TITLE 43.TRANSPORTATION

Part 1. TEXAS DEPARTMENT OF TRANSPORTATION

Chapter 4. EMPLOYMENT PRACTICES

Subchapter E. SICK LEAVE POOL PROGRAM

43 TAC §4.51, §4.56

The Texas Department of Transportation (department) proposes amendments to §4.51 and §4.56, concerning definitions and withdrawals under the department's Sick Leave Pool Program.

EXPLANATION OF PROPOSED AMENDMENTS

Government Code, Chapter 661, directs the department's executive director to develop and implement a sick leave pool program. The proposed amendments make clerical changes, update existing language, and revise existing definitions. These changes improve the readability of the department's sick leave pool program rules, increase the responsiveness of the program, make program rules more compatible with existing department policies, and more specifically tailor the program to ensure that leave is available to those dealing with a catastrophic illness or injury.

Section 4.51(4) is amended to expand the definition of "discipline" to include the full range of disciplinary actions available under the department's Human Resources Manual. Section 4.51(8) is amended to update the name of the Texas Department of Family and Protective Services. Section 4.51(12) is amended to revise the definition of "severe physical condition" to change from 10 to 12 the number of continuous weeks an employee will likely be off work.

These definitional changes allow the department to clarify the department's compliance with Government Code, §661.001, coordinate sick leave pool policy with existing human resources policies, and more precisely target those illnesses or injuries for which employees may apply for sick leave pool hours.

Section 4.56(a)(1) is amended to provide that employees may only seek to withdraw time from the sick leave pool when they or their family members have a catastrophic illness or injury and that illness or injury is the reason why the employee must be away from work. Existing versions of this rule imply the requirement that the leave request be connected to the illness or injury and this revision clarifies the department's compliance with Government Code, §661.005.

Section 4.56(a)(2)(A) is amended to add the requirement that the medical certification describing a catastrophic illness or injury of an employee's family member must include the type of assistance the employee will need to provide the ill family member. This change allows the department to better administer the program by matching an employee's need for sick leave pool time with the circumstances of the family member's illness or injury. This change is consistent with the requirement in Government Code, §661.004, that sick leave pool time be granted to employees "because of" a catastrophic illness or injury.

Section 4.56(a)(15) is amended to remove language regarding the circumstances in which a recertification of a medical condition may be necessary. The amendment allows the pool administrator to request a recertification on a monthly basis, if necessary. This amendment is authorized by Government Code, §661.002.

FISCAL NOTE

James Bass, Director, Finance Division, has determined that for each of the first five years the amendments as proposed 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 amendments as proposed.

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

PUBLIC BENEFIT

Ms. Isabel 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 improved administration of the program. There will be no adverse economic effect on small businesses.

SUBMITTAL OF COMMENTS

Written comments on the proposed amendments may be submitted to Diana L. Isabel, Director, Human Resources Division, 125 East 11th Street, Austin, Texas 78701-2483. The deadline for receipt of comments is 5:00 p.m. on August 9, 2004.

STATUTORY AUTHORITY: The amendments are proposed under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the department, and more specifically, Government Code, §661.002(c) which provides that the governing body of a state agency shall adopt rules and prescribe procedures relating to the operation of the agency sick leave pool.

CROSS REFERENCE TO STATUTE: Government Code, Chapter 661, Subchapter A.

§4.51.Definitions.

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

(1) - (3) (No change.)

(4) Discipline--Written reprimand, probation, [ suspension with pay, ] suspension without pay, involuntary demotion, [ or ] involuntary transfer (lateral), or disciplinary reduction in pay .

(5) - (7) (No change.)

(8) Immediate family--Individuals related by kinship, adoption, or marriage who are living in the same household, foster children living in the same household and certified by the Texas Department of Family and Protective [ and Regulatory ] Services, or a spouse, child, or parent of the employee who does not live in the same household and who needs care and assistance as a direct result of a documented medical condition.

(9) - (11) (No change.)

(12) Severe physical condition--A physical illness or injury that will likely result in death or causes the employee to be off work for 12 [ 10 ] continuous weeks or more for the current episode.

(13) (No change.)

(14) Sick leave--Leave taken when sickness, injury, or pregnancy and confinement prevent the employee's performance of duty or when the employee is needed to care and assist a member of his or her immediate family who is actually ill.

(15) - (16) (No change.)

§4.56.Withdrawals.

(a) Restrictions.

(1) An employee or an employee's immediate family must have a catastrophic illness or injury to be eligible to withdraw from the pool. The patient's health care provider must certify in writing that the illness or injury of the employee or member of the employee's immediate family is catastrophic and that the catastrophic illness is the reason the employee needs to be out of work .

(2) A written certification from a health care provider must be submitted with all requests for withdrawals. Requests related to severe psychological conditions must be certified by a licensed psychiatrist. The certification:

(A) shall include:

(i) (No change.)

(ii) the date the employee or employee's immediate family member will be able to return to [ normal ] activities of daily living ; [ and ]

(iii) the amount of time the employee will be needed to provide primary care if the certification is for the employee's immediate family member; and

(iv) if the certification is for the employee's immediate family member, the specific type of care the employee needs to provide;

(B) - (C) (No change.)

(3) - (7) (No change.)

(8) The time transferred will begin on the date and time the employee exhausted all sick leave or, in cases that [ which ] are eligible for workers' compensation payments, after the period covered by the last workers' compensation check distributed.

(9) - (12) (No change.)

(13) An employee who is injured on the job, who is entitled to receive workers' [ worker ] compensation payments, and who chooses to integrate his or her sick leave, and vacation leave, or compensatory time is also eligible to receive a withdrawal in accordance with this subchapter.

(14) (No change.)

(15) The pool administrator may require the patient's condition to be recertified by a health care provider on a monthly basis [ when the necessary information to make a definite determination of the employee's need for pool hours is changed, uncertain, or not available ]. If the employee is determined to be able to return to work sooner than indicated on a previous certification, the pool administrator may require the unused portion of a withdrawal to be returned to the pool. If the employee fails to cooperate with recertification requirements and reevaluation procedures, the pool administrator may deny the request or require the unused portion of a withdrawal be returned to the sick leave pool.

(16) - (17) (No change.)

(b) Procedures.

(1) - (3) (No change.)

(4) If the pool administrator questions the validity of the certification completed by the employee's health care provider, based on the average expected duration or severity of the condition, the administrator may request a health care provider, contracted by the department, to review the patient's medical records. The contracted health care provider may consult with the patient's health care provider if more information is needed. If the determination of the contracted health care provider differs from the patient's health care provider, the request may be denied. If necessary, the pool administrator may request that the patient's medical records be reviewed by a third health care provider who is not under contract with the department. The pool administrator and the employee must agree on the third health care provider. The determination of the third health care provider is binding. The department will pay for both reviews. If the employee fails to cooperate with the medical records review, the pool administrator may deny the request.

(5) - (9) (No change.)

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 June 25, 2004.

TRD-200404228

Richard D. Monroe

General Counsel

Texas Department of Transportation

Earliest possible date of adoption: August 8, 2004

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


Chapter 21. RIGHT OF WAY

Subchapter A. LAND ACQUISITION PROCEDURES

43 TAC §21.16

The Texas Department of Transportation (department) proposes new §21.16, concerning the use of options to purchase for advance acquisition of real property.

EXPLANATION OF PROPOSED NEW SECTION

Transportation Code, Chapter 202, Subchapter F, and Chapter 227, Subchapter D, authorize the Texas Transportation Commission (commission) to purchase options to acquire property for possible use in or in connection with any transportation facility, including but not limited to the Trans-Texas Corridor. The option may be purchased before a final decision has been made as to whether the transportation facility will be located on that property. The statutes were adopted by the 78th Legislature and became effective on September 1, 2003. The commission is proposing the adoption of §21.16 to establish a procedure for the implementation and administration of the legislation.

Section 21.16 outlines the requirements for executing option contracts. Specifically, §21.16(a) provides for a two-step process. In the first step, the commission must authorize the expenditure of option fees and execution of option contracts for a specific transportation facility project or corridor. This satisfies the statutory requirement of commission approval. Rather than require review and approval of each individual contract, the commission can authorize broad use of options for identifiable projects. The second step requires the district engineer to analyze the particular property and terms of a proposed contract in relation to needs and conditions of the specific transportation facility. The district engineer must find that the property may possibly be used in connection with the previously authorized transportation facility. This satisfies a statutory requirement. In addition, the district engineer must determine that the size and location of the property is reasonably related to the facility's possible design and alignment, and that the terms of the contract may be economically beneficial to the department by fulfilling at least one of the four listed benefits. These additional requirements seek to provide justification for the terms of each option contract by the person in a district who has the most complete overview and control of the project.

Because option contracts will typically contain a clause restricting development, §21.16(b) limits the primary period for an option contract to a maximum of 7 years in order to satisfy the statutory limitation on the acquisition of development rights set out in Transportation Code, §203.051(a)(2)(B). To provide flexibility for longer term arrangements, however, this subsection permits negotiation of one or more extensions which will require additional payment to the property owner.

Section 21.16(c) grants to the department the flexibility to negotiate the payment of a one-time option fee to be paid to the property owner at the time the contract is executed, or the payment of periodic amounts during the term of the contract, or a combination of both. Depending on the length of the option period, it may be more cost efficient for the department to set up annual payments so the department only pays for the number of years it actually has a need to tie up the property.

FISCAL NOTE

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

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

PUBLIC BENEFIT

Mr. Campbell has also determined that for each of the first five years the new section is in effect, the public benefit anticipated as a result of enforcing or administering the new section will be to further the department's mission to provide an efficient, timely, cost effective and fair process of acquiring real property needed for development of transportation facilities. There will be no adverse economic effect on small businesses.

SUBMITTAL OF COMMENTS

Written comments on the proposed new section may be submitted to John P. Campbell, P.E., Director, Right of Way Division, 125 East 11th Street, Austin, Texas 78701-2483. The deadline for receipt of comments is 5:00 p.m. on August 9, 2004.

STATUTORY AUTHORITY: The new section 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, and more specifically, §227.002, which provides the commission with the authority to adopt rules as necessary or convenient to implement and administer Chapter 227 governing the Trans-Texas Corridor.

CROSS REFERENCE TO STATUTE: Transportation Code, Chapter 227.

§21.16.Use of Options to Purchase for Advance Acquisition of Real Property.

(a) The department may execute an option contract for the acquisition of right of way and control of development rights if the Texas Transportation Commission has authorized the expenditure of option fees for a transportation facility project or corridor and the district engineer determines that:

(1) the property to be optioned is or may possibly be used in or in connection with the transportation facility;

(2) the size and location of the property to be optioned is reasonably related to the possible future design and alignment of the transportation facility; and

(3) the terms of the option contract may be economically beneficial to the department by:

(A) establishing the purchase price at current market value as of the date of the option contract;

(B) establishing a methodology for determining a purchase price at the time the option is exercised to avoid the necessity for condemnation;

(C) restricting development or improvements that would substantially increase the purchase price; or

(D) reducing the time required for the acquisition of the property.

(b) An option contract shall be for a primary period of not more than 7 years, but may be subject to one or more extensions beyond the primary term.

(c) An option fee to be paid to the property owner may be:

(1) a one-time fee paid at the time the option contract is executed;

(2) in the form of periodic payments; or

(3) a combination of paragraphs (1) and (2) of this subsection.

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 June 25, 2004.

TRD-200404229

Richard D. Monroe

General Counsel

Texas Department of Transportation

Earliest possible date of adoption: August 8, 2004

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


Chapter 25. TRAFFIC OPERATIONS

Subchapter G. SPECIFIC INFORMATION LOGO SIGN PROGRAM

The Texas Department of Transportation (department) proposes amendments to §§25.400 - 25.402 and §§25.404 - 25.406, the repeal of §25.403, and simultaneously proposes new §25.403, concerning the Specific Information Logo Sign Program.

EXPLANATION OF PROPOSED AMENDMENTS, REPEAL, AND NEW SECTION

House Bill 2905 and House Bill 3330, 78th Legislature, Regular Session, 2003, require certain contracting provisions relating to the required percentage of program fees returned to the department and best value contracting for the department's logo sign program. House Bill 3330 requires remittance to the department of at least 10% of the fees collected by the contractor. House Bill 2905 provides for the scoring of proposals based, in part, on the percentage of returned fees offered. House Bill 1831, authorizes dual logos to be added to the information sign program.

The amendments to §25.400 update the statutory cite to Transportation Code, §391.091, and replace the phrase "undesignated head" with "subchapter." The definition of specific information logo sign is updated to use the term "sign" instead of "sign panel."

The definition of "dual logo" is added to §25.401 pursuant to House Bill 1831. A dual logo is a panel on a specific information logo sign containing the names of either two food establishments in a shared space under common ownership, or a gas and food establishment in a shared space under common ownership.

The amendments to relettered §25.402(l) and (o) update the statutory citations to Transportation Code, Chapter 391, and Government Code, Chapter 2253.

The amendments to subsection (e) remove the existing requirement regarding sign erection in the first year of the program. Since the program has been in existence since 1992, this requirement is no longer needed. The new text in this subsection requires the logo contractor to contact existing participating businesses within the first three months of a contract with the department. This will ensure that the contractor is working with participating businesses, the businesses know who to contact in case any issues arise related to the program, and that any rental renewal issues are handled in a timely manner.

New subsection (h) is added to require the program contractor to provide an electronic inventory to the department of participating businesses and sign locations. This provision is added to ensure that the department has a full and accurate inventory regarding the sign program operating on the state highway system.

Existing subsections (h) - (r) are relettered to reflect the addition of new subsection (h). The subsections are also updated for improved readability and clarity.

Amendments to relettered subsection (n) remove the mandatory set percentage that the contractor must remit to the department for installation, annual rental, covering and replacement sign fees. Under House Bill 2905 and House Bill 3330, the department may accept a best value bid that is higher than the current 5.0% fee. The mandatory set amounts for business logo/major shopping area guide sign installation, annual rental, covering, and replacement fees have been removed so the state may accept the contract with the best value.

Amendments to relettered subsection (r) clarify that the contractor will only be paid for the depreciated value of the information logo signs if the department terminates the contract before the contract's termination date for reasons other than default of the contractor.

The evaluation provisions of repealed §25.403 are moved to §25.404. The remainder of repealed §25.403 is reenacted in new §25.403, Notice and Proposal Submission, provides that the department will publish a notice of intent to award an information logo sign program contract along with proposal requirements. The new section describes proposal submittal requirements including delivery, page limits, team qualifications, the contractor's capability, the contractor's internal policies and procedures related to work quality, cost control, resources, a demonstration of the contractor's understanding of the project, the contractor's approach, a description of internal methods for schedule control, the locations for the work, an audited financial statement, supporting documentation, and the best value for the state. Pursuant to House Bill 2905, the best value for the state consists of the proposed percentage returned to the department from fees collected from program participants for installation, annual rental, covering, and replacement. The best value also includes the proposed amount for the fees that will be charged to a participant in the program. A business that has a dual logo will pay a fee that is 175% of the standard fee for a single logo. This will help ensure that businesses that seek a dual logo receive a price reduction from the standard costs associated with the rental of two separate logos. The department also seeks to set the rental fee for a dual logo at a rate that is similar to that of a single logo so as not to unduly encourage the use of dual logos. Dual logos are not as visible to motorists as a traditional single logo panel.

In accordance with House Bill 3330, the minimum percentage that a contractor may propose for return to the department is 10%.

The amendments to §25.404 relate to the evaluation of the proposals. There is no longer a prequalification requirement. The department will not consider a proposal that fails to comply with the notice, specifies an installation fee that is less than 5.0% or greater than 25% of the business logo annual rental fee, specifies that the ramp business logo annual rental fee is less than 5.0% or greater than 15% of the business logo annual rental fee, specifies a major shopping area guide sign annual rental fee that is less than two times or greater than six times the business logo annual rental fee, or specifies that the major shopping area ramp sign annual rental fee is less than one-half or greater than 150% of the business logo annual rental fee.

These minimum ranges are to ensure that the fee for a logo sign rental is set at a minimum price that will encourage long-term businesses to participate in the program and discourage constant turnover within the program. The upper end of the range is established to ensure that the program contractor recoups its initial investment to install the sign over a period of several years thus encouraging the contractor to maintain the signs at an appropriate level.

The amendment also states that the department will not consider a proposal that fails to guarantee a return to the department of at least 10% of the rental fees collected from program participants in accordance with House Bill 3330.

The department will determine the best value to the state by evaluating the contractor's proposed team and time commitment, capability for undertaking and performing the work, quality of services offered, financial resources, ability to perform the work, understanding of the project, approach, ability to meet the schedule, ability to fulfill any other criteria listed in the notice, proposed percentage returned to the department from fees collected from program participants, and proposed amount for the rental and installation fees that will be charged to participate in the program in accordance with House Bill 2905.

The proposals will be evaluated by a panel of department employees appointed by the director of the Traffic Operations Division. The Texas Transportation Commission (commission) may accept or reject the recommended award.

The amendments to §25.405 allow dual logos. A business requesting a dual logo will pay a fee that is 175% of the standard fee for a single logo. No more than two dual logos may be installed per logo sign, and if demand for space on a logo sign exceeds the available number of spaces, businesses requesting a dual logo must follow the same random drawing process that is used for panels that are not dual logos.

The amendments to §25.405 do not permit a variance to be requested for a waiver of restrictions regarding dual logos. It is important to adhere to the requirements for dual logos to avoid detracting from overall sign visibility.

FISCAL NOTE

James Bass, Director, Finance Division, has determined that for each of the first five years the amendments, repeal, and new section, as proposed, are in effect, there will be positive fiscal implications for the state as a result of enforcing or administering the amendments, repeal, and new section, because the percentage of program fees returned to the department from the program contractor will increase. Although the total positive impact cannot be determined until the percentage of program fees that are returned to the department is set during the next program contract, the department estimates the increase will be approximately $164,000 in additional annual funding for the department. There will be no impact on local governments. There are no anticipated economic costs for persons required to comply with the proposal.

Carlos 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 amendments, repeal, and new section.

PUBLIC BENEFIT

Mr. Lopez has also determined that for each of the first five years the amendments, repeal, and new section are in effect, the public benefit anticipated as a result of enforcing or administering the amendments, repeal, and new section will be a more efficient operation of the Specific Information Logo Sign Program. The percentage of program fees returned will increase for the state as certain business establishments may obtain dual logos and the state is provided greater flexibility in the contracting process. There will be no adverse economic effect on small businesses.

SUBMITTAL OF COMMENTS

Written comments on the proposed amendments, repeal, and new section may be submitted to Carlos 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 August 9, 2004.

43 TAC §§25.400 - 25.402, 25.404 - 25.406

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, §391.092, which provides the commission with the authority to establish rules regarding the Specific Information Logo Sign Program.

CROSS REFERENCE TO STATUTE: Transportation Code, §§391.091 et seq.

§25.400.Purpose.

Transportation Code, §391.091, requires [ Texas Civil Statutes, Article 4477-9a, require ] the commission to contract with a person, firm, group, or association in the State of Texas to erect and maintain information logo signs within eligible highways and urban highway rights of way. It further requires the commission to adopt rules necessary to administer and enforce this signing program, and to regulate the content, composition, placement, erection, and maintenance of information logo signs and supports within eligible highways and urban highway rights of way. The sections in [ under ] this subchapter [ undesignated head ] prescribe the policies and procedures for the implementation of an information logo sign program.

§25.401.Definitions.

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

(1) - (7) (No change.)

(8) Dual logo--A panel on a specific information logo sign containing the names of either:

(A) two food establishments in a shared space under common ownership; or

(B) a gas and food establishment in a shared space under common ownership.

(9) [ (8) ] Eligible highway--A highway that:

(A) is located outside an urbanized area with a population of 50,000 or more[ ; ] and qualifies for a maximum speed limit of 65 miles per hour under 23 U.S.C. §154, or if that law is repealed, qualified for a maximum speed limit of 65 miles per hour on the day before the effective date of the repeal; or

(B) is a controlled-access highway located inside an urbanized area with a population of 50,000 or more.

(10) [ (9) ] Eligible urban highway--An interstate highway located inside an urbanized area with a population of 200,000 or more.

(11) [ (10) ] Gross building area--Square footage of usable area within a building, or series of buildings under one roof, that is considered usable by the retail businesses and the public; if a building is multi-level, this includes the square footage available on each level.

(12) [ (11) ] Information logo sign--A specific information logo sign or a major shopping area guide sign.

(13) [ (12) ] Interchange--The intersection of the centerlines of an eligible highway or eligible urban highway and a crossroad.

(14) [ (13) ] Interstate highway--Any highway which is part of the national system of interstate and defense highways designed to be a multi-lane and divided full control access roadway.

(15) [ (14) ] Major shopping area--An enclosed retail shopping mall offering goods and services for sale to the public located on a minimum 30 acres of land that contains 1 million [ 1,000,000 ] square feet or more of gross building area.

(16) [ (15) ] Major shopping area guide sign--A rectangular supplemental sign panel imprinted with the name of the retail shopping area as it is commonly known to the public and containing directional information.

(17) [ (16) ] Major shopping area ramp sign--A supplemental sign with the common name of the retail shopping mall, directional arrows, and/or distances placed near an eligible urban highway exit ramp or access road.

(18) [ (17) ] Multiple crossroad interchange--An interchange in which one exit in a direction of travel from an eligible highway provides the only point of access for two or more crossroads; the center of a multiple crossroad interchange is the mid-point of the intersection of the centerline of the eligible highway and centerlines of the affected crossroads.

(19) [ (18) ] Primary motorist service--Gas, food, lodging, or camping available to the traveling public.

(20) [ (19) ] Ramp business logo--A reduced size separate sign panel of specified dimensions attached to a ramp and containing the commercial establishment name, symbol, brand, trademark, or combination.

(21) [ (20) ] Ramp sign--A supplemental sign with ramp business logos or the name of the major shopping area, directional arrows, and distances placed near an eligible highway or eligible urban highway exit ramp.

(22) [ (21) ] Retail shopping mall--Retail businesses located within a building, or a series of buildings, connected by a common continuous roof and walls, and enclosing and covering all inner pedestrian walkways and common areas.

(23) [ (22) ] Specific information logo sign--A rectangular supplemental sign [ panel ] imprinted with the words "GAS," "FOOD," "LODGING," or "CAMPING," or with a combination of those words, and the names (or business logos) of commercial establishments offering those services.

(24) [ (23) ] State--The State of Texas.

(25) [ (24) ] Texas MUTCD--Texas Manual on Uniform Traffic Control Devices for Streets and Highways, latest edition, issued by the Texas Department of Transportation.

§25.402.Information Logo Sign Program.

(a) - (d) (No change.)

(e) Contacting participating businesses. In the first three months of a contract between the department and the contractor, the contractor shall contact all participating businesses with logo panels to:

(1) notify the businesses of the new contract between the department and the contractor; and

(2) coordinate whether the participating businesses will renew if space is available.

[(e) Sign erection in first year. In the first year of the contract between the department and contractor, the contractor shall erect information logo signs and business logos at a minimum of 40% of the interchanges where participation agreements have been completed between the commercial establishments or the retail shopping mall and the contractor. Information logo signs and business logos shall be erected within two years of the execution date of an agreement between the commercial establishments or the retail shopping mall and the contractor pursuant to §25.407 of this title (relating to Program Operation).]

(f) - (g) (No change.)

(h) Program information.

(1) The contractor shall furnish an electronic inventory to the department in a format of the department's choice. This inventory shall include, but not be limited to:

(A) a list of all businesses participating in the program;

(B) information on all participating businesses including addresses, key contacts, and phone numbers;

(C) location information for each specific information logo sign including:

(i) roadway;

(ii) exit number;

(iii) direction; and

(D) date of expiration of the contract between each participating business and the program contractor.

(2) The inventory shall be updated and provided to the department on a monthly basis.

(i) [ (h) ] Meetings. The contractor is required to attend meetings with the department or department representatives at least once per calendar year at a date and location determined by the department to discuss program operation. The department may also require other meetings.

(j) [ (i) ] Installation by contractor. Installation of information logo signs may only be performed by the contractor, a subcontractor approved by the department, or, in emergency situations, by the department. In the event that the department undertakes installation or other duties of the contractor, the contractor shall immediately remit to the department the specified fee or cost of such work.

(k) [ (j) ] Department review. Prior to installation, the design and location of information logo signs must be submitted to the department for review. The department shall inspect installation and monitor maintenance.

(l) [ (k) ] Sign relocation or removal. If the department determines that additional regulatory, warning, or guide signing is needed at an interchange, existing or planned information logo signs shall be removed or relocated by the contractor as directed by the department and at the sole expense of the contractor. If the department determines that construction or maintenance activities within the eligible highway or eligible urban highway rights of way will create conditions where existing information logo signs will not be in compliance with Transportation Code, Chapter 391 [ Texas Civil Statutes, Article 4477-9a ], or provisions of this title, the contractor shall:

(1) remove the business logos and ramp business logos of the affected commercial establishments;

(2) remove the information logo signs and ramp signs; and

(3) reimburse advance rental fees paid by commercial establishments or retail shopping malls prorated as per the date of removal of the business logos or major shopping area guide signs.

(m) [ (l) ] Sign maintenance. The information logo signs shall be maintained by the contractor in a manner and condition that is a distinct benefit to the safety of the public, benefit to the commercial establishments or retail shopping malls, and to the satisfaction of the department.

(n) [ (m) ] Fees.

[ (1) Non-refundable fees. ] The contractor shall assess installation, annual rental, covering, and replacement fees for the signs [ the following non-refundable fees ] and shall remit to the department the amounts specified in the contract [ an amount equal to 5.0% of all such fees ] no later than the seventh business day following the last day of the month such fees are received by the contractor.

[(A) Business logo installation fee. A one-time fee in the amount specified in the contractor's bid proposal under §25.404 of this title (relating to Contract Award Procedures) for the installation of the commercial establishment's business logo and, if necessary, ramp business logo.]

[(B) Business logo annual rental fee. An annual fee for each business logo and for each ramp business logo (for ramp signs) in the respective amounts specified in the contractor's bid proposal under §25.404 of this title (relating to Contract Award Procedures).]

[(C) Business logo covering fee. A total fee of $100 for covering a business logo and the ramp business logo and a total fee of $100 for uncovering a business logo and the ramp business logo pursuant to §25.407 of this title (relating to Program Operation).]

[(D) Business logo replacement fee. A $100 fee for each business logo and ramp business logo replaced at the request of the commercial establishment.]

[(E) Major shopping area guide sign annual rental fee. An annual fee for major shopping area sign and ramp sign in the respective amounts specified in the contractor's bid proposal under §25.404 of this title (relating to Contract Award Procedures).]

[(F) Major shopping area guide sign installation fee. A one-time fee of $1,000 for initial installation of each major shopping area guide sign pursuant to §25.407 of this title (relating to Program Operation).]

[(G) Major shopping area guide sign covering fee. A total fee of $500 for covering the major shopping area guide sign and the ramp sign and a total fee of $500 for uncovering the major shopping area guide signs and the ramp signs pursuant to §25.407 of this title (relating to Program Operation).]

(1) [ (2) ] Reduced fees. The contractor shall reduce the annual rental fee a prorated amount for each calendar day when:

(A) the business or ramp business logo(s), or the major shopping area guide sign has not been erected; or

(B) a previously erected business, ramp business logo, or major shopping area guide sign is obscured from view of the motorists for a period of time exceeding 10 consecutive calendar days.

(2) [ (3) ] Non-reducible fee. A contractor may not reduce the annual fee for the period a business logo, ramp business logo, or major shopping area guide sign is covered at the request of the commercial establishment or retail shopping mall.

(o) [ (n) ] Bonding. The contractor shall satisfy all requirements of Government Code, Chapter 2253 [ Texas Civil Statutes, Article 5160 ], relating to bonds.

(p) [ (o) ] Permits, licenses, and taxes. The contractor shall :

(1) procure all permits and licenses;

(2) pay all charges, fees, and taxes; [ and ]

(3) give all notices necessary and incidental to the due and lawful prosecution of the work ; and [ . When requested, the contractor shall ]

(4) furnish the department with evidence of compliance with the permit, license, and tax requirements upon request .

(q) [ (p) ] Records. The contractor shall : [ , ]

(1) consistent with generally accepted accounting principles, maintain all books, documents, papers [ paper ], advertising contracts, accounting records, and other evidence pertaining to the contract with the department ; and [ shall, upon request of the department, make available such documents, records, and information for examination by the department, its designee, or the State Auditor. ]

(2) furnish the department, its designee, or the state auditor such documents, records, and information for examination upon request.

(r) [ (q) ] Termination. The department or the contractor may terminate the contract upon default of the other party.

(1) If the contractor terminates the contract or defaults prior to the conclusion date of any five-year term, ownership of the contract rights and any rights in the information logo signs constructed at the various interchanges and intersections shall immediately pass to and vest in the department on the effective date of termination, and the contractor shall not be entitled to any compensation.

(2) If the department terminates the contract , before the contract's termination date, for reasons other than default of the contractor, the contractor will be paid for [ a percentage of ] the depreciated [ fair market ] value, as established by the department, for each of the information logo signs erected. The percentages are as follows: elapsed time since sign installation: less than one [ 0 - 1 ] year--90%; one - two years--75%; two - three years--50%; three - four years--25%; four years or greater--0%.

(s) [ (r) ] Sale, transfer, and assignment of contract. The contractor shall not sell, transfer, assign, or otherwise dispose of the contract or any portion thereof, or of its right, title, or interest therein, without the prior written consent of the department.

§25.404. Evaluation [ Contract Award Procedures ].

(a) Ineligible proposal. [ Notice. The department will publish a notice of intent to award an information logo sign program contract in industry related publications at least 45 calendar days prior to contractor selection. The notice shall include prequalification requirements for potential contractors. ]

[ (b) Bidding requirements. ]

[(1) To be considered for award of a contract under this section, a contractor must file with the director of traffic operations a sealed bid proposal in a form prescribed by the department. Submission of the bid proposal must comply with the location, date, and time requirements of the notice. The bids shall be opened at a public hearing conducted by the director of traffic operations. All bidders may attend and all bids shall be opened in their presence.]

[(2) The bid amount will be the total of the specific information logo sign installation fee plus, five times the sum of the annual rental fees for one business logo sign space and one ramp business logo sign per direction of travel, added to one-tenth of the sum of the major shopping area guide sign and major shopping area ramp sign rental fees. Expressed as a formula in the following Figure 1.]

[Figure 1: 43 TAC §25.404(b)(2)]

[ (3) ] The department will not consider a proposal that [ bid which ]:

(1) [ (A) ] fails to comply with any requirement of the notice;

(2) [ (B) ] specifies an installation fee that is less than 5.0% or greater than 25% of the business logo annual rental fee;

(3) [ (C) ] specifies that the ramp business logo annual rental fee is less than 5.0% or greater than 15% of the business logo annual rental fee;

(4) [ (D) ] specifies a major shopping area guide sign annual rental fee that is less than two times or greater than six times the business logo annual rental fee; [ or ]

(5) [ (E) ] specifies that the major shopping area ramp sign annual rental fee is less than one-half or greater than 150% of the business logo annual rental fee ; or [ . ]

(6) fails to guarantee a fee to be paid to the department of at least 10% of the rental fees collected from program participants.

(b) Evaluation. The department will determine the best value to the state by evaluating the contractor's:

(1) proposed team and the time commitment for each team member;

(2) capability for undertaking and performing the work;

(3) understanding of the project;

(4) quality of services offered;

(5) financial resources and ability to perform the work;

(6) approach or course of action to meeting the goals and objectives;

(7) ability to meet the schedule;

(8) ability to fulfill any other criteria listed in the notice;

(9) proposed percentage to be paid to the department from fees collected from program participants; and

(10) proposed amount for the rental and installation fees that will be charged to participants in the program.

(c) Award of contract.

(1) All [ bid ] proposals received by the director of traffic operations will [ shall ] be evaluated by a panel of department employees to determine which proposal will provide the best value to the state. A recommendation for award will be [ tabulated and ] forwarded to the commission to accept or reject . [ The commission may accept or reject all bids, and if accepted, award the contract to the lowest bidder. ]

(2) The department will notify the contractor by certified mail of the award of a information logo sign program contract within 10 [ ten ] calendar days of the date of the award. To accept the award, the contractor must execute a contract with the department within 30 calendar days of the date of the award.

(3) The contract shall be in a form prescribed by the department and shall, at a minimum, include all terms and conditions prescribed under this subchapter [ by this undesignated head ] and such other terms and conditions the department deems advantageous to the state.

§25.405.Specifications for Information Logo Signs.

(a) Specific information logo signs.

(1) (No change.)

(2) Content. A specific information logo sign shall contain:

(A) - (B) (No change.)

(C) no more than six business logos on one sign panel; [ and ]

(D) no more than three types of services on a sign panel ( [ . ] Signs with greater than two services shall be approved by the department prior to fabrication and installation ;) and [ . ]

(E) no more than two dual logos.

(3) - (4) (No change.)

(b) Business logos.

(1) (No change.)

(2) Content. A business logo may:

(A) (No change.)

(B) contain supplemental information, limited to the word "DIESEL" on a gas logo or "PROPANE" on a camping logo, or the words "24 HOURS" on a gas or a food logo, the words "DIESEL" , "PROPANE", and "24 HOURS" not to exceed six inches in height;

(C) - (D) (No change.)

(c) (No change.)

(d) Dual logos.

(1) An establishment may have two names displayed on a single logo sign panel if the establishment consists of:

(A) two food outlets in a shared space under common ownership; or

(B) gas and food outlets in a shared space under common ownership.

(2) A business requesting a dual logo will pay a fee that is 175% of the standard fee for a single logo.

(3) No more than two dual logos may be installed per logo sign.

(4) Dual logos may not be installed on a specific information logo sign unless all available spaces for the "FOOD" or "GAS" specific service categories are full.

(5) If demand for space on a logo sign exceeds the available number of spaces, businesses requesting a dual logo must follow the same random drawing process as described in §25.407 of this subchapter.

(e) [ (d) ] Major shopping area guide signs.

(1) Design. A major shopping area sign shall:

(A) have a green background with a white reflective legend and border;

(B) meet the applicable provisions of the Texas MUTCD;

(C) have background, legend, and border material which conforms with department specifications for reflective sheeting;

(D) not be illuminated externally or internally; and

(E) be fabricated, erected, and maintained in conformance with department specifications and fabrication details.

(2) Content. A major shopping area guide sign shall:

(A) contain the name of the major shopping area as it is commonly known to the public; and

(B) contain the exit number or, if exit numbers are not applicable, other directional information.

(3) Placement. Subject to approval of the department, a major shopping area guide sign shall be installed or placed:

(A) independently mounted, or if approved by the department, attached to existing guide signs;

(B) to take advantage of natural terrain;

(C) to have the least impact on the scenic environment;

(D) to avoid visual conflict with other signs within the highway right-of-way;

(E) with a lateral offset equal to or greater than existing guide signs;

(F) for both directions of travel on the eligible urban highway;

(G) without blocking motorists' visibility of existing traffic control and guide signs; and

(H) in locations that are not overhead unless approved by the department.

(4) Existing signs. Existing regulatory, warning, destination, guide, recreation, and cultural interest signs will not be removed; provided, however, that subject to the written approval of the department, such existing signs may be relocated by special permission of the department at the sole expense and responsibility of the contractor and only to the extent necessary to accommodate major shopping area guide signs.

(f) [ (e) ] Major shopping area ramp signs.

(1) Design. A major shopping area ramp sign shall:

(A) have a green background with a white reflective legend and border;

(B) meet the applicable provisions of the Texas MUTCD;

(C) have background, legend, and border material which conforms with department specifications for reflective sheeting;

(D) be fabricated, erected, and maintained in conformance with department specifications and fabrication details; and

(E) not be illuminated internally or externally.

(2) Content. A ramp sign shall contain:

(A) the name of the major shopping area as it is commonly known to the public; and

(B) directional arrows and distances.

(3) Placement. Subject to approval of the department, the major shopping area ramp sign(s) may be placed along an exit ramp or access road, or at an intersection of an access road and crossroad if the retail shopping mall driveway access, buildings, or parking areas are not visible from that exit ramp, access road, or intersection.

§25.406.Commercial Establishment Eligibility.

(a) - (c) (No change.)

(d) Variances.

(1) (No change.)

(2) A variance may be requested for a waiver of:

(A) - (C) (No change.)

(D) type of highway, except the highway must be on the state highway system and at or near a grade-separated intersection ; [ . ]

(3) Variances may not be requested for restrictions regarding dual logos.

(4) [ (3) ] A person may submit a request for a variance to the department's local district engineer indicating:

(A) which requirement of the program it does not meet; and

(B) the variance requested.

(5) [ (4) ] The department may require additional documentation following generally accepted engineering standards, which shall include, but not be limited to:

(A) traffic studies;

(B) maps indicating ramps, major arterials, ingress and egress points, existing signs and distances;

(C) traffic flow analysis including traffic counts to and from the commercial establishment or major shopping area;

(D) crash data and analysis; and

(E) detailed site plan of the commercial establishment or major shopping area, including but not limited to parking available, driveways, and location in reference to eligible highway or eligible urban highway.

(6) [ (5) ] The executive director, or the director's designee, may grant a variance if he or she determines it is feasible to place the sign at the requested location and the sign meets the requirements of the Texas MUTCD; and

(A) the variance will substantially promote traffic safety;

(B) the variance will substantially improve traffic flow;

(C) an overpass, highway sign or other highway structure unduly obstructs the visibility of an existing commercial sign; or

(D) the variance is necessary to substantially improve the efficiency and effectiveness of communicating information needed by people to safely and efficiently use the transportation system.

(7) [ (6) ] The executive director, or the director's designee, will indicate the reason for granting or denying a variance in writing.

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 June 25, 2004.

TRD-200404230

Richard D. Monroe

General Counsel

Texas Department of Transportation

Earliest possible date of adoption: August 8, 2004

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


43 TAC §25.403

(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.)

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 and more specifically, Transportation Code, §391.092, which provides the commission with the authority to establish rules regarding the Specific Information Logo Sign Program.

CROSS REFERENCE TO STATUTE: Transportation Code, §§391.091 et seq.

§25.403.Prequalification.

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 June 25, 2004.

TRD-200404231

Richard D. Monroe

General Counsel

Texas Department of Transportation

Earliest possible date of adoption: August 8, 2004

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


43 TAC §25.403

STATUTORY AUTHORITY: The new section 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 and more specifically, Transportation Code, §391.092, which provides the commission with the authority to establish rules regarding the Specific Information Logo Sign Program.

CROSS REFERENCE TO STATUTE: Transportation Code, §§391.091 et seq.

§25.403.Notice and Proposal Submission.

(a) Notice. The department will publish a notice of intent to award an information logo sign program contract in industry related publications and the Texas Register at least 45 calendar days prior to contractor selection. The notice shall include proposal requirements for potential contractors.

(b) Eligibility. A contractor must submit a sealed proposal to the director of the Traffic Operations Division, by mail or overnight delivery in compliance with the location, date, and time requirements of the notice.

(c) Contents. The proposal shall contain:

(1) the identity of key individuals, including subcontractors, who are proposed to be part of the contractor's project team together with their respective qualifications and experience on similar or related projects, the expected amount of involvement, and the time commitment for each individual and subcontractor;

(2) description of the contractor's:

(A) capability for undertaking and performing the work, including the types and locations of similar work performed in the last three years that best characterize the quality and cost control of the contractor as well as the names, addresses, and phone numbers of knowledgeable individuals who can be contacted; and

(B) internal policies and procedures related to work quality, cost control, and resources, including management and organization capabilities currently available for performing the work;

(3) a demonstration of the contractor's understanding of the project, based on information available from the department, site visits by the contractor, and knowledge of applicable regulations or requirements;

(4) a realistic, clear, and concise approach or course of action to meet the goals and objectives of the project that identifies potential impacts, impediments, or conflicts;

(5) a description of internal methods for schedule control, including current references that confirm the contractor's ability for the timely completion of project work;

(6) the location or locations where the work will be accomplished by the contractor and any subcontractor, the identities of those who will be involved at each work location for the major work elements on the project, the location of the business offices, and the location where the signs will be fabricated;

(7) an audited financial statement dated no later than the fiscal year immediately preceding the date of the proposal;

(8) supporting documentation such as graphs, charts, photos, resumes, and references; and

(9) the best value for the state which shall include:

(A) the proposed rate of return to the department from fees collected from program participants for the business logo/major shopping area guide sign installation fee, annual rental fee, area guide sign covering fee, and area guide sign replacement fee (The minimum rate of return that a contractor may propose for return to the department is 10%); and

(B) the proposed amount for the rental and installation fees that will be charged to a participant in the program (A business that has a dual logo will pay a fee that is 175% of the standard fee for a single logo).

(d) Page limits. The entire proposal should not exceed 25 pages. A page is defined as an 8.5 by 11 inch or 11 by 17 inch sheet containing text, pictures, graphs, charts, plan sheets, or any other graphics. Not more than five 11 by 17 inch sheets may be used in conjunction with pictures, graphs, charts, plans, and other graphics. If 11 by 17 inch sheets contain text only, they will be counted as two pages.

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 June 25, 2004.

TRD-200404232

Richard D. Monroe

General Counsel

Texas Department of Transportation

Earliest possible date of adoption: August 8, 2004

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


Subchapter K. MAJOR AGRICULTURAL INTEREST SIGN PROGRAM

The Texas Department of Transportation (department) proposes amendments to §25.702, the repeal of §25.703 and §25.704, and simultaneously proposes new §25.703 and §25.704, concerning the Major Agricultural Interest Sign Program.

EXPLANATION OF PROPOSED AMENDMENTS, REPEALS, AND NEW SECTIONS

House Bill 2905 and House Bill 3330, 78th Legislature, Regular Session, 2003, require certain contracting provisions relating to required rate of return and best value contracting for the department's Major Agricultural Interest Sign Program. House Bill 3330 requires remittance to the department of 10% of the fees collected by the contractor. House Bill 2905 provides for the scoring of proposals based, in part, on the percentage of fees offered.

The amendments to §25.702 removes the requirement that a contract must be awarded to the lowest bidder and also requires the contractor to contact businesses that are or have in the past participated in the program.

The amendments to subsection (e) remove the existing requirement regarding sign erection in the first year of the program. Since the program has been in existence since 1998, this requirement is no longer needed. The new text in this subsection requires the logo contractor to contact existing participating businesses within the first three months of a contract with the department. This will ensure that the contractor is working with participating businesses, the businesses know who to contact in case any issues arise in the program, and that any rental renewal issues are handled in a timely manner.

Amendments to subsection (m) remove the mandatory set percentage of fees that the contractor must remit to the department for installation, annual rental, covering, and replacement sign fees. Under House Bill 2905 and House Bill 3330, the department may accept a best value bid that is higher than the current 5.0% fee. The mandatory set amounts for sign installation, annual rental, covering, and replacement sign fees have been removed in order that the state may accept the contract with the best value. Amendments to subsection (q) clarify that the contractor will only be paid for a portion of the fair market value of the signs if the department terminates the contract before the contract's termination date for reasons other than default of the contractor.

The evaluation provisions of repealed §25.703 are moved to new §25.704. New §25.703, Notice and Proposal Submission, provides that the department will publish a notice of intent to award a major agricultural sign program contract and the proposal requirements. The new section describes proposal submittal requirements including delivery, page limits, team qualifications, the contractor's capability, the contractor's internal policies and procedures work quality/cost control/resources, a demonstration of the contractor's understanding of the project, the contractor's approach, a description of internal methods for schedule control, the locations for the work, an audited financial statement, supporting documentation, and the best value for the state. Pursuant to House Bill 2905, the best value for the state consists of the proposed rate of return to the department from fees collected from program participants for installation, annual rental, covering, and replacement. The best value also includes the proposed amount for the fees that will be charged to a participant in the program.

New §25.704 relates to the evaluation of the proposals. The prequalification requirement in former §25.704 is repealed. The department will not consider a proposal that fails to comply with the notice, specifies an installation fee that is less than 5.0% or greater than 25% of the annual rental fee. The minimum range is to ensure that the fee for sign rental is set at a minimum price that will encourage long-term businesses to participate in the program and discourage constant turnover within the program. The upper end of the range is established to ensure that the program contractor recoups its initial investment to install the sign over a period of several years, thus encouraging the contractor to maintain the signs at an appropriate level.

New §25.704 also states that the department will not consider a proposal that fails to guarantee a return to the department of 10% of the rental fees collected from program participants as required under House Bill 3330.

The department will determine the best value to the state by evaluating the contractor's proposed team and time commitment, capability for undertaking and performing the work, understanding of the project, quality of services offered, financial resources, approach, ability to meet the schedule, ability to fulfill any other criteria listed in the notice, proposed rate of return to the department from fees collected from program participants, and proposed amount for the rental and installation fees that will be charged to participate in the program in accordance with House Bill 2905. The proposals will be evaluated by a panel of department employees. The Texas Transportation Commission (commission) may reject or accept the recommended award.

FISCAL NOTE

James Bass, Director, Finance Division, has determined that for each of the first five years the amendments, repeals, and new sections as proposed are in effect there will be positive fiscal implications for the state as a result of enforcing or administering the amendments, repeals, and new sections. This positive impact will result from increasing the state's rate of return from the program contractor from 5.0% to 10%. The amount of increased revenue that will be provided to the state is estimated to be approximately $500 annually. There will be no fiscal impact to local governments. There are no anticipated economic costs for persons required to comply with the sections as proposed.

Carlos 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 amendments, repeals, and new sections.

PUBLIC BENEFIT

Mr. Lopez has also determined that for each of the first five years the sections are in effect, the public benefit anticipated as a result of enforcing or administering the amendments, repeals, and new sections will be a more efficient operation of the Major Agricultural Interest Sign Program. The rate of return will increase for the state as it increases and as the state is provided greater flexibility in the contracting process. There will be no adverse economic effect on small businesses.

SUBMITTAL OF COMMENTS

Written comments on the proposed amendments, repeals, and new sections may be submitted to Carlos 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 August 9, 2004.

43 TAC §25.702

STATUTORY AUTHORITY: These 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, §391.092, which provides the commission with the authority to establish rules regarding the Major Agricultural Interest Sign Program, and Transportation Code, §391.097 which requires the commission to regulate the content, composition, placement, erection, and maintenance of major agricultural interest signs and supports on an eligible rural highway right-of-way, and adopt rules necessary to enforce and implement that section.

CROSS REFERENCE TO STATUTE: Transportation Code, §391.091.

§25.702.Program.

(a) Award. The department may award a contract or contracts [ by low bid ] to a person, firm, group, or association in the State of Texas, for an initial period not to exceed five years, to develop, erect, operate, and maintain major agricultural interest signs at appropriate locations, subject to the following terms and conditions.

(b) Marketing. In marketing the sign program, the contractor shall:

(1) advertise the sign program in local papers and post notices at appropriate locations at the county seats; [ and ]

(2) send letters explaining the program to potential eligible major agricultural interests who request information ; and

(3) contact prior businesses that are participating or have participated in the program.

(c) Site plans. Prior to construction of a sign at an approved location, the contractor must submit a site plan to the department. Upon approval of the site plan, the contractor may begin work at the location described.

(d) As-built plans. The contractor shall submit as-built plans to the department within 45 calendar days upon completion of the installation of a sign.

(e) Contacting participating businesses. In the first three months of a contract between the department and contractor, the contractor shall contact all participating businesses with logo signs to coordinate any renewal issues with the participating businesses. [ Sign erection in first year. In the first year of the contract between the department and contractor, the contractor shall erect signs at a minimum of 40% of the sites where participation agreements have been completed between the major agricultural interest and the contractor. Signs shall be erected within two years of the execution date of an agreement between the major agricultural interest and the contractor pursuant to §25.707 of this title (relating to Program Operation). ]

(f) Cooperation with other contractors. The contractor is required to cooperate with any contractor working on the state highway system as well as any other contractors operating major agricultural interest sign programs within the state. Upon request by a potential lessee, the department, or a member of the public, the contractor will furnish the name, address, and telephone number of other operating major agricultural interest sign contractors.

(g) Annual report. The contractor shall furnish an annual report to the department. The annual report will include the signs erected and number of participation agreements completed. Other reports may also be required throughout the year as determined by the department.

(h) Meetings. The contractor is required to attend meetings with the department or department representatives at least once per calendar year at a date and location determined by the department to discuss program operation. The department may also require other meetings as necessary to ensure compliance with this subchapter.

(i) Installation by contractor. Installation of signs may only be performed by the contractor, a subcontractor approved by the department, or, in emergency situations, by the department. In the event that the department undertakes installation or other duties of the contractor, the contractor shall immediately remit to the department the specified fee or cost of such work.

(j) Department review. Prior to installation, the design and location of signs must be submitted to the department for review. The department shall inspect installation and monitor maintenance.

(k) Sign relocation or removal. If the department determines that additional regulatory, warning, or signing is needed at any location along the eligible rural highway, existing or planned signs shall be removed or relocated by the contractor as directed by the department and at the sole expense of the contractor. If the department determines that construction or maintenance activities within highway rights of way will create conditions where existing signs will not be in compliance with Transportation Code, §§391.097-391.098, or provisions of this subchapter, the contractor shall:

(1) remove the affected signs; and

(2) reimburse advance rental fees paid by the agricultural interest prorated as per the date of removal of the sign.

(l) Sign maintenance. The signs shall be maintained by the contractor in a manner and condition that is:

(1) a distinct benefit to the safety of the public;

(2) a benefit to the major agricultural interest; and

(3) to the satisfaction of the department.

(m) Fees.

(1) The contractor shall assess installation, annual rental, covering, and replacement fees for the signs, and shall remit to the department the amounts specified in the contract [ Non-refundable fees. The contractor shall assess the following non-refundable fees and shall remit to the department an amount equal to 5.0% of all such fees ] no later than the seventh business day following the last day of the month such fees are received by the contractor.

[(A) Sign installation fee. The contractor shall assess a one-time fee of the amount specified in the contractor's bid proposal under §25.704 of this title (relating to Contract Award Procedures) for initial installation of a sign pursuant to §25.707 of this title (relating to Program Operation).]

[(B) Annual rental fee. The contractor shall assess an annual fee to the major agricultural interest in the amount specified in the contractor's bid proposal under §25.704 of this title.]

[(C) Sign covering fee. The contractor shall assess a total fee of $250 for covering the sign and a total fee of $250 for uncovering the sign pursuant to §25.707 of this title.]

(2) Reduced fees. The contractor shall reduce the annual rental fee to a prorated amount for each calendar day when:

(A) the sign has not been erected; or

(B) a sign is obscured from view of the motorists for a period of time exceeding 10 consecutive calendar days.

(3) Non-reducible fee. A contractor may not reduce the annual fee for the period a sign is covered at the request of the major agricultural interest.

(n) Bonding. The contractor shall satisfy all requirements of Government Code, Chapter 2253, concerning bonds.

(o) Permits, licenses, and taxes. The contractor shall:

(1) procure all permits and licenses;

(2) pay all charges, fees, and taxes;

(3) give all notices necessary and incidental to the due and lawful prosecution of the work; and

(4) furnish the department with evidence of compliance with the permit, license, and tax requirements upon request.

(p) Records. The contractor shall:

(1) consistent with generally accepted accounting principles, maintain all books, documents, papers, advertising contracts, accounting records, and other evidence pertaining to the contract with the department; and

(2) furnish the department, its designee, or the state auditor [ State Auditor ] such documents, records, and information for examination upon request.

(q) Termination. The department or the contractor may terminate the contract upon default of the other party.

(1) If the contractor terminates the contract or defaults prior to the conclusion date of any five-year term, ownership of the contract rights and any rights in signs constructed along the eligible rural highways shall immediately pass to and vest in the department on the effective date of termination, and the contractor shall not be entitled to any compensation.

(2) If the department terminates the contract , before the contract's termination date, for reasons other than default of the contractor, the contractor will be paid for a percentage of the fair market value, as established by the department, for each of the signs erected. The percentages are as follows: elapsed time since sign installation: less than one [ 0-1 ] year--90%; one-two years--75%; two-three years--50%; three-four years--25%; four years or greater--0%.

(r) Sale, transfer, and assignment of contract. The contractor shall not sell, transfer, assign, or otherwise dispose of the contract or any portion thereof, or of its right, title, or interest therein, without the prior written consent of the department.

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 June 25, 2004.

TRD-200404233

Richard D. Monroe

General Counsel

Texas Department of Transportation

Earliest possible date of adoption: August 8, 2004

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


43 TAC §25.703, §25.704

(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: These repeals 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, §391.092, which provides the commission with the authority to establish rules regarding the Major Agricultural Interest Sign Program, and Transportation Code, §391.097 which requires the commission to regulate the content, composition, placement, erection, and maintenance of major agricultural interest signs and supports on an eligible rural highway right-of-way, and adopt rules necessary to enforce and implement that section.

CROSS REFERENCE TO STATUTE: Transportation Code, §391.091.

§25.703.Prequalification.

§25.704.Contract Award Procedures.

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 June 25, 2004.

TRD-200404234

Richard D. Monroe

General Counsel

Texas Department of Transportation

Earliest possible date of adoption: August 8, 2004

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


43 TAC §25.703, §25.704

STATUTORY AUTHORITY: These 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, §391.092, which provides the commission with the authority to establish rules regarding the Major Agricultural Interest Sign Program, and Transportation Code, §391.097 which requires the commission to regulate the content, composition, placement, erection, and maintenance of major agricultural interest signs and supports on an eligible rural highway right-of-way, and adopt rules necessary to enforce and implement that section.

CROSS REFERENCE TO STATUTE: Transportation Code, §391.091.

§25.703.Notice and Proposal Submission.

(a) Notice. The department will publish a notice of intent to award a major agricultural sign program contract in industry related publications and the Texas Register at least 45 calendar days prior to contractor selection. The notice shall include proposal requirements for potential contractors.

(b) Eligibility. A contractor must submit a sealed proposal to the director of the Traffic Operations Division by mail or overnight delivery in compliance with the location, date, and time requirements of the notice.

(c) Contents. The proposal shall contain:

(1) the identity of key individuals, including subcontractors, who are proposed to be part of the contractor's project team together with their respective qualifications and experience on similar or related projects, the expected amount of involvement, and the time commitment for each individual and subcontractor;

(2) a description of the contractor's:

(A) capability for undertaking and performing the work, including the types and locations of similar work performed in the last three years that best characterize the quality and cost control of the contractor as well as the names, addresses, and phone numbers of knowledgeable individuals who can be contacted; and

(B) internal policies and procedures related to work quality, cost control, and resources, including management and organization capabilities currently available for performing the work;

(3) a demonstration of the contractor's understanding of the project, based on information available from the department, site visits by the contractor, and knowledge of applicable regulations or requirements;

(4) a realistic, clear, and concise approach or course of action to meet the goals and objectives of the project that identifies potential impacts, impediments, or conflicts;

(5) a description of internal methods for schedule control, including current references that confirm the contractor's ability for the timely completion of project work;

(6) the location or locations where the work will be accomplished by the contractor and any subcontractor, the identities of those who will be involved at each work location for the major work elements on the project, the location of the business offices, and the location where the signs will be fabricated;

(7) an audited financial statement dated no later than the fiscal year immediately preceding the date of the proposal;

(8) supporting documentation such as graphs, charts, photos, resumes, and references; and

(9) the best value for the state which shall include:

(A) the proposed rate of return to the department from fees collected from program participants (the minimum rate of return that a contractor may propose for return to the department is 10%) for the installation fee, annual rental fee, covering fee, and sign replacement fee; and

(B) the proposed amount for the rental and installation fees that will be charged to a participant in the program.

(d) Page limits. The entire proposal should not exceed 25 pages. A page is defined as an 8.5 by 11 inch or 11 by 17 inch sheet containing text, pictures, graphs, charts, plan sheets, or any other graphics. Not more than five 11 by 17 inch sheets may be used in conjunction with pictures, graphs, charts, plans, and other graphics. If 11 by 17 inch sheets contain text only, they will be counted as two pages.

§25.704.Evaluation.

(a) Ineligible proposal. The department will not consider a proposal that:

(1) fails to comply with any requirement of the notice;

(2) specifies an installation fee that is less than 5.0% or greater than 25% of the business logo annual rental fee; or

(3) fails to guarantee a percentage to be paid to the department of 10% of the rental fees collected from program participants.

(b) Evaluation. The department will determine the best value to the state by evaluating the contractor's:

(1) proposed team and the time commitment for each team member;

(2) capability for undertaking and performing the work;

(3) understanding of the project;

(4) quality of the services offered;

(5) financial resources and ability to perform the work;

(6) approach or course of action to meeting the goals and objectives;

(7) ability to meet the schedule;

(8) ability to fulfill any other criteria listed in the notice;

(9) proposed percentage to be paid to the department from fees collected from program participants; and

(10) proposed amount for the rental and installation fees that will be charged to participant in the program.

(c) Award of contract.

(1) All proposals received by the director of the Traffic Operations Division will be evaluated by a panel of department employees to determine which proposal will be the best value for the state, and a recommendation for award will be forwarded to the commission to accept or reject.

(2) The department will notify the contractor by certified mail of the award of the sign program contract within 10 calendar days of the date of the award. To accept the award, the contractor must execute a contract with the department within 30 calendar days of the date of the award.

(3) The contract shall be in a form prescribed by the department and shall, at a minimum, include all terms and conditions prescribed by this subchapter and such other terms and conditions the department deems advantageous to the state.

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 June 25, 2004.

TRD-200404235

Richard D. Monroe

General Counsel

Texas Department of Transportation

Earliest possible date of adoption: August 8, 2004

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