1. (a) According to the priority of an application, the SWCD shall negotiate a ten-year brush control contract with the successful applicant in the brush control area subject to:

   1. (1) Guidelines established by the State Board.
   2. (2) Development of a brush control plan. As a condition for receipt of cost-share assistance for brush control, the eligible person receiving the benefit of such assistance shall agree to develop a brush control plan.
   3. (3) Signature of a performance agreement. As a condition for receipt of cost-share assistance for brush control, the eligible person receiving the benefit of such assistance shall agree to perform the brush control in accordance with standards established by the State Board and the terms of the cost-share agreement. Completion of the performance agreement and the signature of the eligible person are required prior to payment.

   4. (4) Management of treated areas.

      1. (A) Requirements for follow-up brush control will be included in the cost-share contract with management recommendations outlined in the eligible person's brush control plan. These will be reviewed with the eligible person prior to signature and initiation of the cost-share contract. Requirements for follow-up brush control are subject to funding availability.
      2. (B) The SWCD may require refund of any or all of the cost-share paid to an eligible person when acres where brush control was applied has not been managed in compliance with applicable standards and specifications for the practice in accordance with the terms of the cost-share contract as agreed to by the eligible person.
      3. (C) In cases of hardship, death of the participant, or at the time of transfer of ownership of land where brush control has been applied using cost-share assistance and the term of the contract has not expired, the participant, heir(s), or buyer(s) respectively, must agree to properly manage the treated area or the participant, heir(s) or the buyer by agreement with seller must refund all or a portion of the cost-share funds received for the practice as determined by the SWCD. The State Board, on a case-by-case basis in consultation with the SWCD, may grant a waiver to this requirement.

2. (b) Criteria to consider. In approving a contract for cost sharing, the SWCD, in accordance with criteria established by the brush control area working group, shall consider:

   1. (1) the location of the project;
   2. (2) the method of control that is to be used by the applicant;
   3. (3) the plans for revegetation;
   4. (4) the total cost of the brush control;
   5. (5) the amount of land to be included;
   6. (6) whether the applicant is financially able to provide the applicant's share of the money for the brush control;
   7. (7) the cost-share percentage, if an applicant agrees to a higher degree of financial commitment;
   8. (8) any comments and recommendations submitted by the TDA, TWDB, or TPWD; and
   9. (9) any other pertinent information considered necessary by the SWCD.

3. (c) Approval of contracts. The SWCD may approve a contract if, after considering the factors listed in §517.33(c) and any other relevant factors, the SWCD finds:

   1. (1) the owner of the land fully agrees to cooperate in the project;
   2. (2) the method of control is a method approved by the brush control area working group; and
   3. (3) the brush control is to be carried out in an area eligible for funding as prioritized under the State Brush Control Plan.
4. (d) On completion of the negotiations by the SWCD, it shall submit the proposed contract to the State Board for execution.
5. (e) The State Board shall examine the contract and if the State Board finds that the contract meets all the conditions established in this section and the guidelines, it shall execute the contract and provide to the individual on completion of the project the money that constitutes the state's share of the project.

6. (f) Amending contracts.

   1. (1) In the event that an adjustment to the estimated cost of brush control is necessitated by the final design, the applicant shall either agree to assume the additional cost or complete and submit an amendment to his/her contract for cost-share to the SWCD for approval or denial by the SWCD.
   2. (2) The amount of funds obligated for brush control may be adjusted, provided funds are available and the adjustment is considered a priority according to the brush control area working group priority system.
   3. (3) In the event additional funds are not available, the brush control may be redesigned, if possible, to a level commensurate with available funds, provided the redesign still meets standards established by the State Board; or the applicant can agree to assume full financial responsibility for the portion of the cost of brush control in excess of the amount authorized.

7. (g) Audits. It is the policy of the State Board to develop and implement audit guidelines that adequately safeguard assets administered within the purview of this agency in a cost effective manner.

   1. (1) All parties to the contract are subject to audit by the State Board and/or SWCD for a period of two years after termination of the contract.
   2. (2) The State Board and/or SWCD shall have access to all relevant applicant records, including all records of contractors and/or subcontractors that are pertinent to the contract, for the purpose of verifying compliance of contracts with the provisions of this subchapter and other state requirements. All parties shall maintain copies of performance certifications, contractor billing, and cancelled checks for a period of two years after termination as applicable to each party.
   3. (3) The State Board and/or SWCD may withhold funds under this subchapter from applicants found to be in violation of the terms of the contract, this subchapter or other state requirements and may require applicants to reimburse the State Board for funds claimed and received in violation of this subsection or other state requirements.

   4. (4) The State Board and/or SWCD may terminate a contract, in whole or in part, or negotiate a contract amendment in the event of a failure to comply with the terms of the contract provided that no such action may be effected unless the applicant is given not less than ten days written notice (delivered by certified mail, return receipt requested).

      1. (A) Upon receipt of a termination action, applicant will promptly discontinue all services affected, and deliver all materials and deliverables as may have been accumulated by applicant in performing this contract whether completed or in the process.
      2. (B) If the State Board terminates this contract then, without prejudice to any other right or remedy of the State Board, applicant will be reimbursed for actual incurred costs that are allowable and eligible limited to the total maximum amount of the contract.

Source Note:The provisions of this §517.33 adopted to be effective February 13, 2003, 28 TexReg 1209; amended to be effective March 21, 2004, 29 TexReg 2651.