match project(s).

(5)

Considerations. In approving a request for waiver, the district engineer will consider:

(A)

the type of work proposed for the equivalent-match project(s);

(B)

regional transportation needs; and

(C)

past performance under this subsection.

(6)

Approval. The district engineer will submit a letter to the local government indicating the district engineer's approval or disapproval of the waiver. If disapproved, the letter will state the reasons for disapproval. If the waiver is approved, the letter will state that the local government, for the equivalent-match project(s) will assume:

(A)

all costs of the work;

(B)

responsibility for complying with all applicable state and federal environmental regulations and permitting requirements; and

(C)

responsibility for the engineering and construction necessary for completion of the work.

(7)

Agreement and conditions.

(A)

If the district engineer approves the waiver, the local government and the department will enter into an agreement for the participation-waived project as specified in §15.52 of this subchapter.

(B)

Local governments will be allowed three years after the contract award of the participation-waived project to complete structural improvements on the equivalent-match project(s). No later than 30 days after completion, documentation of completion of the equivalent-match project(s) requirement will be provided by letter to the district engineer. If the local government fails to adequately complete the equivalent-match project(s), it will be excluded from future waivers under this subsection for a minimum of five years.

(C)

The local government is responsible for all of the direct cost of any participation-waived project cost item or portion of a cost item that is not eligible for federal participation under the Federal Highway Bridge Replacement and Rehabilitation Program under 23 U.S.C. §144 and 23 C.F.R. §650 Subpart D. The local government is also responsible for any costs resulting from changes made at the request of the local government.

(D)

The local government will be responsible for 100% of right of way and utilities for the participation-waived project.

(E)

A local government located in an economically disadvantaged county that receives an adjustment under subsection (b) of this section may participate in the provisions of this subsection in the amount of its reduced matching funds requirement.

(F)

The department will not reimburse funds already received by the department under the terms of existing agreements.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on July 31, 2000.

TRD-200005267

Richard Monroe

General Counsel

Texas Department of Transportation

Effective date: August 20, 2000

Proposal publication date: June 9, 2000

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 adopts new §17.29, concerning vehicle registration renewal via the internet. The new section is adopted without changes to the proposed text as published in the June 9, 2000, issue of the Texas Register (25 TexReg 5614) and will not be republished.

EXPLANATION OF ADOPTED NEW SECTION

In accordance with the state's E-Government initiative, the department is developing a process for registered vehicle owners to renew their vehicle registrations via the internet. This process will be accomplished through communication and interaction between participating counties, a third-party vendor selected by the department to facilitate the program, and the customer. New §17.29 is added to provide the basic framework within which the new program will operate.

Subsection (a) establishes that the department will develop and maintain an internet registration renewal system. A third-party vendor will assist in this effort. This provision ensures uniformity and discourages each county from setting up its own system.

Subsection (b) is added to establish eligibility requirements for counties to participate in the program.

Subsection (b)(1) provides that the department may begin with a pilot program to ensure that the system is fully functional before it is implemented throughout the state. The pilot project will involve up to fifteen counties, which will be chosen based on whether a county is currently active in processing internet registration renewals, whether a county is adjacent to an active internet county, and whether a county is willing and able implement the system. The goal is to ensure enough usage for a representative test, while also achieving a customer base with common work areas and media outlets.

Subsection (b)(2) addresses the later implementation of the system on a statewide basis. New counties will be added at their request and upon approval by the department. It is recognized that the system may not be implemented statewide at one time, but that a phased introduction may be necessitated by practical constraints. Moreover, participating counties may need to meet technical requirements, including hardware and an internet service provider.

Subsection (c) is added to establish the eligibility requirements that vehicle owners and their vehicles must meet to be able to renew vehicle registration via the internet. Specifically, the vehicle owner must be a resident of a county that is participating in the internet registration program, the vehicle must have current registration and be within 90 days prior to expiration (not including the 5-working-day grace period), and the vehicle record must meet all other requirements for registration renewal. These requirements will ensure that the vehicle owner is eligible for registration renewal and permit more efficient administration of the system.

Subsection (d) is added to establish the fees that must be paid by the registrant when renewing vehicle registration via the internet. The fee for mailing new registration insignia to the customer will be the same as if the registration were renewed by regular mail because the administrative burden on the counties is essentially the same. The fees for processing a registration renewal electronically and for processing a credit card payment are designed to cover the costs to the department of operating the internet registration renewal system. Remaining registration fees and local fees will be the same as with any other registration renewal. It is anticipated the $2.00 additional fee will almost recover costs of the system.

Subsection (e) is added to establish the information that a registrant must provide or verify to renew vehicle registration via the internet. In addition to information ordinarily provided in the course of vehicle registration renewal, more information is necessary to verify the registrant's identity and the identity of the vehicle, to ensure compliance with insurance requirements, and to permit electronic payment of registration fees.

Subsection (f) is added to establish the duties of participating counties in the processing of vehicle registration renewals via the internet. As in the case of all registration renewals, counties must ensure that all legal requirements have been met and must reject applications that fail to meet those requirements. These include items that are incorporated in the new section, such as insurance and address information, as well as items contained elsewhere in the rules and relevant statutes, such as emissions compliance and notations on the department's records for stolen vehicles, scofflaws, traffic warrants, and legal restraints. Internet registration renewal is intended to provide a system that will be more convenient for both customers and counties, not to permit the renewal of registrations that would not be renewed under the current system.

Subsection (f) also places some additional duties on the counties. Counties must be willing and able to accept electronic payments for the system to work, and they must promptly mail registration and validation stickers to customers. Counties must also be able to: process qualified renewals that are received from the third-party vendor; meet technical requirements for participation in the system, including hardware and an internet service provider and communicate with the third-party vendor and with customers in the manner specified by the department, which may involve the sending and receipt of email. Adherence to these standards will enable the system to function efficiently and ensure against inconsistency in the system's operation throughout the state.

COMMENTS

No comments were received on the proposed new section.

STATUTORY AUTHORITY

The new section is adopted under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation; under Transportation Code, §502.009, which directs the department to adopt rules to administer Chapter 502, relating to the registration of vehicles; under Transportation Code, §502.101, which authorizes the department to adopt rules governing the timely application for and issuance of registration receipts and insignia by mail or through an electronic off-premises location; and under Transportation Code, §502.180(e), which grants the department authority to adopt rules governing the issuance of registration insignia.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on July 31, 2000.

TRD-200005268

Richard Monroe

General Counsel

Texas Department of Transportation

Effective date: August 20, 2000

Proposal publication date: June 9, 2000

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