1. (a) Surety bond. Chambers County shall post a surety bond in the amount of $500,000 for the purpose of reimbursing the department for actual maintenance costs of Farm-to-Market Road 1405 and the frontage road of State Highway 99 located in the Cedar Crossing Business Park in the event that sufficient revenue is not collected from permits issued under this subchapter.
2. (b) Verification of permits. All permits issued by Chambers County shall be carried in the permitted vehicle. Chambers County shall provide access or a phone number for verification of permit authenticity by law enforcement or department personnel.
3. (c) Training. Chambers County shall secure any training necessary for personnel to issue permits under this subchapter. The department may provide assistance with training upon request by Chambers County.
4. (d) Accounting. The department shall develop accounting procedures related to permits issued under this subchapter for the purpose of revenue collections and any payment made to the department under subsection (h) of this section.
5. (e) Audits. The department may conduct audits of all permits issued by Chambers County semi-annually or upon direction by the executive director under this subchapter. In order to insure compliance, audits will at a minimum include a review of all permits issued, financial transaction records related to permit issuance, review of vehicle scale weight tickets and monitoring of personnel issuing permits under this subchapter.

6. (f) Revocation of authority to issue permits. If the department determines as a result of an audit that Chambers County is not complying with this subchapter, the executive director will issue a notice to Chambers County allowing 30 days to correct any non-compliance issue. If after 30 days it is determined that Chambers County is not in compliance, then the executive director may revoke Chambers County's authority to issue permits.

   1. (1) Upon notification that its authority to issue permits under this subchapter has been revoked, Chambers County may appeal the revocation to the commission in writing.
   2. (2) In cases where a revocation is being appealed, Chambers County's authority to issue permits under this subchapter shall remain in effect until the commission makes a final decision regarding the appeal.
   3. (3) Upon revocation of authority to issue permits, termination of the maintenance contract, or expiration of this subchapter, all permit fees collected by Chambers County, less allowable administrative costs, shall be paid to the department.

7. (g) Permit fees. Permit fees collected under this subchapter shall be used solely to provide funds for the payments provided for under Transportation Code, §623.253, less administrative costs.

   1. (1) The permit fee shall not exceed $80 per trip. Chambers County may retain up to 15% of such permit fees for administrative costs, and the balance of the permit fees shall be deposited in the state highway fund to be used for maintenance of Farm-to-Market Road 1405 and the frontage road of State Highway 99 located in the Cedar Crossing Business Park.
   2. (2) Chambers County may issue a permit and collect a fee for any vehicle or vehicle combination weighing up to 100,000 pounds, and with load dimensions not exceeding 12' wide, 16' high or 110' long, traveling only on Farm-to-Market Road 1405 and the frontage road of State Highway 99 located in the Cedar Crossing Business Park.

8. (h) Maintenance contract. Chambers County shall enter into a maintenance contract with the department for the maintenance of Farm-to-Market Road 1405 and the frontage road of State Highway 99 located in the Cedar Crossing Business Park.

   1. (1) The maintenance contract shall provide for a system of payments of all permit fees, less allowable administrative costs, from Chambers County to the state highway fund to maintain Farm-to-Market Road 1405 and the frontage road of State Highway 99 located in the Cedar Crossing Business Park to the current level of service or pavement conditions.
   2. (2) Maintenance shall include, but is not limited to, routine maintenance, preventive maintenance, and total reconstruction of the roadway and bridge structures as determined by the department to maintain the current level of service.
9. (i) Reporting. Chambers County shall provide monthly and annual reports to the department's Finance Division regarding all permits issued and fees collected. The report must be in a format approved by the department.

Source Note:The provisions of this §28.101 adopted to be effective February 16, 2006, 31 TexReg 888; amended to be effective January 4, 2007, 31 TexReg 10831.