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

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

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

      1. (A) the proposed project scope;
      2. (B) the estimated total project cost;
      3. (C) a breakdown of the anticipated total cost by category (e.g., right-of-way, utility adjustment, plan preparation, construction);
      4. (D) the proposed participation rate;
      5. (E) the nature of any in-kind resources to be provided by the local government;
      6. (F) the rationale for adjusting the minimum local matching funds requirement; and
      7. (G) any other information considered necessary to support a request.

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

      1. (A) population level;
      2. (B) bonded indebtedness;
      3. (C) tax base;
      4. (D) tax rate;
      5. (E) extent of in-kind resources available; and
      6. (F) economic development sales tax.
3. (c) The following Appendix A to this section establishes federal, state, and local cost participation ratios for highway improvement projects, subject to the availability of funds to the department.
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Source Note:The provisions of this §15.55 adopted to be effective September 26, 1996, 21 TexReg 8957; amended to be effective January 1, 1998, 22 TexReg 12090; amended to be effective January 1, 1998, 22 TexReg 12090; amended to be effective February 21, 1999, 24 TexReg 1194.