EMERGENCY RULESAn agency may adopt a new or amended section or repeal an 
existing section on an emergency basis if it determines that such action is 
necessary for the public health, safety, or welfare of this state. The section 
may become effective immediately upon filing with the Texas Register, or on a 
stated date less than 20 days after filing and remaining in effect no more than 
120 days. The emergency action is renewable once for no more than 60 additional 
days.
Symbology in amended emergency sections. New language added to an existing 
section is indicated by the use of bold text. [Brackets] indicate deletion of 
existing material within a section.

TITLE 43. TRANSPORTATION
PART I. Texas Department of Transportation
CHAPTER 6.State Infrastructure Bank
The Texas Department of Transportation adopts on an emergency basis Chapter 6, 
sec.sec.6.1-6.4, 6.11, 6.12, 6.21-6.24, 6.31, 6.32, and 6.41-6.46, concerning a 
state infrastructure bank. 
Section 350 of the Federal National Highway System Designation Act of 1995 
(Public Law Number 104-59) provides that federal funds are available for the 
provision of financial assistance to eligible transportation projects through a 
state infrastructure bank. Senate Bill 370, 75th Legislature, 1997, enacted 
Transportation Code, Chapter 222, new Subchapter D to create a state 
infrastructure bank to provide financial assistance for urgently needed 
transportation systems. 
This chapter is adopted on an emergency basis to comply with Senate Bill 370 
which became effective September 1, 1997. Failure to quickly implement the State 
Infrastructure Bank would cause the delay of critical infrastructure projects. 
Therefore, the Texas Transportation Commission finds that an imminent peril to 
the safety and welfare of the traveling public, and the requirements of state 
law require adoption of rules on fewer than 30 days notice. 
Section 6.1 describes the purpose of the bank as defined by law. 
Section 6.2 provides definitions for words and terms used in this chapter.
Section 6.3 describes general policies to provide the public with information 
which pertains to all activities of the bank. Subsections (a) through (f) 
restate provisions of law and are included to emphasize requirements which 
cannot be negotiated. Subsection (g) implements audit requirements of the 
federal regulations and further provides for prudent safeguards for the use of 
public funds. 
Section 6.4 provides that projects which are complete or are in advanced stages 
of consideration by the department do not have to incur additional costs or time 
delays because of the adoption of these rules. 
Section 6.11 provides that applicants must be legally authorized to construct, 
maintain, or finance eligible projects. 
Section 6.12 implements the provisions of law by defining projects that are 
eligible for consideration. 
Section 6.21 states that the executive director may assist potential applicants 
in developing an application provided the department is authorized by state law 
to do so. 
Section 6.22 provides that all requests for financial assistance will be made in 
a form which allows comparison regardless of the type of assistance requested. 
Comparability will aid in approving or rejecting projects and in prioritizing 
projects should the demand for assistance exceed the bank's ability to provide 
assistance. 
Section 6.23 provides that applicants must submit basic information in an 
application to describe the project and requested financial assistance. 
Supplemental information and data are also required to more fully describe the 
project and to provide information regarding financial feasibility, project 
impacts, and commitments and approvals. An exception is provided to avoid unduly 
burdening applicants with new study requirements when the project is in the 
Unified Transportation Program Priority 1 or Priority 2 designations. Also to 
avoid undue burdens, irrelevant requirements may be waived. To provide complete 
information, additional explanations and expansions of information or data may 
be required. 
Section 6.24 provides that the commission may suspend and subsequently restart 
the taking of applications should the bank's operation or financial condition 
need such action. This is intended to avoid applicants incurring the costs of 
studies and application preparation when the bank is unable to promptly consider 
offering financial aid. 
Section 6.31 provides that applicants will be notified when an application is 
complete. The executive director will analyze the information presented and 
submit findings and recommendations for the application to the commission for 
further consideration. 
Section 6.32 explains that all completed applications will be submitted to the 
commission for consideration. The commission may grant preliminary approval if 
the project and applicant are likely to have sufficient revenues to repay the 
financial assistance, the project is consistent with various transportation 
plans, and meets applicable requirements for social, economical and 
environmental impact studies. Preliminary approval authorizes the executive 
director to negotiate an appropriate agreement with the applicant regarding the 
project and financial assistance. Preliminary approval of an agreement to 
provide financial assistance may be made so long as it does not authorize final 
approval and construction of the project. 
Final approval of a project and its construction may be made only after 
completion and approval of all required social, economical and environmental 
studies. The commission may postpone action on an application if warranted by 
the bank's financial condition. The commission may make both preliminary and 
final approval contingent on the applicant meeting requirements or performing 
acts. Preliminary approval, final approval, or disapproval must be made by 
written commission order and include rationale, findings and conclusions. 
Section 6.41 provides that the executive director will negotiate agreements. 
Specific guidance on the anticipated nature of these agreements is provided. 
However, the executive director may choose to not include terms given in the 
subchapter and may include terms that are not in the subchapter depending on the 
nature of each individual project. 
Section 6.42 provides that the department may perform all or part of the work 
for a project. If performed, the work will be performed in the normal course of 
business with financial aid provided as required. The applicant will be liable 
for repayment of principal, interest and any fees from the date the financial 
aid is provided. In order to allow the department to work on the project in the 
most efficient and economic manner, applicants may not contest the department's 
decisions. The applicant will provide rights of entry and otherwise assist in 
the pursuit of the work. 
This section also provides that the department may allow the applicant to 
conduct all or part of the work. If so conducted, additional provisions are 
required to avoid jeopardizing the department's revenues from federal 
reimbursements. Should an applicant charged with conducting the work fail to 
comply with requirements, then the applicant will reimburse the department for 
the loss of any federal funds. To ensure that federal requirements are met, 
requests for approvals will be routed through normal departmental channels.
Section 6.43 provides that the department may require adherence to applicable 
standards in order to ensure that federal requirements are met. 
Section 6.44 provides that the department may require the use of maintenance 
standards when needed to protect security interests in a project or asset and to 
protect the public's safety. The section also provides that applicants shall set 
any applicable speed limits as prescribed by state law in order to meet the 
department's duty to provide for the public safety. 
Section 6.45 provides that traditional terms covering the loan of financial 
assistance, repayment and security will be included. 
Section 6.46 provides notice to the public and applicants that additional terms 
and conditions may be included as the executive director may require.

SUBCHAPTER A.General Provisions
43 TAC sec.sec.6.1-6.4
The new sections are adopted on an emergency basis under Transportation Code, 
sec.201.101, which provides the Texas Transportation Commission with the 
authority to establish rules for the conduct of work of the Texas Department of 
Transportation, and more specifically, Chapter 222, new Subchapter D, which 
requires the commission to, by rule, implement the subchapter and establish 
eligibility criteria for an entity applying for financial assistance from the 
bank.

sec.6.1.Purpose.
(a) Transportation Code, Chapter 222, Subchapter D, establishes a state 
infrastructure bank as an account within the state highway fund, to be 
administered by the Texas Transportation Commission. The commission shall use 
money deposited in the bank to: 
(1) encourage public and private investment in transportation facilities, 
including facilities that contribute to the multimodal and intermodal 
transportation capabilities of the state; and 
(2) develop financing techniques designed to: 
(A) expand the availability of funding for transportation projects and to reduce 
direct state costs; 
(B) maximize private and local participation in financing projects; and 
(C) improve the efficiency of the state transportation system.
(b) This chapter specifies the procedures and conditions by which an eligible 
entity may apply for and obtain financial assistance from the bank.

sec.6.2.Definitions.
The following words and terms, when used in this chapter, shall have the 
following meanings, unless the context clearly indicates otherwise. 
Bank-The state infrastructure bank account in the state highway fund.
Commission-The Texas Transportation Commission.
Construction-A term as defined by Title 23, United States Code, sec.101, and 
which includes preliminary studies required to determine the feasibility of an 
eligible project.
Department-The Texas Department of Transportation.
Design manual-The latest editions of and successors to the: 
(A) operations and procedures manual of the design division;
(B) bridge operational planning manual of the design division; 
(C) hydraulic manual of the design division;
(D) Texas Manual on Uniform Traffic Control Devices;
(E) standard highway sign designs for Texas; and
(F) traffic control standard sheets booklet of the traffic operations division.
Executive director-The executive director of the Texas Department of 
Transportation, or his or her designee.
Expected financing period-The time taken to fully pay any and all liabilities 
incurred to finance an eligible project, including all extensions of time 
through refunding or restructuring.
Federal Act-Section 350 of the National Highway System Designation Act of 1995 
(Public Law Number 104-59) and all rules and regulations adopted under the Act.
Federal-aid highway-A term as defined in Title 23, United States Code, sec.101.
Financial assistance-A term which includes:
(A) extending credit by direct loan;
(B) providing credit enhancements;
(C) serving as a capital reserve for bond or debt instrument funding;
(D) subsidizing interest rates;
(E) insuring the issuance of a letter of credit or credit instrument;
(F) financing a purchase or lease agreement in connection with a transit 
project;
(G) providing security for bonds and other debt instruments; or
(H) providing methods of leveraging money that have been approved by the United 
States Secretary of Transportation and which relate to the project for which the 
assistance is provided.
Investment grade rating-Creditworthiness sufficient to qualify a debt as 
eligible for commercial bank investment under regulations issued by the 
Comptroller of the Currency. For bonds, these debts are limited to ratings of 
"AAA," "AA," "A," and "BBB" by Standard and Poor's Rating Services or 
corresponding ratings used by other rating services.
Metropolitan planning organization (MPO)-An organization designated in certain 
urbanized areas to carry out the transportation planning process as required by 
Title 23, United States Code, sec.134.
Secondary Funds-A term which includes:
(A) the repayment of a loan, including interest, principal, fees, charges, or 
other assistance that is provided with money deposited to the credit of the 
bank; and
(B) the investment income generated by secondary funds deposited to the credit 
of the bank.
Transit project-Capital expenditures, excluding expenditures for commuter rail, 
eligible for funding under Title 49, United States Code, sec.5307, sec.5309, and 
sec.5311.
Unified Transportation Program, Priority 1 and Priority 2 designations-That 
group of transportation programs for which the commission has authorized the 
department to prepare or complete plans, specifications, and estimates, or 
acquire right-of-way, or adjust utilities, or be let to contract.

sec.6.3.General Policies. 
(a) All actions of the bank will be in accordance with applicable federal and 
state law, and applicable rules and regulations. 
(b) Grant financing will not be considered. 
(c) No actions will be knowingly taken which would result in the bank's credit 
rating falling below investment grade. 
(d) If the bank's credit rating falls below investment grade, the commission 
will take actions necessary or appropriate to return the bank's credit rating as 
promptly as practicable to investment grade. 
(e) The federal government shall not be obligated by any act of the commission 
or department under this chapter. 
(f) Repayment of any financial assistance from the bank will commence at the 
earliest reasonable date consistent with applicable federal and state law, 
rules, and regulations. The term for repaying any financial assistance will not 
exceed 30 years after the date of the first payment.
(g) The Federal Highway Administration, the Federal Transit Administration, the 
Comptroller General of the United States, the Texas State Auditor's Office, and 
the department, or any of their authorized representatives, shall have the right 
of access to any books, documents, papers, or other records of the applicant 
which are pertinent to any agreement, in order to make audits, examinations, 
excerpts, and transcripts. 

sec.6.4.Applicability.
The requirements of this chapter do not apply, and the commission may authorize 
the bank to provide financial assistance, to an eligible project for which an 
innovative financing proposal has been submitted by the department and approved 
by the Federal Highway Administration prior to September 1, 1997. 
Issued in Austin, Texas, on September 25, 1997. 
TRD-9712745
Bob Jackson
Deputy General Counsel
Texas Department of Transportation
Effective date: September 25, 1997
Expiration date: January 23, 1998
For further information, please call: (512) 463-8630

SUBCHAPTER B.Eligibility
43 TAC sec.6.11, sec.6.12
This chapter is adopted on an emergency basis under Transportation Code, 
sec.201.101, which provides the Texas Transportation Commission with the 
authority to establish rules for the conduct of work of the Texas Department of 
Transportation, and more specifically, Chapter 222, new Subchapter D, which 
requires the commission to, by rule, implement the subchapter and establish 
eligibility criteria for an entity applying for financial assistance from the 
bank.

sec.6.11. Eligible Entities.
A public or private entity authorized by law to construct, maintain, or finance 
an eligible project is eligible to apply for financial assistance under 
Subchapter C of this chapter.

sec.6.12.Eligible Projects.
(a) The following public or private projects are eligible for financial 
assistance: 
(1) construction of a federal-aid highway, including required preliminary 
studies; 
(2) a transit project; or 
(3) for the expenditure of secondary funds, a transit project including a 
project eligible for assistance under Title 49, United States Code, sec.5310, or 
the planning, development, construction, maintenance, or operation of a public 
road, provided that: 
(A) the project is eligible for assistance under Title 23 or Title 49, United 
States Code; and 
(B) the department is authorized by state law to provide assistance for the 
project. 
(b) Financial assistance to a private entity shall be limited to an eligible 
project that: 
(1) provides transportation services or facilities that provide a demonstrated 
public benefit; or 
(2) is constructed or operated in cooperation with a state agency or political 
subdivision in accordance with an agreement between that state agency or 
political subdivision and a private entity.
Issued in Austin, Texas, on September 25, 1997.
TRD-9712747
Bob Jackson
Deputy General Counsel
Texas Department of Transportation
Effective date: September 25, 1997
Expiration date: January 23, 1998
For further information, please call: (512) 463-8630

SUBCHAPTER C.Procedures
43 TAC sec.sec.6.21-6.24
This chapter is adopted on an emergency basis under Transportation Code, 
sec.201.101, which provides the Texas Transportation Commission with the 
authority to establish rules for the conduct of work of the Texas Department of 
Transportation, and more specifically, Chapter 222, new Subchapter D, which 
requires the commission to, by rule, implement the subchapter and establish 
eligibility criteria for an entity applying for financial assistance from the 
bank.

sec.6.21. Department Contact. 
The executive director will designate a contact within the department for the 
purpose of providing information and assistance to potential applicants. 
Assistance may include non-binding advice, counsel, and consultation regarding 
all aspects of a possible eligible project. If the executive director determines 
that the project is otherwise eligible for assistance, that the department is 
authorized by state law to provide assistance, and that department resources are 
available, the department may provide engineering and other technical assistance 
to aid potential applicants in developing an application. Any advice, 
assistance, or aid provided will not constitute a commitment or liability on the 
part of the department or the commission. Potential applicants are encouraged to 
communicate with the contact at the earliest possible date.

sec.6.22. Requested Financial Assistance.
An applicant may request any form of financial assistance authorized by this 
chapter. In general, all requests for financial assistance shall be treated as 
requests for the use of specific sums of money from the bank for certain periods 
of times at stated interest rates with scheduled repayments of principal, 
interest, and any appropriate charges or fees. 

sec.6.23.Application Procedure.
(a) Basic application. An eligible entity shall submit an application to the 
executive director in a form prescribed by the department. The application must 
be accompanied by: 
(1) an overview of the project, which shall include a description of the 
project, the total cost of the project and the proposed use of the requested 
financial assistance; 
(2) the amounts of money required to supply the requested assistance (including 
the needs of any reserve funds which must be established and held by the bank 
for the applicant's benefit, but which may not be expended from the bank); 
(3) any proposed pledge of collateral or security and priority of claim to those 
items; 
(4) a description of the need for the project and potential impact on traffic 
congestion and mobility; and 
(5) the latest bond rating obtained by the applicant when using the sources of 
revenue to be pledged, or if not applicable, other evidence of creditworthiness 
similar to that required to obtain a bond rating; 
(6) for public roadway projects, a preliminary design study which includes: 
(A) an initial route and potential alignments; 
(B) the project's logical termini and independent utility;
(C) the location of all right-of-way, facilities and equipment required to make 
the project functional; and 
(D) revisions or changes to state highway system facilities necessitated by the 
project; and 
(7) for transit projects, a preliminary scope study which shall include 
preliminary layouts, architectural drawings, equipment specifications, and other 
information necessary to fully describe the project and to comply with all 
requirements of the Federal Transit Administration.
(b) Supplemental information and data. The applicant shall submit the following 
supplemental information and data. If the project is in the Unified 
Transportation Program's Priority 1 or Priority 2 designations, the applicant 
must submit only that supplemental information and data which the executive 
director finds relevant to the project and the requested financing. In 
determining relevant supplemental information and data, the executive director 
will consider the complexity and size of the project, the type of infrastructure 
or asset involved, the type and complexity of financial assistance requested, 
the complexity of the project's and the applicant's financial status, and how 
soon transportation benefits will begin. 
(1) Financial feasibility study. The applicant shall submit a financial 
feasibility study which must include: 
(A) a project construction or asset acquisition schedule identifying the timing, 
amount, and source of all cash required; 
(B) an analysis of the expected financing period of the project;
(C) a pro forma analysis based on cash basis accounting for the expected 
financing period of the project showing: 
(i) anticipated cash revenues to be used in repayment by source;
(ii) anticipated cash disbursements by category including disbursements for 
operations, maintenance, renewal, and replacement; 
(iii) anticipated cash balances at the close of each calendar or fiscal year; 
and 
(iv) cash used to meet the requirements of any sinking funds, reserve funds, and 
loan amortization payments; 
(D) a description of the methods used in preparing the financial feasibility 
study, the assumptions contained in the study, and persons and entities 
responsible for the preparation of the study; 
(E) the length of time the amounts will be outstanding or obligated; 
(F) the anticipated interest rates applicable during the term of the financial 
assistance; 
(G) any interest rate subsidies requested; 
(H) the expected savings to the applicant resulting from the assistance; and 
(I) a description of how the requested assistance will: 
(i) expand the availability of funding for transportation projects;
(ii) reduce direct state costs; 
(iii) maximize private and local participation in financing projects; 
(iv) improve the efficiency of the state's transportation systems; and 
(v) accelerate the project's transportation benefits over conventional financing 
methods. 
(2) Project impacts. The applicant shall conduct studies analyzing the impact of 
the project. The studies must include: 
(A) how the project will be consistent with the Statewide Transportation Plan 
and, if appropriate, with the metropolitan transportation plan developed by a 
metropolitan planning organization; 
(B) if the project is in a Clean Air Act non-attainment area, how the project 
will be consistent with the Statewide Transportation Improvement Plan, with the 
conforming plan and Transportation Improvement Program (TIP) for the 
metropolitan planning organization in which the project is located (if 
necessary), and with the State Implementation Plan; and 
(C) the economic impact based on a study assessing the potential impact of the 
project on the economy of the region in which the project is to be located, 
including the economies of each county in which the project is to be located and 
of the municipalities within those counties. 
(3) Commitments and approvals. The applicant shall obtain commitments and 
approvals which must include: 
(A) official written approval of the project by the governing body of each 
entity which may become liable for repayment of any financial assistance; 
(B) a binding commitment that the environmental consequences of the proposed 
project will be fully considered, and that the proposed project will comply with 
all applicable local, state, and federal environmental laws, regulations, and 
requirements; 
(C) a preliminary identification of potential social, economic, and 
environmental impacts; and 
(D) appropriate documentary evidence of community involvement in development of 
the proposed project and public support for it. 
(c) Waiver of required information or data. The executive director may waive 
submission of individual items of information or data required by this section 
if: 
(1) the information or data required by this section is not relevant to the 
project, applicant, or the financial assistance requested (in determining 
relevant supplemental information and data, the executive director will consider 
the complexity and size of the project, the type of infrastructure or asset 
involved, the type and complexity of financial assistance requested, the 
complexity of the project's and the applicant's financial status, and how soon 
transportation benefits will begin); or 
(2) the department already possesses information or data in a format which may 
be substituted for the required information or data.
(d) Requirement of additional information. The executive director may require 
the applicant to submit explanations and expansions of information or data 
required by this section which are relevant to the project, applicant, or 
financial assistance requested. In determining when additional relevant 
explanations and expansions of information or data are required, the executive 
director will consider the complexity and size of the project, the type of 
infrastructure or asset involved, the type, complexity, and amount of financial 
assistance requested, and the complexity of the project's and the applicant's 
financial status.

sec.6.24.Suspension of Applications.
If the commission determines that bank funding is fully committed or other 
uncertainties exist which warrant suspension of acceptance of applications, the 
department may publish a notice in the Texas Register providing that 
applications will no longer be accepted. When conditions change, the commission 
shall publish a notice in the Texas Register that applications are again being 
accepted.
Issued in Austin, Texas, on September 25, 1997. 
TRD-9712749
Bob Jackson
Deputy General Counsel
Texas Department of Transportation
Effective date: September 25, 1997
Expiration date: January 23, 1998
For further information, please call: (512) 463-8630

SUBCHAPTER D.Department and Commission Action
43 TAC sec.6.31, sec.6.32
This chapter is adopted on an emergency basis under Transportation Code, 
sec.201.101, which provides the Texas Transportation Commission with the 
authority to establish rules for the conduct of work of the Texas Department of 
Transportation, and more specifically, Chapter 222, new Subchapter D, which 
requires the commission to, by rule, implement the subchapter and establish 
eligibility criteria for an entity applying for financial assistance from the 
bank. 

sec.6.31.Department Action. 
(a) Notification. The department will review the application submitted under 
Subchapter C. When the application is complete, the department will so notify 
the applicant. 
(b) Analysis. The executive director will perform an analysis of the application 
to support findings and recommendations for the commission. The executive 
director will submit the application together with findings and recommendations 
to the commission. 

sec. 6.32. Commission Action.
(a) Commission analysis. The commission will determine the sufficiency of the 
information, the probable reliability of the projections, and the anticipated 
financial condition of the applicant and the project.
(b) Preliminary approval. 
(1) Considerations. Prior to granting preliminary approval of an eligible 
project, the commission will consider: 
(A) whether the project is on the state highway system; 
(B) transportation need for and anticipated public benefit of the project; 
(C) the present and projected financial condition of the bank;
(D) potential social, economical, and environmental impacts;
(E) conformity with the purposes of the bank; and 
(F) evidence of local public support. 
(2) Project requirements. The commission may grant preliminary approval to a 
project for bank financing if it finds that: 
(A) the project is consistent with the Statewide Transportation Plan and, if 
appropriate, with the metropolitan transportation plan developed by a 
metropolitan planning organization; 
(B) if the project is in a Clean Air Act non-attainment area, the project will 
be consistent with the Statewide Transportation Improvement Plan, with the 
conforming plan and Transportation Improvement Program (TIP) for the 
metropolitan planning organization in which the project is located (if 
necessary), and with the State Implementation Plan; 
(C) the project will improve the efficiency of the state's transportation 
systems; 
(D) the project will expand the availability of funding for transportation 
projects or reduce direct state costs; and 
(E) the application shows that the project and the applicant are likely to have 
sufficient revenues to assure repayment of the financial assistance according to 
the terms of the agreement. In making this finding, the commission will 
consider:
(i) the probable ability of any pledged revenues to meet all obligations of the 
project and to repay the financial assistance to the bank;
(ii) management of the project; 
(iii) adequacy of working capital and operating funds; 
(iv) collateral and other guarantees of repayment; 
(v) how quickly the financial assistance will be repaid; and
(vi) the presence of credit insurance or other guarantees.
(3) Authorized actions. By granting preliminary approval, the commission 
authorizes the executive director to negotiate:
(A) the project's limits, scope, definition, design, and any other factors which 
might impact the financing of the project; 
(B) the amount, type and timing of disbursements of financial assistance; 
(C) interest rates including subsidies; 
(D) fees; 
(E) charges; 
(F) repayment schedules; 
(G) term to maturity of any financial assistance; 
(H) collateral securing the financial assistance; 
(I) appropriate covenants applicable to the financial assistance;
(J) default provisions; and 
(K) all other provisions necessary to complete an agreement under Subchapter E 
of this Chapter. 
(c) Social, economical, and environmental impact. 
(1) Prior to receiving final approval under subsection (d) of this section, the 
department or the applicant shall complete a study of the social, economical, 
and environmental impact of the project, consistent with the spirit and intent 
of the National Environmental Policy Act, Title 42, United States Code, 
sec.sec.4321 et seq, and Title 23, United States Code, sec.109(h), and shall 
provide for public involvement and meet all other requirements of Chapter 2, 
Subchapter C of this title (relating to Environmental Review and Public 
Involvement For Transportation Projects). 
(2) For a project not on the state highway system, the applicant shall be 
responsible for completing required studies of social, economical, and 
environmental impacts unless the applicant and the department agree otherwise. 
If the department agrees to be responsible for these studies, then any costs 
will be charged according to the department's local participation agreement. 
(3) For a project on the state highway system, the department shall be 
responsible for completing required studies of social, economical, and 
environmental impacts with any costs to be charged to the project. 
(d) Final approval. Subsequent to preliminary approval under subsection (b) of 
this section, the completion of negotiations under subsection (b)(3) of this 
section, and the approval of the social, economical, and environmental impact 
required by subsection (c) of this section, the commission may grant final 
approval if it determines that: 
(1) providing financial assistance will protect the public safety and prudently 
provide for the protection of public funds while furthering the purposes of this 
chapter; and 
(2) the project will provide for all reasonable and feasible measures to avoid, 
minimize, or mitigate for adverse environmental impacts.
(e) Postponement. The commission may postpone final approval if it finds that 
the current or projected financial condition of the bank warrants this action. 
(f) Contingencies. The commission may make its preliminary or final approval 
contingent upon the applicant making changes, levying taxes, performing other 
acts, or maintaining certain conditions necessary to provide for adequacy of 
repayments. 
(g) Order of approval or disapproval. Approval or disapproval of the project, 
whether preliminary or final, shall be by written order of the commission, and 
shall include the rationale, findings, and conclusions on which approval or 
disapproval is based.
Issued in Austin, Texas, on September 25, 1997. 
TRD-9712751
Bob Jackson
Deputy General Counsel
Texas Department of Transportation
Effective date: September 25, 1997
Expiration date: January 23, 1998
For further information, please call: (512) 463-8630

SUBCHAPTER E.Financial Assistance Agreements
43 TAC sec.sec.6.41-6.46
This chapter is adopted on an emergency basis under Transportation Code, 
sec.201.101, which provides the Texas Transportation Commission with the 
authority to establish rules for the conduct of work of the Texas Department of 
Transportation, and more specifically, Chapter 222, new Subchapter D, which 
requires the commission to, by rule, implement the subchapter and establish 
eligibility criteria for an entity applying for financial assistance from the 
bank. 

sec.6.41. Executive Director.
The executive director will negotiate the terms of agreements deemed necessary 
to comply with any requirements of preliminary approval, to protect the public's 
safety, and to prudently provide for the protection of public funds while 
furthering the purposes of this chapter. These agreements shall include, but not 
be limited to, terms provided for in this subchapter, as applicable to the 
nature of the project.

sec.6.42.Performance of Work.
(a) Work performed by the department. The department may, in its discretion and 
consistent with state law, provide all or part of the work connected with the 
project in the department's normal course of business. For work performed by the 
department, the following provisions will apply.
(1) The department will account for all costs of the project in the normal 
course of business as it does for all federal-aid eligible projects. 
(2) The department will make progress payments or set aside funds from the bank 
on behalf of the applicant as the department deems necessary. Such actions shall 
bind the applicant to repayment according to the terms of the agreement(s). 
Interest shall accrue from the date of the payment or setting aside of funds. 
(3) The department's actions and decisions regarding the project shall not be 
contestable by the applicant. 
(4) The applicant shall provide the department, the Federal Highway 
Administration, and the Federal Transit Administration, or their authorized 
representatives, with right of entry or access to all properties or locations 
necessary to perform activities required to execute the work, inspect the work 
or aid otherwise in the prompt pursuit of the work. 
(b) Work performed by applicant. The department may, in its discretion and 
consistent with state law, provide that the applicant conduct all or part of the 
work connected with the project. For work performed by the applicant, the 
following provisions apply. 
(1) The applicant shall comply with the federal act, Title 23, United States 
Code, Title 49, United States Code, other applicable state and federal law, and 
all terms and conditions of any agreements. Where approval or concurrence of the 
Federal Highway Administration, the Federal Transit Administration, or other 
federal agency is required, the applicant shall seek such action through the 
department. The applicant shall reimburse the department for any loss of federal 
funds to the department resulting from the applicant's failure to comply. 
(2) The applicant shall maintain project records and accounts in accordance with 
generally accepted accounting principles, and all applicable federal and state 
requirements. 
(3) The applicant shall, at the applicant's cost, have a full audit performed 
annually of the project records and accounts by an independent certified public 
accountant. The applicant shall cause the auditor to provide a full copy of the 
audit report and any other management letters or auditor's comments directly to 
the department. 
(4) The applicant shall hold all project records, accounts, and supporting 
documents open for state or federal audits until project completion.
(5) Upon completion of the project, the applicant shall forward to the 
department all project files as prescribed by the department. The department 
shall retain these files until all financial assistance has been repaid and 
necessary audits have been performed. 

sec. 6.43. Design, Construction, and Procurement Standards.
(a) Plans and specifications. For federal-aid and state highway improvement 
projects, plans and specifications must be in compliance with the design manuals 
and the latest version of the department's standard specifications for 
construction of highways, streets, and bridges. All construction plans shall be 
signed and dated by a professional engineer registered in Texas.
(b) Change orders. The department may require standards and procedures to be 
used in making any design change orders. 
(c) Transit projects must comply with all requirements established under 
sec.sec.31.42-31.47 of this title (relating to Program Administration).

sec. 6.44. Maintenance and Operations. 
(a) Maintenance. When funds for repayment are derived from fees or tolls on the 
project, or the project or asset is collateral for the financial assistance, the 
department may require standards and procedures to be used in maintenance of the 
project. 
(b) Speed limits. If applicable, speed limits shall be posted in accordance with 
procedures used by the department for the state highway system, but in no case 
shall such limits exceed the maximum prima facie speed limits prescribed by 
state law for a public road having the same characteristics.

sec.6.45.Financial and Credit Requirements.
The applicant shall agree to:
(1) provide collateral and security for repayment, or other protections as the 
executive director may deem necessary; 
(2) repay the financial assistance at specified interest rates over specified 
time periods according to repayment schedules and including agreed upon bank 
fees or compensation; 
(3) abide by provisions governing default; 
(4) have periodic audits in compliance with all applicable federal and state 
requirements; and 
(5) reimburse the department for all costs or losses of funds resulting from a 
failure to perform by the applicant. 

sec.6.46. Other Requirements. 
Depending on the facts and circumstances of each project, the applicant, and 
type of financial assistance provided, the executive director may require 
additional terms and conditions necessary to protect the public safety, 
prudently provide for the protection of public funds, and further the purposes 
and requirements of this chapter.
Issued in Austin, Texas, on September 25, 1997. 
TRD-9712753
Bob Jackson
Deputy General Counsel
Texas Department of Transportation
Effective date: September 25, 1997
Expiration date: January 23, 1998
For further information, please call: (512) 463-8630