1. (a) Request.

   1. (1) Transportation Code, §284.009, provides that the commission may convey a non-toll state highway or a segment of a non-toll state highway, including real property acquired to construct or operate the highway, to a county for operation and maintenance as a toll road project under that chapter if:

      1. (A) the commissioners court of each county in which the highway is located approves the proposed conveyance; and
      2. (B) the commission determines that the proposed conveyance will improve overall mobility in the region or is the most feasible and economic means of accomplishing necessary improvements to the highway.

   2. (2) A county may request a transfer under this section by submitting a written request that includes:

      1. (A) an explanation of how the proposed transfer will improve overall mobility in the region or is the most feasible and economic means of accomplishing necessary improvements to the highway;
      2. (B) an explanation of how the request complies with subsection (d)(1)(D) and (E) of this section;
      3. (C) copies of any completed studies concerning the transfer;
      4. (D) a brief description of any known environmental, social, economic, or cultural resource issues, such as impacts on wetlands and other water resources, endangered species, parks, neighborhoods, businesses, historic buildings or bridges, and archeological sites concerning the transfer; and
      5. (E) the name and address of any individuals or organizations known to be opposed to the transfer, and a description of any known controversies concerning the transfer.

2. (b) Public involvement.

   1. (1) As part of the information that will be used by the commission in determining whether to transfer a segment of the state highway system to a county, the department will:

      1. (A) hold one or more public hearings in each county in which the project is located for the purpose of receiving oral comments;
      2. (B) hold one or more informal public meetings, which will be held, if practicable, in the project area; and
      3. (C) solicit written comments.

   2. (2) Notice of a solicitation of written comments, a public meeting, and a public hearing held under paragraph (1) of this subsection will be:

      1. (A) published in the Texas Register;
      2. (B) published in one or more newspapers of general circulation in each of the counties in which the segment is located;
      3. (C) if the toll road project is not located in the county constructing and operating the project, published in a newspaper of general circulation, if any, published in the county constructing and operating the project;
      4. (D) posted on the department's website, with a link to the county's website, if available; and
      5. (E) posted on the county's website, if available, with a link to the department's website.
   3. (3) The department will publish and post notices under paragraph (2) of this subsection at least 10 days prior to the date of the hearing or meeting.
   4. (4) A notice published or posted under paragraph (2) of this subsection will inform the public that the county's request and any studies submitted by the county in support of the request are available for review at one or more designated offices of the department and can be found on the websites of the department and, if available, the county. The notice will provide the internet address of the request and studies. The department will not make studies available on its website if it determines such action to be impractical due to the size of the files.
   5. (5) The department will prepare a summary of the public hearings and all comments received in response to the notice and the hearings.
3. (c) Reimbursement. The county will reimburse the department for any funds paid by the department for the construction, maintenance, and operation of the transferred highway, unless the commission finds that the transfer will result in substantial net benefits to the state, the department, and the traveling public that equal or exceed the amount of the reimbursement waived. In computing the cost of the transferred highway, the commission will include the total dollar amount expended by the department for the original construction of the transferred highway, including all costs associated with the preliminary engineering and design engineering for plans, specifications, and estimates, acquisition of necessary right of way, and actual construction of the highway and all necessary appurtenant facilities. Costs anticipated to be expended by the department, as evidenced by inclusion in the current three-year Statewide Transportation Improvement Program, to expand, improve, or extend the highway shall be deducted from the costs to be reimbursed to the department.

4. (d) Criteria.

   1. (1) The commission may, after considering public input concerning the proposed transfer, whether the public has a reasonable alternative route on non-toll roads, and the county's traffic and revenue forecasts, transfer a highway to the county if:

      1. (A) the county agrees to assume all liability and responsibility for the safe and effective maintenance and operation of the highway on its transfer;
      2. (B) the county agrees to assume all liability and responsibility for compliance with all federal laws, regulations, and policies applicable to the highway;
      3. (C) the county agrees to assume all liability and responsibility for existing and future EPIC;
      4. (D) the transfer will not adversely affect regional mobility;
      5. (E) construction of the necessary improvements can be accomplished efficiently, expeditiously, and with minimum public investment;
      6. (F) the commissioners court of each county in which the highway is located has approved the transfer;
      7. (G) the county agrees to comply with the design and construction standards prescribed in §27.74 of this subchapter when developing projects on the transferred highway; and
      8. (H) the county agrees that tolls collected from the conveyed segment of highway will not be used for any purpose other than to finance the expansion, extension, operation, and maintenance of that highway segment.
   2. (2) The commission will consider impacts on residential neighborhoods and the length of the alternative route when considering whether an alternative route is reasonable.
5. (e) Preliminary approval. The commission may grant preliminary approval of the transfer of a non-toll state highway or a segment of a non-toll state highway, with final approval conditioned on the completion of preliminary studies necessary for the commission to make the findings required by subsection (d) of this section, including social, economic, and environmental studies and the preparation of traffic and revenue forecasts. The commission may require the county to pay for or complete all or a portion of the preliminary studies. Upon completion of the preliminary studies, the department will hold one or more additional public hearings. The department will publish and post notice of a hearing held under this subsection in accordance with subsection (b)(2) of this section. The commission may grant final approval of the transfer consistent with the requirements of subsections (d) and (f) of this section.
6. (f) Transfer. If the commission finds that the conveyance of a non-toll state highway or a segment of a non-toll state highway to a county is the most feasible and economical means to accomplish necessary improvements to that highway and that the conveyance is in the best interest of the State of Texas, the commission will approve the transfer. Coincident with the transfer, the commission will remove the segment of highway from the designated state highway system, and the county shall assume all liability, responsibility, and duty for financing, design, construction, maintenance and operation of the highway.

Source Note:The provisions of this §27.72 adopted to be effective March 18, 2004, 29 TexReg 2746.